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| Tact Time
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Please refer Takt Time
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| Tactical Planning
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The process of developing a set of tactical plants (e.g., production plan, sales plan, marketing plan, and so on). Two approaches to tactical planning exist for linking tactical plans to strategic plans - production planning and sales and operations planning.
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| Taguchi Method
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A concept of offline quality control methods conducted at the product and process design states in the product development cycle. This concept, expressed by Genichi Taguchi, encompasses three phases of product design, parameter design, and tolerance design. The goal is to reduce quality loss by reducing the variability of a product's characteristics during the parameter phase of product development.
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| Takt Time
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Sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean production system. It's computed as the available production time divided by the rate of customer demand. For example, assume demand is 10,000 units per month, or 500 units per day, and planned available capacity is 420 minutes per day. The takt time = 420 minutes per day/500 units per day = 0.84 minutes per unit. This takt time means that a unit should be planned to exit the production system on average every 0.84 minutes.
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| Tandems
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Refers to the rear tandem axles (the back 8 wheels on an 18 wheeler) on a trailer that can be adjusted forward or backward on the trailer to even out load weights or make for more stable loading (tandems all the way back).
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| Tare Weight
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The weight of a substance obtained by deducting the weight of the empty container from the gross weight of the full container.
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| Target Costing
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A target cost is calculated by subtracting the desired profit margin from an estimated or market-based price to arrive at a desired production, engineering, or marketing cost. This may not be the initial production cost, but one expected to be achieved during the mature production stage. Target costing is a method used in the analysis of product design that involves estimated a target cost, then designing the product/service to meet that cost.
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| Tariff
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A tax assessed by a government on goods entering or leaving a country. The term is also used in transportation in reference to the fees and rules applied by a carrier for its services.
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| Task interleaving
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Term used in describing functionality of Warehouse Management Systems to mix tasks to reduce travel time. Sending a forklift driver to put away a pallet on his way to his next pick is an example of task interleaving.
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| Tasks
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The breakdown of the work in an activity into smaller elements.
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| Tender
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The document which describes a business transaction to be performed.
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| Terminal emulation
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Software used on desktop and portable computers that allows the computer to act like a terminal connected to a mainframe system. If you have a networked desktop pc and are accessing mainframe programs ( a.k.a. Green screen programs) you are using terminal emulation. Terminal emulation is also a common method used to connect portable computers (as in warehouse bar code data collection systems) to mainframe software. Also see screen mapping
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| Terms and Conditions (T's & C's)
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All the provisions and agreements of a contract.
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| Theory of Constraints (TOC)
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A production management theory which dictates that volume is controlled by a series of constraints related to work center capacity, component availability, finance, etc. Total throughput cannot exceed the capacity of the smallest constraint, and any inventory buffers or excess capacity at non-related work center is waste.
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| Third Party Logistics
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Outsourcing all or much of a company's logistics operations to a specialized company.
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| Third Party Logistics Provider (3PL)
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A firm which provides multiple logistics services for use by customers. Preferably, these services are integrated or bundled together, by the provider. These firms facilitate the movement of parts and materials from suppliers to manufacturers, and finished products from manufacturers, and finished products from manufacturers to distributors and retailers. Among the services they provide are transportation, warehousing, cross docking, inventory management, packaging, and freight forwarding.
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| Third Party Warehousing
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The outsourcing of the warehousing function by the seller of the goods.
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| Third-party logistics
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(abbreviated 3PL) describes businesses that provide one or many of a variety of logistics-related services. Types of services would include public warehousing, contract warehousing, transportation management, distribution management, freight consolidation. A 3PL provider may take over all receiving, storage, value added, shipping, and transportation responsibilities for a client and conduct them in the 3PL's warehouse using the 3PL's equipment and employees, or may manage one or all of these functions in the client's facility using the client's equipment, or any combination of the above. Another term, 4PL is sometimes used to describe businesses that manage a variety of logistics related services for clients by using 3pls. Also see Public Warehouse and Contract Warehouse or visit International Warehouse Logistics Association (IWLA) site.
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| Throughput
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A measure of warehousing output volume (weight, number of units). Also, the total amount of units received, plus the total amount of units shipped divided by two.
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| Tilt-tray sorter
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Conveyor sorting system that uses a series of tilting devices (carriers) to sort materials. Each tilting carrier has a tray and is mounted on a conveyor, as the carrier passes the drop-off point, it will tilt allowing the materials to fall onto another conveyor, down a chute, or into some type of container. . A.k.a. Tilt-tray conveyor
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| Time buckets
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Term sometimes used to describe forecast periods.
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| Time fence
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Period of time prior to the scheduled production date beyond which changes can be made without significant adverse effects.
