# |
A |
B |
C
| D
| E
|
F |
G |
H |
I |
J |
K |
L |
M
| N
|
O |
P |
Q |
R |
S |
T |
U |
V |
W |
X |
Y |
Z
ERP/supply chain education
need to define a term that's not here? ask us
M
machine center- A
work center composed of a set of machines
that process a common group of products and is considered as a single
resource for routing definition and capacity planning.
machine
hours- The actual time recorded by a machine when used for
production, and used in efficiency and utilization calculations.
machine
load report- A report of demand for a given machine or machine
center by production orders released to the floor, that normally
compares load and capacity in terms of hours or units, and identifies
the orders creating the demand.
machine
utilization- The measure of machine hours recorded against
production vs. the hours available or scheduled for a given
period.
machine
vision- Systems that use video cameras, robots or other
devices, and computers to visually analyze an operation or activity.
Typical uses include automated inspection, optical character
recognition and other non-contact applications.
macro
plan- A high-level project or other plan that identifies only
major milestones and dates and does not include detailed tasks and
activities.
maintenance
costs- 1)The costs incurred to support and ensure continued
availability of an asset, such as scheduled and unscheduled repairs
and support staff. 2) In software agreements the annual fees paid to
the vendor that allows ongoing use of the system.
maintenance,
repair, operating (MRO) items- Items such as maintenance supplies,
equipment repair parts, etc. that support the operating process and
are not issued to production orders or included in product standard
cost.
maintenance
scheduling- The process used to track actual maintenance history,
monitor equipment status and schedule expected maintenance prior to
the occurrence of a problem. It should be integrated with the systems
used to plan future resource availability and indicate projected
downtime.
make/buy
analysis-
The process that analyzes tradeoffs in costs and benefits between
internal production of a given item vs. purchasing it from a vendor.
It includes identification of true product costs, the impact of fixed
overhead, facility capacity considerations, vendor capability and
stability and other
factors.
make to order (MTO)- A
manufacturing method in which commonly-used raw materials and
components may be stocked based on previous demand history, but
further processing into higher-level items is not done until receipt
of a customer order. Variability in customer demand will not allow
stocking upper-level assemblies and major subsystems or modules prior
to receipt of an order, as done in
assemble to order (ATO)
environments.
make to stock (MTS)- A
manufacturing method in which finished goods are produced and
stocked prior to receipt of a customer order. It uses a forecast based
on past demand history to initiate production of end items when
inventory has fallen below desired levels, instead of waiting until a
final quantity and configuration is described on a customer
order.
Malcolm Baldridge
National Quality Award- Annual awards by the National Institute of
Standards and Technology that recognize quality system achievements in
manufacturing and services organizations.
man-hour- The
period of time measured by a single person working for one hour.
Standard man-hours specify the amount of time normally expected to be
used in a process or operation, based on estimation or past history.
manual
reschedule- To change the expected date of an open production,
purchase or interplant order by a planner or other person, based on a
suggestion from
MRP or other information. It requires a review process
that evaluates the effect of moving the initial date, and increases
reaction time while allowing for more control than a process in which
MRP or other system suggestions for reschedules are automatically
performed.
manufacturability- The
characteristics considered in the design cycle that focus on process
capabilities, machine or facility flexibility, and the overall ability
to consistently produce at the required quality level instead of
product elegance.
manufacturing
calendar- syn:
shop calendar.
manufacturing
database- syn:
production
database.
manufacturing
environment- The overall set of factors that influence planning,
scheduling and strategic production decisions which include type and
timing of demand, product and process complexity, physical product
form, logistics and vendor capabilities, and internal functional
capabilities. Describing the overall environment often includes the
response to demand (to stock or to order), physical facility layout
(job shop, production line, cell, batch processing or other) and
methods and requirements used in planning and scheduling (discrete,
repetitive or process). Many companies have characteristics of more
than one environment.
manufacturing
execution system (MES)- A production scheduling and tracking
system used to analyze and report resource availability and status,
schedule and update orders, collect detailed execution data such as
material usage, labor usage, process parameters, order and equipment
status, and other critical information. It accesses bill of material,
routing and other data from the base
ERP system and is typically the
system used for real-time shop floor reporting and monitoring that
feeds activity data back to the base system.
