| Glossary for Enterprise Planning |  |
| actual receipts The supply quantity that has already been received from the goods flow, that is, from actual orders. The actual receipts are only recorded for the current plan period. These receipts have already been included in the inventory on hand. actual scenario The scenario that contains the operational master plan or order plan, as opposed to scenarios used only for simulation, that is, what-if analysis. The actual scenario is the only scenario from which you can transfer planned orders to the execution level. aggregation relationship 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
PL 1 | Plan level 1 (product family)
PL 2 | Plan level 2 (items)
BC | Bicycles
MB | Mountain bike
T | Tandem
RB | Racing bike
allocation The reservation of inventory against a demand prior to the outbound process. You can allocate a quantity of inventory to a business partner or a particular demand order. Note The documentation sometimes states that a particular demand object, such as a sales order, is allocated to a business partner, order, or reference. That phrase actually means that ERP LN must fill the demand object with supply that was allocated to that particular business partner, order or reference. allocation rule The rule that defines how Enterprise Planning determines the quantity that must be supplied by a supplier or supplying cluster. For example, a percentage of the total supply or the supplier's capability to supply. allowed demand The maximum volume that you want to sell to customers in a particular channel. When this maximum is reached in a certain channel ATP period, you accept no more customer orders for that channel. ATP/CTP horizon The date until which ERP LN performs ATP and CTP checks. The ATP horizon is expressed as a number of working days during which ERP LN can carry out ATP and CTP checks. Beyond the ATP/CTP horizon, ERP LN does not check ATP or CTP: all customer orders are accepted. automatic-update order group A group of planned orders, for which the criteria for inclusion are stored. If you run the order planning process with the automatic-update feature activated, ERP LN updates these order groups based on the stored selection criteria. available-to-promise The item quantity that is still available to be promised to a customer. In ERP LN, available-to-promise (ATP) is part of a more extended framework of order promising techniques called capable-to-promise (CTP). If an item's ATP is insufficient, CTP goes beyond ATP in that it also considers the possibility of producing more than was initially planned. In addition to the standard ATP functionality, ERP LN also uses channel ATP. This term refers to the availability of an item for a certain sales channel, taking into account the sales limits for that channel. For all other types of order promising functionality used in ERP LN, the term CTP is used. Acronym: ATP capable-to-promise The combination of techniques used to determine the quantity of an item that you can promise to a customer on a specific date. Capable-to-promise (CTP) involves an extension of the standard available-to-promise (ATP) functionality. CTP goes beyond ATP in that it also considers the possibility of producing more than was initially planned, when an item's ATP is insufficient. In addition to the standard ATP functionality, CTP comprises the following techniques: Channel ATP: restricted availability for a certain sales channel Product family CTP: order promising on the basis of availability on product family level rather than on item level Component CTP: check if there are enough components available to produce an extra quantity of an item Capacity CTP: check if there is enough capacity available to produce an extra quantity of an item Abbreviation: CTP capacity CTP The capacity of a resource that is available in a plan period for additional production of a plan item in connection with a customer order. The capacity CTP is used in capable-to-promise calculations. capacity CTP check An availability check on the capacity necessary to produce an extra quantity of an item to deliver a customer order on time. The capacity CTP check is performed on resources in the item's bill of critical capacities or on the work centers of the item's routing, depending on the order horizon. Only the resources defined as CTP critical are checked. capacity CTP reservation Resource capacity reserved for the (as yet unplanned) production of items for which the demand could not be covered by the ATP of the items themselves. This reservation is made in the following situation: There is a demand for item A that cannot be covered by this item's ATP. A capacity CTP check is carried out for item A. The bill of critical capacities for item A contains resource R. Resource R is defined as CTP critical. The capacity CTP of resource R is higher than zero. If the demand for item A is recorded as a customer order, a capacity CTP reservation is recorded for resource R, and the resource's capacity CTP is reduced accordingly. capacity utilization The number of hours that a resource is used for production. Alternatively, a percentage indicating the capacity use as a proportion of the total available capacity. channel ATP The item quantity that can still be promised to customers in a particular sales channel. The channel ATP depends on the allowed demand for a channel. The total allowed demand for one channel ATP period forms the initial value of the channel ATP in that period. Every time a demand is recorded within this channel and within this channel ATP period, this demand is subtracted from the channel ATP. Channel ATP is used to limit the supply that goes to specific channels, and to secure that enough quantity is left to supply other important customers. channel ATP check A check on the quantity that can be promised to a customer based on the allowed demand for the channel to which the customer belongs. Note that the main purpose of channel ATP is to reserve a certain quantity of the product for other channels, for example, for strategic reasons. Example A customer belongs to the direct marketing sales channel. The allowed demand for this channel is 50,000 piece per period. A quantity can be promised to the customer, as long as the total sales volume for that channel in that period does not exceed 50,000. channel master plan An item-specific logistic plan that contains sales targets and constraints for a specific combination of a sales channel and plan item. A channel is a grouping of customers and items. A channel master plan supports sales-related functions such as demand forecasting and due-date quoting, as well as aggregation. cluster In Enterprise Planning, a grouping of warehouses