CPIM Part 1 Section B

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1. Advanced Planning and Scheduling (APS): Techniques that deal with analysis and planning of logistics and manufacturing during
short, intermediate, and long-term time periods. It describes any computer program that uses advanced mathematical algorithms or
logic to perform optimization or simulation on finite capacity scheduling, sourcing, capital planning, resource planning, forecasting,
demand management, and others. These techniques simultaneously consider a range of constraints and business rules to provide real-
time planning and scheduling, decision support, available-to-promise, and capable-to-promise capabilities. It often generates and
evaluates multiple scenarios. Management then selects one scenario to use as the "official plan." The five main components of this
system are (1) demand planning, (2) production planning, (3) production scheduling, (4) distribution planning, and (5) transportation
planning.
2. Assemble to Order (ATO): A production environment where a good or service can be assembled after receipt of a customer's order.
The key components (bulk, semi-finished, intermediate, subassembly, fabricated, purchased, packing, and so on) used in the assembly
or finishing process are planned and usually stocked in anticipation of a customer order. Receipt of an order initiates assembly of the
customized product. This strategy is useful where a large number of end products (based on the selection of options and accessories)
can be assembled from common components.
3. Assembly Line: An assembly process in which equipment and work centers are laid out to follow the sequence in which raw materials
and parts are assembled
4. Batch: A process type, also called flow or lot manufacturing, which is a version of intermittent manufacturing for higher production
volume. Emphasis on longer production runs and fewer changeovers.
5. Cellular Manufacturing: A manufacturing process that produces families of parts within a single line or cell of machines controlled by
operators who work only within the line or cell.
6. Closed-loop MRP: A system built around material requirements planning that includes the additional planning processes of production
planning (sales and operations planning), master production scheduling, and capacity requirements planning. Once this planning
phase is complete and the plans have been accepted as realistic and attainable, the execution processes come into play. These
processes include the manufacturing control processes of input-output (capacity) measurement, detailed scheduling and dispatching,
as well as anticipated delay reports from both the plant and suppliers, supplier scheduling, and so on. The term closed loop implies
not only that each of these processes is included in the overall system, but also that feedback is provided by the execution processes
so that the planning can be kept valid at all times.
7. Components: The raw material, part, or subassembly that goes into a higher-level assembly, compound, or other item. This term may
also include packaging materials for finished goods.
8. Continuous Manufacturing: A form of repetitive manufacturing with output that is us when products being produced are liquids.
9. Continuous Production: A production system in which the productive equipment is organized and sequenced according to the steps
involved to produce the product. This term denotes that material flow is continuous during the production process. The routing of the
jobs is fixed and setups are seldom changed.
10. Data Governance: The overall management of the accessibility, usability, reliability, and security of data used to ensure data record
accuracy.
11. Delivery Lead Time: The time from the receipt of a customer order to the delivery of the product.
12. Discrete Manufacturing: The production of distinct items such as automobiles, appliances, or computers.
13. Electronic Data Interchange (EDI): The paperless (electronic) exchange of trading documents, such as purchase orders, shipment
authorizations, advanced shipment notices, and invoices, using standardized document formats. It further integrates the requirements
and transactions of upstream suppliers and downstream DCs and customers
14. Engineer to Order (ETO): Products whose customer specifications require unique engineering design, significant customization, or new
purchased materials; each customer order results in a unique set of part numbers, bills of material, and routings
15. Enterprise Resource Planning (ERP): Framework for organizing, defining, and standardizing the business processes necessary to
effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage.
16. Fixed position manufacturing: Similar to project manufacturing, this type of manufacturing is mostly used for large, complex projects,
where the product remains in one locations for its full assembly period or may move from location to location after considerable work
and time are spent on it. Examples include shipbuilding or aircraft assembly, where the costs of frequent movement of the product are
very high.
17. Flow Processing: In process systems development, work flows from one workstation to another at a nearly constant rate and with no
delays. When producing discrete (geometric) units, the process is called repetitive manufacturing; when producing non-geometric units
over time, the process is called continuous manufacturing. A physical-chemical reaction takes place in the continuous flow process.
18. Flow Shop: A form of manufacturing organization in which machines and operators handle a standard, usually uninterrupted, material
flow. The operators generally perform the same operations for each production run. Production is set at a given rate, and the products
are generally manufactured in bulk.
19. Functional Layout: Facility configuration where operations of a similar nature or function are grouped together; organizational structure
based on departmental specialties
20. Gantt Chart: A time and activity bar chart that is used for planning, managing, and controlling major programs that have a distinct
beginning and end.
21. Intermittent Production: A form of manufacturing in which the jobs pass through the functional departments in lots, and each lot may
have a different routing.
22. I-Plant: one raw material to make one final product. Processing is done in a straight line.
23. Job Shop: An organization in which similar equipment is organized by function. Each job follows a distinct routing through the shop.
