Glossary for Manufacturingactivity manager A person responsible for planning or carrying out a project
activity. actual completion date The date on which the items of a production order are
(partially) completed or rejected for each operation in the Shop Floor Control (SFC) module. The user can overwrite the date. actual input The total input quantity of a work center/machine for
operations that are Ready to Start during the target period. actual output The total output quantity that is reported complete, for
operations at a work center/machine during the target period. actual queue The actual input minus the actual output of a work
center/machine. Note that the queue includes active operations as well as
operations waiting to be carried out. added costs The increase in value of an item when the item passes through a
stage in the production process. Added costs are posted to detailed cost
components whereas non-added costs are posted to aggregated cost components.
aggregate To total figures or amalgamate amounts; to merge items in a
higher plan level. Opposite of explode, disaggregate. aggregated cost component A cost component that contains aggregated costs. Each item has cost components which have been added together for the following costs:
In inventory, value of goods is calculated and posted by the three aggregated cost components. However, operation costs, production variances, and production surcharges are calculated and posted by detailed cost component. Antonym: detailed cost component aggregated cost component aggregation relationships 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 ![[...]](../images/tr_graph_tiglossary_02.gif) allocation An item quantity that is assigned to a specific order but that
is not yet released from the warehouse to production. alternative material A substitute for a BOM material that the system can select in
case the standard material is out of stock. An alternative material is supposed to meet the same specifications, but only in the context of a BOM for a specific main item. alternative tool type A substitute for a tool type that is not available for use, for
example, when a tool is being refurbished. anonymous item An item with an Anonymous order policy. This means that the item is
produced or purchased before a customer order is received. If an anonymous item
is a manufactured item, it is produced in a make-to-stock production
environment. A generic item is typical for a to-order environment. The order policy can be To Order but also Anonymous. In case a generic item is anonymous, a product variant is configured without using a PCS project. answer The response in a question-and-answer type of user/system
interaction (in the Product Classification (GRT) module). The response can be of three types:
answer group A set of predefined answers from which an user can select an
value in the classification process. antedating To enter a date in the past when recording the issue of
materials or deliveries of end products into inventory. This is useful if the user is updating the system some time after the actual manufacturing process took place. aspect An aspect is a specification of a feature. assembly assignment The set of resources assigned to an assembly line for a
particular period of the day. The resources are divided over the line stations
to create a balanced line. Assignments are defined for an assembly line. For each assignment, you specify the cycle time and its activity ranges, which are the period and time ranges for which the assignment is effective. The process characteristics that you define for an assignment include:
These process characteristics are linked to other assignments that are, in turn, linked to the assembly assignment. When an assignment is in effect, the assignments that are linked to it are also in effect. assignment types Two types of assignments exist, both of which exist at the same time. The average assignment is used for more general purposes, whereas the nonaverage assignment has a very specific period and time range.
Note An average cycle time is not a mathematical average, but is a value that you consider to be a suitable average for the nonaverage cycle times over the course of a full day. assembly item An item with default supply source Assembly.
The production of assembly items is controlled by an assembly order. Assembly
orders are executed on an assembly line. Note An assembly item can have item type Generic, Manufactured, or Engineering Module. assembly line A set of consecutive line stations in which FAS (Final Assembly
Schedule) items are manufactured. The items are manufactured by passing the
items from line station to line station and by carrying out operations at each
line station. An assembly line is subdivided into a number of line segments
separated by buffers. An assembly line can be either a main line or a supplying
line. assembly-material issue note An order document used to report the estimated, allocated, and
issued quantities of required materials for the production of FAS items,
arranged by line segment. assembly part A component used on an assembly line. An assembly part forms the link between Configurator and Enterprise Planning. Configurator generates the requirements for assembly parts and Enterprise Planning plans the production or purchase of the item. assembly routing sheet An order document that lists the assembly operations for the
production of FAS items, arranged by line segment. available capacity The total capacity available, for either a day or a week,
usually based on the work center calendar. average setup time The time required for setting up or changing over a machine
before you start running the machine. Setup time can be long, for example, if
you change over from using black paint to using white paint. Setup time can be
short, for example, if you change over from using white paint to using yellow
paint. The setup time must indicate an average of all possible setup times. backflushing The automatic issue of materials from inventory, or accounting
for the hours spent manufacturing an item, based on theoretical usage and the
quantity of the item reported as complete. backlog All the customer's orders that are received but not yet
shipped. Sometimes they are referred to as open orders on the order board. In
assembly line production, orders which are behind schedule. base unit If quantities expressed in alternative units are used in
calculations or formulas, these quantities are first converted to the base
unit. For each company, base units must be defined for weight, length, surface area, volume, and time. basic capacity The normal daily number of operation hours of the resource
units of a work center (resource). A resource unit can be a machine or an
employee. basic capacity See: normal capacity BCM bill of critical capacities Bills of critical capacities (BCC) indicate the work centers
that are regarded as critical in the Master Planning processes. Critical
capacities are usually the bottlenecks in a routing. Enterprise Planning uses the bill of critical capacities to generate the rough capacity requirements for critical capacities. bill of critical materials A bill of critical materials (BCM) indicates the components
which are regarded as critical during the production process of a plan item. A bill of critical materials is a kind of summary of the BOM, which contains only the more important components. Typical examples of critical materials are:
The Enterprise Planning package uses the bill of critical materials to generate the critical material requirements for critical materials. Synonym: BCM bill of material (BOM) A list of all parts, raw materials, and subassemblies that go
into a manufactured item and show the quantity of each of the parts required to
make the item. The BOM shows the single-level product structure of a
manufactured item. blocking reason The reason an operation is temporarily not allowed to proceed. Reasons for blocking are:
BOM level When a product is manufactured, components are assembled into
subassemblies, and those subassemblies are in turn assembled into the final
product. The components that go together at each stage are described in a bill
of material. Each stage is one level in the bill of material. The listing of the wheel components is one level in the bill of material. The listing of the subassemblies of the bicycle is the highest level, and is frequently referred to as level zero. Example A bicycle has one frame and two wheels. The frame is made of three tubes. The wheels are each made of one rim, one hub, and 35 spokes. BOM quantity The number of manufactured items to which a bill of materials
(BOM) applies. The BOM quantity enables you to specify very small item
quantities as BOM components. Example You need very small amounts of certain colors to mix one liter of a specific paint, Cotton White. Therefore, a BOM quantity of 1000 liter is defined. The component quantities for the paint can then be as follows:
Synonym: BOM unit BOM sequence number The BOM sequence number allows you to define more than one
component item for each position. These interchangeable components can have
different dates when they are valid. LN also uses sequence numbers when you replace items in BOMs. Example Say, you make bicycles and use frames that you buy from supplier A until August. However, after August you will use identical frames that you buy from supplier B. Do not use a new BOM position number for the second frame. Instead, use a new sequence number. BOM unit See: BOM quantity bottleneck work center A work center that determines or limits the production rate of
an RPT item when scheduling orders. The work center calendar determines the
maximum number of hours per day for planning orders of repetitive items. bucket A quantity of time used for planning and backflushing. budget A cost estimate in the preproduction stage of projects.
