Magnetic
Stripe:
Layer of ferromagnetic material bonded to a non-magnetic carrier, usually
plastic, as in credit cards, to store information electronically. Often referred
to as mag stripe.
Make-to-Order:
A supplier's approach to plant production in which a product is made
after receipt of a retailer's order. It often involves custom design to meet
customer needs. See Assemble-to-Order and Make-to-Stock.
Make-to-Stock:
An approach to production in which a supplier guesses at demand and
makes products in advance accordingly. Also called make-to-forecast. Often,
customer orders are shipped from existing stocks, and production replenishes
those stocks as needed. See Assemble-to-Order, Make-to-Order.
Manufacture
Cycle Time: The
average time between commencement and completion of a manufacturing process,
as it applies to make-to-stock products. Calculation:
[Average # of units in WIP] / [Average daily output in units]
Manufacturing
Capital Asset Value: The
asset value of the "Manufacturing fixed assets" after allowance for depreciation.
Examples of equipment are SMT placement machines, conveyors, Auto guided vehicles,
robot cells, testers, X-ray solder machines, Burn-in chambers, Logic testers,
Auto packing equipment, PLC station controllers, Scanning equipment, PWB magazines.
Manufacturing
Execution System:
A factory floor information and communication system enabling resource
allocation, detailed scheduling, document control, data collection and acquisition,
labor management, quality management, process management, maintenance management,
order tracking, WIP status, and performance analysis. Manufacturing Requirements
Planning (MRP I): A supplier's system for planning all
production and procurement resources, but not labor, distribution, etc. See
manufacturing resource planning (MRP II).
Manufacturing
Lead Time: The
total time required to manufacture an item, exclusive of lower level purchasing
lead time. For make-to-order products, it is the length of time between the
release of an order to the production process and shipment to the final customer.
For make-to stock products, it is the length of time between the release of
an order to the production process and receipt into finished goods inventory.
Included here are order preparation time, queue time, setup time, run time,
move time, inspection time, and put-away time. Synonyms: Manufacturing
Cycle Time. Also see: Lead Time
Manufacturing
Resource Planning (MRP II): A
method for the effective planning of all resources of a manufacturing company.
Ideally, it addresses operational planning in units, financial planning in
dollars, and has a simulation capability to answer what- if questions. It
is made up of a variety of processes, each linked together:
business planning, production planning (sales and operations planning),
master production scheduling, material requirements planning, capacity requirements
planning, and the execution support systems for capacity and material. Output
from these systems is integrated with financial reports such as the business
plan, purchase commitment report, shipping budget, and inventory projections
in dollars. Manufacturing resource planning is a direct outgrowth and extension
of closed-loop MRP.
Mapping:
A
computer term referring to diagramming data that is to be exchanged electronically,
including how it is to be used and what business management systems need it.
Preliminary step for developing an applications link. Performed by the functional
manager responsible for a business management system.
Mapping
Software:
See EDI Mapping Software.
Marginal
Cost: The
cost to produce one additional unit of output. The change in total variable
cost resulting from a one-unit change in output.
Markdown
Plan:
Planned reductions (or, in some cases, increases) in the selling price
of an article within a particular period. A markdown plan can also contain
the planned sales quantities and volumes.
Market
Basket Analysis:
Studying what items consumers often purchase together to improve cross
promotion, in-store layouts and displays, and promotional strategies.
Market
Demand: In
marketing, the total demand that would exist within a defined customer group
in a given geographical area during a particular time period given a known
marketing program.
Mass
Customization:
A highly streamlined and flexible approach to production that enables
quick and efficient production of customized products and/or services at low
cost and high volume.
Master
Pack:
Carton received that contains more than one warehouse pack or shipping
unit inside it. This is very common in certain orders,
such as imports.
Master
Production Schedule (MPS):
The schedule that determines which products a manufacturer produces
in which volumes at which dates.
MAT:
Merchandising-Advertising Technology. Systems that produce catalogs,
supplements, ROP ads, in-store signage, etc.
Material
Acquisition Costs: One
of the elements comprising a company's total supply-chain management costs.
These costs consist of the following: 1. Materials (Commodity)
Management and Planning: All costs associated with supplier
sourcing, contract negotiation and qualification, and the preparation, placement,
and tracking of a purchase order. We recognize that these functions may be
organizationally dispersed and/or decentralized, but ask you to group all
related costs for purposes of this study. Also, this category includes all
costs related to buyer/planners. 2. Supplier Quality Engineering:
The costs associated with the determination, development/certification,
and monitoring of suppliers' capabilities to fully satisfy the applicable
quality and regulatory requirements. 3. Inbound Freight and Duties:
Freight costs associated with the movement of material from a vendor
to the buyer and the associated administrative tasks. Duties are those fees
and taxes levied by government for moving purchased material across international
borders. Customs broker fees should also be considered in this category. 4.
Receiving and Material Storage: All costs associated
with taking possession of material. This does not include inspection. Note
that inventory-carrying costs are covered in a subsequent worksheet. 5. Incoming
Inspection: All costs associated with the inspection
and testing of received materials to verify compliance with specifications.
6. Material Process and Component Engineering: Those
tasks required to document and communicate component specifications, as well
as reviews to improve the manufacturability of the purchased item. 7. Tooling:
Those costs associated with the design, development, and depreciation
of the tooling required to produce a purchased item. A tooling cost would
be incurred by a company if they actually paid for equipment and/or maintenance
for a contract manufacturer that makes their product. Sometimes, there aren't
enough incentive for a contract manufacturer to upgrade plant equipment to
a level of quality that a company requires, so the company will pay for the
upgrades and maintenance to ensure high quality. May not be common in some
industries such as the Chemicals
Material
Safety Data Sheet (MSDS): A
document that is part of the materials information system and accompanies
the product. Prepared by the manufacturer, the MSDS provides information regarding
the safety and chemical properties and (if necessary) the long-term storage,
handling, and disposal of the product. Among other factors, the MSDS describes
the hazardous components of a product; how to treat leaks, spills, and fires;
and how to treat improper human contact with the product. Also see:
Hazardous Materials
Materials
Handling: The
physical handling of products and materials between procurement and shipping.
