CPIM COMPREHENSIVE OPERATIONS
MANAGEMENT REVIEW SHEET FULL
SOLUTIONS
●● Advance ship notice (ASN)
Answer: Electronic data interchange (EDI) notification of shipment of
goods
●● Andon
Answer: Electronic board that provides visibility of floor status and
gives info to help coordinate efforts linked to work centers; green light =
running, red light = stop, yellow light = needs attention
●● Anticipation inventories
Answer: Any additional inventory above basic pipeline stock to cover
projected trends of increased sales, planned promo programs, seasonal
fluctuation, plant shutdowns, and vacations
●● Assemble-2-order
Answer: Production environment where a good or service can be
assembled after receipt of a customer's order. The key components (or
ingredients) used in assembly or finishing process are planned and
stocked in anticipation of a customer order. Receipt of order initiates
,assembly of the customized product. Useful strategy when a large
number of end products can be assembled from common components
●● Available inventory
Answer: On-hand inventory balance minus allocations, reservations,
backorders, and quantities held for quality problems
●● Backflush
Answer: Method of inventory bookkeeping where the book inventory is
automatically reduced after completion of activity on component's
upper-level parent item based on what should have been used as
specified on the BOM and allocation records; disadvantage is difference
between book inventory and physical OH inventory
●● Backhauling
Answer: Process of transportation returning from original destination
point to point of origin; can be full, partial, or empty load
●● Backlog
Answer: All customer orders received but not yet shipped (open orders
or order board)
●● Backorder
,Answer: Unfulfilled customer order or commitment. An immediate (or
past due) demand against an item whose inventory is insufficient to
satisfy the demand
●● Back scheduling
Answer: Technique for calculating operation start dates and due dates;
start with order due date and work backwards to calculate required start
date and/or due dates for each operation
●● Batch
Answer: Qty scheduled to be produced or in production; type of mfg
process used to produce items with similar designs & cover wide range
of order volumes; items ordered are of a repeat nature
●● Bill of lading
Answer: Document issued by a carrier which details a shipment of
merchandise and gives title of that shipment to a specified party.
●● Bill of material (BOM)
Answer: Listing of all the subassemblies, intermediates, parts, and raw
materials that go into a parent assembly showing the quantity of each
required to make an assembly; used in conjunction with the master
production schedule to determine the items for which purchase
requisitions and production orders must be released; list of all the
materials needed to make one production run of a product, by a contract
manufacturer, of piece parts/components for its customers
, ●● Bonded warehouse
Answer: Buildings or parts of a building designated by Sec of Treasury
for storing imported goods, operated under supervision of US Customs
●● Bottleneck
Answer: Facility, function, department, or resource whose capacity is
less than the demand placed upon it; machine or work center
●● Break-bulk
Answer: Dividing truckloads of similar items into smaller, more
appropriate qty's for use
●● Buffer
Answer: Qty of materials awaiting further processing; can refer to raw
materials, semi-finished stores or hold points, or a work backlog that is
purposely maintained behind a work center; in TOC, it can be time or
material and support thruput and/or due date performance maintained at
the constraint, convergent points (with a constraint part), divergent
points, and shipping points
●● Buffer management
Answer: In TOC, process where all expediting in a shop is driven by
what is scheduled to be in the buffers (constraint, shipping, or
MANAGEMENT REVIEW SHEET FULL
SOLUTIONS
●● Advance ship notice (ASN)
Answer: Electronic data interchange (EDI) notification of shipment of
goods
●● Andon
Answer: Electronic board that provides visibility of floor status and
gives info to help coordinate efforts linked to work centers; green light =
running, red light = stop, yellow light = needs attention
●● Anticipation inventories
Answer: Any additional inventory above basic pipeline stock to cover
projected trends of increased sales, planned promo programs, seasonal
fluctuation, plant shutdowns, and vacations
●● Assemble-2-order
Answer: Production environment where a good or service can be
assembled after receipt of a customer's order. The key components (or
ingredients) used in assembly or finishing process are planned and
stocked in anticipation of a customer order. Receipt of order initiates
,assembly of the customized product. Useful strategy when a large
number of end products can be assembled from common components
●● Available inventory
Answer: On-hand inventory balance minus allocations, reservations,
backorders, and quantities held for quality problems
●● Backflush
Answer: Method of inventory bookkeeping where the book inventory is
automatically reduced after completion of activity on component's
upper-level parent item based on what should have been used as
specified on the BOM and allocation records; disadvantage is difference
between book inventory and physical OH inventory
●● Backhauling
Answer: Process of transportation returning from original destination
point to point of origin; can be full, partial, or empty load
●● Backlog
Answer: All customer orders received but not yet shipped (open orders
or order board)
●● Backorder
,Answer: Unfulfilled customer order or commitment. An immediate (or
past due) demand against an item whose inventory is insufficient to
satisfy the demand
●● Back scheduling
Answer: Technique for calculating operation start dates and due dates;
start with order due date and work backwards to calculate required start
date and/or due dates for each operation
●● Batch
Answer: Qty scheduled to be produced or in production; type of mfg
process used to produce items with similar designs & cover wide range
of order volumes; items ordered are of a repeat nature
●● Bill of lading
Answer: Document issued by a carrier which details a shipment of
merchandise and gives title of that shipment to a specified party.
●● Bill of material (BOM)
Answer: Listing of all the subassemblies, intermediates, parts, and raw
materials that go into a parent assembly showing the quantity of each
required to make an assembly; used in conjunction with the master
production schedule to determine the items for which purchase
requisitions and production orders must be released; list of all the
materials needed to make one production run of a product, by a contract
manufacturer, of piece parts/components for its customers
, ●● Bonded warehouse
Answer: Buildings or parts of a building designated by Sec of Treasury
for storing imported goods, operated under supervision of US Customs
●● Bottleneck
Answer: Facility, function, department, or resource whose capacity is
less than the demand placed upon it; machine or work center
●● Break-bulk
Answer: Dividing truckloads of similar items into smaller, more
appropriate qty's for use
●● Buffer
Answer: Qty of materials awaiting further processing; can refer to raw
materials, semi-finished stores or hold points, or a work backlog that is
purposely maintained behind a work center; in TOC, it can be time or
material and support thruput and/or due date performance maintained at
the constraint, convergent points (with a constraint part), divergent
points, and shipping points
●● Buffer management
Answer: In TOC, process where all expediting in a shop is driven by
what is scheduled to be in the buffers (constraint, shipping, or
