Thursday, April 26, 2018

So You Are Confused By Manufacturing Acronyms.

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.)


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.)
To learn all about Sage ERP solutions  contact CAREWARE Account Manager today by calling (03) 27143855 or by emailing There are multiple licensing options; one is sure to be a perfect fit for your company.Visit :

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