Glossary

The times when a machine cannot be used, such as during breakdowns, scheduled maintenance, changeovers, etc.

The conditions that exist in the economy as a whole, rather than in a particular sector or region and which influence a business but the business cannot control.

Items used in support of general operations and maintenance, such as machine parts, electrical parts, and consumables used in the manufacturing process.

A production strategy where the trigger to begin the manufacture of a product is an actual customer order or release rather than a market forecast.

A production strategy where finished product is maintained in plant or warehouse inventory to meet expected incoming orders or releases based on a forecast.

Determining whether to produce an item internally or buy it from an outside supplier. Factors include costs, capacity, knowledge, quality, skills, volume, and timing.

The effective management of all supply chain related functions and activities so as to minimize the sum of their costs across the whole supply chain.

Document listing all cargo on board a vessel or a document which describes individual orders contained within a shipment. Also called a cargo manifest.

The average time between the start and end of a manufacturing process for make-to-stock products. [Average # of units in WIP]/[Average daily output in units]

Person authorized to represent a manufacturer to sell products. Usually works for multiple manufacturers and is paid by commission on sales made.

A calendar used for production planning that consecutively numbers the working days so scheduling may be done based on the actual number of workdays available.

Software programs that monitor, track, document, and control the process of manufacturing goods from raw materials to finished products.

The total number of workdays required to complete a product, from its lowest-level components to the final item, assuming that all purchased items are in stock.

An extension of MRP I, MRP-II added capacity planning, scheduling, and other elements to create a more comprehensive and complete system.

See Maritime Administration (Mar Ad).

The change in total cost that results from making or producing one additional item. The incremental cost incurred to produce an additional unit of a good or service.

Insurance to protect against the loss of cargo or damage to cargo when shipped via water.

A marine cargo insurance term signifying loss or damage to merchandise.

To avoid petty claims, a provision that no claim shall be paid unless the loss sustained totals or exceeds a certain percentage of the value as specified in the policy.

A legal concept, centuries old, where all stakeholders proportially share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole.

A policy designed to cover an indefinite number of future individual shipments, in force until cancelled, with shipments periodically reported to the insurer.

U.S. agency responsible for supporting the technical aspects of America's maritime transportation infrastructure. https://www.maritime.dot.gov/

The process of collecting and analysing data to produce and disseminate meaningful information and actionable intelligence around shipping-related activities.

The total amount of goods and services that all consumers are willing and able to purchase at a specific price in a marketplace.

In U.S. railroading, the lack of effective competition from other railroad carriers and transportation modes for the traffic to which the rail rate applies.