| Target Costing |
| It is the process of designing a product to meet a specific cost objective. Target costing involves setting the planned selling price, subtracting the desired profit as well as marketing and distribution costs, thus leaving the required manufacturing or target cost. Source for above definitions: http://www.apics.org/ (10th ed.) |
| Total Costs |
| The sum of the variable, fixed and semivariable costs (costs that cannot be classified as variable or fixed ) comprises total costs. As the volume of production increases, total costs increase. However, the cost to produce each unit of product decreases. This is because the fixed costs do not increase, they are simply spread over a larger number of units of products. Source: Dobler, D.W., & Burt, D.N. (1996). Purchasing and Supply Management. (6th ed.). New York: McGraw Hill. top |
| Total Cost of Ownership (TCO) |
| In supply chain management, the total cost of ownership of the supply delivery system is the sum of all the costs associated with every activity of the supply stream. The main insight that TCO offers to the supply chain manager is the understanding that the acquisition cost is often a very small portion of the total cost of ownership. Source: http://www.apics.org/ (10th ed.) top |
| Total Productive Maintenance (TPM) |
| Preventive maintenance plus continuing efforts to adapt, modify, and refine equipment to increase flexibility, reduce material handling, and promote continuous flows. It is operator-oriented maintenance with the involvement of all qualified employees in all maintenance activities. Source: http://www.apics.org/ (10th ed.) top |
| Training |
| Managers must ensure that appropriate personnel receive periodic training with respect to the organization’s ethical and professional standards. Supply managers should ensure that their personnel receive training on current thinking and techniques in the areas of requirements planning, source selection, pricing, cost analysis, negotiation and supply management as well as ethical and professional standards. Some examples of types of training in organizations: Cross-Training: The providing of training or experience in several different areas, e.g., training an employee on several machines rather than one. Cross-training provides backup workers in case the primary operator is unavailable. On-the-Job Training (OJT): Learning the skills and necessary related knowledge useful for the job at the place of work or possibly while at work. Sources: Dobler, D.W., & Burt, D.N. (1996). Purchasing and supply management. (6th ed.). New York: McGraw Hill. http://www.apics.org/ (10th ed.) top |