Total Make Cycle Time

The average total processing time between the commencement of upstream processing and the completion of all manufacturing process steps, up to but not including packaging and labeling operations (i.e., from the start of manufacturing to the final formulated product ready for primary packaging), should be calculated. Please do not include hold or test and release times in the calculation. The formula for calculation is as follows: [Average number of units in active manufacturing] divided by [Average daily output in units].

Total Package and Label Cycle Time

The average total processing time between the commencement of the primary packaging and labeling steps to completion of the final packaging steps for shipment is calculated as follows: [Average number of units in packaging and labeling work in progress] divided by [Average daily output in units].

Total Productive Maintenance (TPM)

Team-based maintenance process designed to maximize machine availability, performance, and product quality.

Total Product Revenue

The total value of sales made to external customers, plus the transfer price valuation of intra-company shipments, net of all discounts, coupons, allowances, and rebates, includes only the intra-company revenue for products transferring out of an entity. It also includes installation services if these services are sold bundled with end products. It recognizes leases to customers initiated during the same period as revenue shipments, with revenue credited at the average selling price. Note: Total Product Revenue excludes post-delivery revenues (maintenance and repair of equipment, system integration), royalties, sales of other services, spare parts revenue, and rental/lease revenues.

Total Quality Management (TQM)

A management approach in which managers constantly communicate with organizational stakeholders to emphasize the importance of continuous quality improvement.

Total Sourcing Lead Time (95% of Raw Material Dollar Value)

Cumulative lead time refers to the total average time required for various processes such as inside-plant planning, supplier lead time (whether external or internal), receiving, handling, etc., starting from the identification of demand at the factory until the materials are made available in the production facility. This lead time is necessary to source 95% of the dollar value (per unit) of raw materials from both internal and external suppliers.

Total Supply-Chain Management Cost (5 elements)

Total cost to manage order processing, acquire materials, manage inventory, and manage supply chain finance, planning, and IT costs, represented as a percentage of revenue. Accurate assignment of IT-related costs is challenging. It can be done using Activity-Based Costing methods or based on more traditional approaches. Allocation based on user counts, transaction counts, or departmental headcounts is a reasonable approach. The emphasis should be on capturing all costs, whether incurred in the entity completing the survey or incurred in a supporting organization on behalf of the entity. Reasonable estimates founded in data are accepted as a means to assess overall performance. All estimates reflect fully burdened actuals, inclusive of salary, benefits, space and facilities, and general and administrative allocations. Calculation: [Order Management Costs + Material Acquisition Costs + Inventory Carrying Costs + Supply Chain-Related Finance and Planning Costs + Total Supply Chain-Related IT Costs] / [Total Product Revenue] (Please see individual component categories for component detail and calculations)

Total Supply Chain Response Time

The time it takes to rebalance the entire supply chain after determining a change in market demand is also a measure of a supply chain's ability to change rapidly in response to marketplace changes. The calculation is as follows: [Forecast Cycle Time] + [Re-plan Cycle Time] + [Intra-Manufacturing Re-plan Cycle Time] + [Cumulative Source/Make Cycle Time] + [Order Fulfillment Lead Time].

Total Test and Release Cycle Time

The average total test and release time for all tests, documentation reviews, and batch approval processes performed from the start of manufacturing to the release of the final packaged product for shipment is calculated as follows: [Average number of units in test and release] divided by [Average daily output in units].

Toto authority

A private motor carrier receives operating authority as a common carrier to haul freight for the public over the private carrier's backhaul. This type of authority was granted to the Toto Company in 1978.

Touches

The number of times a labor action is taken during a manufacturing or assembly process. Touches are typically used to measure efficiency or for costing and pricing purposes.

Touch Labor

The labor that adds value to the product includes assemblers, welders, etc. This does not include indirect resources such as material handlers (who move and stage the product) or mechanical and electrical technicians responsible for maintaining equipment.

TPM

Total Productive Maintenance

TQM

Total Quality Management

Traceability

1) The ability to track the location of a shipment as it moves through the shipping process to the customer. 2) The ability to determine the source of individual lot-numbered or serial-numbered products.

Tracing

1) Determining where a shipment is during the course of a move. 2) The practice of relating resources, activities, and cost objects using the drivers underlying their cost causal relationships. The purpose of tracing is to observe and understand how costs are arising in the normal course of business operations. Synonym Assignment.

TrackingandTracing

Monitoring and recording shipment movements from origin to destination.

