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Glossary & Dictionary

Operation Mangement  Dictionary

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Keyword  
Rack-supported building
Warehouse design that uses structural pallet rack to support the roof of a building, eliminating the need for posts. Rack-supported buildings are usually designed for as/rs systems or turret truck systems where racking is 40 to 100 ft in height.
Radio frequency
In warehousing, refers to the portable data collection devices that use radio frequency (RF) to transmit data to host system.
Radio Frequency (RF)
A form of wireless communications that lets users relay information via electromagnetic energy waves from a terminal to a base station which is linked, in turn, to a host computer. The terminal can be placed at a fixed station, mounted on a forklift truck, or carried in a worker's hand. The base station contains a transmitter and receiver for communication with the terminal. RF systems use either narrow-band or spread-spectrum transmissions. Narrow-band data transmissions move along a single limited radio frequency, while spread-spectrum transmissions move across several different frequencies. When combines with a bar code system of identifying inventory items, a radio frequency system can relay data instantly, thus updating inventory records in so-called real time.
Radio frequency identification
Please refer RFID
Radio Frequency Identification (RFID)
The use of radio frequency technology such as RFID tags and tag readers to identify objects. Objects may include virtually anything physical, such as equipment, pallets of stock, or even individual units of product.
Rail-guided
Guidance system used with very-narrow-aisle vehicles such as order selectors and turret trucks. A steel rail is mounded on each side of the aisle, and rollers are mounted on the lift truck to guide it between the rails.
Ramp Rate
A statement which quantifies how quickly you grow or expand an operation growth trajectory. Can refer to sales, profits, or margins.
Random location storage
Refers to storage method where a product may be stored in any location. Random storage has higher space utilization and generally lower accuracy than fixed location storage
Rationing
The allocation of product among customers, or components among manufactured goods during periods of short supply. When price is used to allocate product, it's allocated to those willing to pay the most.
Raw Materials (RM)
Crude or processed material that can be converted by manufacturing, processing, or a combination thereof into a new and useful product.
Reach truck
A.k.a. Stand-up reach, straddle reach , double-deep reach. The reach truck is a narrow-aisle (8'-10') lift truck designed specifically for racked pallet storage. It consists of outriggers in front and telescoping forks that use a hydraulic scissors-type mechanism that allow you to pick up the load and retract it over the outriggers reducing the overall truck and load length, allowing you to turn in a narrower aisle. Double-deep reach trucks use an extended reach mechanism that allows you to store pallets two-deep in specially designed double-deep rack. Reach trucks are designed for racking areas only and do not work for loading trucks or quickly moving loads over distances. Also see lift truck pics and lift truck basics for more info.
Real Time
The processing of data in a business application as it happens, as contrasted with storing data for input at a later time (batch processing).
Real-time locator system
Real-time locator system (RTLS) uses RFID technology that provides the objects they are attached to the ability to transmit their current location. System requires some type of RFID tag to be attached to each object that needs to be tracked, and RF transmitters/receivers located throughout the facility to determine the location and send information to computerized tracking system. While it sounds like a great way to eliminate "lost" inventory, the systems are still too costly for most inventory tracking operations and are more likely to be used to track more valuable assets.
Receiving
The function encompassing the physical receipt of material, the inspection of the shipment for conformance with the purchase order (quantity and damage), the identification and delivery to destination, and the preparation of receiving reports.
Receiving Dock
Distribution center location where the actual physical receipt of the purchased material from the carrier occurs.
Refrigerated Carriers
Truckload carriers designed to keep perishables good refrigerated. The food industry typically uses this type of carrier.
Release-to-Start Manufacturing
Average time from order release to manufacturing to the start of the production process. This cycle time may typically be required to support activities like material movement and line changeovers.
Reorder point
The inventory level set to trigger reorder of a specific item. Reorder point is generally calculated as the expected usage (demand) during the lead time plus safety stock. Fixed reorder point implies the reorder point is a static number plugged into the system. Dynamic reorder point implies there is some system logic calculating the order point. Generally this would be comparing current inventory to the forecasted demand during the lead time plus safety stock.
Replenishment
The process of moving or resupplying inventory from a reserve (or upstream) storage location or facility to a primary (or downstream) storage or picking location, or to another mode of storage in which picking is performed.
Replenishment cycle
Please refer Order Cycle
Request for Information (RFI)
A document used to solicit information about vendors, products, and services prior to a formal RFQ/RFP process.
Request for Proposal (RFP)
A document which provides information concerning needs and requirements for a manufacturer. This document is created in order to solicit proposals from potential suppliers. For example, a computer manufacturer may use an RFP to solicit proposals from suppliers of third party logistics services.
Request for Quote (RFQ)
A document used to solicit vendor responses when a product has been selected and price quotations are needed from several vendors.
Resellers
Organizations intermediate in manufacturing and distribution process such as wholesalers and retailers.
Resource Driver
In cost accounting, the best single quantitative measure of the frequency and intensity of demands placed on a resource by other resources, activities, or cost objects. It's used to assign resource costs to activities and cost objects, or to other resources.
Resources
Economic elements applied or used in the performance of activities or to directly support cost objects. They include people, materials, supplies, equipment, technologies, and facilities.
