Your FREE CPIM Flashcards 2026 – 200+ Cards

Certified in Planning and Inventory Management — ASCM's (formerly APICS) credential for internal manufacturing planning, scheduling, and inventory management.

Association for Supply Chain Management — the body (formerly APICS) that owns and administers the CPIM and CSCP credentials.

The current single-exam version (effective June 1, 2026). One comprehensive exam of 150 questions covering 9 content areas, taken in one 3.5-hour sitting.

CPIM = internal operations (planning, scheduling, inventory inside the firm). CSCP = end-to-end, external supply chain (supplier to customer, design and strategy).

A scaled score of 300 on a 200–350 scale (200–299 fail, 300–350 pass). Results are equated across forms, so the number-correct cut varies by form.

150 questions (130 scored + 20 unscored pretest), with a 3.5-hour (210-minute) time limit. No prerequisites are required to sit the exam.

(1) Align the Supply Chain to Strategy, (2) S&OP, (3) Demand, (4) Internal Supply, (5) External Supply, (6) Inventory, (7) Detailed Schedules, (8) Distribution, (9) Quality, CI & Technology.

The minimum characteristics a product must have just to be considered by a customer (the price of entry to the market).

The characteristics that actually win the customer's order over competitors (e.g., delivery speed, price, or flexibility) — they dictate where the supply chain must excel.

Supply Chain Operations Reference model — a standard framework with processes Plan, Source, Make, Deliver, Return (and Enable) and benchmark metrics.

Days of inventory + days of receivables − days of payables. The time from paying for materials to collecting cash from sales; lower (even negative) ties up less cash.

Finished goods are built to forecast and held in inventory; the customer buys from stock. Short delivery lead time, high finished-goods inventory.

Products are built only after a customer order, from raw materials/components held in stock. Lower finished-goods inventory, longer delivery lead time.

Common modules/options are stocked, then assembled into the final configuration after the order — postpones differentiation to manage variety.

The product is designed and engineered to a unique customer specification after the order is received — the longest lead time, lowest inventory.

The point in the value stream where a specific customer order is linked to production. Upstream is forecast-driven; downstream is order-driven.

Delaying the point of product differentiation (e.g., dyeing or final assembly) until customer demand is known — cuts finished-goods inventory while keeping variety.

Decomposing the firm into discrete primary and support activities to find where value is added and where cost or differentiation advantage exists.

Measuring sustainability across three dimensions: People (social), Planet (environmental), and Profit (economic).

Designing processes and supply chains to reduce environmental and social harm (the People/Planet legs) while remaining profitable — increasingly an order qualifier.

Job shop (high variety, low volume) → batch → repetitive line → continuous flow (low variety, high volume). Volume and variety drive the right process.

Aligns product volume/variety with process type; a mismatch (e.g., a job shop for a commodity) raises cost or limits flexibility.

Cost, quality, delivery (speed/reliability), and flexibility — the capabilities a firm chooses to compete on, which shape the operations strategy.

Industry attractiveness analyzed by: threat of new entrants, supplier power, buyer power, threat of substitutes, and rivalry — shapes supply-chain strategy.

Examining internal Strengths and Weaknesses against external Opportunities and Threats to set strategy and prioritize actions.

A quantifiable measure tied to a strategic objective. Good KPIs are aligned to goals, balanced, and drive the intended behavior.

Routine variability (everyday demand/supply swings) vs. disruption risk (rare, high-impact events). Different responses: buffers for variability, resilience/redundancy for disruptions.

Accept, avoid, transfer (insurance/contract), or mitigate (safety stock, multi-sourcing, redundancy). Match the response to the risk's probability and impact.

Owning more of the supply chain — backward (toward suppliers) or forward (toward customers) — to gain control, at the cost of flexibility and capital.

A unique capability central to a firm's competitive advantage; activities outside it are candidates to outsource.

Functional products (stable demand) need an efficient supply chain; innovative products (uncertain demand) need a responsive one. Match the chain to the product.

Sales and Operations Planning — a monthly, cross-functional process that balances demand and supply at an aggregate (family) level over a 3–18 month horizon, tied to the business plan.