connected to each other by supplying relationships. A cluster represents a geographical location that consists of one or more warehouses. Enterprise Planning considers these warehouses as one unit for planning purposes. clustered item A plan item in Enterprise Planning that is linked to a particular warehouse cluster. The inventory data for a clustered item represents only the quantities related to that specific cluster. In the item code of a clustered item, the cluster segment contains the code of the cluster. You can use clustered items to model distribution planning within a site or between sites. The planning methods in Enterprise Planning use the total inventory of a clustered item in all warehouses in the cluster. Note that a cluster can also contain just one warehouse. COLT See: cumulative order lead time component CTP check An availability check on the components necessary to produce an extra quantity of an item to deliver a customer order on time. The type of check that is performed on a component item itself depends on the CTP parameters for the component in question. The component CTP check is performed on components in the bill of critical materials or the bill of material, depending on the order horizon. Only components defined as CTP critical are checked. component CTP reservation The item quantity reserved to be used as critical components for the (as yet unplanned) production of other items. This reservation is made when the ATP data in an item master plan is updated and the following is true: The cumulative ATP for plan item A drops below zero. The plan item settings for item A are set to enable component CTP checks. The bill of critical material for item A contains item B. Item B is defined as CTP critical in the plan item settings. In this case, a component CTP reservation is recorded for item B, and the ATP of item B is reduced accordingly. The quantity of item A that will be produced with the reserved quantity of the component is stored as CTP Reservation Receipts. Note To guarantee that ERP LN can carry out an ATP check correctly, you must fill the Warehouse field in the Bill of Critical Materials (cprpd3120m000) session. ERP LN explodes the ATP of a main item to plan items that have the same cluster as the warehouse you specified on the bill of critical materials of the main item. confirmed forecast The part of the total forecast which the customer definitely expects to consume. If the customer sends the forecast by period to the supplier that plans the supply, the customer can differentiate between confirmed and unconfirmed forecast. Typically, confirmed forecast of a component is derived from actual sales orders and sales schedules of end item. The user can use various methods to determine how much of the forecast is confirmed forecast. See also unconfirmed forecast. confirmed stock The actual stock of a plan item in a VMI warehouse, as reported by the supplier to the customer. In a vendor-managed-inventory situation, where the supplier is responsible for the supply planning of an item in a warehouse at the customer's site, the supplier keeps track of the inventory levels. In that case, the supplier informs the customer of the actual stock. confirmed supply Quantity of the item the supplier has confirmed will be delivered to the customer on the planned delivery date. Note The confirmed supply can be less than the quantity requested by the customer. confirmed supply type The type of a confirmed-supply record that determines how that supply is handled. Typical examples of confirmed supply types are: Stock Supply of type Stock is already present at the customer. Immediate Supply of type Immediate is used to bring the inventory level back to at least the agreed minimum inventory level. Planned Supply of type Planned is not to be transferred to the execution level until after a later planning run. Other confirmed supply types are To Release and Released. consumed demand forecast The part of the demand plan that has been consumed by the actual demand in a specific period. As a rule, the demand forecast, extra demand, and special demand are gradually filled by actual orders. This process is referred to as consumption of forecast demand by actual demand. critical capacity requirements The production capacity of a resource, required by a plan item for the execution of that plan item's production plan. The critical capacity requirements are based on a plan item's bill of critical capacities. The critical capacity requirements are specified by plan period. critical in CTP A plan item that is critical in CTP must be checked during a component CTP check for a higher level item in the bill of critical materials. A resource that is critical in CTP must be checked during a capacity CTP check for a plan item, if this resource is included in the plan item's bill of critical capacities. critical material requirements The quantity of a plan item that is required to serve as critical components for the production of another plan item. The critical material requirements are based on the production plan for an (end) item, and on its bill of critical materials. The critical material requirements are specified by plan period. In the item master plan, critical material requirements are recorded as dependent material demand. CTP See: capable-to-promise CTP time fence The number of working days from the current moment, during which ERP LN does not perform CTP checks. The CTP time fence must be smaller than the ATP/CTP horizon. During the period of the CTP time fence, CTP is considered to be zero. cumulative ATP The total item quantity that you can promise to deliver in a particular plan period. You can use the cumulative ATP to check the availability of an item when you receive a sales order or an inquiry. Note If the item's cumulative ATP is insufficient, ERP LN can carry out a capacity and/or component CTP check to see if the demand can be met by increasing the production of the item. cumulative capacity CTP The total resource capacity that is still available for additional production up to and including a particular plan period. cumulative order lead time The total value of the item purchase lead time and the cumulative production lead time of all components. Enterprise Planning uses the cumulative order lead time to determine the minimum value of the planning horizon. Acronym: COLT customer deliveries The sales order quantities and the sales schedule quantities that have already been delivered to the customers involved. The customer deliveries are part of the actual demand. These deliveries are used to consume the demand forecast, and to generate a new demand forecast. customer orders The sales orders that have not yet been