Factory language:

1. Dispatch: Dispatch is a procedure for assigning employees (workers) or

vehicles to customers. With vehicle dispatching, clients are matched to
vehicles according to the order in which clients called and the proximity
of vehicles to each client's pick-up location. Telephone operators take
calls from clients, then either enter the client's information into a
computer or write it down and give it to a dispatcher. In some cases,
calls may be assigned a priority by the call-taker. Priority calls may jump
the queue of pending calls. In the first scenario, a central computer then
communicates with the mobile data terminal located in each vehicle (see
computer assisted dispatch); in the second, the dispatcher
communicates with the driver of each vehicle via two-way radio.
Dispatchers have to coordinate worker availability, skill, travel time and
availability of parts. The skills required of a dispatcher are greatly
enhanced with the use of computer dispatching software
Manual dispatch systems
The following are examples of manual systems used to track the status of
resources in a dispatched fleet.

a. Cards
Card systems employ a set of shelves with a slot for each unit in the
dispatch fleet. Each vehicle or resource has a slot in the shelving system.
In it, a card, like a time card used to track an employee's work hours, is
stored. A time clock, similar to the one that stamps work hours on a time
card, is used to stamp event times on each card. At the beginning of a
work day, the resource's identifier or other information is handwritten on
the card. Each time the resource's status changes, the card is punched
in the time clock and a new status entry is handwritten on the card. The
card collects a series of entries through the work shift.
b. Punched tags
Punched tag systems employ a set of pegs with each peg holding tags
for one unit in the dispatch fleet. Each vehicle working the current
shift has a peg with a tag describing the unit's current status. A time
clock, similar to the one that stamps work hours on a time card, is
used to stamp times on each tag. At the beginning of a work day, the
resource's identifier may be posted above the peg. The unit's start
time is stamped and their status is written on the tag. Each time the
resource's status changes, a new tag is written and the tag is time
stamped in order to log the time the unit's status changed. The peg
collects a stack of tags through the work shift.
c. Plastic icons in a plastic icon system, the blank panel on the
communications console or a nearby wall is fitted with a sheet of
Velcro. The material has vertical stripes painted on it, making a
column for each of several possible status conditions. The simplest
system is two columns: available and unavailable. Magnetized icons
can be used in place of Velcro. The icons can be coloured or shaped to
identify the type of unit or some other feature of the resource.
d. Trucking dispatchers play a major role in transportation logistics.
Truck dispatchers orchestrate freight movement and equipment from
one place to another while keeping close communication with truck
drivers. Some dispatching companies help truck drivers to negotiate
and acquire loads and handle paperwork. Dispatching trucks require
a variety of skills like using a computer to find and track loads for
drivers to speaking multiple languages depending on the region or
number of trucks they manage. Great customer service and good
communication are vital for succeeding in this fast-paced
environment.
Capacity and metrics
 There is a limit to how many field units can be managed. This varies
with circumstances. For example, a parcel delivery service dispatcher
may encounter higher traffic around Christmas. Work is not evenly
distributed across time: in any dispatch system there are traditional
peaks or busy hours in requests for service. Some workplace cultures
will allow longer wait times than others.

2. Finished goods inventory: Finished goods are the products that

manufacturers rely on to make money by selling them to wholesalers and
retailers. In a typical process, when production is complete, you simply
credit the works-in-progress account and debit the finished goods
inventory account. In very short production processes, you can actually
just move the inventory directly from raw materials to finished goods in
your accounting.

3. Work in Process inventory: When a manufacturer uses direct and

indirect materials in production, it must recognize the transition of the
materials into works-in-progress. Since the raw materials are in use, you
must show the reduction in raw materials inventory by crediting the
current asset account and debit the "works-in-progress" inventory.
Simultaneously, you remove indirect materials by crediting raw materials
inventory, but you apply the debit to a factory overhead account.
4. Raw material inventory: Raw materials include wood, metals, plastics
and fabrics used in the production of goods. A manufacturer typically
acquires raw materials from one or more producers or suppliers. You
recognize raw materials cost are recognized in your inventory at the point
of acquisition, and it is a current asset on your company's balance sheet.
Over time, you pull raw material from inventory and use it in the
production of finished goods.
5. Loading hour: The number of hours machine will be working.
6. Defects: Defect is a physical, aesthetic, or functional attribute of a
product or service that exhibits that the product or service failed to meet
one of the desired specifications.
7. Delivery request
8. Delivery performance

9. Product family: A product and its variants passing through similar

processing steps and common equipment just prior to shipment to the
customer. Product families can be defined from the standpoint of any
customer along an extended value stream, ranging from the ultimate
customer (the end consumer) to intermediate customers within the
production process. For example: In a power tools business, a product
 family might be defined as medium-sized electric drills utilizing a
common chassis and passing through a common assembly cell as the
last manufacturing step before shipment directly to end consumers. In
the illustration below, a firm with seven product lines, as perceived by its
customers, arrayed its assembly steps and equipment across the top of a
product family matrix and quickly found a common path for Products A,
B, and C, which it then value stream mapped as a product family.