(1) Data gathering, (2) Demand planning, (3) Supply planning, (4) Pre-S&OP reconciliation, (5) Executive S&OP meeting (decisions).

Planning at the product-family level (not individual SKUs) to set overall production, inventory, and workforce levels over the medium-term horizon.

Hold production and workforce constant; absorb demand swings with inventory (build in slow periods, draw down in busy ones).

Match production to demand each period by varying workforce, hiring/firing, overtime, or subcontracting — minimizes inventory but raises capacity-change costs.

A blend of level and chase — usually lower total cost than either pure strategy because it balances inventory cost against capacity-change cost.

Influencing demand to better match supply using levers like pricing, promotions, product mix, and lead-time quoting.

The mature, financially integrated evolution of S&OP — extends the process to a full P&L view and longer strategic horizon.

The output of S&OP: aggregate, family-level production rates that the master scheduler later disaggregates into specific end items.

Top-down: business plan → S&OP (production plan, families) → MPS (end items) → MRP (components) → PAC (shop floor). Each adds detail and shortens horizon.

Demand planning forecasts future demand; demand management also shapes and prioritizes demand (allocation, lead-time quoting) to fit available supply.

The long-range capacity check tied to the production plan — validates aggregate, family-level plans against key resources before the MPS exists.

The step where demand, supply, and finance reconcile plans and frame decisions/scenarios so the executive meeting can decide quickly.

The final step where leadership approves one integrated demand/supply/financial plan and resolves the gaps the pre-S&OP meeting raised.

A group of products planned together in S&OP, usually grouped by how they consume capacity or by market, so aggregate planning is manageable.

Translating the operating plan from units into dollars so the S&OP plan can be checked against the business plan and budget.

Hiring an outside firm to produce output during demand peaks — a chase-strategy lever that flexes capacity up without permanent hiring.

Demand for an item that is not derived from another item — it must be forecast (e.g., a finished good or a service spare part).

Forecasts should: be stated with an estimate of error, be more accurate for groups than items, be more accurate for near than far horizons, and (no forecast is perfect) — always include error.

Average of the demand over the last n periods, used as the forecast. Responds slowly; a larger n smooths more but lags trends.

New forecast = old forecast + alpha × (actual − old forecast). The smoothing constant alpha (0–1) weights recent demand; higher alpha responds faster.

The weight (0–1) on the most recent demand in exponential smoothing. High alpha = more responsive but noisier; low alpha = more stable but slower.

The average of the absolute forecast errors. A common measure of forecast accuracy that ignores the sign of each error.

The average of the absolute errors expressed as a percent of actual demand — lets you compare accuracy across items of different size.

Running sum of forecast errors ÷ MAD. It detects bias: if it drifts outside set control limits (e.g., ±4), the forecast is consistently high or low and needs review.

Average demand for a period (e.g., July) ÷ overall average demand. A value above 1 means above-average; below 1 means below-average.

Breaking a demand series into level, trend, seasonal, and irregular (random) components to forecast each separately.

The amplification of demand variability as orders move upstream in the supply chain, caused by batching, shortage gaming, price fluctuation, and lack of shared demand data.

Collaborative Planning, Forecasting, and Replenishment — trading partners share data and jointly create one demand forecast and replenishment plan.

A qualitative forecasting technique: structured rounds of anonymous expert input converge on a consensus — used when no historical data exists (new products/technologies).

Reconciling forecasts up and down the product hierarchy so item-level and aggregate (family/dollar) forecasts agree.

A forecast is an estimate of future demand; demand is what customers actually want; an order is a committed request. MPS consumes forecast with actual orders.

As real customer orders arrive, they consume the forecast in the MPS so total demand is not double-counted.

A moving average that gives more weight to recent periods, so the forecast responds faster to recent demand than a simple moving average.

Double exponential smoothing that adds a trend term so the forecast keeps pace with sustained growth or decline (plain smoothing lags a trend).

Bias is consistent over- or under-forecasting (caught by the tracking signal); accuracy is the size of error (measured by MAD/MAPE). Both matter.

