Global MMOG/LE Glossary
Term
Definition
830
Planning Schedule with Release Capability Transaction Set - ASC
X12 standard for the Planning Schedule
856
Ship /Notice /Manifest Transaction Set - ASC X12 standard for the
Advanced Ship Notice (ASN)
862
Shipping Schedule Transaction Set - ASC X12 standard for the
Ship Schedule
866
Production Sequence Transaction Set - ASC X12 standard for the
In-sequence Ship Schedule
Advanced Product Quality Planning
(APQP)
Advanced product quality planning (APQP) is a framework of
procedures and techniques used to develop products in industry,
particularly the automotive industry. Advanced Quality Planning
embodies the concepts of error prevention and continual
improvement, and is used in a multidisciplinary approach.
synonymous with APQ.
Advanced Quality Planning (AQP)
Advanced product quality planning (AQP) is a framework of
procedures and techniques used to develop products in industry,
particularly the automotive industry. Advanced Quality Planning
embodies the concepts of error prevention and continual
improvement, and is used in a multidisciplinary approach.
synonymous with APQP.
Advanced Shipping (or Ship) Notice (ASN)
An EDI transaction listing the contents of a shipment of goods as
well as additional information relating to the shipment including
order information, product description, physical characteristics,
packaging type, marking, carrier information and configuration of
goods within the transportation equipment. The ASN completes
the JIT cycle, and when used in conjunction with bar coded
shipping labels, it virtually eliminates manual receiving functions
by moving data accounting records for electronic payment,
reducing the need for traditional invoicing procedures.
AIAG
abbreviation, Automotive Industry Action Group - A trade
association working to increase member productivity through a
cooperative effort of North American vehicle manufacturers and
their suppliers.
ASN
Advance Shipping (or Ship) Notice
Assessment
The evaluation of achievement against a specified
requirement/standard.
Assessor
The person responsible for conducting the MMOG/LE
assessment.
Balance out
The final quantity required by a customer before the item is
discontinued from production.
Bar Code / Bar Code Symbology
The combination of symbol characters and features required by a
particular symbology, including quiet zones, start and stop
characters, data characters, check characters, and other auxiliary
patterns, which together form a complete scannable entity.
Global MMOG/LE Glossary
Benchmarking
The process of comparing current performance against the
practices of other leading Organizations for the purpose of
improving performance. Companies also benchmark internally by
tracking and comparing current performance with past
performance.
Bill of Lading
A legal document generated by a shipper to consign a load to a
carrier or transfer responsibility to a carrier. A bill of lading
includes information such as number of cartons, weight, carrier,
ship-to address, etc.
Bill of Lading (master)
A consolidated bill of lading, covering a number of individual bills
of lading.
Bill of Material (BOM)
Total list of all components and materials required to
manufacture and/or assemble a particular item.
Bottleneck
The point in a process that limits total output.
Buffer
A quantity of materials used to protect against process variability.
Calibration
A set of operations that establish, under specified conditions, the
relationship between a measuring device and a traceable
standard of known reference value and uncertainty.
Capacity
The highest number of units that can be consistently produced in
a given period of time. Generally expressed in time increments of
both straight time and maximum sustainable overtime levels.
Changeover (or setup)
The amount of time taken to change a process over from the last
part of a production run to the first good repeatable part of the
next production run.
Commodity
A category of similar physical substances or products (e.g.,
electronics, metals) which are interchangeable.
Container
A receptacle, expandable or flexible, covering for shipping goods.
Example is a carton, case, box, bucket, drum, bin, bottle, bundle,
or bag, that an item is packed and shipped in.
Contingency
An event that may occur but that is not likely or intended; a
possibility.
Continual Improvement
The operational philosophy that makes best use of the talents
within the Company to produce products of increasing quality for
our customers in an increasingly efficient way that protects the
return on investment to our stockholders. This is a dynamic
strategy designed to enhance the strength of the Company in the
face of present and future market conditions. It contrasts with
any static strategy that accepts (explicitly or implicitly) some
particular level of outgoing nonconformance as inevitable.
Conveyance
Equipment used to move parts and or containers (sea containers,
semi trailers, and rail cars).
