The Quantum Leap: Next Generation

Appendix D: Glossary of Lean and Flow Manufacturing Terms

ACQUISITION COST
The costs associated with purchasing material usually expressed as a percentage of the purchased-material standard cost. Acquisition costs typically include procurement, shipping, and inspection costs.
AVAILABLE TO PROMISE (ATP)
The quantity of a product that is available to commit to customers. Available-to-promise quantities exist when total demand exceeds actual orders.
BACKFLUSH
The method in Demand Flow manufacturing of relieving RIP inventory from a product's bill-of-material quantities/usage at the end of the flow process when the product is complete. Backflush also can relieve purchase orders of consigned inventory material.
BALANCED POINT
The point in time at which plant capacity and resources balance exactly with market demand.
BATCH MANUFACTURING
The traditional manufacturing philosophy under which companies schedule production using lots or quantities. Batch manufacturing usually includes work orders created corresponding to a production schedule for a quantity of fabricated parts or subassemblies.
BILL OF MATERIAL
A hierarchical listing of materials, both purchased and manufactured, required to build a product.
BOTTLENECK
A point in the production flow where resource capacity is less than the demand for the resource.
CAPACITY-CONSTRAINED RESOURCES
Resources whose availability is insufficient to meet current or ongoing demand.
CELL
A grouping of dissimilar resources (people and/or machines) positioned in a logical sequence to facilitate the flow of a product or products through the production line.

See also GROUP TECHNOLOGY.

CHAKU-CHAKU
A method of conducting single-piece flow, where the operator proceeds from machine to machine and takes the part from one machine and loads it into the next.
CONSTRAINT
A...

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