Warehouse Dictionary

Taguchi Method thru Turnover



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Taguchi Method
A concept of offline quality control methods conducted at the product and process design states in the product development cycle. This concept, expressed by Genichi Taguchi, encompasses three phases of product design, parameter design, and tolerance design. The goal is to reduce quality loss by reducing the variability of a product’s characteristics during the parameter phase of product development.
Takeaway conveyor
A powered conveyor (e.g., belt or live roller) used in piece and case picking to transport completed orders.
Takt Time
Sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean production system. It’s computed as the available production time divided by the rate of customer demand. For example, assume demand is 10,000 units per month, or 500 units per day and planned available capacity are 420 minutes per day. The takt time = 420 minutes per day/500 units per day = 0.84 minutes per unit. This takt time means that a unit should be planned to exit the production system on average every 0.84 minutes.
Tare Weight
The weight of a substance obtained by deducting the weight of the empty container from the gross weight of the full container.
Target Costing
A target cost is calculated by subtracting the desired profit margin from an estimated or market-based price to arrive at a desired production, engineering, or marketing cost. This may not be the initial production cost, but one expected to be achieved during the mature production stage. Target costing is a method used in the analysis of product design that involves estimated a target cost, then designing the product/service to meet that cost.
Target stock level
determines the order size for a periodic review method (with order size equal to target stock level minus current stock minus amount already on order)
A tax assessed by a government on goods entering or leaving a country. The term is also used in transportation in reference to the fees and rules applied by a carrier for its services.
Task interleaving
Term used in describing a warehouse management systems to mix tasks to reduce travel time. Sending a forklift driver to put away a pallet on his way to his next pick is a task interleaving example.
The breakdown of the work in an activity into smaller elements.
The document which describes a business transaction to be performed.
Theory of Constraints (TOC)
A production management theory which dictates that volume is controlled by a series of constraints related to work center capacity, component availability, finance, etc. Total throughput cannot exceed the capacity of the smallest constraint, and any inventory buffers or excess capacity at non-related work center is waste.
Third Party Logistics
Outsourcing all or much of a company’s logistics operations to a specialized company.
Third Party Logistics Provider (3PL)
A firm which provides multiple logistics services for use by customers. Preferably, these services are integrated or bundled together, by the provider. These firms facilitate the movement of parts and materials from suppliers to manufacturers, and finished products from manufacturers, and finished products from manufacturers to distributors and retailers. Among the services they provide are transportation, warehousing, cross docking, inventory management, packaging, and freight forwarding.
Third Party Warehousing
The outsourcing of the warehousing function by the seller of the goods.
A measure of warehousing output volume (weight, number of units). Also, the total amount of units received, plus the total amount of units shipped divided by two.
Tier 1, 2 supplier
A tier 1 supplier is the immediate or primary set of vendors directly used by a company, and tier 2 is a vendor to tier 1. In some industries the final customers or dominant chain partners are consolidating (reducing) their number of tier 1 suppliers, and requiring proof of the communications and fulfillment capabilities between tier 1 and tier 2.
Total Annual Sales
Total Annual Sales are Total Product Revenue plus post-delivery revenues (e.g., maintenance and repair or equipment, system integration) royalties, sales of other services, spare parts revenue, and rental/lease revenues.
Total Average Inventory
Average normal use stock, plus average lead stock, plus safety stock.
Total Cost Analysis
A decision-making approach that considers minimization of total costs and recognizes the inter-relationship among system variables, such as transportation, warehousing, inventory, and customer service.
Total Cost Curve
1) In cost-volume-profit (break-even) analysis, the total cost curve is composed of total fixed and variable costs per unit multiplied by the number of units provided. Break-even quantity occurs where the total cost curve and total sales revenue curve intersect.
2) In inventory theory, the total cost curve for an inventory item is the sum of the costs of acquiring and carrying the item.
Total Cost of Ownership (TCO)
Total cost of a computer asset throughout its life cycle, from acquisition to disposal. TCO is the combined hard and soft costs of owning networked information assets. “Hard” costs include items such as the purchase price of the asset, implementation fees, upgrades, maintenance, contracts, support contracts, disposal costs, and license fees that may or may not be up-front or charged annually. These costs are considered “hard costs” because they are tangible and easily accounted for.
Total Cumulative Manufacture Cycle Time
Average time between commencement of upstream processing and completion of final packaging for shipment operations as well as release of approval for shipment. Does not include WIP storage time.Calculation: [Average # of units in WIP]/[Average daily output in units] – WIP days of supply
Total Make Cycle Time
The average processing time between commencement of upstream processing and completion of all manufacturing process steps up to, but not including, packaging and labeling operations (i.e., from start of manufacturing to final formulated product ready for primary packaging.) Does not include hold or test and release times. Calculation: [Average # of units in active manufacturing]/[Average daily output in units.]
Total Product Revenue
The total value of sales made to external customers plus the transfer price valuation of intra-company shipments, net of all discounts, coupons, allowances, and rebates. Includes only the intra-company revenue for product transferring out of an entity, installation services if these services are sold bundled with end products, and recognized leases to customers initiated during the same period as revenue shipments, with revenue credited at the average selling price.