delivered to the customers involved. The customer orders are part of the actual demand and are used to consume the demand forecast. delivery schedule The dates and quantities of an item that can be promised to a customer. With this report you can determine how much volume can be delivered on time and how much is delivered late. According to the item master plan, more chairs will be completed later that month. Some of those newly produced chairs have already been promised to other customers. Example A customer wants to order 80 office chairs, to be delivered on May 1. However, the CTP quantity on that day is only 30 chairs. demand forecast The item quantity that is forecast to be required in a plan period. A demand forecast can be generated based on seasonal patterns or historical demand data. The demand forecast is part of the demand plan for a plan item or channel. demand plan The expected demand for an item, specified by period. The demand plan is the sum of Demand forecast Extra demand Special demand The demand plan belongs to the master plan for an item or channel. dependent demand A demand related to a demand for another item. Two basic types of dependent demand exist: Demand for components that are used to manufacture an item. Demand that originates from another warehouse location or a related site. With master planning, the dependent demand is equal to the sum of the following fields: Dependent material demand Dependent Scheduled Demand Dependent Distribution Demand ERP LN explodes the ATP and the dependent demand of a main item to plan items that have the same cluster as the warehouse you specified on the bill of critical materials of the main item. dependent distribution demand Demand that comprises the following: Demand arising when, at another warehouse location within the same plan site, or at a related plan site, a planned distribution order is generated. Demand which has the form of a customer order, and which is related to a multisite requirement from another site. The customer order in question is generated when, at the other site, a planned distribution order is transferred to the execution level. dependent material demand Demand for an item that results from the explosion of requirements of a production plan or a planned production order for another item. In other words, when requirements for an item's production plan or planned production orders are exploded, this leads to dependent material demand for items that occur in the former item's bill of (critical) material. dependent scheduled demand Demand that comprises the following: Demand for an item resulting from the explosion of requirements of a production order for another item. In other words, when requirements for a shop-floor order for an item are exploded, this leads to dependent scheduled demand for the estimated materials of the shop-floor order. Demand for an item in the form of a warehousing order (transfer order) from another warehouse location within your site. In other words, when at the other location a planned distribution order is transferred to the execution level, this leads to dependent scheduled demand in your item's master plan. distribution deliveries The quantity that has been delivered to other sites to meet dependent distribution demand. distribution plan The item quantity that is planned to be delivered by internal or sister-company suppliers. These planned deliveries are shown in the item master plan as planned distribution orders (outside the order horizon). The distribution plan belongs to the supply plan for a plan item. efficiency factor A variable that ERP LN uses to take into account differences in the daily availability of a resource when, for example, working overtime, hiring extra man craft, or working in different shifts. Efficiency factors impact on lead-time calculation in Enterprise Planning. enterprise resources planning An information-processing system to control the production and distribution of goods, including financial accounting. Abbreviation: ERP ERP See: enterprise resources planning execution level Within Enterprise Planning, the designation of the ERP LN packages that control the execution of orders and the actual goods flow, such as: Manufacturing Order Management Warehousing Enterprise Planning uses planning algorithms to carry out simulations and optimizations. The other packages control the execution of orders, and the goods flow. extra demand An extra item quantity that is expected to be sold in a plan period, on top of the regular demand forecast. The extra demand is part of the demand plan for a plan item or channel. Example An extra demand can be defined for an unusual large customer order or an extra market demand because of sales promotions. extra lead time Time reserved for extra activities that are necessary to fully complete a planned order. Enterprise Planning treats the extra lead time in the same way as the safety time: the order must be delivered earlier based on the extra lead time. The extra lead time is expressed in days or in hours. family CTP check A CTP check that is carried out at a higher product-family level, instead of the level of the item itself. Like the regular CTP check for an item, a family CTP check can involve several types of ATP and CTP checks. In this case, you can configure ERP LN so that, when the CTP of the mountain bike must be checked, ERP LN will in fact check the CTP of the bicycle family. Example The mountain-bike item is part of the bicycle family. family CTP horizon The time period for which ERP LN performs the capable-to-promise (CTP) check for an item on a higher product-family level, instead of the level of the item itself. The start date of the family CTP horizon is defined in the plan-item settings. The end date coincides with the CTP time fence. The application of family CTP depends on the plan period in which the delivery date of a customer order falls: If the plan period falls before the family CTP horizon, ERP LN checks the CTP of the item itself. If the plan period falls within the family CTP horizon, ERP LN checks the CTP on a higher product-family level. family item A product family of an item that represents a group of similar plan items (or families). The items are aggregated to the level of the family item 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. Synonym: product family family site The logistic company in which an item family has been defined. The family site makes it possible to redirect CTP checks to a central logistic company. When a customer order is received, the CTP is checked at the family level in the central site. Example A large manufacturer of sports articles produces baseball bats in several states. A central master plan is