appropriate menu

Commands are distributed across the Views, References, and Actions menus, or displayed as buttons. In previous LN and Web UI releases, these commands are located in the Specific menu.

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.

effectivity unit

A reference number, for example a sales order line or a project deliverable line, that is used to model deviations for a unit effective item.

exception

A deviation of an effective item's standard configuration. An exception indicates, for example, whether a specific BOM line or a specific routing operation is used for an effectivity unit. Exceptions are often created as a result of customer requirements, or technology upgrades.

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:

  • The task. For example, sawing.
  • The machine used to carry out the task (optional). For example, sawing machine.
  • The place where the task is carried out (work center). For example, woodwork.
  • The number of employees required to carry out the task.

This data is used to compute order lead times, to plan production orders and to calculate standard cost.

order-based planning

A planning concept in which planning data is handled in the form of orders.

In order planning, supply is planned in the form of planned orders. LN takes into account the start and finish dates of individual planned orders. For production planning, this method considers all material and capacity requirements, as recorded in an item's BOM and routing.

Note: In Enterprise Planning, you can maintain a master plan for an item, even if you plan all supply with order planning.

order policy

The order parameter that controls the way an item is produced or ordered.

This can be:

  • Anonymous, the item is produced or purchased independent of customer orders.
  • To order, the item is produced or purchased only if customer orders exist for the item.

order system

The order parameter that controls the way by which recommended purchase and production orders are generated.

Options:

  • FAS (final assembly scheduling).
  • SIC (statistical inventory control).
  • Planned (schedule-based and order-based planning).
  • Manual (manual reordering).

product variant

A unique configuration of a configurable item. The variant results from the configuration process and includes information such as feature options, components, and operations.

Example

Configurable item: electric drill

Options:

  • 3 power sources (batteries, 12 V or 220 V)
  • 2 colors (blue, gray).

A total of 6 product variants can be produced with these options.

requirement

The business reason that you define to describe exceptions used in unit effectivity. A requirement can be, for example, a specific market, model, or customer.

routing

The sequence of operations required to manufacture an item.

For each operation, the reference operation, machine, and work center are specified, as well as information about setup time and cycle time.

sourcing strategy

The subdivision of the planned supply of a plan item over the following sources:

  • Job Shop
  • Purchase
  • Distribution

Sourcing strategies are defined within the context of a scenario.

You can define sourcing strategies for planning cluster, item groups, and plan items.

unit

The physical quantity in which an item or good is managed. For example, a quantity of wood can be expressed as a length by using the unit of one meter, or as a volume by using the unit of one cubic meter.

unit effective item

An item for which an effectivity unit can be defined on the sales order line or the sales quotation line. The effectivity unit is used to model deviations for the unit effective item, and to peg purchase orders and production orders to a specific sales order line for the unit effective item.

unit effectivity

A means to control the validity of variations by effectivity units.

Unit effectivity enables you to model changes for the following entities:

  • Engineering bill of material
  • Production bill of material
  • Routing
  • Routing operations
  • Supplier selection
  • Sourcing strategies