The average of squared forecast errors; it penalizes large errors more heavily than MAD, so it flags methods with occasional big misses.

Qualitative (Delphi, market research, sales-force estimates) suits new products with no data; quantitative (time series, causal) suits items with demand history.

Forecasting demand from related variables (e.g., regression on price or economic indicators) rather than only past demand.

A qualitative forecast built from estimates by salespeople close to customers; useful but prone to optimism or sandbagging bias.

Using near-real-time signals (POS data, orders) to update short-term forecasts faster than traditional statistical methods.

Demand with many zero periods and occasional spikes (e.g., spare parts); needs special methods (e.g., Croston's) rather than simple smoothing.

Demand for a component that is calculated (not forecast) from the demand for its parent item via the bill of materials — the basis of MRP.

A statement of which specific end items will be built, in what quantity, in which period — the disaggregation of the production plan that drives MRP.

The technique that explodes the MPS through the bill of materials, nets against inventory, and offsets by lead time to plan component orders.

(1) The master production schedule, (2) the bill of materials, and (3) inventory records (on-hand and on-order).

The structured list of every component, subassembly, and raw material — with the quantity per — needed to build one parent item.

Net requirements = gross requirements − scheduled receipts − projected on-hand (plus safety stock). Only the net is planned for ordering.

Scheduling a planned order release earlier than its need date by the item's lead time, so the order arrives exactly when required.

The MRP recommendation to start (release) an order in a given period to meet a future net requirement after lead-time offset.

The running estimate of inventory on hand at the end of each period in a time-phased MRP/MPS record; a negative PAB signals an unmet requirement.

A quick, approximate check that the MPS is feasible against critical (bottleneck) resources, using a bill of resources — done before committing to the MPS.

The data structure RCCP uses: the key resource hours required per unit of a master-scheduled item.

Detailed capacity planning that uses planned and released orders, routings, and work-center data to compute the load on every work center — more precise than RCCP.

The uncommitted portion of inventory and planned MPS supply that sales can promise to new customer orders without changing the schedule.

Goes beyond ATP: checks whether material AND capacity could be obtained to make additional product to meet a request the current schedule can't.

Boundaries in the planning horizon (e.g., frozen, slushy, liquid) that govern who may change the schedule and how, balancing stability against responsiveness.

The nearest, most restrictive time fence where material and capacity are committed; changes are highly discouraged because they disrupt execution.

In ATO/MTO, the schedule that plans the final operations combining stocked modules/options into the specific configured end product after the order.

An artificial bill used in ATO to master-schedule common modules and options (with planning percentages) rather than every end-item combination.

A planned order whose quantity and timing a planner has fixed so MRP will not automatically reschedule it (e.g., across a supplier shutdown).

An MRP system extended with capacity planning and feedback from the shop floor and suppliers, so plans and execution stay in sync.

The amount of work a resource can accomplish in a given time. Capacity must be planned at each level: resource (production plan), rough-cut (MPS), and detailed (CRP).

= number of work centers/machines × hours × utilization × efficiency. The realistic output a resource can deliver, not its theoretical maximum.

Load is the work assigned to a resource; capacity is what it can do. When load exceeds capacity, the schedule is infeasible and must be re-leveled.

Keeps the MPS realistic and stable: disaggregates the production plan into buildable end items, manages time fences, and reconciles demand against capacity.

Order-point (reorder-point) systems suit independent-demand items with steady usage; MRP suits dependent-demand components with lumpy, derived requirements.

The nearest fence inside which the MPS is driven by actual customer orders only (the system stops adding forecast), protecting near-term commitments.

The total demand for a component in a period before any supply is netted — the top row of the time-phased MRP record.

Open orders already released to a supplier or the shop, due to arrive in a future period — netted against gross requirements before planning new orders.

The quantity MRP plans to receive in a period to cover a net requirement; offsetting it back by lead time gives the planned order release.

Assigning each item the lowest level at which it appears in any BOM so MRP nets all its requirements before exploding it.

