allowed demand

The maximum volume that you want to sell to customers in a particular channel. When this maximum is reached in a certain channel ATP period, you accept no more customer orders for that channel.

ATP/CTP horizon

The date until which LN performs ATP and CTP checks.

The ATP horizon is expressed as a number of working days during which LN can carry out ATP and CTP checks. Beyond the ATP/CTP horizon, LN does not check ATP or CTP: all customer orders are accepted.

availability type

An indication of the type of activity for which a resource is available. With availability types, you can define multiple sets of working times for a single calendar.

For example, if a work center is available for production on Monday through Friday and available for service activities on Saturdays, you can define two availability types, one for production and one for service activities and link these availability types to the calendar for that work center.

available-to-promise

The item quantity that is still available to be promised to a customer.

In LN, available-to-promise (ATP) is part of a larger extended framework of order promising techniques called capable-to-promise (CTP). If an item's ATP is insufficient, CTP goes beyond ATP in that it also considers the possibility of producing more than was initially planned.

In addition to the standard ATP functionality, LN also uses channel ATP. This term refers to the availability of an item for a certain sales channel, taking into account the sales limits for that channel.

For all other types of order promising functionality used in LN, the term CTP is used.

ATP

ATP

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:

  • Components with long lead times
  • Subassemblies with a high capacity load for the internal or external production system

The Enterprise Planning package uses the bill of critical materials to generate the critical material requirements for critical materials.

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.

business-function model

A part of a business model that is built from a selection of business functions that are initially created in the repository.

capable-to-promise

The combination of techniques used to determine the quantity of an item that you can promise to a customer on a specific date.

Capable-to-promise (CTP) involves an extension of the standard available-to-promise (ATP) functionality. CTP goes beyond ATP in that it also considers the possibility of producing more than was initially planned, when an item's ATP is insufficient.

In addition to the standard ATP functionality, CTP comprises the following techniques:

  • Channel ATP: restricted availability for a certain sales channel.
  • Product family CTP: order promising on the basis of availability on product family level rather than on item level.
  • Component CTP: check if there are enough components available to produce an extra quantity of an item.
  • Capacity CTP: check if there is enough capacity available to produce an extra quantity of an item.

CTP

capacity CTP

The capacity of a resource that is available in a plan period for additional production of a plan item in connection with a customer order.

The capacity CTP is used in capable-to-promise calculations.

capacity CTP check

An availability check on the capacity necessary to produce an extra quantity of an item to deliver a customer order on time.

The capacity CTP check is performed on resources in the item's bill of critical capacities or on the work centers of the item's routing, depending on the order horizon. Only the resources defined as CTP critical are checked.

channel ATP

The item quantity that can still be promised to customers in a particular sales channel.

The channel ATP depends on the allowed demand for a channel. The total allowed demand for one channel ATP period forms the initial value of the channel ATP in that period. Every time a demand is recorded within this channel and within this channel ATP period, this demand is subtracted from the channel ATP.

Channel ATP is used to limit the supply that goes to specific channels, and to secure that enough quantity is left to supply other important customers.

channel ATP check

A check on the quantity that can be promised to a customer based on the allowed demand for the channel to which the customer belongs.

Note that the main purpose of channel ATP is to reserve a certain quantity of the product for other channels, for example, for strategic reasons.

Example

A customer belongs to the direct marketing sales channel. The allowed demand for this channel is 50,000 piece per period. A quantity can be promised to the customer, as long as the total sales volume for that channel in that period does not exceed 50,000.

channel master plan

An item-specific logistic plan that contains sales targets and constraints for a specific combination of a sales channel and plan item.

A channel is a grouping of customers and items.

A channel master plan supports sales-related functions such as demand forecasting and due-date quoting, as well as aggregation.

component CTP check

An availability check on the components necessary to produce an extra quantity of an item to deliver a customer order on time.

The type of check that is performed on a component item itself depends on the CTP parameters for the component in question.

The component CTP check is performed on components in the bill of critical materials or the bill of material, depending on the order horizon. Only components defined as CTP critical are checked.

component CTP reservation

The item quantity reserved to be used as critical components for the (as yet unplanned) production of other items.

This reservation is made when the ATP data in an item master plan is updated and the following is true:

  • The cumulative ATP for plan item A drops below zero.
  • The plan item settings for item A are set to enable component CTP checks.
  • The bill of critical material for item A contains item B.
  • Item B is defined as CTP critical in the plan item settings.

In this case, a component CTP reservation is recorded for item B, and the ATP of item B is reduced accordingly. The quantity of item A that will be produced with the reserved quantity of the component is stored as CTP Reservation Receipts.

Note: To guarantee that LN can carry out an ATP check correctly, you must fill the Warehouse field in the Planning Bill of Critical Material (cprpd3120m000) session. LN explodes the ATP of a main item to plan items that have the same planning cluster as the warehouse you specified on the bill of critical materials of the main item.

CPQ Configurator

An application, integrated with LN to configure an item. The integration can be used only as part of the web user interface.

critical in CTP

A plan item that is critical in CTP must be checked during a component CTP check for a higher level item in the bill of critical materials. A resource that is critical in CTP must be checked during a capacity CTP check for a plan item, if this resource is included in the plan item's bill of critical capacities.

CTP time fence

The number of working days from the current moment, during which LN does not perform CTP checks.

The CTP time fence must be smaller than the ATP/CTP horizon.

