Table Of ContentMACMILLAN
DICTIONARY
OF
PRODUCTION
MANAGEMENT &
TECHNOLOGY
MACMILLAN
DICTIONARY
OF
PRODUCTION
MANAGEMENT
&
TECHNOLOGY
John Bessant
Richard Lamming
M
© Palgrave Macmillan, a division of Macmillan Publishers Limited, 1990
Softcover reprint of the hardcover 1st edition 1990 978-0-333-39057-3
All rights reserved. No reproduction, copy or transmission
of this publication may be made without written permission.
No paragraph of this publication may be reproduced,
copied, or transmitted save with written permission or in
accordance with the provisions of the Copyright, Designs
and Patents Act 1988, or under the terms of any licence
permitting limited copying issued by the Copyright
Licencing Agency, 33-4 Alfred Place, London WCIE 7DP.
Any person who does any unauthorised act in relation to
this publication may be liable to criminal prosecution and
civil claims for damages.
First edition published 1989 by
THE MACMILLAN PRESS LTD
London and Basingstoke
Associated companies in Auckland, Delhi, Dublin,
Gaborone, Hamburg, Harare, Hong Kong, Johannesburg,
Kuala Lumpur, Lagos, Manzini, Melbourne, Mexico City,
Nairobi, New York, Singapore, Tokyo.
British Library Cataloguing in Publication Data
Lamming, Richard
Macmillan dictionary of production management
and technology
I. Production management
I. Title II. Bessant, J.R. (John Robert), 1952-
658.5
ISBN 978-1-349-07944-5 ISBN 978-1-349-07942-1 (eBook)
DOl 10.1007/978-1-349-07942-1
Preface
In writing a dictionary of Production Management and Technology, one is
faced with the task of combining heady concepts such as electronic data
interchange and manufacturing strategy with the basic techniques of milling
and honing. On the one hand there is the concept of Shojinka, on the other the
principles of investment casting. It has been our intention to concentrate on the
management aspects of the subject but it has proven necessary to include many
of the more basic concepts. Since the dictionary is intended to be of interest and
practical use to industrial managers and students of engineering and business
alike, we have tried to cover as broad a scope as possible. Nevertheless, we
have dealt with the engineering principles of manufacturing to a lesser extent
than many text books and the reader is referred to them for detailed
investigation.
The field of Production Management and Technology has changed funda
mentally in the last ten years, with many 'established' concepts turned upside
down by new competitive threats. It is our hope that this book, without lapsing
into 'fads', will help the reader to understand many of the new and strange
concepts.
John Bessant
Richard Lamming
Brighton June 1990
A
ABC. ACTIVITY BASED COSTING. annual materials spend. This infor
mation may be used in stock control
policies: comparing the cost of stock
ABC classification. In STOCK control with the items being managed.
CONTROL, a process whereby com Stock levels may be rationalized
ponents, sub-assemblies and other accordingly. Typically, such an analy
items are classified, usually by annual sis reveals that 20 percent of items
usage value. By multiplying the piece account for 80 percent of total
price and quantity used per year, the materials spend. These are then called
annual usage value of each item of 'A class items' and are usually con
stock held can be calculated. This is trolled by the most sophisticated stock
expressed as a percentage of the total control systems, in order to eliminate
Cumulative
annual
spend on
materials
%
A
class
items
0~------2-0r~0---------4-5+~0-------~M~ru-er~ia~l~ite-m~s~
ABC analysis
2 abrasives
excess inventory values, and STOCK absolute physical parts control. A
OUTS. A further 25 percent of items manufacturing management concept
account for another 15 percent of \\ '1ich creates a physical path for
annual material spend, and are called w ) rkpieces through the production
'B class items', controlled by less art: such that at all times it is imposs
expensive methods. The remainder ible for them to be diverted. In this
are 'C class items' and may be con way, the levels of WORK IN PRO
trolled by the simplest methods, such GRESS can be very tightly controlled,
as TWO-BIN METHOD. See PARETO and unplanned activities eliminated.