Tracing a component's requirement back up to the parent order or end item that caused it — used to assess the impact of a change.

Regenerative MRP re-plans everything periodically; net-change MRP re-plans only items affected by a change — faster but can accumulate error.

A controlled change to a product's design or BOM; planners manage effectivity dates so the new configuration phases in without scrapping good stock.

Utilization = hours worked ÷ hours available. Efficiency = standard hours earned ÷ hours worked. Both scale theoretical capacity down to realistic available capacity.

Available time × utilization × efficiency — the realistic capacity used in capacity planning, versus demonstrated capacity from actual output history.

Forecast, customer orders, projected available balance, available-to-promise, and the master production schedule (MPS) line.

In ATO, master-scheduling common modules and a planning bill at one level and the final assembly schedule (specific configurations) at another.

An arrangement where the supplier monitors the buyer's inventory and decides replenishment timing and quantity, using shared usage/inventory data.

Segmenting suppliers and developing differentiated, often collaborative relationships with strategic ones to capture value beyond transactional price.

The full cost of a purchased item over its life — price plus acquisition, logistics, quality, downtime, and end-of-life costs — not just unit price.

The total cost to get a purchased item to the buyer's door: unit price plus freight, duties, insurance, and handling. A low offshore price can carry high landed cost.

The computer-to-computer exchange of standard business documents (POs, invoices, ASNs) between trading partners — compresses the order cycle and cuts errors.

An agreement for an estimated total quantity of an item over a period at fixed pricing/terms; releases draw against it — less paperwork than a PO per delivery.

A structured, weighted evaluation of supplier performance across measures such as quality, on-time delivery, cost, and service.

Sole sourcing = only one source exists (no choice). Single sourcing = the firm chooses to use one of several available suppliers.

Choosing to produce a component in-house or purchase it externally, weighed on total cost, capacity, capability, control, and strategic risk.

Outsourcing logistics functions (warehousing, transportation, fulfillment) to a specialist provider.

Moving freight in a single container across multiple modes (truck, rail, ship) without handling the goods themselves at each transfer.

RFQ asks suppliers to price a defined item; RFP asks suppliers to propose a solution. Both are competitive-bidding tools in supplier selection.

Classifying suppliers (e.g., by spend and risk) so strategic suppliers get partnership while routine ones are managed transactionally.

Bringing key suppliers into product design early to improve manufacturability, cost, and lead time before the design is locked.

Standard international trade terms (e.g., FOB, CIF, DDP) that define where risk and cost transfer between buyer and seller in a shipment.

An EDI message a supplier sends before a shipment arrives, listing its contents so receiving can prepare and reconcile.

Reviewing what is bought and from whom to find consolidation, standardization, and savings opportunities — the start of strategic sourcing.

Stock the supplier owns and stores at the buyer's site; the buyer pays only when it consumes the item — frees the buyer's working capital.

Price-based compares quoted prices; cost-based (TCO) compares total cost including quality, logistics, and risk — the better basis for strategic items.

Supplier delivers small, frequent quantities directly to the point of use (sometimes with an on-site rep), minimizing buyer-held inventory.

Stock built ahead of a predictable peak in demand (e.g., a seasonal high or a planned promotion) to level production.

The inventory that results from ordering in batches (lots) rather than one unit at a time; it averages half the lot size.

Buffer inventory held to protect against variability in demand or supply (lead time), reducing the chance of a stockout to a target service level.

Inventory that exists because goods are physically moving between locations and are not yet available for use.

The cost of holding inventory: the largest component for high-value items is usually the cost of capital, plus storage, insurance, obsolescence, and shrinkage.

The order size that minimizes total annual ordering plus carrying cost. EOQ = √(2 × annual demand × order cost ÷ unit carrying cost).

Constant, known demand; constant lead time; a fixed order cost and carrying cost; no quantity discounts; the entire order arrives at once.

ROP = average demand during lead time + safety stock. When inventory position falls to the ROP, a replenishment order is triggered.

A perpetual system that orders a fixed quantity (the EOQ) whenever inventory hits the reorder point — order timing varies, quantity is fixed.

