Glossary

  • Assemble

    To join together two or more parts or subassemblies to form a complete machine, structure, or other article.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.2
  • Assemble to order (ATO)

    Product put together from parts that are already designed and made so as to meet the specifics of a customer order.

    Sources: “Operations Management: Focusing on Quality and Competitiveness”, 2nd edition, Roberta S. Russell and Bernard W. Taylor III, 1995, pp 43-44, “Operations and Supply Chain Management: The Core”, Third Edition, F. Robert Jacobs and Richard B. Chase, p 276
  • Assembly

    Two or more previously fabricated parts or subassemblies joined together to form a complete machine, structure, or other article.

    Sources: Production & Operations Management: Manufacturing and Services, R. B. Chase, N. J. Aquilano and F. R. Jacobs, Eight Edition, pp 101-102, pp 626-628, Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.2
  • Assembly Line

    The arrangement of machine, equipment, material, and workers that permits work in process to progress sequentially from operation to operation until the product (or product component) has been assembled.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.2
  • Automation

    A substitution of machine labor for human labor, either manual or intellectual.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.2
  • Autonomation

    The transfer of human intelligence to automated machinery so that the machine can detect the production of a defect and immediately stop while asking for help. In Japanese: jidoka.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.2


  • Balance

    As applied to progressive-related operations, it is the condition in which the standard times required for each successive operation are approximately equal and the work flows steadily or at a desired rate from one operation to the next.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.2


  • Balanced Line


    A series of progressive-related operations with approximately equal standard times for each, arranged so the work flows at a desired steady rate from one operation to the next.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.2


  • Batch


    The number of units that are being worked on simultaneously before a process produces output (batch output) or the number of units that together are being handed off from one production unit to the next (transfer batch).

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.10
  • Batch Flow


    Production system whereby processing stations are laid out by functional grouping so that each unit being produced is likely to have to follow a jumbled flow from one to the next, according to the processing steps it requires.

    Sources: Schmenner, R. W. (1993), Production/operations management: from the inside out. Macmillan College
  • Batch Production


    A production system which processes items in groups or lots is called batch production.

    Sources: “Operations Management: Focusing on Quality and Competitiveness”, 2nd edition, Roberta S. Russell and Bernard W. Taylor III, 1995, pp 229


  • Batch Size

    The number of units in a batch produced in a single production run. Equivalently pieces per setup change.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.10, Production & Operations Management: Manufacturing and Services, R. B. Chase, N. J. Aquilano and F. R. Jacobs, Eight Edition, pp 806-807


  • Batch Time Formula


    BT = wait-to-batch time + wait-in-batch time.
    Wait-to-batch time is the time jobs spend waiting to form a batch for either (simultaneous) processing or moving
.
    Wait-in-batch time is the average time a part spends in a (process) batch waiting its turn on a machine.

    Sources: “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., P327


  • Bill of Materials


    A bill of material is a formally structured list for an object (semi-finished or finished product), which lists all the component parts of the object with the name, reference number, quantity, and unit of measure of each component. A bill of material can only refer to a quantity greater than or equal to one of an object. It is a product data structure, which captures the end products, its assemblies, their quantities and relationships.

    Sources: Production & Operations Management: Manufacturing and Services, R. B. Chase, N. J. Aquilano and F. R. Jacobs, Eight Edition, pp 101-102, pp 626-628


  • Bottleneck


    The bottleneck of a routing in a production system is the station in the routing with the highest utilization.

    Sources: “Supply Chain Science”, First Edition, Wallace J. Hopp, 2008, Waveland Pr. Inc., p 11, "Factory Physics", W. J. Hopp and M. L. Spearman, Third Edition, 2011, Waveland Pr. Inc., p 326
  • Bottleneck Rate

    The Bottleneck Rate of a routing is the rate (parts per unit time or tasks per unit time) of the station having the highest long-term utilization. By “long term”, it is meant that transitory deviations which are small with respect to the timeframe under consideration, are averaged out in the calculation of the rate.   For example, when considering bottleneck rate over the course of a year, deviations small with respect to a year, such as outages due to machine failures, operator breaks, quality problems are taken out of consideration, but a major maintenance shutdown, which may last for a month, is included in the calculation.

    Sources: "Factory Physics", W. J. Hopp and M. L. Spearman, Third Edition, 2011, Waveland Pr. Inc., p 231
  • Buffer

    A buffer is an excess resource placed at a point in a project’s workstream that corrects for the misalignment between demand for resources at that point in the work stream and the available supply of resources. It can take one of three forms:

    1. Inventory (extra materials or stocks)
    2. Time (a delay between a demand and the satisfaction of that demand)
    3. Capacity (extra capability needed to satisfy irregular or unpredictable demand rate)
    Sources: “Factory Physics”, W. J. Hopp and M. L. Spearman, Third Edition, Waveland Pr. Inc. p 202
  • Capacity (Base)

    The capacity of a process is the maximum average rate at which items, units, information can flow through the process. The base capacity of a process refers to the maximum rate at which the process can handle items/units/information under ideal conditions. Equivalently the maximum amount of customer demand that can be satisfied over a certain period of time, where “customer” might be the next station or operation in a production system.

    Sources: Supply Chain Science, First Edition, Wallace J. Hopp, 2008, Waveland Pr. Inc., p 18, Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.3
  • Capacity (Resource or Workstation or Process)

    Viewing an individual process as starting with the input to an individual workstation and ending with the output from the workstation in a production system, the capacity of the process (or resource or workstation) is the maximum average rate at which items/units/information flow through the process/resource/workstation.
    The process (resource/workstation) capacity is the base capacity – detractors

    Where detractors represent anything that slows the rate of the process in less than ideal conditions.

    Sources: “Supply Chain Science”, First Edition, Wallace J. Hopp, 2008, Waveland Pr. Inc., p 18


  • Capacity (System)


    The maximum average rate at which the items/units/products flow through or are processed by the system
.

    Sources: “Supply Chain Science”, First Edition, Wallace J. Hopp, 2008, Waveland Pr. Inc., p 18


  • Capacity Bottleneck


    A machine or workstation in a production system that constricts or limits the flow or output of production to less than demand
.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.3


  • Capacity Constraint

    The limiting factor in the capacity bottleneck
.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.3


  • Capacity Contributor or Type of Capacity

    In a production system, different types of resource - Labor, equipment / tooling and space – are used to transform inputs into the production system into outputs. Type of capacity refers to the availability of distinct resource types within the system.

    Sources: PPI
  • Commodity

    A raw material, product or service that is indistinguishable from ones manufactured or provided by competing companies and that therefore sells primarily on the basis of price rather than quality or style.

