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

HUD:
Heads Up Display.

Human Capital Management:
A number of consultants who wish to appear ahead of the game are now referring to Human Resource Management as Human Capital Management. "People are a company's greatest asset", they say, hence human capital (geddit?). The term was originally due to one Theodore Schultz, The Economic Value of Education, Columbia Press, 1960.

Human Resource Management:
see Human Resources.

Human Resources (HR):
The management of rules and procedures within the company as they relate to people themselves. While HR policy at the broad level is formulated by senior management, HR management and administration other than at the local, working, level is the responsibility of the HR manager (= personnel manager* ). HR department administrative responsibilities...

Hypergeometric Distribution:
A statistical distribution that takes account of the interdependence of a sample and the lot remaining after samples have been taken.

IASB:
International Accounting Standards Board.

IATA:
International Air Transport Authority.

IC:
Integrated Circuit.

ICAEW:
Institute of Chartered Accountants in England and Wales. Visit www.icaew.co.uk.

ICC:
International Chamber of Commerce, an international body with headquarters in Paris and set up in the 1930s to promote international trade The ICC is responsible for the periodic reissuing of the Incoterms and for issuing standard terms of letters of credit. Visit www.iccwbo.org.

ICE:
Institute of Civil Engineers (UK)

ICL:
International Computers Limited, in the 1970s a company challenging IBM for "big computer" supremacy.

ICT:
In-Circuit Test, or International Computers and Tabulators, the predecessor of ICL.

Idle Time:
The time that a machine (or machine operator) is waiting for work (does not include time under set-up or undergoing planned maintenance).

IED:
Inside Exchange of Dies - synonymous with internal set-up time (qv).

IGD:
visit the Institute of Grocery Distribution.

IMCS:
Inventory Management & Control System.

IMPACT:
The name of an IBM program of the 1950s, being the first to incorporate the replenishment lot size into the calculation of safety stock.

Impersonal Ledger:
see Ledger.

Implied Terms (legal):
Implied terms are those which are not written down in a contract, but are nevertheless assumed to be part of it, either by commonsense or by the "custom and practice of the trade" (see Custom and Practice). For example, a company purchases 100 bags of cement for delivery to its stockyard. On delivery, it rains, but the bags turn out to b...

Imprest Issue:
see Issue (Imprest).

IMT:
International Mobile Telephone.

Inactive Inventory:
see Stock (Slow Moving).

Incentive Contract:
Buyer and supplier may agree to a target cost for the fulfilment of a large undertaking, but acknowledge that there is uncertainty of outcome. The contract may specify, therefore, that the contractor (the supplier) will bear - say - 3% of any overrun, and receive, as a bonus, a payment of - say - 3% of any underrun. See especially CPA (Contract Pr...

Incoterms:
The International Chamber of Commerce Terms of Sale (see ICC). The Incoterms consist of 13 standard contractual terms relating to physical logistics (ie distribution) and the carriage of goods. The 13 standard terms define alternative arrangements, or obligations, of the seller, as the party providing the service of actual transportati...

Indeterminant Term (legal):
synonymous with an innominate contractual term (qv).

Indirect Cost:
See Cost (Indirect).

Industrial Autarky:
Industrial self sufficiency. For example, in order to promote the development of its industry or make it invulnerable against foreign blockade, the government of a country may pursue a policy of gaining industrial autarky, promoting its policy with local development grants and tariff protection.

Inelasticity:
see elasticity.

Infinite Capacity Scheduling:
A humourous term which is the "opposite" of finite capacity scheduling, and which is intended to highlight the fact that in the creation of material plans in, say, MRP and MPS, direct account is not taken in the actual calculation of the plans of the limited resources available for their manufacture. (This failure to take direct account ...

Innominate Term (legal):
Innominate means, literally, "having no name", and is applied to a contractual term which may be either a condition of the contract, or a contractual warranty - one or the other, depending on the circumstances at the time. For example, the contractual term may be to deliver on the 15th of the month. If the delivery is late and the buyer ...

Input / Output Control:
A means of regulating the amounts of work waiting at gateway and other work centres on the shop floor by use of the following self-fulfilling equation: Queue at the end of this period = Queue at the end of the previous period +Input over the period -Output over the period. Thus if the previous queue at the end of Week 6 was 100 hours of work, the ...

Insolvency:
A company is said to be insolvent either when (1) it cannot pay its debts because it has insufficient money in the bank, or (2) its total liabilities exceed its total assets. Situation (2) is referred to as balance sheet insolvency. An insolvent company may be put under receivership, or alternatively be placed in administration. If the receiver or...

Inspection (100%):
Inspection itself means the detailed examination of a part to determine whether or not it conforms to specification (*). 100% inspection means that all raw materials parts coming into the company will be individually inspected, and non-conforming units returned to the supplier. Alternatively, it may mean that all the items manufactured by the comp...

