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| Taguchi Method |
The analysis of quality problems developed by Genichi Taguchi that involves removing variability and the effects of causes instead of the cause, and focuses on robust process and product design and the identification of after-sales costs. |
| takt time |
Based on the German word that indicates pace, the rate or pace of production as matched to the pace of customer sales. Used in lean manufacturing to align production time in linked manufacturing processes. |
| target costing |
A way of establishing a cost goal for a product or service in the design phase. Target costing follows this formula: Sales price - Target Profit = Target Cost. |
| target date |
A projected start or finish date for a project task. |
| target pricing |
Establishing a sales price based on market penetration or price points rather than building from standard cost. |
| task |
syn: activity. |
| teardown |
The activities required to remove tooling and preset parameters used for the last production run that must occur before setup for the next run can start. |
| theoretical capacity |
The maximum output a given resource could generate if operated full-time and the optimal production rate was met. |
| tebanare |
Japanese for 'hands-free'. Its goal is to use low cost automation on manual machines to allow people to do work that is more valuable that only a person can do. |
| technical expert (in an audit) |
Person who provides specific knowledge of or expertise on the subject to be audited. |
| test of significance |
A procedure to determine whether a quantity subjected to random variation differs from a postulated value by an amount greater than that due to random variation alone. |
| TGA |
Germany Association for Accreditation |
| theory of constraints (TOC) |
Originally developed by Dr. Eliyahu Goldratt and published in his book The Goal, and based on the theory that a system has a single goal, and that systems are composed of multiple linked activities, one of which acts as a constraint on the whole system. A lean management philosophy that stresses removal of constraints to increase throughput while decreasing inventory and operating expenses. It places emphasis on methods to achieve the primary business goal of making money through increasing throughput and reducing inventory and operating expenses, ways to synchronize the production pace of linked activities and ensure continued operation of the system constraint, and the use of thinking processes to identify problems and propose alternatives. |
| third party logistics provider (3PL) |
An outsourced provider that manages all or a significant part of an organization's logistics requirements and performs transportation, locating and sometimes product consolidation activities. |
| throughput |
1) The volume of output generated by a resource in a specific period of time. 2) In the theory of constraints, the rate at which a system generates money. |
| tier 1, 2 supplier |
A tier 1 supplier is the immediate or primary set of vendors directly used by a company, and tier 2 is a vendor to tier 1. In some industries the final customers or dominant chain partners are consolidating (reducing) their number of tier 1 suppliers, and requiring proof of the communications and fulfillment capabilities between tier 1 and tier 2. |
| throughput |
The rate the system generates money through sales. |
| time and attendance |
Systems used to collect actual employee labor hours and absence data, and provide input for payroll generation. |
| time fence |
A specific date used as a boundary for policy changes in a planning or other system. A policy that seeks to stabilize the master production schedule may prohibit changes to the existing schedule inside the time fence (which is based on lead time) and allow changes under certain circumstances after that date. Another example is the reaction to demand based on customer orders only inside the lead time fence, and based on forecast thereafter. |
| time phased order point (TPOP) |
A reorder system that determines the timing and quantity of suggested reorders based on a specified order point and forecasted demand for a designated item, and not by exploding the bill of material. It generates multiple suggested orders as required, as opposed to an order point system that suggests a single reorder, and is typically used for independent demand items. |
| time series |
A data distribution that represents the consecutive changes in values over a period of time. |
| time stamp |
The record of the exact date and time a transaction occurred. |
| time-based competition |
A corporate strategy that has identified a focus on time as providing a competitive edge due to its value by the customer. It may assume no advantage in product or quality characteristics while focusing on the reduction of variability and total design, production and delivery lead time. |
| time-based strategy |
Driving improvement activity through focus on time and its relation to quality, cost, delivery, safety, and morale. Reduction in lead-time, set-up time, cycle time as a means of becoming more competitive. |
| timeliness |
The characteristic of a measurement reported in real time or shortly after the events it measures. A timely measurement can be used for preventive or corrective action, as opposed to a measurement that may be accurate but only serves as a status report due to the time lag between the events and the report. |
| timesheet |
A document or entry program used to record actual labor time against an order or project, that may also specify the operation, location and category or type of task being performed. |
| time-to-market |
The cycle time between product conception and fulfillment. Reduction in time-to-market is a significant competitive advantage in industries with short product life cycles. |
| TL 9000 |
Quality system requirements for suppliers to the telecommunications industry |
| tolerance level |
An allowable variation from a predefined standard. A variance is not considered significant unless it exceeds the limit set by a tolerance level. |
| toll manufacturing |
A version of contract manufacturing sometimes used in the pharmaceutical and specialty chemical industries in which production of specific batches are outsourced to GMP-certified third parties. Ingredients are usually supplied by the originating company in order to control sourcing quality. |
| tool crib |