    Sources: American Heritage Dictionary


  • Component

    Generic term for a basic unit used in the manufacture of a product. Components may be put together in subassemblies or the assembly of a product.

    The hierarchy for the terminology is as follows: parts are elements or units in a component.  Components are elements or units in either subassemblies or assemblies.  Assemblies form a product or system.

    Sources: Production & Operations Management: Manufacturing and Services, R. B. Chase, N. J. Aquilano and F. R. Jacobs, Eight Edition, pp 101-102, pp 626-628


  • Concatenate

    From the Latin, concatenare, to link or chain together. Concatenate means to link, end-to-end. For production systems, elements of a single line or routing are concatenated in a sequence of processes.

    Sources: PPI
  • Configure to Order (CTO)


    Assemble to order a product from a set of parts that are most often in stock.

    Sources: “Operations Management: Focusing on Quality and Competitiveness”, 2nd edition, Roberta S. Russell and Bernard W. Taylor III, 1995, pp 43-44
  • Constant Work in Process (CONWIP)

    A control protocol wherein the signal to commence production comes from the final customer in the process and is sent to the first step in the process. All intermediate steps in the process operate under a push protocol. The objective of CONWIP is to control WIP.

    Sources: “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., P363

, “CONWIP: a pull alternative to Kanban”. International Journal of Production Research, 1990, Vol 28, pp 879-894 M. L. Spearman and M. A. Zazanis, “Push and Pull Production Systems: Issues and Comparisons”, Operations Research, Vol 40, No. 3, pp 521-531, May-June 1992
  • Constraint


    In Project Production Control, a constraint is a predecessor task that must be completed in order for work to flow through the process.

    Sources: PPI
  • Continual / Continuous Improvement


    A continual improvement process, also often called a continuous improvement process (abbreviated as CIP or CI), is an ongoing effort to improve products, services, or processes for instance by repeated iteration of the PDSA cycle.
    
Continuous Improvement, often known as Kaizen, is essentially a small step-by-step incremental improvement strategy. It is based upon a belief that continual improvement can be brought about by a never-ending series of small changes. Even in the face of enormous innovative improvement strategies, there will always be the need and opportunity to supplement such strategies and initiatives with continual small step changes.”

    Sources: Schonberger, R. J., 1982, “Japanese Manufacturing Techniques: Nine Hidden Lessons in Simplicity”, p55, New York: Free Press
  • Control


    To take actions or steps to regulate or limit the behavior of processes in a production system.

    Sources: PPI
  • Control Mechanism


    A means to control the behavior of or within a process or system.

    Sources: PPI
  • Control Mechanism – Human Decision Making


    A decision made by an individual to start or delay a process in an attempt to keep or bring a process within a desired state.

    Sources: PPI
  • Control Mechanism – Physical

    A physical item that controls the behavior of a process to a desired state e.g. limiting the number of trailers controls the number of deliveries that can be made at a given time.

    Sources: PPI
  • Control Mechanism – Software

    A software that signals whether a process should be started or delayed in order to keep or bring a process to a desired state.

    Sources: PPI
  • Control Protocol


    The means in which production is planned and controlled. There exist three primary control protocols: push, pull, where production is released into the system based on the status of the system, and constant work in process (CONWIP), basically a pull signal that goes to the beginning of a process.
    
Most often either push wherein the signal to commence production is based on a predetermined objective, pull wherein the signal to commence production is based on the status of the system or a request from a downstream customer or CONWIP where the signal is based on pull and sent to the beginning of the process (rather than the preceding step as in the case of pull).

    Sources: PPI
  • Controls (Project)

    Forecasting, updating, and reporting of the status of the project in accordance with a baseline plan.

    Sources: PPI
  • Critical Path Method (CPM)

    A mathematical algorithm for computing the shortest duration of a set of project activities given a set of precedence-successor relationships between the activities. The sequence of activities that comprises the shortest duration is called the “critical path”.

    Sources: “Non-Computer Approach to the Critical Path Method for the Construction Industry”, Prof. John Fondahl, Stanford University Paper for US Navy, Kelley, James; Walker, Morgan. Critical-Path Planning and Scheduling. 1959 Proceedings of the Eastern Joint Computer Conference
  • Critical Work-In-Process Level


    The WIP required for a line with no variability to achieve maximum throughput with minimum cycle time.

    Sources: “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., PP231-235
  • Customer


    The direct or indirect consumer or beneficiary of the output of an operation, process or production system.

    Sources: PPI
  • Cycle Time (CT)


    Cycle time is measured as the average time from when a job is released into a station or line to when it exits.
    
Cycle Time (CT) is related to Throughput (TH) and Work in Process (WIP) by Little's Law.

    Sources: “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., p 230


  • Demand

    The type, amount and fill rate and date of goods or output required by a customer. In a production system, “customer” might mean the recipient of the output of a particular station in a production system.  So, for instance, if the sequence of tasks in a construction project is that electricians have to install wiring, and plumbers have to install piping before drywall contractors put up the drywall, the drywall contractor are viewed as customers in the project, because they cannot do their work until the electricians and plumbers finish theirs first – they are the recipients of the work output of the electricians and plumbers.

    Sources: PPI
  • Demand Rate


    The rate at which demand (see above) will be placed on an operation, process or system.

    Sources: PPI
  • Deming Cycle

    Another name of the PDCA cycle (see PDSA) in honor of W. Edwards Deming (1900-1993) and based on the work of Walter A. Shewhart (1891-1967)
.
    First introduced by W. A. Shewhart in “Statistical method from the viewpoint of Quality Control” in 1939, originally introduced as a linear sequence of 3 steps and subsequently evolved into the 4-step cycle by Shewhart.
    Shewhart was one of Deming’s mentors, and introduced him to the cycle. Deming built on Shewhart’s concept emphasizing the interactions between the four steps and popularizing the cycle in the area of Total Quality Management.

    Sources: W. A. Shewhart 1980, “Economic Control of Quality of Manufactured Products/ 50th Anniversary Commemorative Issue. American Society for Quality
    See Also: Shewhart Cycle
  • Earned Value Management System

    An integrated management system that integrates the work scope, schedule, and cost parameters of a program in a manner that provides objective performance measurement data. It measures progress objectively with earned value metrics; accumulates direct costs; allows for analysis of deviations from plans; facilitates forecasting the achievement of milestones and contract events; provides supporting data for forecasting of estimated costs; and fosters discipline in incorporating changes to the baseline in a timely manner.