Inspection (Sampling)
: See Single Sampling and Double Sampling (of many sampling topics).

Institute of Operations Management:
see IOM.

Institute of Purchasing & Supply:
see CIPS

Institutional Investors:
pension funds, trusts and insurance companies which have bought company shares. Institutional investors are usually the majority shareholders of large public companies.

Integer Programming:
See Mathematical Programming.

Integrated Accounting:
In calculating product costs and accumulating various classes of expenditure in cost centres, it is easy to lose sight of the fact that the precepts and rules of financial accounting must continue to be followed. Integrated accounting is a set of procedures whereby the expenditures considered in cost accounting can be translated into financial acc...

Interleaved 2 of 5:
A numeric-only bar coding system, the advantage of which is the high physical density of the code. Interleaved 2 of 5 is used for grocery cartons (but not for the individual units within the cartons).

Interlocked Accounting:
Like integrated accounting (qv), interlocked accounting is also concerned with the financial accounting side of cost accounting. Two sets of accounts are "interlocked" by a common ledger control account.

Intermediate:
In the chemical industry, and in certain other process industries, an intermediate is a product which is manufactured at one stage of the manufacturing route, and is destined to be sent on to another stage - the engineering industry equivalent of a semi-finished part.

Intermittent Demand:
(Also referred to as sporadic demand and lumpy demand.) Sales demand which occurs at infrequent and irregular intervals, the quantity demanded being typically for a large but irregular amount. Intermittent demand is associated with the sale of non-wearing spare parts (eg axles, steering wheels). Attempts have been made to forecast intermittent dem...

Internal Set Up Time:
In changing over a machine from the manufacture of one product to the manufacture of the next, the internal set-up time is the duration during which the machine must be switched off and stopped while the necessary changes are carried out. Contrast External Set Up Time. See SMED.

International Business Machines) :
The world-famous computer company! IBM Corporation started life in 1911 as The Computing Tabulating Recording Company, becoming International Business Machines in 1924 under the aegis of Thomas J. Watson Jr. (*) In 1935 IBM marketed the first commercially successful electric typewriter; from the 1960s it developed a number of computer families, in...

Interoperation Time Compression:
See Operation Compression.

Interpolation:
the estimation or calculation of an intermediate value by reference to other values which are already known. For example, a shop floor technician may observe that a dimension lies on a measurement scale between 2 and 3, and may interpolate his observed reading as, say, 2.4. It is said that a practised technician can interpolate any reading between...

Intrinsic Forecasting:
The preparation of demand forecasts entirely from data relating to past demand - ie without further external inputs such as manual intervention.

Inventory Accuracy:
see stock accuracy.

Inventory Management:
A term very close to materials management (qv), but perhaps less concerned with procedures affecting production and more slanted to those relating to stock holding. Note that inventory is not itself directly managed. Instead, the production and holding of inventory and the determination of the levels, or quantities involved, are the result of many...

Inventory topics:
See under Stock ( ... topic...).

Inventory:
The term "Inventory" is synonymous with "stock". However, an inventory usually means a formal counting of stock and property (For example, one might hear the everyday statement "In order to make a quotation for his premium, the insurance company said it would have to carry out an inventory" - ie that it would have to ...

Investment Centre:
An area of operating activity such as a factory where the manager has responsibility for costs, revenues and capital investment.

Invitation to Treat (legal):
Jargon for an inducement by a vendor to a potential buyer persuade him to make an offer to purchase goods (ie to persuade him to form a "treaty"). An object in a shop windows does not constitute a legal offer by the shop keeper to passers-by - it is an invitation to treat. The foregoing distinction came to prominence in 2000 when Argos m...

Invoice:
a bill requiring payment. A "VAT invoice" is an invoice bearing the VAT registration number of the company raising the document. This is required by the party paying the invoice in order for it to claim the VAT amount back from H.M.Customs & Excise at the end of the quarter. Note that a pro forma invoice is an invoice sent to a poten...

IOM:
The Institute of Operations Management, a UK professional body concerned with production and inventory control. The IOM is in Coventry, phone 02476-692266. The web site is at http://www.iomnet.org.uk.

IP:
Intellectual Property, or Internet Protocol.

IPPD:
Integrated Product and Process Development.

IPR:
Intellectual Property Rights.

IPT:
Integrated Product Team.

IQR:
Inventory Quality Ratio.

IR:
Infra Red.

IRR:
Internal Rate of Return, synonymous with DCF rate of return, qv.

ISAM:
index sequential access method, a computer term.

ISDN:
Integrated Services Digital Network.

Ishikawa, Kaoru:
A notable Japanese quality guru credited in 1952 with devising the PDCA circle of continuous improvement (qv).

ISO 9000:
A set of procedures, controls and documentation requirements issued by the International Standards Organisation in Geneva, Switzerland, which the ISO believes must be followed by an organisation in order for it to deliver "quality" goods or services. There have been two major issues of the standard: (1) ISO 9000 : 1994, including ISO 900...

