 |
| p chart |
An attribute control chart showing the fraction or percent of nonconforming data out of a given population. |
| pacemaker |
A device or technique use to set the pace of production and maintain takt time. |
| packing department |
The area that prepares picked material for shipment by performing the consolidation, packing, marking and documentation tasks required. The packing department may also be responsible for locating and picking materials for outgoing shipments. |
| packing slip |
The paperwork that accompanies a shipment, pallet or smaller unit and describes its contents and quantities, and normally references the order number or numbers involved. |
| paradigm shift |
A complete change in thinking or belief systems that allows the creation of a new condition previously thought impossible or unacceptable. (ex.- the change in thinking created by Just-in-Time that views inventory as a liability, not an asset). |
| parallel conversion |
A project implementation technique in which an existing system is run in parallel with the new system, with the comparison of operations and results to verify that the new system will properly replace the functions of the old. Parallel conversions are often difficult due to the time, expense and viability of operating two systems and problems in comparison and verification when functions have changed significantly. A parallel is often not necessary when the conference room pilot and issue identification and resolution phases are done well, and adequate resources are made available at cutover time. |
| parallel |
The simultaneous performance of related activities or tasks, normally using different resources, that enables completing those activities faster than if they were done in a serial manner. |
| parameter |
A constant defining a particular property of the density function of a variable. |
| parent |
An upper level item that uses a component or material (child). |
| Pareto's law |
The law developed by an Italian economist in the 1800s based on the principle that the vast majority of an end result (wealth, cost, quality problems, etc.) is determined by a small percentage of a group (the number of people, items, etc.) Often stated as the 80/20 rule, it is used in inventory counting and quality systems to concentrate attention on the small (20%) number of sources that account for 80% of inventory value or quality issues. |
| parity |
The use of a self-checking code in a computer employing binary digits in which the total number of l's or 0's in each permissible code expression is always even or always odd. |
| part number |
The set of characters, normally alphanumeric, that identifies a specific manufactured or purchased item and is used in all database, order, inventory and other functions. |
| part period balancing (PPB) |
A lot size technique that uses look ahead and look back functions to consider additional periods in modifying an initial calculation based on least total cost. |
| parts list |
A listing of all components used in the production of a parent item that does not reflect its structure or intermediate levels, and is not useful in time- phasing requirements based on lead time offsets. |
| parts per million (PPM) |
A quality measure of the number of defective items observed or projected out of a population of one million. |
| past due |
Line items and orders expected or promised for dates prior to the current date. Past due orders are an integral part of evaluating delivery performance and normally are prioritized when reviewing exception messages. |
| path |
A series of connected events, nodes or resources that indicates the links, direction of data flow, timing dependencies and positions of those items. |
| pattern detection |
Elements in measurement and decision support systems that identify recurring relationships and distributions of data in a given set. |
| paypoint |
The operations in a routing used to report production and/or labor. Quantities reported at paypoints are backflushed into previous non-paypoint operations, which may be listed on a routing but are not used for reporting due to process limitations or a condensed time frame that does not require a real-time status update of each individual step. |
| PDCA |
See 'Plan-Do-Check-Act'. |
| pegging |
Tracing the source of requirements in a materials plan, caused by dependent demand from an upper-level item, independent demand from a customer or interplant order, or to replenish a desired inventory stock level. |
| percent complete |
The estimated or measured completion status of a process or project used to analyze the probability of meeting a projected date, or in initiating a contracted progress payment. |
| performance management |
Using a set of tools and approaches to measure, improve, monitor and sustain the key indicators of a business. |
| period cost |
A cost related to the passage of time rather than product volumes, which may include depreciation, rent, property taxes or insurance. |
| period order quantity (POQ) |
A lot size technique that orders to cover requirements for a variable number of periods based on order and holding costs, as opposed to a fixed period quantity that uses a standard number of periods. |
| perpetual inventory |
The book inventory calculated as a result of all issue, receipt and adjustment transactions, as opposed to verification by physical count. |
| perturbation |
A non-random disturbance. |
| PFMEA |
See Process Failure Mode and Effects Analysis |
| phantom |
An item with an identifying product number that is not normally built and then stocked, but is immediately used in the next stage of production. MRP processing logic will blow through a phantom down to the next level (and not generate planned orders for the phantom) but will net against its on-hand inventory if it does occasionally exist. A phantom bill of material is sometimes used to ease maintenance when a set of parts consumed in production has identical usage across many bills of material. |
| physical inventory |
The verification of on-hand inventory quantities by taking an actual count. Often refers to the annual or quarterly process of counting all items, rather than the physical verification of selected groups of parts on a continuing basis (a cycle count). |
