The A3 system is a means of describing a business process in a compact form. It was originally created by the Toyota Motor Corporation and was named for the paper size on which it was printed: A3 (11" x 17"). Toyota used the A3 methodology to help develop its famed Toyota Production System (TPS).
1) The decision of a carrier to give up or to discontinue service over a route. Railroads must seek ICC permission to abandon routes. 2) As in the phrase "call abandonment". This refers to people who, being placed on hold in an incoming call, elect to hang up ("abandon") the call. Call centers monitor closely the abandonment rate" as a measure of their inefficiency.
A method of classifying inventory items relative to their impact on total control. ABC typically uses movement and cost data to calculate the value of stock usage over the prior period, and uses the result as an element in ranking items under an 80/20 Pareto rule for cycle counting purposes. The group is divided into classes called A, B, and C (and sometimes D) with The A group represents the highest value with 10 to 20% by number of items. The B, C and D (if used) groups are each lower values but typically higher populations. Items with higher usage value are (the 20%) are counted more frequently. Specific bars to be used in setting ABC levels will vary by organization as they will impact the financial control applied to inventory and the level of effort spent counting.
In cost management, a representation of resource costs during a time period that are consumed through activities and traced to products, services, and customers or to any other object that creates a demand for the activity to be performed.
See Automated Broker Interface
See Activity Based Management
Demand for a product which is either greater or lower than expected by a given percentage which is determined by the organization. When observed, it should be determined whether it may be a one-time spike, or if the effect is part of a trend which should be considered during future forecasts.
A cost accounting approach which captures overhead and other indirect costs as separate from unit costs for a given period, and then applies (absorbs) those costs into unit costs at the period end based on various factors such as movement and COGS elements.
Acceptable Quality Level (AQL)
In quality assessment, acceptable quality level, also known as assured quality level, describes the maximum number of defects acceptable during the random sampling of an inspection.
A carrier's charge for accessorial services such as loading, unloading, pickup, and delivery.
The act of making a group or individual responsible for certain activities or outcomes. For example, managers and executives are accountable for business performance even though they may not actually perform the work.
Accounts Payable (A/P)
1) a financial term referring to the amount of transactions which have been accrued but not paid to a vendor. 2) An accounting function
Accounts Receivable (A/R)
On a company's balance sheet, accounts receivable is the amount that customers owe to that company. Sometimes called trade receivables, they are classified as current assets assuming that they are due within one year.
The process in which certification of competency, authority, or credibility is presented. An example of accreditation is the accreditation of testing laboratories and certification specialists that are permitted to issue official certificates of compliance with established standards.
An area where item to be used in assembly of a product are staged prior to work being done.
A value, usually expressed as a percentage, which expresses the level of precision incurred during transactions. An example would be seen when comparing actual inventory levels to what was expected from bookkeeping records.
See Automated Call Distribution
See Automated Commercial Environment
See Automated Clearinghouse
Typically this is a response, either electronic or as a physical document, which confirms the receipt of an order from the supplier to the buyer.
The net price plus other costs needed to purchase the item and get it to the point of use. These other costs can include: the item's purchasing costs (closing, research, accounting, commissions, legal fees), transportation, preparation and installation costs.
See American Customer Satisfaction Index
A system message usually created during MRP calculations to call attention to a current or potential problem and suggest corrective action.
Materials held in a facility which are intended to be consumed in manufacturing / assembly, or sold in a specified period.
Activity Based Costing (ABC)
A methodology that measures the cost and performance of cost objects, activities and resources. Cost objects consume activities and activities consume resources. Resource costs are assigned to activities based on their use of those resources, and activity costs are reassigned to cost objects (outputs) based on the cost objects proportional use of those activities. Activity-based costing incorporates causal relationships between cost objects and activities and between activities and resources.
Advanced Shipping Notice (ASN)
Detailed shipment information transmitted to a customer or consignee in advance of delivery, designating the contents (individual products and quantities of each) and nature of the shipment. In EDI data standards this is referred to as an 856 transaction. May also include carrier and shipment
A market for parts and accessories used in the repair or enhancement of a product. A secondary market created after the original market sales are finished.
Services provided to the customer after products have been delivered. This can include repairs, maintenance and/or telephone support or specifics including time of shipment and expected time of arrival.