Value Added

‘Value Added’ is the difference between an item’s price and the cost of producing it. The sources of value added are diverse, and include, for example, adding a brand name label, processing raw material into products, and offering service alongside a product. In Europe, value added is used as one basis of taxation. This is charged on the sale of goods and services, but intermediate consumers (such as a manufacturer buying raw materials) can reclaim value added tax paid on their inputs.

Vehicle Platform

A vehicle platform is the basis for multiple vehicle models. It incorporates all of the structural subsystems (such as floor and powertrain layout, axles, and suspension) of the relevant class of vehicle (hatchback, saloon, SUV, truck etc). Vehicle platforms help car companies control cost, because development costs, and to some extent manufacturing costs, of the platform are shared across all the models based on the platform.

Vendor Managed Inventory

(VMI)

VMI is a type of supply arrangement between a buyer and a seller. The vendor is the seller, and in VMI agrees to take full responsibility for the inventory of items sold to the buyer. The buyer identifies space for the inventory, and specifies the maximum and minimum number of items, and then is free to use or sell the items. The vendor monitors the inventory, and replenishes it so that it never falls below the specified minimum number of items in good condition. When the buyer is a retailer, the space identified for the inventory can be retail store display and shelf space.

Version Control

A version control system (or revision control system) is a combination of technologies and practices for tracking and controlling changes to files and documents relating to products and processes.

Vertical Integration

Vertical Integration describes merger or cooperation of multiple organisations in a supply chain to focus on a specific product or market area. The result is coordination of purchasing, production, marketing and distribution which can help reduce costs.

Virtual Testing

Virtual Testing is the capability to provide, through simulation, predictions of real world physical behaviour. In aerospace, it is seen as a vital move to reduce the hugely expensive ground and flight testing of a new aircraft and its constituent parts and assemblies.

Visibility Systems

Visibility Systems is a general term for visual indicators which enable staff to understand work status and condition at a glance, and to respond to priorities. This can be done with standard layouts, signal lights, kanban systems, or other methods. The distinguishing feature is that communication is rapidly executed by line of sight. Visibility systems are widely used in production, maintenance and distribution areas.

Voice Recognition/Response

Voice recognition/Response systems recognize and/or synthesize human voices. Such systems capture verbalized data for quality-control or inventory-tracking purposes (often when operators’ hands are busy), recognize spoken commands that activate equipment, and convert computer data into audible information.