    Sources: Department of Defense Earned Value Management System Interpretation Guide, Feb 15, 2015, US Department of Defense, page 80 (Definitions)


  • Engineered to Order (ETO)


    Product or item for which design and engineering are performed in response to a specific request (order) from a customer and which is subsequently fabricated and assembled to that specification.

    Sources: “Operations Management: Focusing on Quality and Competitiveness”, 2nd edition, Roberta S. Russell and Bernard W. Taylor III, 1995, pp 43-44


  • Engineered to Stock (ETS)


    Products, items, components designed, engineered and fabricated to a buffer or inventory from which parts/products can be obtained by customers or others without delay.

    Sources: “Factory Physics”, Third Edition, Wallace. J. Hopp and Mark. L. Spearman, Waveland Pr. Inc p230


  • Fabricate to Order (FTO)

    Same as CTO: Product or item put together from parts that are already designed, but remain to be made, so as to meet the specifics of a customer request (order).

    Sources: “Operations Management: Focusing on Quality and Competitiveness”, 2nd edition, Roberta S. Russell and Bernard W. Taylor III, 1995, pp 43-44, “Operations and Supply Chain Management: The Core”, Third Edition, F. Robert Jacobs and Richard B. Chase, p 276

  • Fabrication

    Process of making an item through transforming materials through operations such as cutting, drilling, fastening, welding etc.

    Sources: P2SL glossary, p20
  • Factory Physics®

    The framework applying the science of operations to manufacturing management, after the book by Drs. Wallace J. Hopp and Mark L. Spearman.  Factory Physics® is a registered trademark of Factory Physics Inc.

    Sources: Factory Physics, Third Edition, W. J. Hopp and M. L. Spearman,Waveland Pr., 2011
  • Float (also called Slack) 
Free

    Float is the amount of time that a schedule activity can be delayed without delaying the early start date of any immediately following schedule activities.
 Total Float is the total amount of time that a schedule activity may be delayed from its early start date without delaying the project finish date or violating a schedule constraint. Calculated using the critical path method technique and determining the difference between the early finish dates and late finish dates.

    Sources: Guide to the Project Management Body of Knowledge, 4th Edition, Project Management Institute, pp 450-451


  • Flow

    Flow represents the movement of units, components, items, information or raw materials through production system as they are transformed from partially or whole unfinished to completed work products or services.

    Sources: “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc. p 203
  • Forecast


    An estimate or prediction of conditions and events in the project’s future based on information and knowledge available at the time of the forecast. The information is based on the project’s past performance and expected future performance and includes information that could impact the project in the future, such as estimate at completion and estimate to complete.

    Sources: Guide to the Project Management Book of Knowledge, Fourth Edition, Project Management Institute, p 435


  • Inventory – Work in Process (WIP)

    All work within a production process – in the context of a project, all work that is or has occurred prior to completion of the project.

    In the context of a manufacturing production system refers to all work that has occurred – raw materials, partially finished products, finished products prior to sale and departure from the manufacturing system.
    
 In the context of services, refers to all work done prior to sale including partially processed information.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.8, “Operations and Supply Chain Management: The Core”, Third Edition, F. Robert Jacobs and Richard B. Chase, p 346 


  • Inventory (Also known as Stock
)

    Working stock: Inventory that is actively being processed or moved Congestion stock: Inventory that builds up unintentionally as a consequence of variability in the system Cycle stock: Inventory that results from batch operations Safety stock: Inventory that exists intentionally to buffer variability Anticipation stock: Inventory that is built up in expectation of future demand.

    Sources: Supply Chain Science, First Edition, Wallace J. Hopp, 2008, Waveland Pr. Inc., (Page 117)
  • Inventory/Order Interface

    The point in a flow where entities switch from make-to-stock to make-to-order.

    Sources: “Supply Chain Science”, Wallace J. Hopp, 2008, Waveland Pr Inc., page 34


  • Job Shop


    Production system that accommodates making one-of-a-kind products whereby processing stations (machines) are laid out by functional grouping, such that each unit being produced is likely to have to follow a jumbled flow from one to the next, according to the processing steps it requires.

    Sources: “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, pp. 9-10


  • Just in Time (JIT)


    “Produce only what is needed” with a goal to control WIP - Delivery of input to a customer just prior to when a customer needs it.

    Sources: Sources: “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, P156


  • Kingman’s Equation (VUT equation)

    In queuing theory, a discipline within the mathematical theory of probability, Kingman's formula is an approximation for the mean waiting time in a queue in a system with a single server where arrival times have a general (meaning arbitrary) distribution and service times have a (different) general distribution. It is generally represented as CT = VUT, where CT is Cycle Time, V is a factor representing variability, U is a factor representing utilization, and T represents the mean effective process time.

    Sources: Factory Physics, Third Edition, Wallace J. Hopp and Mark L. Spearman, Page 288
  • Kit


    An assemblage of information, consumables, materials / parts and special tools required to execute a specific operation or element of work.

    Sources: PPI
  • Kitting


    The process of assembling a kit (see Kit above).

    Sources: PPI
  • Last Planner System™


    The collaborative commitment-based planning system that integrates should-can-will-did planning developed by Ballard et al.

    Last Planner is a trademark of the Lean Construction Institute.

    www.leanconstruction.org

    Sources: G. Ballard (1994). The Last Planner, Northern California Construction Institute, Monterey California., G. Ballard (2000) The Last Planner System of Production Control, Ph. D. Dissertation, Univ. of Birmingham UK
  • Last Planner™


    The person making commitments on behalf of and assignments to direct workers.

    Sources: G. Ballard (1994). The Last Planner, Northern California Construction Institute, Monterey California., G. Ballard (2000) The Last Planner System of Production Control, Ph. D. Dissertation, Univ. of Birmingham UK




  • Last Possible Moment (LPM)

    The last point in time when an operation or task can be completed without negatively impacting schedule objectives.

    Sources: PPI
  • Last Responsible Moment (LRM)


    The moment beyond which a decision to select one of several alternatives cannot be taken either because the cost of selecting the alternative exceeds the benefit, or because the alternative is no longer available for selection.

    Sources: “Wicked Problems, Righteous Solutions – Back to the Future on Large Complex Projects”, Proceedings of the Proceedings 8th Annual Meeting of the International Group for Lean Construction, Aug 17-19, 2000, Brighton UK
  • Law of Variability

    Increasing variability always degrades the performance of a production system
.

    Sources: FP Factory Physics, W. J. Hopp and M. L. Spearman, p 309


  • Law of Variability Buffering

    Variability in a production system will be buffered by some combination of inventory, capacity, or time.