maintained at headquarters (the central site). Each site has the bat defined as an item, and aggregation relationships have been set up to a product family of baseball bats at the central site. firm-planned order A planned order that can no longer be modified by Enterprise Planning in an order-planning run. However, you can manually change a firm-planned order's start date and finish date, or the order quantity. fixed delivery code A code that identifies a collection of fixed dates and times on which external suppliers and internal suppliers are expected to make their deliveries to your address. For each plan item you can select the appropriate fixed delivery code. fixed delivery moment A specific date and time that you define as a firm and unchangeable time point on which goods must be delivered to you. If you defined fixed delivery moments for a plan item, ERP LN sets the unconstrained planned finish date back to the nearest fixed delivery moment. You can define incidental fixed delivery moments, or define a pattern of recurring fixed delivery moments. fixed delivery pattern A schedule of recurring fixed delivery moments. Enterprise Planning uses calendar recurrences to create fixed delivery patterns. fixed lead time The estimated time necessary to carry out a planned order. To plan an order's lead time, Enterprise Planning can either use a fixed lead time or more detailed routing data. When using a fixed lead time, the results are less precise, but the calculation is faster. fixed lead-time horizon The time period for which Enterprise Planning uses a fixed lead time to plan orders. Planning with a fixed lead time is faster than planning on the basis of routing data, but the results are less precise. The start date of the fixed lead-time horizon is defined in the plan-item settings. The end date coincides with the end of the order horizon. Before the fixed lead-time horizon, Enterprise Planning plans on the basis of routing data. Within the fixed lead-time horizon, Enterprise Planning plans using a fixed lead time. forecast The demand for an item, calculated by the customer that purchases that item, and aggregated to forecast periods according to the agreed terms and conditions. The customer sends the forecast to the supplier that plans the item supply. forecast horizon The number of days into the future on which the calculation of the inventory plan is based. The forecast horizon is expressed as a number of calendar days. The forecast-based calculation of the inventory plan is based on the following principle: The inventory plan must be equal to the expected demand during a certain forecast horizon. Example If the forecast horizon is 10 days, ERP LN aims at an inventory level for each plan period that is sufficient to cover the demand for the next 10 days. forecast period The periods to which the customer aggregates forecast caused by multiple orders. The forecast periods are based on the terms and conditions. forecast time fence The date up until which Enterprise Planning ignores the demand forecast when generating master plans and planned orders. In the first few days after the current date, ERP LN expects to receive no more sales orders than the actual sales orders that you already received. goods flow A collective term for all transactions that influence the inventory of items, such as customer orders, production orders, and inventory adjustments. Goods-flow data is recorded at the execution level of ERP LN. When the goods-flow data in Enterprise Planning is updated, this data is loaded into Enterprise Planning as a basis for the planning. This data includes both historical and planned goods-flow transactions, as well as current inventory data. For product families, ERP LN generates the goods-flow data by aggregation through the aggregation relationships. hard peg A relationship between a planned order, or an actual supply order, and an item requirement that represents a definite commitment. ERP LN cannot use the hard pegged supply for anything else than the pegged requirement, unless the peg is explicitly deleted. Pegged supply The pegged supply can be a purchase order, a planned purchase order, a production order, a planned production order, a warehousing order with transaction type transfer, or a planned distribution order. Pegged requirement The pegged requirement can be, among other things, a sales order line or a required component for a production order. Related term: soft peg independent demand A demand that is unrelated to demand for other items. Examples of independent demand: Demand for finished goods. Demand for components required for destructive testing. Service part requirements. infinite planning A supply-planning method that does not take any capacity constraints or material constraints into account. Infinite planning starts from the assumption that there are no critical constraints. In other words, it assumes that it is always possible to find or arrange the necessary resource capacity and the necessary materials to produce an item. Infinite planning is especially suitable in situations in which it is no problem to flexibly add resource capacity, and in which the supply of components is easy. internal deliveries The quantity that has been delivered internally, that is, within the same site, to meet dependent demand. inventory plan The desired inventory level, specified by period. The inventory plan is part of the item master plan. The inventory plan can also be a constant inventory level. item customer plan A time-phased overview of the demand and supply for an item related to a specific customer. ERP LN provides item customer plans to work with vendor managed inventory. The item customer plan displays data such as the forecast your customer sent to you and the confirmed supply information you sent to your customer. You can compare an item customer plan with an item order plan. The difference is, that the item order plan displays demand and supply from all suppliers or customers and the item customer plan displays demand and supply for a specific customer. item master plan An item-specific, overall logistic plan that contains planning data and logistic targets for sales, internal and external supply, and inventory. All planning data in the item master plan is specified by plan period. Enterprise Planning uses this data to carry out master-planning simulations. Within the item master plan, you can distinguish the following subplans: Demand plan Supply plan Inventory plan In addition, an item's master plan contains information about actual demand, actual supply, planned supply in the form of planned orders, and expected inventory. If an item has a master plan and channels have been defined for this item, each