| Glossary for Manufacturing |  |
| activity manager A person responsible for planning or carrying out a project activity. actual completion date The date on which the items of a production order are (partially) completed or rejected for each operation in the Shop Floor Control (SFC) module. The user can overwrite the date. actual input The total input quantity of a work center/machine for operations that are Ready to Start during the target period. actual output The total output quantity that is reported complete, for operations at a work center/machine during the target period. actual queue The actual input minus the actual output of a work center/machine. Note that the queue includes active operations as well as operations waiting to be carried out. added costs The increase in value of an item when the item passes through a stage in the production process. Added costs are posted to detailed cost components whereas non-added costs are posted to aggregated cost components. For purchased items, added costs are costs of materials plus surcharges. For items transferred between warehouses, added costs are the warehouse surcharges. For manufactured items, added costs are operation costs plus surcharges. aggregate To total figures or amalgamate amounts; to merge items in a higher plan level. Opposite of explode, disaggregate. aggregated cost component A cost component that contains aggregated costs. Each item has cost components which have been added together for the following costs: Materials costs (contains raw materials costs) Operations costs (contains operations costs and subcontracting costs) Surcharges (contains item surcharges and warehouse surcharges) In inventory, value of goods is calculated and posted by the three aggregated cost components. However, operation costs, production variances, and production surcharges are calculated and posted by detailed cost component. Antonym: detailed cost component aggregated cost component See: detailed cost component aggregation relationships A specification, expressed as a percentage, how items are aggregated or disaggregated. To aggregate items means that different items are grouped to form product families for planning purposes. This is also called a planning bill of material. To disaggregate items means that a product family is split up into smaller families, or into items. Aggregation relationships can have the same structure as a single-level bill of material. However, similar to production bills of materials, also multilevel structures can be created. Example allocation An item quantity that is assigned to a specific order but that is not yet released from the warehouse to production. alternative material A substitute for a BOM material that the system can select in case the standard material is out of stock. An alternative material is supposed to meet the same specifications, but only in the context of a BOM for a specific main item. See: alternative items alternative tool type A substitute for a tool type that is not available for use, for example, when a tool is being refurbished. anonymous item An item with an Anonymous order policy. This means that the item is produced or purchased before a customer order is received. If an anonymous item is a manufactured item, it is produced in a make-to-stock production environment. A generic item is typical for a to-order environment. The order policy can be To Order but also Anonymous. In case a generic item is anonymous, a product variant is configured without using a PCS project. answer The response in a question-and-answer type of user/system interaction (in the Product Classification (GRT) module). The response can be of three types: Numeric For example, 5 Alphanumeric For example, RED Answer & Follow-up Based on an answer a new question is raised. answer group A set of predefined answers from which an user can select an value in the classification process. antedating To enter a date in the past when recording the issue of materials or deliveries of end products into inventory. This is useful if the user is updating the system some time after the actual manufacturing process took place. aspect An aspect is a specification of a feature. assembly assignment The set of resources assigned to an assembly line for a particular period of the day. The resources are divided over the line stations to create a balanced line. Assignments are defined for an assembly line. For each assignment, you specify the cycle time and its activity ranges, which are the period and time ranges for which the assignment is effective. The process characteristics that you define for an assignment include: Man occupation Machine occupation Work team Operations These process characteristics are linked to other assignments that are, in turn, linked to the assembly assignment. When an assignment is in effect, the assignments that are linked to it are also in effect. assignment types Two types of assignments exist, both of which exist at the same time. The average assignment is used for more general purposes, whereas the nonaverage assignment has a very specific period and time range. Average assignments Use an average cycle time that is based on the cycle times of the nonaverage assignments for the day. LAC uses the average assignment in planning. Planning in LAC is based on cycle time, calendar, and availability type. Nonaverage assignments Use time-based cycle times that are based on the operations performed on the line. The cycle time can vary according to the time range that is provided for the assignment. Nonaverage assignments are used to define order content. For generated (nonfrozen) orders, the order content is based on the first active, nonaverage assignment. For frozen orders, the order content is based on the nonaverage assignment that is in effect at the time that the order is frozen. Nonaverage assignments are also used to offset the lead time during sequencing. When the order is sequenced, a lead time is calculated for every order. This lead time is based on the cycle times, and the applicable cycle time is retrieved from the nonaverage assignment. Note An average cycle time is not a mathematical average, but is a value that you consider to be a suitable average for the nonaverage cycle times over the course of a full day. assembly line A set of consecutive line stations in which FAS (Final Assembly Schedule) items are manufactured. The items are manufactured by passing the items from line station to line station and by carrying out operations at each line station. An assembly line is subdivided into a number of line segments separated by buffers. An assembly line can be either a main line or a supplying line. assembly-material issue note An order document used to report the estimated, allocated, and issued quantities of required materials for the production of FAS items, arranged by line segment. assembly part A component used on an assembly line. An assembly part forms the link between Configurator and Enterprise Planning. Configurator generates the requirements for assembly parts and Enterprise Planning plans the production or purchase of the item. assembly routing sheet An order document that lists the assembly operations for the production of FAS items, arranged by line segment. available capacity The total capacity available, for either a day or a week, usually based on the work center calendar. average setup time The time required for setting up or changing over a machine before you start running the machine. Setup time can be long, for example, if you change over from using black paint to using white paint. Setup time can be short, for example, if you change over from using white paint to using yellow paint. The setup time must indicate an average of all possible setup times. backflushing The automatic issue of materials from inventory, or accounting for the hours spent manufacturing an item, based on theoretical usage and the quantity of the item reported as complete. backlog All the customer's orders that are received but not yet shipped. Sometimes they are referred to as open orders on the order board. In assembly line production, orders which are behind schedule. base unit If quantities expressed in alternative units are used in calculations or formulas, these quantities are first converted to the base unit. For each company, base units must be defined for weight, length, surface area, volume, and time. basic capacity The normal daily number of operation hours of the resource units of a work center (resource). A resource unit can be a machine or an employee. basic capacity See: normal capacity BCM See: bill of critical materials bill of critical capacities Bills of critical capacities (BCC) indicate the work centers that are regarded as critical in the Master Planning processes. Critical capacities are usually the bottlenecks in a routing. Enterprise Planning uses the bill of critical capacities to generate the rough capacity requirements for critical capacities. bill of critical materials A bill of critical materials (BCM) indicates the components which are regarded as critical during the production process of a plan item. A bill of critical materials is a kind of summary of the BOM, which contains only the more important components. Typical examples of critical materials are: Components with long lead times Subassemblies with a high capacity load for the internal or external production system The Enterprise Planning package uses the bill of critical materials to generate the critical material requirements for critical materials. Synonym: BCM bill of material (BOM) A list of all parts, raw materials, and subassemblies that go into a manufactured item and show the quantity of each of the parts required to make the item. The BOM shows the single-level product structure of a manufactured item. blocking reason The reason an operation is temporarily not allowed to proceed. Reasons for blocking are: The quality must be inspected. The equipment has failed. The customer did not pay the last installment. BOM level When a product is manufactured, components are assembled into subassemblies, and those subassemblies are in turn assembled into the final product. The components that go together at each stage are described in a bill of material. Each stage is one level in the bill of material. The listing of the wheel components is one level in the bill of material. The listing of the subassemblies of the bicycle is the highest level, and is frequently referred to as level zero. Example A bicycle has one frame and two wheels. The frame is made of three tubes. The wheels are each made of one rim, one hub, and 35 spokes. BOM quantity The number of manufactured items to which a bill of materials (BOM) applies. The BOM quantity enables you to specify very small item quantities as BOM components. Example You need very small amounts of certain colors to mix one liter of a specific paint, Cotton White. Therefore, a BOM quantity of 1000 liter is defined. The component quantities for the paint can then be as follows:
Paint Cotton White, 1000 liter:
White | 999 liter
Yellow | 0.6 liter
Red | 0.2 liter
Blue | 0.2 liter
Synonym: BOM unit BOM sequence number The BOM sequence number allows you to define more than one component item for each position. These interchangeable components can have different dates when they are valid. ERP LN also uses sequence numbers when you replace items in BOMs. Example Say, you make bicycles and use frames that you buy from supplier A until August. However, after August you will use identical frames that you buy from supplier B. Do not use a new BOM position number for the second frame. Instead, use a new sequence number. BOM unit See: BOM quantity bottleneck work center A work center that determines or limits the production rate of an RPT item when scheduling orders. The work center calendar determines the maximum number of hours per day for planning orders of repetitive items. bucket A quantity of time used for planning and backflushing. budget A cost estimate in the preproduction stage of projects. Includes an estimate of future costs and revenues related to expected activities. A budget is linked to a calculation group. Budgets within the same calculation group can therefore be used for simulation purposes. buffer An assembly line workstation where no operations are carried out, and where orders are waiting to enter the following work station. You can use buffers to change the sequence of products from one line segment to another. Buffers in ERP LN are random access type. buffer (FIFO) The orders that came in first go out first. As a result this buffer is just a 'pipeline' which can have a certain capacity. No planned sequence change can take place so no line rules can be linked to FIFO buffers. buffer (random access) Buffers with random access places. During the sequence process, ERP LN checks these access places to achieve a proper sequence on the next line segment. Line rules can be linked to random access buffers. Line rules sequence the assembly orders which enter the random access buffer. calculation Calculations are used in GRT to answer questions in a numeric way. The questions are linked to feature aspects. For example, the surface of a seat can be calculated by answering two questions: width and length. When the two answers are multiplied, the result is a return code for the classification. calculation group A code representing a group of projects the user wants to compare financially. You can assign a calculation group to: A budget A main project (as long as the calculation group is not assigned to another project or single project) A single project (as long as the calculation group is not assigned to another main project or single project) calculation office A work center that determines the enterprise unit for a project or production order and that has an administrative function. For production orders, operations can be carried out in the calculation office, because the calculation office can act as a regular work center. calculation office variance The variance in financial production results that is not accounted for by the price variance and the efficiency variance. A calculation office variance can be caused by an alteration of an end item's Fixed Transfer Price (FTP), or by differences between the estimated and the actual surcharges. The calculation office variance is used to empty the WIP so that all costs are accounted for. calibration interval The interval between one calibration and the next. The interval shows when the next calibration will take place: after n days, or after n times used. capacity unit The unit in which the capacity of an inventory location is registered. It usually applies to the physical quantity area, volume, or weight and can be converted into the inventory unit. checklist An order document to check whether everything is present for the release of a production order. It lists the required materials, tools, machines, and so on. classification A process to group items according to predefined features. This also results in a coding system by which item codes can be generated. The reason for doing this is to easily retrieve items, matching certain features. CLSO See: clustered line station order clustered line station order Represents all the material requirements for a line station for a day. A CLSO consists of user-defined buckets. The material requirements are combined for each bucket. In Assembly Control, transactions can be carried out per line station and per period, instead of per order. ERP LN can combine the same materials for a specific period into one material line. After doing so, the cumulated quantity is stored in the CLSO. This accumulation reduces the number of transactions that are necessary, because the transactions are performed for a specific bucket. Acronym: CLSO See: bucket collective cutting list A list to cut materials for multiple production orders that are made from the same material. A cutting list is sorted by material code and item group. Using a cutting list can save time. collective sawing list A list to saw materials for multiple production orders that are made from the same material. A sawing list is sorted by material code and item group. Using a sawing list can save time. compile To translate all the source code of a program from high-level language into object code prior to execution of the program. Object code is an executable machine code or a variation of machine code. completion date The date on which the work on a project or order is finished. The completion date of a production order is the date on which the order receives the status Completed. The completion date of a project is the date on which the project receives the status Finished. You can still perform certain financial transactions on the order, after it is completed, until you close it. The same is true for projects. constraint A set of decision rules (constraints) that control the translation of the customer requirements into the product structure of the variant. These constraints indicate which components and operations will be used in a specific product variant. constraint In ERP LN, a means to check, restrict, or compel to avoid or perform some action. In the Product Configuration module, a constraint is every possible decision rule or calculation conceivable that can be carried out during the definition of the product variants. You can use constraints in the product model for product features, generic BOMs, routings, price lists, and item data. You can use a constraint editor to define constraints. Among other things, constraints allow you to indicate under which conditions certain combinations of options are acceptable, mandatory, or not acceptable for product features. You can also indicate which bill of material components and/or operations must be included or excluded, what the purchase or sales price structure for a product variant is, and so on. In the Product Classification module, a constraint consists of one or more constraint lines that define the conditions under which certain return values or calculation results are included in the classification code during item classification. constraint In the Product Classification module, a constraint consists of one or more constraint lines that define the conditions under which certain return values or calculation results are included in the classification code during the classification of items. For example: If the chair is red, include r in the classification code. If the chair is blue, include b in the classification code. constraint identification code The code that uniquely identifies a constraint of a generic item. constraint validation message Error messages during the configuration process that can be used in constraints (constraint rules). During the configuration process, ERP LN checks if the selected feature or option comply with the conditions defined by the constraints. If the selection does not meet these conditions, ERP LN will issue one of the messages recorded in this session to indicate which options are allowed. constraint validation message System messages showing the constraint rules during configuration. These rules are part of constraint texts, in the form of either codes or text. Constraint validation messages only refer to constraint sections of type Validation. container A vessel used to store or move material. costing work center A work center, when linked to a planning work center, that is used to calculate the end item unit costs, WIP transfers, and production results. The financial transactions related to production orders are then posted to the costing work center. The link between a costing work center and a planning work center enables you to replan production order operations. If required, you can change the work center that is used to carry out an operation without disturbing the costing process. cost item An item which is not kept in stock but to which costs are allocated. Example, water, electricity. cost price The cost incurred by manufacturing or purchasing a single item (inventory valuation). cost price surcharge The amount charged in addition to the usual cost incurred when manufacturing or purchasing a single item. count point An operation in a routing where the quantity of completed and rejected items must be determined explicitly. If an operation is a count point, completion of that operation must be reported separately. The quantity completed in follow-up operations must not exceed the quantity completed in the count point. If an operation is not a count point, it can be set to