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| TL
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Please refer Truckload Carriers
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| TMS
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Please refer Transportation Management System
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| TMS
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Transportation management system (see separate listing).
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| TOC
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Please refer Theory of Constraints
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| TOFC
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Please refer Trailer on a Flat Car, Piggyback
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| Total Annual Sales
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Total Annual Sales are Total Product Revenue plus post-delivery revenues (e.g., maintenance and repair or equipment, system integration) royalties, sales of other services, spare parts revenue, and rental/lease revenues.
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| Total Average Inventory
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Average normal use stock, plus average lead stock, plus safety stock.
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| Total Cost Analysis
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A decision-making approach that considers minimization of total costs and recognizes the inter-relationship among system variables, such as transportation, warehousing, inventory, and customer service.
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| Total Cost of Ownership (TCO)
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Total cost of a computer asset throughout its life cycle, from acquisition to disposal. TCO is the combined hard and soft costs of owning networked information assets. "Hard" costs include items such as the purchase price of the asset, implementation fees, upgrades, maintenance, contracts, support contracts, disposal costs, and license fees that may or may not be up-front or charged annually. These costs are considered "hard costs" because they are tangible and easily accounted for.
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| Total Cumulative Manufacture Cycle Time
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Average time between commencement of upstream processing and completion of final packaging for shipment operations as well as release of approval for shipment. Does not include WIP storage time.
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| Total Make Cycle Time
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The average processing time between commencement of upstream processing and completion of all manufacturing process steps up to, but not including, packaging and labeling operations (i.e., from start of manufacturing to final formulated product ready for primary packaging.) Does not include hold or test and release times.
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| Total Product Revenue
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The total value of sales made to external customers plus the transfer price valuation of intra-company shipments, net of all discounts, coupons, allowances, and rebates. Includes only the intra-company revenue for product transferring out of an entity, installation services if these services are sold bundled with end products, and recognized leases to customers initiated during the same period as revenue shipments, with revenue credited at the average selling price.
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| Total Productive Maintenance (TPM)
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Team-based maintenance process designed to maximize machine availability and performance and product quality.
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| Total Supply Chain Management Cost (five elements)
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Total cost to manage order processing, acquire materials, manage inventory, and manage supply chain finance, planning, and IT costs as represented as a percent of revenue. Accurate assignment of IT-related cost is challenging. It can be done using activity-based costing methods, or more traditional-based approaches. Allocation based on user counts, transaction counts, or departmental headcounts are reasonable approaches. The emphasis should be on capturing all costs, whether incurred in the entity completing the survey or in a supporting organization on behalf of the entity. Reasonable estimates founded in data were accepted as means to assess overall performance. All estimates reflected fully-burdened actuals inclusive of salary, benefits, space and facilities, and general and administrative allocations.
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| Total Supply Chain Response Time
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The time it takes to rebalance the entire supply chain after determining a change in market demand. Also, a measure of a supply chain's ability to change rapidly in response to marketplace changes.
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| Total Test Release Cycle Time
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The average total test and release time for all tests, documentation reviews, and batch approval processes performed from start of manufacturing to release of final packaged product for shipment.
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| Touch Labor
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The labor that adds value to the product - assemblers, welders, packagers, etc. This does not include indirect resources like material handlers who move and stage product, and mechanical and electrical technicians who maintain equipment.
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| Towline Conveyor
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Material handling system that uses a towline (usually a chain) recessed beneath the floor to pull wheeled carts along a fixed path. Towline conveyors have been used for more than 50 years in manufacturing facilities.
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| Traceability
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1) The attribute allowing the ongoing location of a shipment to be determined. 2) The registering and tracking of parts, processes, and materials used in production, by lot or serial number.
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| Tracing
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The practice of relating resources, activities, and cost objects using the drivers underlying their cost causal relationships. The purpose of tracing is to observe and understand how costs are arising in the normal course of business operations.
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| Tracking and Tracing
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Monitoring and recording shipment movements from origin to destination.
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| Tractor
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The tractor is the driver compartment and engine of the truck. It has two or three axles.
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| Trading Partner
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Companies that do business with each other via EDI (e.g., send and receive business documents such as purchase orders).
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| Trading Partner Agreement
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The written contract that spells out agreed upon terms between EDI trading partners.
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| Traffic
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A department or function charged with the responsibility of arranging the most economic classification and method of shipment for both incoming and outgoing materials and products.
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| Traffic Management
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The management and controlling of transportation modes, carriers, and services.