Includes an estimate of future costs and revenues related to expected
activities. A budget is linked to a calculation group. Budgets within the same calculation group can therefore be used for simulation purposes. buffer An assembly line workstation where no operations are carried
out, and where orders are waiting to enter the following work station. You can use buffers to change the sequence of products from one line segment to another. Buffers in LN are random access type. buffer (FIFO) The orders that came in first go out first. As a result this
buffer is just a 'pipeline' which can have a certain capacity. No planned
sequence change can take place so no line rules can be linked to FIFO buffers. buffer (random access) Buffers with random access places. During the sequence process, LN checks these access
places to achieve a proper sequence on the next line segment. Line rules can be
linked to random access buffers. Line rules sequence the assembly orders which
enter the random access buffer. bus component A bus components is an entry in an LDAP directory service. The
bus component contains information about the server/client that uses Infor Integration, indicating the name, address, message queues, ports and
so on. In addition, each component has one or more connection points that link
the Integration Adapter for that component to the actual transport layer. calculation Calculations are used in GRT to answer questions in a numeric
way. The questions are linked to feature aspects. For example, the surface of a
seat can be calculated by answering two questions: width and length. When the
two answers are multiplied, the result is a return code for the classification. calculation group A code representing a group of projects the user wants to
compare financially. You can assign a calculation group to:
calculation office A work center that determines the enterprise unit for a project
or production order and that has an administrative function. For production orders, operations can be carried out in the calculation office, because the calculation office can act as a regular work center. calculation office variance The variance in financial production results that is not
accounted for by the price variance and the efficiency variance. A calculation office variance can be caused by an alteration of an end item's Fixed Transfer Price (FTP), or by differences between the estimated and the actual surcharges. The calculation office variance is used to empty the WIP so that all costs are accounted for. calibration interval The interval between one calibration and the next. The interval
shows when the next calibration will take place: after n days, or after n times
used. capacity unit The unit in which the capacity of an inventory location is
registered. It usually applies to the physical quantity area, volume, or weight
and can be converted into the inventory unit. checklist An order document to check whether everything is present for
the release of a production order. It lists the required materials, tools,
machines, and so on. classification A process to group items according to predefined features. This
also results in a coding system by which item codes can be generated. The
reason for doing this is to easily retrieve items, matching certain features. CLSO clustered line station order Represents all the material requirements for a line station for
a day. A CLSO consists of user-defined buckets. The material requirements are
combined for each bucket. In Assembly Control, transactions can be carried out per line station and per period, instead of per order. LN can combine the same materials for a specific period into one material line. After doing so, the cumulated quantity is stored in the CLSO. This accumulation reduces the number of transactions that are necessary, because the transactions are performed for a specific bucket. Acronym: CLSO See: bucket collective cutting list A list to cut materials for multiple production orders that are
made from the same material. A cutting list is sorted by material code and item
group. Using a cutting list can save time. collective sawing list A list to saw materials for multiple production orders that are
made from the same material. A sawing list is sorted by material code and item
group. Using a sawing list can save time. compile To translate all the source code of a program from high-level
language into object code prior to execution of the program. Object code is an
executable machine code or a variation of machine code. completion date The date on which the work on a project or order is finished.
You can still perform certain financial transactions on the order, after it is completed, until you close it. The same is true for projects. constraint A set of decision rules (constraints) that control the
translation of the customer requirements into the product structure of the
variant. These constraints indicate which components and operations will be
used in a specific product variant. constraint In LN,
a means to check, restrict, or compel to avoid or perform some action. In the Product Configuration module, a constraint is every possible decision rule or calculation conceivable that can be carried out during the definition of the product variants. You can use constraints in the product model for product features, generic BOMs, routings, price lists, and item data. You can use a constraint editor to define constraints. Among other things, constraints allow you to indicate under which conditions certain combinations of options are acceptable, mandatory, or not acceptable for product features. You can also indicate which bill of material components and/or operations must be included or excluded, what the purchase or sales price structure for a product variant is, and so on. In the Product Classification module, a constraint consists of one or more constraint lines that define the conditions under which certain return values or calculation results are included in the classification code during item classification. constraint In the Product Classification module, a constraint consists of one or more constraint
lines that define the conditions under which certain return values or
calculation results are included in the classification code during the
classification of items. For example:
constraint identification code The code that uniquely identifies a constraint of a generic
item. constraint validation message Error messages during the configuration process that can be
used in constraints (constraint rules). During the configuration process, LN checks if the
selected feature or option comply with the conditions defined by the
constraints. If the selection does not meet these conditions, LN will issue one of the messages recorded in this session to indicate which options are allowed. constraint validation message System messages showing the constraint rules during
configuration. These rules are part of constraint texts, in the form of either
codes or text. Constraint validation messages only refer to constraint sections
of type Validation. container A vessel used to store or move material. costing work center A work center, when linked to a planning work center, that is
used to calculate the end item unit costs, WIP transfers, and production
results. The financial transactions related to production orders are then
posted to the costing work center. The link between a costing work center and a planning work center enables you to replan production order operations. If required, you can change the work center that is used to carry out an operation without disturbing the costing process. cost item An item which is not kept in stock but to which costs are
allocated. Example,
water, electricity. cost price The cost incurred by manufacturing or purchasing a single item
(inventory valuation). cost price surcharge The amount charged in addition to the usual cost incurred when
manufacturing or purchasing a single item. count point An operation in a routing where the quantity of completed and
rejected items must be determined explicitly. If an operation is a count point,
completion of that operation must be reported separately. The quantity
completed in follow-up operations must not exceed the quantity completed in the
count point. If an operation is not a count point, it can be set to Completed automatically upon completion of a follow-up operation. The quantities completed and rejected are then determined by the completed quantity in the count point. covering note The order document that accompanies a product during the
manufacturing process, and that is used for identification purposes. critical BOM level The lowest level at which the relevant plan item appears in the
bill of critical materials. critical work center A work center that is defined by the user as a bottleneck. current operation The operation currently carried out with the earliest start
date. If more than one operation meets this criterion, the operation with the