Completed automatically upon completion of a follow-up operation. The quantities completed and rejected are then determined by the completed quantity in the count point. covering note The order document that accompanies a product during the manufacturing process, and that is used for identification purposes. critical BOM level The lowest level at which the relevant plan item appears in the bill of critical materials. critical work center A work center that is defined by the user as a bottleneck. current operation The operation currently carried out with the earliest start date. If more than one operation meets this criterion, the operation with the lowest operation number is the current operation. There can be only one current operation at any one time. customized item An item produced on a customer specification for a specific project. A customized item can have a customized BOM and/or a customized routing and is normally not available as a standard item. A customized item can, however, be derived from a standard item or a generic item. cutting list An order document that lists the materials to be cut from a larger piece of material, for example, a sheet of metal. cycle time In ERP LN, the time between completion of two separate units of production. For example, the cycle time of motors assembled at a rate of 120 per hour is 30 seconds. The cycle time is also equal to the time that a product stays in one position on a assembly line, or the time that an operation is carried out on an item in a work station (excluding setup time). delivery date The date the finished items are finished according to the planning. demonstrated load factor Combined efficiency and utilization. The ratio of actual output to available capacity, for an operation performed at a given work center or machine. depreciation code The depreciation system according to which depreciation, value reduction, revaluation, and so on are calculated. desired queue The difference that the user wants between the output and input of a work center. This value is the default for initial queue calculations. detailed cost component See: aggregated cost component detailed cost component A cost component that contains non-aggregated costs. These costs originate directly from: Surcharges Operations Purchase Detailed cost components result in a price structure where all costs have been broken down. Production order costs, production variances, and production surcharges are calculated and posted by detailed cost component. However, in inventory, the goods are calculated and posted by the three aggregated cost components. Antonym: aggregated cost component disaggregate A process that splits a family into smaller families, or into items. Disaggregation is used in planning procedures, for example, to split the demand plan or the production plan. The split is based on a disaggregation rule, such as one of the following: Planning percentages (defined in the aggregation relationships) Inventory CTP volume You can also disaggregate items that are not part of a family. earliest finish date The earliest date an activity can end, taking into account previous and next activities and the company calendar. The earliest finish date can be calculated for activities in the network planning and for operations in the production planning. effective date The first date on which the relevant standard cost price takes effect. effective date The date on which the validity of the materials or the operations is checked. ERP LN considers a material or operation to be valid if this date falls between the effective date and the expiry date of a material or operation. The effective dates are used in the explosion process to create demands for the correct items. efficiency variances A part of the production result that is created by differences between the estimated and actual material quantities and hours. The efficiency variance shows how efficiently materials and resources are used. E-item See: engineering item end item An item that is ready to be delivered to a warehouse. An end item is produced at the end of a dangle routing (coproducts and by-products) or a main routing. engineering item An item in the process of development. You can define multiple revisions of an engineering item. Typically, the most recent revisions are still in a design or test phase, another revision may have been taken into production, and older revisions are obsolete. A normal item can only become revision-controlled when it is copied from the Engineering Data Management module. Synonym: E-item engineering item relationships A link between a particular E-item revision and one or more standard or customized items. You can use the relationship to implement a design change incorporated in a new E-item revision by copying the E-item data to the item defined in the relationship. engineering module In Assembly Planning, a system, or, in other words, a logical unit of assembly parts, that is typically not manufactured as a separate physical unit. For example, the electrical system of a car is the logical unit of all parts required for the electrical system. It is, however, not manufactured as a separate physical unit, but integrated in the dashboard, doors, and so on. An engineering module has no routings, assembly lines, options, and so on, and is for design and planning purposes only. In the bill of materials (BOM), the engineering module is the top layer of the nonconfigurable section of the BOM. enterprise planning order group A user-defined group of planned production orders. estimated quantity The quantity of an item that is planned for use in a particular production order. The estimated quantity is made up of the net quantity plus any additional quantities used to compensate for anticipated material losses. exchangeable configuration A configuration is exchangeable with another configuration at a particular point on the assembly line, if at that point the two configurations have the same specifications. exponential smoothing A demand forecast method that takes account of recent data over and above past data. family In Product Classification, a collection of items with common features. family structure A multilevel hierarchy (tree) of product families. Product families are part of a main family group. Lower family groups can be linked to a higher family. FAS item A generic item with the FAS (Final Assembly Scheduling) order system. FAS items are produced in a mixed model flow process on an assembly line. feature A property of an item which is used when you classify items. For example, a frame and a wheel are features of the item bike. feature Characteristics which can be combined and subsequently be linked to generic items to compose a product variant. An example of a feature is color. finalize The final action when you actually copy data from engineering bills of material (EBOMs) to production bills of material. To copy data, you can either use mass BOM changes (MBCs), or manually copy the BOM lines. fixed costs Expenses that do not vary with the production volume. Examples of these costs are the depreciation costs of machines and buildings, rent, and property taxes. Operation rates and surcharges can be attributed to the variable costs or the fixed costs. Antonym: variable costs fixed costs See: variable costs fixed duration An indication whether the production time is fixed, or is dependent on the order quantity. If the production time has a fixed duration, then it equals the cycle time. If it is indicated that the production time does not have a fixed duration, the cycle time is multiplied by the order quantity. For example, baking one bread in the oven takes one hour. Baking a hundred breads at once also takes a fixed duration of one hour. flatten To bring down a multilevel structure to one level. As a result, all elements of the hierarchical structure are the direct children of the parent item. This process can be used to enhance the calculation of assembly part requirements. Example Once in while, a product structure is flattened, and the result is stored separately. This way, ERP LN does not need to browse the structure each time the assembly part requirements are calculated, because all parts that are required can be read at once. float time The time between two activities, expressed in days. Example If activity A and activity B have a end-start relationship with a delay of three, the network planning shows that activity B starts three days after activity A has finished. floor stock A stock of inexpensive material present on the shop floor that can be used in production without recording each issue of material individually. Floor stock is not backflushed and is not part of the estimated costs. freeze To deactivate line stations, line segments, line station orders, and the like. If something is frozen, no changes are allowed. For example, a line station order can be frozen because the production process is too far advanced to be able to process the change. FTP inventory valuation method Fixed transfer pricing is an inventory valuation method. The fixed transfer price is a calculated inventory value, based upon calculated material costs, operation costs, and surcharges. The FTP valuation price includes the surcharges by warehouse. generic item An item that exists in multiple product variants. Before any manufacturing activities are performed on a generic item, the item must be configured to determine the desired product variant. Example Generic item: electric drill Options: 3 power sources (batteries, 12 V or 220 V) 2 colors (blue, gray). A total of 6 product variants can be produced with these options. generic price list A product variant that is generated from customer specifications can have a detailed sales price based on the selected options. Purchase prices for generic items can also be generated. The purchase price is used to calculate the cost price. Matrices can be defined if options exist for different product features that have mutual relationships that influence the purchase or sales price. inspection note An order document on which the inspected and approved quantities of finished products can be recorded. instrument A tool that is used during quality tests to measure particular characteristics of an item. Example
Instrument | acidimeter