10. Model line: A model line refers to taking one value stream, or one
part of the organization, and developing the full operating system there.
The model line gets significant supporting resources in order to
accomplish the change so that it can serve as a demonstration to the rest
of the organization. The benefit of this approach is that it focuses the
resources to achieve the change: if the company is serious about its
commitment to lean, it cannot afford to have the model line fail, and will
therefore be very attentive to the many needs and challenges that will
arise in order to ensure success. The first difficulty with the model line is
that it focuses an intense amount of change in a limited time and space,
 which can create challenges for both staff and management. Secondly,
the rest of the organisation is essentially observing the experiment, and
executives will feel the pressure from other areas of the business wanting
access to the same resources. In addition, if the results are not as
dramatic as hoped, the overall change will be put at risk. Despite these
challenges, however, the approach allows a business to generate change
at a sufficient scale and with enough completeness that it can be used as
a springboard to create momentum for change in the rest of the
organisation.
11. Tier

12. Downtime: Period during which an equipment or machine is not

functional or cannot work. It may be due to technical failure, machine
adjustment, maintenance, or non-availability of inputs such as
materials, labor, power. Average downtime is usually built into the price
of goods produced, to recover its cost from the sales revenue. Opposite of
uptime. Also called waiting time.
13. Forest/ wood / tree view:
14. Sequential flow:
15. subtler flow
16. Product variety
17. Product customer matrix
18. Product line matrix
19. Production schedule: is the process of arranging, controlling and
optimizing work and workloads in a production process or
manufacturing process. Scheduling is used to allocate plant and
machinery resources, plan human resources, plan production processes
and purchase materials. It is an important tool for manufacturing and
engineering, where it can have a major impact on the productivity of a
process. In manufacturing, the purpose of scheduling is to minimize the
production time and costs, by telling a production facility when to make,
with which staff, and on which equipment. Production scheduling aims
to maximize the efficiency of the operation and reduce costs. Scheduling
is the process of arranging, controlling and optimizing work and
workloads in a production process. Companies use backward and
forward scheduling to allocate plant and machinery resources, plan
human resources, plan production processes and purchase materials.
Forward scheduling is planning the tasks from the date resources
become available to determine the shipping date or the due date.
Backward scheduling is planning the tasks from the due date or
required-by date to determine the start date and/or any changes in
capacity required.
The benefits of production scheduling include:
Process change-over reduction
Inventory reduction, leveling
Reduced scheduling effort
Increased production efficiency
Labor load leveling
Accurate delivery date quotes
Real time information
Production scheduling tools greatly outperform older manual scheduling
methods. These provide the production scheduler with powerful
graphical interfaces which can be used to visually optimize real-time
 workloads in various stages of production, and pattern recognition allows
the software to automatically create scheduling opportunities which
might not be apparent without this view into the data. For example, an
airline might wish to minimize the number of airport gates required for
its aircraft, in order to reduce costs, and scheduling software can allow
the planners to see how this can be done, by analyzing time tables,
aircraft usage, or the flow of passengers.
Key concepts in scheduling
Key character of scheduling is the productivity, the relation between
quantity of inputs and quantity of output. Key concepts here are:
Inputs: Inputs are plant, labor, materials, tooling, energy and a clean
environment.
Outputs : Outputs are the products produced in factories either for other
factories or for the end buyer. The extent to which any one product is
produced within any one factory is governed by transaction cost.
Output within the factory : The output of any one work area within the
factory is an input to the next work area in that factory according to the
manufacturing process. For example, the output of cutting is an input to
the bending room.
Output for the next factory : By way of example, the output of a paper
mill is an input to a print factory. The output of a petrochemicals plant is
an input to an asphalt plant, a cosmetics factory and a plastics factory.
Output for the end buyer : Factory output goes to the consumer via a
service business such as a retailer or an asphalt paving company.
Resource allocation : Resource allocation is assigning inputs to produce
output. The aim is to maximize output with given inputs or to minimize
quantity of inputs to produce required output.

