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Terms & Definitions
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Packaging Packaging has a significant impact on the cost and productivity of logistics. Inventory control depends upon the accuracy of manual or automatic identification systems keyed by product packaging. Order selection speed, accuracy and efficiency are influenced by package identification, configuration, and handling ease. Handling efficiency is affected by package design, unitization capability and techniques, and communication or information transfer between channel partners. Transportation and storage costs are driven by package size and density. Customer service depends upon packaging to allow quality control during distribution to provide, customer education and convenience, and to comply with environmental regulations. Given the increasing length and complexity of global supply chains and the costs of locating new facilities, the concept of packaging postponement to achieve strategic flexibility is particularly important.
Source: Christopher. M. (1998). Logistics and supply chain management: Strategies for reducing cost and improving service. (2nd ed.). New York: Prentice Hall.
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Performance Measurement Supplier performance measurement and evaluation includes the methods and techniques used to collect information that can be used to measure, rate or rank supplier performance on a continuous basis. The measurement system is a crucial part of supplier management and development.
Source: Monczka, R., Trent, R., & Handfield, R. (1998). Purchasing and Supply Chain Management. Cincinnati, OH: South Western College Publishing.
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Preventative Maintenance The activities, including adjustments, replacements, and basic cleanliness, that forestall machine breakdowns. The purpose is to ensure that production quality is maintained and that delivery schedules are met. In addition, a machine that is well cared for will last longer and cause fewer problems.
Source:http://www.apics.org/ (10th ed.)
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Program Management The coordinated management of a portfolio of projects to achieve a set of business objectives is called program management. Or, a program might refer to an ongoing set of activities internal to the organization, for example, a Total Quality Management program, workplace safety program, supplier development program, etc.
Source: http://www.mapnp.org/library/prog_mng/prog_mng.htm
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Project Management Project management is the application of knowledge, skills, tools and techniques to a broad range of activities in order to meet the requirements of the particular project. A project is a temporary endeavor undertaken to achieve a particular aim. Project management knowledge and practices are best described in terms of their component processes. These processes can be placed into five Process Groups: Initiating, Planning, Executing, Controlling and Closing. – and nine Knowledge Areas – Project Integration Management, Project Scope Management, Project Time Management, Project Cost Management, Project Quality Management, Project Human Resource Management, Project Communications Management, Project Risk Management, and Project Procurement Management.
Source: http://www.pmi.org/projectmanagement/project.htm
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Promotions One of the four P’s (product, price, place, and promotion) that constitute the set of tools used to direct the business offering to the customer. Promotion is the mechanism whereby information about the product offering is communicated to the customer and includes public relations, advertising, sales promotions, and other tools to persuade customers to purchase the product offering.
Source: http://www.apics.org/ (10th ed.)
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Purchase Requirements See: Specifications, Industry Standards, Statement of Work, Service Level Agreement
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Terms & Definitions
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Quality Conformance to requirements or fitness for use. Quality can be defined through five principal approaches: (1) Transcendent quality is an ideal, a condition of excellence. (2) Product-based quality is based on a product attribute. (3) User-based quality is fitness for use. (4) Manufacturing-based quality is conformance to requirements. (5) Value-based quality is the degree of excellence at an acceptable price. Also, quality has two major components: (1) quality of conformance—quality is defined by the absence of defects, and (2) quality of design—quality is measured by the degree of customer satisfaction with a product’s characteristics and features.
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Quality Programs Some of quality programs that are currently used include:
Total Quality Management (TQM):
TQM is a management approach to long-term success through customer satisfaction. TQM is based on the participation of all members of an organization in improving processes, goods, services, and the culture in which they work.
Total Quality Engineering (TQE):
TQE is the discipline of designing quality into the product and manufacturing processes by understanding the needs of the customer and performance capabilities of the equipment.
Total Quality Control (TQC):
TQC is the process of creating and producing the total composite good and service characteristics by marketing, engineering, manufacturing, purchasing, etc., through which the good and service will meet the expectations of customers.
Statistical Quality Control (SQC):
SQC is the application of statistical techniques to control quality.
Six-Sigma Quality:
Six sigma quality is a term used generally to indicate that a process is well controlled, i.e., tolerance limits are ±6 sigma from the centerline in a control chart.
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Terms & Definitions
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Relationship Management See: Agreements, Collaboration, Contract, Joint Venture, Strategic Alliance, Supplier-Customer Partnership
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Reverse Logistics A supply chain that is dedicated to the reverse flow of products and materials for returns, repair, remanufacture, and/or recycling.
Source: http://www.apics.org/ (10th ed.)
 

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