manufacturing
instructions- The detailed process parameters and operating data
required for a specific production
operation, which may include both
basic production rate data and detailed engineering specifications and
notes.
manufacturing lead
time- The total length of time used to process raw materials and
components through all upper levels in the bill of material into an
end item. It specifies the total of all individual elements of lead
time such as order preparation, queue, setup, run, inspection, etc.
used and indicates a projected availability date for an end item if
all lowest level raw material is on-hand.
manufacturing
order- Syn:
production order.
manufacturing resource
planning (MRPII)- The extension of
closed-loop MRP
that includes
and integrates financial and simulation systems. It includes all
organizational functions related to long-term strategic and business
planning, demand planning, materials planning, resource
planning, and production and vendor scheduling and execution. It
assumes the use of a base, integrated system and the sharing of a
common database and operating parameters by all functions and
departments.
manufacturing system- In
an
ERP system, the functions and modules used to identify and plan
demand and materials, analyze resource availability and requirements,
and schedule, release and report production.
marginal cost- syn:
incremental cost.
margin exception
reporting- Features in order entry systems that compare line item
prices to standard costs and flag instances that violate a predefined
margin percentage.
margin for error- An
allowance built into a system or process that provides for continued
operation or a successful outcome even with less-than-perfect
results.
market segment- The
geographic, demographic or other customer classification targeted by
an organization for the purchase and use of its products and
services.
market share- The
percent of a given market sold to or owned by a company out of the
whole as a result of its success in marketing effectiveness, product
characteristics, pricing, cost, delivery time, quality and many other
factors. Market share is affected by the type of industry and number
of competitors, and can indicate the stage of a product's life cycle
(introduction, growth, maturity, decline).
marketing
automation- A subset of
customer relationship management
(CRM)
functions that focuses on the definition, scheduling and tracking of
marketing campaigns. It includes the identification of target markets,
advertising delivery, budget definition, results analysis and other
related activities.
marketing
campaign- A specific, defined series of activities used in
marketing a new or changed product or service, or in using new
marketing channels and methods. Like a promotion, the future estimated
effects of a new marketing campaign must be included in demand and
resource planning.
mass production- Large
volume production of the same basic product or product line based on
the type and timing of demand and facility design and capabilities,
which can be for either finished goods or lower level items.
master black belt- In
the
six sigma
quality improvement
methodology, a person who teaches and mentors
black
belt leaders.
master file- A
database file, often created manually as needed, that contains static
records used to identify items, customers, vendors, bills of material,
work centers, etc. as opposed to files used to track the dynamic
status of orders and inventory balances.
master production
schedule (MPS)- The schedule of manufactured items usually created
to fill 'outside' demand from forecasts, customer orders and
interplant orders that specifies the exact item numbers, dates and
quantities for production but is not in itself a production order to
be released to the floor. It considers the high-level
production plan
and rough cut capacity availability, and aligns with management
targets for linearity and permissible level of changes. Once accepted,
the MPS specifies the date and quantity requirements used by MRP
to
explode demand through the bill of materials. While most often for end
items, variations of MPS allow planning critical lower levels such as
major subassemblies based on a forecast that is then consumed by
customer orders for finished goods that require those subassemblies.
The MPS is the main driver for the rest of the planning and scheduling
system, and the level of success in attaining a realistic MPS often
indicates how well the other detailed parts of the system
function.
master scheduling-
The process of reviewing a proposed MPS, comparing to stated
higher-level production plan, resource availability and management
parameters, and firming it and releasing to the rest of the system.