| physical transformation task |
The task of taking a specific product from raw materials to a finished product in the hands of the customer. [See Value Stream] |
| pick list |
A list of all components and materials required to fill a specific production, sales or interplant order. It often specifies the warehouse locations to pick from, and sometimes consolidates requirements from more than one order. |
| pick list release |
The process of authorizing the pick of material for a given order, generating the paperwork and releasing to the picking department. Many variations exist in which the pick slip may be manually selected for a given order, is automatically generated a set number of days before the requirement, or is held until the calculated available inventory equals the requirement. Order processing systems often have controls that flag or stop changes to orders when the pick slip has already been released. |
| pick to clear |
A warehouse order picking scheme that selects the item locations with the smallest quantities first. |
| pick to light |
A warehouse order picking scheme that uses LED readouts for each inventory location that display the locations and quantities to be picked based on data from the warehouse management or ERP system. |
| piece part |
A discrete component item such as nuts, bolts or screws used in an upper-level assembly. |
| piece rate |
Payment for production based on the number of units processed, rather than the number of hours used. |
| pilot |
A small test run of a system or production process to verify its acceptance and capabilities before going full-scale. |
| pipeline |
The backlog of unfilled orders, or of material ready to be or already being processed. |
| pitch |
The pace and flow of a product. |
| Plackett-Burman design |
A screening technique used to examine the effects of several variables in one experiment and avoid multiple runs of the same basic test. |
| plan-do-check-action (PDCA) |
A four step quality improvement cycle, based on a process described by Walter Shewhart, that involves continuous improvement based on analysis, design, execution and evaluation. Sometimes referred to as plan/do/study/act, it emphasizes the constant attention and reaction to factors that affect quality. |
| planned capacity |
The capacity used in evaluating requirements for a given material planning period, which may differ from demonstrated capacity due to temporary additions or downtime for scheduled maintenance, etc. |
| planned order |
A suggested production, purchase or replenishment order generated by an MRP or other planning system to meet a projected shortage against desired safety stock levels. The shortage date becomes the due date, the release date is backward scheduled based on lead time, and the quantity is based on the specified lot size. Planned orders for upper level items create requirements for lower level components, and MRP generations delete existing planned orders and regenerate new ones based on changes in requirements. Planned orders must be firmed or accepted before releasing to production or to a vendor. |
| planned order receipt |
A future projected receipt based on the generation of a planned order that has not yet been firmed into a scheduled receipt. |
| planned order release |
The date required to firm, or release, a planned order based on the specified lead time until the planned receipt date. Many systems allow the selection and review of planned orders based on specifying a release date time frame. |
| planner bill |
A bill of material constructed to arrange items within a given family or group that specifies the percent of each in terms of usage or sales. Often used to explode forecasts from a family level to individual items. |
| planning horizon |
The length of time into the future planning systems generate requirements and messages. The horizon should be at least as far out as the single longest cumulative lead time for any item in the system. |
| planning system |
The functions and processes that review requirements and defined parameters to suggest new operating, material and capacity plans and changes to existing plans, but are not used for the activities that carry out (execute) those plans. |
| point of sale (POS) |
The simultaneous recording of a customer sale and its effect on inventory levels, typically done in a retail environment using automatic data collection systems. Real-time point of sales data is sometimes used to automatically trigger replenishment orders as required, and can be used in sales analysis to review end-customer rather than distributor sales patterns. |
| point of use |
Stocking inventory in a production facility or logistics network near the consuming point, rather than in a central location and moving when required. |
| point of use storage (POUS) |
Keeping all items needed for the job at the location of use in a neat and organized manner. POUS is on of the goals of 5S activity. |
| point-to-multipoint |
A communications, logistics or other network in which data travels in a one-way direction from a central point to multiple remote sites. |
| point-to-point |
A communications or network system in which two connected entities pass data only to each other, and the data travels in both directions. |
| pokayoke (also poka yoke) |
Japanese for 'mistake-proofing'. Mistake-proofing and fool-proofing devices made by designing parts, processes, or procedures so that mistakes physically or procedurally cannot happen. |
| policy deployment |
See Hoshin Planning. |
| population |
A group of similar items from which a sample is drawn. Often referred to as the universe. |
| positive float |
The period of time the start of a project task can be delayed without delaying the entire project. Project tasks that have positive float are not included on the critical path. |
| post |
(v) To update a file or database through acceptance of entered data. |
| post deduct |
syn: backflush |
| post-implementation audit |
A review process that takes place after the installation of a new system to determine status, level of user satisfaction, accomplishment of stated goals and further action items required. It is usually timed to allow the new system to operate for a given period, such as a quarter, to concentrate on ongoing issues rather than those generated and resolved at cutover time. |
