Formally defined, a fill rate is the percentage of customer orders that a company can ship or, “fill”, immediately from the inventory you have on hand without placing backorders, running out of stock or missing sales.
First in First out is a method used in inventory valuation for accounting purposes. The method advocates the practice of using the oldest inventory item first, hence the name "first in" "first out." The principle is also applicable in maintaining precise sequence during and through the production of items because it ensures that the first part into a process or inventory location is also the first part to be used. The FIFO lane is one method of controlling and regulating a pull system that is between two disconnected (decoupled) processes.
Finished goods are products or end items that are sold as a complete item or unit. These items are commonly subject to a customer order, sales order or purchase order that is linked directly to a customer. Finished goods and products are an extension of your inventory. They are materials or products that have reached a point in either the manufacturing or transformative process where they are available for consumption. You can calculate finished goods using a formula that will also help create an inventory ratio which determines the value of your goods for sale. Finished goods inventory is generally considered a short term asset. Short term assets are expected to sell in less than a year as opposed to long term assets which are typically investments that will be kept for longer than a year. Let’s look at an example of finished goods.
The fault tree analysis is a top-down method used to analyze failures. It uses Boolean logic to combine a sequence of lower-level occurrences. In many cases a fault tree is used to analyze the reliability, maintainability and safety of a system.
Functional layouts are by far the most common layout you will find in organizations. These layouts can be seen in how machines and people are positioned. A functional layout is a workplace configuration in which operations/processes are organized by the type of work (function) they do.
The video above is from Lean Strategies International LLC's Quick Changeover with REDUCE Course.
A function check or functional test will help you measure the ability of your equipment to perform and work as it should.
A function check or functional test will help you measure the ability of your equipment to perform and work as it is intended to or should.
Above video created Apr 28, 2017
The 5S system is a visual workplace management system that promotes safety, efficiency and teamwork while making abnormalities visible.
The fishbone diagram is a structured analysis tool used to organize potential causes associated with a specific effect.
The future state is a reference to the aim of an individual, team or organization. It can be seen as technical, organizational or philosophical. A future state is something that will exist, happen or come to be. When we speak of a future state in Lean and Six Sigma Strategies we are referring to the improved current state. The Future State is not the ideal state. It is a realistic concept that helps guide you towards your ideal state. Future states are accomplishable in the sense that you will move from current to future and then your future will become your new current condition.
First time yield is a metric used to determine how a process is performing in relation to the number of good parts or services it produces. The metric is more specifically used to measure the ratio of parts made correctly the first time through. First time through yield can help gauge whether or not a cell is making parts correctly the first time through. The first-time yield can be calculated by dividing the number of good, conforming products or services by the total number of products or services produced in the sample lot or batch. First time yield is also referred to as first pass yield.
A fiscal year usually refers to an accounting year that does not end on December 31. (The accounting year of January 1 thrugh December 31 is usually referred to as a calendar year.) Some examples of the fiscal years used by U.S. corporations include:
Reference: Accounting Coach - Fiscal Year.
In Lean Six Sigma, flow is the term used to refer to a production or service environment that continuously moves value through the value stream without interruptions. An environment that has flow would have very low levels of muda, muri and mura.
A forecast is a prediction of something to come or in the future. A forecast would take place before any type of action or activity happens. Forecasts are almost always wrong but they can be used to define a hope-for, goal, target or condition that you believe is attainable based on analysis and assessment.
Examples of Forecast
1. Educated Guessing
For further learning on forecasting techniques the book entitled Forecasting Methods and Applications gives good insight.
Failure mode and effects analysis or FMEA is a tool used to identify possible failure modes of a process, product or design. FMEA also helps determine the overall impact of the failures on sub-items. The FMEA process establishes a measurement risk priority number that is often used in continuous improvement initiatives.
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