channel usually has its own channel master plan. A channel master plan contains channel-specific information only, that is, demand data and information about sales restrictions. Item master plans and channel master plans are defined within the context of a scenario. These scenarios can be used for what-if analyses. One of the scenarios is the actual plan. item order plan A time-phased overview of your order planning. The item order plan contains overview values for demand and forecast on one hand, and the other hand it provides information about scheduled receipts (actual orders) and planned supply (planned orders). item supplier plan A time-phased overview of the demand and supply for an item related to a specific supplier. ERP LN provides item supplier plans to work with vendor managed inventory. The item supplier plan displays data such as the forecast you sent to the supplier and the confirmed supply information the supplier sent back to you. You can compare an item supplier plan with an item order plan. The difference is, that the item order plan displays demand and supply from all suppliers and customers and the item supplier plan displays demand and supply for a specific supplier. iteration A master planning method used by the workload-control planning engine to take into account material constraints and pass them on from the lower to the higher levels in the bill of critical materials (BCM). An iteration consists of: A reverse planning pass during which ERP LN plans items in order of decreasing phase number (first the components and than the end item). A normal planning run during which items are planned in order of increasing phase number, to recompute the consequences of material constraints for all parts of the BCM structure. line assembly configuration (LAC) A planning product for assembly-driven manufacturers, for example, the automotive industry. The main functionality of LAC is assembly line planning for generic FAS items. In LAC, a fast MRP engine calculates the requirements for assembly parts that must be supplied to the assembly line. The planning of the assembly parts themselves is carried out by Enterprise Planning. LAC calculates the requirements, based on forecast and actual sales orders, and replicates the requirements to Enterprise Planning. master-based planning A planning concept in which all planning data is accumulated into time buckets with predefined lengths. In master planning, all demand, supply, and inventory data is handled in terms of these time buckets, and is stored in master plans. In master planning, supply is planned in the form of a supply plan. This supply plan is calculated on the basis of demand forecasts, actual orders, and other information. For production planning, this planning method only considers critical requirements, as recorded in an item's bill of critical materials and bill of critical capacities. Note In Enterprise Planning, you can maintain a master plan for an item, even if you plan all supply with order planning. master-planning engine The planning algorithm used in master planning to plan supply. The master-planning engine generates a supply plan for each item involved. The following master-planning engines are available: Infinite Planning Workload Control For each plan unit, you can choose the appropriate planning engine. If an item has not been assigned to a plan unit, infinite planning is used by default. master-planning horizon That part of the planning horizon which falls outside the order horizon, and for which Enterprise Planning uses master planning to plan supply. The master-planning horizon is not defined on its own, but depends on the definition of the order horizon and the planning horizon. If the order horizon coincides with the planning horizon, there is no master horizon. In this case, Enterprise Planning plans all supply with order planning. minimum cost price minimum cost price A price limit that you can define for a signal type in Enterprise Planning. If you define a minimum cost price for a certain signal type, Enterprise Planning does not generate the corresponding signal for items that cost less than the minimum cost price. multicompany distribution order A distribution order in which two separate logistical companies are involved. In ERP LN, the user can determine if the multicompany planned distribution must be transferred to either a purchase order, or a warehouse transfer. To do so, the user must define the order type for a specific company relation. net change date The date on which something changes that affects the current master plan or the current planned orders. For example, a higher demand or a change in a BOM. When a net-change simulation is performed, then items are selected based on the net-change date and flag. For example, when the flag is set and the date is outside the order horizon, then the item is skipped. Net-change planning See: net-change simulation net-change simulation A recalculation of planned orders or a master plan that starts at the earliest change in the planning data since the last simulation. Example Suppose, you did a regenerative planning on May 1, and then, a BOM is modified for item Y, effective on June 1. As a result, ERP LN sets the net-change date to June 1. In that situation, a net-change simulation only replans item Y for the period starting on June 1. Synonym: Net-change planning Antonym: Regeneration nettable warehouse A warehouse that is usually provisioned by production or purchase. The distinction nettable-nonnettable is not used anymore in the current version. nonclustered item A plan item in Enterprise Planning that is planned without referring to a particular warehouse cluster. In the item code of a nonclustered item, the cluster segment is empty. If clustered items exist that have the same item-base segment as the nonclustered item, these items are physically identical, but the inventory data differs (for example, the quantity on hand). The inventory data for a nonclustered item does not include the quantities related to specific clusters. You can use clustered items to model distribution planning within a site or between sites. If ERP LN is installed without cluster segments, all plan items are nonclustered items. nonconsumed demand forecast The part of the forecast demand that has not yet been consumed by actual demand. As a rule, the demand forecast, extra demand, and special demand are gradually filled by actual orders. This process is referred to as consumption of forecast demand by actual demand. noncritical COLT See: noncritical cumulative order lead time noncritical cumulative order lead time The total value of the item purchase lead time and the cumulative production lead time of all noncritical