The frequency of regenerating and reviewing the MPS, typically weekly,
depends on the industry, process flexibility, forecast accuracy and
many other factors.
material- 1) The
raw materials and purchased components used in the production of other
items 2) The classification of any lower level item, whether purchased
or manufactured. A subassembly that has material, labor and overhead
content may be considered strictly as material in the context of being
used in an upper level item.
material-intensive- A
product or product line that has a higher content of material and a
corresponding lower level of labor when compared to other products. A
material-intensive product often contains high-value components that
require minimal labor or further processing to create the finished
item.
material planner- A
person whose focus is the review, release and followup of purchase or
production orders and inventory status vs. plan, instead of detailed
scheduling of production facilities.
material requirements
planning (MRP)- The process that uses the
MPS as demand, explodes
the bill of material for specified MPS items, nets those requirements
against on-hand inventory and existing open orders, and recommends
placing new production and purchase orders and changes to existing
orders based on parameters that consider safety stock levels, lot
sizes and lead times. It is based on the idea of dependent demand
(demand for an item is due to its usage in other items) and starts at
the highest level in the bill of material, stopping at the first level
where the quantity of inventory plus incoming receipts is adequate to
meet demand and it is not necessary to send a requirement to the next
lower level. While sometimes considered complex due to many levels in
the bill of material or a large number of items, MRP in general is
just a calculator and depends completely on the accuracy of the MPS,
bills of material and order date and quantity information to be
useful.
material review board
(MRB)- A cross-functional group that reviews production or
purchased items on hold due to usability concerns and determines their
disposition, which may include rework, scrap, or returning to the
vendor.
material safety data
sheets (MSDS)- A document used for the manufacture and import of
hazardous material that specifies its substances and properties and
associated health and safety hazards. It details control and safe
handling methods, expiration dates or other timing
constraints.
materials handling
systems- Equipment that moves items between required locations on
either a programmed (automatic) or manually-initiated basis. They
sometimes perform weighing and other measurement functions, are
designed specifically for the products to be handled, and include
conveyors, pick and placement systems, and other dedicated
equipment.
materials management- The
organizational functions responsible for the planning, sourcing,
stocking and logistics activities of materials used in the internal
and external fulfillment of demand.
material usage
variance- The variance generated by using a lesser or greater
actual quantity of the standard material than specified in producing a
given item (which is different than a substitution variance created by
using items different than the ones on the standard bill of
material ).
matrix bill of
material- A composite bill of material that displays and
summarizes the usage for components in a given set of parent items in
the form of a matrix.
maximum capacity- The
most capacity that can be obtained from a given resource, as opposed
to its planned or demonstrated capacity (as in a machine normally
operated 10 hours a day with a maximum capacity of 24 hours/day).
Sometimes used in what-if planning for stress or volume testing.
maximum on-order- A
specified limit for the total dollar sum of open orders for a given
customer or vendor that is checked by the system at entry time, and
may prevent acceptance of the order.
mean- The average
of a set of numeric values, as calculated by summing the individual
values and dividing by the number of values in the set.
mean absolute
deviation (MAD)- The sum of the absolute value of error or
deviation from an expected value, divided by the number of data
points. Often used as a base measure of forecast accuracy.
mean time between
failures (MTBF)- A quality and maintenance measure of the average
time between failures for a resource or product, that cause them to be
unusable.
median- The middle
value in a group of ranked values that has an equal number of values
both above and below it. It indicates the centerline of a
distribution, while the mean, or average, can be skewed by a single
high or low value.
message filter- A
function in planning systems that suppresses the generation of an
exception message based on a date, quantity, dollar or other parameter
in order to reduce the overall message volume and focus on those with
higher severity levels. For example, the filter might indicate that
unless a production order needs to be rescheduled in by at least three
days, the message is not generated.
metering- The
process of measuring the usage of volume of a system, such as software
functions that monitor and sometimes control the number of concurrent
users as specified in the licensing agreement.
metrics- A
standard or basis of measurement, such as cost, size, volume,
etc.
milestone- A key
event that defines the end of a phase or reaching a target or goal.
Project management systems normally define milestones as activities
with a zero duration.
military time- The
use of a 24-hour clock instead of AM and PM when reporting actual
labor or machine time or specifying deliveries.
milk run- The
combination of shipments from multiple vendors in close geographic
proximity into one shipment received by the customer, normally done
for a defined route on a recurring basis.
minimum inventory
level- The lowest desired amount of inventory, used by planning
systems to generate replenishments that will keep projected on-hand at
that level or higher.
minimum order
quantity- The order quantity used as the minimum for a planned
order, even if the lot size rule calculated a smaller
amount.