20. Delivery request.

21. Delivery conditions
22. Range of fluctuations
23. outflow defects
24. In process defects
25. Incoming defects
26. Scrap: Scrap consists of recyclable materials left over from
product manufacturing and consumption, such as parts of vehicles,
building supplies, and surplus materials. Unlike waste, scrap has
monetary value, especially recovered metals, and non-metallic materials
are also recovered for recycling.
27. Rework: the process of removing a component from a product and
then redoing once again.
28. Direct pass ratio. It means the ratio of output produced without
any rework against the total production volume. For example if a factory
produced 100 cars on one day, and at the final car inspection, 1 was
found to have an engine problem, another had a scratch on the paint,
and another had a part missing (= total 3 units needed repair,
replacement, or adjustment), your "Straight Pass Ratio" for the day would
be 97%.
The other definition of direct pass ratio is Direct Pass ratio measures the
percentage of the product passing all quality requirements without
rework. With a high first-pass ratio, costly rework is reduced, allowing
production staff to focus on generating the product, not on fixing it.
Case study: Honda
29. Product design
30. Crossing flows
31. Span of control: Span of control is the term now used more
commonly in business management, particularly human resource
management. Span of control refers to the number of subordinates a
supervisor has.
32. Risk diversification
33. Policy
34. Production batch size
35. Outsourced process.
36. Business outline
37. Route map
38. Stabilization
39. Trend analysis
40. Product leveling.
41. Product meter
42. Line meter
43. Forecast
44. Preliminary notice: In Mechanics lien law a Preliminary Notice (also
known as a Notice to Owner, Materialmens Notice to Owner, Notice of
Furnishing, Contractor/Subcontractors Notice to Owner, and others) is a
notice sent by the general contractor, subcontractor, material men,
equipment lessors or other parties to a construction project not to create
a Mechanics lien but rather to establish the right to file a Mechanics lien
in the event of nonpayment. The distinction is important. If the
Preliminary Notice is sent but the claimant's bill is paid, the Preliminary
Notice has no further legal effect. However, if the bill is not paid the
claimant may now file a Mechanics lien on the owner's property. Most
states do not allow the filing of a Mechanics lien without claimants being
able to prove they first sent a Preliminary Notice.
45. Resource allocation
46. Market flow
47. Window timing
48. daily scheduling
49. Product quantity chart:
50. Runner
51. Repeater
52. Stranger
53. Production sequencing
54. Cleanliness
55. Time management
56. Brain storming.
57. Types of bin and Box
58. Part name
59. Assembly: Assembly, the act of combining components in
manufacturing, or the resulting assemblage.
An assembly line is a manufacturing process (most of the time called a
progressive assembly) in which parts (usually interchangeable parts) are
added as the semi-finished assembly moves from workstation to
workstation where the parts are added in sequence until the final
assembly is produced. By mechanically moving the parts to the assembly
work and moving the semi-finished assembly from work station to work
station, a finished product can be assembled faster and with less labor
than by having workers carry parts to a stationary piece for assembly.
Assembly lines are common methods of assembling complex items such
as automobiles and other transportation equipment, household
appliances and electronic goods.
Consider the assembly of a car: assume that certain steps in the
assembly line are to install the engine, install the hood, and install the
wheels (in that order, with arbitrary interstitial steps); only one of these
steps can be done at a time. In traditional production, only one car
would be assembled at a time. If engine installation takes 20 minutes,
hood installation takes five minutes, and wheels installation takes 10
minutes, then a car can be produced every 35 minutes.

In an assembly line, car assembly is split between several stations, all

working simultaneously. When one station is finished with a car, it
passes it on to the next. By having three stations, a total of three
different cars can be operated on at the same time, each one at a
different stage of its assembly.

After finishing its work on the first car, the engine installation crew can
begin working on the second car. While the engine installation crew
works on the second car, the first car can be moved to the hood station
and fitted with a hood, then to the wheels station and be fitted with
wheels. After the engine has been installed on the second car, the second
car moves to the hood assembly. At the same time, the third car moves to
the engine assembly. When the third cars engine has been mounted, it
then can be moved to the hood station; meanwhile, subsequent cars (if
any) can be moved to the engine installation station.

Assuming no loss of time when moving a car from one station to another,
the longest stage on the assembly line determines the throughput (20
 minutes for the engine installation) so a car can be produced every 20
minutes, once the first car taking 35 minutes has been produced.

