A-D   E-M   N-Q   R-Z


– A –

Actuals - Materials issued, labor worked, and subcontracts completed, together with their costs.

Alternate Factor - A factor that allows the adjustment of materials unit of measure from stocking to engineering when described in the materials requirements.

Assembly - The joining together of items and/or parts to make a product. That product might also be a part or item for another product assembly.

Available - The quantity of materials available for use in production or sales. Available is calculated by subtracting Committed from On Hand.

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– B –

Backflush - The relieving of components from inventory.

Backwards Scheduling - A scheduling method that determines, by calculating backwards from the required completion date and the processing and lead times, what the start date of a production must be in order to meet the final due date.

Bill of Materials - A listing of materials, operations, and subcontracts used to describe the manufacture of an item.

Bill of Materials Master File - The main work file for the Bill of Materials module.

Bottleneck - An operation that is scheduled for more labor hours than that resource has the capacity to complete. A resource that has demand that exceeds capacity is considered to be a bottleneck.

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– C –

Capacity - The amount of time available for work in a given period of time. This is generally expressed as hours per day or per week although it can be units, pounds or another measure.

Close - The process that finishes a work order from an accounting standpoint. Once a work order is closed, no other transactions can be posted to it.

Closed Work Order - A completed work order. A closed work order is historical and no other transactions can be made against it. See also Planned, Open, and Quoted Work Orders.

Commitment - Material that has been promised to a transaction. Materials can be committed to a job or to a sales order. Releasing a work order will commit materials to it.

Committed On Hand - Material that has been promised to a transaction and is available on the shelf.

Complete - A finished job. By contrast, work order can be partially closed. That is, a portion of the production is closed, but some still remains to be processed.

Component - A single part or item that is a portion of an assembly for the bills of material.

Critical Ratio - The actual time remaining to complete an operation divided by the scheduled time remaining. 1.0 indicates a job is on schedule. Greater than 1.0 means ahead of schedule. Jobs with a Critical Ratio that is less than 1.0 are behind schedule. Critical Ratio is used to prioritize the workload.

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– D –

Demand - A need for a product or component--generally from sales or manufacturing requirements.

Direct Cost - The cost of labor to produce a particular product or operation. Direct cost includes only the actual labor cost without any additions for overhead.

Direct Rate - The dollars per hour for labor that a particular operation costs.

Dispatch - A document that  lists all jobs to be worked on for the day, week or some period of time. AddonSoftware provides a dispatch inquiry as well as a report.

Divisor - A number in the material requirements section that allows unit of measure conversions from the stocking unit of measure to an engineering unit of measure. For instance, a divisor of 12 will allow a materials requirement to be described in inches, even though the material is stocked in feet.

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– E –

Estimated Yield - An estimate of the percentage of finished goods that are completed for a particular work order by the end of the manufacturing process. Estimated yields are calculated based on past performance and are used to increase the demand for components or raw materials to provide sufficient availability.

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– F –

Finished Good - The final finished product for a sales order.

Finite Scheduling - A scheduling method that recognizes that a limited number of resources exist and that prioritizes the schedule in some form to resolve conflicts.

Forward Scheduling - A scheduling method that determines the expected finish date of a production run, by calculating forwards from the start date, considering the processing and lead times.

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– H –

Header - The information that is unique to a work order as a whole. Header information includes dates, production quantities, customer information, and other data specific to the work order.

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– I –

Indented Bill of Materials - A multi-level bill of materials showing all levels of assembly, together with the components that make up each level indented to the right. Any subassembly components are then indented further to the right.

Infinite Scheduling - A scheduling method that schedules based on available hours without trying to resolve any scheduling conflicts. It assumes there are an infinite number of resources available and leaves conflict resolution and priorities up to the user.

Inventory - The components, items, and raw material purchased or produced for resale or used to support production.

Inventory Master File - The main work file for the Inventory Control module.

Issue - To relieve on-hand inventories and charge those materials to a job.

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– L –

Load Balance - How evenly the workload is distributed between work centers. The Load Balance Inquiry compares available hours to scheduled hours.

Lot Size - The quantity normally manufactured for an item.

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– M –

Manual Scheduling - A scheduling method that allows you to define the schedule by manipulating factors not considered by the module.

Materials Requirements Planning (MRP) - a way of calculating material requirements for the timely completion of a product.

Move Time - The amount of time allocated by the scheduling system after an operation but before the products are ready to move to the next operation. It may represent cooling time, drying time, or any time required before an item can be physically moved.

MRP - Materials Requirements Planning.

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– N –

Net Hours - The actual hours applied to an operation for each finished item.