Corporate Responsibility
An organization's sense of responsibility towards the impacts of
their activities on the public interest including the environment,
employment, communities, stakeholders, and society.
Corrective and Preventive Actions
"Corrective Action - Action taken to eliminate the causes of an
existing nonconformity or other undesirable situation in order to
prevent recurrence.
Preventive Action - Action taken to eliminate the causes of a
potential nonconformity or other undesirable situation in order
to prevent occurrence."
Global MMOG/LE Glossary
C-TPAT
The Customs-Trade Partnership Against Terrorism (C-TPAT) is a
voluntary supply chain security program led by U.S. Customs and
Border Protection (CBP) and focused on improving the security of
private companies' supply chains with respect to terrorism.
Cum Start Date
The date that the customer specifies he will begin counting. Used
in a cum-based system.
Cum-Based System
A system that uses the cumulative quantity received and
cumulative quantity shipped to calculate net quantities required
and past due quantities.
Cumulative Quantities (CUMS)
A running total as a count of parts shipped or received in a series
or sequence of shipments.
Customer Requirements
The requirements or specifications from the original equipment
manufacturer (typically the automobile company).
Cycle Counting
A method of auditing inventory accuracy by counting only
specified parts/material on a predetermined schedule
DELFOR
UN/EDIFACT standard for the delivery forecast with release
capabilities.
Delivery Order Reference or Number
A number used for tracking an order (represents a quantity
ordered and a delivery or ship date).
DELJIT
UN/EDIFACT standard for the Delivery Just-in-Time material
release.
Demand Variability
Fluctuations in demand from one release to another for the same
period.
Demurrage
"1. Holding a ship, freight car, or other cargo conveyance during
loading or unloading beyond the scheduled time of departure.
2. Compensation paid for such a delay.
DESADV
DESADV EDIFACT EDI message for the Ship Notice Dispatch
Advice. Message specifies details for goods dispatched or ready
to be shipped.
Direct Marking
An additive or deductive process to establish traceability.
Dunnage
Packaging material that protects the product during transit.
EDI
Abbreviation, Electronic Data Interchange
EDIFACT
EDI for Administration, Commerce, and Transport. A set of United
Nation rules for electronic data interchange.
Electronic Communication
Conducting business electronically via traditional EDI
technologies or online by the internet.
Electronic Data Interchange (EDI)
Computer-to-computer exchange of formatted data between
trading partners using a standard format and syntax (e.g., ANSI
ASC X12, UN/EDIFACT, VDA). EDI allows an organisation to
receive and send information (e.g., Delivery schedule and Call-off,
Despatch advice, Invoice). Data is automatically integrated in the
required ERP or IT legacy systems.
Enterprise Resource Planning (ERP)
Software that integrates internal and external management
information across an entire organization, embracing
finance/accounting, manufacturing, sales and service.
ERP
abbreviation, Enterprise Resource Planning
FIFO
abbreviation, First In First Out
Finished Goods / Parts Inventory
Produced items, ready for transfer to the customer.
First in First Out (FIFO)
Inventory management process ensuring that the first received is
the first used.
Global MMOG/LE Glossary
GALIA
Groupement pour l'Amélioration des Liaisons dans l'Industrie
Automobile. GALIA is a French industry consortium that defines
standards for e-business communications, engineering data
exchange, and logistics management for the automotive industry.
Internal Customer
The next process, operation or function within an organization.
Internal Supplier
The previous process, operation or function within an
organization.
Inventory
Material, supplies and/or finished goods held for future use or
sale. Inventory buffers the production process against the
uncertainty of demand, the variability of the process, and the
cycle time of the process.
Inventory Transactions
Inventory transactions document the quantitative change in
inventory due to a business event or transaction (e.g., supplier
receipt). In addition to the inventory impact of the event (i.e., the
actual receipt quantity of a part), inventory transactions also
record contextual information about the event. In the case of a
supplier receipt, contextual information could include the
supplier, date/time of the receipt, part lot number, etc.
ISO/TS16949
A quality management system that provides for continual
improvement, emphasizing defect prevention and the reduction
of variation and waste in the supply chain. ISO/TS16949 applies
to the design/development, production and, when relevant,
installation and servicing of automotive-related products. It is
based on ISO9001.
