CLTD - Module 1
Strategic Planning - answer The Process of developing a strategic plan.
Transportation - answer The function of planning, scheduling, and controlling activities
related to mode, vendor, and movement of inventories into and out of an organization.
Benchmarking - answer Comparing products, processes, and services to another
organization thought to have superior performance. The benchmark target may or may
not be a competitor or even in the same industry. There are 7 common forms:
competitive, financial, functional, performance, process, product, strategic.
Dwell - answer The duration of time between when cargo arrives in a terminal's in-
transit storage area and when it is shipped out by clearance transportation.
Supply Chain Operations Reference Model - answer A process reference model
developed and endorsed by the Supply Chain Council as the cross-industry, standard
diagnostic tool for supply chain management. The SCOR model describes the business
activities associated with satisfying a customer's demand, which include plan, source,
make, deliver, and return. Use of the model includes analyzing the current state of the
company's processes and goals, quantifying operational performance, and comparing
company performance to benchmark data. SCOR has developed a set of metrics for
supply chain performance, and Supply Chain Council members have formed industry
groups to collect best practices information that companies can use to evaluate their
supply chain performance.
Landed Cost - answerThis cost includes the product cost plus the cost of logistics, such
as warehousing, transportation, and handling fees.
Assembled-to-Order (ATO) - answerA production environment where a good or service
can be assembled after receipt of a customer's order. The key components (bulk, semi-
finished, intermediate, subassembly, fabricated, purchased, packing, and so on) used in
the assembly or finishing process are planned and usually stocked in anticipation of a
customer order. Receipt of an order initiates assembly of the customized product. This
strategy is useful where a large number of end products (based on the selection of
options and accessories) can be assembled from common components.
Value Added - answer1.) In accounting, the addition of direct labor, direct material, and
allocated overhead assigned at an operation. It is the cost roll-up as a part goes through
a manufacturing process to finished inventory. 2.) In current manufacturing terms, the
actual increase of utility from the viewpoint of the customer as a part is transformed
from raw material to finished inventory. It is the contribution made by an operation or a
plant to the final usefulness and value of a product, as seen by the customer. The
, objective is to eliminate all non-value-added activities in producing and providing a good
or service.
Activity-Based Costing (ABC) - answerIn activity-based cost accounting, a model, by
time period of resource costs created because of activities related to products or
services or other items causing the activity to be carried out. Syn: Activity-based cost
accounting, activity-based costing model.
Electronic Commerce (E-Commerce) - answerThe use of computer and
telecommunication technologies to conduct business via electronic transfer of data and
documents.
Kanban - answerA method of just-in-time production that uses standard containers or lot
sizes with a single card attached to each. It is a pull system in which work centers signal
with a card that they wish to withdraw parts from feeding operations or suppliers. The
Japanese word Kanban, loosely translated, means card, billboard, or sign but other
signaling devices such as colored golf balls have also been used. The term is often
used synonymously for the specific scheduling system developed and used by the
Toyota Corporation in Japan.
Six Sigma - answerA methodology that furnishes tools for the improvement of business
processes. The intent is to decrease process variation and improve product quality.
Sourcing - answerThe process of identifying a company that provides a needed good or
service.
Perfect Order - answer1.) An order in which the "Seven R's" are satisfied: the right
product, the right quantity, the right condition, the right place, the right time, the right
customer, the right cost. 2.) A fulfillment metric used to measure order proficiency,
which meets the following criteria: on time, complete, accurate, and undamaged.
Balanced Scorecard - answerA list of financial and operational measurements used to
evaluate organizational or supply chain performance. The dimensions of the balanced
scorecard might included customer perspective, business process perspective, financial
perspective, and innovation and learning perspectives. It formally connects overall
objectives, strategies, and measurements. Each dimension has goals and
measurements.
Customer Service Management (CSM) - answerA process that enables a business to
offer post-purchase service and information to the customer.
Order Management - answerThe planning, directing, monitoring, and controlling of the
processes related to customer orders, manufacturing orders, and purchase orders.
Regarding customer orders, order management includes order promising, order entry,
order pick, pack and ship, billing, and reconciliation of the customer account. Regarding
manufacturing orders, order management includes order release, routing, manufacture,
Strategic Planning - answer The Process of developing a strategic plan.
