The web’s largest Lean glossary. A lexicon of over 1,500 terms used in industrial engineering, lean thinking, operations management, quality management, and business statistics.

 

r chart A range control chart. A plot of the difference between the highest and lowest in a sample. Range control chart.
RAB Registrar Accreditation Board (U.S.)
rack A multi-tier storage system normally designed to handle pallets, cartons or other standard containers and designed for manual or automated pick/putaway access.
radio frequency automatic identification (RFID) A location and identification system using radio frequency signals that employs a transceiver, antenna and tag associated with a product and location to transmit data. The systems do not require a direct line of sight or contact and can transmit at high speed, but are more costly than other data collection technologies such as bar coding. RFID systems are often used for inventory tracking in large warehouse and distribution center facilities.
random location A stocking location chosen on an as-needed basis and not pre-assigned to a specific product. Random locations may be used in addition to the primary location when required by seasonal fluctuations.
random Selecting a sample so each item in the population has an equal chance of being selected; lack of predictability; without pattern.
random cause A source of variation which is random; a change in the source ("trivial many" variables) will not produce a highly predictable change in the response (dependent variable), e.g., a correlation does not exist; any individual source of variation results in a small amount of variation in the response; cannot be economically eliminated from a process; an inherent natural source of variation.
random effects model Experimental treatments are a random sample from a larger population of treatments. Conclusions can be extended to the population. Interference's are not restricted to the experimental levels.
random sample One or more samples randomly selected from the universe (population).
random variable A variable which can assume any value from a set of possible values.
random variations Variations in data which result from causes which cannot be pinpointed or controlled.
randomness A condition in which any individual event in a set of events has the same mathematical probability of occurrence as all other events within the specified set, i.e., individual events are not predictable even though they may collectively belong to a definable distribution.
range A measure of the variation in a set of data. It is calculated by subtracting the lowest value in the data set from the highest value in that same set.
rapid prototyping The process of creating physical models and solid objects from computer aided design (CAD), stereo lithography or other specifications. It normally uses a series of layers to build a physical object, and aims to reduce design cycle time and enable multiple test iterations at lower cost before moving to volume production.
rate variance The difference between the planned and actual output or production rates for a given period.
raw material Purchased items, such as bar stock or food ingredients, transformed by manufacturing operations into an intermediate or finished item. Often used in reference to bulk or commodity items but may include individual components (piece parts) such as nuts, bolts and screws.
rate-based scheduling The creation of a production schedule based on the capacity or usage rate for a specified shift, date, week or other timeframe and not by individual order or item.
rated capacity The net or factored capacity measure that reduces planned or available hours by utilization (hours actually worked) and efficiency ( percent of standard rate achieved) to arrive at most likely availability.
ratio control A control mode which is used to proportionally blend two of more raw materials.
ratio controller A controller that maintains a predetermined ratio between two or more variables.
reaction plan The action specified by a control plan when nonconforming product or process instability is identified.
readiness assessment The review of project task and resource status immediately prior to cutover that assesses risks and the probability of success.
real value Attributes and features of a product or service that, in the eyes of customers, are worth paying for. [See Value Added, Non-Value Added]
realization (as used in ISO 9000:2000) The carrying out of an action or process to completion.
real-time The processing and visibility of transactions and information as they occur, and not on a periodic or batch basis.
reason code A code that classifies scrap, inventory write-offs, order changes or other transactions into categories for analysis and corrective action.
receiving disposition A stocking location used in the receiving process, which may include the receiving dock, inspection, hold or material review, final primary or random location and others.
receiving The functions and department that process incoming material against purchase orders, interplant orders and customer returns, verify proper item, quantity and physical condition, move to stocking locations and perform receipt update and documentation duties.
recipe Used synonymously with bill of material in process industries.
reconciliation The process of comparing two or more sets of data to resolve discrepancies and demonstrate proof of accuracy.
record Document stating results achieved or providing evidence of activities performed.
recurring payables Ongoing expenses that occur at regular intervals and normally have the same dollar amount, such as rent or insurance payments. Accounts payable systems may automatically generate invoices for recurring payments for a single or multiple periods to avoid manual entry.
redundancy The process of avoiding failure in a system or network by providing additional capacity or building in replacement material or facilities.
regeneration The batch processing of a complete set of records, such as in MPS, MRP or CRP, that does not provide a net update based on a selected subset of records such as those with activity only.
registrar A company that conducts quality system assessments to the Quality System Requirements.
regrade Alteration of the grade of a nonconforming product in order to make it conform to requirements differing from the original ones.
regression analysis The method of estimating relationships between dependent variables and one or more independent variables that measures how the distribution of a variable changes as input conditions are changed.
reject region The region of values for which the alternate hypothesis is accepted.
relationship The link between two entities in a system or network, such as the relationship between a vendor and a customer or two activities in a project.
relative quality Degree of excellence of a product or service.
release Permission to proceed to the next stage of a process. The authorization to pick, ship or produce against a previously-created order.
reliability engineering That engineering function dealing with the principles and practices related to the design, specification, assessment, and achievement of product or system reliability requirements and involving aspects of prediction, evaluation, production, and demonstration.
reliability The probability that an item will continue to function at customer expectation levels at a measurement point, under specified environmental and duty cycle conditions.
remanufacturing The extensive remake of an existing product into one with like functionality that can be resold. It often involves breaking down a product into main, or core, subsystems and modules and adding extensive parts and labor.
remote In data processing, a term used to refer to any devices that are not located near the main computer.
remote synchronization The centralized update of distributed devices and systems with separate databases that brings them up to the same status.
reorder point (ROP) syn: order point.
