A/P - accounts payable, money you should pay to your
suppliers based on receiving invoices for piece parts, service provided etc.
A/R - accounts recievable, money you should get from
you customers for invoices you've issued
B2B - business to business
this is way is said that we are talking about relationship between two companies
B2C - business to customers
this is way is said that we are talking about relationship between copmany and final
customer
BOM - bill of material
th list of all components needed to produce 1 piece of the particular product or
semiassembly
C/O - customers orders
DBR - drum-buffer-rope
Material replenishment method challenging low WIP and smooth balanced flow. One the the
core methods of TOC
M/O - manufacturing order
MPS is converted into manufacturing orders when duedate is withing following next days or
weeks, by releasing M/O material allocations appear
MPS - main production schedule
rough plan for future (usually months ahead)
MRP - Material Requirements Planning, MRP is one of
the basic methods to calculate which material need to be purchased in order to cover
production plan
MRP II - Material Resource Planning, newer version of MRP included in
almost all ERP packages
MRP processor needs at least following data::
- MPS - Main Production Schedule
- M/O Manufacturing Orders
- BOM Bills Of Material
- material on hand
- P/O Purchasing Orders
- item master with leadtimes, vendor information etc.
NVA - non-value added
process adding no value to customer, some is just waste but some NVA process is required
e.g. by law, read more here
P/O - purchasing orders
the order you send to supplier having info like item no., quantity ordered, contract
price, due date, shipping information
TOC - theory of constraints developed by Eli
Goldratt
VA - Value Added
process adding value to customer, read more here
WIP - work in process.
material, subassembly or finish goods located in the manufacturing area
from general point of view it is anything what is in between input and output of process -
e.g. software is WIP when we make programming, when we finished, it could be called finish
goods
WIP is considered as an inevitable evil and we try to minimize it using any of methods,
e.g. DBR or kanban.