Tracking Signal

A statistic that reveals instances where parameter estimates in a forecasting model are not optimal. For example, a tracking signal might be based on a graph of the ratio of the cumulative sum of the differences between the actual and forecast values to the mean absolute deviation. If the tracking signal exceeds a certain value, the series can then be flagged for examination. This concept has been used successfully in quality control. It seems sensible also for forecasting, although little research supports its use. An alternative is to use successive re-estimation.

Tractor

The tractor is the driver's compartment and engine of the truck. It has two or three axles.

Trading Partner

Companies that do business with each other via EDI (e.g., send and receive business documents, such as purchase orders) are

Trading Partner Agreement

The written contract that spells out the agreed-upon terms between EDI trading partners.

Traffic

A department is responsible for the process of determining timely and economic delivery methods, arranging internal or external transportation, and tracking shipment status and logistics network issues.

Traffic Management

The management and control of transportation modes, carriers, and services.

Trailer

The part of the truck that carries the goods.

Trailer Drops

When a driver drops off a full truck at a warehouse and picks up an empty one

Trailer on a Flatcar (TOFC)

Transport of truck trailers with their loads on specially designed rail cars. Synonym: Piggyback.

Training Plan

An outline of the training process that an instructor will use in a training program.

Tramp

An international water carrier that has no fixed route or published schedule, a tramp ship is chartered for a particular voyage or a given time period.

Transaction

A single completed transmission, such as the transmission of an invoice over an EDI network, is analogous to the usage of the term in data processing. In data processing, a transaction can be an inquiry or a range of updates and trading transactions. The definition is important for EDI service operators, who must interpret invoices and other documents.

Transactional Acknowledgement

Specific Transaction Sets, such as the Purchase Order Acknowledgement (855), acknowledge receipt of an order and provide special status information, such as reschedules, price changes, backorder situations, etc.

Transaction Set

Commonly used business transactions (e.g., purchase order, invoice, etc.) are organized in a formal, structured manner. They consist of a Transaction Set header control segment, one or more Data Segments, and a Transaction Set trailer Control Data Segment.

Transaction Set ID

A three-digit numerical representation that identifies a transaction set.

Transfer Pricing

The pricing of goods or services transferred from one segment of a business to another is known as transfer pricing. Transfer pricing generally includes the costs associated with performing the transfer, and therefore, item costs will be incrementally higher than when received through normal channels.

Transit Inventory

Material moving between two or more locations, usually separated geographically, for example, finished goods being shipped from a plant to a distribution center, is referred to as logistics. In-transit inventory is an easily overlooked component of total supply chain availability.

Transit privilege

A carrier service that allows the shipper to halt the shipment in transit to perform a function that alters the physical characteristics of the commodity, while still paying the through rate.

Transit Privilege

A carrier service that allows the shipper to halt the shipment in transit to perform a function that alters the physical characteristics of the commodity, while still paying the through rate.

Transit Time

The total time that elapses from pickup to delivery of a shipment.

Translation Software

Software that converts or 'translates' business application data into EDI standard formats, and vice versa.

Transload Facility

A facility is used for transferring shipments from trucks to rail and vice versa. These operations involve unloading inbound ocean containers (or other cargo), palletizing them, and then reloading them (typically into 53-foot over-the-road trailers) for railway or road transport to a final destination.

Transmission Acknowledgment

Acknowledgment that a complete transmission was received with no errors detected.

Transparency

The ability to gain access to information without regard to the system's landscape or architecture.

Transportation Association of America

An association that represents the entire U.S. transportation system—carriers, users, and the public—now defunct.

Transportation Cycle Time

A performance measure of the logistics service provider/transporter is the lead time taken by the product to reach the final destination. This is determined by calculating the difference between the day it leaves the warehouse and the day it reaches its destination.

Transportation Management System (TMS)

A computer system is designed to provide optimized transportation management in various modes, along with associated activities. These activities include managing shipping units, labor planning and building, shipment scheduling for inbound and outbound shipments, intra-company shipments, documentation management (especially when international shipping is involved), and third-party logistics management.

Transportation Method

A linear programming technique that determines the least-cost allocation of shipping goods from plants to warehouses or from warehouses to customers.

Transportation Mode

The method of transportation, e.g., land, sea, or air shipment.

Transportation Planning

The process of defining an integrated supply chain transportation plan and maintaining the information that characterizes the total supply chain transportation requirements, as well as the management of transporters both inter and intra-company.

Transportation Planning Systems

The systems used in optimizing assignments from plants to distribution centers and from distribution centers to stores combine 'moves' to ensure the most economical means are employed.