Industry Terminology

Num A B C D E F G H I J K L M N O P Q R S T U V W




T&C: Terms & Conditions


T/S: Terms of Sale


T1: A leased line with much higher capacity for data communications than a standard telephone line; its bandwidth is 1.544 million bits/sec in the USA (2.054 MB/sec in Europe). A T3 leased line has a capacity of 44 MB/sec.


TACA: Trans-Atlantic Conference Agreement


Tactical Planning: The process of developing a set of tactical plans (e.g., production plan, sales plan, marketing plan, and so on). Two approaches to tactical planning exist for linking tactical plans to strategic plans: production planning and sales and operations planning. See: Sales and operational planning, strategic planning.


Tare Weight: The weight of a substance, obtained by deducting the weight of the empty container from the gross weight of the full container.


Target Costing: A target cost is calculated by subtracting a desired profit margin from an estimated or a market-based price to arrive at a desired production, engineering, or marketing cost. This may not be the initial production cost, but one expected to be achieved during the mature production stage. Target costing is a method used in the analysis of product design that involves estimating a target cost and then designing the product/service to meet that cost. Also see: Value Analysis


Target Stock: Level to which the stock of an article at a customer is filled up by the replenishment process, either defined manually or calculated by a forecast.


Tariff: A tax assessed by a government on goods entering or leaving a country. The term is also used in transportation in reference to the fees and rules applied by a carrier for its services.


Tasks: The breakdown of the work in an activity into smaller elements.


TBC: To Be Confirmed


TCP/IP: (Transmission Control Protocol/Internet Protocol): The protocols for the Internet.


Technical Components: Component (part) of a product for which there is a limited number of suppliers. These parts are hard to make, and require much more lead time and expertise on the part of the supplier to produce than standard components do.


Telxon: . (pronounced Tel-zon) A handheld, battery operated, portable mini-computer terminal with a wand unit for scanning bar-coded shelf labels.


Terms and conditions (T's& C's): All the provisions and agreements of a contract.


TES: Technology-Enabled Selling: using information technology as an enabler in all types of selling.


Theory of Constraints (TOC): A management philosophy popular among some suppliers involving techniques for logistics, performance measurement, and logic. Logistics involves drum-buffer-rope scheduling, buffer management, and VAT analysis. Performance measurement involves throughput, inventory and operating expense, and five focusing steps. Logic techniques help identify the root problem (current reality tree), create win/win solutions (evaporating cloud and future reality tree), and plan implementation (prerequisite tree and transition tree).


Thin Client: See Network Computer.


Third Party Logistics Provider: A firm which provides multiple logistics services for use by customers. Preferably, these services are integrated, or "bundled" together by the provider. These firms facilitate the movement of parts and materials from suppliers to manufacturers, and finished products from manufacturers to distributors and retailers. Among the services which they provide are transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding.


Third-Party Logistics (3PL): Outsourcing all or much of a company's logistics operations to a specialized company.


Third-Party Warehousing: The outsourcing of the warehousing function by the seller of the goods.


Throughput: A measure of warehousing output volume (weight, number of units). Also, the total amount of units received plus the total amount of units shipped, divided by two.


TI & HI: Ti=how many cases on a layer on the pallet. Hi-how many layers on a pallet. Tells the unloader how to stack each item on a pallet.


Ticketing: Applying bar-code tags, a retailer's own labels, price marking, and other indications on merchandise. Often refers to UPC-A bar codes only.


Time-Based Competition: A corporate strategy that emphasizes time (rather than just cost) as the measurement for achieving and maintaining a competitive advantage.


Time-Phased: A methodology for viewing what you have on hand and what you are expecting to receive. A trait of a "forward-looking" planning system.


Time-to-Market: Time required from conception of a product through research, design, production, and delivery. Used by suppliers and private label groups.


Time-to-Product: See Order Lead Time.


Time-Transcendent Technique: A manufacturing scheduling method in which new jobs are slotted on the basis of priority.


TIS: Technical Interface Specification


TL: See Truckload Carrier


TLF: Train Load Freight: a TOC (q.v.) - the former bulk freight arm of British Rail.


TM: Technical Manual. Also "Trade Mark".


TMS: Transport Management System


TMS: Transportation Management System.


TOFC: Trailer On a Flatcar: AKA"piggyback". See also COFC.


Token Ring: Types of data communications networks defined in the IEEE 802.5 specification. They run at two different rates: 4 MB/sec or 16 MB/sec. See Ethernet.


Total Annual Sales: Total Annual Sales are Total Product Revenue plus post-delivery revenues (e.g., maintenance and repair of equipment, system integration) royalties, sales of other services, spare parts revenue, and rental/lease revenues.


Total Average Inventory: Average normal use stock, plus average lead stock, plus safety stock.


Total Cost Analysis: A decision-making approach that considers minimization of total costs and recognizes the interrelationship among system variables such as transportation, warehousing, inventory, and customer service.


Total Cost Curve: 1) In cost-volume-profit (break-even) analysis, the total cost curve is composed of total fixed and variable costs per unit multiplied by the number of units provided. Break-even quantity occurs where the total cost curve and total sales revenue curve intersect. See: Break-even chart, Break-even point. 2) In inventory theory, the total cost curve for an inventory item is the sum of the costs of acquiring and carrying the item. Also see: Economic Order Quantity


Total Cost of Ownership (TCO): Total cost of a computer asset throughout its lifecycle, from acquisition to disposal. TCO is the combined hard and soft costs of owning networked information assets. 'Hard' costs include items such as the purchase price of the asset, implementation fees, upgrades, maintenance contracts, support contracts, and disposal costs, license fees that may or may not be upfront or charged annually. These costs are considered 'hard costs' because they are tangible and easily accounted for.