min-max ordering- A
replenishment and inventory management system that sets a minimum
inventory level, used to trigger a reorder when the available plus
incoming receipt total is less than the min. The amount of the order
is the difference between the calculated (less than min) inventory and
a predefined max. Min-max systems are typically not time-phased.
miscellaneous issue-
An issue from stock for a non-production use, such as marketing
samples, engineering test, etc. that is usually charged to that
department and not included in demand history calculations.
mitigation- The
reduction of damage from risk due to lessening the chance of
occurrence, or by minimizing its effect when it does occur.
mixed-mode manufacturing- An
environment that uses a combination of
discrete,
repetitive or
process
manufacturing instead of only one type. A company may produce major
lower level subassemblies in high volumes using repetitive,
schedule-based techniques while using a discrete production
order-based method to conduct final assembly operations for specific
customer orders.
mixed-model
production- A scheduling technique that uses the goal of making
every product every day and only when required by demand, as opposed
to large runs of individual items that will stay in stock for a period
of time. It normally requires operating flexibility, short lead times
and small lot sizes.
model- A system
that describes or predicts an associated process based on the
definition of variables, rules and equations. A properly-defined model
enables analyzing the possible effects of changes in the underlying
process based on changes in the model.
modification- 1) A
one-time change to a standard bill of material or routing for a
specific production order 2) The addition of custom programming code
to a standard software system to create or enhance a specific
function.
modular bill of
material- A bill of material used for products configured from
many possible combinations of modules, or options. It normally
contains a group of common components always used that do not have to
be chosen, feature categories (such as monitor size) that represent a
part of the product to be configured, and options within the feature
(such as 15", 17", 19") that are the actual
subassemblies or components to be used. Often used in
ATO
environments.
Monte Carlo simulation-
A method that estimates possible outcomes from a set of random
variables by simulating a process a large number of times and
observing the outcomes.
move time- The
portion of total lead time an item is being moved from one department
or operation to another.
moving
average- The
average of the last 'x' number of numerical values out of a set that
contains a larger number of historical values. A six-month simple
moving average forecast is the average of the demand from the previous
six periods; with each new period the last period is added and the
oldest period deleted before recalculating the new average.
muda- The Japanese
term for
waste.
multiple company- Systems
and software used for multiple, separate organizations or financial
entities within a larger organization. While using the same base
system, each company may set different system parameters.
multiple currency- Financial
systems that allow orders and transactions to use more than one
currency, and use exchange rate tables to perform conversions and
revaluations into a base currency when specified.
multilevel backflush- A
system that backflushes multiple levels of components based on the
production of a parent item, instead of just the immediate lower level
(a single level backflush). When the parent is produced, its
components are backflushed and for component that is a manufactured
item, it is automatically produced by the system which then proceeds
to backflush the next level components of that item. It enables the
entry of fewer transactions but may create issues with lead time and
lot tracking.
multilevel bill of
material- A bill of material that contains multiple successive
levels, with the top level typically coded as level 0, its immediate
components as level 1, and so on. It can be used to track all
requirements and costs involved in producing a parent item down to the
lowest-level purchased parts.
multilevel master
production schedule- A version of MPS that allows the master
scheduling (and thus forecasts and customer orders) of any level in
the bill of material, instead of just the top-level items. Lower level
items may be master scheduled if they are critical subassemblies, or
if the completion of that item constitutes the bulk of the lead time
and cost and requires only minor labor or material additions to turn
into a finished product (adding language labels or instructions to an
otherwise-finished product).
multiple
regression- An equation or analysis where two or more independent
(predictor) variables affect the dependent variable.
multiple units of
measure- The use of more than one unit of measure for a given item
for orders and transactions. A given item may be internally stocked in
units but entered on customer orders in cases, packs or some other
measure. Conversion tables translate all requirements into a base
measure for planning, scheduling and inventory valuation.
multipoint-to-multipoint-
A communications or logistics network in which each element can
directly link to all others, and is not restricted to a specific path
or set of links.
multi-user- A
system or program designed to accommodate simultaneous use by multiple
users, and protects against duplication, override or corruption of
data when the same records or resources are accessed.
N
negative inventory- An
error condition resulting from a transaction that drives the perpetual
inventory below zero. Systems that allow negative inventory usually
provide exception reports for cycle counting and analysis, and specify
how the negative is handled in modules such as
MPS
and
MRP.