Note: Total Product Revenue excludes post-delivery revenues (maintenance and repair of equipment, system integrations), royalties, sales of other services, spare parts revenue, and rental/lease revenues.
Total Productive Maintenance (TPM)
Team-based maintenance process designed to maximize machine availability and performance and product quality.
Total Quality Management
a management strategy that focuses on continuous improvement.
Total Supply Chain Management Cost (five elements)
Total cost to manage order processing, acquire materials, manage inventory, and manage supply chain finance, planning, and IT costs as represented as a percent of revenue. Accurate assignment of IT-related cost is challenging. It can be done using activity-based costing methods, or more traditional-based approaches. Allocation based on user counts, transaction counts, or departmental headcounts are reasonable approaches. The emphasis should be on capturing all costs, whether incurred in the entity completing the survey or in a supporting organization on behalf of the entity. Reasonable estimates founded in data were accepted as means to assess overall performance. All estimates reflected fully-burdened actuals inclusive of salary, benefits, space and facilities, and general and administrative allocations.
Calculation: [Order Management Costs + Material Acquisition Costs + Inventory Carrying Costs + Supply-Chain Related Finance and Planning Costs + Total Supply Chain-Related IT Costs]/[Total Product Revenue]
Total Supply Chain Response Time
The time it takes to rebalance the entire supply chain after determining a change in market demand. Also, a measure of a supply chain’s ability to change rapidly in response to marketplace changes.
Calculation: [Forecast Cycle Time] + [Re-Plan Cycle Time] + [Intra-Manufacturing Re-Plan Cycle Time] + [Cumulative Source/Make Cycle Time] + [Order Fulfillment Lead Time]
Total Test Release Cycle Time
The average total test and release time for all tests, documentation reviews, and batch approval processes performed from start of manufacturing to release of final packaged product for shipment.
Calculation: [Average number of units in test and release]/[Average daily output in units]
Touch Labor
The labor that adds value to the product – assemblers, welders, packagers, etc. This does not include indirect resources like material handlers who move and stage product, and mechanical and electrical technicians who maintain equipment.
The practice of relating resources, activities, and cost objects using the drivers underlying their cost causal relationships. The purpose of tracing is to observe and understand how costs are arising in the normal course of business operations.
1) The attribute allowing the ongoing location of a shipment to be determined.
2) The registering and tracking of parts, processes, and materials used in production, by lot or serial number.
Tracking and Tracing
Monitoring and recording shipment movements from origin to destination.
Trading Partner
Companies that do business with each other via EDI (e.g., send and receive business documents such as purchase orders).
Trading Partner Agreement
The written contract that spells out agreed upon terms between EDI trading partners.
A department or function charged with the responsibility of arranging the most economic classification and method of shipment for both incoming and outgoing materials and products.
Traffic Management
The management and controlling of transportation modes, carriers, and services.
The part of the truck that carries the goods.
Trailer Drops
When a driver drops off a full truck at a warehouse and picks up an empty one.
A single completed transmission, e.g., transmission of an invoice over an EDI network. Analogous to usage of the term in data processing in which a transaction can be an inquiry or a range of updates and trading transactions. The definition is important for EDI service operators who must interpret invoices and other documents.
Transaction Set
Commonly used business transactions (e.g., purchase order, invoice, etc.) organized in a formal, structured manner consisting of a transaction set header control segment, one or more data segments, and a transaction set trailer control data segment.
Transaction Set ID
A three digit numerical representation that identifies a transaction set.
Transit Time
The total time that elapses between a shipment’s pickup and delivery.
The ability to gain access to information without regard to the system’s landscape or architecture. An example would be where an online customer could access a vendor’s web site to place an order and receive availability information supplied by a third party outsource manufacturer or shipment information from a third party logistics provider.
Transportation inventory
the amount of inventory that is currently in-transit. That is, it is the inventory that has left the shipper’s facility (either an owned facility or a supplier’s facility) and has yet to arrive at the consignee’s facility (may be an owned facility or a customer’s facility).
Transportation Management System
A computer system designed to provide optimized transportation management in various modes along with associated activities, including managing shipping units, labor planning and building, shipment scheduling through inbound, outbound, intra-company shipments, documentation management (especially when international shipping is involved), and third party logistics management.
Transportation Mode
The method of transportation: land, sea, or air shipment.
Transportation Planning
The process of defining an integrated supply chain transportation plan and maintaining the information which characterizes total supply chain transportation requirements, and the management of transporters, both inter- and intra- company.
Transportation Planning Systems
The systems used in optimizing assignments from plants to distribution centers, and from distribution centers to stores. The systems combine moves to ensure the most economical means are employed.
a gradual increase or decrease in demand over a period of time.
Trend Forecasting Models
Methods for forecasting sales data when a definite upward or downward pattern exists. Models include double exponential smoothing, regression, and triple smoothing.
Truck Stop Electrification (TSE)
Provides power outlets at truck parking spaces in which truck drivers can simply plug in, and turn off their engines, rather than idle their truck engine.
Truckload Carriers (TL)
Trucking companies which move full truckloads of freight directly from the point of origin to destination.
Truckload Lot
A truck shipment that qualifies for a lower freight rate because it meets a minimum weight and/or volume.
1) Typically refers to inventory turnover
2) In the United Kingdom and certain other countries, turnover refers to annual sales volume.

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