Stock is reviewed at set intervals and an order brings it up to a target level; quantity varies. It needs more safety stock (longer protection period).

Classifying items by annual dollar usage: ~20% of items (A) account for ~80% of value and get tight control; many C items get loose control.

Auditing a portion of inventory records continuously on a schedule (often by ABC class) rather than one large annual physical count, to keep record accuracy high.

The agreement between recorded and actual on-hand quantities, within a set tolerance; high IRA (e.g., 95–99%) is essential for MRP to work.

Cost of goods sold ÷ average inventory (or annual usage ÷ average inventory). Higher turns mean leaner inventory and faster cash conversion.

Average on-hand inventory ÷ average daily usage. How many days current stock will last; the inverse direction of inventory turns.

An MRP lot-sizing rule that orders exactly the net requirement each period — no cycle stock, but the most order setups.

A dynamic lot-sizing rule that orders a fixed number of periods of demand at a time, combining several net requirements into one order.

Inventory valuation methods. FIFO expenses oldest costs first; LIFO expenses newest first (lowers taxable income when prices rise). Valuation does not change physical flow.

A simple visual reorder: when the first bin empties, reorder while drawing from the reserve (second) bin sized to cover the lead time.

When stock falls to the minimum, order enough to reach the maximum. The order quantity varies with how far below the minimum stock has fallen.

A visual pull signal (card, bin, or electronic) that authorizes replenishment of exactly what was consumed — replenishment is triggered by actual use, not a forecast.

The probability of not stocking out during the lead time; higher service levels require disproportionately more safety stock (driven by the demand standard deviation).

Compare the savings from a price break against the extra carrying cost of the larger order; order the discount quantity only if total cost is lower.

Inventory that can no longer be sold or used; a carrying-cost risk that ABC review, demand planning, and FEFO rotation aim to minimize.

Buffer stock placed between operations so a problem at one step doesn't immediately starve the next — it lets stages run more independently.

Stock built to protect against a specific anticipated event such as a price increase, a strike, or a supply disruption.

The fraction of demand met immediately from on-hand stock without a backorder — a customer-service measure distinct from inventory accuracy.

The average operating time between failures of a repairable item — used to plan service-part inventory and maintenance.

Another name for cycle stock — the inventory created by ordering or producing in batches larger than immediate need.

They are inverses: days of supply = 365 ÷ annual turns. Eight turns ≈ 45 days of supply; more turns means fewer days of stock on hand.

Recompute total cost (purchase + ordering + carrying) at each price-break quantity; choose the quantity with the lowest total cost, not just the lowest price.

POQ first divides EOQ by average demand to find how many periods of demand to combine per order, then orders that many periods' net requirements at a time.

Spares stocked to support installed equipment; justified by uptime/criticality (and MTBF) even when usage is rare and slow-moving.

Issuing inventory by earliest expiration date first to minimize spoilage/obsolescence of dated stock.

Record accuracy is the agreement of recorded vs. counted quantity (within tolerance) per item; inventory value is the total dollar amount on the books.

The allowable difference between recorded and counted quantity for a record to still count as accurate; tighter for high-value A items.

On-hand + on-order − backorders. The figure a reorder-point system compares against the ROP (not just on-hand) to decide when to order.

Finished goods held in the distribution network (DCs, field warehouses) to serve customers quickly — planned by DRP.

The process of handling returned, recalled, or end-of-life product — including disposition (restock, repair, scrap) — now part of the inventory module.

The rate at which the system generates money through sales — revenue minus truly variable cost — not the rate of production.

A method that maximizes system throughput by managing the single bottleneck (constraint), since the constraint governs the output of the whole system.

(1) Identify the constraint, (2) Exploit it, (3) Subordinate everything else to it, (4) Elevate the constraint, (5) Repeat — don't let inertia create a new constraint.

TOC scheduling: the constraint is the drum (sets the pace), the buffer protects it (and shipments) with time, and the rope ties material release to the drum's rate.

Comparing planned vs. actual input and output at a work center to manage queue and lead time; releasing more input than output grows the queue.