Kanban
A pull replenishment system used at a stock point in which a
supply batch is ordered based upon a usage of a previous batch.
Key Performance Indicator (KPI)
Financial and non-financial metrics used to help an organization
define and measure progress toward organizational goals.
KPI
abbreviation, Key Performance Indicator
Lead Logistics Provider (LLP)
A logistics operator contracted to manage material flow between
supplier and customer. Also referred to as 3rd Party Logistics
Provider.
Lead Time
"1. The time interval between the conception or designing of a
product and its actual production.
2. The time interval between the placing of an order and the
delivery of the product or service"
Lean
Identifying and eliminating any process or activity within the
manufacturing system that the customer will not pay for which
may be regarded as non-added value or waste.
LLP
abbreviation, Lead Logistics Provider
Logistics
The process of planning, implementing and controlling the
efficient, effective flow and storage of goods, services and related
information from point of origin to point of consumption for the
purpose of conforming to customer requirements.
Logistics Service Provider (LSP)
Party providing logistics services, such as warehousing, repacking
products, distribution, assembly, sequencing, and cross docking
Lot
A quantity of homogeneous material either manufactured or
received.
Master Label
A label used to identify and summarize the contents of a multiple
pack or unit load of common items (sharing a single part
number), such as a pallet.
Global MMOG/LE Glossary
Master Production Schedule (MPS)
An aggregation of independent material requirements used as
input to the Material Requirements Planning process.
Material Authorization
The amount of material that the customer is authorizing a
supplier to either purchase (RAW) or produce (FAB). If the
customer should cancel this order, the customer will pay the
supplier for any material that the customer authorized. It is
important for the balance-out process to track the highest value
of RAW and FAB authorizations
Material Flow Diagram
A graphic representation of a material flow process.
Material Requirements Planning (MRP)
A time-phased replenishment system to support production
and/or manufacturing processes. It is generally identified with
material/inventory control processes.
MRO
abbreviation, Maintenance, Repair, and Operating Supplies –
Purchased items not included into the finished product.
MRP
abbreviation, Material Requirements Planning
Non Applicable (N/A)
N/A or n/a is, a common abbreviation for not available or not
applicable, used to indicate the deliberate omission of
information from a table or listing.
Non Applicable Criterion(NAC)
A criterion that has been identified by the assessor as being not
applicable to the organization being assessed.
Obsolescence
Out-of-date material designated for disposal. Obsolete material
should be controlled in a manner similar to nonconforming
product (e.g. Corrective and Preventive Action taken).
ODETTE
Non-profit organization run by automotive people for automotive
people. Its main members are six European national
organizations that represent their local manufacturers and
suppliers (Czech Republic, France, Germany, Spain, Sweden, and
the U.K.)
OEM
An original equipment manufacturer or OEM is typically a
company which uses a component made by a second company in
its own product, or sells the product of the second company
under its own brand.
Organization
A group of people and facilities with an arrangement of
responsibilities, authorities and relationships (e.g., corporation,
company, firm, institution or association.)
PAP
Abbreviation, Product Approval Process. Refers to PPAP.
Partial Lot
The amount left over from a production run that is insufficient to
fill a container or package to the customer’s required ship
quantity.
Performance-to-schedule
A performance measurement that represents the percentage of
on-time deliveries to the customer.
Perpetual Inventory
1. The inventory as represented in computer records, used to
reconcile against physical inventory. 2. A structured approach to
taking a physical inventory and then reconciling to computer
records, followed where necessary by corrective action. The
accuracy of the data is used as a performance metric.
PFMEA
A methodology for assessing the weaknesses of production
processes and the potential effects of process failures on the
product being produced.
Phase out
The final quantity required by a customer before the item is
discontinued from production.
Global MMOG/LE Glossary
Physical Inventory
Physical inventory is a process where an organization physically
counts its entire inventory. A physical inventory may be
mandated by financial accounting rules or the tax regulations to
place an accurate value on the inventory, or the organization may
need to count inventory so component parts or raw materials can
be restocked. Organizations may use several different tactics to
minimize the disruption caused by physical inventory.
Poka-yoke
The practice of designing products or processes in a manner that
prevents or minimizes the probability of human or mechanical
error.