| power of an experiment |
The probability of rejecting the null hypothesis when it is false and accepting the alternate hypothesis when it is true. |
| precision |
The degree of reproducibility among several independent measurements of the same true value. |
| predecessor |
A routing operation or project task that must be partially or completely finished before a later task can begin. |
| pre-deduct |
An inventory relief system in which the components of a parent are deducted before they are physically picked or used, based on the explosion of the parent bill of material. It often uses the parent schedule date, as opposed to the actual reporting of parent production as done in a post-deduct system. |
| predefined query |
A report writer or other query constructed at a previous time on an ad hoc basis and saved for later use. |
| predictive |
A rule or measurement system that projects a future status before it occurs, based on predefined trends, warning signals or the use of a knowledge base that incorporates past behavior. |
| premium freight |
Additional charges paid to a transportation provider to expedite shipments in order to meet a required date. Often used as a partial measure of on-time shipment performance. |
| prerequisite tree |
A logic tree used in the theory of constraints that identifies and time phases obstacles associated with the intermediate objectives that must be accomplished to achieve an overall goal. |
| present value |
The estimated current value of a future receipt or payment, as calculated by the assumed interest rate between the current date and the date the future transaction will occur. |
| prevention |
The practice of eliminating unwanted variation a priori (before the fact), e.g., predicting a future condition from a control chart and then applying corrective action before the predicted event transpires. |
| preventive action |
Action to eliminate the cause of a potential nonconformity or other undesirable potential situation. |
| preventive maintenance |
Activities done to insure the operating availability of a production resource and its ability to meet process specifications. They are done on a pre-scheduled basis, or based on the identification by a monitoring system of conditions that may cause future breakdowns. |
| primary control variables |
The major independent variables used in the experiment. |
| primary location |
The default stock location used for receipts and picks of a given item, which may be supplemented by other locations if full or overstocked. |
| primary operation |
A routing operation used unless an alternate is selected when opening production orders, and the normal basis for MRP processing, capacity planning and standard cost estimation. |
| prioritization |
The rules used to arrange jobs or orders in queue, such as FIFO, LIFO, critical ratio, value, customer, combination with similar jobs, etc. |
| probabilistic model |
A model that assigns a likelihood to events or data within a population, as expressed by a ranked numerical value or an estimate of best case, worst case or most likely. |
| probability |
The chance of something happening; the percent or number of occurrences over a large number of trials. |
| problem solving task |
The task of taking a specific product from concept through detailed design and engineering to production launch. [See Value Stream] |
| problem solving tools |
Charts, diagrams and graphical displays that help define a problem and identify and categorize alternative solutions. |
| procedure |
Specified way to carry out an activity or a process. |
| process |
Set of interrelated or interacting activities which transforms inputs into outputs. The flow of material in time and space. The accumulation of sub-processes, or operations that transform material from raw material to finished products. |
| process average |
The central tendency of a given process characteristic across a given amount of time or at a specific point in time. |
| process capability |
The measured, built-in reproducibility (consistency) of the product turned out by the process. Such a determination is made using statistical methods, not wishful thinking. The statistically determined pattern or distribution can only then be compared to specification limits to decide if a process can consistently deliver product within those parameters. |
| process capacity table |
A chart primarily used in machining processes that compares set-up and machine load times to available capacity. |
| process control |
See Statistical Process Control. |
| process control chart |
Any of a number of various types of graphs upon which data are plotted against specific control limits. |
| process costing |
A system that accumulates all costs for the production of similar items in a given batch, lot or time frame and creates an average unit cost based on the volume or units produced. Costs are tracked only for the entire batch, and not pegged to individual units. |
| Process Failure Mode and Effects Analysis (PFMEA) |
An analytical technique used by a manufacturing responsible engineer/team as a means to assure that, to the extent possible, potential failure modes and their associated causes/mechanisms have been considered and addressed. |
| process management |
The cycle of continuous review, re-examination and renewal of fundamental work processes that contribute to an organization's performance and productivity. Itself a continual process, process management must at all times challenge a process' fit with other processes, and may result in radical change to work methods and practices. |
| process manufacturing |
A manufacturing environment often characterized by a batch or continuous transformation of a gas, liquid or powder, low product complexity and manufacturing variations, fixed or dedicated facilities, a flat bill of material and relatively few transactions. |
| process quality audit |
An analysis of elements of a process and appraisal of completeness, correctness of conditions, and probable effectiveness. |
| process sheet |
A set of manufacturing instructions for a specific batch, lot or run that describe the operating parameters and settings for the equipment and facilities used, and any associated tooling or supplies. |
