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Dictionary of Useful Supply Chain, Logistics, Fulfillment & Manufacturing Terms

Allocation:
A component is typically on allocation because it is scarce. The customer or account manager will decide which finished goods product it will be used for and/or to which destination it should be shipped.

Amaray:
The Safety Case (Amaray) is the DVD packaging standard for the video entertainment market. The Safety Case (Amaray) allows for graphic elements to be inserted into the front cover, while also making space available on the interior for a booklet and/or additional inserts. The hub design of the Safety Case (Amaray) holds the discs secure from harm, while providing an easy release mechanism. This case is also sometimes referred to as DVD clam-shell or DVD soft-box. Height: 192.00mm, width: 136.46mm, depth: 15.00mm

APPS:
ALOM Production Planning System (APPS) is a proprietary real-time planning system that allows staff members to follow each production order through every step in the process. The system facilitates transparency, fast turn-around and just-in-time manufacturing.

Assembly Instruction:
Specifications, frequently with photos or graphics, to allow accurate assembly. The Assembly Instructions indicate components, as well as their orientation and sequence in the finished goods.

Backliner:
The printed piece that goes in the back of the jewel case and folds to show on the spine. The backliner is only printed on one side, since the other side is hidden by the interior part of the jewel case. In order to insert the backliner automatically, it must be printed to exact specifications. Furthermore, you will have to calculate a 5-10% line fall-out if you deliver the backliners yourself for automatic insertion. Booklets and backliners are frequently priced together as a set.

Blue Book:
The specification for combining audio and data seamlessly on one CD. This standard is also referred to as CD-Plus. There are also orange book, yellow book and red book standards.

Booklet:
The book that goes into the front of the jewel case. This booklet can be anywhere from 1 page (then usually called front page or J-card) to 48 pages (requires special insertion/jewel case). In order to insert the booklet automatically, the booklet must be printed to exact specifications. Furthermore, you will have to calculate a 5-10% line fall-out if you deliver the booklets yourself for automatic insertion. Booklets and Backliners are frequently priced together as a set.

BOM:
Bill Of Materials (BOM) is a complete list of the components that make up the finished goods. The BOM should include part number, quantity and description. An indented Bill of Materials includes descriptions of sub-assemblies and how they relate to the finished goods. The BOM is an essential part of the logistics management process.

CAR:
Corrective Action Report. This report is issued to trigger a corrective action. The most common cause is a complaint or a major mistake but it can also be caused by findings during internal quality auditing or if quality goals are not met. Quality-oriented companies have a clearly defined Corrective Action process, and they measure closure of corrective action. Customers who have experienced problems may demand to see a CAR in order to continue the relationship.

CD-R:
CD-R (or CD-Recordable) is made by a laser burning the data onto Blank Recordable Media. This is in contrast to CD-ROM where the media is extruded during the process and data is molded into the newly extruded plastic surface of the disc. CD-R is most economical for smaller quantities (less than 125 units), and it still has some visual limitations. It is typically used for test runs and other small releases. A CD-R is the most common Golden Master for CD-ROM replication.

CD-Sleeve/Envelope:
Off-the-shelf plain/unprinted Tyvek(R), paper or plastic sleeves or envelopes, usually 5-1/8" x 5", or custom printed chip board (.15 sbs or .18 sbs), usually with 2, 3, or 4-color print and aqueous coating. The difference between sleeves and envelopes: a flap seals the envelope; the sleeve is either left open (if it is inserted into another sub-assembly), sealed with a label or - in rare cases - shrink-wrapped.

Calibration:
Calibration ensures that equipment and measurements correspond to universal standards. Equipment needing calibration typically includes scales, meters, drives and clocks.

Consigned Materials:
Components supplied by the customer. Materials can be consigned for different reasons: it may be proprietary product, very expensive product or the customer may incidentally have a large inventory. Some computer turnkey manufacturers get most of their materials consigned and work mostly as assembly companies. Other manufacturers prefer to manufacture and/or procure virtually all the components (full turnkey). Sometimes, projects end up being hybrid (partly consigned, partly turnkey).

Datazip:
A division of ALOM dedicated to file transfers.

DigiPack:
Another word for CD-sleeve.

DPM:
Defects per Million. This quality measure discerns between good and bad product. You must identify the specification of the product accurately. To compare two different companies' DPM rate, you need to make sure they use the same level of compliance to specifications. You can discern between critical DPM's (for instance: the CD-ROM was not included in the package) and non-critical DPM's (for instance: a smudge on the cover of the manual).

Document Control:
A function or department that keeps track of all documentation, specifications and processes. This ensures that everyone uses the correct, updated information about processes and product specifications.

DVD:
Digital Versatile Disk (or Digital Video Disk) has the dimensions of a CD-ROM but holds considerably more storage. DVD can be pressed with 2 layers on each side, creating a dual layer double-sided disk with 17 GB of storage. The common DVD formats are DVD-5 and DVD-9. In addition, DVD-10 and DVD-18 formats are available. They require double-sided storage, and DVD players that can read this format are not yet commonly available. DVD comes for audio, video and as DVD-ROM. Two new formats will allow the user to play high-definition DVDs: HD-DVD or Bluray DVD.