A specific area dedicated to the storage of tooling items, which typically does not include production components. Locator and limited-physical access systems are often useful based on the amount of tooling stored. |
| tooling |
The tools and support devices required to setup and position equipment for a production run, which may be consumed during that run or remain available for additional jobs. Requirements for unique or specialized tools are scheduled through their addition to the bill of materials (while excluded from product cost) or by other methods to ensure their availability for a specific order. |
| top level (item) |
An end item not used as a component or child of other items. |
| top-down planning |
The process of beginning with an aggregate volume, budget or forecast and dividing the total by assigning values to individual units within the group based on estimates or historical averages. |
| total cost of ownership (TCO) |
The life cycle cost view of an asset, which includes acquisition, setup, support, ongoing maintenance, service and all operating expenses. It focuses attention on the sum of all costs of owning an asset, as opposed to the initial or vendor cost, and is useful in outsourcing decisions. |
| total productive maintenance |
A work philosophy that maximizes equipment effectiveness and uptime throughout the entire life of the equipment. |
| total quality control (TQC) |
The comprehensive set of principles that focuses company-wide attention on the aspects of design, production and logistics that lead to quality conformance and customer acceptance. It maintains a cross- functional view of the processes involved, and stresses that quality is not the responsibility of a separate quality control department. |
| Toyota Production System (TPS) |
A methodology that resulted from over 50 years of Kaizen at Toyota, one of the most successful companies in the world. TPS is built on a foundation of Leveling, with the supporting pillars of Just-in-Time and Jidoka. |
| tracking signal |
An accuracy measure that combines average forecast error with bias, as defined as the ration of the exponentially smoothed error and the exponentially smoothed mean absolute deviation. When the tracking signal exceeds a certain value, the forecast error may considered to be nonrandom and the forecast no longer usable. |
| TPM |
See total productive maintenance |
| TQM |
Total quality management. |
| traceability |
The ability to trace the history, application, or location of an item or activity and like items or activities by means of recorded identification. |
| trade allowance |
The allowance or refund given by a manufacturer to a retailer or distributor who participates in a sponsored advertising or promotion campaign. |
| trade program |
A government or international organization program that specifies duties, tariffs, documentation and other conditions for countries doing business within the program. Trade programs are often designed to spur business for companies and countries inside the program, at the exclusion or penalty to outside companies. Consideration of established and proposed trade programs are critical in evaluating sourcing, facility locations and other factors. |
| trading exchange |
An internet site or sites that conduct sourcing, pricing, delivery and other operations on a business-to-business (B2B) basis. Exchanges are often classifies as private, which link two or more specific companies and do not communicate with a larger group, or public, which provide for a sourcing and bid process for any company that has joined the exchange. |
| trading partner |
A supply chain vendor or customer that does business with a given organization and normally has linked communications. |
| traffic management |
The process of determining timely and economic delivery methods, arranging internal or external transportation, and tracking shipment status and logistics network issues. |
| transfer pricing |
Prices used in the transfer of materials between units of the same company, often at standard cost or standard plus transportation costs. Used when transfers are not considered sales and purchases that generate receivables and payables. |
| transient item |
syn: phantom. |
| transition tree |
A cause and effect diagram used in the theory of constraints to identify and construct the logic and sequence of actions required to reach intermediate and ultimate objectives. |
| traveler |
A document used to tag and accompany material as it moves through receiving dispositions or production operations and work centers, that identifies the items, quantities and order number involved. |
| trend analysis |
The analysis of data that exhibits an ongoing upward or downward pattern that is not due to seasonality or random noise. Analyzing trends is useful in detecting patterns that could lead to future quality problems, and in forecasting future demand periods. |
| TRIZ |
The Russian acronym for Theory of Inventive Problem Solving, a technique that attempts to define a specific problem as a system and identifies elements in the system that need correction to reach the desired solution. |
| tsurube system |
A way to keep product flow continuous even when there are interruptions such as outside processing or batch operations. The tsurube system is often used when product leaves the flow line for processing through equipment that can not be placed into the cell (vendor operations, heat treat, plating, anodizing, etc.). Also called the “Well Wheel System” because of the similarity to how water is drawn out of a well using two buckets and a pulley wheel. |
| turnaround time |
The lead time an operation or process takes to process an input and return the output to the original source, such as documents submitted to a department that returns them after entry or approval, or dry cleaning. |
| turnover |
syn: inventory turnover. |
| two bin inventory system |
An inventory system that uses two bins (or the logical equivalent, based on usage over lead time) to hold inventory. Requirements are taken from an initial single bin; when that bin is empty a reorder is placed and requirements are taken from the second bin. |
| two-position action |
A type of control-system action that involves positioning the final control device in either of two fixed positions without permitting it to stop at any intermediate position. |
| two-sided alternative |
The values of a parameter which designate an upper and lower bound. |
| type I error |
The incorrect rejection of a true hypothesis. See Alpha Risk. |
| type II error |
The failure to reject a false hypothesis. See Beta Risk. |
