ERP software system concepts and terms - education and training is essential for successful ERP implementation

ERP Software Concepts and Terms Starting with: B

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Understanding of the relevant ERP system terminology and concepts is important if an ERP software package is to be sucessfully implemented within a business and operated correctly such that it yields cost savings, better quality management information and the other efficiencies and benefits that you are hoping for. To aid with this understanding of ERP system terminology and concepts we are compiling a list of ERP terms and their associated definitions which is being made available to companies with an interest in ERP - if you want to add to this list of ERP concepts then please complete the form at the bottom of this page.

The table below lists the main ERP system concepts that start with letter B and their definitions - we hope you find them useful and wish you every success with your ERP software system implementation! To learn about other ERP system concepts, terminology and definitions click the relevant letter from the list below:

-A-B-C-D-E-F-G-H-I-J-K-L-M-N-O-P-Q-R-S-T-U-V-W-Y-Z-

ERP Software Concepts and Terms Starting with: B
ERP Concept	ERP Term Definition
Backflushing	The concept of updating component inventory balances when finished items are received into stock by postdeduction.
Backlog	All the customer orders received but not yet shipped.
Backorder	An unfilled customer order or commitment. A backorder is an immediate (or past due) demand against an item whose inventory is insufficient to satisfy the demand,
Backward scheduling	Starts with the date the order is required and calculates the schedule back through the routing to determine the proper release date of the order
Base inventory level	The inventory level made up of aggregate lot-size inventory plus the aggregate safety stock inventory.
Batch	A quantity scheduled to be produced or in production.
Batch flow	Implies that each unique batch is completed in one work centre before the entire batch is moved to the next work centre.
Batch overlapping	Process whereby an operation is overlapped and a part of the batch, on which the operation has been completed, is sent ahead to the next operation, referred to as the overlapping operation, before completion of work on the entire batch.
Batch splitting	Dividing a batch into two or more sub-batches and simultaneously processing each on similar facilities as separate batches (usually to compress the lead time or expedite a small quantity).
Batch ticket	The documentation that accompanies each batch.
Bid for tender	The response to the written request from a potential customer asking for the submission of a quotation or proposal to provide products or services.
Bill of capacity	Amounts of capacity, in different departments, required to make a product.
Bill of distribution	BOM that shows the structure of the flow of material from its supply source to the distribution centres that stock the product.
Bill of materials	Listing of all the subassemblies, component parts, raw materials (including quantities) etc. that go into a parent item.
Bill of resources	Synonym for the rough cut capacity plan (RCCP)
Billing	The process of sending invoices to customers.
Blanket order	A long-term commitment to a supplier for material against short-term releases will be generated to satisfy requirements.
Block scheduling	An operation scheduling technique where each operation is allowed a "block" of time, such as a day or a week.
Blowthrough	Synonym for Phantom BOM
BOM children	Any item in the bill of material which belongs to an assembly at a higher level.
BOM parents	Any item in the bill of material which is assembled from components at a lower level.
Bottleneck	The manufacturing process for which the available capacity is less than the required capacity.
Bottom-up replanning	The process of replanning using pegging data to solve material shortage problems.
Bucketed MRP	Materials requirements planning system in which all time-phased data are accumulated into time periods or buckets.
Bucketless MRP	Materials requirements planning system whereby the requirements for lower level items can be specified on a daily basis.
Budget	A plan which provides an estimate of future expenditure and revenues related to planned activities.
Buffer stock	A quantity of stock planned to be in inventory to protect against fluctuations in demand or supply (synonym for Safety stock).
BUILDNET	OPT module. Constructs a product network for each product manufactured in the organisation (contains information similar to that which would be stored in the BOM and Routings files of an MRP system)
Business plan	Statement of income projections, costs and profits (financially orientated)
By-products	A material of value produced as a residual of or incidental to the production process.

There are many factors that are deemed to be critical to the success of an ERP software implementation. Ensuring that you have gone through an effective ERP system selection process is one essential ingredient to success and other ingreients would be issues such as data accuracy (BOMs, inventory records, routings etc.) However, the 'softer' issues associated with ERP software implementation process are often ignored by companies attempting an ERP implementation often with disastrous consequences. Soft implementation issues include: the people in the organisation, their fears, motivation (or lack of it!), resistance to change and the prevailing culture within the organisation - all have their parts to play in the ERP implementation process.

Communication and overt committment to the ERP implementation project by senior management are crucial to ERP system implementation success. Similarly, adequate and timely education and training of key personnel helps to reduce fear, increase understanding and can be used to sway a critical mass of people to being behind the ERP implementation and working to make the implementation a success. The ERP system Concepts and Terms listed and defined on this page can be used for reference to help ensure that people in companies attempting an ERP package installation and implementation are conversant with the main ERP ideas and terminology associated with ERP software systems and their use.

If you would like to add an ERP concept and definition or you want to make a general comment about this page of ERP system concepts and terms or have any questions about ERP software selection or ERP system implementation then please complete the form below and we will do our best to help.

Note that after submitting the form this page about ERP software system terminology, concepts and definintions will reload.

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Please contact Austen Jones with any questions, comments or suggestions.

Last Updated: 27-Mar-2008