SCM Supply Chain Management Definitions & Terms

Jan 19, 2011

Cost System Design

An intelligent cost system design is one that is simple while still providing managers with information they need to make decisions. As most manufacturing processes were labor intensive at the… 

Jan 19, 2011

Capacity – Physical Flows

1) The capability of a system to perform its expected function. 2) The capability of a worker, machine, work center, plant, or organization to produce output per time period. Capacity… 

Jan 19, 2011

Six Sigma

See: Quality Programs 

Jan 19, 2011

Negotiation

Negotiation is a process of formal communication where two or more people come together to seek mutual agreement over an issue or issues. Negotiation is particularly appropriate when issues besides… 

Jan 19, 2011

Insource vs Outsource

The act of deciding whether to produce an item internally or buy it from an outside supplier. Factors to consider in the decision include costs, capacity availability, proprietary and/or specialized… 

Jan 19, 2011

Cost Management

In terms of activity-based cost accounting, cost management involves control of activities to eliminate waste, improve cost drivers, and plan operations. This process should influence the organization’s strategy setting process.… 

Jan 19, 2011

Customer Value

The customer value approach focuses on how people choose among competing suppliers, customer attraction and retention, and market-share gains. Answering three customer value questions is important in order to determine… 

Jan 19, 2011

Service Level Agreement

Service-level agreements (SLAs) are contracts between service providers and customers that define the services provided, the metrics associated with these services, acceptable and unacceptable service levels, liabilities on the part… 

Jan 19, 2011

New Product Development

See: Lead Times/Cycle Times, Supplier Integration in New Product Development 

Jan 19, 2011

Information Technology

The technology of computers, telecommunications, and other devices that integrate data, equipment, personnel, and problem-solving methods in planning and controlling business activities. Information technology provides the means for collecting, storing,…