| process spread |
The range of values which a given process characteristic displays; this particular term most often applies to the range but may also encompass the variance. The spread may be based on a set of data collected at a specific point in time or may reflect the variability across a given amount of time. |
| process time |
The elements of lead time, such as setup and run, in which a product is undergoing transformation, and not waiting or being moved. |
| process validation |
Establishing by objective evidence that a process consistently produces a result or product meeting its predetermined specifications. |
| process view |
A diagram or flow chart that graphically represents the activities, resources and timing of a given process. |
| process |
The combination of people, machine and equipment, raw materials, methods, and environment that produces a given product or service. |
| producer’s risk |
Probability of rejecting a lot when, in fact, the lot should have been accepted (see alpha risk). |
| product |
Result of a process. (May be services, software, hardware or processed materials, or a combination thereof.) |
| product acceptance |
The verification that a given purchased or manufactured item meets specifications and is usable for its intended purpose. |
| product code |
Synonymous with part number, although sometimes used to represent only finished items. |
| product costs |
Costs associated with the volume or number of units produced as opposed to the passage of time. |
| product data management (PDM) |
An expanded view of product definition functions that include a bill of material and routing database, current and historical engineering data and specifications and engineering change order history. |
| product definition |
The description of the materials, processes and resources used in the production of an item, as contained in the bill of material, routing and work center records. |
| product family |
A set of items considered as a related group in forecasting, capacity planning or other functions. |
| product liability or service liability |
A generic term used to describe the onus on a producer or others to make restitution for loss related to personal injury, property damage, or other harm caused by a product or service. |
| product life cycle |
The processes, costs and revenues associated with a product from its initial creation to its abandonment, and often categorized by the stages of introduction, growth, maturity and decline. Identifying the product life cycle stage is a key factor in the determination of facility and support investment, marketing efforts, and required reporting measurements and controls. |
| product mix |
The number of individual products produced or sold by an organization. The mix is defined by the industry and manufacturing environment, and management strategies that position the company as a specialty, niche or broad-based supplier of goods and services. Instances where the product mix varies widely from period to period often requires more investment in facilities and inventory, and may result in lower levels of customer service. |
| product quality audit |
A quantitative assessment of conformance to required product characteristics. |
| product rationalization |
The process of justifying continued production or sales of a given item, based on a variety of factors such as its usage in single or multiple parents, use of dedicated production facilities, margin, number of customers, complement to other products, life cycle stage and others. It requires the capability to prioritize intangibles and to identify true cost drivers. |
| product structure |
syn: bill of material. |
| production activity control (PAC) |
The activities related to scheduling, releasing and tracking production orders and schedules, and reporting the materials and resources used and the results of the production process. |
| production database |
The set of records and files that provide the data necessary to schedule and report production, such as the bill of material, routing, work center, production calendar and other associated files. |
| production line |
A linked set of manufacturing equipment or work stations that sequentially process a standard group of products or product families; most often used in a high-volume, repetitive manufacturing environment. |
| production material |
Components and material directly used in the manufacturing process, and not for support or supply purposes. |
| production order |
An order that authorizes manufacture of a specific quantity of an item or group of items, contains release and due dates, and documents requirements for the materials and resources used. It is assigned a separate number or identifier used in reporting material and labor transactions. |
| production planning |
The cross-functional process of devising an aggregate, family-level plan for a month or quarter based on management targets for production, sales and inventory levels. It meets operating requirements for fulfilling basic business profitability and market goals, and provides the overall desired framework in developing the master production schedule and in evaluating capacity and resource requirements. |
| production preparation process |
See 3P. |
| production schedule |
A prioritized report of released production orders for a manufacturing facility or specific department. |
| production smoothing |
Keeping total manufacturing volume as constant as possible. [Same as Heijunka, leveling] |
| productivity |
An overall measure based on a quantity of output generated by a given quantity of input. Increased output as a result of the same amount of input such as labor hours) indicates more efficient use of a given set of resources due to process improvements or other achievements. |
| professional services automation (PSA) |
Systems and software that support organizations or departments that engage in consulting, legal or other skill-based services by providing timesheet, billing, project status, knowledge base and other associated functions. |
| profit center |
A organizational unit or department designated as a separate entity for purposes of revenue generation and cost collection, with decision- making capabilities to affect both processes. |