Available production time ÷ customer demand for that time. The pace at which units must be completed to exactly meet demand.

Cycle time is how long a process actually takes to make a unit; takt time is the rate demand requires. Cycle time must be at or below takt time to keep up.

Assigning tasks (respecting precedence) to workstations so each station's time is close to takt time, minimizing idle time and the number of stations.

The resource whose capacity is less than the demand placed on it; it limits the throughput of the entire system.

Scheduling that starts from today (or the start date) and computes the earliest completion date by moving forward through operations.

Scheduling that starts from the due date and works back to find the latest start date for each operation that still meets the date.

Managing the execution of shop orders through priority control (sequencing jobs) and capacity control (input/output) on the shop floor.

A prioritized list of jobs to run at a work center, regenerated frequently so the sequence reflects the latest priorities and due dates.

Made up of queue, setup, run, wait, and move time. Queue is usually the largest element, so reducing lot sizes and queues cuts lead time most.

Work-in-process = throughput rate × flow time (in a stable system). To cut flow time you must cut WIP or raise the throughput rate.

Finite loading never exceeds a resource's available capacity (it pushes work out); infinite loading assumes unlimited capacity and may overload a work center.

Moving part of a lot to the next operation before the whole lot finishes (overlapping) to shorten manufacturing lead time.

Cutting the time to change a resource from one product to another (SMED) lowers the economic lot size, enabling smaller lots and lower inventory.

Sequencing several models in small repeating lots on one line (e.g., A-B-A-C) to level output and smooth component demand, rather than big batches.

A dispatching rule = time remaining ÷ work remaining. A ratio below 1 means the job is behind schedule and should be expedited.

A sequencing rule that runs jobs in order of due date — minimizes maximum lateness when the goal is to meet every deadline.

A dispatching rule dividing each job's slack (time until due minus work remaining) by its remaining operations; the lowest value runs first.

Cards = (average demand during lead time × (1 + safety factor)) ÷ container size. Removing a card deliberately exposes problems (continuous improvement).

Protective time placed before the constraint so it never starves; the shipping buffer protects the due date. Buffers are sized in time, not units.

Dividing a DBR buffer into green/yellow/red zones; penetration into red signals the constraint may starve and triggers expediting.

Time a job waits before an operation; usually the largest part of manufacturing lead time, so cutting queues (smaller lots, less WIP) cuts lead time most.

Deducting component inventory automatically based on the count of finished units produced, rather than reporting each issue — common in repetitive/lean lines.

A bar chart of scheduled vs. actual job timing across resources — a basic visual scheduling and load-tracking tool.

Keeps queues and lead times under control by matching released input to a work center's output capacity; releasing more input than output grows the queue.

A sequencing rule that runs the quickest jobs first — minimizes average flow time and WIP, but can starve long jobs.

A sequencing rule that processes jobs in arrival order — simple and fair but ignores due dates and processing time.

ATP is the uncommitted supply sales can promise; the shipping buffer is protective DBR time before shipment. Don't confuse the two.

Applies time-phased MRP logic to the distribution network: it explodes each location's demand and lead time up the network to plan replenishment to central supply.

DRP is time-phased and forward-looking (it anticipates future needs network-wide); a reorder-point system reacts only when stock at one location hits a trigger.

Push allocates inventory to locations from central forecasts; pull lets each location order based on its own demand. DRP coordinates network replenishment.

Consolidating inventory (e.g., centralizing distribution centers) reduces total safety stock because aggregated demand variability is proportionally smaller.

More distribution centers shorten delivery distance and improve service but raise total inventory and facility cost; fewer centers lower inventory but lengthen transport.

The DRP structure showing how distribution centers source from central supply (the distribution analogue of a bill of materials).

Using DRP/MRP time-phasing logic on an independent-demand item so future needs are anticipated rather than waiting for a reorder-point trigger.

Moving received goods directly from inbound to outbound with little or no storage — speeds flow and cuts handling and inventory in distribution.

Consolidating flows through a central hub before fanning out to regional spokes — lowers transport cost per unit through consolidation.