Portal / Web Portal
A web based Portal is an Internet-based solution provided by a
customer for it's suppliers. This solution provides access, with
limited human interaction, to the customer's supply chain related
data. For example, the supplier can view as well as download
forecast and schedule information and upload or manually enter
ASN data. These solutions often provide access or viewing to
other supply chain related data such as performance data,
invoices, consigned inventory, bar code labels, etc.
PPAP
Abbreviation, Production Part Approval Process. A generic part
qualification process used to determine if all customer
requirements are understood by a supplier and if the process has
the potential to produce product meeting requirements on a
production basis.
Premium Freight
Extra costs or charges incurred additional to contracted delivery.
NOTE This can be caused by method, quantity, unscheduled or
late deliveries, etc.
Pre-Production
Manufacture or assembly using production parts and processes
prior to continuous scheduled output.
Problem Solving
A structured, repeatable process where the root cause(s) of the
problem is identified and a corrective or preventive action is
implemented.
Procedure
Documented processes that are normally used when work affects
more than one function or department of an organization.
Process
The combination of people, equipment, materials, methods,
measurement and environment that produce output – a given
product or service. A process can involve any aspect of the
business. “6M’s” is a catch phrase sometimes used to describe a
process: Man, Material, Method, Machine, Mother Nature, and
Measurement.
Product Realization
Product realization refers to the interconnected processes that
are used throughout all product life cycle phases and result in
high quality products. The process of design for both product and
process as defined within ISO/TS16949.
Production
The physical process where value added activity takes place.
Production Part
Manufactured at the production site using the production
tooling, gaging, process, materials, operators, environment, and
process settings, e.g., feeds/speeds/cycle
times/pressures/temperatures.
Pull System
Method of ordering where a fixed stock is held for every item and
orders are issued for the immediate replacement of any items
that are removed from stock.
Global MMOG/LE Glossary
Quality Management System (QMS)
Quality Management System - ISO/TS16949, in conjunction with
ISO9001 defines the approach to quality management for the
design and development, production and when relevant,
installation and service of automotive related products.
ISO/TS16949 represents the new global quality management
requirements for the automotive sector and replaces QS9000,
VDA6.1, AVSQ and EAQF as automotive requirements.
Quality Operating System (QOS)
QOS is a systematic, disciplined approach that uses standardized
tools and methods to manage a business and achieve ever-
increasing levels of customer satisfaction
Receiving Discrepancies
Variance between documented receipts and physical receipts.
Release
An order of material against a blanket purchase order. A release
tells the supplier what, when, how much, and to whom to ship.
Some common EDI documents used for releasing are the X12
830, the EDIFACT DELFOR, and the X12 862.
Returnable Container
Shipping container of any material designed to be used for more
than one shipment.
RFID
Radio Frequency Identification - Systems that read and or write
data to RF tags that are present in a radio frequency field
projected from RF reading / writing equipment.
Risk Management
The techniques used to minimize and prevent accidental loss to a
business.
Root Cause
The assignable source of variation that affects all the individual
values of the process output and /or phenomena being studied.
Routings
Information detailing the method of manufacturing of a
particular item. It includes (at a minimum) the operations to be
performed, the work centers involved and the standards for
setup and run time. In some companies, the routing also includes
information on tooling, operator skill levels, inspection
operations and testing requirements
Salvage
Disposition for material (i.e., rework, reuse, or recycle).
Schedule
A document initially provided by the customer defining their
requirements in terms of product number, delivery quantity and
date. This is often translated using an internal scheduling system
to create an internal schedule / manufacturing plan.
Scrap Rate
A predictable percentage of raw materials rejected from use in a
manufactured product.
Self Assessment
A method by which an organization, company, division (or other)
compares their standard practices against a requirement or
standard.
Service Parts
Parts used for the repair or maintenance of an assembled
product. Also known as: repair parts, spare parts.
Shipment Identification Number (SID)
"1. The control ID number assigned to an ASN transaction.
2. A number used by Customs to identify, in a single number, the
shipment crossing the border."
SMMT
The Society of Motor Manufacturers and Traders (SMMT) exists
to support and promote the interests of the UK automotive
industry at home and abroad. Working closely with member
companies, SMMT acts as the voice of the motor industry,
promoting its position to government, stakeholders, and the
media.
