D. R. Rice Company

Helping You Manage Your Supply Chain More Effectively!

Definition of Terms

bulletContinuous Improvement - A never ending effort to expose and eliminate root causes of business problems; typically seen as small step improvements as opposed to big-step improvements or projects.
bulletDistribution Requirements Planning - The function of determining the needs to replenish inventory at distribution centers. A time-phased order point approach is used, based on regional forecasts, customer orders and inventories. The planned orders at the distribution center level are "exploded" via MRP logic to become gross requirements on the supplying source. In the case of multi-level distribution networks, this explosion process can continue down through the various levels of regional distribution center, factory, warehouse, etc., and become input to the Master Production Schedule. Demand on the supplying source(s) is recognized as dependent, and standard MRP logic applies.
bulletEnterprise Resource Planning - The planning, execution, control and measurement functions required to effectively operate an enterprise.
bulletJust-In-Time - In the broad sense, Just-in-Time is an approach to achieving excellence in a manufacturing company based on continuing elimination of waste and consistent improvement in productivity. Waste is then defined as those things which do not add value to the product. Waste is then defined into two categories: necessary and unnecessary. Unnecessary waste should be eliminated and necessary waste should be made unnecessary so that it too can be eliminated.  In the narrow (and less correct) sense, Just-in-Time is considered by some as a production and logistics method designed to result in minimum inventory by having material arrive at each operation just in time to be used.
bulletMANUFACTURING RESOURCE PLANNING (MRP II) - A method for the effective planning of the resources of a manufacturing company. Ideally, it addresses operational planning in units, financial planning in dollars, and has a simulation capability to answer "what if" questions. It is made up of a variety of functions, each linked together: Business Planning, Production Planning, Master Production Scheduling, Material Requirements Planning, Capacity Requirements Planning and the execution support systems for capacity and material. Output from these systems would be integrated with financial reports such as the business plan, purchase commitment reports, shipping budget, inventory projections in dollars, etc. Manufacturing Resource Planning is a direct outgrowth and extension of closed loop MRP. MRP II has also been defined, validly, as a management system based on network scheduling. Also, and perhaps best, as organized common sense.
bulletPeople Involvement - The management approach to problem solving that uses the experience, creative energy and intelligence of all employees.
bulletSupplier Partnerships - Creating a working relationship between a customer and supplier organizations where they can work together for improvements and problem solving.

bulletSupply Chain Management - The design, planning, execution, control and monitoring of supply chain activities with the objective of creating net value by looking outside the boundaries of your own business and linking with your suppliers and customers. This will allow you to build a an infrastructure, leverage logistics, synchronize total supply with demand, and measuring performance globally.
bulletSynchronous Flow Manufacturing - An approach to manufacturing that evaluates every action as it relates to the global system.
bulletTotal Quality Management - A management approach for long term success based on customer satisfaction that is focused on the participation of everyone in an organization in improving every aspect of the organization.

bulletValue Chain Management - The design, planning, execution, control and measurement of all links a company uses to produce and deliver its products and services starting from the point of origination all the way to delivery to the final end-user customer.

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D. R. Rice Company

9326 Lake Shore Drive Brentwood, TN 37027 615-221-2196 riceco@riceco.us