• 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

  • 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

  • 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.