One element of holding costs is risk. Risk costs are the risk that is assumed when inventory is acquired. In addition to this risk costs refer to loss of inventory value. This is often referred to as the shrinkage that occurs within inventory.
Red tags are a visual tool that is used during the sorting phase of a 5S initiative. In the sorting phase of 5S, items are either gotten rid of, kept or placed in a red tag auction area.
A raw material is any purchased, supplied or extracted item that will eventually be transformed via a manufacturing or transformative process. The raw material or materials are generally converted into components or a finished product.
The reduce methodology is a more detailed method of performing quick changeover or setup improvements. REDUCE is based on the SMED System which was created by Shigeo Shingo.
The RPN or Risk Priority Number is a quantitative assessment of risk that is assigned to a process or product function as part of a failure modes & effects analysis. Individuals or teams assign the RPN based on an established criteria measuring the severity of impact, frequency of occurrence and the likelihood of detection.
A revision is a number, letter or other identifier that shows the current level of the part drawing. revision levels show the number of times a part or drawing has been changed.
A root cause is the beginning or initiating cause of either a condition or a chain that leads to an outcome or effect. The root cause analysis is often referred to as a weed, if we don’t get to the root and remove the root, the weed will grow back again. A root cause analysis digs below the surface or the effect in order to discover the initial cause of the effect. Often times a root cause analysis will travel through levels of causation as it digs towards the root cause.
RunTime is the time needed or required to process an item. It is part of the actual operations time and usually is defined or specified inside of the routing. The runtime is dependent on the volume or the qty of parts that you are producing.
The R-Bar chart is another control chart which is used to monitor control of a "range". The R-Bar control chart tracks the difference between the maximum and minimum values in a subgroup.
The RACI matrix is a matrix/tool that is used to track and increase accountability within a project. RACI stands for Responsible, Accountable, Consult and Informed. The model is used to organize and clarify projects by listing action items and the responsible individuals.
Regression analysis is a technique that can help us understand the relationship between two variables.
Have you ever had to return a product? Chances are you have. Reverse logistics is the supply chain concept that your returns follow. Rather than following a normal supply chain flow the reverse logistics supply chain focuses on improving the reverse flow. The focus of the reverse supply chain is to support customer returns, repair of damaged items, remake or remanufacturing of designs that might not meet the customers expectations and recycling materials. The reverse supply chain can in fact be designed in such a way that it operates at a profit, recovers costs and best of all creates loyal customers.
A rolled throughput yield is a percent that measures the probability that a unit can "roll through" a process without defects. The rolled throughput is calculated by determining the throughput yield (first pass yield, first time yield) of each process step and then multiplying those throughput yields (first pass yield, first time yield) by each other in order to obtain the cumulative or "rolling" throughput yield. This measure takes into account rework and scrap providing an organization with a more accurate assessment of internal waste and or hidden costs.
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