The enterprise software space has
hundreds of three-letter or more acronyms—from ERP, MPS, MRP and MOM to MES ext.……—that
represent technologies that help make managing business processes easier.
An ERP system in their comprehensiveness should
broadly covers: Accounting, Sales and Distribution, Purchasing Planning, Production Planning,
Shop Floor Control, and Logistics.
Here
are ten (10) TERMS & ACRONYMS usually used by ERP sales personnel or consultants.
It is SIMPLIFIED so that non-technical people won’t get lost in the alphabet soup of software and technology.
These are not originally mine, as I have gather the terms & acronyms from
reading and around the internet resources. (Just
google manufacturing terms & acronyms-you will get plenty resources.)
TERM AND
ACRONYMS
1. MRP - Material Requirement Planning.
A set
of technique in managing the inventory, multi-level bills of material,
purchasing. All three functions are integrated to produce a time-phase plan
showing timing and quantity of material requires supporting the MPS.
2. MPS - Master Production Schedule
The
integration of MPS should provide time phase production plan, it will analyze
the inventory, bom, and create the necessary purchase orders and work orders.
It is a record representing the quantities and timing of producing deliverable
goods manufacturing facilities has the capacity to make.
3. SFC – Shop Floor Control
The Shop Floor Control allows users to record time
entries and shop transactions of manufacturing operations. It provides detailed production data between
the releases of the manufacturing order to the completion of the production
run. It is basically a online production
log.
4. BOM - Bills of Material
A
finished product or subassembly with a list of components parts or recipe which
provide parent child relationships.
5. JIT - Just-in-Time
A
operation concept refers to the movements of material at the necessary place at
the necessary time. The implication is that each operation is closely
synchronized with the subsequent one to make that a zero inventory, stockless
production.
6. SPC - Statistical Process Control
A
quality control methodology which focuses on continuous monitoring the
production process itself rather than post-production inspection of the item
produced. The intent not to produce any defective items, by stopping the process
before it drifts out of control
7. TQC - Total Quality Control
An
approach encompassing all phases of a manufacturing organization, from design
engineering to delivery, that attempt to eliminate defect. Its includes;
process control, easy-to-see quality, compliance to spec, etc.
8. Cycle
Count
A
priority based inventory count verification process which often integrated with
ABC items classification with period date control counting.
9. ABC - ABC Analysis
A
process of sorting the total inventory into three classes- A or B or C based on
the dollar value volume of usage, normally over a full year. Normally the top 5
to 10 % of the total inventory will represent 90 % of the Total inventory value
and thus be class A items. “A” items should be given the highest degree of
attention because it represent a high proportion of the total investment in
inventory.
10. Lean
Lean is
a strategy and generally is not an ERP product function or module. It means optimizing your process and keeping
inventory as low as possible and reducing waste at every step. Off course the purist would insist on mimicking the kanban card systems.
That
is what Sage Manufacturing helps you to achieve. (haha! Can’t
help it but to inject this.)
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