lowest operation number is the current operation. There can be only one current
operation at any one time. customized item An item produced on a customer specification for a specific
project. A customized item can have a customized BOM and/or a customized
routing and is normally not available as a standard item. A customized item
can, however, be derived from a standard item or a generic item. cutting list An order document that lists the materials to be cut from a
larger piece of material, for example, a sheet of metal. cycle time In LN,
the time between completion of two separate units of production. For example,
the cycle time of motors assembled at a rate of 120 per hour is 30 seconds. The cycle time is also equal to the time that a product stays in one position on a assembly line, or the time that an operation is carried out on an item in a work station (excluding setup time). delivery date The date the finished items are finished according to the
planning. demonstrated load factor Combined efficiency and utilization. The ratio of actual output
to available capacity, for an operation performed at a given work center or
machine. depreciation code The depreciation system according to which depreciation, value
reduction, revaluation, and so on are calculated. desired queue The difference that the user wants between the output and input
of a work center. This value is the default for initial queue calculations. detailed cost component detailed cost component A cost component that contains non-aggregated costs. These costs originate directly from:
Detailed cost components result in a price structure where all costs have been broken down. Production order costs, production variances, and production surcharges are calculated and posted by detailed cost component. However, in inventory, the goods are calculated and posted by the three aggregated cost components. Antonym: aggregated cost component disaggregate A process that splits a family into smaller families, or into
items. Disaggregation is used in planning procedures, for example, to split the demand plan or the production plan. The split is based on a disaggregation rule, such as one of the following:
You can also disaggregate items that are not part of a family. earliest finish date The earliest date an activity can end, taking into account
previous and next activities and the company calendar. The earliest finish date can be calculated for activities in the network planning and for operations in the production planning. effective date The first date on which the relevant standard cost price takes
effect. effective date The date on which the validity of the materials or the
operations is checked. LN considers a material or operation to be valid if this date falls between the effective date and the expiry date of a material or operation. The effective dates are used in the explosion process to create demands for the correct items. efficiency variances A part of the production result that is created by differences
between the estimated and actual material quantities and hours. The efficiency variance shows how efficiently materials and resources are used. E-item See: engineering item end item An item that is ready to be delivered to a warehouse. An end
item is produced at the end of a dangle routing (co-products and by-products)
or a main routing. engineering item An item in the process of development. You can define multiple revisions of an engineering item. Typically, the most recent revisions are still in a design or test phase, another revision may have been taken into production, and older revisions are obsolete. A normal item can only become revision-controlled when it is copied from the Engineering Data Management module. Synonym: E-item engineering item relationships A link between a particular E-item revision and one or more
standard or customized items. You can use the relationship to implement a
design change incorporated in a new E-item revision by copying the E-item data
to the item defined in the relationship. engineering module In Assembly Planning, a system, or, in other words, a logical unit of assembly
parts, that is typically not manufactured as a separate physical unit. For example, the electrical system of a car is the logical unit of all parts required for the electrical system. It is, however, not manufactured as a separate physical unit, but integrated in the dashboard, doors, and so on. An engineering module has no routings, assembly lines, options, and so on, and is for design and planning purposes only. In the bill of materials (BOM), the engineering module is the top layer of the nonconfigurable section of the BOM. enterprise planning order group A user-defined group of planned production orders. estimated quantity The quantity of an item that is planned for use in a particular
production order. The estimated quantity is made up of the net quantity plus any additional quantities used to compensate for anticipated material losses. exchangeable configuration A configuration is exchangeable with another configuration at a
particular point on the assembly line, if at that point the two configurations
have the same specifications. exponential smoothing A demand forecast method that takes account of recent data over
and above past data. family In Product Classification, a collection of items with common features. family structure A multilevel hierarchy (tree) of product families. Product
families are part of a main family group. Lower family groups can be linked to
a higher family. FAS item A generic item with the FAS (Final Assembly Scheduling) order
system. FAS items are produced in a mixed model flow process on an assembly line. feature A property of an item which is used when you classify items.
For example, a frame and a wheel are features of the item bike. feature Characteristics which can be combined and subsequently be
linked to configurable items to compose a product variant. An example of a
feature is color. finalize The final action when you actually copy data from engineering
bills of material (EBOMs) to production bills of material. To copy data, you can either use mass BOM changes (MBCs), or manually copy the BOM lines. fixed costs Expenses that do not vary with the production volume. Examples
of these costs are the depreciation costs of machines and buildings, rent, and
property taxes. Operation rates and surcharges can be attributed to the
variable costs or the fixed costs. Antonym: variable costs fixed costs See: variable costs fixed duration An indication whether the production time is fixed, or is
dependent on the order quantity. If the production time has a fixed duration,
then it equals the cycle time. If it is indicated that the production time does
not have a fixed duration, the cycle time is multiplied by the order quantity. For example, baking one bread in the oven takes one hour. Baking a hundred breads at once also takes a fixed duration of one hour. flatten To bring down a multilevel structure to one level. As a result,
all elements of the hierarchical structure are the direct children of the
parent item. This process can be used to enhance the calculation of assembly
part requirements. Example Once in while, a product structure is flattened, and the result is stored separately. This way, LN does not need to browse the structure each time the assembly part requirements are calculated, because all parts that are required can be read at once. float time The time between two activities, expressed in days. Example If activity A and activity B have a end-start relationship with a delay of three, the network planning shows that activity B starts three days after activity A has finished. floor stock A stock of inexpensive material present on the shop floor that
can be used in production without recording each issue of material
individually. Floor stock is not backflushed and is not part of the estimated
costs. freeze To deactivate line stations, line segments, line station
orders, and the like. If something is frozen, no changes are allowed. For
example, a line station order can be frozen because the production process is
too far advanced to be able to process the change. FTP inventory valuation method Fixed transfer pricing is an inventory valuation method. The
fixed transfer price is a calculated inventory value, based upon calculated
material costs, operation costs, and surcharges. The FTP valuation price
includes the surcharges by warehouse. generic item An item that exists in multiple product variants. Before any
manufacturing activities are performed on a generic item, the item must be
configured to determine the desired product variant. Example Generic item: electric drill Options:
A total of 6 product variants can be produced with these options. generic price list A product variant that is generated from customer
specifications can have a detailed sales price based on the selected options.