Characteristic | pH value
item subcontracting The entire production process of an item is outsourced to a subcontractor. item surcharge An item surcharge is the basis for extra costs or discounts (in terms of percentage of fixed amounts) in the cost/valuation price structure for items belonging to the given item group or warehouse. Surcharges are linked to a price calculation code. Kanban label A document that authorizes the movement of goods to the shop floor, between operations, or from the shop floor. Previously called pull note. lead time The time between the production start date and the delivery date. The lead time can include order preparation time, transportation time, and inspection time. lead-time offset The cumulative lead time of the production process, calculated from the production stage where the relevant critical material or critical capacity is required to the final stage of the production process. The lead-time offset is a factor in determining the start date of the critical material or critical capacity requirement. The lead-time offset can be expressed in days or hours. lifetime serial number A number to identify a tool. A lifetime serial number can be, for example, a combination of the functional number and the year of purchase. Lifetime serial numbers are used to group the components of a multipiece tool. Multipiece tools without a lifetime serial number can have components linked either with or without lifetime serial numbers. Example A multipiece tool X has a life time serial number 1990. One of the following must be true for the tool's components: The lifetime serial number of the components is the same as the multipiece tool (that is, 1990). The components that are linked to the multipiece tool do not have a lifetime serial number. line mix A set of production orders that are produced successively on an assembly line. Before production starts, the line mix is sequenced to determine the order of production. line segment A set of consecutive assembly-line work centers on an assembly line between two buffers. The first buffer is the beginning of the segment, the next buffer is the first part of the next segment. line sequencing The determination of the sequence order used to start the production of items in a segment of a production line. The sequence order may be changed from one line segment to the next. line station A work center that is part of an assembly line. A line station is used in the production of FAS (final assembly schedule) items. A line station can have multiple positions, which enables more than one item to be present in one line station. line station order Production order for an assembly line station. line-station variant Holds identical operations and materials that are used at a specific line station for multiple assembly orders. In this manner, the identical operations and materials are stored only once, rather than for each assembly order. When line station variants are used, less data storage is required, and the performance is enhanced. Example You produce cars with various features, including two types of wheels: broad and narrow. In the wheel line station, in which the wheels are fitted, all cars with broad wheels are one line station variant, and cars with narrow wheels are another line station variant, regardless of any other specifications, because the other specifications are not relevant to the wheel line station. Synonym: LSV LSV See: line-station variant machine In ERP LN, a mechanical object on which operations can be carried out to produce items. Machines are linked to operation rates. The operation rate and the labor rate together form the basis for the actual costing of production orders. machine hours The machine capacity in hours required to carry out the operation. The formula ERP LN applies to calculate the machine hours depends on whether or not the operation has a fixed duration. If the operation has a fixed duration, ERP LN applies the following formula to calculate the machine hours: If the operation does not have a fixed duration, ERP LN applies the following formula to calculate the machine hours: main assembly line An assembly line that produces end products. An assembly line is a set of consecutive line stations where FAS (Final Assembly Schedule) items (and sometimes other item types) are manufactured. main item The end result of a production order. A main item is either changed to an end item (for delivery to a warehouse), or delivered directly to the customer in bulk. main work center A work center that is subdivided into subordinate work centers. man hours The man capacity in hours required to carry out the operation. The formula ERP LN applies to calculate the man hours depends on whether or not the operation has a fixed duration. If the operation has a fixed duration, ERP LN applies the following formula to calculate the man hours: If the operation does not have a fixed duration, ERP LN applies the following formula to calculate the man hours: mass BOM change A mechanism to simultaneously make multiple changes to the engineering bills of material of several items. You can use mass bill of material changes to concurrently carry out several of the following actions: Modify EBOM lines Copy E-item revisions to production items Copy EBOMs to productions BOMs Synonym: MBC master company In a multicompany situation, a master company is used to synchronize data in all companies. Data that is entered or generated in the master company, for example, the line structure, can be replicated to the other companies. The master company can either be one of the companies of the assembly lines, or a separate company. material The raw materials, components, and subassemblies used to manufacture an item. A cost item, for example, electricity, can also be treated as a material. material issue note An order document that reports the estimated, allocated, and issued quantities of required materials for a production order. If you are using SFC order groups, you can combine the material for all the production orders in the group into one document, the collective material issue note. material list An order document that is used to report the material requirements of a production order. The document reports both the estimated quantities and the inventories on hand of the materials. mathematical operator Denotes or performs a mathematical operation or function; for example, add (+) and subtract (-). MBC See: mass BOM change microrouting A series of steps that is linked to a routing operation to which you can connect instructions, tools information, and process information. When a production order is released, the information that is linked to the operation steps is given to, for example, the shop floor operators to support their jobs. See: operation step minimum order quantity The minimum quantity of items to be purchased or produced. When planned orders are generated, the quantity of items to be purchased or produced is never less than the minimum order quantity. The minimum order quantity prevents the purchase or production of this item in quantities that are too small. module A planning unit for a customized, manufactured, or purchased part, for which the logistical planning is related directly to the project network planning. A module may be a more or less complex compound part or a single part, such as a long delivery time part. move time The time that a semifinished good is in transit from one operation to the next operation. After the last operation, the move time is the time to transfer the finished good to the warehouse. Move time is one of the lead-time elements ERP LN plans according to a specific calendar. moving average The average value of the present inventory, which is used in order to calculate the administrative price when you issue inventory. The inventory value is based on historical purchase prices. multilevel bill of material A BOM that lists the subcomponents of the components, and any eventual subcomponents. In the multilevel BOM, the final product is at level zero. multipiece tool A tool with detachable components that operate together during an operation. Note You can group the elements of a multipiece tool with a life time serial number. Example A die is used for fixture. The die is made up of the following components: Top die Bottom die Punches Guide pillars The die is defined as the multipiece tool, and the pieces are defined as the components. net quantity The quantity of a component or material that is theoretically required to make a certain quantity of a product. This quantity is referred to as the net quantity because in practice you may need more than this quantity to make up for certain losses of the material or the product. network planning The network planning includes all the activities required to carry out (plan and control) a project. The relations within the network show the interdependent activities. normal capacity The average capacity of a machine or work center that is used as the basis for the capacity utilization. Synonym: basic capacity norm table A table that contains the times required to perform a task (norm times), or the numbers of times that a task can be performed in a specific unit of time (norm units). The norm times or norm units depend on two series of values presented in the columns (X-axis) and the rows (Y-axis) of the table. Example The time that it costs to drill a hole depends on the material's thickness, and the hole's diameter. A norm table that contains norm times can look like this:
| Thickness (mm)
Diameter (mm) | 1 | 2 | 3 | 4
0.5 | 1.2 | 1.4 | 1.6 | 1.8
1.0 | 2.2 | 2.5 | 2.8 | 3.1
1.5 | 3.1 | 3.5 | 3.9 | 4.3
