Supply chain practise

Operationalisation

Defining abstract ideas into measurable metrics for data-driven decisions.

Muda

Japanese term for waste; consists of Type 1 (necessary but non-value-adding) and Type 2 (pure waste).

Type 1 Muda

Non-value-adding but necessary waste that should be minimized.

Type 2 Muda

Pure waste (e.g., defects, overproduction) that should be eliminated first.

Deming Cycle (PDCA)

A continuous improvement cycle consisting of Plan, Do, Check, and Act.

Costs of Quality

Includes Prevention, Appraisal, Internal Failure, and External Failure costs.

Effective

Achieving goals, such as on-time delivery.

Efficient

Achieving goals with minimal waste, such as low production costs.

Gemba

The practice of going to the source to observe processes.

5S

A workplace organization method: Sort, Set in order, Shine, Standardize, Sustain.

Rational Decision-Making Model

A logical approach to decision making based on ideal logic.

Garbage Can Model

A decision-making model involving chaotic, timing-dependent choices.

Batch Production

Production type characterized by limited runs and recipe-based processes.

Continuous Production

Production type characterized by high volume and constant operation.

Supplier Selection

Criteria used to choose suppliers based on cost, quality, reliability, and ethics.

Procure-to-Pay (P2P) Cycle

The cycle that encompasses ordering and payment processes.

Order-to-Cash (O2C) Cycle

The cycle that encompasses customer orders through to revenue generation.

Black Box Model

A simplified representation of complex systems showing input, process, and output.