Blocking | The activities in the stage must stop because there is no place to deposit the item just completed.
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Bottleneck | A resource that limits the capacity or maximum output of the process.
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Buffering | A storage area between stages where the output of a stage is placed prior to being used in a downstream stage.
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Cycle time | The average time between completions of successive units in a process (this is the definition used in this book).
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Days-of-supply | The number of days of inventory of an item.
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Efficiency | A ratio of the actual output of a process relative to some standard.
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Flow time | The average time that it takes a unit to move through an entire process.
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Hybrid | Combines the features of both make-to-order and make-to-stock.
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Inventory turn | The cost of goods sold divided by the total average value of inventory.
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Job design | Specification of the work activities of an individual or group.
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Job enrichment | Specialized work is made more interesting by giving the worker a greater variety of tasks.
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Little’s law | States a mathematical relationship between throughput rate, flow time, and the amount of work-in-process inventory
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Make-to-order | A process that is activated only in response to an actual order.
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Make-to-stock | A process that produces standard products that are stored in finished goods inventory.
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Operation time | The sum of the setup time and run time for a batch of parts that are run on a machine.
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Pacing | Movement of items through a process is coordinated through a timing mechanism.
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Process | Any set of activities performed by an organization that takes inputs and transforms them into outputs ideally of greater value to the organization than the original inputs.
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Process velocity (throughput ratio) | The ratio of the value-added time to the flow time.
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Productivity | The ratio of output to input.
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Run time | The time required to produce a batch of parts.
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Setup time | The time required to prepare a machine to make a particular item.
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Specialization of labor | Simple, repetitive jobs are assigned to each worker.
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Starving | The activities in a stage must stop because there is no work.
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Throughput rate | The output rate that the process is expected to produce over a period of time.
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Total average value of inventory | The total average investment in raw material, work-in-process, and finished goods inventory.
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Utilization | The ratio of the time that a resource is actually activated relative to the time that it is available for use.
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Value-added time | The time in which useful work is actually being done on the unit.
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Work measurement | Setting time standards for a job.
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