ANALYSIS.
abrasives. Materials used in surface absorption costing. Principle whereby
finishing, especially high quality the costs of a product are calculated
finishes (e.g. grinding). The materials on the basis of all the different types
consist of grains of abrasive (e.g. crys of production cost - fixed, variable
talline aluminium oxide, silicon car and semi-variable - being grouped
bide, diamond, etc.) set into a bond together. Each activity in the business
material (e.g. rubber, vitreous ma is categorised under a COST CENTRE
terial, metal, silicate, resin, etc.). The and all the different costs associated
size and pattern of the grains or grit is with that activity are brought together
designed to produce a desired finish - (absorbed) into a single product cost.
actually a series of fine scratches. See
GRINDING, HONING, and LAPPING.
acceptable quality level (AQL). A
abrasive cutoff. Use of a thin grinding
level of quality of manufactured com
wheel as a precise circular saw, to give
ponents, generally expressed as defec
an accurate parting-off or incision in
tive items as a proportion of total
a workpiece (especially rotational).
output, which the company has
Many specialized variations exist, for
example abrasive BANDSAw s.
Frequency
abrasive flow machining. A technique
for finishing internal surfaces (e.g.
Su
drilled holes) by flushing with abrasive
liquids under pressure.
absolute. Reference to the origin in a
measurement system. For example,
absolute dimensions of a point are
Quality parameter
those referenced from the origin of
the X and Y scales. AQL
The proportion of good output (between lower
and upper specification limits SL and Su) is con
absolutes of quality. See CROSBY. sidered an acceptable level.
accuracy 3
deemed acceptable in the light of the sidered to be under control. Also used
production process involved. This in ACCEPTANCE SAMPLING.
concept is generally regarded as
defunct, since competitive pressures acceptance sampling. Decision
in manufacturing industries now mean making technique in QUALITY
that the only 'acceptable' quality level CONTROL concerned with the accept
is ZERO DEFECTS. Before these ance or rejection of a batch of parts.
pressures, engineering manufacturers The decision is based upon the results
in the West might set an AQL of, say, of tests made on a sample taken from
5 percent defective. Since the early the batch and subsequent statistical
1980s, the same manufacturers have inference. The results are compared
had to contend with actual defect with predetermined standards, using
rates of a few parts per million (e.g. ACCEPTANCE CONTROL CHARTS.
Japanese engineering manufacturers; The acceptance or rejection is thus
figures from electronics manufac made with an agreed degree of cer
turers are often even better). See tainty - derived from the statistical
TOTAL QUALITY CONTROL. inference.
access time. A measure of the speed
acceptance control chart. Chart used of storage and retrieval of data, espe
in STATISTICAL PROCESS CONTROL cially in a computerized system.
to record statistical data about the
output from a specific stage in the accuracy. The degree to which some
process. The decision to accept the thing conforms to a standard. The ob
process output, based upon these server's ability to read an instrument,
data, signifies that the process is con- the instrument's condition, and the
Accuracy versus Precision
e.g. Measuring the length of a workpiece, taking a sample of 4 every hour.
Desired sample mean = 4.50 em.
Sample Measurements
1 2 3 4 mean
1 4.40 4.50 4.60 4.50 4.50
2 4.37 4.52 4.40 4.71 4.50
3 4.35 4.80 4.31 4.54 4.50
4 4.31 4.71 4.76 4.22 4.50
etc etc.
precision of machining is but accuracy of sample
clearly deteriorating mean is maintained
4 A CLASS MRP 11-user
environment in which the reading is action plate method. The Nissan term
taken, all affect the accuracy of the for KANBAN. (The term 'kanban' was
reading. This is not the same as developed by Toyota- Nissan natur
PRECISION. ally chose its own name for the
technique.)