Total Cumulative Manufacture Cycle Time: The average time between commencement of upstream processing and completion of final packaging for shipment operations as well as release approval for shipment. Do not include WIP storage time. Calculation: [Average # of units in WIP] / [Average daily output in units] WIP days of supply


Total Inventory Days of Supply: Total gross value of inventory at standard cost before reserves for excess and obsolescence. Includes only inventory that is on the books and currently owned by the business entity. Future liabilities such as consignments from suppliers are not included. Calculation: [5 Point Annual Average Gross Inventory] / [Cost of Good Sold/365]


Total Make Cycle Time: The average total processing time between commencement of upstream processing and completion of all manufacturing process steps up to, but NOT including, packaging and labeling operations (i.e. from start of manufacturing to final formulated product ready for primary packaging). Do not include hold or test and release times. Calculation: [Average # of units in active manufacturing] / [Average daily output in units]


Total Product Revenue: The total value of sales made to external customers plus the transfer price valuation of intra-company shipments, net of all discounts, coupons, allowances, and rebates. Includes only the intra-company revenue for product transferring out of an entity, installation services if these services are sold bundled with end products, and recognized leases to customers initiated during the same period as revenue shipments, with revenue credited at the average selling price. Note: Total Product Revenue excludes post-delivery revenues (maintenance and repair of equipment, system integration), royalties, sales of other services, spare parts revenue, and rental/lease revenues.


Total Quality Management (TQM): The Japanese management approach to product quality and customer satisfaction based on a corporate culture of employee participation in continually improving processes, products, and performance. It has been widely applied to manufacturing, not retailing.


Total Sourcing Lead Time (95% of Raw Material Dollar Value): Cumulative lead time (total average combined inside-plant planning, supplier lead time [external or internal], receiving, handling, etc., from demand identification at the factory until the materials are available in the production facility) required to source 95% of the dollar value (per unit) of raw materials from internal and external l suppliers.


Total Supply-Chain Management Cost (5 elements): Total cost to manage order processing, acquire materials, manage inventory, and manage supply-chain finance, planning, and IT costs, as represented as a percent of revenue. Accurate assignment of IT-related cost is challenging. It can be done using Activity-Based-Costing methods, or based on more traditional approaches. Allocation based on user counts, transaction counts, or departmental headcounts are reasonable approaches. The emphasis should be on capturing all costs, whether incurred in the entity completing the survey or incurred in a supporting organization on behalf of the entity. Reasonable estimates founded in data were accepted as a means to assess overall performance. All estimates reflected fully burdened actuals inclusive of salary, benefits, space and facilities, and general and administrative allocations. Calculation: [Order Management Costs + Material Acquisition Costs + Inventory Carrying Costs + Supply-Chain-Related Finance and Planning Costs + Total Supply-Chain- Related IT Costs] / [Total Product Revenue] (Please see individual component categories for component detail and calculations)


Touchpad: Programmable input device compatible with PCs and ASCII terminals, often for consumer input of PIN numbers.


TP Transporter: usually a road-going car transporter.


TPL: Third Party Logistics: outsourced logistics. Also "3PL".


TPP: Third-Party Provider: logistics contractor (see also LSP).


TQM: Total Quality Management.


TQM Total Quality Management: business management techniques designed to systematically reduce errors and raise service quality.


Traceability: Ability to determine the status or even the location of a shipment. Also the ability to track all parts, processes, and materials used in production for a product based on its lot or serial number.


Tracing: The practice of relating resources, activities and cost objects using the drivers underlying their cost causal relationships. The purpose of tracing is to observe and understand how costs are arising in the normal course of business operations. Synonym: Assignment.


Tracking and Tracing: Monitoring and recording shipment movements from origin to destination.


Traffic: A department or function charged with the responsibility for arranging the most economic classification and method of shipment for both incoming and outgoing materials and products.


Traffic Management: The management and controlling of transportation modes, carriers and services.


Transaction Set: In EDI, a standard for communicating a specific business document (e.g., a purchase order, an invoice, an ASN).


Transportation Management System (TMS): A series of applications, often integrated into one package, that reduces transportation and administration costs needed to achieve a level of service. Applications include: load planning, freight rating, rate shopping, traffic routing/scheduling, outbound appointment scheduling, track & trace, and transportation analysis.


Trickle-Polling: The constant retrieval of sales data (or other data collected at the store) to the host location as the information is captured. Another type of polling often occurs with large batches of a day's data being transmitted at night.


Trip: A journey from one location to another, possibly travelling to one or more destinations.


Trip Sheet: A list of destinations and instructions for a driver. A trip sheet list rip information that a dispatcher uses to complete a trip.


Truck: A power-driven vehicle that pulls trailers.


Truckload Lot: A truck shipment that qualifies for a lower freight rate because it meets a minimum weight and/or volume.


TSC: AIM USA Barcode Technical Symbology Committee.


Tugger Cart: Power-driven vehicle used to pull carts.


Turn Driver: A driver that always goes to the same destination, repeats the tirp over and over.


Turns: See Inventory Turns.


TW: Tare Weight: weight of truck or container without cargo (but including packing, etc.).

back to top

© Copyright 2005. Media Services, Calgary Board of Education. All rights reserved