components. Enterprise Planning uses the noncritical cumulative order lead time to determine the minimum value of the order horizon. Acronym: noncritical COLT nonnettable warehouse A warehouse that is usually provisioned by distribution, that is, by other warehouses at the same site or at a related site. The distinction nettable-nonnettable is not used anymore in the current version. operation storage horizon The number of future working days for which ERP LN stores the operations for planned orders. For planned orders beyond the operation storage horizon, you cannot analyze the capacity use of planned orders and you cannot transfer the planned orders to the execution level. order-based planning A planning concept in which planning data is handled in the form of orders. In order planning, supply is planned in the form of planned orders. ERP LN takes into account the start and finish dates of individual planned orders. For production planning, this method considers all material and capacity requirements, as recorded in an item's BOM and routing. Note In Enterprise Planning, you can maintain a master plan for an item, even if you plan all supply with order planning. order group A collection of planned production orders, which you can use as a selection criterion to transfer planned production orders from Enterprise Planning to the Shop Floor Control (SFC) module of Manufacturing. SFC can use the same collection of production orders to organize manufacturing tasks. order horizon The time period for which Enterprise Planning uses order-based planning to plan supply. The order horizon is expressed as a number of working days from the date you carry out the simulation. If the order horizon is zero, Enterprise Planning does not use order-based planning for the item involved. To calculate the order horizon, ERP LN uses the calendar that you specified for the enterprise unit of the default warehouse to which the plan item belongs. If you did not specify an enterprise unit for the default warehouse of the plan item, Enterprise Planning uses the company calendar to calculate the order horizon. Note ERP LN moves the order horizon towards the end of the plan period) in which it falls, because Enterprise Planning must know whether a plan period falls within the order horizon. order status The status assigned to a planned order in Enterprise Planning. The order status can either be: Planned Firm Planned Confirmed performance indicator A value that indicates how well a particular aspect of a certain scenario in Enterprise Planning performs. This figure concerns a specific resource, a range of resources, a specific plan item, or a range of plan items. The figure involved can represent a quantity, an amount of money, or a percentage. Performance indicators are especially useful to compare different scenarios, resources, or plan items. phase number A number that determines the order in which plan units and plan items are planned. As a rule, plan units and plan items are planned in order of increasing phase number: first phase number 0, then phase number 1, and so on. An item has separate phase numbers for master planning and order planning. For items that belong to a plan unit, the master phase-number equals the plan unit's master phase-number. planned distribution order An order in Enterprise Planning for an internal supplier or sister company to deliver a quantity of an item. planned order A supply order in Enterprise Planning that is created for planning purposes, but which is not an actual order yet. Enterprise Planning works with planned orders of the following types: Planned production order Planned purchase order Planned distribution order Planned orders are generated in the context of a particular scenario. The planned orders of the actual scenario can be transferred to the execution level, where they become actual supply orders. planned production order A planned order in Enterprise Planning to produce a certain quantity of an item. planned purchase order A planned order in Enterprise Planning to purchase a certain quantity of an item from a supplier (buy-from business partner). planned requirement date The date for which ERP LN identifies a material requirement. If the projected inventory at that date is less than the required quantity, the planning engine generates a planned order or a reschedule-in signal. The planned requirement date of a manually entered planned order is equal to the planned order's finish date. planning horizon The time period for which ERP LN maintains planning data for an item. The planning horizon is expressed as a number of working days from the date you carry out the simulation. Enterprise Planning does not generate supply plans or planned orders beyond an item's planning horizon. To calculate the planning horizon, Enterprise Planning uses the calendar that you specified for the enterprise unit of the default warehouse to which the plan item belongs. Note Enterprise Planning moves the planning horizon to the end of the plan period in which it falls. plan period One of a series of time buckets into which all planning data in a master plan is accumulated. Plan periods are defined in the context of a scenario. Plan periods are identified by a period number, and are defined in days, weeks, or months. plan site A business location or logistic organization with its own logistic plan, which is centrally coordinated by a multisite scenario. plan status An indication of whether the data in a scenario can still be changed. The plan status can be Open or Closed. When a scenario has the Closed plan status, you can no longer modify it. plan unit A group of plan items that is planned as a single unit. A plan unit groups a set of plan items that share the production capacity of certain resources. A plan unit is planned with a specific planning engine. You can specify a planning method and planning parameters for each plan unit. A plan unit often corresponds to a production department. Usually, a production system distinguishes no more than three to five plan units. priority rule The rule on which Enterprise Planning bases the choice of suppliers. For example, the costs, supply time, or the priority of the supplier. product family See: family item production plan The planned receipts of manufactured items, specified by period. These receipts are the quantity that must be produced internally. Note that the production plan does not include the quantity of the plan item that is delivered by other sites or warehouse locations. The production plan is part of the supply plan for a plan item. projected inventory The expected inventory level at the end of a plan period. Note that the projected inventory of plan periods that are entirely in the past equals the inventory on hand. purchase plan The item quantity that is planned to be delivered by external suppliers, specified by period. The purchase plan belongs to the supply plan for a plan item. Note the distinction between purchase plan and distribution plan. The distribution plan covers the volume to be delivered by internal or sister-company suppliers. Note ERP LN uses the purchase plan to create planned orders, and not to purchase schedule quantities. reference date A date that determines when a rolling scenario is shifted forward in time. Example