Also a type of manufacturing process used to produce items to each customer's specification
24. Line Manufacturing: repetitive manufacturing performed by specialized equipment in a fixed sequence
25. Make to Order (MTO): A production environment where a good or service can be made after receipt of a customer's order. The final
product is usually a combination of standard items and items custom-designed to meet the special needs of the customer. Where
options or accessories are stocked before customer orders arrive, the term assemble to order is frequently used.
26. Make to Stock (MTS): Production environment where products can be and usually are finished before receipt of a customer order;
customer orders are typically filled from existing stocks, and production orders are used to replenish those stocks
27. Manufacturing Lead Time: The total time required to manufacture an item, exclusive of lower level purchasing lead time. For make-to-
order products, it is the length of time between the release of an order to the production process and shipment to the final customer.
For make-to-stock products, it is the length of time between the release of an order to the production process and receipt into
inventory. Included here are order preparation time, queue time, setup time, run time, move time, inspection time, and put-away time
28. Manufacturing Philosophy: The set of guiding principles, driving forces, and ingrained attitudes that helps communicate goals, plans,
and policies to all employees and that is reinforced through conscious and subconscious behavior within the manufacturing
organization.
29. Manufacturing planning and control system (MPC): A closed loop information system that includes the planning functions of
production planning (S&OP), master production scheduling, material requirements planning and capacity requirements planning.
30. Manufacturing Process: The series of operations performed upon material to convert it from the raw material or a semifinished state to
a state of further completion
31. Manufacturing Resource Planning (MRP II): A method for the effective planning and integration of all internal resources. A direct
outgrowth and extension of closed-loop MRP
32. Mass Customization: The creation of high-volume product with large variety whose manufacturing cost is low due to the large volume,
allowing customers to specify an exact model out of a large volume of possible end items.
33. Master Planning: A group of business processes that includes the following activities: demand management (which includes
forecasting and order servicing); production and resource planning; and master scheduling (which includes the master schedule and
the rough-cut capacity plan).
34. Modularization: In product development, the use of standardized parts for flexibility and variety. Permits product development cost
reductions by using the same item(s) to build a variety of finished goods. This is the first step in developing a planning bill of material
process
35. Nesting: The act of combining several small processes to form one larger process.
36. Package to Order: A production environment in which a good or service can be packaged after receipt of a customer order. The item
is common across many different customers; packaging determines the end product.
37. A Plant: Various raw materials are transformed in their own production process and converge into one or more final materials.
38. Postponement: A product design or supply chain strategy that deliberately delays final differentiation (assembly, production,
packaging, tagging, etc.) until the latest possible time in the process. This shifts product differentiation closer to the consumer to
reduce the anticipatory risk, eliminating excess inventory in the form of finished goods in the supply chain.
39. Procurement Lead Time: Time required to design a product, modify or design equipment, conduct market research, and obtain all
necessary materials; begins when decision has been made to accept an order to produce new product and ends when production
begins
40. Product Decline Stage: the stage in which sales continue to fall and profit margins decline drastically
41. Product Growth Stage: A period of rapid market acceptance and substantial profit improvement
42. Product Introduction Stage: A period of slow sales growth as the product is introduced in the market. Profits are nonexistent because
of the heavy expenses
43. Production Line: A series of pieces of equipment dedicated to the manufacture of a specific number of products or families.
44. Product Layout: Another name for flow process layout. A system that is set up for a limited range of similar products. Focused-factory
production is also considered to be in this category.
45. Product Life Cycle: The stages through which goods and services move from the time they are introduced on the market until they are
taken off the market.
46. Product Maturity Stage: A slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits
stabilize or decline because of increased competition.
47. Project Management: The use of skills and knowledge in coordinating the organizing, planning, scheduling, directing, controlling,
monitoring, and evaluating of prescribed activities to ensure that the stated objectives of a project, manufactured good, or service are
achieved.
48. Purchasing Lead Time: The total lead time required to obtain a purchased item
49. Repetitive Manufacturing: The repeated production of the same discrete products or families of products. Repetitive methodology
minimizes setups, inventory, and manufacturing lead times by using production lines, assembly lines, or cells. Work orders are no
longer necessary; production scheduling and control are based on production rates. Products may be standard or assembled from
modules. Not a function of speed or volume
50. Supplier Lead Time: Amount of time that normally elapses between the time an order is received by a supplier and the time order is
shipped
51. T Plant: multiple straight line assemblies can merge into several subassemblies
52. U-lines: Production lines shaped like the letter "U." The shape allows workers to easily perform several nonsequential tasks without
much walk time. The number of workstations in a U-line is usually determined by line balancing. U-lines promote communication.
53. V Plant: few raw materials can be made into many end products
54. Work Cell: Dissimilar machines grouped together into a production unit to produce a family of parts having similar routings.
55. Work Center: Production areas that are grouped by function. This process type, also called job shop or intermittent manufacturing, is
organized around similar processes and usually involves smaller lots or batches. Emphasis on fast changeovers with skilled, flexible
labor