SUPPLY CHAIN MINDED

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Zero-based budgeting
A budget procedure used primarily by governmental agencies, in which managers are required to justify each budgetary expenditure anew, as if the budget were being initiated for the first time rather than being based on an adjustment of prior-year data.

Zero defects
A performance standard developed by Philip B. Crosby to address a dual attitude in the workplace: people are willing to accept imperfection in some areas, while in other areas, they expect the number of defects to be zero. This dual attitude has developed as a result of the conditioning that people are human and humans make mistakes. However, the zero-defects methodology states that if people commit themselves to watching details and avoiding errors, they can move closer to the goal of zero defects. The performance standard that must be set is “zero defects,” not “close enough.”

Zero inventories
Syn: Just-in-Time.

Zone
1) A warehouse location methodology that includes some of the characteristics of fixed and random location methods. Zone locations hold certain kinds of items, depending on physical characteristics or frequency of use. 2) The specific warehouse location assigned to an order picker. In picking items for an order, the stock picker gets only the items for each order that are within his/her zone. The picker then fills the next order for items from his/her zone.

Zone picking
A method of subdividing a picking list by areas within a storeroom for more efficient and rapid order picking. A zone-picked order must be grouped to a single location before delivery or must be delivered to different locations, such as work centers. See: batch picking, discrete order picking, order picking

 

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