1) Decoupling : Inventories used as buffer to protect against breakdown or

unevenness in production rates between two interdependent process. Thus

allowing them to operate exclusive of each other.
2) Economies of scale : It involves the different cost reduction which can be
achieved from volume production and distribution on a large scale so that the
fixed costs are spread over more units.
3) Fill Rate : It is the amount of total demand being satisfied from the present
inventory. So it calculates the service level between 2 parties.
4) Fixed Cost : It consists of all of those costs which are independent of the
volume of production.
5) Flow Shop : It is operation which produces according to a well defined
connected sequence of processes and activities. Thus it is able to achieve
production on a large scale and is optimised for maximum production speed.
6) Flow Time : It is the total time taken for an inventory to go through the entire
flow of the manufacturing process from input to output.
7) FMEA : Failure Mode and Effect Analysis is used to analysis failures. It is used to
systematically hypothesize, value and correct failures.
8) Forklift : It is a general purpose small truck used for lifting and transporting
materials for short distances in a manufacturing plant.
9) Hazmat : It is hazardous material handling process defined environmental laws
and legal precedents. Stiff fines are imposed on plants not adhering to the strict
defined process for handling dangerous material.
10)
Indirect Labour : It represents the cost of production labour which is not
directly involved in the manufacturing process but supports the direct labour
function. It includes maintenance, material handling etc.
11)
Heijunka : It is derived from development of production efficiency for the
Toyota Production System. It involves production levelling which helps
organization meet demand while at the same time reducing wastes in
production. Distribution of production different types of items evenly through the
week.
12)
Inventory : It refers to merchandise or goods stored for the ultimate
purpose of selling to customers or within the product system. Raw materials,
work in progress and finished goods are three categories of Inventory.
13)
Jidoka : It refers to a process in the Toyota Production System where work
immediately stops when a quality problem arises. This highlights the problem
and helps in removing the root cause of defects by improving the build in quality.
14)
JIT : Just In Time reduces flow time as only the parts that enter a plant or
move from process to process are uniquely identified with the product. Thus
every part being delivered and in plant can be related to a bill of material of a
product.
15)
Layof : It is the temporary suspension or permanent termination of a an
employee whose services are not required for an extended amount of time.
16)
Lead Time : It the time required from the placement of an order to the
delivery of the same to the customer. It can also be seen and the time between
the initiation and execution of the process.
17)
Littles Law : Throughput = Inventory/flowtime. Thus inventory at a
certain point of time is the flow time number of throughput.
18)
Logistics : It is the process of managing materials for operations to meet
certain objectives such as delivery speed and low inventory.

19)
Make to Order : It involves production only to meet requirement given by
customers. So there is no finished good inventory.
20)
Make to Stock : It involves production of goods in anticipation of
requirement of goods from customer. It requires demand forecasts.
21)
Marginal Analysis : It involves analysis of of the effect of an action or
activity at the limits or a point in the operation as opposed to the average.
22)
Material Control : It involves the entire process of ordering, receiving
and distributing materials throughout and operation to satisfy the master
production schedule.
23)
MRO : Maintenance, Repair & Operations involves those components and
parts not involved in the direct material of the product. It involves things like
tools, gloves, lubricants, and machine maintenance parts.
24)
Molds : It is tools which is used to shape soft materials in injection
molding machines. For example the baking pan in a mold for the bread.
25)
OEM : Original Equipment Manufacturer is used to refer to companies
which produce parts or subparts of the end product sold by another company.
26)
OSHA : Occupational Safety and Health Administration is the central
agency for enforcing safety and health legislation. It ensures every worker is
provided safe and healthy working environment.
27)
Pacing Process : It is that process in a production line for the which the
takt time of all other process is dependant on. The production process is tied to
the production rate of the pacing process.
28)
Pooling : It is the process which combines previously independent
process so as to reduce variance which would have occurred if the processed had
continued running independently.
29)
Productivity : It is the measure of labour efficiency. Amount of goods
produced per unit of labor cost or hours.
30)
Purchasing : It is the conditions which govern the purchases within the
company plus the actual purchase of goods and services.
31)
QFD : Quality Function Deployment is used to define customer needs and
translate them into specific plans to produce products to meet those demands.
32)
Reorder Point : That level of inventory when there is a need to replenish
that particular inventory stock
33)
Routings : Routings are the sequence of steps that a product follows
through a manufacturing plant as it moves from machine to machine.
34)
Single Piece Production : The ability to be able a single piece of a
product with the same throughput and cost as volume production. This requires
small setup times and that there is a production line where inventory is stored
line side.