During the period of the CTP time fence, CTP is considered to be zero.

cumulative ATP

The total item quantity that you can promise to deliver in a particular plan period.

You can use the cumulative ATP to check the availability of an item when you receive a sales order or an inquiry.

Note: If the item's cumulative ATP is insufficient, LN can carry out a capacity and/or component CTP check to see if the demand can be met by increasing the production of the item.

customer orders

The sales orders that have not yet been delivered to the customers involved.

The customer orders are part of the actual demand and are used to consume the demand forecast.

demand forecast

The item quantity that is forecast to be required in a plan period. A demand forecast can be generated based on seasonal patterns or historical demand data.

The demand forecast is part of the demand plan for a plan item or channel.

family CTP check

A CTP check that is carried out at a higher product-family level, instead of the level of the item itself.

Like the regular CTP check for an item, a family CTP check can involve several types of ATP and CTP checks.

In this case, you can configure LN so that, when the CTP of the mountain bike must be checked, LN will in fact check the CTP of the bicycle family.

Example

The mountain-bike item is part of the bicycle family.

family CTP horizon

The time period for which LN performs the capable-to-promise (CTP) check for an item on a higher product-family level, instead of the level of the item itself.

The start date of the family CTP horizon is defined in the plan-item settings. The end date coincides with the CTP time fence.

The application of family CTP depends on the plan period in which the delivery date of a customer order falls:

  • If the plan period falls before the family CTP horizon, LN checks the CTP of the item itself.
  • If the plan period falls within the family CTP horizon, LN checks the CTP on a higher product-family level.

generic BOM

Set of components, per generic item, from which product variants can be composed. The generic bill of material forms the basis for the variant bill of material which arises during the configuration/generation of a product variant. For each BOM line (component) a constraint rule may apply.

item master plan

An item-specific, overall logistic plan that contains planning data and logistic targets for sales, internal and external supply, and inventory. All planning data in the item master plan is specified by plan period. Enterprise Planning uses this data to carry out master-planning simulations.

Within the item master plan, you can distinguish the following subplans:

  • demand plan
  • supply plan
  • inventory plan

In addition, an item's master plan contains information about actual demand, actual supply, planned supply in the form of planned orders, and expected inventory.

If an item has a master plan and channels have been defined for this item, each channel usually has its own channel master plan. A channel master plan contains channel-specific information only, that is, demand data and information about sales restrictions.

Item master plans and channel master plans are defined within the context of a scenario. These scenarios can be used for what-if analyses. One of the scenarios is the actual plan.

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.

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.

multisite

Refers to the management of multiple sites within a single (logistic) company.

In a multicompany structure, which includes several companies, multisite applies to each of the logistic companies.

nonconsumed demand forecast

The part of the forecast demand that has not yet been consumed by actual demand.

As a rule, the demand forecast, extra demand, and special demand are gradually filled by actual orders. This process is referred to as consumption of forecast demand by actual demand.

order lead time

The production time of an item expressed in hours or days, based on the lead time elements as defined in the routing operations.

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:

  • Master-based planning, which is similar to master production scheduling techniques.
  • Order-based planning, which is similar to material-requirements planning techniques.
  • A combination of master-based planning and order-based planning.

Plan items can be one of the following:

  • An actual manufactured or purchased item.
  • A product family.
  • A basic model, that is, a defined product variant of a generic item.

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

Plan level 1 is the highest plan level; the higher the number, the lower the plan level.

planning cluster

An object used to group warehouses for which the inbound and outbound flow of goods and materials is planned collectively. For this purpose, the demand and supply of the warehouses of the planning cluster is aggregated. Within a planning cluster one supply source is used, such as production, purchasing or distribution.

If multisite is implemented, a planning cluster must include one or more sites. The site or sites include the warehouses for which the planning processes are performed. A site is linked to one planning cluster.

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 plan

The planned receipts of manufactured items, specified by period.

These receipts are the quantity that must be produced internally.

Note that the production plan does not include the quantity of the plan item that is delivered by other companies or warehouse locations.

The production plan is part of the supply plan for a plan item.

resource

A group of machines or employees in Enterprise Planning, corresponding to a work center in other LN packages.

Each operation performed to manufacture an item requires a certain capacity amount from a resource (for example, production hours). The capacity of the resource can be a constraint in the planning.

The availability of a resource can be specified by using the resource calendar.

resource master plan

A time-phased overview of the capacity use at a certain resource.

In a resource master plan, the following types of capacity use are recorded per plan period:

  • Critical capacity requirements from master-based planning.
  • Capacity use related to planned orders.
  • Capacity use related to JSC (production) orders and service activities.
  • Capacity use related to PCS (project) activities.

In addition, the resource master plan contains capacity CTP information.

sales order

An agreement that is used to sell items or services to a business partner according to certain terms and conditions. A sales order consists of a header and one or more order lines.

The general order data such as business partner data, payment terms, and delivery terms are stored in the header. The data about the actual items to be supplied, such as price agreements and delivery dates, is entered on the order lines.

specification

A collection of item-related data, for example, the business partner to whom the item is allocated or ownership details.

LN uses the specification to match supply and demand.

A specification can belong to one or more of the following:

  • An anticipated supply of a quantity of an item, such as a sales order or production order
  • A particular quantity of an item stored in a handling unit
  • A requirement for a particular quantity of an item, for example a sales order

wizard

A special form of user assistance that automates a task by setting the parameter values within a business model and which directs the software to meet the specific requirements of an organization.