Purchase prices for generic items can also be generated. The purchase price is
used to calculate the cost price. Matrices can be defined if options exist for
different product features that have mutual relationships that influence the
purchase or sales price. inspection note An order document on which the inspected and approved
quantities of finished products can be recorded. instrument A tool that is used during quality tests to measure particular
characteristics of an item. Example
item subcontracting The entire production process of an item is outsourced to a
subcontractor. item surcharge An item surcharge is the basis for extra costs or discounts (in
terms of percentage of fixed amounts) in the cost/valuation price structure for
items belonging to the given item group or warehouse. Surcharges are linked to
a price calculation code. Kanban label A document that authorizes the movement of goods to the shop
floor, between operations, or from the shop floor. Previously called pull note. lead time The time between the production start date and the delivery
date. The lead time can include order preparation time, transportation time,
and inspection time. lead-time offset The cumulative lead time of the production process, calculated
from the production stage where the relevant critical material or critical
capacity is required to the final stage of the production process. The
lead-time offset is a factor in determining the start date of the critical
material or critical capacity requirement. The lead-time offset can be expressed in days or hours. lifetime serial number A number to identify a tool. A lifetime serial number can be,
for example, a combination of the functional number and the year of purchase.
Lifetime serial numbers are used to group the components of a multipiece tool. Multipiece tools without a lifetime serial number can have components linked either with or without lifetime serial numbers. Example A multipiece tool X has a life time serial number 1990. One of the following must be true for the tool's components:
line mix A set of production orders that are produced successively on an
assembly line. Before production starts, the line mix is sequenced to determine
the order of production. line segment A set of consecutive assembly-line work centers on an assembly
line between two buffers. The first buffer is the beginning of the segment, the
next buffer is the first part of the next segment. line sequencing The determination of the sequence order used to start the
production of items in a segment of a production line. The sequence order may
be changed from one line segment to the next. line station A work center that is part of an assembly line. A line station
is used in the production of FAS (final assembly schedule) items. A line
station can have multiple positions, which enables more than one item to be
present in one line station. line station order Production order for an assembly line station. line-station variant Holds identical operations and materials that are used at a
specific line station for multiple assembly orders. In this manner, the
identical operations and materials are stored only once, rather than for each
assembly order. When line station variants are used, less data storage is
required, and the performance is enhanced. Example You produce cars with various features, including two types of wheels: broad and narrow. In the wheel line station, in which the wheels are fitted, all cars with broad wheels are one line station variant, and cars with narrow wheels are another line station variant, regardless of any other specifications, because the other specifications are not relevant to the wheel line station. Synonym: LSV LSV See: line-station variant machine In LN,
a mechanical object on which operations can be carried out to produce items. Machines are linked to operation rates. The operation rate and the labor rate together form the basis for the actual costing of production orders. machine hours The machine capacity in hours required to carry out the
operation. The formula LN applies to calculate the machine hours depends on whether or not the operation has a fixed duration. If the operation has a fixed duration, LN applies the following formula to calculate the machine hours: ![[...]](../images/tr_graph_tiglossary_100109a.gif) If the operation does not have a fixed duration, LN applies the following formula to calculate the machine hours: ![[...]](../images/tr_graph_tiglossary_100109b.gif) main assembly line An assembly line that produces end products. An assembly line
is a set of consecutive line stations where FAS (Final Assembly Schedule) items
(and sometimes other item types) are manufactured. main item The end result of a production order. A main item is either be changed to an end item (for delivery to a warehouse), or delivered directly to the customer in bulk. main work center A work center that is subdivided into subordinate work centers. man hours The man capacity in hours required to carry out the
operation. The formula LN applies to calculate the man hours depends on whether or not the operation has a fixed duration. If the operation has a fixed duration, LN applies the following formula to calculate the man hours: ![[...]](../images/tr_graph_tiglossary_100108a.gif) If the operation does not have a fixed duration, LN applies the following formula to calculate the man hours: ![[...]](../images/tr_graph_tiglossary_100108b.gif) mass BOM change A mechanism to simultaneously make multiple changes to the
engineering bills of material of several items. You can use mass bill of material changes to concurrently carry out several of the following actions:
Synonym: MBC master company In a multicompany situation, a master company is used to
synchronize data in all companies. Data that is entered or generated in the
master company, for example, the line structure, can be replicated to the other
companies. The master company can either be one of the companies of the
assembly lines, or a separate company. material The raw materials, components, and subassemblies used to
manufacture an item. A cost item, for example, electricity, can also be treated
as a material. material issue note An order document that reports the estimated, allocated, and
issued quantities of required materials for a production order. If you are using SFC order groups, you can combine the material for all the production orders in the group into one document, the collective material issue note. material list An order document that is used to report the material
requirements of a production order. The document reports both the estimated
quantities and the inventories on hand of the materials. mathematical operator Denotes or performs a mathematical operation or function; for
example, add (+) and subtract (-). MBC See: mass BOM change microrouting A series of steps that is linked to a routing operation to
which you can connect instructions, tools information, and process information.
When a production order is released, the information that is linked to the
operation steps is given to, for example, the shop floor operators to support
their jobs. See: operation step minimum order quantity The minimum quantity of items to be purchased or produced. When
planned orders are generated, the quantity of items to be purchased or produced
is never less than the minimum order quantity. The minimum order quantity
prevents the purchase or production of this item in quantities that are too
small. module A planning unit for a customized, manufactured, or purchased
part, for which the logistical planning is related directly to the project
network planning. A module may be a more or less complex compound part or a
single part, such as a long delivery time part. module planning Module planning is the relation between activities of the
network planning and the modules. Modules can be materials that can jeopardize
the finish date of the project because of their long delivery times. These
materials are also referred to as critical materials. A module can also be an
assembled part. move time The time that a semifinished good is in transit from one
operation to the next operation. After the last operation, the move time is the
time to transfer the finished good to the warehouse. Move time is one of the lead-time elements LN plans according to a specific calendar. moving average The average value of the present inventory, which is used in
order to calculate the administrative price when you issue inventory. The
inventory value is based on historical purchase prices. multilevel bill of material A BOM that lists the subcomponents of the components, and any
eventual subcomponents. In the multilevel BOM, the final product is at level zero. multipiece tool A tool with detachable components that operate together during
an operation. Note You can group the elements of a multipiece tool with a life time serial number. Example A die is used for fixture. The die is made up of the following components:
The die is defined as the multipiece tool, and the pieces are defined as the components. net quantity The quantity of a component or material that is theoretically
required to make a certain quantity of a product. This quantity is referred to as the net quantity because in practice you may need more than this quantity to make up for certain losses of the material or the product. network planning The network planning includes all the activities required to
carry out (plan and control) a project. The relations within the network show
the interdependent activities. normal capacity The average capacity of a machine or work center that is used
as the basis for the capacity utilization. Synonym: basic capacity norm table A table that contains the times required to perform a task
(norm times), or the numbers of times that a task can be performed in a
specific unit of time (norm units). The norm times or norm units depend on two
series of values presented in the columns (X-axis) and the rows (Y-axis) of the
table. Example The time that it costs to drill a hole depends on the material's thickness, and the hole's diameter. A norm table that contains norm times can look like this:
The norm time to drill a hole with diameter 1.0 in a material with thickness 2 is 2.5. norm time The time that is required to perform a task. That time is
determined on the basis of two values in the norm table. Example To drill a hole with a diameter of 5 mm (first value) in a sheet with a thickness of 8 mm (second value) takes 0.5 minute (norm time). norm unit The number of times that a task can be carried out for a
specific unit of time (minute or hour). That number of times is determined on
the basis of two values in the norm table. Example Each minute, 5 boards with a thickness of 5 mm (first value) and a width of 60 mm (second value) can be sawn. Consequently, the norm unit is 5. offset The cumulative lead time of the production process. The offset
is calculated from the production stage, which requires the relevant critical
material or critical capacity, to the final stage of the production process.