Reference date | January 5
Rolling frequency | 14 days
On or after January 19, the scenario is shifted forward 14 days. The new reference date will be January 19. Regeneration See: net-change simulation release time fence The date until which you want to be able to transfer planned production orders for a particular plan item to Manufacturing. The release time fence is expressed as a number of working days from the date you carry out the simulation. Enterprise Planning needs operation data to transfer planned production orders to ERP Manufacturing. As a rule, Enterprise Planning stores operation data for a planned order only if the order's start date falls within the plan item's release time fence. replenishment plan A schedule of dates, times, and quantities for the delivery of items. The supplier creates the replenishment plan and sends the replenishment plan to the customer. resource A group of machines or employees in Enterprise Planning, corresponding to a work center in other ERP LN packages. Each operation performed to manufacture an item requires a certain capacity amount from a resource (for example, production hours). The capacity of the resource can be a constraint in the planning. The availability of a resource can be specified by using the resource calendar. resource master plan A time-phased overview of the capacity use at a certain resource. In a resource master plan, the following types of capacity use are recorded per plan period: Critical capacity requirements from master-based planning Capacity use related to planned orders Capacity use related to SFC (production) orders and service activities Capacity use related to PCS (project) activities In addition, the resource master plan contains capacity CTP information. resource order plan A period based overview of the capacity utilization of a specific resource and of the orders that require resource capacity. The resource order plan can contain the following order types/entities: Critical capacity requirements from Enterprise Planning Planned production orders from Enterprise Planning Production orders from the Shop Floor Control module of Manufacturing Project activities from the Project Control module of Manufacturing Service order activities from the Service Order Control (SOC) module or the Work Order Control (WCS) module of Service resource planning horizon The time period for which ERP LN performs resource planning. You can see the results of this planning in the resource master plan. revision The revision number linked to the messages that communicate demand and supply data between customer and supplier. A business partner can send multiple revised versions of messages with demand and supply data. Each revised version gets a revision number that has been incremented by one. The customer generates the revision numbers. The supplier uses the same revision to mark a corresponding message to the customer. rolling frequency The number of days after which a rolling scenario is shifted forward in time. The number of days by which a plan is shifted forward equals the value of the scenario's rolling frequency. Note that the rolling frequency is defined in calendar days. Example If the rolling frequency is seven days, the scenario will be shifted forward seven days, every seventh day. rolling scenario A particular type of scenario that is shifted forward in time. You can specify a rolling frequency to determine the number of days after which ERP LN must roll the scenario. In the course of time, the current date will reach or exceed a certain reference date plus the rolling frequency. When this is the case, the scenario's start date and finish date, the plan period division, and the reference date itself are shifted forward. scenario The identification of an overall planning solution. Each scenario represents one overall planning solution, and involves particular settings for the planning of items and resources. You can use scenarios to analyze and compare various planning options and to find the best planning solution. For example, you can vary demand forecasts or sourcing strategies. One of the scenarios is the actual scenario, which corresponds with the actual planning situation. You can only transfer planned orders and production plans from the actual scenario to the execution level of ERP LN. scheduled distribution receipts The quantity scheduled to be received from the orders created when planned distribution orders are transferred to the execution level, (that is, transfer orders and/or purchase orders. scheduled production receipts The quantity scheduled to be received from (actual) production orders. scheduled purchase receipts The quantity scheduled to be received from (actual) purchase orders and purchase schedules. signal A short standardized message that ERP LN generates to advise the user to change or correct a specific planning parameter, value, or constraint to avoid undesired results or conflicts in planning. signal horizon The number of days for which Enterprise Planning generates signals of a certain type. The signal horizon is expressed as a number of working days from the date you carry out the simulation. Beyond the signal horizon, Enterprise Planning does not generate signals of the particular signal type involved. soft peg A relationship between an item supply and an item requirement that ERP LN stores for informational purposes. If you replan an item, you lose the related soft pegs. Pegged supply The pegged supply can be a purchase order, a planned purchase order, a production order, a planned production order, a warehousing order with transaction type transfer, or a planned distribution order. Pegged requirement The pegged requirement can be, among other things, a sales order line or a required component for a production order. In Enterprise Planning, the term pegging is generally used to denote soft pegs. Related term: hard peg source allocation rule The rule that defines how a required volume is divided over the following sources of supply: Production Purchase Distribution The source allocation rule is either Percentage or Priority. sourcing strategy The subdivision of the