Cost Cutting Terminology

 JIT:

Just-in-time, or JIT, is an inventory management method in which goods are received from suppliers only as they are needed.

MRP:

Material requirements planning (MRP) is a system for calculating the materials and components needed to manufacture a product. It consists of three primary steps: taking inventory of the materials and components on hand, identifying which additional ones are needed and then scheduling their production or purchase.

TPM:

TPM (Total Productive Maintenance) is a holistic approach to equipment maintenance that strives to achieve perfect production.

VA:

Value analysis is a set of techniques, knowledge, and skills used to improve the value of a product by eliminating unnecessary costs or improving its functions without compromising its quality, reliability, and performance. It involves understanding the components of a product and related costs.

VE:

Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes substituting materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes.

TQM:

Total quality management (TQM) describes a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work. TQM can be summarized as a management system for a customer-focused organization that involves all employees in continual improvement. It uses strategy, data, and effective communications to integrate quality discipline into the culture and activities of the organization. 

5S: Sifting, Sorting, Sweeping, Standardizing, Sustaining

ABC analysis:

ABC Analysis classifies inventory items into three categories based on their value and importance to the business: A (high-value items), B (medium-value items), and C (low-value items). The A items — typically the most expensive and most important — should be managed with extra care and attention.