The lead-time offset is a factor in determining the start date of the critical
material or critical capacity requirement. offsetting To plan orders to account for the cumulative lead-time of the
production process. operation One of a series of steps in a routing that are carried out
successively to produce an item. The following data is collected during a routing operation:
This data is used to compute order lead times, to plan production orders and to calculate cost prices. operation note An order document that contains all the information required to
carry out an operation. This document is also called a job sheet. operation rate A rate that is determined by labor costs, machine costs, or
overhead costs. The operation rate can be linked to work centers or tasks by an
operation rate code. operation rate code A code that identifies operation rates (labor costs, machine
costs, or overhead costs). The code can be linked to a task or work center.
Each cost price calculation code can comprise multiple operation rate codes and
associated operation rates. operation set A set of operations consecutively carried out at the same work
center. operation status The status assigned to an operation. For example, Planned, Ready to Start, or Completed. This status
indicates how far an operation has proceeded. operation step A suboperation connected to a routing operation. An operation step can contain information such as, instructions, process information, and tools information. See: microrouting operation subcontracting The work on one or more operations in an item's production
process is outsourced to a subcontractor. option Options per product feature are aspects that specify the
product feature. For instance 'red' can be an option of the feature 'color'. option combination A specific combination of product options, for example, color
or style, that are related to an assembly order. Each option combination is either a single option, or a combination of other option combinations. option set Identifies a set with product features and options for a
configurable item within the product structure. order block A group of production orders that have the same setup states
and are produced on the same machine. Production orders with the same setup states can be executed on a machine without changing the machine’s setup. See: setup state order costs The (administrative) costs for placing an order. Order costs
include the handling and transportation costs. The costs of the purchasing
department, production planning department, and control department incurred by
a production order or a purchase order. order interval The number of workdays or working hours for which all the
requirements of a specific item are bundled in one (planned) order, during an
order planning run. LN calculates the order interval from the day when the first requirement occurs.
Order intervals are used to prevent an excessive number of planned orders in
one time period. order quantity increment The size of the step by which the order quantity can be
increased. The recommended order quantity must be a multiple of the quantity that you specify as the order quantity increment. LN verifies this when planned orders are generated. Example If the required order quantity is 62 and the order quantity increment is 8, then LN recommends an order quantity of 64. Synonym: order quantity multiple of order quantity multiple of parallel assembly operations An assembly line network in which you can perform same
operations on different assembly lines simultaneously or model a network in
which a supply line feeds multiple supply lines which again converge at a later
stage into a single line. partial delivery The delivery of a part of the total order quantity. PCM Configurator PCM Configurator is an application, integrated with LN to
configure an item. The integration can be used only as part of the web user
interface. See: Product Configuration Management penalty cost Theoretical costs for not meeting rules on an assembly line. person hours The unit of work equal to one person working for one hour. The
terms man-hours and person-hours are used interchangeably. phantom An assembly that is produced as part of a manufactured item,
and that can have its own routing. A phantom is usually not held in inventory, although occasionally some inventory can exist. The planning system does not create material requirements for a phantom, but drives the requirements straight through the phantom item to its components. Phantoms are mainly defined to create a modular product structure. Example The door of a refrigerator is defined as a phantom item in the bill of material of a refrigerator. The materials of the door are listed on the production order's material list for the refrigerator. physical location The room, building, or construction site where an operation is
carried out. pivot segment The segment from which LN starts generating
sequences. plan item An item with the order system Planned. The production, distribution, or purchase of these items is planned in Enterprise Planning based on the forecast or the actual demand. You can plan these items by means of the following:
Plan items can be one of the following:
A group of similar plan items or families is called a product family. The items are aggregated to give a more general plan than the one devised for individual items. A code displayed by the item code's cluster segment shows that the plan item is a clustered item that is used for distribution planning. plan level The level within a hierarchical planning structure. When you plan on a higher plan level, plans are general and less detailed. Example ![[...]](../images/tr_graph_tiglossary_01.gif) Plan level 1 is the highest plan level; the higher the number, the lower the plan level. planned input The total input quantity of a work center/machine for
operations that is planned to be Ready to Start during the target period. planned offline date The date when an assembly item is planned to roll off the
assembly line. Initially, the planned offline date equals the requested offline date, but the planned offline date can be changed later for planning reasons. planned output The total output quantity that you plan to report complete, for
operations at a work center/machine during the target period. planned queue The planned input minus the planned output of a work
center/machine. planning percentage The planning percentage determines how a plan item is
disaggregated over its subitems. Example ![[...]](../images/tr_graph_tiglossary_03.gif) If the total demand for bicycles is disaggregated over the various types of bicycles, the demand for racing bikes is 49% of the total demand. price calculation code A specification of how a cost price, valuation price, or sales
price is calculated. The code stores specific cost calculation data. The price calculation code that is defined in the Cost Price Calculation (CPR) Parameters determines the standard cost price. Other price calculation codes are used for simulation purposes. The price calculation code for customized items is stored by project. Example
price list matrix During the product configuration or product generation process
price list matrices can be used to determine specific purchase and sales
prices. Price list matrices can be used for recording prices, price factors,
and also surcharge and discount percentages for a product variant. Tables with prices which are based on the values of a physical quantity on the X-axis and the values of a physical quantity on the Y-axis. price variances The price variance of a production order is the part of the
production result created by differences between the estimated and actual price
of an item or hour. The price variance indicates the effect of changing rates and prices on the production result. primary work center A work center that does not have any physical resources and
cannot be modeled in a routing. It is used for capacity planning and displays
the total capacity requirements of the shared work centers. The work is
actually carried out in shared secondary work centers, which can be in the same
or a different logistical company than the primary work center. This enables
you to plan and carry out work in several different logistical companies (if
you define several secondary work centers) without having to use sales orders
and purchase order. See: shared work center process-triggered workflow Workflow in which actions are triggered by an activity, or
batch or activities, in another line station. process variable A setting or an input value related to a machine, a tool, or to
process quality that is relevant to carry out an operation or an operation
step. For example, cutting depth, cutting speed, and temperature. See: operation step product expiry date The date that indicates an item's shelf life. product family An item that represents a group of similar plan items (or
families). The items are aggregated 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. Use product families with care. A product family does not normally have its own BOM or routing. However, you can create production orders or sales orders for a product family, though this can lead to inconsistencies in the planning. production BOM An alternative term for the bill of material and is used to
distinguish the Production BOM from the Engineering BOM. production item An item that occurs in any module of Manufacturing. It is a
purchased, manufactured, or generic item that is used in a generic/production
bill of material or in a generic/production routing. production order An order to produce a specified quantity of an item on a
specified delivery date. production order status The status assigned to a production order, which indicates how
far a production order has been processed. For example, Planned, Documents Printed, or Released. production rate The quantity of items that is produced for a specific time
unit. Example The production rate can be, for example, 300 gallons per hour, or 20 pieces per minute. production schedule A range of time to which production orders are assigned whose
delivery dates fall in that period. The production orders can apply to an RPT
item or a scheduling area. The period length can be defined by the user. production time The lead time required to carry out an operation. The production time includes the setup time and the run time. The formula LN uses to calculate the production time depends on whether or not the corresponding operation has a fixed duration.