    Sources: “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., P309
  • Lead Time

    The lead time of a given routing or line is the time allotted for production of a part on that routing or line. 
Unlike cycle time, which varies based on the level of utilization level; lead time is a management decision that promises to fulfill a customer order. Using Service Level, the percentage of time the orders were filled within the lead time can be measured.

    Sources: “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., 2011, p 230


  • Line of Balance


    The "Line of Balance" (LOB) is a graphic device that enables a manager to see at a single glance which of many activities comprising a complex operation are "in balance" - i.e., whether those which should have been completed at the time of the review actually are completed and whether any activities scheduled for future completion are lagging behind schedule. History: LOB was devised by the members of a group headed by George E. Fouch. During 1941, the Goodyear Tire & Rubber Company monitored production with LOB. It was successfully applied to the production planning and scheduling of the huge Navy mobilization program of World War ll. LOB proved to be a valuable tool for expediting production visibility during the Korean hostilities. During this period, defense suppliers used LOB http://www.valuation-opinions.com/ev/lob.lasso.

    Sources: Line of Balance Technology: A graphic method of industrial programming, US Department of Navy, April 1962
  • Little’s Law

    Little's Law defines the relationship between system throughput (TH), cycle time (CT), and work-in-process (WIP). TH = WIP/CT.

    Sources: Factory Physics, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., p 698, Queues, Inventories and Maintenance: The Analysis of Operational Systems with Variable Demand and Supply, P. M. Morse, Dover, 2004, p 22, A Proof for the Queuing Formula: L = lW, J. D. C. Little, Operations Research, Volume 9, Issue 3, pp 383-387, Little’s Law as viewed on its 50th Anniversary, J. D. C. Little, Operations Research, Volume 59, Issue 3, pp 536-549
  • Made to Order (MTO)

    A product or item that has been designed but is made (physically realized) only at the time when a customer orders it.

    Sources: “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., P230, “Operations and Supply Chain Management: The Core”, Third Edition, F. Robert Jacobs and Richard B. Chase, McGraw Hill Irwin, p 276


  • Made to Stock (MTS)

    A product that is made based on a forecast of customer demand and then stored in inventory (finished goods) until a customer specifically orders it.

    Sources: “Operations Management: Focusing on Quality and Competitiveness”, 2nd edition, Roberta S. Russell and Bernard W. Taylor III, 1995, pp 43-44, “Operations and Supply Chain Management: The Core”, Third Edition, F. Robert Jacobs and Richard B. Chase, McGraw Hill Irwin, p 276, “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., P230
  • Matching Problem

    The challenge encountered in avoiding incorrect assembly when combining unique products with other unique products in an assembly operation.

    Sources: “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr Inc., p328


  • Merge Bias


    Refers to the likelihood of a successor starting given the probabilities of a set of parallel predecessor activities completing. All the path probabilities of the predecessors must be combined to describe the likelihood of the successor starting – typically smaller than one might intuitively believe.

    Sources: Integrated Cost and Schedule Control in Project Management, Urusla Kuehn, pp. 172-173


  • Milestone

    A significant point in time or event on the master plan or schedule of a project that defines the end or beginning of a phase or a contractually required event.
 Typically, milestones represent completion of a certain portion of project scope as measured by the achievement of predefined criteria.

    Sources: P2SL Glossary p 38

. “Guide to the Project Management Body of Knowledge”, 4th Edition, Project Management Institute, p 136
  • Milk-Run System


    Refers to automotive industry practice of picking up small quantities of supplies from vendors throughout the day (“milk run”) to ensure that the inventory stayed below a present level. Frequent restocking to limits the maximum WIP in the system.

    Sources: International Business, A. Aswathappa, p55

, “Milk Run Logistics: Literature Review and Directions”, G. S. Brar and G. Saini, Proceedings of the World Congress on Engineering, 2011, Vol I, WCE 2011, July 6-8, 2011, London UK
  • Min / Max Inventory


    Reordering method for inventory management where the min value triggers reordering according to an economic order quantity and max value.

    Sources: Factory Physics, Third Edition, W. J. Hopp and M. L. Spearman, Chapter 2: Inventory Control


  • Modeling – Production System

    A mathematical model of a production system is a description of the system using mathematical concepts - equations, graphs, process maps. The model provides an abstraction that reduces the system to its essential characteristics. Using mathematical tools such as linear programming and queuing theory, the mathematical model representation can help explain the behavior of the system. For example, models can explain how different components of the system interact with each other. They can also make predictions about future behavior of the system, such as maximum throughput achievable, where bottlenecks to performance are located, and how much inventory is built up as the system operates.

    Sources: PPI
  • Modularization


    Modularization refers to the use of offsite construction (including a segregated area onsite). Modularization includes all work that represents substantial offsite construction and assembly of components and areas of the finished project.

    Sources: Construction Industry Institute SD-25 – Constructability Improvement Using Prefabrication, Preassembly, and Modularization -- Tatum, Vanegas, Williams, https://kb.construction-institute.org/Knowledge-Areas/Modularization


  • Move Time

    The time jobs in a production system spend being moved from one station in the production system to the next station.

    Sources: “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., P327
  • Offsite Assembly


    Assembly of raw materials and fabricated parts performed in a location other than the point of final installation.

    Sources: PPI
  • Operation

    In the context of production system, refers to the activities performed by an individual workstation within the system. Operations are usually a series of individual tasks.

    Sources: “Supply Chain Science”, First Edition, Wallace J. Hopp, 2008, Waveland Pr. Inc., p 2
  • Operations Management

    Also known as Production Management
. The control of activities involved in producing goods and providing services – processes and supply chains - and the study of the best ways to do this.
 Operations Management is a science that emerged from the modern manufacturing industry and focuses on modeling and controlling actual work processes. When associated with manufacturing it was known as Production Management. As it become recognized that the theory and methods were also applicable to planning and execution of services, the discipline became known as Operations and/or Production management. The practice is based upon defining and controlling production systems, which typically consist of a series of inputs, transformational activities, inventory, and outputs. 
In the last 50 years, project management (conventional project management as defined by the Project Management Institute) and operations management have been viewed as distinct disciplines. Project Production Management applies operations management to the control of projects, as PPI’s working papers demonstrate.

    Sources: Schmenner, R. W. (1993), Production/operations management: from the inside out. Macmillan College, Production and Operations Management, 6th Edition, A. Muhlemann, J. Okland and K. Lockyer, Pitman, London, 1992, Operations Management, R. A. Johnson, W. T. Newell and R. C. Vergin, Houghton Mifflin, 1972, “Contrasting Project Controls with Project Production Control”, PPI technical report, Jan 2015
  • Operations Research (OR)

    The application of mathematical (quantitative) techniques to the scientific study and analysis of complex systems and optimization problems of organization and coordination of activities in business operations and decision making.

