Welcome to AHRMM's health care supply chain Lexicon. This database contains terms used throughout the health care supply chain field. Simply click on the link to access the entire definition.

AHRMM thanks Kate Vitasek and Supply Chain Visions for their contribution of certain terms to the Lexicon. Terms supplied by Supply Chain Visions are used with permission. Supply Chain Vision’s Glossary of Supply Chain Management Terms appears on the Council of Supply Chain Management Professionals website. AHRMM also acknowledges Michael B. Neely with Perimeter Solutions Group for his role in developing health care-specific terms.

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  • Morcellator

    A surgical instrument used for division and removal of large masses of tissues during laparoscopic surgery. It can consist of a hollow cylinder that penetrates the abdominal wall, ending with sharp edges or cutting jaws, through which a grasper can be inserted to pull the mass into the cylinder to cut out an extractable piece. Laparoscopic morcellation is commonly used at surgery to remove bulky specimens from the abdomen using minimally invasive techniques.

  • 14 Points

    W. Edwards Deming's 14 management practices to help companies increase their quality and productivity:
  • 2013 IPPS Final Rule

    revises the Medicare hospital inpatient prospective payment systems (IPPS) for operating and capital-related costs of acute care hospitals to implement changes arising from our continuing experience with these systems. Some of the changes implement certain statutory provisions contained in the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively known as the Affordable Care Act) and other legislation. These changes will be applicable to discharges occurring on or after October 1, 2012, unless otherwise specified in this final rule.
  • 24-hour Manifest Rule (24-hour Rule)

    U.S. Customs rule requiring carriers to submit a cargo declaration 24 hours before cargo is laden aboard a vessel at a foreign port.
  • 24/7

    Referring to operations that are conducted 24 hours a day, 7 days a week
  • 24/7/365

    Referring to operations that are conducted 24 hours a day, 7 days a week, 365 days per year, with no breaks for holidays, etc
  • 340B Drug Pricing Program

    The program originated with the enactment of Public Law 102-585, the Veterans Health Care Act of 1992, which is codified as Section 340B of the Public Health Service Act. Section 340B limits the cost of covered outpatient drugs to certain federal grantees and federally-qualified health centers. The 340B Program provides substantial discounts on pharmaceutical products to eligible entities such as health centers, disproportionate share hospitals and Indian Health Service grantees
  • 3D Loading

    3D loading is a method of space optimizing designed to help quickly and easily plan the best compact arrangement of any 3D rectangular object set (boxes) within one or more larger rectangular enclosures (containers). It's based on three dimensional, most-dense packing algorithms
  • 3PL

    See Third Party Logistics
  • 4PL

    See Forth Party Logistics
  • 5 Whys

    The five whys is a question asking method which is used to explore the cause/effect relationships underlying a particular problem or process. When an answer is given to a question continue by asking why the answer is appropriate. This allows for a drill down to determine a root cause of a defect or problem, or rationale for the process.
  • 5-Point Annual Average

    Method frequently used in PMG studies to establish a representative average for a one year period.
  • 5-S Program

    A program for organizing work areas. Sometimes referred to as elements, each of the five components of the program begins with the letter "S." They include sort, systemize, shine or sweep, standardize, and sustain. In the UK, the concept is converted to the 5-C program comprising five comparable components: clear out, configure, clean and check, conformity, and custom and practice. The 5-S program is frequently combined with precepts of the Lean Manufacturing Initiative. Even when used separately, however, the 5-S (or 5-C) program is said to yield excellent results. Implementation of the program involves introducing each of the five elements in order, which reportedly generates multiple benefits, including product diversification, higher quality, lower costs, reliable deliveries, improved safety, and higher availability rate.
  • 6-S

    An expanded definition of 5-S which includes safety
  • 7 Wastes

    One of the basic concepts of Lean management, the seven 'deadly wastes' are best remembered by the acronym TIM WOOD:
  • 80-20 Rule

    A term referring to the Pareto principle. The principle suggests that most effects come from relatively few causes; that is, 80% of the effects (or sales or costs) come from 20% of the possible causes (or items). Also see: ABC Classification, Pareto
  • 80-20 Rule

    A term referring to the Pareto principle. The principle suggests that most effects come from relatively few causes; that is, 80% of the dollars of products purchased come from 20% of the number of products used.
  • A/P

    See Accounts Payable
  • A/R

    See Accounts Receivable
  • A3 Method

    The A3 system is a means of describing a business process in a compact form. It was originally created by the Toyota Motor Corporation and was named for the paper size on which it was printed: A3 (11" x 17"). Toyota used the A3 methodology to help develop its famed Toyota Production System (TPS).