product model Used in the definition of the product variant in making a sales
order or quotations by translating the customer requirements into a product
variant product structure The sequence of steps by which components are put together to
form subassemblies, until the finished product is produced. The product structure is defined by a multilevel bill of materials, sometimes in combination with routing data. product variant identification code The unique identification of a product variant. Product variant codes make it possible to generate various variants for a configurable item. Specially if a customer wants information about options and prices without any obligation. In the implementation stage of the product model, it is also used to execute system tests. product variant structure The structure of the product variant, which consists of one
configurable end item that is related to several configurable sub-items and/or
engineering modules. Configurable sub-items can also have their own configurable sub-items and/or engineering modules. The configurable items represent the product and the subassemblies of the product. The engineering modules are used for assembly items and represent logical units that may not constitute independent products, such as an electrical system. The product variant structure is generated by LN and, dependent on the options, holds a part of the bill of material. project A collection of manufacturing and purchasing actions that are
performed especially for a particular customer order. A project is initiated by
a customer order for items having a To Order order policy. The purpose of a project is to plan and coordinate the production
of these items. For a standard-to-order production, the project is only used to link the item with the customer order. Otherwise, a project can include:
A budget is a special type of project. A budget is used to plan and estimate, not to carry out production. project activity An activity that is relevant for the (rough) planning of a
project. Activities are used to plan the rough material and capacity
requirements of the project. Activities are also used to control the (final)
assembly planning of the project. project item An item that is produced or purchased for a particular sales
order. The item's project provides a link with the sales order. A project item can be recognized by its item code. If a code has been entered in the project segment, the item is a project item. Project items are created when you enter a sales order for an item with an To Order order policy. A project item can be customized to the specifications of a customer, but it can also be a standard-to-order item. project part A separate part of the project structure that is linked to a
project. A project part is the basis that is used in order to determine the
estimated costs of a project. Not to be confused with a subproject. project structure The project structure indicates the subprojects that belong to
the main project. Project structures are especially important where there are
extensive projects in an engineer-to-order situation. Project structures can be important for network planning. This is because the start dates and finish dates of subprojects can depend on the computed start dates and finish dates of the main project's activities. The costs of subprojects are aggregated to the relevant main project in the project calculation. The project structure only applies to a project with a type other than Budget. You can only delete a project structure if the main project has the Free or Archived status. quantity extra The product quantity that is assumed to have disappeared in the
operation due to a limited yield, for example, the quantity lost through
evaporation. This only applies if a yield has the type Continuous. The quantity is referred to as quantity extra, because an extra quantity of the product must be planned to compensate for the loss. quantity ordered The quantity to be produced in a production order. quantity planned input The quantity that should be given as input to an operation to
get the required output, taking into account scrap quantity and yield
percentage, and quantities reported completed and rejected. The quantity planned input is the quantity of products on which calculations of materials and hours are based. quantity planned output The quantity of the product that you expect to come out of the
operation, taking into account scrap quantity and yield percentage, and
quantities reported completed and rejected. When LN creates a production order, the quantity planned output of the last routing operation is set equal to the order quantity of the production order. When the operation is not the last one, the quantity planned output is equal to the quantity planned input of the next operation. question A question is used during the classification of, and search for
items. The user must respond with an answer. In the Product Classification module (GRT), LN asks
the question with a question-and-answer type of user/system interaction. queue deviation The difference between the planned queue and the actual queue
on the generation date, that is actual queue minus planned queue. queue time The amount of time that an order remains at a work center
before setup or work is performed on it. receipt note An order document on which the completed quantities of the
products can be recorded. receiving site The site (plant) on a receiving point of the supply chain. reference designator Indicates the location to insert a component on an item, for
example, where to mount an electronic component on a Printed Circuit Board.