    Historically the discipline emerged as the confluence of several different threads of scientific application. Charles Babbage conducted research into the cost of transportation and sorting of mail which were applied in the UK’s first postal system. To understand the best choice of railway gauge, he conducted studies into dynamical behavior of railway vehicles on a railway network. Military planners during World War 1 were concerned with the scientific planning and organization of logistics of supplies for troops (convoy theory and Lanchester’s laws). The field expanded with the Second World War conferring several problems for US and UK military planners resulting in the development (among other things) of linear and dynamic programming techniques, and other mathematical tools. Since then, the field has found application in many areas in transportation, finance, logistics and government.

    Sources: Introduction to Operations Research, F. S. Hillier and G. J. Lieberman, Eight Edition, McGraw- Hill, p3., Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.2
  • Operations Science

    The study of the transformation of resources to create and distribute goods and services. 

  • Operations Sciences

    Synonymous with operations research.

  • Part


    Generic term used in manufacturing for a basic item forming part of the whole of a more complex product.
 The hierarchy for the terminology is as follows: parts are elements or units in a component. Components are elements or units in either subassemblies or assemblies. Assemblies form a product or system.

    Sources: Production & Operations Management: Manufacturing and Services, R. B. Chase, N. J. Aquilano and F. R. Jacobs, Eight Edition, pp 101-102, pp 626-628


  • PDSA

    Plan-Do-Study-Act Cycle of Continual Improvement. (Also known as the Deming Cycle.)
The cycle of scientific experimentation used in pursuit of continuous improvement
. First introduced by W. A. Shewhart in “Statistical method from the viewpoint of Quality Control” in 1939, originally introduced as a linear sequence of 3 steps and subsequently evolved into the 4-step cycle by Shewhart.
Shewhart was one of Deming’s mentors, and introduced him to the cycle.  Deming built on Shewhart’s concept emphasizing the interactions between the four steps and popularizing the cycle in the area of Total Quality Management.

    Sources: W. A. Shewhart 1980, “Economic Control of Quality of Manufactured Products/ 50th Anniversary Commemorative Issue. American Society for Quality

  • Percent Plan Complete PPC

    Metric used in Last Planner System to gauge reliability. The number of actual completions divided by the number of planned completions in a given time period, based on a binary assessment on whether a task is 100% complete.

    Sources: P2SL Glossary p44


  • Performance Indicator

    A quantitative or qualitative measurement, or any other criterion, by which the performance, efficiency, achievement, etc. of a person or organization can be assessed, often by comparison with an agreed standard or target.

    Sources: Collins English Dictionary


  • Policy

    A set of ideas, course or principles of action adopted by or proposed for a system or organization. In a production system, policies may be rules related to setting inventory levels, service levels, and other means on imposing constraints on processes and other aspects of a production system.

    Sources: PPI
  • Preassembly


    In manufacturing, preassembly refers to the prior fabrication and assembly of elements of a product in a separate location before assembling the final product on the production line.

    In construction, preassemblies are sections of a facility that are assembled remotely from their final position and transported to the site as a unit.

    Sources: CII SD-25 – Constructability Improvement Using Prefabrication, Preassembly, and Modularization -- Tatum, Vanegas, Williams


  • Process

    A series of actions or events performed to make something or achieve a particular result.
 In the context of production system, an individual process refers to a sequence of operations, each operation comprising a series of steps or tasks.

    Within the context of a project, process refers to a stream of sequential work activities. So, for example, in an oil & gas drilling project, it might refer to the sequence of moving a drilling rig, setting up the drill pipe, drilling the hole, pulling out and disassembling the pipe, and moving the rig to the next location.

    Sources: “Supply Chain Science”, First Edition, Wallace J. Hopp, 2008, Waveland Pr. Inc., p 2
  • Process – Business


    A process that focuses on administrative work.
 For PPM it means administrative work associated with production processes, such as negotiating and executing contracts with suppliers, feeding accounting data to the finance function, and managing human resources.

    Sources: PPI
  • Process Flow Diagram


    A method of graphically representing a process using symbols to describe aspects of a process and illustrate its behavior. For instance, in one convention for process flow diagrams, rectangles represent processes or operations, triangles as inventories or stocks and lines with arrows as flows of materials, work-in-process or information
.

    Sources: PPI
  • Process Map


    A graphical flowchart identifying the operations in a process, steps in each operation and work time for each step.

    Sources: PPI
  • Process Time


    The time a job spends at an individual station in a production system from the time the station begins working on it, till the time the station finishes.

    Sources: Factory Physics, Third Edition, W. J. Hopp and M. L. Spearman,Waveland Pr. Inc., p327


  • Procurement

    Procurement involves the process of sourcing and evaluating suppliers, selecting vendors, establishing payment terms, strategic vetting, selection, the negotiation of contracts and actual purchasing of goods.
  Procurement refers to the process of accessing goods and services necessary for a production system to operate.
 Supply chain refers to the infrastructure (internal or external companies) over which the Procurement process operates.

    Sources: “Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice”, A. J. Weele, Fourth Edition, Thomson Publishing
  • Product – Process Matrix

    A graphical method to illustrate the interaction between the characteristics of products being produced by a production system and the processes used to produce those products.

    Sources: “Link Manufacturing Process and Product Lifecycles’, R. H. Hayes and S. C. Wheelwright, Harvard Business Review, January, 1979


  • Product Structure Tree

    In manufacturing the product structure tree provides a hierarchical classification of the items which form a product. With the product structure, the understanding of the components which compose a product as well as their attributes, can be represented. The product structure shows the material, component parts subassemblies and other items in a hierarchical structure that represents the grouping of items on an assembly drawing or the grouping of items that come together at a stage in the manufacturing process.

    Sources: Production & Operations Management: Manufacturing and Services, R. B. Chase, N. J. Aquilano and F. R. Jacobs, Eight Edition, pp 101-102, pp 626-628
  • Production


    The act of transforming or changing the shape, composition or combination of materials, parts, subassemblies or information in a production system to increase their value.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.2


  • Production Control


    Policies, protocols and mechanisms to control transformational processes, the use of resources and variability.

    Sources: PPI
  • Production Control Solution


    An integrated configuration of sensor measurements, business processes, rules and performance indicators to enable effective control based on desired objectives.

