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

ERP Software Concepts and Terms Starting with: R

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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 R 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: R
ERP Concept	ERP Term Definition
Receiving	The function encompassing the physical receipt of material, the inspection of the shipment for conformance with the purchase order (quantity and damage), the identification and delivery to destination, and the preparation of receiving reports.
Records	An organised method of storing related data.
Regenerative MRP	An MRP processing approach where the master production schedule is totally re-exploded down through all BOM, to maintain valid priorities. New requirements and planned orders are recalculated at that time.
Regression analysis	A mathematical technique which can be used to fit a relationship to a given set of data by minimising the sum of the squares of the errors.
Release date	The date on which an order is released to the shop floor.
Reorder point	Sum of the forecasted requirements during replenishment lead time plus a safety stock
Repetitive manufacturing	The production of discrete units in a high-volume concentration of available capacity using fixed routings. Products may be standard or made from standard modules. Production management is usually based on the production rate.
Reporting	Collecting and summarising production data
Reprioritising	A revision of existing priorities in the light of new information.
Resource planning	Represents the process of determining the long range capacity needs of the business
Resource profile	The standard hours / time of load placed on a resource, by time period.
Return on investment	The rate of return on an investment in a particular project.
Returns to supplier	Material that has been rejected by the buyer's inspection department and is awaiting shipment back to the supplier for repair or replacement.
Review horizon	The time between successive evaluations of status to determine the need for further action.
Rough cut capacity planning	The process of converting the master production schedule into requirements for key resources, often including labour, machinery, warehouse space, supplier's capabilities etc. Comparison to available or demonstrated capacity is usually done for each key r
Rough cut resource planning	Process of converting production plan or MPS into capacity needs for key resources (manpower, machinery, money etc.)
Routing	Document detailing the manufacture of a particular item (includes operations to be performed, their sequence, work centres used etc.).
Run time	The actual time required to carry out a manufacturing operation on a single component.

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