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| Trailer
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A.k.a. Semi trailer, tractor trailer. Generally describes enclosed trailers used to transport materials between locations. Standard lengths for trailers are 45', 48', and 53, with standard internal width of 98" to 99" and internal height of 105" to 110". Refrigerated trailers, also known as "reefers," have smaller internal widths of between 90" and 96" and heights of 96" to 100". Other types of trailers include flatbeds, low boys, and container chassis. Also see container
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| Trailer
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The part of the truck that carries the goods.
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| Trailer creep
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No, this isn't referring to the strange dude that lives in the trailer park or the guy that hangs around truck stops. Trailer creep (also known as trailer walk, dock walk) occurs when the lateral and vertical forces exerted each time a lift truck enters and exits the trailer cause the trailer to slowly move away from the dock resulting in separation from the dock leveler. Factors that affect trailer creep are the weight and speed of the lift truck and load, the grade of the drive the trailer is parked on, the softness of the suspension, the type of transition (dock levelers, dock boards) being used, and whether the trailer has been dropped off (spotted) or if it is still connected to the tractor. Read my article on dock safety.
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| Trailer Drops
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When a driver drops off a full truck at a warehouse and picks up an empty one.
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| Trailer on a Flat Car (TOFC)
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A specialized form of containerization in which motor and rail transport coordinate.
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| Transaction
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A single completed transmission, e.g., transmission of an invoice over an EDI network. Analogous to usage of the term in data processing in which a transaction can be an inquiry or a range of updates and trading transactions. The definition is important for EDI service operators who must interpret invoices and other documents.
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| Transaction Set
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Commonly used business transactions (e.g., purchase order, invoice, etc.) organized in a formal, structured manner consisting of a transaction set header control segment, one or more data segments, and a transaction set trailer control data segment.
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| Transaction Set ID
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A three digit numerical representation that identifies a transaction set.
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| Transactional Acknowledgement
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Specific transaction sets, such as the Purchase Order Acknowledgement (855), that both acknowledges receipt of an order and provides special status information, such as reschedules, price changes, back order situation, etc.
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| Transit Time
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The total time that elapses between a shipment's pickup and delivery.
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| Transparency
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The ability to gain access to information without regard to the system's landscape or architecture. An example would be where an online customer could access a vendor's web site to place an order and receive availability information supplied by a third party outsource manufacturer or shipment information from a third party logistics provider.
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| Transportation Management System
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A computer system designed to provide optimized transportation management in various modes along with associated activities, including managing shipping units, labor planning and building, shipment scheduling through inbound, outbound, intra-company shipments, documentation management (especially when international shipping is involved), and third party logistics management.
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| Transportation management system
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Category of operations software that may include products for shipment manifesting, rate shopping, routing, fleet management, yard management, carrier management, freight cost management. Also see Shipping Manifest System.
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| Transportation Mode
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The method of transportation land, sea, or air shipment.
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| Transportation Planning
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The process of defining an integrated supply chain transportation plan and maintaining the information which characterizes total supply chain transportation requirements, and the management of transporters, both inter- and intra- company.
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| Transportation Planning Systems
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The systems used in optimizing assignments from plants to distribution centers, and from distribution centers to stores. The systems combine moves to ensure the most economical means are employed.
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| Transverse flue space
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Term used by fire codes to describe the space to either side of pallet in racked storage. Flue spaces allow the water from an overhead sprinkler system to reach lower levels of the rack. Normally a transverse flue space of at least 3 inches is required. Also see longitudinal flue space. See article warehouse fire safety,
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| Trend
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General upward or downward movement of a variable over time such as demand for a product. Trends are used in forecasting to help anticipate changes in consumption over time.
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| Trend Forecasting Models
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Methods for forecasting sales data when a definite upward or downward pattern exists. Models include double exponential smoothing, regression, and triple smoothing.
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| Truck Stop Electrification (TSE)
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Provides power outlets at truck parking spaces in which truck drivers can simply plug in, and turn off their engines, rather than idle their truck engine.
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| Truckload Carriers (TL)
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Trucking companies which move full truckloads of freight directly from the point of origin to destination.
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| Truckload Lot
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A truck shipment that qualifies for a lower freight rate because it meets a minimum weight and/or volume.
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| T's & C's
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Please refer Terms and Conditions.
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| Turret truck
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Turret trucks are a man-up lift truck similar to an order selector with the exception that rather than fixed forks the forks are mounted on an additional mast and carriage that operates as a turret, turning 90 degrees in either direction facilitating picking and stocking on either side of the aisle. The man-up design makes it easer to handle loads in very tall racking. Very-narrow-aisle trucks are generally recommended to be used in conjunction with a guidance system (wire, rails, optical) within the aisles to increase safety and reduce property damage. Also turret trucks require that the floor be perfectly flat and level to operate correctly. Also see lift truck pics , lift truck basics, and the aisle width decision for more info.
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