Glossario

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Kanban

Used as part of a Just-In-Time production operation where components and sub-assemblies are produced based upon notification of demand from a subsequent operation. Historically, Kanban has been a physical notification such as a card (kanban cards) or even an empty hopper or tote sent up the line to the previous operation. Kanban is actually a simplistic means of both signaling the need for inventory as well as controlling the inventory levels (by limiting kanban cards or containers).

Labels

Some clients require labels to be attached to the Box / Case / Pallet, to identify the product. Many of these labels contain bar-coded information, to allow the scanning devices which can quickly and automatically transfer the information into the computer. In some cases, these labels are pre-printed by the manufacturer. In other cases (depending on who the client is) the labels must be created and applied by the Distribution Center prior to shipment of the product.

Laser scanner

Device that uses a moving laser to read bar codes. Devices can be portable hand-held units, or fixed units.

Lead time

Amount of time required for an item to be available for use from the time it is ordered. Lead time should include purchase order processing time, vendor processing time, in transit time, receiving, inspection, and any prepack times.

Lead-time demand

Forecasted demand during the lead-time period. For example, if your forecasted demand is 3 units per day and your lead time is 12 days, your lead-time demand would be 36 units.

Lean manufacturing.

Alternate term used to describe the philosophies and techniques associated with Just-in-time (JIT) manufacturing.

Less Than Truckload (LTL)

A full truckload is 39,000 – 44,000 pounds. An LTL is an amount less than this. As this is a very expensive means of transportation, this is avoided when possible.

Leveler

A dock plate that adjusts to the height of a trailer.

LIFO, Last-in-first-out

In warehousing, describes the method for using the newest inventory first (I've never seen an operation that uses this). In accounting, it's a term used to describe an inventory costing method. See FIFO

Lift truck

Describes vehicles used to lift, move, stack, rack, or otherwise manipulate loads. Material handling workers use a lot of terms to describe lift trucks; some terms describe specific types of vehicles, others are slang terms or trade names that people often mistakenly use to describe trucks. Terms include, industrial truck, forklift, reach truck, motorized pallet trucks, turret trucks, counterbalanced forklift, walkie, rider, walkie rider, walkie stacker, straddle lift, side loader, order pickers, high lift, cherry picker, Jeep, Towmotor, Yale, Crown, Hyster, Raymond, Clark, Drexel. See Lift Truck Pics and articles on Lift Truck Basics and Lift Truck Safety for more info.

Load

In manufacturing, describes the amount of production scheduled against a plant or machine. In warehousing, describes the materials being handled by a piece of equipment. In transportation, describes the materials being transported.

Locator system

A.k.a. Location system, Bin locations. Locator systems are inventory-tracking systems that allow you to assign locations to your inventory to facilitate greater tracking and the ability to store product randomly. Prior to locator systems, warehouses needed to store product in some logical manner in order to be able to find it (stored in item number sequence, by vendor, by product description, etc.) By using locator systems you can increase space utilization by slotting your product by matching the physical characteristics of the product to a location whose physical characteristics match that of the product. You can also increase productivity by locating fast moving product to closer, more accessible locations, and increase accuracy by separating similar items. Location functionality in software can range from a simple text field attached to an item that notes a single location, to systems that allow multiple locations per item and track inventory quantities by location. Warehouse management systems (WMS) take locator systems to the next level by adding functionality to direct the movement between locations. See article on Warehouse Management Systems, also check out My book on inventory accuracy which covers locator systems in more detail.

Lot Number

A number assigned to product when it is received into the warehouse via the computer system. Lot numbers are assigned to inbound product per product code and lottable fields.

LTL, Less-than-truckload

Transportation term that describes shipments that are less than a trailer load in size. LTL also is used to describe the carriers that handle these loads. LTL carriers generally use strategically placed hubs to sort and consolidate LTL shipments into full-truck-load shipments.

Lumper

A contracted worker who assists in the loading and unloading process.

Man-up

Term used to describe lift trucks designed to raise the operator with the load. Order selectors and turret trucks are the most common types of man-up vehicles.

Manifest

A document that lists all of the products being transported; used when loads are combined. The Manifests (Loading and Driver) are generated by transportation in Phoenix. A loading Manifest will be printed to the Warehouse so that they know who will be picking up the load and how to properly load the trailer. A Driver Manifest will be auto-faxed to the carrier so that they know the order of the stop(s), the address and shipping requirements of the client(s).

Motorized pallet truck

A.k.a. Walkie, Walkie-rider, Rider.. Motorized pallet trucks are the motorized version of the pallet jack. They come in "Walkie" versions or "Rider" versions. As you would expect, the walkie is designed for the operator to walk along with the truck as they move loads, while the rider has a small platform that the operator stands on. The riders work great for frequent moving of loads over extended distances within warehouses and manufacturing operations. Also see Lift Truck Pics and Lift Truck Basics for more info

MRP generation

Term used to describe the running of the programs that convert demand into planned orders. Depending on the operation, MRP Generation may be run daily, weekly, or even monthly. Since this processing requires a lot of system resources it is generally confined to off hours or weekend processing.

MRP, MRPII, Manufacturing resource planning

Process for determining material, labor and machine requirements in a manufacturing environment. MRPII is the consolidation of Material Requirements Planning (MRP), Capacity Requirements Planning (CRP), and Master Production Scheduling (MPS). MRP was originally designed for materials planning only. When labor and machine (resources) planning were incorporated it became known as MRPII. Today the definition of MRPII is generally associated with MRP systems.

Narrow aisle (NA)

Describes lift trucks that operate in aisles of 8' to 10'. Narrow-aisle trucks are generally stand-up vehicles such as reach trucks. Also see Vary Narrow Aisle (VNA) and read article The Aisle Width Decision

Net Weight

The total weight with deduction for tare. For example, the net weight on a roll is the total weight of the roll less the fiber core and wrap.

O.S. & D.

Over, Short and Damage; it refers to the condition of a load of product which arrives in a defective condition, or whose quantity does not match the bill of lading (cases over or short).

On Hold

Refers to product that is designated as unable to be shipped; may be product with damage, questionable quality, expired shelf life, etc.

On-Hand Inventory

The amount of product in the warehouse; includes product designated as damaged, on hold, or pending shipment.

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