Reference designators are often used in electronics, and can originate from a
Computer-Aided Design (CAD) station. reference type A product variant may relate to a sales quotation, sales order,
budget or project, or it may concern a standard variant. refurbishing The renovation of a tool after a number of usages. rejected item A product that does not meet the quality standards set for the
end product or subassembly. Also called a reject repetitive item A repetitive item (also called RPT item) is a manufactured item
whose production is controlled by schedules. A schedule contains multiple
production orders that can be viewed, released, reported as complete, and so
on, in one session. A repetitive item usually has the following characteristics:
Anonymous items as well as to-order items can be repetitive. However, only to-order items that are Standard-to-Order can be used in RPT schedules. You cannot use generic items or Engineer-to-Order items in an RPT schedule. requested offline date The date when an assembly item must roll off the assembly line
in order to meet the delivery date on the sales order line. rescheduling message An order signal that informs the planner whether an order must
be expedited (rescheduled in), delayed (rescheduled out), or canceled. result The financial results of, for example, a project or a
production order. The results are reported in terms of variances. A variance is
the difference between the expected (budgeted or planned) value and the actual
value. You can distinguish between price variances, efficiency variances, and
additional calculation-office variances. return value The code that is included in the classification code as a
result of the selected answer. revision A version or revised version of an engineering item (E-item) or
a revision-controlled item, that is, an item linked to an E-item. Several
revisions of an E-item can exist. Example E-item: Mountain bike E-MB01
revision-controlled The revision-controlled items are items in continuous
development. To identify the item's version, add a revision number to the item
code. If a revision-controlled item is selected, the current version is used. The obsolete versions are no longer manufactured and prototypes are not sold yet. rework order A production order to fix or upgrade an already produced or
purchased item. The item that must be reworked is both input and output of the
production order. roll-off line The assembly line where a product is completed. routing The sequence of operations required to manufacture an item. For each operation, the task, machine, and work center are specified, as well as information about setup time and cycle time. routing code A code that is linked to a routing. A routing code can be
linked to a standard routing or an item-specific routing. routing quantity The quantity of the manufactured item on which the routing is
based. A routing quantity enables you to include very short operation times in
the routing of an item. Example
In a 60 minute time span, 100 items are produced. Consequently, the operation time of one item is 0.6 minute. routing sheet An order document that lists all the operations required to
manufacture an item, as well as the required tools. A routing sheet can also
contain microrouting information that provides the operators with instructions
or process information. rule Logical condition determining action. run time The time required to process a piece or lot at a specific
operation. Run time does not include setup time. run time = production time - setup time safety time The time that you can add to the normal lead time to protect
delivery of goods against fluctuations in the lead time so that an order can be
completed before the order's real need date. Example The duration of the linked activity is 30 days, and the earliest finish date of the activity is Jan, 30. If you specify 10% safety time, then GOP will plan the material on 3 working days before Jan, 30. sales price structure Gives insight into the structure and composition of the sales
prices for product variants. The sales price structure:
Note Product variant options show the technical aspects of a particular product variant, whereas the sales price structure is a commercial representation of the chosen product variant options. sawing list An order document that lists the materials that must be
obtained to saw a specified length of material from a large piece, for example,
a pipe or a bar. scheduling area A physical area or part of the production line for which a
production schedule has been defined. Scheduling areas are defined for
repetitive items. scrap Unusable material or rejects of intermediate products, for
example, because of faulty components, or products lost in cutting or sawing
operations. The gross material requirements and/or an operation's input
quantity must be increased to account for anticipated scrap. In the BOM, you can define scrap as a percentage of the net material requirements, which is the scrap factor, and as a fixed quantity, which is the scrap quantity. A scrap quantity is mostly used to define the amount of material that is lost every time when you start producing, for example, to test the equipment. For an operation, you can only define the scrap as a fixed quantity. secondary work center An operational work center where the work is actually carried
out. The secondary work center can be in a different logistical company as the
primary work center to which it is linked. This enables you to plan the work to
a work center in your own logistical company, but have it carried out in a
different logistical company without having to use sales orders and purchase
orders. For each primary work center, you can have several secondary work
centers. See shared work center. See: shared work center segment schedule A schedule that indicates when assembly parts are required.
Based on the offline date of the assembly order, and the segment for which the
assembly parts are required, the segment schedule indicates when the parts must
be delivered to the line. Segment schedules are used for a rough calculation of
assembly part requirements, when high volumes are processed, and the
performance of the calculation is critical. semifinished item The product of a phantom routing, which is passed on to the
next operation in the routing network. setup class A type of item characteristic that indicates how a machine must
be set up to produce the item. The setup class determines the changeover time
for a machine or a tool between two operations. A setup class consists of a
series of setup states. In a matrix of setup states the specific changeover
times can be defined. Example Examples of setup classes are color and thickness. If your setup class is color, the setup states can be red, green, white, black, and so on. See: setup state setup state An item's characteristic that is linked to an operation.
Depending on the setup states of two successive operations, a machine's
changeover takes longer or less long. A series of setup states form a setup
class. Example If your setup class is color, examples of setup states are red, green, white, black, and so on. See: setup class shared work center A work center that can be used across multiple production sites
and that has a relationship with a work center in the same or a different
logistic company. You can use this relationship to plan work in one (or more)
logistic companies that is actually carried out in a different company. If this
relationship is defined, you need not use sales orders and purchase orders to
transfer work between work centers in different companies. The hypothetical
work center without physical resources, which is used for capacity planning, is
the primary work center, and the operational work centers where the work is
carried out, are the secondary work centers. shop floor warehouse A warehouse that stores intermediate inventory in order to
supply work centers. A shop floor warehouse is linked to one or more work
centers and can be supplied with goods by means of replenishment orders, or by
pull-based material supply. The pull-based material supply methods are:
The items stored in the shop-floor warehouse are not part of the work in process (WIP). When items leave the shop floor warehouse for use in production, their value is added to the WIP. shrinkage The percentage of material lost due to a continuous process,
such as evaporation or absorption. simulated purchase prices A simulated purchase price can be used to experiment with
purchase prices and to compute the results. simulation The process of doing calculations using simulated figures
instead of the actual ones to see what would be the result if certain figures
were changed. Opposite term is actual or operational. single-level BOM An overview of components that are directly used in a parent
item. A single-level BOM shows only the relationship one level down. slack time The time between the queue start date of the next operation and
the setup + run start date of the next operation, calculated by LN. Difference between the slack time and the queue time on the next operation can occur if:
Note Negative slack on the last operation can occur if the planned delivery date falls after the requested delivery date. solve In Assembly
Planning, the process to determine the specific generic items and
engineering modules that make up a generic end item. The result of the solving
process is the product variant structure. Generic items and engineering modules
are stored in a generic bill of materials (BOM). The solving process selects
generic items and engineering modules from the generic BOM based on effective
dates and unit effectivity exceptions. standard configuration If an object (for example, a BOM line or a routing line) has a
standard configuration, that object is selected when you are not using unit effectivity. standard cost price The sum of the following item costs as calculated by the
standard price calculation code:
Prices that are calculated against other price simulation codes are simulated prices. The cost price is used for simulation purposes and in transactions when no actual price is available. standard item A purchased item, material, subassembly, or finished product
that is normally available. All items that are not built according to customer specification for a specific project are defined as standard items. Opposite term is customized item. A standard item can have the following order policies:
standard-to-order (STO) The production of non-customized items after receiving a
customer order. subassembly An intermediary product in a production process that is not
stored or sold as an end product, but that is passed on to the next operation. For subcontracting purposes, a manufacturer can send a subassembly to a subcontractor to carry out work on the subassembly. This subassembly has its own item code defined in the Item Base Data. After work is finished, the subcontractor sends the subassembly back to the manufacturer. Also this reworked subassembly has its own item code defined in the Item Base Data. subcontracting Allowing another company (the subcontractor) to carry out work
on an item. This work can concern the entire production process, or only one or
more operations in the production process. subcontracting note An external order document that specifies a subcontracted
operation and the corresponding data, such as the subcontractor, tasks,
routing, and required materials. subcontracting purchase order In LN,
subcontracting is considered as purchasing a service from a subcontractor.