Non-Stock - A special type of work order that describes the manufacture of an item that is not normally stocked as a part number. Non-stocks can describe a custom manufacturing job or any job where a standard bill of material is not followed. Or, items that are needed from subcontracts or purchase requisitions that are part of the manufacturing of a product.

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– O –

Open Work Order - The status of a work order that allows transactions. An open work order is one where manufacturing is still in process. See also Closed, Planned, and Quoted Work Orders.

Operation - A process in the production of an item, component, or finished good.

Operation Code - A code that you assign to the operation that describes the type of work to be completed. An operation code can describe the actual operation, the machine it is processed on, or the work center. In the simplest of systems, one operation code called Labor will be defined.

Overhead - Overhead reflects charges that are not attributable to a specific job. Overhead will include charges such as rent, utilities, and depreciation and those costs are allocated to jobs by an hourly rate.

Overhead Factor - The percentage of the hourly rate that constitutes overhead expenses. It is used to allocate overhead costs across goods manufactured. This factor is multiplied by the Direct Rate to calculate an overhead rate which is used in calculating the overhead cost.

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– P –

Phantom - A bill of materials coding technique that provides for utilizing similar groups of components in multiple bills. These groups of components are defined once, but used many times. A phantom is like a subassembly that is never stocked.

Pick List - A list of materials required for a job that is used to guide someone in the warehouse. In the context of shop floor, the Pick List allows for gathering the materials needed for each operation.

Planned Work Order - A status of work order that says we plan to build this item. A planned work order can be included in bottleneck analysis and load balancing. A planned work order will not reserve or commit materials. Transactions may not be posted to a planned work order with the exception of a purchase requisition. See also Open, Quoted, and Closed Work Orders.

Post-Production - The technique of backflushing where materials are relieved after production is complete. The manufactured item is received when this methodology is used.

Pre-Production - The technique of backflushing where materials are relieved prior to production. The manufactured item is not received when this methodology is used.

Pulled Complete - A reference to whether all items on a pick list were found and removed from the stocking inventory at the quantities specified.

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– Q –

Queue Time - A record of the average amount of time material will wait in line for the next operation.

Quoted Work Order - A status of work order that allows to user to design a job and calculate costs, but not actually open the work order. A quoted work order is generally created for a customer. It remains in the quoted state until it is released. A quoted work order may not have any transactions posted to it. See also Open, Planned, and Closed Work Orders.

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– R –

Raw Material - The purchased materials that are consumed in the manufacture of an item.

Recurring Work Order - A type of work order that automatically closes and expenses itself each month by using the Close Recurring Work Orders processing tasks. Those tasks close and reopen this type of work order for additional  transaction processing. Recurring work orders are convenient for tracking indirect labor expense.

Release - A process that converts a planned or quoted work order to the Open status. The process “releases” the job to the shop floor. It approves the work order for transactions and commits the materials to manufacturing process.

Required Quantity - The quantity of material in engineering unit of measure that each finished good requires in materials requirements. Alternate factor and divisor are used to adjust to the engineering unit of measure.

Run Time - The actual processing time for an operation after setup is complete. Run time is expressed in hours per piece or pieces per hour depending on the item being produced.

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– S –

Scheduling Method - The type of method that you use to schedule your production. See also Backwards Scheduling, Forward Scheduling, and Manual Scheduling.

Scrap Factor - A percentage used to increase the net quantity needed to compensate for anticipated scrap.

Setup Time - The amount of time necessary to setup a machine or an operation for processing. Setup time occurs only once for an entire operation and may include time to change a specific machine to prepare it for the next job.

Standard Cost - The sum of the materials, operations, and subcontracts, together with their costs, that make up the standard cost for an item.

Standards - The sum of the materials, operations, and subcontracts, together with their costs, that make up the definition of the work order. Standards can be used to reference standard costs or standards of performance.

Sub-Menu - A menu of tasks that are specifically related to a single masterfile entry.

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– T –

Transaction - The value added activity to the work order. Transactions include materials issues, labor and subcontract receipts.

Traveler - A document that travels with a job throughout the shop floor. Typically, a the traveler reflects all processes and comments about how to manufacture the job, materials, and subcontracts.

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– U –

Unit of Measure - The unit of which an item is stocked or consumed. Examples are each, case, dozen, foot, etc.

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– V –

Variance - A comparison of actual cost (the total of all transactions) to the standards. Variances are negative when a job is exceeding the standards and are positive when it actually requires less than the standard.

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– W –

Work Center - A group of like machines or processes that have similar capabilities. Work centers are scheduled together.

Work in Process - The value of the inventory on the shop floor. Work in Process is also used to generally describe the inventory that has some value added to it in the form of labor, but that is not complete. AddonSoftware only considers items to be Work in Process while a work order is open and not complete.

Work Order - A document or group of documents that describes a job. A work order can also be a computer file that retains all job information.

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