Computerized Maintenance Management Systems (CMMS)

Software-based systems that analyze operating conditions of production equipment - vibration, oil analysis, heat, etc. - and equipment failure data, and apply that data to the scheduling of maintenance and repair inventory orders and routine maintenance functions. A CMMS prevents unscheduled machine downtime and optimizes a plant's ability to process products at optimum volumes and quality levels.

Computerized Process Simulation

Use of computer simulation to facilitate the sequencing of production operations, analysis of production flows, and layout of manufacturing facilities.

Computerized SPC

A method for achieving quality control in processes, the technique hinges on the observation that any process is subject to seemingly random variations, which are said to have common causes, and non-random variations, which are said to have special causes. SPC relies on measuring variation in output and setting control limits based on observations of variations arising solely from common causes. A process that is 'in control' is expected to generate output that is within the control limits.

Concurrent Engineering

A cross-functional, team-based approach in which the product and the manufacturing process are designed and configured within the same time frame, rather than sequentially. Ease and cost of manufacturability, as well as customer needs, quality issues, and product-life-cycle costs, are taken into account earlier in the development cycle. Fully configured concurrent engineering teams include representation from marketing, design engineering, manufacturing engineering, and purchasing, as well as supplier—and even customer—companies.

Configuration

The selection and grouping of components and assemblies into a finished product.

Configure/Package-to-Order

A process where the trigger to begin manufacturing, final assembly, or packaging of a product is an actual customer order or release, rather than a market forecast. In order to be considered a Configure-to-Order environment, less than 20% of the value-added takes place after the receipt of the order or release, and virtually all necessary design and process documentation is available at the time of order receipt.

Confirmation

With regards to EDI, a formal notice (by message or code) from an electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or been retrieved by the addressee.

Confirming Order

A document similar to, or the same as, a purchase order, which is provided to a supplier as confirmation of a previous verbal purchase request.

Conformance

A term used in quality management to confirm the adherence to specifications of a product or service. Synonym: Compliance.

CONOPS

Concept of Operations: There are various uses and users for CONOPS. The primary purpose of the CONOPS is to provide a vision for an initiative or desired capability. In general, the CONOPS provides guidance to those users requiring direction and/or information on developing their own documents, schedules, milestones, and plans.

Conrail

The Consolidated Rail Corporation was established by the Regional Reorganization Act of 1973 to operate the bankrupt Penn Central Railroad and other bankrupt railroads in the Northeast. Funding was provided by the 4-R Act of 1976.

Consensus

A state in which all the members of a group support an action or decision, even if some of them do not fully agree with it.

Consignee

The party to whom goods are shipped and delivered is the receiver of a freight shipment.

Consignment

The act of consigning - placing a person or thing in the possession of another, but retaining ownership until the goods are sold - may apply to shipping or sale in a store (i.e., a consignment shop). Also, see Consignment Inventory.

Consignment Inventory

1) Goods or products that are paid for when they are sold by the reseller, not at the time they are shipped to the reseller. 2) Goods or products which are owned by the vendor until they are sold to the consumer.

Consignor

The party who originates a shipment of goods is called the shipper. The shipper is the sender of a freight shipment, usually the seller.

Consolidation

Combining two or more shipments in order to realize lower transportation rates is known as consolidation. Inbound consolidation from vendors is called make-bulk consolidation, while outbound consolidation to customers is called break-bulk consolidation.

Consolidator

An enterprise that provides services to group shipments, orders, and/or goods in order to facilitate movement.

Consortium

An association of two or more individuals, companies, organizations, or governments (or any combination of these entities) with the objective of participating in a common activity or pooling their resources to achieve a common goal.

Constraint

A bottleneck is an obstacle or planned control that limits throughput or the utilization of capacity.

Consul

A government official residing in a foreign country is charged with representing the interests of his or her country and its nationals.

Consular Declaration

A formal statement made to the consul of a country, describing merchandise to be shipped to that consul's country. Approval must be obtained prior to shipment.

Consular Documents

Special forms signed by the consul of the country to which the cargo is destined are required.

