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

ERP Software Concepts and Terms Starting with: O
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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 O 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: O
ERP Concept
ERP Term Definition
Obsolescence  The loss of usefulness or worth of a product or facility as a result of the appearance of better or more economical products, methods or facilities. 
One-off  A unique product or batch of products. These will be made to order items (or prototypes etc.). 
Open order  An active manufacturing order or purchasing order 
Operating expenses  The expenses involved in the running of particular operations. 
Operations sequencing  Simulation, manual or computerised, process used to decide the order in which the required operations should be carried out. 
Operations yield  The proportion of manufactured items that meet the required specifications (a planning parameter). 
Optimised production technology  MPC system which assumes that the primary goal of any manufacturing business is to make money. Bottom line financial measures which are used are: net profit, ROI and cash flow. Work is scheduled around bottlenecks. 
Order action report  An MRP report which details order actions which need to be taken. The report answers the questions of what to order, how much to order and when to order it. 
Order control  Control of manufacturing activities by individual manufacturing, job, or shop orders, released by planning personnel and authorising production personnel to complete a given batch or lot size of a particular manufactured item. 
Order dispatching  The selecting and sequencing of available jobs to be run at individual workstations and the assignment of those jobs to workers. 
Order entry  Process of accepting and translating what a customer wants into terms used by the vendor 
Order log  Complete log of customer orders 
Order point  Sum of the demand forecast over the replenishment lead time and a safety stock 
Order release  The authorisation to produce or ship material that has already been ordered. 
Order status  The current status of an order. Released: firm quantity, date and requirements. Firm Planned: firm quantity & date and planned requirements. Planned: planned quantity, date and requirements 
Order up to level  Stock levels are periodically reviewed and an amount of the item is ordered to return stock levels to the target level. 
Output control  A technique for controlling output where actual output is compared to planned output to identify problems at the work centre. 
Overall machine effectiveness  Measure of machine effectiveness. (The product of machine availability, production volume and quality performance). 
Overdue work  Work which has not been completed by the required date. 
Overloaded capacity  A condition when the total hours of work allocated to a work centre exceed the work centre's capacity. 

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