    Sources: PPI
  • Production Control Solution Design

    Selection, configuration and integration of business processes, rules and performance indicators to effectively control production in accord with objectives.

    Sources: PPI
  • Production Control System


    Software application that automates and enables scalable and sustainable implementation of the production control solution.

    Sources: PPI
  • Production System


    Any of the methods used in industry to create goods and services from various resources.

    Sources: Encyclopedia Britannica


  • Production System Definition

    The purpose, objectives and constraints upon which the production system design is based
.

    Sources: PPI
  • Production System Definition Process

    Setting forth business purpose and objectives for the project, establishing project objectives and identification of constraints upon which the production system design is based.

    Sources: PPI
  • Production System Design

    Engineering of processes, selection of resources and designation of controls to effectively transform inputs into outputs in accord with desired objectives.

    Sources: PPI
  • Production System Design Process

    Production system design is done by mapping, analyzing and modeling processes, resources and controls in accord with objectives.

    Sources: PPI
  • Program Evaluation and Review Technique (PERT)

    Planning technique developed in the late 1950s to determine the duration of projects with highly uncertain activity durations.

    Sources: B. Ralph Stauber, H. M. Douty, Willard Fazar, Richard H. Jordan, William Weinfeld and Allen D. Manvel. Federal Statistical Activities. The American Statistician 13(2): 9-12 Malcolm, D. G., J. H. Roseboom, C. E. Clark, W. Fazar Application of a Technique for Research and Development Program Evaluation OPERATIONS RESEARCH Vol. 7, No. 5, September–October 1959, pp. 646–669


  • Project

    A temporary endeavor undertaken to create a unique product, service, or result.
 A project is temporary in that it has a defined beginning and end in time, and therefore defined scope and resources.
And a project is unique in that it is not a routine operation, but a specific set of operations designed to accomplish a singular goal. So, a project team often includes people who don’t usually work together – sometimes from different organizations and across multiple geographies.
 The development of software for an improved business process, the construction of a building or bridge, the relief effort after a natural disaster, the expansion of sales into a new geographic market — all are projects. And all must be expertly managed to deliver the on-time, on-budget results, learning and integration that organizations need.
 Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

    Sources: Guide to Project Management Body of Knowledge, Fourth Edition, Project Management Institute, p 442., https://www.pmi.org/about/learn-about-pmi/what-is-project-management


  • Project Controls

    The data gathering, management and analytical processes used to predict, understand and constructively influence the time and cost outcomes of a project or program; through the communication of information in formats that assist effective management and decision making.

    Sources: Guide to the Project Management Body of Knowledge, Fourth Edition, pp 60-64, Project Management Institute, “Project controls: how much is enough?”, G. E. Heywood, G.E. Project Management Institute, PM Network, vol. 10, no. 11, Nov 1996


  • Project Delivery Process



    Project Management
. The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

    Sources: Guide to the Project Management Body of Knowledge, Fourth Edition, p 443, Project Management Institute., https://www.pmi.org/about/learn-about-pmi/what-is-project-management


  • Project Production Management

    The application of the scientific techniques in operations research, queueing theory and industrial engineering to the optimization and execution of projects. In short, as Factory Physics formed a scientific framework for manufacturing management, PPM is the application of the same Factory Physics principles to the execution of projects.

    Sources: PPI
  • Project Production System

    The collection of production systems comprising the interconnected network of processes and operations that represent all the work activities to execute a project from start to finish.

    Sources: PPI
  • Pull (Control Protocol)


    Pull systems are those where the start of one job is triggered by the completion of another. Downstream activities signal when they are ready to receive the output from preceding processes. One example is a manufacture to order system.
 A pull system establishes a prior limit on the work in process in a production system.

    Sources: Hopp and Spearman 1990 and MW Factory Physics, W. J. Hopp and M. L. Spearman, 3rd Edition, p 358
  • Purchasing

    Refers to the transaction of buying goods and services as a result of the procurement decisions. 
Purchasing is a subset of Procurement.

    Sources: “Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice”, A. J. Weele, Fourth Edition, Thomson Publishing


  • Push (Control Protocol)

    Push systems are those where production jobs are scheduled. Typically control of process does not take into account the state of downstream inventories or requirements. One example is a manufacture to stock system.

    Sources: Factory Physics, Third Edition, W. J. Hopp and M. L. Spearman,Waveland Pr. Inc., p327
  • Push versus Pull


    Push systems are those where production jobs are scheduled. Pull systems are those where the start of one job is triggered by the completion of another.
 Pull Systems establish a limit on work in process whereas Push Systems do not.

    Sources: Factory Physics, Third Edition, W. J. Hopp and M. L. Spearman,Waveland Pr. Inc., p327


  • Queue


    A set of objects, tasks, or other things waiting for something, typically an action to be processed in a production system
.

    Sources: Queues, Inventories and Maintenance: The Analysis of Operational Systems with Variable Demand and Supply, P. M. Morse, Dover 2014, p. 14


  • Queue Time

    Queue Time is the time that parts or tasks spend waiting for processing at a station or to be moved to the next station.

    Sources: "Factory Physics", W. J. Hopp and M. L. Spearman, Third Edition, 2011, Waveland Pr. Inc., p 326
  • Queuing Theory

    Queuing theory is the mathematical study of waiting lines, or queues. In queuing theory, a probabilistic model of arrival times (of tasks, objects for work to be performed) and waiting times (waiting time in the queue before work starts) is constructed so that queue lengths and waiting time can be predicted.

    Sources: “Fundamentals of Queuing Theory”, D. Gross and J. F. Shortle., Queues, Inventories and Maintenance: The Analysis of Operational Systems with Variable Demand and Supply, P. M. Morse, Dover 2014, p. 2


  • Raw Process Time


    The sum of the mean effective process times of the stations in a line.

    Sources: Factory Physics, Third Edition, W. J. Hopp and M. L. Spearman, Waveland Pr. Inc.,
  • Reliability


    The characteristic of an item expressed by the probability that it will perform a required function under stated conditions for a stated period of time.

    Sources: An Elementary Guide to Reliability, G. W. A Dummer, M. H. Tooley, R. C. Winton, 5th Edition, Butterworth-Hintion


  • Resource

    Production systems at their most abstract level are transformation processes, which use resources, also known by economists as “factors of production”, to produce useful goods and services. Examples of factors of production or resources are labor, capital, machinery and equipment, land and buildings, raw materials and knowledge (of methods and information). A characteristic of all these examples of resources is that they are generally “scarce” or limited – the production system does not have access to arbitrarily large quantities of a given factor of production. It may be that different amounts of resources have to be traded off against each other in maximizing output of the production system.