Coordinating DRP across the network so a customer order can be promised from the location best able to fill it on time.

Receiving, allocating, and shipping customer orders against available inventory and promised dates — the customer-facing side of distribution.

Locating DCs closer to customers improves service but raises facility/inventory cost; network design balances transport, inventory, and service.

Integrated software giving every function one shared, real-time database — extending closed-loop MRP across finance, sales, HR, and the supply chain.

Manufacturing Resource Planning — extends closed-loop MRP to translate the operating plan into financial terms and simulate the whole business; ERP's predecessor.

A data-driven methodology to reduce process variation and defects toward 3.4 defects per million opportunities, run through the DMAIC cycle.

Six Sigma's improvement cycle: Define, Measure, Analyze, Improve, Control — Improve follows Measure/Analyze so changes target the verified root cause.

A lean tool that maps the material and information flow of a process — first the current state — to make waste (especially wait time) visible.

Prevention + appraisal (cost of good quality) and internal + external failure (cost of poor quality). Spending on prevention reduces far costlier failure costs.

Using control charts to separate common-cause (random) variation from special-cause (assignable) variation so only special causes are acted on.

A point beyond the control limits, or a run of points (e.g., seven in a row) on one side of the center line, indicates a special (assignable) cause.

Plan-Do-Check-Act — the iterative kaizen improvement cycle; the Do step is run on a small/trial scale before full rollout.

Mistake-proofing — designing a process or part so an error is impossible or immediately obvious (e.g., a connector that fits only one way).

A workplace organization method: Sort, Set in order, Shine, Standardize, Sustain — Sort removes unneeded items; Set in order arranges what's left for efficiency.

Continuous improvement through many small changes, engaging frontline workers who know the process best.

An organization-wide approach to continuous quality improvement built on customer focus, fact-based decisions, and engaging every employee.

A lean philosophy of producing and delivering only what is needed, when needed, in the quantity needed — exposing and eliminating waste and excess inventory.

Overproduction, waiting, transport, over-processing, inventory, motion, and defects (often plus unused talent) — the targets of lean elimination.

An Ishikawa diagram organizing potential root causes of a problem into categories (e.g., the 6 Ms) — a core quality (B7) tool.

A bar chart ranking causes/defects by frequency with a cumulative line — applies the 80/20 rule to focus improvement on the vital few.

Check sheet, histogram, Pareto chart, cause-and-effect diagram, scatter diagram, control chart, and flowchart/stratification.

Common cause is inherent, random process variation; special (assignable) cause is an external, identifiable event. Act only on special causes.

Control limits come from the process's own variation (what it does); spec limits come from the customer (what's required). They are not the same thing.

How well a process fits within spec limits; Cpk also accounts for centering. Higher capability means fewer defects relative to the spec.

Cost of quality = prevention + appraisal (good quality) + internal failure + external failure (poor quality). Investing in prevention lowers total cost of quality.

A lean method to cut changeover time, often by converting internal setup (machine stopped) into external setup (done while running) — enables smaller lots.

Leveling production volume and mix over time to smooth flow and downstream demand, instead of producing in large, uneven batches.

The lean idea of going to the actual place where work happens to observe and understand a problem firsthand before deciding.

A visual/auditory signal (often a cord or light) that lets any worker flag a problem and, if needed, stop the line so defects are fixed at the source.

Value-added time changes the product toward what the customer wants; everything else (wait, move, inspect) is waste targeted by VSM and lean.

Networked sensors on equipment and inventory that stream real-time data for tracking, predictive maintenance, and tighter planning.

Software bots that automate repetitive, rule-based transactions (e.g., order entry, invoice matching), freeing planners for analysis.

Building parts layer by layer from digital models — enables on-demand, low-volume, and spare-part production closer to the point of use.

Software that uses finite-capacity, constraint-based logic to plan material and capacity simultaneously — more powerful than infinite-loading MRP.

Capturing customer requirements and translating them into measurable specifications and CTQs that drive quality and design decisions.

The measurable product/process characteristics that most affect the customer's perception of quality — the focus of Six Sigma improvement.