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

ERP Software Concepts and Terms Starting with: I
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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 I 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: I
ERP Concept
ERP Term Definition
Independent demand  Demand for an item which is unrelated to the demand for other items 
Independent inventories  Inventories unsuitable for control by MRP 
Infinite capacity planning  The planning of capacity requirements assuming there are no restrictions on capacity level (See Capacity planning). 
Input / output control  A technique for capacity control where planned and actual inputs and planned and actual outputs of a work centre are monitored. 
Inventory  Raw material, WIP, stock, finished goods and all items required for manufacture 
Inventory code  Identifies the inventory level at which the item would be stocked (i.e. raw materials, subassembly, finished goods etc.). 
Inventory data accuracy  The percentage of inventory records which do not contain any errors. 
Inventory records  Perpetual inventory record is a continuous account of the incoming materials, outgoing materials and the balance on hand 
Inventory turnover  The number of times inventory is replaced during a time period (rate of material flow measure) 
Islands of automation  An automated sub-system which is not integrated with other systems / sub-systems with which it interacts. 
Item master record  Record for an item containing descriptive data, control values (lead times, order quantities etc.) and other information. Synonym: part master record. 

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.

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The 4engineer to order manufacturer manufacturing production planning project management ERP system EDM PDMETO web site is being used to fulfil three purposes, firstly, it is a vehicle to recruit engineer to order manufacturers to take part in the research project concerned with improving how ETO manufacturing companies plan production and manage their jobs / projects. Secondly, the 4engineer to order manufacturer manufacturing production planning project management ERP system EDM PDMETO web site is being used a means of disseminating the results of the research project as well as good practices employed by successful engineer-to-order manufacturers. Thirdly, the 4engineer to order manufacturer manufacturing production planning project management ERP system EDM PDMETO site will be developed into a portal site for ETO manufacturers.

 

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

Last Updated: 27-Mar-2008