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Glossary of Manufacturing - Manufacturing terms Category: Agriculture and Industry Date & country: 27/04/2011, USA Words: 2096

Multi-Level Master Scheduling:
The independent master scheduling of items at two or more levels in a bill of materials. An example is the master scheduling of bottled whisky and the independent master scheduling of the distillation of whisky - although they share the same bill of materials, the activities are separated in time by many years. Note that multi-level master schedul...

Multi-Level Pegging:
see full pegging in the Glossary entry for pegging.

Multiple Netting:
See Multi-Site Netting.

Multiple Sampling:
an ingenious extension of double sampling, involving the taking of many samples of size n1, n2, n3 ... each having an acceptance criterion c1, c2, c3 .... Multiple sampling is not especially more effective than double sampling, and is far harder to administer.

Murphy's Law:
A rule ascribed to by the cynical, the weary and those who have been too long in manufacturing industry, that what can go wrong, will go wrong either (a) at the worst possible moment for doing so, or (b) as soon as one takes his eye off it. See also O'Leary's Corollary.

MVP:
Modular Variable Pricing.

NAFTA:
North American Free Trade Agreement, an agreement between the US, Canada and Mexico providing for equal opprtunity - ie free of import restrictions and customs tax - regarding the supply of certain goods.

nagara:
Japanese for 'smoothing the flow of production by the synchronisation of production and supply', particularly through the institution of small production lots and group technology. See also shojinka.

Na
Also see Demand Forecasting. Naive forecasting encompasses a family of forecasting techniques based on averaging, or "smoothing". The techniques are so called because no attempt is made to use regression mathematics to establish causal relationships (ie statistically proved cause-and-effect relationships) among the data being subject to ...

Na
the name given to a naive forefasting technique in which the forecast simply comprises the last actual demand value recorded. That is, if the last recorded demand was 17 units, 17 units is now made the one-ahead forecast. Naive One is used purely as a yardstick to compare the efficacy of other more sophisticated forecasting methods. See Naive Fore...

NAM:
National Association of Manufacturers (US body) - visit nam.org.

NASA:
National Aeronautics and Space Administration, the famous American organisation.

NCPU:
non-conformities per unit. See non-conformity and defect.

NDI:
Non-Development Items.

NEC:
Nippon Electric Corporation, a Japanese electronics company.

Need Date:
See Date (Need).

Negotiation:
In sales or purchasing, a negotiation may be defined as 'a discussion between a vendor and buyer intended to result in an agreement to sell / purchase and over which either party has the power of veto'. Negotiation is not about achieving a "fair" agreement (eg a "fair" price), since a fair price cannot be defined. Fair is a mora...

Neighbour:
In discussing the duty of care in relation to health and safety, the term 'neighbour' is used. Who is my neighbour, the manufacturer might ask. He is (legally) anyone who he might reasonably have in mind when contemplating an action. In Bourhill v. Young (1943, AC92), Young was a motorcyclist killed in a collision with a car, the accident being ca...

Nemawashi:
Allegedly, Japanese to prepare a tree for transplanting, a term used in lean production to denote the review of a strategic plan with all affected parties prior to its implementation.

Nervousness:
In MRP, especially as it is applied in a manufacturing environment with relatively small planned lot sizes, continual changes in requirements, even small changes, are likely to give rise to the need to make equivalent continual adjustments to the supporting schedules of plans. (As the US manufacturing guru Hal Mather put it in a witty article many ...

Net Change:
One view of an overall material plan is of plans created at one level of the bill of materials giving rise to requirements at the next level lower in the Bill. Plans for components at this lower level are then created to cover the net requirements for them themselves - see Closed-Loop MRP. When data arising from plan amendments and completions are...

Net Piece Variance:
in relation to stock records accuracy, qv.

Net Present Value:
See NPV.

Net Requirements:
Defined as : gross requirements less on-hand stock (on-hand stock is thereby said to have been netted off). In the example given under gross requirements (qv), if gross requirements are 27 motors and the stock of motors is 8, the net requirements are 19 units. See also Partial Requirements.

Nettable Locations:
For a particular product, nettable locations are all of the locations where any stock of it held can be netted against the product's gross requirements to determine its net requirements. (Remember that gross requirements less stock = net requirements.) Thus a storage area holding stocks of components reserved for direct sale as spare parts will be ...

Netting Logic:
See Manufacturing Logic.

Neural Computer:
See Neural Networks.

Neural Networks:
The human brain consists of a very large number of interconnected cells termed neurons, these being stimulated by chemical and electrical impulses. This arrangement - or neural network - is essential to the recognition of previously encountered situations and external patterns. Attempts have been made to emulate the brain's neural network by the ar...

Nielson A.C.:
see under retail audit.

Nimble Manufacturing:
(1) The efficient, low cost manufacture of small quantities of product, allied with an ability to change product mix easily and quickly - in short, lean manufacture. See agile manufacturing and lean manufacturing. (2) The manufacture by RHM (Rank, Hovis, McDougall) of a particular brand of bread at their factory in Windsor, in the UK.