- The norm time to drill a hole with diameter 1.0 in a material with thickness 2 is 2.5. norm time The time that is required to perform a task. That time is determined on the basis of two values in the norm table. Example To drill a hole with a diameter of 5 mm (first value) in a sheet with a thickness of 8 mm (second value) takes 0.5 minute (norm time). norm unit The number of times that a task can be carried out for a specific unit of time (minute or hour). That number of times is determined on the basis of two values in the norm table. Example Each minute, 5 boards with a thickness of 5 mm (first value) and a width of 60 mm (second value) can be sawn. Consequently, the norm unit is 5. offline date The date when a product must come off the assembly line to meet customer requirements. The offline date determines to which order combination an order for an FAS item belongs. offset The cumulative lead time of the production process. The offset is calculated from the production stage, which requires the relevant critical material or critical capacity, to the final stage of the production process. The lead-time offset is a factor in determining the start date of the critical material or critical capacity requirement. offsetting To plan orders to account for the cumulative lead-time of the production process. operation One of a series of steps in a routing that are carried out successively to produce an item. The following data is collected during a routing operation: The task. For example, sawing. The machine used to carry out the task (optional). For example, sawing machine. The place where the task is carried out (work center). For example, woodwork. The number of employees required to carry out the task. This data is used to compute order lead times, to plan production orders and to calculate cost prices. operation note An order document that contains all the information required to carry out an operation. This document is also called a job sheet. operation rate A rate that is determined by labor costs, machine costs, or overhead costs. The operation rate can be linked to work centers or tasks by an operation rate code. operation rate code A code that identifies operation rates (labor costs, machine costs, or overhead costs). The code can be linked to a task or work center. Each cost price calculation code can comprise multiple operation rate codes and associated operation rates. operation set A set of operations consecutively carried out at the same work center. operation status The status assigned to an operation. For example, Planned, Ready to Start, or CompletedThis status indicates how far an operation has proceeded. operation step A suboperation connected to a routing operation. An operation step can contain information such as, instructions, process information, and tools information. See: microrouting operation subcontracting The work on one or more operations in an item's production process is outsourced to a subcontractor. option Options per product feature are aspects that specify the product feature. For instance 'red' can be an option of the feature 'color'. option combination A specific combination of product options, for example, color or style, that are related to an assembly order. Each option combination is either a single option, or a combination of other option combinations. option set Identifies a set with product features and options for a generic item within the generic product structure. order block A group of production orders that have the same setup states and are produced on the same machine. Production orders with the same setup states can be executed on a machine without changing the machine’s setup. See: setup state order costs The (administrative) costs for placing an order. Order costs include the handling and transportation costs. The costs of the purchasing department, production planning department, and control department incurred by a production order or a purchase order. order interval The number of workdays or working hours for which all the requirements of a specific item are bundled in one (planned) order, during an order planning run. ERP LN calculates the order interval from the day when the first requirement occurs. Order intervals are used to prevent an excessive number of planned orders in one time period. order quantity increment The size of the step by which the order quantity can be increased. The recommended order quantity must be a multiple of the quantity that you specify as the order quantity increment. ERP LN verifies this when planned orders are generated. Example If the required order quantity is 62 and the order quantity increment is 8, then ERP LN recommends an order quantity of 64. Synonym: order quantity multiple of order quantity multiple of See: order quantity increment partial delivery The delivery of a part of the total order quantity. penalty cost Theoretical costs for not meeting rules on an assembly line. person hours The unit of work equal to one person working for one hour. The terms man-hours and person-hours are used interchangeably. phantom An assembly that is produced as part of a manufactured item, and that can have its own routing. A phantom is usually not held in inventory, although occasionally some inventory can exist. The planning system does not create material requirements for a phantom, but drives the requirements straight through the phantom item to its components. Phantoms are mainly defined to create a modular product structure. Example The door of a refrigerator is defined as a phantom item in the bill of material of a refrigerator. The materials of the door are listed on the production order's material list for the refrigerator. physical location The room, building, or construction site where an operation is carried out. pivot segment The segment from which ERP LN starts generating sequences. plan item An item with the order system Planned. The production, distribution, or purchase of these items is planned in Enterprise Planning based on the forecast or the actual demand. You can plan these items by means of: Master-based planning (similar to master production scheduling techniques). Order-based planning (similar to material-requirements planning techniques). A combination of master-based planning and order-based planning. Plan items can be one of the following: An actual manufactured or purchased item. A product family. A basic model, that is, a defined product variant of a generic item. A group of similar plan items (or families) is called a product family. The items are aggregated to give a more general plan than the one devised for individual items. A code displayed by the item code's cluster segment shows that the plan item is a clustered item that is used for distribution planning. plan level The level within a hierarchical planning structure. When you plan on a higher plan level, plans are general and less detailed. Example Plan level 1 is the highest plan level; the higher the number, the lower the plan level. planned input The total input quantity of a work center/machine for operations that is planned to be Ready to Start during the target period. planned output The total output quantity that you plan to report complete, for operations at a work center/machine during the target period. planned queue The planned input minus the planned output of a work center/machine. planning percentage The planning percentage determines how a plan item is disaggregated over its subitems. Example If the total demand for bicycles is disaggregated over the various types of bicycles, the demand for racing bikes is 49% of the total demand. price calculation code A specification of how a cost price, valuation price, or sales price is calculated. The code stores specific cost calculation data. The price calculation code that is defined in the Cost Price Calculation (CPR) Parameters determines the standard cost price. Other price calculation codes are used for simulation purposes. The price calculation code for customized items is stored by project. Example Specific operation rates Subcontracting rates Simulated purchase prices Surcharges price list matrix During the product configuration or product generation process price list matrices can be used to determine specific purchase and sales prices. Price list matrices can be used for recording prices, price factors, and also surcharge and discount percentages for a product variant. Tables with prices which are based on the values of a physical quantity on the X axis and the values of a physical quantity on the Y-axis. price variances The price variance of a production order is the part of the production result created by differences between the estimated and actual price of an item or hour. The price variance indicates the effect of changing rates and prices on the production result. primary work center A shared work center where the work is actually carried out. The work is planned to secondary work centers in a different logistical company than the primary work center. This enables you to plan the work to a work center in your own logistical company, but have it carried out in a different logistical company without having to use sales orders and purchase orders. For each primary work center, you can have several secondary work centers. See shared work center. process-triggered workflow Workflow in which actions are triggered by an activity, or batch or activities, in another line station. process variable A setting or an input value related to a machine, a tool, or to process quality that is relevant to carry out an operation or an operation step. For example, cutting depth, cutting speed, and temperature. See: operation step product expiry date The date that indicates an item's shelf life. product family An item that represents a group of similar plan items (or families). The items are aggregated to give a more general plan than the one devised for individual items. The aggregation relationships specify the percentage of each plan item in the product family. Use product families with care. A product family does not normally have its own BOM or routing. However, you can create production orders or sales orders for a product family, though this can lead to inconsistencies in the planning. production BOM An alternative term for the bill of material and is used to distinguish the Production BOM from the Engineering BOM. production item An item that occurs in any module of ManufacturingIt is a purchased, manufactured, or generic item that is used in a generic/production bill of material or in a generic/production routing. production order An order to produce a specified quantity of an item on a specified delivery date. production order status The status assigned to a production order, which indicates how far a production order has been processed. For example, Planned, Documents Printed, or Released. production rate The quantity of items that is produced for a specific time unit. Example The production rate can be, for example, 300 gallons per hour, or 20 pieces per minute. production schedule A range of time to which production orders are assigned whose delivery dates fall in that period. The production orders can apply to an RPT item or a scheduling area. The period length can be defined by the user. production time The lead time required to carry out an operation. The production time includes the setup time and the run time. The formula ERP LN uses to calculate the production time depends on whether or not the corresponding operation has a fixed duration. In case of a fixed duration, the formula ERP LN applies to calculate the production time is:
      average setup time + cycle time
- If the operation does not have a fixed duration, the formula ERP LN applies is:
      average setup time + (cycle time * quantity planned input) / routing quantity
product model Used in the definition of the product variant in making a sales order or quotations by translating the customer requirements into a product variant product structure The sequence of steps by which components are put together to form subassemblies, until the finished product is produced. The product structure is defined by a multilevel bill of materials, sometimes in combination with routing data. product variant identification code The unique identification of a product variant. Product variant codes make it possible to generate various variants for a generic item. Specially if a customer wants information about options and prices without any obligation. In the implementation stage of the product model, it is also used to execute system tests. product variant structure The structure of the product variant, which consists of one generic end item that is related to several generic sub-items and/or engineering modules. Generic sub-items can also have their own generic sub-items and/or engineering modules. The generic items represent the product and the subassemblies of the product. The engineering modules represent logical units, that may not constitute independent products, such as an electrical system. The product variant structure is generated by ERP LN. Based on this structure, assembly part requirements can be calculated, and assembly orders can be created. project A collection of manufacturing and purchasing actions that are performed especially for a particular customer order. A project is initiated by a customer order for items having a To Order order policy. The purpose of a project is to plan and coordinate the production of these items. For a standard-to-order production, the project is only used to link the item with the customer order. Otherwise, a project can include: Customized item data (BOMs and routings) Project planning (activity planning) A budget is a special type of project. A budget is used to plan and estimate, not to carry out production. project activity An activity that is relevant for the (rough) planning of a project. Activities are used to plan the rough material and capacity requirements of the project. Activities are also used to control the (final) assembly planning of the project. project item An item that is produced or purchased for a particular sales order. The item's project provides a link with the sales order. A project item can be recognized by its item code. If a code has been entered in the project segment, the item is a project item. Project items are created when you enter a sales order for an item with an To Order order policy. A project item can be customized to the specifications of a customer, but it can also be a standard-to-order item. project part A separate part of the project structure that is linked to a project. A project part is the basis that is used in order to determine the estimated costs of a project. Not to be confused with a subproject. project structure The project structure indicates the subprojects that belong to the main project. Project structures are especially important where there are extensive projects in an engineer-to-order situation. Project structures can be important for network planning. This is because the start dates and finish dates of subprojects can depend on the computed start dates and finish dates of the main project's activities. The costs of subprojects are aggregated to the relevant main project in the project calculation. The project structure only applies to a project with a type other than Budget. You can only delete a project structure if the main project has the Free or Archived status. quantity extra The product quantity that is assumed to have disappeared in the operation due to a limited yield, for example, the quantity lost through evaporation. This only applies if a yield has the type Continuous. The quantity is referred to as quantity extra, because an extra quantity of the product must be planned to compensate for the loss. quantity ordered The quantity to be produced in a production order. quantity planned input The quantity that should be given as input to an operation to get the required output, taking into account scrap quantity and yield percentage, and quantities reported completed and rejected. The quantity planned input is the quantity of products on which calculations of materials and hours are based. quantity planned output The quantity of the product that you expect to come out of the operation, taking into account scrap quantity and yield percentage, and quantities reported completed and rejected. When ERP LN creates a production order, the quantity planned output of the last routing operation is set equal to the order quantity of the production order. When the operation is not the last one, the quantity planned output is equal to the quantity planned input of the next operation. question A question is used during the classification of, and search for items. The user must respond with an answer. In the Product Classification module (GRT), ERP LN asks the question with a question-and-answer type of user/system interaction. queue deviation The difference between the planned queue and the actual queue on the generation date, that is actual queue minus planned queue. queue time The amount of time that an order remains at a work center before setup or work is performed on it. receipt note An order document on which the completed quantities of the products can be recorded. receiving site The site (plant) on a receiving point of the supply chain. reference designator Indicates the location to insert a component on an item, for example, where to mount an electronic component on a printed circuit board. Reference designators are often used in electronics, and can originate from a Computer-Aided Design (CAD) station. reference type A product variant may relate to a sales quotation, sales order, budget or project, or it may concern a standard variant. refurbishing The renovation of a tool after a number of usages. rejected item A product that does not meet the quality standards set for the end product or subassembly. Also called a reject repetitive item A repetitive item (also called RPT item) is a manufactured item whose production is controlled by schedules. A schedule contains multiple production orders that can be viewed, released, reported as complete, and so on, in one session. A repetitive item usually has the following characteristics: It is produced in large quantities. It is subject to repetitive demand. The production is based on a rate. The lead time is short. Anonymous items as well as to-order items can be repetitive. However, only to-order items that are Standard-to-Order can be used in RPT schedules. You cannot use generic items or Engineer-to-Order items in an RPT schedule. rescheduling message An order signal that informs the planner whether an order must be expedited (rescheduled in), delayed (rescheduled out), or canceled. result The financial results of, for example, a project or a production order. The results are reported in terms of variances. A variance is the difference between the expected (budgeted or planned) value and the actual value. You can distinguish between price variances, efficiency variances, and additional calculation-office variances. return value The code that is included in the classification code as a result of the selected answer. revision A version or revised version of an engineering item (E-item) or a revision-controlled item, that is, an item linked to an E-item. Several revisions of an E-item can exist. Example E-item: Mountain bike E-MB01
Revision | Description | Status
--- | --- | ---
A1 | Draft drawing of bike | Not released
A2 | Drawing of bike | Not released
A3 | Parent E-item of bike MB01 | Released
A4 | Obsolete bike | Canceled
revision-controlled The revision-controlled items are items in continuous development. To identify the item's version, add a revision number to the item code. If a revision-controlled item is selected, the current version is used. The obsolete versions are no longer manufactured and prototypes are not sold yet. rework order A production order to fix or upgrade an already produced or purchased item. The item that must be reworked is both input and output of the production order. roll-off line The assembly line where a product is completed. routing The sequence of operations required to manufacture an item. For each operation, the task, machine, and work center are specified, as well as information about setup time and cycle time. routing code A code that is linked to a routing. A routing code can be linked to a standard routing or an item-specific routing. routing quantity The quantity of the manufactured item on which the routing is based. A routing quantity enables you to include very short operation times in the routing of an item. Example
Routing quantity | 100
Cycle time | 60 minutes
In a 60 minute time span, 100 items are produced. Consequently, the operation time of one item is 0.6 minute. routing sheet An order document that lists all the operations required to manufacture an item, as well as the required tools. A routing sheet can also contain microrouting information that provides the operators with instructions or process information. rule Logical condition determining action. run time The time required to process a piece or lot at a specific operation. Run time does not include setup time.
