Term
| Acceptable Quality Level (AQL) |
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Definition
A concept of quality control whereby managers are
willing to accept a certain level of production defects, which are dealt with through
repair facilities and service centers |
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Term
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Definition
The use of the Internet to join together suppliers with companies and
companies with customers |
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Term
| Electronic Data Interface (EDI) |
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Definition
The electronic movement of money and
information via computers and telecommunications equipment |
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Term
| Enterprise Resource Planning (ERP) |
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Definition
Software that can link information flows from
different parts of a business and from different geographic areas |
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Term
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Definition
| The use of the Internet to link a company with outsiders |
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Term
| Foreign Trade Zones (FTZs) |
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Definition
A government designated area in which goods can
be stored, inspected, or manufactured without being subject to formal customs
procedures until they leave the zone |
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Term
| ISO (International Organization of Standardization) |
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Definition
An international non-
governmental organization headquartered in Geneva that publishes industrial and
commercial standards |
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Term
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Definition
The use of Internet to link together the different divisions and functions
inside a company |
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Term
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Definition
That part of the supply chain process that plans, implements, and
controls the efficient, effective flow and storage of goods, services, and related
information from the point of origin to the point of consumption, to meet customers’
requirements; sometimes called materials management |
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Term
| Offshoring/Offshore Manufacturing |
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Definition
the process of shifting production to a foreign
country |
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Term
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Definition
Where one company contracts with another company to perform
certain functions, including manufacturing and back office operations. May be done
in or close to the company’s name country (near shore) or in another country (off
shoring) |
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Term
| Private Technology Exchange (PTX) |
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Definition
An online collaboration model that brings
manufactures, distributors, value-added resellers, and customers together to
execute trading transaction and to share information about demand, production, availability, and more. |
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Term
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Definition
Meeting or exceeding the expectations of a customer. -the conformance to specifications, value, fitness for use, support (provided
by the company), and psychological impressions (image) |
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Term
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Definition
A highly focused system of quality control that uses data and rigorous
statistical analysis to identify “defects” in a process or product, reduce variability,
and achieve as close to zero defects as possible |
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Term
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Definition
The strategy that a company pursues in purchasing materials,
components, and final products; sourcing can be from domestic and foreign
locations and from inside and outside the company |
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Term
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Definition
The coordination of materials information, and funds from the initial
raw material supplier to the ultimate customer |
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Term
| (TQM) Total Quality Control |
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Definition
The process that a company uses to achieve
quality, where the goal is elimination of all defects |
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Term
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Definition
The control of the different stages as a product moves from raw
materials through production to final distribution |
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Term
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Definition
The elimination of defects, which results in the reduction of
manufacturing costs and an increase in consumer satisfaction |
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Term
| The four key factors in manufacturing strategy... |
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Definition
Compatibility
Configuration
Coordination
Control |
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Term
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Definition
The degree of consistency between the foreign investment decision and the
company’s competitive strategy |
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Term
| Company Strategies that managers must consider... |
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Definition
o Efficiency/cost- reduction of manufacturing costs
o Dependability- degree of trust in a company’s products, its delivery,
and maintenance quality of the product(s)
o Quality- performance reliability, service quality, speed of delivery, and
maintenance quality of the product(s)
o Innovation- ability to develop new products and ideas
o Flexibility- ability of the production process to make different kinds of
products and to adjust the volume of output |
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Term
| Total Cost Analysis (for efficiency/cost) |
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Definition
an in-dept assessment of the complete cost of a
transaction that takes into account acquisition, ownership, and disposal costs |
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Term
| Dependable Strategies (for efficiency/cost) |
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Definition
The growing customer demand for dependability
and prompt deliveries has caused companies to locate plants closer to
customers rather than in low-wage areas |
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Term
| Innovation and Quality Strategies (for efficiency/cost) |
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Definition
When companies invest abroad to take
advantage of low-cost labor, they are not as concerned about innovation.
But as more and more companies establish R&D facilities abroad, they will
be able to move beyond low-end manufacturing. If foreign operations can
ensure high quality and contribute to innovation, companies will continue to
set up operations abroad. |
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Term
| Flexibility Strategies (for efficiency/cost) |
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Definition
The need for flexibility because of differences in
national markets may result in a regional manufacturing to service local
markets. It may not be possible to produce all products in one location and
ship them around the world. |
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Term
| Centralized Manufacturing Configuration |
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Definition
-Centralized manufacturing in one country
-Offers a selection of standard, lower-priced products to different
markets |
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Term
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Definition
manufacturing facilities in specific regions to
service those reasons |
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Term
| Multi-domestic Facilities |
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Definition
-Companies manufacture products close to their customers, using
country-specific manufacturing facilities to meet local needs |
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Term
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Definition
| specialize in the production of parts or final goods |
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Term
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Definition
| linking or integrating activities into a unified system |
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Term
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Definition
control systems, such as organizational structure and performance
measurement systems, ensure that managers implement company strategies |
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Term
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Definition
this encompasses the idea that the responsibility for quality
resides within the policies and practices of managers |
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Term
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Definition
a global set of quality standards intended to promote quality at
every level of an organization |
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Term
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Definition
| a quality standard concerned with environmental management |
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Term
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Definition
buyers and suppliers locate in close proximity to each
other to facilitate doing business |
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Term
| Materials Requirements Planning (MRP) |
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Definition
| A computerized information system that addresses complex inventory situations and calculates the demand for parts from the production schedules of the companies that use those parts. |
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Term
| RFID (Radio Frequency ID) |
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Definition
| a system that labels products with an electronic tag, which stores and transmits information regarding the product's origin, destination, and quantity. |
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Term
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Definition
| Identifying problems enlisting employees at all levels of the organization to help eliminate problems. The key is to make continuous improvement a part of the daily work of every employee. |
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Term
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Definition
| a group of independent companies that work together to manage the flow of goods and services along the entire value chain. |
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Term
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Definition
| the choice of whether to outsource or to supply parts from internal production. |
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Term
| The four phases of purchasing before a company goes "global": |
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Definition
| Domestic purchasing only --> Foreign buying based on need --> Foreign buying as part of procurement strategy --> Integration of global procurement strategy. |
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Term
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Definition
| a productive system whose focus is on optimizing processes through the philosophy of continual improvement. |
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Term
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Definition
| "Card" system. A system in which cards are used to control the flow of production through a factory. |
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Term
| Short-term Expatriate assignments |
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Definition
| Expatriate assignments lasting less than a year. They are less common than a decade ago. |
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Term
| (ILO) International Labor Organization |
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Definition
| Founded in 1919 on the premise that the failure of any country to adopt humane labor conditions impedes other countries' efforts to improve their own conditions. |
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Term
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Definition
| The principle of codetermination emphasizes cooperative decision making within firms that benefits both the workers and the company. |
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