NIST:
National Institute of Standards and Technology. (US).

NLP:
Neuro Linguistic Programming - programming of the mental procedures that we invoke when we perform the various tasks in our lives. What hidden factors make the critical difference between success and failure? And how can these crucial factors be incorporated into new programs in the future?

No. 3
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Node (Distribution):
A formally established point within a supply and distribution network which is brought into account when the movement and storage of material is under consideration. Usually, especially within simpler distribution systems, the node will be a stocking point - perhaps a local depot or a regional warehouse. In more complex networks, a node may be used...

Noise:
random disturbance intruding on some measured phenomenon. See White Noise.

Nominal Ledger
: see Ledger.

Non Conforming Unit:
A manufactured part not conforming to specifications. The ISO definition of a non-conformity is a non-fulfilment of a requirement. See also Defective Unit.

non-severable
agreement is one that consists of an indivisible, single contract that cannot be sub-divided. If there is a failure by the supplier in fulfilling any part of his obligations in the non-severable contract, the whole contract is put in jeopardy - but see quantum meruit. Alse see Stage Deliveries.

Normal (noun):
a slang term for a standard cost.

Normal Cost:
synonymous with standard cost. See Cost (Standard).

Normal Curve:
see Distribution (Normal).

North West Corner:
A term used in the operation of the transportation algorithm (the starting point of the solution at the top, left corner of the "initial tableau").

Note:
US for Bill of Exchange, qv.

Notional Cost:
See Cost (Standard).

Np chart:
See Number Rejected Control Chart.

NPV:
Net Present Value, a method of evaluating a stream of costs and benefits over time assuming a nominated rate of interest applying to the value of money. For example, if a rate of interest of 20% pa were to be assumed, a

NRDC:
National Research Development Corporation, a UK government institution intended to promote the commercial exploitation of scientific advances.

Null Hypothesis, The:
The starting assumption in ANOVA (qv), namely that there is no statistical significant difference between two or more populations - ie that any difference between them is due purely to random causes.

OA:
Optical Amplifier.

OAG:
Open Application Group.

Obligated Producer:
See Packaging Waste Regulations.

Obsolescent Stock:
see Stock (Obsolescent).

Obsolete Machines (Spares For):
See All Time Supply.

Obsolete Stock:
see Stock (Obsolete).

OC Curve:
In sampling, a sample plan is obtained from a published sampling table, and specifies the size (N) of an incoming lot of material, the quality (p%) required of this incoming lot, the size (n) of the sample to be taken, and the acceptance criterion c. Now, when such a sample plan is "operated" (ie used) in material receipt, an OC curve is ...

Occupational Health:
the prediction and prevention of work-related ill health, and of health issues associated with work.

Ocean going:
(US term) In transportation, shipping on the open sea (in UK English, deep sea.)

OEE:
Original Equipment Effectiveness, or Overall Equipment Effectiveness. The overall equipment effectiveness is the product of (1) equipment availability, (2) equipment performance and (3) equipment quality rate ... say (1) 80%, (2) 80% and (3) 80%, making an OEE of 0.8 x 0.8 x 0.8, = 0.512, or 51.2%.

OEM:
Original Equipment Manufacturer.

OFAT (One Factor At A Time):
A method of experimentation for examining the effect of a number of possible causes. Contrast Full Factorial.

Off the Shelf Satisfaction:
See First Pick Ratio.

Offer (legal):
A proposal by a party to supply goods or service in exchange for money. The making of an offer is the first step in forming a contract.

Officious Bystander Test:
A contract between the company and a supplier is comprised of express terms (ie written down) and implied terms (obvious terms implied by commonsense, and by custom and practice). To determine later whether some particular term X is implied or not, the company might imagine what reply would have been given by both parties while the contract was be...

Offset:
(See also leadtime offset.) In countertrading (qv), direct offset is where the supplier agrees to incorporate materials from the country of export in the actual goods being supplied. Indirect offset is where the exporting company or exporting country places business with, or provides assistance to, the country of export, the business or assistance...

OFT:
Office of Fair Trading, a UK body which investigates alleged breaches of the Competition Act, and is empowered to take legal action as it deems fit.

OLE:
Open Link Embedding.

Oligopoly:
A market in which there are only a small number of suppliers, and no prospect of new ones, thus limiting competitive choice and, perhaps, presaging the emergence of a cartel (qv). Contrast Monopsomy.

One Piece Flow:
another alias of Just-in-Time (qv).

OOP:
Out of Production.

Open Order (or Scheduled Receipt):
One of the three plan types in closed-loop MRP (along with the planned order and the firm plan), the open plan being a plan which has been released to the shop floor for work to start (*). Similarly, an open purchase order is a planned purchase in the MRP system which a supplier has committed to transit. When materials plans are assessed by the cl...

Operating Characteristic:
The probabilities of acceptance of incoming lots of parts of various quality levels, resulting from the employment of a given sample plan. The operating characteristics of a plan can be handily illustrated as a curve - see OC Curve. OC curves were at one time termed "probability of acceptance curves".

