Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

Search the Dictionary of Terms

Search Results: 1271-1280 of 2469 results

  • Just-in-Time (JIT)

    A quality concept first perfected by the Japanese. Its basic tenet is the elimination of waste: the waste of overproduction, unneeded motion, transportation, excessive inventory and production and labor time. The term has been adapted to mean that previously held maintenance, repair, operating (MRO) inventory items are outsourced to JIT suppliers who may provide next day delivery. JIT generates best value through supplier partnerships that generate savings through labor, inventory, production, and processing costs. (Business, 2002)

  • Kaizen

    An approach to Total Quality Management (TQM) originating in Japan. It is the Japanese word for “improvement” and can be described as continuously improving by making small improvements, mainly in process type improvements. If effectively practiced, it eliminates waste and generates dramatic improvement and cost savings. During the TQM revolution, many organizations practiced Kaizen in their manufacturing operations. (Business, 2002)

  • Kanban

    A Japanese production management technique that uses cards attached to components to monitor and control workflow in a factory. It was first developed by the car manufacturer Toyota. Its theory became part of the total quality management movement. (Business, 2002)

  • KD


    See Also: Knocked Down (KD)

  • Keiretsu

    A Japanese loose conglomerate company that promotes interdependencies between firms with interlocking interests in each other and is characterized by close internal control, policy coordination, and cohesiveness. Keiretsu business groups are alliances between firms that share close buyer-supplier relationships. (Business, 2002)

  • Kickback

    The payment of something of value to an individual with the goal of persuading or influencing his or her decision or performance in a certain situation. May be in the form of cash or favors and is usually unethical.

  • Knocked Down (KD)

    A requirement that goods be shipped disassembled to reduce space required for transportation and storage or to achieve economies by having the product or goods assembled on-site. (ISM, 2000)

  • Labor Force

    All persons over the age of 16 who are either working for pay or actively seeking paid employment. (Schiller, 2000)

  • Labor Surplus Area

    A civil jurisdiction that has a civilian average annual unemployment rate during the previous two calendar years of 20 percent or more above the average annual civilian unemployment rate for all states (including Puerto Rico) during the same 24-month reference period. The Administrator for Federal Procurement Policy uses the LSA list to identify where procurement set asides should be emphasized to strengthen our nation's economy; The Small Business Administration uses the LSA list for bid selections for small business awards in Historically Underutilized Business Zones (HUBZones). (United States Department of Labor, Employment and Training Administration, Office of Adult Services, Labor Surplus Area online)

  • Labor-Hour Contract

    A variation of the time and materials (T&M) contract differing only in that materials are not supplied by the contractor. Provides for the acquisition of services on the basis of direct labor hours at specified fixed hourly rates; is generally used when it is not possible to estimate the extent or duration of required work.

Advertisement

Advertisement