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Manufacturing Definitions (additional definitions coming soon)

Capacity:  work that can be done over a specified period of time. Can be calculated at the Work Center, Work Area or Plant Level. It is usually stated in hours.   Capacity = (number of machines) X (utilization) X (efficiency)  per time period.

Economies of Scale:  the most efficient operating level. The point where it costs less per unit to produce.

Finished Goods -

Load: the number of hours of work assigned to a facility or work area.

Raw Materials -

Routing File:  detailed requirements of equipment and labor to complete a production order.

Takt Time:  Available Time/Sold Units.  840 minutes/42 units = 20 minutes per unit.

  The definitions contained on this website are the opinions of the webmaster. Different businesses may have different definitions. Please check numerous sources to ensure that you have the correct definitions.
Other Supply Chain Websites
Email me at john@supplychainmetric.com This site is owned and maintained by Michelle Taras & John Taras CPIM, PMP

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SupplyChainMetric.com - an overview of various measurements used in a supply chain.

SupplyChainPurchasing - a review of purchasing in a supply chain.

Inventory Definition - a basic overview of inventory terms.

GermTherapy.com- a website that gives an overview of germ therapy, germ line cell therapy and cancer treatments.


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