EM-01

OPERATIONS CONTROL

Inventory - is a quantity of raw materials, in-process goods or finished goods on hand, serves as a buffer between
different rates of flow associated with the operating system.

ABC classification system - is a method of managing inventories based on their total value.

White elephant - is a term which used to describe the immobile items of the inventory.

Safety stocks - is an inventory maintained to accommodate unexpected changes in demand and supply and to allow
for delivery time.

Economic order quantity - is the optimum number of units to be ordered at one time.

Quality control - is a process of ensuring or maintaining a certain level of quality for materials, products, or services.

Acceptance sampling - is a statistical method of predicting the quality of a batch or large group of products by
inspecting a sample or group of samples.

Process control chart - is a time-based, graphic display which shows whether a machine or process is producing
items that meet certain pre established specifications.

Quality circle - are members of a work unit who meet on a regular basis to discuss quality problems and generate
ideas improving quality.