Tactical Planning

The process of systematic determination and scheduling of immediate or short-term activities required to achieve the objectives of the organization's strategic plan.

Tact Time

Takt Time

Taguchi Method

A method of analyzing quality problems developed by Genichi Taguchi of Nippon Telephone and Telegraph, it involves removing variability and the effects of causes instead of the cause. It focuses on robust process and product design and the identification of after-sales costs. However, this method has been subject to some criticism.

Takt Time

It can be defined as the maximum time per unit to produce a product in order to meet demand. It is derived from the German word 'Taktzeit' (cycle time). Takt time sets the pace for industrial manufacturing lines. For example, in automobile manufacturing, cars are assembled on a line and are moved on to the next station after a certain time—the takt time. Therefore, the time needed to complete work on each station has to be less than the takt time in order for the product to be completed within the allotted time.

Tally Sheet

A printed form on which companies record, by making an appropriate mark, the number of items they receive or ship. In many operations, tally sheets become a part of the permanent inventory records.

Tandem

A truck that has two drive axles or a trailer that has two axles.

Tank Cars

Rail cars that are designed to haul bulk liquids or gas commodities.

Tapering Rate

A rate that increases with distance, but not in direct proportion to the distance the commodity is shipped.

Tare Weight

Tare weight, sometimes called unladen weight, is the weight of an empty vehicle or container. By subtracting it from the gross weight (laden weight), the weight of the goods carried (the net weight) may be determined.

Target Costing

A target cost is calculated by subtracting a desired profit margin from an estimated or market-based price to arrive at a desired production, engineering, or marketing cost. This may not be the initial production cost, but one expected to be achieved during the mature production stage. Target costing is a method used in the analysis of product design that involves estimating a target cost and then designing the product/service to meet that cost.

Tariff

A tax assessed by a government on goods entering or leaving a country is called a customs duty. The term is also used in transportation to refer to the fees and rules applied by a carrier for its services.

Task Interleaving

A method of combining warehouse picking and putaway is through the use of Warehouse Management Systems (WMS). These systems employ logic to direct a lift truck operator, typically with an RF terminal, to put away a pallet while en route to the next pick. The main objective is to reduce 'deadheading', which refers to driving empty material handling equipment around the warehouse.

Tasks

The breakdown of the work in an activity into smaller elements.

Taxonomy

The practice and science of classification, taxonomy, may represent a particular classification arranged in a hierarchical structure.

TEU

Twenty-foot Equivalent Unit

Theoretical Cycle Time

The back-to-back process time required for a single unit to complete all stages of a process without waiting, stoppage, or time lost due to errors.

Theory of Constraints (TOC)

A production management theory dictates that volume is controlled by a series of constraints related to work center capacity, component availability, finance, etc. Total throughput cannot exceed the capacity of the smallest constraint, and any inventory buffers or excess capacity at non-related work centers are waste.

Third party logistics (3PL)

Logistics, such as warehousing, fulfillment, and/or transportation, are outsourced to third-party providers. These providers typically cover individual pieces rather than the entire supply chain.

Third-Party Logistics (3PL)

Outsourcing all or much of a company's logistics operations to a specialized company can be beneficial.

Third Party Logistics Provider

A firm that provides multiple logistics services for use by customers.

Third Party Service Provider 3PSP

Logistics, such as warehousing, fulfillment, and/or transportation, are outsourced to third-party providers. These providers typically cover individual pieces rather than the entire supply chain.

Third-Party Warehousing

The act of using a contractor to provide warehousing services, and the name of the industry involved in providing contract warehousing operations for hire.

Three-Layer Framework

A basic structure and operational activity of a company: the three layers include operational systems, control and administrative management, and master planning.

Throughput

A measure of volume is determined through a process, such as warehousing output volume (weight, number of units). Additionally, it is calculated by adding the total number of units received to the total number of units shipped, and then dividing the sum by two.

Time Based Order System

Fixed Reorder Cycle Inventory Model

Time Bucket

A defined period, typically 7 days, in which data is summarized for presentation in an MRP system. Data in the bucket is usually divided into groups showing inventory beginning balance, anticipated supply and demand, and available ending balance.

Time-Definite Services

Delivery is guaranteed on a specific day or at a certain time of the day.

Time Fence

A specific reference date is used as a boundary for policy changes in planning or other systems. A policy that seeks to stabilize the master production schedule may prohibit changes to the existing schedule inside the time fence (which is based on lead time) and allow changes under certain circumstances after that date. Another example is the reaction to demand based on customer orders only inside the lead time fence and based on forecast thereafter.

Time/Service Rate

A rail rate that is based on transit time.

Timetables

Time schedules of departures and arrivals by origin and destination are typically used for passenger transportation by air, bus, and rail.

Time-To-Market

The time interval between product concept development and introduction to the marketplace includes specification development, product development, and release to production.

Time Utility

A value is created in a product by having the product available at the desired time. Transportation and warehousing create time utility.

TL

Truckload Carrier

TMS

Transportation Management System.

TOC

Theory of Constraints

TOFC

Trailer-on-Flatcar, Piggyback.

Ton-Mile

A measure of output for freight transportation: it reflects the weight of the shipment and the distance it is hauled. It is calculated by multiplying the tons hauled by the distance traveled.

Total Annual Material Receipts

The dollar amount associated with all direct materials received from January 1 to December 31.

Total Annual Sales

Total annual sales are the sum of total product revenue and post-delivery revenues (e.g., maintenance and repair of equipment, system integration), royalties, sales of other services, spare parts revenue, and rental/lease revenues.

Total Average Inventory

Average normal use stock, plus average lead stock, plus safety stock.

Total Cost Analysis

A decision-making approach that considers the minimization of total costs and recognizes the interrelationship among system variables, such as transportation, warehousing, inventory, and customer service.

Total Cost Curve

A curve that graphically represents the relation between the total cost incurred by a firm in the short-run production of a good or service and the quantity produced.

Total Cost of Acquisition

Acquisition Cost

Total Cost of Ownership (TCO)

Total cost of a computer asset throughout its lifecycle, from acquisition to disposal: TCO is the combined hard and soft costs of owning networked information assets.

Total Cost of Quality

A measure that sums all costs associated with poor quality or product failure, including rework, scrap, warranty costs, and other costs incurred in preventing or resolving quality problems.

TotalCumulative Manufacture Cycle Time

The average time between the commencement of upstream processing and the completion of final packaging for shipment operations, as well as the release approval for shipment, should be calculated. WIP storage time should not be included in this calculation. The formula for calculating this time is as follows: [Average number of units in WIP] divided by [Average daily output in units], minus the WIP days of supply.

Total Inventory Days of Supply

Total gross value of inventory at standard cost before reserves for excess and obsolescence includes only inventory that is on the books and currently owned by the business entity. Future liabilities, such as consignments from suppliers, are not included in this calculation. The calculation is as follows: [5 Point Annual Average Gross Inventory] divided by [Cost of Goods Sold/365].

Total Landed Costs

Usually referred to as the total cost of a landed shipment, it includes the purchase price, freight, insurance, and other costs up to the port of destination. In some instances, it may also include the customs duties and other taxes levied on the shipment.