Therefore, when subcontracting, a subcontracting purchase order is generated to
record the subcontracted operation(s) and the associated costs. subcontracting rate The rate that is used to calculate the subcontracting costs.
How LN uses the
subcontracting rate in the calculation depends on the calculation
method:
subcontracting rate factor The subcontracting rate factor, together with the
subcontracting base rate, determines the cost of subcontracting. sub-item A means to further classify items. A sub-item can either be:
sub plan item The identification of a plan item at a lower plan level. subsequent delivery The quantity of the material that must be issued for the
production order at a future date or time. summarized BOM A form of multilevel bill of material that lists all the parts
and the quantities required in a BOM. Unlike the full multilevel bill of
material, a summarized BOM does not list the levels of manufacture, and lists a
component only once for the total quantity used. Phantom items are not listed. A summarized BOM only contains purchased items, because all the manufactured items are made from purchased items. supplying assembly line An assembly line which produces subassemblies that are used in
another assembly line. It may additionally produce items that are not used on
any assembly line. An assembly line is a set of consecutive line stations where
FAS (Final Assembly Schedule) items (and sometimes other item types) are
manufactured. supply in line sequence The supply of assembly parts or assembly kits to a shop floor
warehouse, so that they are delivered to the line station in the same sequence
as the assembly orders. surcharge The indirect costs of an item, for example, overhead costs,
storage costs, handling costs, and machine-maintenance costs. Surcharges can be
defined as a percentage or as a fixed amount and can contribute to fixed and
variable costs. surcharge base A set of cost components to which an item surcharge is applied. target period A user-defined period of whole numbers of days or weeks for
which input/output data is generated. task An activity to manufacture or repair an item. For example,
sawing, drilling, or painting. A task is carried out on a work center, and can be related to a machine. test An examination or check done on a characteristic. You can link
one or more tests to a characteristic. time fence A reference date against which processes or statuses are
evaluated. Example The assembly order time fence on an assembly line defines the end date of the period for which assembly orders must be created. If this time fence is 100 days, assembly orders must be created for product variants whose planned offline date is between now and 100 days. Similarly, a time fence can define when line station orders must be frozen, updated, and so on. time unit The unit that is used to specify the physical quantity time. tool A reusable resource that is used to perform manufacturing
and/or service tasks. When you have finished with the tool, it is returned to
inventory to be used for the next requirement. The tool's life is reduced each
time you use it. A tool can be identified in LN as a unique combination of tool type and tool serial number. tool component A part of an assembled group of tool types. tool kit A set of specific tools required to perform a single task. A
tool kit can be linked to a machine, a task, and/or a routing operation to
specify the tool(s) required to perform the task and/or operation. tool life The capacity of the tool expressed in the number of hours or
times it can be used. tool number A number to identify a tool. The combination of a tool type,
for example, hammer, and a tool serial number, for example, 1, is unique, and
identifies a tool in LN. tool request A tool request is created when a tool is required. One request
is created for each tool/work center combination. A tool request displays data relating to:
How, where, and when the tool is used in the work center is determined by the tool request details, which can be found in the Tool Request - Lines (titrp0516m000) session. tool request details The tool request specifies at which work center or service
center the tool is used. In addition, the tool request details specify when,
where, and how the tool is used at the work center. The following production
order details are displayed:
tool serial number A number to identify a tool. The combination of a tool type,
for example, hammer, and a tool serial number, for example, 1, results in a
unique identification of a tool in LN. tool type The tool type is the first level that is used to identify the
tool in the coding system for tools. Some examples of tool types are:
Hammer 1, screwdriver 2 and wheelbarrow 3 are examples of tool types in combination with a tool serial number, and represent unique tools. transfer batch quantity The quantity or percentage of items for which an operation must
be finished before you can start with the next operation. Even though an
operation is not yet finished for all items in a production order, you can
start the next operation for the items that are already finished. In a production environment where kanban is used, the transfer batch quantity equals the kanban size (which is the standard container, or the standard lot size). The transfer batch quantity replaces the previously used concept of overlap percentage on operation. use-up material A material that has been replaced by another item in all BOMs. After the use-up material's last allowed order date elapses, any remaining stock is used up; then, the replacement material will be used. utilization The percent of a resource (for example, hours capacity) that is
used in production. valid You can use a specific entity. For example, if a date is
between an effective date and an expiry date, the date is valid, and the entity
can be used. validity The operating period between the effective date and the expiry
date. valuation price The actual price of an item, which is used in all financial
transactions that involve the item. The transactions include:
The valuation price must be distinguished from the cost price, which is used for other purposes. The valuation price is calculated by using one of the actual costing methods (LIFO, FIFO, MAUC and Lot costing), or by using a fixed transfer pricing (FTP) method. variable costs Expenses that vary with the production volume. The materials
needed for the production of end items, are always variable costs. Operation
rates and surcharges can be attributed to the variable costs or the fixed
costs. Antonym: fixed costs wait time The time that an order remains at a work center after an
operation is completed until it is moved to the next operation. LN does not plan wait times according to a specific calendar. Planning of the wait time is based on a 7 * 24 hours week schedule. A typical example is the time required for drying after the application of paint. warehouse transfer A warehousing order to move an item between warehouses. A warehouse transfer consists of a warehousing order of inventory transaction type Transfer. WIP See: work in process WIP transaction Any action that affects the work in process (WIP) of a
production order or work center. WIP transactions can be any of the following:
WIP transfer The transfer of the value of the work in process from one work
center to the next, in accordance with a physical transfer of a subassembly to
the work center where the next operation must be performed. work center A specific production area consisting of one or more people
and/or machines with identical capabilities, that can be considered as one unit
for purposes of the capacity requirement planning and detailed scheduling. work in process The unfinished goods in a production process including issued
materials, or the value assigned to these goods. These items are not yet
completed but either just being fabricated or waiting in a queue for further
processing or in a buffer storage. LN distinguishes two types of WIP:
Abbreviation: WIP yield The usable output from a operation expressed as a percentage of
its input. Example 1: An operation in the production process for light bulbs has a yield of 98%. So, out of every 100 light bulbs produced, 98 are good on average. The remaining light bulbs are faulty, and will therefore be rejected. Example 2: Steel wires are twisted together to produce a steel cable. Due to the twisting, the cable is 10% shorter than the wires from which it is produced. So, the yield is set to 90%. yield type Determines if and how lost products come out of production if
the yield percentage is below 100%. Two yield types are available:
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