Glossaries

Saturday, 18 May 2024, 8:45 AM

Site: SupplyChainSmart

Course: SupplyChainSmart (SCS)

Glossary: Supply Chain Smart Glossary

Value Added Chain Diagram (VACD)

Specifies the functions in a company which directly influence the real added value of the company. These functions are linked to one another in a sequence of functions and thus form a value-added chain.

Value Added Tax

A consumer tax charged on the value added at each stage of production.

Value Adding Process

A set of quality control activities that transform an input into an output that is valuable to internal and/or external customers of an organisation

Value Analysis

The systematic and critical assessment of every feature of a product by an organization to ensure that its cost is no greater than is necessary to carry out its functions.

Value Chain

Process or activities by which a company adds value to an article, including production, marketing, and the provision of after-sales service.

Value Stream Mapping (VSM)

Is a tool used to map the flow of materials from supplier to customer, specifying the value-added and non-value-added time of all process steps.

Value-based Pricing

Company sets price based on the value given to the product by the customer.

Values

Are an enduring belief that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence.

Variability

In the larger sense, this is the amount that individual elements in a time series deviate from the average. In some cases, variability is random and inherent in the process being observed.

Variable Costs

The amount of the business expenditure that changes in direct relation to the number of products manufactured, bought or sold; also referred to as manufacturing costs or indirect costs.

Variable Essential Expenditure

Expenses that can vary each month.

Vendor Managed Inventory (VMI)

The vendor is responsible for managing the inventory. This is known as Vendor Managed Inventory (VMI). This means that the retailer does not have any input into how goods are placed on the allocated shelf and whether goods run out.

A process that places the replenishment decision-making in the hands of the supplier. It’s the supplier’s job to ensure that the customer does not run out of stock and to keep the inventories at the agreed-upon levels.

Venn Diagram

Graphs that use circles to present connections and intersections

Venture Capital

A form of private equity that focuses on high-risk businesses in the technology industry.

Version Control

Version control (also known as revision control or source control) is a category of processes and tools designed to keep track of multiple different versions of software, content, documents, websites and other information in development.

Vertical Integration

Vertical integration refers to any moves that include different levels of the chain. It could involve merging or buying out a link ahead of or before your organization, or possibly developing your own capabilities for handling the entire supply chain, front to back. For example, if the CPU manufacturer mentioned earlier also purchased a smartphone product development firm, they would control more levels of their supply chain - the major parts and the product. This type of acquisition could gain the firm greater control over their costs, net them a larger share of profits, and reduce waste and time spent in production.

Virtual Reality

The computer-generated simulation of a three-dimensional image or environment that can be interacted with in a seemingly real or physical way by a person using special electronic equipment, such as a helmet with a screen inside or gloves fitted with sensors.

Vision Statement

A vision statement is defined as a one-sentence statement describing the clear and inspirational long-term desired change resulting from an organisation or program’s work.

A desired end-state.

The average length of visions statement for many organisations is only 15 words (excluding brand references)

Visualization

A technique where you use mental images to picture your desired outcome

Voice

In writing: a work’s distinctive style of expression, personal or impersonal, conveyed through the author’s use of vocabulary, sentence structure, and imagery. In oral/signed communication: the quality of sound produced by a speaker. In grammar: a property of verbs (e.g. active and passive voice) Writing that captures the correct level of distance, formality, or personality for the purpose of the writing and the audience.

Voice Recognition Devices

New technology makes it possible to make reliable input of data directly by speaking aloud and capturing the spoken word on computer.

Volume

The big picture. Sales and production rates for aggregate groupings — product families, production departments, etc. — as opposed to individual products, customer orders, and work centers.

Volume Forecast

A forecast by product groupings such as families, classes, and so forth. Also called the aggregate forecast or the product group forecast, it is used for sales planning, for Capacity Planning at the plants and suppliers, and for financial analyses and projections.