Nelson tests- A
set of quality tests measuring trend, lack of variation and
observation of consecutive results of the same values.
nervous- A
planning system such as MRP that generates high message volume and
continual changes to recommended order dates and quantities due to an
excessive level of MPS, engineering or database changes.
nested- A process
or activity self-contained within a larger entity, that retains its
identity and characteristics for reporting and analysis.
net assets- Total
assets less total liabilities.
net cash flow- Cash
inflow (sales revenue) less cash outflow (payments).
net change- An
MRP or other planning system generation that only recalculates
requirements for items that have changed since the last generation,
due to the addition or changes in order quantities and dates,
inventory levels, bill of material or routings, lead times or other
parameters. A flag is usually set by programs that initiate changes
for those items, which is used by MRP as the basis to regenerate them.
It typically reduces generation time and is most useful for companies
that have many part numbers, a small percentage of which are active in a given
week.
net requirements- The
requirements for an item based on its gross requirements (from
forecasts, customer orders or upper level demand), minus stock already
on-hand and scheduled receipts. If the total is below the specified
safety stock, a planned order is generated based on the lot size. The
generation of a new planned order for a given net requirement is
normally done only after calculating the effect of
rescheduling all incoming receipts to the dates required.
net sales- Gross
sales less allowances for returns and discounts.
netting- Deducting
requirements (orders, allocations, planned run hours, etc.) from an
available resource (inventory, work center capacity, etc.).
network diagram- The
depiction of a system in terms of individual points (which may
represent a location, resource, status or task) and the links between
them used to pass goods, services, data or other communications. It helps model the relationships of the links and the timing and
direction of the flows between them.
node- 1) An
individual point within a network that represents a separate entity
and is linked to other nodes within the overall system. In a
supply
chain, individual companies and locations can be considered nodes. 2)
A decision point in a decision tree.
noise- The
difference between the predicted and observed values of a model due to
random error including missing and incomplete data.
nominal data- Data
described by a value that assigns it to a category, but does not
provide for a ranking or ordering of the values.
nominal range- The
distance that a system that transmits signals, such as a network or
RFID device, can reliably complete transmission.
nonconformance- The
status of a process or product that does not meet specification and
requires attention or corrective action.
nondestructive
testing- A quality conformance test that does not eliminate the
future usage of the product or service being tested.
non-inventoried item- Normally,
a supply item purchased and received but whose on-hand quantity is not
calculated.
nonlinear- A
product or process that exhibits an uneven distribution, or wide
variations in terms of quantity and timing.
nonrecurring- An
event or cost not considered to be part of normal, ongoing business
operations that is separated or filtered out when forecasting future
events or reporting financial information.
non-significant part
number- A part number composed of characters that do not imply
anything about the characteristics of the part or the family it
belongs to. Separate code and description fields are used to convey
associated information instead of building it into the part number
itself.
non-stationary demand-
A pattern in which demand is not constant for each time frame but
varies due to seasonality, trend or other factors.
non value-added- Activities
and costs that can be eliminated without reducing performance,
function or value as perceived by the customer.
normal
distribution- The frequency of a data distribution simulating a
bell-shaped curve that is symmetrical around the mean and exhibits an
equal chance of a data point being above or below the mean. (syn:
Gaussian distribution).
normalized
data- Data
that has been adjusted or reduced to eliminate redundancies and
anomalies.
not earlier than- Specification
that a project task, shipment or delivery may not occur before a given
date. Early product shipments are normally considered as a negative
in evaluating delivery performance due to customer storage space or
payment considerations.
not later than- Specification
that a project task, shipment or delivery may not occur after a given
date, due to its effect on a later task or the inability to use a late
shipment in production or for a specific sales promotion.
np chart- A
measurement of the number of nonconforming values in a constant or
fixed sample size.
numerical control
(NC)- A machine tool that uses machine-readable sets of numeric
codes that control the activities used in its operation.
TopΔ
Glossary
copyrightｩ2006 Bridgefield Group Inc. All rights reserved.
Content may not be copied, reproduced, framed or otherwise distributed
without the express permission of the Bridgefield Group Inc.