Transportation - answer The function of planning, scheduling, and controlling activities
related to mode, vendor, and movement of inventories into and out of an organization.
Benchmarking - answer Comparing products, processes, and services to another
organization thought to have superior performance. The benchmark target may or may
not be a competitor or even in the same industry. There are 7 common forms:
competitive, financial, functional, performance, process, product, strategic.
Dwell - answer The duration of time between when cargo arrives in a terminal's in-
transit storage area and when it is shipped out by clearance transportation.
Supply Chain Operations Reference Model - answer A process reference model
developed and endorsed by the Supply Chain Council as the cross-industry, standard
diagnostic tool for supply chain management. The SCOR model describes the business
activities associated with satisfying a customer's demand, which include plan, source,
make, deliver, and return. Use of the model includes analyzing the current state of the
company's processes and goals, quantifying operational performance, and comparing
company performance to benchmark data. SCOR has developed a set of metrics for
supply chain performance, and Supply Chain Council members have formed industry
groups to collect best practices information that companies can use to evaluate their
supply chain performance.
Landed Cost - answerThis cost includes the product cost plus the cost of logistics, such
as warehousing, transportation, and handling fees.
Assembled-to-Order (ATO) - answerA production environment where a good or service
can be assembled after receipt of a customer's order. The key components (bulk, semi-
finished, intermediate, subassembly, fabricated, purchased, packing, and so on) used in
the assembly or finishing process are planned and usually stocked in anticipation of a
customer order. Receipt of an order initiates assembly of the customized product. This
strategy is useful where a large number of end products (based on the selection of
options and accessories) can be assembled from common components.
Value Added - answer1.) In accounting, the addition of direct labor, direct material, and
allocated overhead assigned at an operation. It is the cost roll-up as a part goes through
a manufacturing process to finished inventory. 2.) In current manufacturing terms, the
actual increase of utility from the viewpoint of the customer as a part is transformed
from raw material to finished inventory. It is the contribution made by an operation or a
plant to the final usefulness and value of a product, as seen by the customer. The
, objective is to eliminate all non-value-added activities in producing and providing a good
or service.
Activity-Based Costing (ABC) - answerIn activity-based cost accounting, a model, by
time period of resource costs created because of activities related to products or
services or other items causing the activity to be carried out. Syn: Activity-based cost
accounting, activity-based costing model.
Electronic Commerce (E-Commerce) - answerThe use of computer and
telecommunication technologies to conduct business via electronic transfer of data and
documents.
Kanban - answerA method of just-in-time production that uses standard containers or lot
sizes with a single card attached to each. It is a pull system in which work centers signal
with a card that they wish to withdraw parts from feeding operations or suppliers. The
Japanese word Kanban, loosely translated, means card, billboard, or sign but other
signaling devices such as colored golf balls have also been used. The term is often
used synonymously for the specific scheduling system developed and used by the
Toyota Corporation in Japan.
Six Sigma - answerA methodology that furnishes tools for the improvement of business
processes. The intent is to decrease process variation and improve product quality.
Sourcing - answerThe process of identifying a company that provides a needed good or
service.
Perfect Order - answer1.) An order in which the "Seven R's" are satisfied: the right
product, the right quantity, the right condition, the right place, the right time, the right
customer, the right cost. 2.) A fulfillment metric used to measure order proficiency,
which meets the following criteria: on time, complete, accurate, and undamaged.
Balanced Scorecard - answerA list of financial and operational measurements used to
evaluate organizational or supply chain performance. The dimensions of the balanced
scorecard might included customer perspective, business process perspective, financial
perspective, and innovation and learning perspectives. It formally connects overall
objectives, strategies, and measurements. Each dimension has goals and
measurements.
Customer Service Management (CSM) - answerA process that enables a business to
offer post-purchase service and information to the customer.
Order Management - answerThe planning, directing, monitoring, and controlling of the
processes related to customer orders, manufacturing orders, and purchase orders.
Regarding customer orders, order management includes order promising, order entry,
order pick, pack and ship, billing, and reconciliation of the customer account. Regarding
manufacturing orders, order management includes order release, routing, manufacture,