planned supply of a plan item over the following sources: Production Purchase Distribution Sourcing strategies are defined within the context of a scenario. You can define sourcing strategies for clusters, item groups, and plan items. special demand An extra item quantity that is expected to be sold in a plan period, on top of the forecast demand, and for a specific reason. For example, a special sales action. You can view and maintain special demand in the Special Demand by Item (cpdsp2100m000) session. Here you can also record a reason for each instance of special demand. The assembly-part demand forecast from Configurator is also stored as special demand. The special demand is part of the demand plan for a plan item or channel. specification A collection of item-related data, for example, the business partner to which the item is allocated or ownership details. ERP LN uses the specification to match supply and demand. A specification can belong to one or more of the following: an anticipated supply of a quantity of an item, such as a purchase order or production order a particular quantity of an item stored in a warehouse a requirement for a particular quantity of an item, for example a sales order supplying relationship A distribution link between a supplying warehouse cluster and a receiving cluster. The clusters involved can be in the same site, or in different sites. Enterprise Planning uses supplying relationships for distribution planning: the supplying relationships represent valid supply paths for particular items or groups of items. You can specify supplying relationships at the level of individual items, but also at more general levels. The supplying relationships also determine the costs of supply, lot size rules, and other parameters. supplying site The site from which a plan item is delivered through the multisite distribution structure. supply plan The total supply that is planned in master planning. The supply plan of an item consists of: Production plan Purchase plan Distribution plan (shown in the item master plan as planned distribution orders) The item master plan also takes into account the supply planned in order planning (planned orders). However, this type of supply is not part of the item's supply plan. In other words, a supply plan usually exists only outside the item's order horizon. supply strategy The methods by which the supply of plan items is divided over multiple suppliers. The supply strategy defines the priority rules and allocation rules that direct the planning engines in the choice of suppliers. There are separate supply strategies for: External suppliers (planned purchase orders) Internal suppliers (planned distribution orders) You can define supply strategies for clusters, item groups, and plan items. supply type In ERP LN, the type of supplier (internal or external) for which a supply strategy is used. ERP LN uses internal suppliers to generate distribution orders, and external suppliers to generate purchase orders. time fence The date until which an item's supply plan and planned orders are frozen. The time fence is expressed as a number of working days or working hours from the date you carry out the simulation. As a rule, Enterprise Planning does not regenerate the supply plan or the planned orders within the time fence. However, you can overrule this behavior when you run a master-plan simulation or order simulation. The time fence is meant to prevent: Disturbance of orders that have already started (at the shop-floor level). Generation of planned orders with start dates in the past (that is, orders that are late). Usually, the lead time of an item's production process is a reasonable value for the time fence. unconfirmed forecast The part of the total forecast for which the customer desires a supply in addition to the confirmed forecast. Possibly, the customer is unsure whether this quantity will be needed. The sum of the confirmed forecast and the unconfirmed forecast is the total forecast. Typically, the total forecast includes not only the demand based on actual sales orders for the customer's end products, but also forecast demand based on estimated future sales of the customer's end products. See also confirmed forecast. VMI requirement type The type and origin of the requirements on which ERP LN can base an item supplier plan or an item customer plan in a vendor-managed-inventory situation. Depending on the requirement type, ERP LN uses different demand data to calculate how much of an the item is planned to be available in each period. The VMI requirement type can have the following values: Calculated Forecast to Supplier Sent Forecast to Supplier Received Forecast from Customer Calculated Confirmed Supply Sent Confirmed Supply Actual and Planned Demand VMI supplier The supplier (buy-from business partner) that handles the inventory management and optionally the supply planning of a particular item for a customer. This term is used in a vendor managed inventory (VMI) setup. A terms and conditions agreement can designate a particular supplier as the VMI supplier for an item. WLC See: workload control workday A day on which work can be performed. Lead times, horizons, and time fences in Enterprise Planning are defined in workdays (except for the forecast horizon). Enterprise Planning converts workdays to working hours, minutes, and seconds on the basis of the basic day capacity. workload The amount of work scheduled for a resource. The term workload is used in the following contexts: In the Workload Control (WLC) module, workload is defined as the total capacity used in a certain plan period. For example: 50 hours of production in week 23. In the Transfer Planned Orders (cppat1210m000) session, workload is the required capacity for the production orders that must still be carried out. For example: resource R has a total workload of 300 hours of production orders that must still be carried out. workload control A constraint-based method for supply planning, aimed at creating a feasible planning solution by leveling the workload on a resource. Workload control is based on the idea that workload levels and production lead times are related. This method is used to control both the workload by resource and the lead time per item. Abbreviation: WLC workload norm The amount of work that must await execution on the shop floor for a resource. If the workload is much lower than the workload norm, there is a risk that the resource becomes idle. If the workload is much higher, the production lead times can become unacceptably long. Note that the workload norm is expressed in hours. workload tolerance The percentage by which the resource's workload is allowed to deviate from the workload norm. |