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Supply Chain and Logistics Terms and Glossary

14 Points: W. Edwards Deming's 14 management practices to help companies increase their quality and productivity:

 

1. create constancy of purpose for improving products and services,

2. adopt the new philosophy,

3. cease dependence on inspection to achieve quality,

4. end the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier,

5. improve constantly and forever every process for planning, production and service,

6. institute training on the job,

7. adopt and institute leadership,

8. drive out fear,

9. break down barriers between staff areas,

10. eliminate slogans, exhortations and targets for the workforce,

11. eliminate numerical quotas for the workforce and numerical goals for management,

12. remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system,

13. institute a vigorous program of education and self-improvement for everyone and

14. put everybody in the company to work to accomplish the transformation.

 

24-hour Manifest Rule (24-hour Rule): U.S. Customs rule requiring carriers to submit a cargo declaration 24 hours before cargo is laden aboard a vessel at a foreign port.

 

24/7: Referring to operations that are conducted 24 hours a day, 7 days a week

 

24/7/365: Referring to operations that are conducted 24 hours a day, 7 days a week, 365 days per year, with no breaks for holidays, etc

 

3D Loading: 3D loading is a method of space optimizing designed to help quickly and easily plan the best com­pact arrangement of any 3D rectang­ular object set (boxes) within one or more larger rectangular enclosures (containers). It’s based on three dimensional, most-dense packing algorithms

 

3PL: See Third Party Logistics

 

4PL: See Fourth Party Logistics

 

5-Point Annual Average: Method frequently used in PMG studies to establish a representative average for a one year period.

         Calculation: [12/31/98 + 3/31/98 + 6/30/99 + 9/30/99 + 12/31/99] / 5

 

5-S Program: A program for organizing work areas. Sometimes referred to as elements, each of the five components of the program begins with the letter “S.”  They include sort, systemize, shine or sweep, standardize, and sustain.  In the UK, the concept is converted to the 5-C program comprising five comparable components: clear out, configure, clean and check, conformity, and custom and practice.

The 5-S program is frequently combined with precepts of the Lean Manufacturing Initiative. Even when used separately, however, the 5-S (or 5-C) program is said to yield excellent results. Implementation of the program involves introducing each of the five elements in order, which reportedly generates multiple benefits, including product diversification, higher quality, lower costs, reliable deliveries, improved safety, and higher availability rate.

 

5 Whys: The five whys is a question asking method which is used to explore the cause/effect relationships underlying a particular problem or process. When an answer is given to a question continue by asking why the answer is appropriate.  This allows for a drill down to determine a root cause of a defect or problem, or rationale for the process.

 

6-S:  An expanded definition of 5-S which includes safety

 

7 Wastes: One of the basic concepts of Lean management, the seven  'deadly wastes' are best remembered by the acronym TIM WOOD:

 

80-20 Rule: A term referring to the Pareto principle.  The principle suggests that most effects come from relatively few causes; that is, 80% of the effects (or sales or costs) come from 20% of the possible causes (or items).  Also see: ABC Classification, Pareto

 

 

Some terms used in the Supply Chain Visions Logistics Glossary are based on the following sources:

 The Supply-Chain Council's Supply-Chain Operations Reference-model (SCOR). For more information on the Supply-Chain Council and SCOR, visit www.supply-chain.org     .

 

The American Production and Inventory Control Society’s (APICS) Dictionary.  For more information on APICS, visit www.apics.org.

 

Information Access’s Glossary of Data Integration Terminology.  For more information on Information Access, visit www.infoaccess.net.

 

Inbound Logistics Magazine Glossary.  For more information visit www.inboundlogistics.com.

 

Manufacturing System’s Glossary of Special Terms used in Client/Server Computing, Production Management and Process Automation.  For more information on MSI, visit www.manufacturingsystems.com.

 

The Performance Measurement Group’s Supply Chain Metrics Definitions & Calculations.  For more information on PMG, visit www.pmbenchmarking.com.

 

The ABC/M Glossary, Consortium for Advanced Manufacturing-International.  For more information on Activity Based Costing and advanced manufacturing practices, visit www.cam-i.org

  

Download the entire glossary in pdf format (1.2MB).

Definitions compiled by Supply Chain Visions, Bellevue, WA, www.scvisions.com. Updated May 2009.
Please note: The Center for Value Chain Research (CVCR) does not take responsibility for the content of these definitions, nor does the CVCR endorse these as official definitions except as noted.