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Suggested Citation:"Glossary." National Research Council. 2000. Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press. doi: 10.17226/6369.
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GLOSSARY


Computer-aided design (CAD)

A combination of computer software and hardware used in conjunction with computer graphics to enable engineers and designers to create, manipulate, and change designs without conventional paper drafting.

Computer-aided manufacturing (CAM)

The use of computers to control and monitor manufacturing elements, such as robots, computer numerical control machines, storage and retrieval systems, and automated guided vehicles. At the lowest level, CAM includes programmable machines controlled by a centralized computer. At the highest level, large-scale systems integration includes control and supervisory systems.

Computer-integrated manufacturing (CIM)

The integration of computer systems in a manufacturing facility. Integration may extend beyond the factory into the facilities of suppliers and customers. CIM integrates systems that handle everything from ordering to shipment of the final product, including accounting, finance, management, engineering, and manufacturing. The scope of CAM is generally limited to the factory floor, but CIM generally extends beyond the factory floor.

Concurrent engineering (CE)

An approach in which product design, process development, and manufacturing preparations are carried out simultaneously.

Suggested Citation:"Glossary." National Research Council. 2000. Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press. doi: 10.17226/6369.
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e-Business

Using the capabilities of Internet technology, including turning raw information and data into actionable intelligence, to conduct business electronically.

e-Commerce

Buying, selling, and exchanging information electronically.

Extranet

A collaborative network that uses Internet technology to link businesses with their supply chains and provides a degree of security and privacy from competitors.


Firewall

A combination of hardware and software designed to make a Web site secure.


Hypertext markup language (HTML)

A hypertext document format used on the Worldwide Web. Tags and directive information are embedded in the document to delimit text and indicate special instructions for processing it.


Integrated supply chain.

An association of customers and suppliers who, using management techniques, work together to optimize their collective performance in the creation, distribution, and support of an end product.

Internet

A worldwide collection of servers and networks that allow users access to information and applications outside of the company firewall.

Intranet

A secured network of Web pages and applications that can be accessed by anyone within a company firewall.


Just-in-time (JIT) manufacturing

An approach in which goods and services are produced only when needed for the next manufacturing step, rather than being stockpiled in advance.


Local area network (LAN)

A communication system within a facility; the backbone of a communication system that connects various devices in a factory to a control center. The LAN, through the control center, allows devices, such as computers, bar code readers, programmable controllers, and CNC machines, to communicate with each other for control and exchange of information.


Materials requirements planning (MRP or MRP 1)

A scheduling technique for establishing and maintaining valid due dates and priorities for

Suggested Citation:"Glossary." National Research Council. 2000. Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press. doi: 10.17226/6369.
×

orders based on bills of material, inventory, order data, and the master production schedule.

Manufacturing resource planning (MRP II)

A direct outgrowth and extension of closed-loop MRP I through the integration of business plans, purchase commitment reports, sales objectives, manufacturing capabilities, and cash-flow constraints.

Modeling and simulation

The application of a rigorous, structural methodology to create and validate a physical, mathematical, or otherwise logical representation of a system, entity, phenomenon, or process for making managerial or technical decisions.


Original equipment manufacturer (OEM)

A manufacturer that builds products for end users rather than components for use in other products.

Outsourcing

The procurement of goods and services from suppliers outside of the corporation.


Partners

Companies that agree to work together, often for a specific period of time or to achieve specific objectives, and share the risks and rewards of their relationships.

Partnership

An agreement between two companies, often formalized in a contract.


Small and medium-sized manufacturing enterprise (SME)

A manufacturing company with fewer than 500 employees.

Statistical process control (SPC)

The use of statistical techniques for monitoring and controlling the quality of a process and its Output over time. SPC can be used to reduce variability in processes and output quality.

Supply chain

An association of customers and suppliers who, working together yet in their own best interests, buy, convert, distribute, and sell goods and services among themselves resulting in the creation of a specific end product.

Supply chain management

The integration of key business processes, from end user through original suppliers, that provide products, services, and information that add value for customers and other stakeholders.

Suggested Citation:"Glossary." National Research Council. 2000. Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press. doi: 10.17226/6369.
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Transparency

The extent that participants are aware of activities throughout the supply chain.


Virtual enterprise

An opportunity-driven partnership or association of enterprises with shared customer loyalties designed to share infrastructure, research and development, risks, and costs and to link complementary functions.

Suggested Citation:"Glossary." National Research Council. 2000. Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press. doi: 10.17226/6369.
×
Page 131
Suggested Citation:"Glossary." National Research Council. 2000. Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press. doi: 10.17226/6369.
×
Page 132
Suggested Citation:"Glossary." National Research Council. 2000. Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press. doi: 10.17226/6369.
×
Page 133
Suggested Citation:"Glossary." National Research Council. 2000. Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press. doi: 10.17226/6369.
×
Page 134
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The managed flow of goods and information from raw material to final sale also known as a "supply chain" affects everything--from the U.S. gross domestic product to where you can buy your jeans. The nature of a company's supply chain has a significant effect on its success or failure--as in the success of Dell Computer's make-to-order system and the failure of General Motor's vertical integration during the 1998 United Auto Workers strike.

Supply Chain Integration looks at this crucial component of business at a time when product design, manufacture, and delivery are changing radically and globally. This book explores the benefits of continuously improving the relationship between the firm, its suppliers, and its customers to ensure the highest added value.

This book identifies the state-of-the-art developments that contribute to the success of vertical tiers of suppliers and relates these developments to the capabilities that small and medium-sized manufacturers must have to be viable participants in this system. Strategies for attaining these capabilities through manufacturing extension centers and other technical assistance providers at the national, state, and local level are suggested.

This book identifies action steps for small and medium-sized manufacturers--the "seed corn" of business start-up and development--to improve supply chain management. The book examines supply chain models from consultant firms, universities, manufacturers, and associations. Topics include the roles of suppliers and other supply chain participants, the rise of outsourcing, the importance of information management, the natural tension between buyer and seller, sources of assistance to small and medium-sized firms, and a host of other issues.

Supply Chain Integration will be of interest to industry policymakers, economists, researchers, business leaders, and forward-thinking executives.

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