Retailer
A business that takes title to products and resells them to final consumers. Examples include Wal-Mart, Best Buy, and Safeway, but also include the many smaller independent stores.
Return Disposal Costs
The costs associated with disposing or recycling products that have been returned due to customer rejects, end of life, or obsolescence.
Return Goods Handling
Processes involved with returning goods from the customer to the manufacturer. Products may be returned because of performance problems or simply because the customer doesn't like the product.
Return Material Authorization or Return Merchandise Authorization (RMA)
A number usually produced to recognize and give authority for a faulty (perhaps) good to be returned to a distribution center or manufacturer. A form generally required with a warranty/return which helps the company identify the original product and the reason for the return. The RMA number often acts as an order form for the work required in repair situations, or as a reference for credit approval.
Return on Assets (ROA)
Financial measure calculated by dividing profit by assets.
Return on Sales
Financial measure calculated by dividing profit by sales.
Return Order Management Costs
The costs associated with managing Return Material Authorization (RMA). Includes all applicable elements of the Level 2 component order management cost of total supply chain management cost.
Return Product Authorization (RPA)
Also called Return Material or Goods Authorization (RMA or RGA). A form generally required with a warranty/return which helps the company identify the original product and the reason for the return. The RPA number often acts as an order form for the work required in repair situations or as a reference for credit approval.
Return to Vendor (RTV)
Material that has been rejected by the customer or the buyer's inspection department and is awaiting shipment back to the supplier for repair or replacement.
Returns Inventory Costs
The costs associated with managing inventory returned for any of the following reasons repair, refurbish, excess, obsolescence, end of life, ecological conformance, and demonstration. Includes all applicable elements of the Level 2 component Inventory Carrying Cost of Total Supply Chain Management Cost.
Returns Material Acquisition, Finance, Planning, and IT Costs
The costs associated with acquiring the defective products and materials for repair or refurbishing items, plus any finance, planning, and information technology costs to support return activity. Includes all applicable elements of the Level 2 components material acquisition cost (acquiring materials for repairs), supply chain-related finance and planning costs, and supply chain management cost.
Returns Processing Cost
The total cost to process repairs, refurbished, excess, obsolete, and end-of-life products, including diagnosing problems and replacing products. Includes the costs of logistics support, materials, centralized functions, troubleshooting service requests, on-site diagnosis and repair, external repair, and miscellaneous. These costs are broken into Returns Order Management, Returns Inventory Carrying, Returns Material Acquisition, Finance, Planning, IT, Disposal, and Warranty Costs.
Returns to Scale
A defining characteristic of B2B. Bigger is better. It's what creates the "winner takes all" quality of most B2B hubs. It also places a premium on being first to market and first to achieve critical mass.
Reverse Engineering
A process whereby competitors' products are disassembled and analyzed for evidence of the use of better processes, components, and techniques.
Reverse Logistics
A specialized segment of logistics focusing on the movement and management of products and resources after the sale and after delivery to the customer. Includes product returns for repair and/or credit.
Reverse logistics
Fancy term for Returns. Reverse Logistics covers activities related to returned product, returned pallets and containers, returned materials for disposal or recycling.
RF
Please refer Radio Frequency.
RFID
Radio frequency identification. Refers to devices attached to an object that transmit data to an RFID receiver. These devices can be large pieces of hardware the size of a small book, like those attached to ocean containers, or very small devices inserted into a label on a package. RFID has advantages over barcodes, such as the ability to hold more data, the ability to change the stored data as processing occurs, does not require line-of-site to transfer data and is very effective in harsh environments where bar code labels won't work. Read my articles ADC Basics and RFID Update, also check out My book on inventory accuracy and its related RFID Updates and RFID Links.
RFID
Radio Frequency Identification.
RFP
Please refer Request for Proposal.
RFQ
Please refer Request for Quote.
RGA
Return Goods Authorization.
RM
Please refer Raw Materials.
RMA
Return Material Authorization.
ROA
Please refer Return on Assets.
Roller conveyor
Type of conveyor that uses rollers to move materials. Roller conveyor may be automated (live roller) or simply use gravity (gravity roller) to move materials. See conveyor pics.
Roof Fairings
An integrated air deflector mounted on the top of the cab.
Root Cause Analysis
Analytical methods to determine the core problem(s) of an organization, process, products, market, etc.
Rough-cut capacity
Used to determine estimated load on key pieces of equipment or resources. May use production plan or master production schedule. Rough-cut capacity is usetd as a check to verify that manufacturing resources are adequate to execute the production plan.
Route Trucks Delivery
Trucks that travel fixed routes.
Routing
Used in conjunction with the bill of material in manufacturing operations. While the bom contains the material requirements, the routing will contain the specific steps required to produce the finished items. Each step in the routing is called an operation, each operation generally consists of machine and labor requirements.
Routing Accuracy
When specified activities conform to administrative specifications, and specified resource consumptions (both man and machine) are detailed according to administrative specifications and are within 10% of actual requirements.
RTLS
Real-time locator system (see separate listing)
RTV
Please refer Return to Vendor.
Rules
Documented definitions of how work is to be performed.
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