Materials
Management: Inbound
logistics from suppliers through the production process. The movement and
management of materials and products from procurement through production.
Materials
Requirements Planning (MRP): A
decision-making methodology used to determine the timing and quantities of
materials to purchase.
Matrix
Organizational Structure: An
organizational structure in which two (or more) channels of command, budget
responsibility, and performance measurement exist simultaneously. For example,
both product and functional forms of organization could be implemented simultaneously,
that is, the product and functional managers have equal authority and employees
report to both managers.
MAU:
Multi-station
Access Unit: A connection in a token ring LAN.
MaxiCode:
A 2-dimensional bar-code symbology that encodes large volumes of data.
It is a standard for fast auto-sortation, and was developed by UPS.
Maximum
Inventory: The
planned maximum allowable inventory for an item based on its planned lot size
and target safety stock.
Maximum
Order Quantity: An
order quantity modifier, applied after the lot size has been calculated, that
limits the order quantity to a preestablished maximum.
MBO:
Management Buy Out. John Harvey led an MBO of TBG from Unilever/VGL in 1984!
Mean:
The
arithmetic average of a group of values. Syn: arithmetic
mean.
Median:
The
middle value in a set of measured values when the items are arranged in order
of magnitude. If there is no single middle value, the median is the mean of
the two middle values.
MES:
See Manufacturing Execution System.
Message:
The
EDIFACT term for a transaction set. A message is the collection of data, organized
in segments, exchanged by trading partners engaged in EDI. Typically, a message
is an electronic version of a document associated with a common business transaction,
such as a purchase order or shipping notice. A message begins with a message
header segment, which identifies the start of the message (e.g., the series
of characters representing one purchase order). The message header segment
also carries the message type code, which identifies the business transaction
type. EDIFACT's message header segment is called UNH; in ANSI X12 protocol,
the message header is called ST. A message ends with a message trailer segment,
which signals the end of the message (e.g., the end of one purchase order).
EDIFACT's message trailer is labeled UNT; the ANSI X12 message trailer is
referred to as SE.
Metadata:
Information about the data in a database or data warehouse:
what it is, where it is, where it came from, its original format, how
it was collected, how it was cleansed, etc.
MHE:
Mechanical Handling Equipment (see also FLT, HPT, PPT, HLOP, etc.)
Microfilm:
The process of filming documents. Copies of the
documents may be retrieved if needed.
Micro-Marketing:
Customizing each store's assortments, SKU quantities, promotions, and/
or introductions to fit each store's local pattern of demand.
Micro-Merchandising:
A subset of micro-marketing focused on customizing assortments, quantities,
and displays for each store.
Milk
run: A
regular route for pickup of mixed loads from several suppliers. For example,
instead of each of five suppliers sending a truckload per week to meet the
weekly needs of the customer, one truck visits each of the suppliers on a
daily basis before delivering to the customer's plant. Five truckloads per
week are still shipped, but each truckload contains the daily requirement
from each supplier. Also see: Consolidation
Min-Max
System:
A simple replenishment system in which inventory level falling to the
"min" (minimum) triggers an order of whatever quantity will reach the "max"
(maximum) level.
MIS:
Management information systems. The department or group of people focused
on a company's information systems. See IS.
Mixed
Case:
A case that contains multiple SKUs. Mixed Pallet: A
pallet that contains cases of different SKUs.
MOA:
Memorandum
Of Agreement
Mobile:
as in "M-Commerce" (electronic shopping on the move).
Mode
Quantity: Modulator-Demodulator.
An optional two-way communication device which changes the form, bi-directionally,
of data transmission signals.
Modem:
Modulator-Demodulator.
An optional two-way communication device which changes the form, bi-directionally,
of data transmission signals. The modem can be either
a direct-connect (hardwired into the telephone system) or acoustic (using
a telephone handset) system.
Moving
Beam Bar Code Reader:
Scanner in which the motion is achieved by mechanically moving the
optics.
mpg:
miles per gallon
mph:
miles per hour
MPS:
Master Production Scheduling
MPT:
Manpower, Personnel and Training
MPV:
Multipurpose Vehicle
MR:
Materials
Replenishment
MRO:
Maintenance, repair, and operating supplies. A category of inventory
including office supplies and diverse other items not part of the critical
products on which a purchasing department typically focuses.
MRP:
Manufacturing
Requirements Planning (AKA"Manufacturing Resource Planning"):
production-led planning technique seen as precursor to JIT. Now revived
as MRP II. See also DRP.
MRP
II:
See Manufacturing Resources Planning.
MSDS:
See
Material Safety Data Sheet
MU
Merchandisable Unit: usually a dolly or wheeled
carrier that is loaded with pre-merchandised product straight off the production
line, but which travels right through the supply chain to the store sales
area.
Multi-Dimensional
Database:
Database cross-referenced by more than tabular rows and columns. Many
data warehouses are being constructed using multi-dimensional databases.
Mux
or Multiplexer:
Device that supports multiple polling data collection (as for getting
POs and payroll data from each store) using scheduling schemes.
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Copyright 2004. Media Services, Calgary Board of Education. All rights reserved