Consular Invoice

A document required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment, is called a bill of lading. This document is certified by a consular official of the foreign country and is used by the country's customs.

Consumer Packaged Goods (CPG)

Consumable goods, such as food and beverages, footwear and apparel, tobacco, and cleaning products, are items that generally get used up and need to be replaced frequently. This is in contrast to items that people usually keep for a long time, such as cars and furniture.

Consuming the Forecast

The practice of allowing forecast requirements to be reduced by actual orders received allows a planning system to avoid duplication of demand when actual customer orders for a period are received.

Consumption Entry

An official customs form is used for the declaration of reported goods, also showing the total duty due on such transactions.

Contactless

Refers to the practice of using RFID, smart cards, or other forms of near field communications technology to gather data electronically without the need to actually make physical contact with the item.

Container

1) A 'box', typically 10 to 40 feet long, which is primarily used for ocean freight shipments. For travel to and from ports, containers are loaded onto truck chassis or on railroad flatcars. 2) The packaging, such as a carton, case, box, bucket, drum, bin, bottle, bundle, or bag, in which an item is packed and shipped.

Containerization

A system of intermodal freight transport uses standard intermodal containers that are standardized by the International Organization for Standardization (ISO). These containers can be loaded and sealed intact onto container ships, railroad cars, planes, and trucks.

Container Security Initiative (CSI)

The U.S. Customs program is designed to prevent global containerized cargo from being exploited by terrorists. It is specifically created to enhance the security of sea cargo containers.

Contingency Planning

Preparing to deal with risks such as environmental emergencies (e.g., floods) and non-emergency but still disruptive situations (e.g., strikes) before they occur.

Continuous Flow Distribution (CFD)

The streamlined pull of products in response to customer requirements, while minimizing the total costs of distribution.

Continuous-Flow, Fixed-Path Equipment

Materials handling devices include conveyors and draglines.

Continuous Flow Manufacturing

A production system is organized and sequenced according to the steps involved in the manufacturing process, where the product moves seamlessly and continuously through the entire manufacturing process.

Continuous Improvement (CI)

A structured, measurement-driven process that continually reviews and improves processes and performance.

Continuous Move

A practice used by some large shippers to ensure lower shipping rates and guaranteed capacity, the shipper works with a few core carriers to group a series of one-way hauls between suppliers, manufacturing plants, distribution centers, and sometimes customers into a round trip. The carriers benefit from fewer empty miles, less idle time, better asset utilization, and more regular routes.

Continuous Order Release

A process for releasing orders as soon as an order is available, versus releasing all orders in batches at specific times.

Continuous Process Improvement (CPI)

Continuous Process Improvement is a strategic approach for developing a culture of continuous improvement in the areas of reliability, process cycle times, costs (in terms of less total resource consumption), quality, and productivity. Also, see Kaizen.

Continuous Replenishment

Continuous Replenishment is the practice of partnering between distribution channel members that changes the traditional replenishment process from distributor-generated purchase orders based on economic order quantities to the replenishment of products based on actual and forecasted product demand.

Continuous Replenishment Planning (CRP)

A program that triggers the manufacturing and movement of products through the supply chain when the identical product is purchased by an end user.

Contract

A legally binding agreement between two or more parties to provide specific products or services.

Contract Administration

The activities associated with managing contract compliance.

Contract Carrier

A carrier engaged in interstate transportation of persons or property by motor vehicle on a for-hire basis, but under a continuing contract with one or a limited number of customers to meet specific needs.

Contract freight

This is a type of freight shipping where the shipper has a specified contract rate for certain shipments with a carrier.

Contractor

One who agrees to furnish materials or services at a specified price.

Contribution

The difference between sales revenue and variable costs is contribution. However, contribution is not the same as profit since it only considers the variable costs. It is the amount applied to fixed costs and results in profits.

Contribution Margin

The fraction of sales that contributes to the offset of fixed costs is known as the unit contribution margin. Alternatively, the unit contribution margin is the amount that each unit sale adds to profit. It represents the slope of the Profit line.