repair Action taken on nonconforming product so that the product will fulfill the intended usage although the product may not conform to the original requirements.
repair part syn: service part.
repetitive manufacturing A manufacturing environment often characterized by discrete, solid units, high individual unit volumes, low manufacturing variation, production line facility layout and use of a schedule instead of individual orders.
replacement cost A valuation method based on the current market price to replace a given item, rather than its initial or previous cost.
replenishment order Generally, any order used to resupply an item to its desired stock position. Often refers to an interplant or intercompany order that does not generate payables and receivables, as opposed to the placement of a purchase order with a vendor.
replication Observations made under identical test conditions.
report writer A database query tool used to create ad hoc reports that does not require the knowledge and use of programming.
representative sample A sample which accurately reflects a specific condition or set of conditions within the universe.
request date The order shipment date requested by a customer, or the initial target date evaluated by a vendor when determining their actual promise date.
requirements definition The documentation for a new or proposed system that states design strategy, provided functionality, source of inputs and audience or target user base, and may state performance or other targets. An overall translation of project or system requirements into a defined specification that supports those requirements.
requisition A paper or electronic document that requests delivery of materials or services and is normally initiated by the using department. It usually includes requested dates and quantities, but may leave the determination of pricing and vendor sourcing to a purchasing agent. MRP generations often treat accepted requisitions as a scheduled receipt in the same manner as a purchase order.
rescheduling assumption Processing logic in MRP and other planning systems that assumes it is easier to reschedule an existing order than to place a new order. When requirements and supply are not aligned, the system will suggest the reschedule of all open scheduled receipts as needed, before suggesting a new order.
reserved Capacity or inventory allocated to a requirement but not yet used.
residual error See Experimental Error.
resource An entity, such as personnel or equipment, that performs activities or services and normally has a cost associated with that performance.
resource activation Using a resource regardless of whether throughput is increased. [See Resource Utilization ]
resource driver In activity based costing (ABC), the tie between a resource and the activities that consume it that allows the assignment of costs.
resource utilization Using a resource in a way that increases throughput . [See Resource Activation]
response time 1. The time required for the absolute value of the difference between the output and its final value to become and remain less than a specified amount, following the application of a step input or disturbance. 2. The time required for the output to first reach a definite value after the application of a step input or disturbance. 3. The time it takes for a controlled variable to react to a change in input.
restock The return of goods previously moved or shipped to a stock location without their modification or usage.
restocking charge A penalty charged to a customer returning goods for credit that covers the labor charges incurred in processing the receipt.
return on assets (ROA) The ratio of operating income divided by total assets employed that indicates the relative operating efficiency of an organization.
return on equity (ROE) The ratio of net income divided by net worth (equity) that indicates the highest-level indicator of company success.
return on investment (ROI) The ratio of income produced by an asset divided by its investment cost.
return to vendor Purchased material determined to be unacceptable by receiving inspection or during the production process, and designated for return to the supplier for credit or replacement.
returned goods authorization (RGA) The approval of a customer product return for credit, rework or repair that normally has a unique identifier, specifies the products involved and sometimes the original shipment information, and serves as the authorization for processing at the receiving location.
reverse engineering The disassembly and analysis of a competing product to evaluate its comparative strengths and weaknesses in preparation for the possible manufacture of a similar item.
reverse logistics The systems and methods used to move previously-shipped goods from a customer back to a manufacturer or distribution center due to repair, service, credit or order error issues.
revision level An alpha or numeric character assigned to an item number, bill of material or routing that indicates its current status in terms of number of engineering changes. The level is normally a separate field that does not change the underlying master number, and is not normally segregated from other revision levels in MRP explosions and inventory counts.
rework Action taken on a nonconforming product so that it will fulfill the specified requirements before it is released for distribution.
risk analysis The identification of possible risks, assessment of their likelihood and impact, and creation of methods to avoid or reduce them.
robust The condition or state in which a response parameter exhibits hermetically to external cause of a nonrandom nature; i.e., impervious to perturbing influence.
root cause analysis A process improvement and error or defect prevention tool that examines the individual processes within a system, identifies the control or decision points, and uses a series of why? questions to determine the reasons for variations in the process paths.
root cause The most basic underlying reason for an event or condition. The root cause is where action must be taken to prevent recurrence.
rough cut capacity planning (RCCP) A high-level capacity planning system often developed at the family level that provides an overall check of critical resources and verifies the feasibility of the master production schedule and sales and operations plan. It uses a bill of resource for items or families that specifies the requirements for key resources only, as opposed to all operations as done on the routing. Resource requirements from the S&OP and suggested MPS are compared to availability, on an overall weekly or monthly basis, and indicate projected over and under capacity situations that could impact the successful completion of the plan.
routing The detailed description of the requirements to produce a given item, which includes the operations performed, the order in which they are done, the labor or machine resources required at each operation, and the rate those resources process the item at each operation. It may also include tooling and process or other specifications, and serves as the basis for manufacturing lead time calculations, detailed capacity planning and the cost standards associated with production. Released production orders normally include the standard routing and bill of material, unless modified for a specific order.
rules-based A system that includes if, then, not equal to, not greater than or less than and other parameters to construct an allowable process or product. In describing the configuration of a product from a menu of choices, it may provide that if option X is chosen, option Y can not be chosen and 2 of option Z must also be selected.
run chart The graphical display of a system's output for a given period of time that indicates trends, individual or summarized data points, ranges and other variables used to evaluate acceptable performance. syn: run diagram.
run size Used synonymously with lot or batch size.
run time Time spent processing or transforming material against an order or schedule, and does not include setup, queue or move time.
runs The patterns in a Control Chart within which a number of points line up on only one side of the central line.