Operation Compression:
In order to reduce the leadtime of a multi-operation job, the job's wait and move activities may be controlled by a coloured ticket system. For example, a red ticket may indicate the job is to be moved to the head of the queue, and given priority by shop floor materials handling staff. When the job is back on schedule, the ticket should be removed...

Operation Overlapping:
In order to reduce the leadtime of a job involving the processing of many components, it may be possible to send some of the completed components ahead to the next operation before the first operation has finished, so that a start can be made on them. If the duration of the first operation is shorter than that of the second, calculation of the sav...

Operation Splitting:
When a number of components are to be processed by a machine operation, the leadtime required to do so may be halved if 50% of the components are able to be processed by a second alternative machine. (Naturally, the operation splitting between the two machines requires that a second operator should be available, and a second set of tools.) It is n...

Operations Research:
see OR.

Option Forecast:
a term coined by John Proud in his book Master Scheduling to replace "production forecast (meaning (2))" used in two-level master scheduling.

Option Overplanning:
see Over Planning.

OR:
Operations Research. The application of mathematical and similar techniques to problems in manufacturing industry. Three examples of OR are the use of linear programming to optimise the allocation of output from a capacity bottleneck; the application of queuing theory to shop floor control; and the mathematical treatment of the scheduling of conti...

Oral Agreement (legal):
A legal contract between two parties that has been agreed verbally ("Oral contracts aren't worth the paper they're written on " - Samuel Goldwyn).

Orange Book, The:
The name given to the book Production & Inventory Management in The Computer Age, by Oliver Wight, following its publication in 1974, on account of the colour of its dust jacket. The Orange Book included the first published exposition of Closed-Loop MRP.

Order (Customer):
see Customer Order.

Order Policy:
The rule governing when a replenishment stock order is to be generated. In materials planning, the order policy will be to generate a new planned order when the projected stock balance falls to zero. While the same policy prevails in the course of master schedule management, the order policy during master schedule formulation, by contrast, is to g...

Order Processing:
see Sales Order Processing.

Order Quantity:
When a replenishment order is generated by the materials planning system, the size of the order to cover the net requirements for the material will be determined by a planning rule applying to the particular product concerned. The order quantity is the amount specified according to the rule (for example, lots of 1000 units, lots of 1500 units, lot-...

Ordinal Number:
a number denoting order or rank, such as first, second, third ... as opposed to a cardinal number (1, 2, 3 etc.).

Ordinary Shares
: see shares - an ordinary share's issued, face value may merely be

Originating Site:
The factory site producing Material M, as described under Multi-Site Netting - qv. See also Consuming Site.

Orthogonol
: The dictionary definition of orthogonal is perpendicular, or right angled. However, in manufacturing or quality experiments, orthogonal entries in a matrix are entries said to be balanced. For example, consider three factors in an experiment, A, B and C, which can be set for experimental purposes either high (+) or low ( - ). There are eight ways...

OS&D:
Overage, shortage and damage, as they may relate to the delivery of materials from a supplier (contrast OTIF).

OSA:
On Shelf Availability - a common and obvious customer service goal, which must normally be qualified by such statements as "for 99% of all orders" or "non-available items supplied within 3 days" etc., (There is also the question of the consequences of non-availability.)

OTC:
(1) Over The Counter, A term applied to medicine and drugs able to be bought without a doctor's prescription; (2) On-Time Commit, or on-time delivery to commit date.

OTCR:
On-Time delivery performance to Customer Request date ... in effect, the same as OTIF, qv.

OTED:
One Touch Exchange of Die - the goal of accomplishing a machine changeover in 100 seconds or less (see also SMED).

OTIF:
Relating to the delivery of goods from a supplier - on-time, in full. The presumption must also be that the delivery is 100% conforming to quality requiremements - contrast OS&D! OTIF is but one of many possible customer service targets.

Outlier:
a data point that is greater than three standard deviations from the mean (to appreciate the "mean", see variance). See also Black Swan.

Outside In:
The quality view of a system, whereby basic procedures are considered broadly from the viewpoint of the customer.

Over Planning:
In two-level master scheduling (see Master Scheduling and also the Final Assembly Schedule), the quantities of the various option variants which are master scheduled are determined by forecasts derived from option preferences specified by customers in the past. In a particular month, however, the variants specified in actual orders are likely to di...

Over Trading:
A company is said to be over trading when the volume and extent of the business it has taken on is excessively large in relation to the capital it has to meet it. In these circumstances, the company may place excessive reliance on loan capital, overdrafts and supplier credit.

Overlap:
In pay structures and grading, overlap is the percentage of the scale of the bottom of a higher pay grade also covered by the scale at the top of the pay grade immediately lower in the pay structure.

Overrun Device:
in mechanical safety, a device used in conjunction with a guard designed to prevent access to machinery parts which are moving by their own inertia after the power has been switched off. Examples are rotation sensing devices, timing devices and certain braking systems.