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

ERP Software Concepts and Terms Starting with: M

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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 M 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: M
ERP Concept	ERP Term Definition
Make or buy analysis	The complex process of determining whether a product should be manufactured in house, sub-contracted or bought out.
Make-to-order	A production environment where a product or service can be made after receipt of a customer's order. The final product is usually a combination of standard items and items custom-designed to meet the special needs of the customer.
Make-to-stock	A production environment where products can be and usually are finished before receipt of a customer order. Customer orders are typically filled from existing stocks, and production orders are used to replenish those stocks.
Manufacturing database	An organised and integrated collection of data, relating to all manufacturing activities, in which the natural and logical relationships between various data items are represented thereby improving the flow and accessibility of information.
Manufacturing operation	An activity performed to convert raw materials / components etc. into finished goods
Manufacturing order	A document, group of documents, or schedule conveying authority for the manufacture of specified parts or products in specified quantities.
Manufacturing resource planning	Method for planning of all of the resources of a manufacturing company
Master production schedule	Anticipated build schedule (must be realistic rather than optimistic) which defines the quantities of the finished products required and the associated due dates.
Material requirements planning	Time-phased material requirements calculated using the BOM and inventory data in order to satisfy the MPS.
Mean absolute deviation	Defined as the average of the absolute values of the forecast errors.
Mixed model production	Manufacturing and assembling of different products on the same manufacturing facility, over a relatively short period of time.
Modular design	Components and assemblies are common across a given product range
Move time	Time between a given production lot finishing one operation and it being moved and entering the queue for the next operation
Multi-model production	A variety of models, are produced but not simultaneously, over a period of time.
Multiskilled workers	Able to handle a number of different machines and operations.

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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ETO 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 4

ETO 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 4

ETO site will be developed into a portal site for ETO manufacturers.

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

Last Updated: 27-Mar-2008