60. Machine shop: A machine shop is a room, building, or company

where machining is done. In a machine shop, machinists use machine
tools and cutting tools to make parts, usually of metal or plastic (but
sometimes of other materials such as glass or wood). A machine shop
can be a small business (such as a job shop) or a portion of a factory,
whether a toolroom or a production area for manufacturing. The parts
produced can be the end product of the factory, to be sold to customers
in the machine industry, the car industry, the aircraft industry, or
others. In other cases, companies in those fields have their own machine
shops.
The production can consist of cutting, shaping, drilling, finishing, and
other processes. The machine tools typically include metal lathes, milling
machines, machining centers, multitasking machines, drill presses, or
grinding machines, many controlled with CNC. Other processes, such as
heat treating, electroplating, or painting of the parts before or after
machining, are often done in a separate facility. A machine shop can
contain some raw materials (such as bar stock for machining) and an
inventory of finished parts. These items are often stored in a warehouse.
A machine shop can be a capital intensive business, because the
purchase of equipment can require large investments. A machine shop
can also be labour-intensive, especially if it is specialized in repairing
machinery on a job production basis, but production machining (both
batch production and mass production) is much more automated than it
was before the development of CNC, PLC, microcomputers, and robotics.
It no longer requires masses of workers, although the jobs that remain
 tend to require high talent and skill. Training and experience in a
machine shop can both be scarce and valuable.
61. Quality
62. cost
63. Delivery
64. Productivity
65. Workload
66. Tier
67. Flow
68. Push and Pull Method.
Pull System
1. In manufacturing: the production of items only as demanded to
replace those taken.
2. In material control: withdrawal of inventory as demanded by a user.
Material is not issued until a signal is received from the user.
3. In distribution: a system for replenishing field warehouse inventories
where replenishment decisions are made at the field warehouse itself and
not at the central warehouse or plant.
69. Customer requirements
70. Organization goals and strategy
71. KAIZEN
72. PPC
73. Safety
74. Shared processes
75. System
76. Staff
77. Shorter distance
78. Space creation
79. Skill
80. Transformation
81. Maintenance
82. Preventive maintenance
83. MTBf( Mean time between failures)
Mean time between failures (MTBF) is the predicted elapsed time between
inherent failures of a system during operation.[1] MTBF can be
calculated as the arithmetic mean (average) time between failures of a
system. The term is used in both plant and equipment maintenance
contexts.

The definition of MTBF depends on the definition of what is considered a

system failure. For complex, repairable systems, failures are considered
to be those out of design conditions which place the system out of service
and into a state for repair. Failures which occur that can be left or
maintained in an unrepaired condition, and do not place the system out
of service, are not considered failures under this definition.[2] In
addition, units that are taken down for routine scheduled maintenance
or inventory control are not considered within the definition of failure.[3]

Mean time between failures (MTBF) describes the expected time between
two failures for a repairable system, while mean time to failure (MTTF)
denotes the expected time to failure for a non-repairable system. For
example, three identical systems starting to function properly at time 0
are working until all of them fail. The first system failed at 100 hours, the
second failed at 120 hours and the third failed at 130 hours. The MTBF
of the system is the average of the three failure times, which is 116.667
hours. If the systems are non-repairable, then their MTTF would be
116.667 hours.

In general, MTBF is the "up-time" between two failure states of a

repairable system during operation as outlined here:
For each observation, the "down time" is the instantaneous time it went
down, which is after (i.e. greater than) the moment it went up, the "up
time". The difference ("down time" minus "up time") is the amount of time
it was operating between these two events.

Once the MTBF of a system is known, the probability that any one
particular system will be operational at time equal to the MTBF can be
calculated. This calculation requires that the system is working within its
"useful life period", which is characterized by a relatively constant failure
rate (the middle part of the "bathtub curve") when only random failures
are occurring. Under this assumption, any one particular system will
survive to its calculated MTBF with a probability of 36.8% (i.e., it will fail
before with a probability of 63.2%). The same applies to the MTTF of a
system working within this time period.[4][5]

MTBF value prediction is an important element in the development of

products. Reliability engineers and design engineers often use reliability
software to calculate a product's MTBF according to various methods
and standards (MIL-HDBK-217F, Telcordia SR332, Siemens Norm,
FIDES,UTE 80-810 (RDF2000), etc.). The Mil-HDBK-217 reliability
calculator manual in combination with RelCalc software (or other
 comparable tool) enables MTBF reliability rates to be predicted based on
design.

A concept which is closely related to MTBF, and is important in the

computations involving MTBF, is the mean down time (MDT). MDT can
be defined as mean time which the system is down after the failure.
Usually, MDT is considered different from MTTR (Mean Time To Repair);
in particular, MDT usually includes organizational and logistical factors
(such as business days or waiting for components to arrive) while MTTR
is usually understood as more narrow and more technical.

Formal definition of MTBF and MDT[edit]

By referring to the figure above, the MTBF of a component is the sum of
the lengths of the operational periods divided by the number of observed
failures:

84. MTTR( mean time to repair)

85. Quick reaction to quality concerns
86. Layout
87. efficiency
88. cell: A close arrangement of people and machines in a processing
sequence to facilitate flow. An approach to producing a family of parts or
products on a dedicated line with dedicated operators
a. Functional layouts are rearranged into process oriented cells.
b. Machines and workstations are linked.
 c. Layouts are designed for efficient flow.
d. All operator requirements are close by.

Production cell:

89. Line
90. Order fluctuation
91. Internal variation
92. Delivery synchronization
93. Production synchronization
94. Advanced product quality panning
95. manpower deployment
96. KRA and KPI
97. Human productivity
98. Cycle time
99. Pattern
100. Sequence
101. Batch manufacturing
102. Batch flow

103. Single piece flow

104.