Global MMOG/LE Glossary
Storage Location
The interim location where material is kept in inventory between
the receiving dock and point of use.
Strategy
The method by which organizations plan to achieve business
objectives.
Sub Supplier
A supplier to the tier 1, either directly or indirectly.
Supplier
Provider of production materials, or production or service parts,
assemblies, heat treating, welding, painting, plating or other
finishing services directly to an organization supplying the OEM
or other customers.
Supplier Schedules
A process to provide suppliers with timed customer material
requirements information.
Supply Chain
All suppliers and the vehicle manufacturer that represent the
flow of raw materials and finished products that go into the
vehicles sold by the vehicle manufacturers.
Supply Chain Management (SCM)
The design, planning, execution, control, and monitoring of
supply chain activities with the objective of creating net value,
building a competitive infrastructure, leveraging world-wide
logistics, synchronizing supply with demand, and measuring
performance globally.
SWOT Analysis
A tool that identifies the strengths, weaknesses, opportunities
and threats of an organization. Specifically, SWOT is a basic,
straightforward model that assesses what an organization can
and cannot do as well as its potential opportunities and threats.
Once the SWOT is completed, the analysis determines what may
assist the firm in accomplishing its objectives, and what obstacles
must be overcome or minimized to achieve desired results.
Third Party
A service provider that interfaces between the supplier and
customer to modify the packaging and/or provide a value added
process to the product.
Throughput Time
The elapsed time from when material starts being used in a
process until the product is finished, either through a plant or
through a production network.
Tier
The level of supplier (organization) in relationship to the original
equipment manufacturer final assembly plant.
Tier 1…n
Tier Supplier Suppliers are, at times, referred to as Tier n
suppliers, where n is a number from 1 to 3 and represents the
closeness of the supplier to the vehicle manufacturer when
tracking the supply of parts.
Transit Time
The elapsed time from shipping dock to receiving dock.
TREAD
The TREAD Act was enacted on November 1, 2000, as a direct
consequence of hearings before the Committee on Energy and
Commerce on the safety of tires and related matters.
Value Added
Activities or operations for which a customer would be willing to
pay, if given the option.
VDA
Verband der Automobilindustrie. The VDA nationally and
internationally promotes the interests of the entire German
automotive industry. Members consist of automobile
manufacturers, suppliers and manufacturers of trailers, special
bodies and containers.
Global MMOG/LE Glossary
Vendor Managed Inventory
The practice of customers making suppliers responsible for
determining order size and timing, usually based on receipt of
inventory data. Its goal is to increase inventory turns and reduce
stock outs.
Verifying Assessor
An individual or third party who confirms that the assessment has
been correctly conducted by the assessor and the results are a
true reflection of the status of the organization.
Vision
The target for the organization, e.g. what/where you want the
organization to be.
Visual Management
"The use of signs, colors, symbols, lights that are readily apparent
and can be easily understood. This information can be used to
identify, instruct, or indicate that normal or abnormal conditions
exist and that action may be required.
Good visual management needs no interpretation and provokes a
reaction."
Waste
To use, consume, spend, or expend thoughtlessly or carelessly.
Web Based Tools
A generic term used to discuss customer/supplier
communications such as EDI, Web EDI or Web Portals.
Web EDI
A web EDI solution provides a working environment to fully cover
the data exchange between EDI capable partners and non-EDI
capable ones, using standard EDI messages. A Web EDI solution
can be used by a supplier to exchange with multiple customers
with the benefit of a same solution (same screens…) handling for
all customers. Web EDI solutions must be compliant with the
various Business Processes (Delivery schedule and Call-off;
Despatching; Invoicing; Printing of the standard labels and
delivery notes...).
Window Time
The time agreed to by the customer and supplier for the loading
of outbound conveyance or unloading of inbound conveyance.
WIP
abbreviation, Work in Process
Work in Process (WIP)
Any product on which value added activity has taken place but
the product is not yet in its finished form.
Workplace Organization (5C/5S)
A Five-step technique used to stabilize, maintain, and improve
the safest and best work environment. The technique aims at
separating the essential from the non-essential and at
designating specific locations for all essential items within the
work area using signs, colors, lines and symbols (see also Visual
Management).