Duplication:
Usually used to refer to mass-transfer of data onto existing media such as CD-R or a floppy disk, as opposed to replication where the media is created during the replication process, such as CD-ROM.

ECN:
Engineering Change Notification (ECN) is used for changes in documents such as processes and work instructions. It may also be used for changes in specifications. Also referred to as ECO.

ECO:
Engineering Change Order (ECO) is used for changes in documents such as processes and work instructions. It may also be used for changes in specifications. Also referred to as ECN.

First Article:
The very first assembled unit of a product. The First Article undergoes a review where it is compared to the specifications (Bill of Materials, Assembly Instructions and other documents, such as specific quality standards). The First Article Review includes a careful inspection to ensure full compliance, and the customer may participate in that inspection.

Gating Item:
The most critical/late/problematic item in a production. In software manufacturing, usually the software (Golden Master). In hardware manufacturing, often a board or a chip.

Golden Master:
The original software disk handed in for duplication. The Golden Master (GM) should be write protected if it is a floppy disk or tape, then virus checked. The silver masters should be exact duplicates of the Golden Master, unless optimization is performed or problems are detected.

Intuitive ERP:
The MRP/ERP system used by ALOM. Intuitive ERP is an award-winning, Windows-based system manufactured by Intuitive Manufacturing Systems.

ISO:
International Organization for Standardization

Kanban:
Kanban is a finished goods and components management system where the manufacturer keeps safety stock at hand at all times for each stage in the manufacturing process. A subcontractor will have safety stock for relevant components, a vendor will have safety stock for sub-assemblies and finally there will be safety stock for finished goods. Typically, the customer will draw from the inventory, which is replenished within a time frame agreed upon. In software manufacturing, a typical safety stock is two weeks worth of normal usage, with a 48-hour replenishing commitment.

Mastershipper:
A proprietary database developed by ALOM for advanced fulfillment, IT integration, confirmation, and control.

MPEG2:
The digital video signal compression standard used for DVD (and DSS). This adaptive, variable bit-rate process is able to allocate more bits for complex scenes involving a lot of motion, while minimizing the bits in static scenes. The average data rate for DVD is 3.5 Mbps (million bits/second). MPEG stands for Motion Picture Experts Group.

MRB:
Material Review Board (MRB) has the authority to disposition material that does not conform to specifications. The disposition can typically be "use as is" in case of minor/cosmetic deviations, "scrap," "hold" and "return to vendor." Good MRB practice requires all non-conforming material to be reviewed at frequent, regular intervals. Non-conforming materials should be clearly marked and kept in a separate area.

MRP:
Materials Requirement Planning. MRP systems allow users to match purchasing/materials demands to sales forecasts, provided documentation and complete and accurate inventory.

MRP9000:
Previous name for Intuitive ERP, the ERP used by ALOM.

NCR:
Non-conformance report (NCR) is issued when components or finished goods do not conform to specifications. The non-conformance can be due to problems during manufacturing, storage and transportation or problems with specifications or raw materials.

Orange Book:
The specification for CD-R's and CD-R systems. The specification was developed by Philips and Sony. It contains standards for the media, the drives and how the data should be located on the CD-R. There are also red book, yellow book and blue book standards.

Quicksleeve:
Another word for CD-sleeve.

Red Book:
The specification for audio CD's and audio CD systems. The specification was developed by Philips and Sony. It contains standards for the media, the drives and how the data should be located on the CD. There are also orange book, yellow book and blue book standards.

Replication:
Usually refers to a process where new media is created with a certain set of data from a gold master, such as a DVD-ROM or CD-ROM. Duplication is used to refer to a process where data is mass-transferred onto existing media, such as a floppy disk or CD-R.

RMA:
Return Materials Authorization (RMA) is frequently used for all returned product, whether authorized or not. RMA administration requires the company receiving the goods to sort the materials into three groups: store-and-use-as-is, rework or scrap. Due to the evaluation of each package, the RMA process is costly, and reworked software packages will typically cost the same as if it had been manufactured from scratch.

Sierra Box:
Another way of describing what's considered a "standard" software box.

Silver Master:
Copy of the Golden Master. The copies are typically used for customer verification, for duplication and as a safety back-up.

Sleeve:
CD's are frequently inserted into plain sleeves. Standard sleeves are Tyvek(R) or paper with or without windows.

SPC:
Statistical Process Control (SPC) is used to measure quality and efficiencies during production. Effective use of SPC will increase the quality level and through-put.

Yellow Book:
The specification for CD-ROM's and CD-ROM systems. The specification was developed by Philips and Sony. It contains standards for the media, the drives, and how the data should be located on the CD-R. There are also orange book, red book and blue book standards.




 




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