| program evaluation and review technique (PERT) |
A project management system that determines the project finish date by estimating best (shortest), worst (longest) and most likely duration times for activities on the critical path. |
| programmable logic controller (PLC) |
A device using programmed, custom instructions to provide automated monitoring and control functions by evaluating a set of inputs. Used to automate complex functions in machining, packaging, materials handling or other applications. |
| programmed production |
The use of software programs to control production and support equipment such as CNC machines or robots. |
| progress payment |
The payment of a portion of a total invoice or estimated cost based on the accomplishment of milestones, cost recovery agreement, or other contractual method. |
| project calendar |
The definition of working and non-working days available for project tasks and activities. |
| project costing |
The identification and reporting of all costs generated by a single project. All production orders, purchase orders and inventoried items are separated and pegged to the project in order to provide a total actual cost. A method often used in capital equipment manufacturing and systems integration or professional services projects. |
| project management |
The methods and disciplines used to define goals, plan and monitor tasks and resources, identify and resolve issues, and control costs and budgets for a specific project. |
| project team |
The dedicated or part-time resources assigned to a project, which include the project leader, functional team leaders, functional team members, technical and consulting support. Ad hoc team members are brought in on a temporary basis to solve specific issues. |
| projected balance |
A future estimated inventory balance calculated by taking the current on-hand inventory, adding scheduled receipts and subtracting requirements or allocations. In planning systems a projected balance is compared to the order point or safety stock level to determine the need to reorder. |
| projected life |
The estimated useful period of a resource or system, based on time, number of cycles, units processed, or other factors. |
| promise date |
The shipment date committed to by a vendor. In some industries and contracts, the promise date is the date of delivery at the customer site. |
| promotion |
A set of marketing and sales activities attached to a specific advertisement, campaign or trade show that offers a discount or other incentive based on a time frame or use of a designated code. Sales revenue and discounts generated from a given promotion are tracked to measure their effectiveness. |
| proportional band |
The change in input required to produce a full range change in output due to proportional control action. The preferred term is proportional gain. |
| proportional control |
A control mode in which there is a continual linear relationship between the deviation computer in the controller, the signal of the controller, and the position of the final control element. |
| proportional gain |
The ratio of change in output due to proportional control action to the change in input. |
| prospect |
An identified potential consumer of a company's goods or services, often tracked in CRM, SFA or contact management systems. |
| pseudo item |
syn: phantom. |
| PSI |
Abbreviation for pounds per square inch. |
| PSIA |
Abbreviation for pounds per square inch, absolute. |
| PSIG |
Abbreviation for pounds per square inch, gage. |
| pull system |
One of the 3 Elements of JIT. The pull system enables the production of what is needed, based on a signal of what has just been sold. The downstream process takes the product they need and 'pulls' it from the producer. This 'customer pull' is a signal to the producer that the product is sold. The pull system links accurate information with the process to minimize overproduction. |
| purchase order |
The contractual agreement with a supplier of goods or services that specifies payment terms, delivery dates, item identification, quantities, freight terms and all other obligations and conditions. The order may specify multiple items and delivery dates, but is always generated for a single vendor. |
| purchase price variance (PPV) |
The variance created by the actual price paid to a vendor for material as compared to the standard cost, sometimes separated into the variance created by the specified purchase order price vs. the standard, and the actual vendor invoice cost vs. the specified purchase order price. |
| purchase to order (PTO) |
The method used to respond to demand in which an item is purchased only when required by a customer order that specifies that item, and not for processing or assembling into a different item number. |
| purchase to stock (PTS) |
The demand response method where an end item or service part required as is for an expected customer order is purchased and stocked against a forecast. The forecast represents independent customer or interplant demand, and not usage in an upper level item. |
| purchase-to-pay cycle |
The total elapsed time between the creation and acceptance of a purchase order, and payment for the items or services. |
| purchasing lead time |
The total time required to place and receive purchased items, which includes internal review and placement time (order release), vendor transportation time, and the dock to stock activities to receive and store. |
| purchasing |
The functions, processes and department that source material and services, negotiates terms and availability agreements, responds to requests for material by user departments and communicates order status and actual or potential supply disruptions. |
| push system |
In contrast to the pull system, product is pushed into a process, regardless of whether it is needed right now. The pushed product goes into inventory, and lacking a pull signal from the customer indicating that it has been ordered, more of the same product could be overproduced and put in inventory. |
| putaway |
The activities related to the receipt of material, determination of its storage or other destination, movement to that location and the stocking and physical arrangement as required. |
