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IT 371
Chapter 20
8
Business
Undergraduate 3
06/07/2011

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Term
Synchronous manufacturing
Definition
A production process coordinated to work in harmony to achieve the goals of the firm.
Term
Throughput
Definition
The rate at which money is generated by the system through sales (Goldratt's definition).
Term
Inventory
Definition
All the money that the system has invested in purchasing things it intends to sell (Goldratt's definition).
Term
Operating expenses
Definition
All the money that the system spends to turn inventory into throughput (Goldratt's definition).
Term
Productivity
Definition
All the actions that bring a company closer to its goals (Goldratt's definition).
Term
Bottleneck
Definition
Any resource whose capacity is less than the demand placed upon it (Goldratt's definition).
Term
Nonbottleneck
Definition
Any resource whose capacity is greater than the demand placed on it (Goldratt's definition).
Term
Capacity-constrained resource (CCR)
Definition
A resource whose utilization is close to capacity and could be a bottleneck if not scheduled carefully (Goldratt's definition).
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