A CLASS MRP H-user. A term activation. Chemical process used to
invented by the American consultant, prepare a metal surface for treatment
Oliver Wight, to encourage firms to (e.g. plating). The counter process is
implement MANUFACTURING RE PASSIVATION.
SOURCES PLANNING in a thorough
manner, increasing the chances of suc activity based costing. (ABC).
cessful adoption. To become an A Approach to production cost account
Class user, a firm had to 'score' at ing which differs from the tradition
least 23 points out of a possible 25 on ally used principles of ABSORPTION
Wight's questionnaire, regarding such COSTING, in which overheads are re
items as DATA INTEGRITY, strategic covered by spreading them over all
approach to MRP II, use of specific production according to some pre
parts of the program (CAPA CITY determined formula. ABC, by con
RESOURCES PLANNING etc.). Whilst trast, aims to attribute costs more
it was seen cynically by some as a sales directly to each individual activity as
gimmick for Wight's consultancy (a they are incurred.
prime mover in the spread of MRP
activity on arrow. A form of
II), the prestige attached to being an
A Class MRP II user was and is NETWORK plan in which the activities
are represented as arrows.
attractive to firms, and is sought after.
Wight classified Classes A to D as:
activity on node. A form of
Class D: - Not using Materials
NETWORK plan in which the activities
Requirement Planning {MRP)
are represented as the modes between
Class C: - Only using MRP as an
the arrows.
order-launching and expediting
system
actuator. A device which transfers an
Class B: - Using MRP as a electrical or physical signal into an
Production and Inventory Control impulse or physical force. Used within
System, but relying on other systems a control system to provide active
(such as SHORTAGE sheets, etc.) to output.
effect control. (At least 20 out of 30
on the questionnaire. acoustic testing. A method of testing
Class A:- Using MRP II as a busi the strength or soundness of joints in
ness planning strategic tool. structures by using acoustic vibrations
as an input. The output (resonance,
vibrations, cracking etc.) is measured
action line. See PROCESS CHARTS. and compared with standard data to
ALGOL 5
determine the acceptability of the each stage, is an important pre
structure. Usually non-destructive. requisite to efficient design and man
agement of that process. See JUST
IN-TIME, MUDA.
adaptive control. A system of auto
matic monitoring and adjustment
adhesives. Bonding substances.
which enables changes to be made in
Adhesives are increasingly being con
operating parameters in equipment,
sidered as alternatives to other joining
to reflect changes in operating con
processes such as welding and fasten
ditions. The system decides which op
ing. This is encouraged by the use of
erating parameters (e.g. cutting tool
ceramics and plastics to replace metals
position, coolant feed etc.) to adapt in
in many products (e.g. vehicles, con
order to allow for changes in con
sumer durables, etc.). The main
ditions, such as tool wear, overheating
classes are: natural adhesives (gums,
etc. See IN-PROCESS GAUGING.
starches, etc.), chemical adhesives
formed from inorganic substances
(sodium silicate), and synthetic ad
Product Pric e
hesives made from organic chemicals
Profit
(elastomers, resins, etc.).
Sales and
administration Advanced Manufacturing Technology
Added Value ~ costs (AMT). Term used to indicate a com
prehensive approach to a reassess
Overhead ment of manufacturing, employing all
new hardware, software and human
Labour
resource technologies.
Material AGV. AUTOMATIC GUIDED
VEHICLE.
AIAG. Automotive Industry Action
Added value
Group (USA).
ALGOL. High-level computer lan
guage, the name of which is derived
added value (value added). The in from the term 'algorithmic language'.
crease in the value of a product as It was originally developed in the
operations are carried out upon ma 1950s, with later versions being
terials and the physical form is labelled by their year of introduction
altered. Analysis of a production pro (e.g. Algol 58, Algol 60 etc.). It has
cess, to provide an understanding of now been largely superseded by more
how much value is being added at powerful languages, such as PASCAL.
