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E EAP Abbreviation for employee assistance program. Earliest due date (EDD) A priority rule that sequences the jobs in a queue according to their (operation or job) due...


F Fabrication Manufacturing operations for making components, as opposed to assembly operations. Fabrication Level The lowest production level. The only components at this level are parts (as opposed...


G GAAP Acronym for generally accepted accounting principles. Gain sharing A method of incentive compensation where employees share collectively in savings from productivity improvements. Syn: gain sharing plans. Gain...


H Handling cost The cost involved in the movement of material. In some cases, the handling cost depends on the size of the inventory. Hard automation Use of...


I Idle capacity The capacity generally not used in a system of linked resources. From a theory of constraints perspective, idle capacity consists of protective capacity...


J Jidoka The Japanese term for the practice of stopping the production line when a defect occurs. Jig A device that holds a piece of work in a...


K Kaizen The Japanese term for improvement; continuing improvement involving everyone—managers and workers. In manufacturing, kaizen relates to finding and eliminating waste in machinery, labor, or...


L Laboratory order Syn: experimental order. Labor claim A factory worker’s report listing the jobs the employee has worked on, the number of pieces, the number of hours,...

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What is Sales & Operations Planning?

Sales & Operations Planning: All demand (sales) and supply (capacity, materials) of a product is balanced and planned to secure on-time delivery...

6 Tips for Maximizing Efficiency and Productivity of Warehouse Operations

As a warehouse manager, you would understand that handling warehouse operations are a massive task. One small mistake may affect the efficiency and productivity of the warehouse. You must continually implement measures to optimize various warehouse processes and improve the overall effectiveness of the operations involved. Apart from minimizing downtime and increasing productivity, it is essential to improve your supply chain. Let us look at a few tips that help in achieving the same.

Robot Trucks or Autonomous Vehicles Will Revolutionize the Supply Chain

Most supply chain professionals do not completely understand the disruption and upgrades that autonomous vehicles, specifically what I call robot trucks, will create. Most cannot get past the pitfalls and possible barriers to robot trucks. I define robot trucks with a much broader perspective. I include trucks of all sizes and even internal plant material handling equipment like fork-lifts and automatic guided vehicles (AVGs). The biggest leap is that robot trucks will learn! Many doubters just cannot get past this. Although not complete artificial intelligence (AI), robot trucks will adapt on their own, to conditions and circumstances, and build an open memory of what to do.

Transform Your Supply Chain For Omnichannel

The world is in the early stages of a global supply chain revolution. The Amazon Effect. The Internet of Things. Platform Businesses. The new supply chain will grow beyond omnichannel. It will cross into other industries and markets and will incorporate supply chains of products, information, and finance. All the elements of the New Supply Chain tie together. They are not separate steps. They are not to be selectively chosen or excluded. These are inter-related. The New Supply Chain brings performance excellence.

The 4 Supply Chain Metrics

Metrics are a way to measure performance; and, in turn, communicate that information to key executives in the company.  Their value is how supply chain management is supporting the direction and strategy of the business.  It is important that they present a strategic and tactical understanding of what is happening and how well it is happening. KPIs (key performance indicators) must be measurable.  As a result, numerous metrics are about the logistics components.  Some of these are good.  However, they do not present a view of the total supply chain.  Plus, many have little or no usefulness for the C-suite.   Assessing logistics parts is a node-link approach and does not recognize the supply chain process.