CPIM Part 1 Section A
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1. Balance Scorecard: A list of financial and operational
measurements used to evaluate organizational or supply chain
performance. It might include customer perspective, business
process perspective, financial perspective and innovation and
learning perspectives. It formally connects overall objectives,
strategies and measurements
2. Bullwhip Effect: An extreme change in the supply position
upstream in a supply chain generated by a small change in
demand downstream in the supply chain.
3. Business Plan: A statement of long-range strategy and revenue,
cost and profit objectives usually accompanied by budgets, a
projected balance sheet and a cash flow statement
4. Cost: Ability to provide goods at lowest price versus the
competition
5. Customer Service: 1) The ability of a company to address the
needs, inquiries, and requests of customers. 2) A measure of
the delivery of a product to the customer at the time the
customer specified
6. Demand Lead Time: Amount of time potential customers are
willing to wait for the delivery of a good or service
7. Dependability (resilience): Promise fulfillment, on-time delivery
(neither early nor late), and/or products that can take a certain
level of wear and tear
8. Downstream: Used as a relative reference within a firm or
supply chain to indicate moving in the direction of the end
customer
9. Felixibility (agility): Ability to ramp up or down in volume
quickly or change what is being produced without significant
disruption
10. Fixed Cost: An expenditure that does not vary with the
production volume; for example, rent, property tax and
salaries of certain personnel
11. Incoterms: Universal trade terminology developed by the
International Chamber of Commerce
12. Key Performance Indicators: A financial or non financial
measure that is used to define and assess progress toward
specific organizational goals and typically is tied to an
organization's strategy and business stakeholders
13. Level of Service: A measure of satisfying demand through
inventory or by the current production schedule in time to
satisfy the customers' requested delivery dates & quantities.
14. Logistics: 1) In a supply chain management context, it is the
subset of supply chain management that controls the forward
and reverse movement, handling, and the storage of goods
between origin and distribution points. 2) In an industrial
context, the art and science of obtaining, producing, and
distributing material and product in the proper place and in
proper quantities. 3) In a military sense (where ir has greater
usage), its meaning can also include the movement of
personnel
15. make or buy decision: The act of deciding whether to produce
an item internally or buy it from an outside supplier. Factors to
consider in the decision include costs, capacity availability,
proprietary and/or specialized knowledge, quality
considerations, skill requirements, volume, and timing.
16. Materials Management: The grouping of management
functions supporting the complete cycle of material flow, from
the purchase and internal control of production materials to
the planning and control of work in process to the
warehousing, shipping, and distribution of the finished product.
17. Operations Management: the planning, scheduling, and
control of the activities that transform inputs into finished
goods and services
18. Operations Plans: The daily activities of the organization.
Performance measurements at this level relate to daily work
progress. Manufacturing metrics might include utilization,
efficiency, and work center cycle times
19. Order Qualifiers: Those competitive characteristics that a firm
must exhibit to be a viable competitor in the marketplace
20. Order Winners: Those competitive characteristics that causes
a firm's customers to choose that firm's goods and services
over those of its competitors; competitive advantage for firm
21. Outsourcing: The process of having suppliers provide goods
and services that were previously provided internally.
22. Participative design/engineering (concurrent engineering): A
concept that refers to the simultaneous participation of all the
functional areas of the firm in the product design activity.
Suppliers and customers are often also included. The intent is
to enhance the design with the inputs of all the key
stakeholders. Such a process should ensure that the final
design meets all the needs of the stakeholders and should
ensure a product that can be quickly brought to the
marketplace while maximizing quality and minimizing costs.
23. Product Differentiation: A strategy of making a product
distinct from the competition on a nonprice basis such as
availability, durability, quality, or reliability.
24. Quality: Fitness for use
25. Risk Management: The identification, assessment, and
prioritization of risks followed by coordinated and economical
application of resources to minimize, monitor, and control the
probability and/or impact of unfortunate events or to
maximize the realization of opportunities.
26. Scrap: Material outside of specifications and possessing
characteristics that make rework impractical.
27. Service: Sometimes used to describe those activities that
support the production or distribution functions in any
organization, such as customer service and field service
28. Service Industry: 1) In its narrowest sense, an organization that 40. United Nations Global Compact: A voluntary initiative
provides an intangible product (e.g., medical or legal advice). whereby companies embrace, support, and enact, within their
2) In its broadest sense, all organizations except farming, sphere of influence, a set of core values in the areas of human
mining, and manufacturing. This definition of service industry rights, labor standards, the environment, and anticorruption.
includes retail trade; wholesale trade; transportation and 41. Upstream: Used as a relative reference within a firm or supply
utilities; finance, insurance, and real estate; construction; chain to indicate moving in the direction of the raw material
professional, personal, and social services; and local, state, supplier.
and federal governments.
42. Value Chain Analysis: An examination of all links a company
29. SMART goals: Abbreviation for organizational goals that are uses to produce and deliver its products and services starting
specific, measurable, achievable/attainable, relevant/realistic, from the origination point and continuing through delivery to
and timely the final customer.
30. Speed: Time to market (e.g., fast research and development), 43. Variable Cost: An operating cost that varies with a change of
short lead times, high output per time period, and/or fast one unit in the production volume (e.g., direct materials
delivery consumed, sales commissions)
31. Strategic Plan: The plan for how to marshal and determine 44. What-if analysis: The process of evaluating alternate strategies
actions to support the mission, goals, and objectives of an by answering the consequences of changes to forecasts,
organization. Generally includes an organization's explicit manufacturing plans, inventory levels, and so forth.
mission, goals, and objectives and the specific actions needed
to achieve those goals and objectives
32. Strategic Plans: Sets the long-term direction of the
organization. Performance measurements at this level relate to
long-term goals such as profitability, productivity, learning and
growth, and market share
33. Subcontracting: Sending production work outside to another
manufacturer
34. Supply Chain: The global network used to deliver products
and services from raw materials to end customers through an
engineered flow of information, physical distribution, and cash.
35. Supply Chain Management: The design, planning, execution,
control, and monitoring of supply chain activities with the
objective of creating net value, building a competitive
infrastructure, leveraging worldwide logistics, synchronizing
supply with demand, and measuring performance globally.
36. Supply Chain Operations Reference (SCOR) Model: The
standard cross-industry diagnostic tool for supply chain
management. It defines the business activities associated with
satisfying a customer's demand, which include plan, source,
make, deliver and return.
37. Sustainability: An organizational focus on activities that
provide present benefit without compromising the needs of
future generations
38. Tactical Plans: The set of functional plans (e.g., production
plan, sales plan, marketing plan) synchronizing activities
across functions that specify production levels, capacity
levels, staffing levels, funding levels, and so on, for achieving
the intermediate goals and objectives to support the
organization's strategic plan
39. UN Global Compact Management Model: A framework for
guiding companies through the process of formally
committing to, assessing, defining, implementing, measuring,
and communicating the United Nations Global Compact and
its principles.