    run time = production time - setup time
sales price structure Gives insight into the structure and composition of the sales prices for product variants. The sales price structure: Is used when calculating the sales price for a product variant on a sales order or sales quotation. Provides insight into the price structure and can be displayed in the Product Variant Sales Price Structure (tipcf5530m000) session. In addition to or instead of the product variant options, it can be printed on sales order documents. Note Product variant options show the technical aspects of a particular product variant, whereas the sales price structure is a commercial representation of the chosen product variant options. sawing list An order document that lists the materials that must be obtained to saw a specified length of material from a large piece, for example, a pipe or a bar. scheduling area A physical area or part of the production line for which a production schedule has been defined. Scheduling areas are defined for repetitive items. scrap Unusable material or rejects of intermediate products, for example, because of faulty components, or products lost in cutting or sawing operations. The gross material requirements and/or an operation's input quantity must be increased to account for anticipated scrap. In the BOM, you can define scrap as a percentage of the net material requirements, which is the scrap factor, and as a fixed quantity, which is the scrap quantity. A scrap quantity is mostly used to define the amount of material that is lost every time when you start producing, for example, to test the equipment. For an operation, you can only define the scrap as a fixed quantity. secondary work center A shared work center that does not have any physical resources. It is used for capacity planning. The work is actually carried out in a primary work center which is in a different logistical company than the secondary work center, and can be at a different site. It is a mechanism to enable you to plan and carry out work in several different logistical companies (if you define several secondary work centers) without having to use sales orders and purchase order. See: shared work center segment schedule A schedule that indicates when assembly parts are required. Based on the offline date of the assembly order, and the segment for which the assembly parts are required, the segment schedule indicates when the parts must be delivered to the line. Segment schedules are used for a rough calculation of assembly part requirements, when high volumes are processed, and the performance of the calculation is critical. semifinished item The product of a phantom routing, which is passed on to the next operation in the routing network. setup class A type of item characteristic that indicates how a machine must be set up to produce the item. The setup class determines the changeover time for a machine or a tool between two operations. A setup class consists of a series of setup states. In a matrix of setup states the specific changeover times can be defined. Example Examples of setup classes are color and thickness. If your setup class is color, the setup states can be red, green, white, black, and so on. See: setup state setup state An item's characteristic that is linked to an operation. Depending on the setup states of two successive operations, a machine's changeover takes longer or less long. A series of setup states form a setup class. Example If your setup class is color, examples of setup states are red, green, white, black, and so on. See: setup class shared work center A work center that has a relationship with a work center in a different logistic company. You can use this relationship to plan work in one (or more) logistic companies that is actually carried out in a different company. If this relationship is defined, you need not use sales orders and purchase orders to transfer work between work centers in different companies. The physical work center where the work is carried out, is the primary work center, and the virtual work centers in different companies are secondary work centers. See: primary work center, secondary work center shop floor warehouse A warehouse that stores intermediate inventory in order to supply work centers. A shop floor warehouse is linked to one or more work centers and can be supplied with goods by means of replenishment orders, or by pull-based material supply. The pull-based material supply methods are: Order Controlled/Batch (only applicable in Assembly Control ). Order Controlled/SILS (only applicable in Assembly Control ). Order Controlled/Single (only applicable in Shop Floor Control ). KANBAN. Time-Phased Order Point. The items stored in the shop-floor warehouse are not part of the work in process (WIP). When items leave the shop floor warehouse for use in production, their value is added to the WIP. Synonym: WIP warehouse shrinkage The percentage of material lost due to a continuous process, such as evaporation or absorption. simulated purchase prices A simulated purchase price can be used to experiment with purchase prices and to compute the results. simulation The process of doing calculations using simulated figures instead of the actual ones to see what would be the result if certain figures were changed. Opposite term is actual or operational. single-level BOM An overview of components that are directly used in a parent item. A single-level BOM shows only the relationship one level down. slack time The time between the queue start date of the next operation and the setup + run start date of the next operation, calculated by ERP LN. Difference between the slack time and the queue time on the next operation can occur if: The calendars of the work centers differ. You apply a transfer batch quantity. Note Negative slack on the last operation can occur if the planned delivery date falls after the requested delivery date. solve In Assembly Planning, the process to determine the specific generic items and engineering modules that make up a generic end item. The result of the solving process is the product variant structure. Generic items and engineering modules are stored in a generic bill of materials (BOM). The solving process selects generic items and engineering modules from the generic BOM based on effective dates and unit effectivity exceptions. standard configuration If an object (for example, a BOM line or a routing line) has a standard configuration, that object is selected when you are not using unit effectivity. standard cost price The sum of the following item costs as calculated by the standard price calculation code: Material costs Operational costs Surcharges Prices that are calculated against other price simulation codes are simulated prices. The cost price is used for simulation purposes and in transactions when no actual price is available. standard item A purchased item, material, subassembly, or finished product that is normally available. All items that are not built according to customer specification for a specific project are defined as standard items. Opposite term is customized item. A standard item can have the following order policies: Anonymous To Order standard-to-order (STO) The production of non-customized items after receiving a customer order. subassembly An intermediary product in a production process that is not stored or sold as an end product, but that is passed on to the next operation. For subcontracting purposes, a manufacturer can send a subassembly to a subcontractor to carry out work on the subassembly. This subassembly has its own item code defined in the Item Base Data. After work is finished, the subcontractor sends the subassembly back to the manufacturer. Also this reworked subassembly has its own item code defined in the Item Base Data. subcontracting Allowing another company (the subcontractor) to carry out work on an item. This work can concern the entire production process, or only one or more operations in the production process. subcontracting note An external order document that specifies a subcontracted operation and the corresponding data, such as the subcontractor, tasks, routing, and required materials. subcontracting purchase order In ERP LN, subcontracting is considered as purchasing a service from a subcontractor. Therefore, when subcontracting, a subcontracting purchase order is generated to record the subcontracted operation(s) and the associated costs. subcontracting rate The rate that is used to calculate the subcontracting costs. How ERP LN uses the subcontracting rate in the calculation depends on the calculation method: Fixed Amount by Product Operation Rate Man Hour Rate Machine Hour Rate subcontracting rate factor The subcontracting rate factor, together with the subcontracting base rate, determines the cost of subcontracting. sub-item A means to further classify items. A sub-item can either be: A component item used in a bill of