    A production system may be further characterized by flows (channels of movement) in the process: both the physical flow of materials, work in the intermediate stages of manufacture (work in process), and finished goods; and the flow of information that accompanies the physical flow. The term “flow” is used because at the most granular level, a production process typically consists of a sequence of tasks or operations to be performed in which different types of resources are combined, taking the work-in-process as an input to the current task/operation from the prior task/operation, transforming into an output, advancing the work-in-process so that it becomes the input to a subsequent task or operation. In this way, the production system uses resources to transform inputs into outputs, which ultimately are goods or services.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, PPI
  • Resources – Buffer

    Use of capacity, inventory or time by design or resulting from variability beyond what would be needed if a production system was operating at perfect state.

    Sources: PPI
  • Resources – Capacity


    Resources cannot be accessed in arbitrarily large quantities in a production system – there are inevitable constraints that place limits on the maximum quantity in which a resource may be deployed at a given stage in a production process. For instance, there may be a limitation on the number of personnel who can safely work at a workstation in a production system, or a machine has a natural maximum limit of items it can process within a certain time interval.

    The resource capacity at a particular point in production system process is the maximum available quantity of the resource for which the production system throughput is maximized, all other factors of production being the same.

    Sources: PPI, Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, Supply Chain Science, First Edition, Wallace J. Hopp, 2008, Waveland Pr. Inc., p 18
  • Routing

    In a production system, work to transform inputs into finished outputs may take place in different parallel paths simultaneously, as different aspects of a finished work product or service are worked on simultaneously.  An individual path is referred to as a routing.
 The sequence of processes, operations, transportations and machines, equipment, tools, workstations  and miscellaneous information that a particular part, batch or work-in-process item follow in a production system.

    Sources: Supply Chain Science, Wallace. J. Hopp, 2008, Waveland Pr. Inc., p10, Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.18


  • Rule

    An accepted principle or instruction that states the way things are or should be done and tells you what you are allowed or are not allowed to do (Cambridge Dictionary).

    Sources: PPI
  • Service Level


    A performance metric measuring the extent to which demand (orders) are satisfied by a station in a production system or by the system as a whole.
 In make-to-order systems, service level is measured as the fraction of jobs for which cycle time is less than or equal to lead time. In make-to-stock systems, service level is measured as the fill rate, or fraction of demands that are filled from stock.

    Sources: Factory Physics, W. J. Hopp and M. L. Spearman, Third Edition, Waveland Pr Inc., pp 73-74
  • Set Up Time

    A Set Up process corresponds to the time required to go from the end of the last good part from one batch to when the first good part of the following batch is produced. With this definition, the trials needed to obtain the first good work product are considered part of the setup process and therefore, must be studied, analyzed and improved.

    Sources: Shigeo Shingo, A Revolution in Manufacturing: The SMED System. Portland: Productivity Press Inc, 1985
  • Shewhart Cycle

    Another name of the PDCA (see PDSA) in honor of W. Edwards Deming (1900-1993) and based on the work of Walter A. Shewhart (1891-1967)
First introduced by W. A. Shewhart in “Statistical method from the viewpoint of Quality Control” in 1939, originally introduced as a linear sequence of 3 steps and subsequently evolved into the 4-step cycle by Shewhart.
 Shewhart was one of Deming’s mentors, and introduced him to the cycle. Deming built on Shewhart’s concept emphasizing the interactions between the four steps and popularizing the cycle in the area of Total Quality Management.

    Sources: W. A. Shewhart 1980, “Economic Control of Quality of Manufactured Products/ 50th Anniversary Commemorative Issue. American Society for Quality
  • Six Sigma (Continuous Improvement)


    A family of methods for creating radically better products and processes originally branded and developed by Motorola – the primary focus being the measurement and reduction of defects in product and service quality.

    Sources: Factory Physics, W. J. Hopp and M. L. Spearman, Third Edition, Waveland Pr. Inc., pp 171-172


  • SMED
 Single Minute Exchange of Die

    Refers to the methodology developed by Shigeo Shingo in the 1950s to reduce Set Up Time in manufacturing processes. Shingo’s basic insight was that a Set Up process could be decomposed into:
 External Set Up tasks – those tasks that could be performed while the previous batch was still being worked on
 Internal Set Up tasks – those tasks that could be performed only after the previous batch had been completed and before the current batch could start.
 He identified ways in which to reduce overall Set Up time by converting where Internal Set Up tasks into External Set Up tasks where possible, through a 4-step analysis:

    • An examination of the current Set Up
    • Separating Internal and External Set Up
    • Converting Internal Set Up to External Set Up
    • Streamlining all aspects of the adjusted process
    Sources: Shigeo Shingo, A Revolution in Manufacturing: The SMED System. Portland: Productivity Press Inc, 1985
  • Spectrum of Manufacturing Processes


    Manufacturing processes are categorized along a spectrum from Project at one end (unique or one-off event) to Continuous Flow at the other end. Job Shop, Batch Flow, and Line Flow are processes that fall along the spectrum.

    Sources: “Link Manufacturing Process and Product Lifecycles’, R. H. Hayes and S. C. Wheelwright, Harvard Business Review, January, 1979
  • Spectrum of Product Characteristics


    Product types are categorized along a spectrum according to their lifecycle characteristics ranging from great variety in startup form to standardized commodity at the other extreme. In between, a product might have the form of a number of basic models with a variety of options through to a few models with basic options.

    Sources: “Link Manufacturing Process and Product Lifecycles’, R. H. Hayes and S. C. Wheelwright, Harvard Business Review, January, 1979
  • Station


    In a production system, an individual step where inputs have some work task(s) performed upon them and the resulting outputs flow through another part of the production s is referred to as a station.

    Sources: “Supply Chain Science”, First Edition, Wallace J. Hopp, 2008, Waveland Pr. Inc., p 3
  • Station Cycle Time Formula


    The Station Cycle time formula states that the average cycle time at a station in a production system includes actual Processing Time (PT), as well as Move Time (MT), Setup Time (ST), Queuing Time (QT), Batch Time (BT) (CT=PT + MT + QT + ST + BT) Cycle time for an end-to-end process is CT = PT + MT + SDT + BT + QT where SDT represents the shift differential time.

    Sources: Factory Physics, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., p 327
  • Statistical Process Control (SPC)


    The (continuous) monitoring of processes with respect to mean and variability of performance to determine when problems occur or when the process has gone out of control.

