358 Making it Happend

LEAN MANUFACTURING An approach to production that emphasizes
the minimization of the amount of all the resources (including time) used
in the various activities of the enterprise. It involves identifying and eliminating
non-value-adding activities in design, production, supply chain
management, and dealing with the customers.
LOAD The amount of scheduled work ahead of a manufacturing facility,
usually expressed in terms of hours of work or units of production.
LOGISTICS In an industrial context, this term refers to the functions of obtaining
and distributing material and product.
LOT-FOR-LOT An order quantity technique in MRP which generates
planned orders in quantities equal to the net requirements in each period.
Also called discrete, one-for-one.
MAKE-TO-ORDER PRODUCT The end item is finished after receipt of a
customer order. Frequently, long lead-time components are planned
prior to the order arriving in order to reduce the delivery time to the customer.
Where options or other subassemblies are stocked prior to customer
orders arriving, the term assemble-to-order is frequently used.
MAKE-TO-STOCK PRODUCT The end item is shipped from finished goods
off the shelf, and therefore, is finished prior to a customer order arriving.
MANUFACTURINGRESOURCE PLANNING (MRP II) The third step in the
evolution of ERP. This is a method for the effective planning of the resources
of a manufacturing company. It addresses operational planning
in units, financial planning in dollars, and has a simulation capability to
answer what if questions. MRP II is made up of a variety of functions,
each linked together: business planning, Sales & Operations Planning,
demand management, master scheduling, Material Requirements Planning,
Capacity Requirements Planning, and the execution support systems
for capacity and material. Output from these tools is integrated with
financial reports such as the business plan, purchase commitment report,
shipping budget, inventory projections in dollars, and so on. Manufacturing
Resource Planning is a direct outgrowth and extension of closedloop
MRP. See Material Requirements Planning, Closed-Loop MRP,
Enterprise Resource Planning.
MASTER PRODUCTION SCHEDULE (MPS) See master schedule.
MASTER SCHEDULE (MS) The anticipated build schedule. The master
scheduler maintains this schedule and, in turn, it drives MRP. It represents
what the company plans to produce expressed in specific configurations,
quantities, and dates. The master schedule must take into
account customer orders and forecasts, backlog, availability of material,
availability of capacity, management policy, and goals.
MATERIAL REQUIREMENTS PLANNING (MRP) The first step in the evolution
of ERP. This is a set of techniques which uses bills of material, in-