material. A material used in a formula. sub plan item The identification of a plan item at a lower plan level. subsequent delivery The quantity of the material that must be issued for the production order at a future date or time. summarized BOM A form of multilevel bill of material that lists all the parts and the quantities required in a BOM. Unlike the full multilevel bill of material, a summarized BOM does not list the levels of manufacture, and lists a component only once for the total quantity used. Phantom items are not listed. A summarized BOM only contains purchased items, because all the manufactured items are made from purchased items. supplying assembly line An assembly line which produces subassemblies that are used in another assembly line. It may additionally produce items that are not used on any assembly line. An assembly line is a set of consecutive line stations where FAS (Final Assembly Schedule) items (and sometimes other item types) are manufactured. supply in line sequence The supply of assembly parts or assembly kits to a shop floor warehouse, so that they are delivered to the line station in the same sequence as the assembly orders. surcharge The indirect costs of an item, for example, overhead costs, storage costs, handling costs, and machine-maintenance costs. Surcharges can be defined as a percentage or as a fixed amount and can contribute to fixed and variable costs. surcharge base A set of cost components to which an item surcharge is applied. target period A user-defined period of whole numbers of days or weeks for which input/output data is generated. task An activity to manufacture or repair an item. For example, sawing, drilling, or painting. A task is carried out on a work center, and can be related to a machine. test An examination or check done on a characteristic. You can link one or more tests to a characteristic. time fence A reference date against which processes or statuses are evaluated. Example The assembly order time fence on an assembly line defines the end date of the period for which assembly orders must be created. If this time fence is 100 days, assembly orders must be created for product variants whose planned offline date is between now and 100 days. Similarly, a time fence can define when line station orders must be frozen, updated, and so on. time unit The unit that is used to specify the physical quantity time. tool A reusable resource that is used to perform manufacturing and/or service tasks. When you have finished with the tool, it is returned to inventory to be used for the next requirement. The tool's life is reduced each time you use it. A tool can be identified in ERP LN as a unique combination of tool type and tool serial number. tool component A part of an assembled group of tool types. tool kit A set of specific tools required to perform a single task. A tool kit can be linked to a machine, a task, and/or a routing operation to specify the tool(s) required to perform the task and/or operation. tool life The capacity of the tool expressed in the number of hours or times it can be used. tool number A number to identify a tool. The combination of a tool type, for example, hammer, and a tool serial number, for example, 1, is unique, and identifies a tool in ERP LN. tool request A tool request is created when a tool is required. One request is created for each tool/work center combination. A tool request displays data relating to: Request number. Tool type Tool serial number Work center / service center Request status How, where, and when the tool is used in the work center is determined by the tool request details, which can be found in the Tool Request - Lines (titrp0516m000) session. tool request details The tool request specifies at which work center or service center the tool is used. In addition, the tool request details specify when, where, and how the tool is used at the work center. The following production order details are displayed: Request number Request date/time Order type Order number Operation Line number Activity line Presence of the tool at the work/service center tool serial number A number to identify a tool. The combination of a tool type, for example, hammer, and a tool serial number, for example, 1, results in a unique identification of a tool in ERP LN. tool type The tool type is the first level that is used to identify the tool in the coding system for tools. Some examples of tool types are: Hammer Screwdriver Wheelbarrows Hammer 1, screwdriver 2 and wheelbarrow 3 are examples of tool types in combination with a tool serial number, and represent unique tools. transfer batch quantity The quantity or percentage of items for which an operation must be finished before you can start with the next operation. Even though an operation is not yet finished for all items in a production order, you can start the next operation for the items that are already finished. In a production environment where kanban is used, the transfer batch quantity equals the kanban size (which is the standard container, or the standard lot size). The transfer batch quantity replaces the previously used concept of overlap percentage on operation. use-up material A material that has been replaced by another item in all BOMs. After the use-up material's last allowed order date elapses, any remaining stock is used up; then, the replacement material will be used. utilization The percent of a resource (for example, hours capacity) that is used in production. valid You can use a specific entity. For example, if a date is between an effective date and an expiry date, the date is valid, and the entity can be used. validity The operating period between the effective date and the expiry date. valuation price The actual price of an item, which is used in all financial transactions that involve the item. The transactions include: Cost price of goods sold Inventory transfer Issue to work-in-process value The valuation price must be distinguished from the cost price, which is used for other purposes. The valuation price is calculated by using one of the actual costing methods (LIFO, FIFO, MAUC and Lot costing), or by using a fixed transfer pricing (FTP) method. variable costs Expenses that vary with the production volume. The materials needed for the production of end items, are always variable costs. Operation rates and surcharges can be attributed to the variable costs or the fixed costs. Antonym: fixed costs wait time The time that an order remains at a work center after an operation is completed until it is moved to the next operation. ERP LN does not plan wait times according to a specific calendar. Planning of the wait time is based on a 7 * 24 hours week schedule. warehouse transfer A warehousing order to move an item between warehouses. A warehouse transfer consists of a warehousing order of inventory transaction type Transfer. WIP transaction Any action that affects the work in process (WIP) of a production order or work center. WIP transactions can be any of the following: Issue of materials for a production order. Booking of hours on a production order. Delivery into inventory of finished products. WIP transfers between work centers. Application of a surcharge. WIP transfer The transfer of the value of the work in process from one work center to the next, in accordance with a physical transfer of a subassembly to the work center where the next operation must be performed. WIP warehouse See: shop floor warehouse work center A specific production area consisting of one or more people and/or machines with identical capabilities, that can be considered as one unit for purposes of the capacity requirement planning and detailed scheduling. work in process The amount of work to do. ERP LN distinguishes two types of WIP: Production WIP The materials, hours, and other production resources that are consumed on the shop floor to manufacture items that are not yet received in the warehouse. When the goods are received in the warehouse, the WIP decreases. PCS WIP The amount of materials, hours, and other costs related to orders that are linked to a specific PCS project. When an order is invoiced, the WIP decreases. yield The usable output from a operation expressed as a percentage of its input. Example 1: An operation in the production process for light bulbs has a yield of 98%. So, out of every 100 light bulbs produced, 98 are good on average. The remaining light bulbs are faulty, and will therefore be rejected. Example 2: Steel wires are twisted together to produce a steel cable. Due to the twisting, the cable is 10% shorter than the wires from which it is produced. So, the yield is set to 90%. yield type Determines if and how lost products come out of production if the yield percentage is below 100%. Two yield types are available: Discrete Lost products come out of production as rejected products. Continuous Lost products disappear completely, for example, through evaporation. |