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Industry Terms

OEE – Overall Equipment Effectiveness takes into account the various components of the manufacturing process. These components are availability, performance and quality. This percentage can be viewed as a snapshot of the production efficiency for a machine, line or cell. This formula evaluates the effectiveness of a manufacturing operation (machinery uptime vs downtime, actual output vs potential). OEE = Availability x Performance x Quality.

RTE – Ready To Eat is utilized in the food industry. It refers to foods that are intended to be consumed as they are. They are typically packaged and refrigerated or frozen. RTE foods have specific safe food-handling guidelines.

The packaging scorecard measures suppliers on their ability to develop sustainable packaging. The scorecard measures greenhouse gas emissions related to packaging raw material production, sustainable material value, product to packaging ratio, cube utilization, recycled content usage, innovation, the amount of renewable energy used to manufacture the packaging, the recovery value of the raw materials and emissions related to the distance required to transport the packaging materials.

Radio-frequency Identification (RFID) is the use of a wireless non-contact system that uses radio frequency electromagnetic fields to transfer data (product identity) from a tag for the purpose of tracking.

Just in Time (JIT) is a strategy used to improve a business’s return on investment by reducing in-process inventory and associated carrying costs.

Retail Ready Packaging (RRP) satisfies the following questions: Is it easy to open?, Is it easy to identify?, Is it easy to shop?, Is it easy to stock?, and is it easy disposal? These products are shelf ready.

Track / Trace
The main goal of track and trace is to protect consumers from contaminated and counterfeited goods. Track and Trace is a term used in the supply chain to describe an audible electronic record to track and trace every step the product takes from the manufacturing floor to the final end user.

Life Cycle Assessment (LCA) is a technique used to asses a products environmental impact through its complete life cycle, cradle to grave.

A continual improvement process (CIP or CI), also often called a continuous improvement process, is an ongoing effort to improve products, services, or processes. This can happen over a period of time or all at once.

Total Productive Maintenance (TPM) is a method for improved machine availability through better utilization of maintenance and production resources. (deterioration prevention)

Lean Mfg.
Lean Manufacturing is centered on preserving value with less work and waste. This practice also focuses on streamlining the manufacturing process to gain efficiencies, while keeping minimum inventory on hand.

Six Sigma
Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.

Value Stream Mapping (VSM) is a lean manufacturing technique used to analyze and design the flow of materials and information required to bring a product or service to a consumer.

Serialization is the registration and labeling of pharmaceuticals with a distinctive number. It enables the complete documentation of the product throughout its complete life cycle. This allows traceability of the product. The traceability is achieved by the generation of a distinct serial number and then applied to the product package using data matrix codes or RFID. The information in a data matrix code or RFID is batch number, expiry date, serial number and GTIN (Global Trade Item Number).

Sustainable packaging is continuous improvement in the environmental life cycle of packaging. i.e. reduce waste, carbon footprint, etc. The long term goal is to improve the long term viability and quality of life for humans and the longevity of natural ecosystems. This a continuing process of improvement.

5 S
5 S is a workplace organization methodology that utilizes a list of five words. (Sorting, Straightening, Systematic Cleaning, Standardization, and Sustaining the discipline). These five words help an organization organize a work space for efficiency and effectiveness.

Cost Innovation
Providing quality products at a low cost.