ISO TS 16949:
An ISO standard, successor to QS 9000.

ISP ( Internet Service Provider):
a company providing access to the Internet and almost always providing such other services as the renting of disk space, customised web design, management of arrangements for acquiring domain names and e-mail addresses, and even, occasionally, comprehensible help and advice.

ISPM15 (Regulations):
International Standards for Phytosanitary Measures (v. 15). Regulations concerning wood packaging and pallets, formulated to stop the spread of woodland pests. ISPM15 involves the heat treatment, fumigation and marking of wood packaging. (The US Customs and Border Protection Agency exacts very heavy penalties on companies failing to comply with IS...

Issue (Allocated):
material may be received into store from a supplier intended for a specific, identified works order or department. Care must be taken to ensure it is strictly reserved for and issued to the relevant job or user, and no-one else. A variation of this is the receipt in certain industries of material of the same item but different quality grades, with...

Issue (Bulk):
A large quantity of material (eg components) typically issued to the factory floor for handy use over a reasonable period of time (eg for a day or week). Careful monitoring of bulk issues should be made to prevent waste.

Issue (Capital):
The issue from the stores, for factory use, of a machine or tool, the machine or tool being individually identified in the company's Asset Register. Because it is individually identified, the fact of the issue should also to be recorded in the Register.

Issue (Documents):
Documents relating to the issue of stock from a store.

Issue (Imprest):
an impress is a loan or advance, and hence an imprest issue is an issue of stock from the stores to a local stocking point such as a production line or an assembly point in anticipation of its use there (ie for production or assembly). The amount of stock subject to the imprest issue is often calculated by backflushing - ie by calculation involvin...

Issue (Loan):
A tool or instrument issued by the stores, perhaps to enable a repair to be effected, and which must be returned after use.

Issue (Replacement):
A tool or part issued by the stores only in exchange for a used-up or burnt-out old tool.

Issue (Ticket):
A document signed by a supervisor authorising the withdrawal of items from the store.

Issue Deck (Pick Deck):
An issue deck is a number of documents, often in the form of cards, each one individually holding the details of each item to be picked. Storesmen and warehousemen often find issue decks easier to manage than long multi-item issue lists (see Issue List below) - for example, there may be problems with an issue list if many warehousemen are involved ...

Issue List (Pick List):
Normally, a single document listing all parts to be issued by the stores for a production job (the original meaning of a bill of materials!). Although those responsible for computer data input and output may find the issue list convenient, storesmen required to pick from a long list may find it less so. Care must be taken in stock recording as wel...

ISTC:
Iron and Steel Trades Confederation, a trade union.

Item (invisible):
Items coded and entered on the item master file may be present purely for their use in planning and as planning references - that is, they may in reality have no physical existence. Examples are pseudo parts (qv) and super items (qv). An everyday example is a sports pack, being a customer option on a motor vehicle indicating that the customer requ...

Item Master File:
A file of records relating to the products, components and raw materials of concern to the manufacturing company. Each record will be keyed on the item's code and contain permanent or relatively permanent data about the product in question - for example, its name, leadtime and standard cost.

ITS:
Intelligent Transportation System.

JEIDA:
Japan Electronic Industry Development Association.

JESSI:
Joint European Submicron Silicon Initiative.

JICARS:
Joint Industry Committee for National Reader Surveys. See entry under Media Research.

Jidoka:
(a Japanese/Lean word) - the automatic stopping or adjustment of a production line when a non-conforming unit or other problem is detected. "Ji" means the production operator himself; "do" means motion, or work; and "ka" is a Japanese suffix used to complete the word. Jidoka has been termed automation with a human mind...

JIPM:
Japanese Institute of Plant Management.

JIT:
See Just-in-Time.

Job Classification:
See Classification of Jobs.

Job Costing:
See Costing (Job).

Job Evaluation:
The general procedure in both commerce and industry through which the pay of staff is determined is first to determine the rates of pay to apply to the company's jobs, and then to assign staff to the various jobs - that is, strictly, a person's rate of pay is decided indirectly, not offered directly. There are two basic methods for evaluating a jo...

Job Grading:
See Classification of Jobs.

Job Lot:
An individual batch of components, usually associated with a specific works order, the batch of components always being identified and handled as a group.

Job Score:
See Job Evaluation.

Job Shop:
A plant or shop floor given over to the manufacture of individual works orders, usually on a once-off basis. All work undertaken in the job shop is thus unique, or, at least, is individually undertaken. Many products in the job shop will have been specially designed and will thus have unique product routes. The length of time of manufacture in a j...

Johnson's Rule:
the primary static job despatching rule.

Jolada:
A proprietary system of steel channels on the floor of a vehicle on which pallets may be mounted and moved by jacks.