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Available-to-promise (ATP):
A process for determining dates that delivery can be promised to customers. ATP uses a production plan for each part. Any supply in that plan that is not currently allocated to a customer is “available to promise”.
Clear-to-Build (CTB):
A process to determinate parts (usually thought of a work orders, but does not need to have work order paperwork in a lean environment) that have all necessary components available so that actual production can proceed without risking material shortages.
Capable-to-Promise (CTP):
A process for determining dates that delivery can be promised that considers both materials and capacity throughout the Supply Chain, including planning new Supply, at any level of the structure, if required.
Lead Time Optimization:
The time required for one component to move all the way through the entire process or value stream, from start to finish. Envision timing a market items as it moves from beginning to end.
Pull System:
An alternative to scheduling individual process, where the customer process withdraws the items it needs form the previous process or supermarket, and the supplying process produces to replenish what was withdrawn. Used to avoid push.
Push System:
Refer to production schedules that determine the start of production batches of products or services, and then follow the consequences through the production process. Because the start of subsequent activities in determined by the preceding activity, it is “pushing” the product through the system.
Supermarket:
A controlled inventory of irregularly used items. The supermarket is used when usage is sporadic, making point=of-use storage and Kanban replenishment impractical
Value Stream:
All the activities, both value-added and nonvalue-added, required for a product to go from raw material into the hand of the customer, a customer requirement from order to delivery, and a design from concept to launch. Value stream improvement usually begins at the door-to-door level within a facility, and then expands outward to eventually encompass the full value stream.
Lean Logistics:
Lean Logistics satisfies two requirements:
- Ensure the right product and quality is delivered to the right customer at the right time.
- Facilities the flow of that product to the customer
Lean Planning:
Four primary functions in lean planning:
- Providing the tools to design and manage the production resources (i.e.: design for flow)
- Determining the date when customer orders can be satisfied (i.e.: order promising)
- Communicating requirements (e.g.: part, date, quantity, etc) throughout the value chain.
- Ensuring orders can only be started once all the components are available (Clear-to-Build).
Automation: The next step in Lean with ICS:
ICS Logistics support, manufacturers and suppliers can automate common transactions to greatly reduce the hours and expensive associated with manual processes. Manufactures, their suppliers and customers can exchange order, schedules, inventory information, and other reports directly between systems. Automating these, an everyday transaction free up resources to deal with exceptions, reduces the numbers of errors generated from manual systems and greatly improves efficiency.
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