    Sources: Factory Physics, W. J. Hopp and M. L. Spearman, Third Edition, Waveland Pr. Inc., p 404


  • Stock

    Stock is a synonym for inventory or work-in-process. It is material or resources waiting at a point in production system for some activity to be performed on it to continue the process of transforming production system inputs into production system outputs.

    Sources: “Factory Physics”, W. J. Hopp and M. L. Spearman, Third Edition, Waveland Pr. Inc., p203
  • Subassembly

    Two or more parts joined together to form a unit that is only part of a complete machine, structure, or other article being manufactured in a production system.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.20


  • Supply Chain

    A supply chain is a goal-oriented network of processes and stock points used to deliver goods and services to customers.

    Sources: “Supply Chain Science”, First Edition, Wallace J. Hopp, 2008, Waveland Pr. Inc., p 1
  • Supply Chain Management

    The management and control of all activities of getting inputs to a production system.

    Sources: “Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice”, A. J. Weele, Fourth Edition, Thomson Publishing


  • Supply Flow


    All processes necessary to engineer, fabricate, assemble, transport, install and commission a specific system.

    Sources: PPI
  • System

    The word system is derived from the ancient Greek sustema and thence the Latin systema. Thus, it has two distinct sets of meanings, from which numerous specializations exist:

    1. A set of interconnected things or parts working together to form a complex whole e.g. a manufacturing assembly line consists of a series of manufacturing stations working together in an interconnected network
    2. A set of principles or procedures according to which something is done; an organized scheme or method e.g. the metric system, a set of rules in measurement or classification

    For the purposes of this glossary, we adopt definition (1) for use in phrases like “Production System” or “Project Production System” – a set of interconnected processes working together to form a complex whole.

    Sources: PPI, F. Harary and M. F. Batell “What is a System”, Social Networks, Vol. 3, 1981, pp. 29 – 40.
  • Task


    Within the context of a production step, the smallest basic step or unit of activity that takes place within the system in the production of goods and services.

    Sources: PPI
  • Task Interdependence


    Work tasks can be generally classified as Pooled (completely independent), Sequential (one follows after another), or Reciprocal (mutually interdependent).

    Sources: PPI
  • Throughput (TH)


    Measured as the average output of a production process (machine, station, line, plant) per unit time. Throughput is related to Cycle Time (CT) and Work in Process (WIP) by Little's Law.

    Sources: Factory Physics, W. J. Hopp and M. L. Spearman, Third Edition, Waveland Pr. Inc., p209, 229


  • Time – Batch

    See batch time.

  • Time – Lead


    The total amount of time from point of order to delivery (order fulfillment time).

    Sources: Factory Physics, W. J. Hopp and M. L. Spearman, Third Edition, Waveland Pr. Inc., p 230


  • Time – Move

    See move time.

  • Time – Process


    See process time.

  • Time – Queue


    See queue time.

  • Time – Set-up


    See Set up time.

  • Time – TAKT

    Interval of time between outputs
    
Allowable time for production divided by required number of units that need to be produced (e.g. 200 days / 1,000 spools = .2 days per spool).

    Sources: Factory Physics, W. J. Hopp and M. L. Spearman, Third Edition, Waveland Pr. Inc., p495, P2SL Glossary p 59


  • Utilization

    Utilization is a measure of the fraction of time that a station in a production system is not idle. 
Utilization = rate at which the station accepts inputs divided by the capacity of the station.

    Sources: Supply Chain Science, Wallace J. Hopp, 2008, Waveland Pr. Inc., p 11


  • Value Chain



    A value chain is a set of activities that an organization carries out to create value for its customers. The idea of the value chain is based on the process view of organizations, the idea of seeing a manufacturing (or service) organization as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources - money, labor, materials, equipment, buildings, land, administration and management.

    Sources: Porter, Michael E., "Competitive Advantage". 1985, Ch. 1, pp 11-15. The Free Press. New York, Rowe, Mason, Dickel, Mann, Mockler; "Strategic Management: a methodological approach". 4th Edition, 1994. Addison-Wesley. Reading Mass
  • Value Stream


    All the actions, both value-added and non-value-added, currently required to bring a product through the main flows essential to every product or output of a production system (1) the production flow from raw input to the customer and (2) the design flow from concept to launch.
 It is therefore a view of a production system showing increase in value to customer as inputs are progressively transformed to outputs.

    Sources: Maynard’s Industrial Engineering Handbook, Fifth Edition, Kjell B. Zandin (ed.), McGraw-Hill 2001, p G.22, “Factory Physics”, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., pp 188-189


  • Value stream Mapping

    A value stream map is the graphical representation of all the actions (both value added, and non-value added) currently required to bring a product through the main flows essential to every product: (1) the production flow from raw material into the arms of the customer, and (2) the design flow from concept to launch.

    Sources: Learning to See: Value Stream Mapping to Add Value and Eliminate MUDA Spiral-bound – June 1, 1999 by Mike Rother (Author), John Shook (Author), Jim Womack (Foreword), Dan Jones (Foreword) ISBN-13: 978-0966784305 ISBN-10: 0966784308


  • Variability

    In the context of Project Production Management, variability refers to the non-uniformity or variation, perhaps through statistical randomness or otherwise, in operating parameters that occur in the course of executing the work activities in a project. For example, the cycle time to complete a given task in general is variable. The availability of equipment (capacity) at a given time is typically variable. The arrival times of raw materials for processing are variable. Examples of key operating parameters that can be affected by variability are capacity, inventory, cycle times, arrival times, completion times.

    Sources: PPI, Factory Physics, W. J. Hopp and M. L. Spearman, Third Edition, Waveland Pr. Inc., p265
  • Variability – Beneficial


    A change in operating parameters that improves overall project performance. For example, the unexpected arrival time of raw materials earlier than expected, can in the right circumstances, lead to an earlier than planned completion time for the project. Other examples of beneficial variability are the introduction of new technology or processes that improve overall project performance e.g., new technology or process design. that allows one to plan for less inventory (and thus less cost) than originally envisaged.

    Sources: PPI
  • Variability – Detrimental


    A change in operating parameters that worsens overall project performance. For example, rework due to quality issues increases costs and extends completion time. Other examples of detrimental variability are bad weather than causes work to be delayed or rescheduled, also potentially adding costs and extending completion times.

    Sources: PPI
  • VUT Equation

    See Kingman's Equation.

  • Work in Process (WIP)


    The total inventory between the start and end point of a process. Also refers to the inventory between intermediate steps. WIP is related to Cycle Time (CT) and Throughput (TH) by Little’s Law.

    Sources: Factory Physics, Third Edition, Wallace J. Hopp and Mark L. Spearman, Waveland Pr. Inc., p 230