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

ERP Software Concepts and Terms Starting with: S
ETO and ERP Software Packages
4ETO:
4engineer to order manufacturer manufacturing production planning project management ERP system EDM PDMETO Home Page
What is ETO?
ETO Links
Suggest a Link
Contact 4engineer to order manufacturer manufacturing production planning project management ERP system EDM PDMETO
Previous Page
ERP:
ERP Software Modules
ERP Business Processes
ERP Dictionary A-Z
ERP Dictionary by Category

Papers & Articles:
Index of Articles
Supply Chain Optimisation
S&OP and SCM
SCO Software
CIM Seminar
ERP Training
ERP Education

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 S 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: S
ERP Concept
ERP Term Definition
Safety stock  Amount of stock planned to be available to protect against uncertainty in demand or stock. 
Safety time  Material is planned to arrive ahead of its requirement date 
Sales planning  Determines the sales rates the company must maintain for its product lines to meet the strategic plan 
Schedule  A timetable for planned occurrences, e.g., shipping schedule, manufacturing schedule, supplier schedule. Some schedules include the starting and ending time for activities. 
Schedule adherence  The ability of a work centre to follow the work schedule which it has been assigned. 
Scheduled receipt  Items due to be received in a particular time period. (An open order that has an assigned due date). 
Scheduling  Activity of assigning dates to the important steps in the process of manufacturing products (part of planning and control not execution). 
Scrap factor  A percentage factor in the product structure used to increase gross requirements to account for anticipated loss within the manufacture of a particular item. Synonym: scrap rate. 
Sequencing  Determining the order in which a number of different jobs should be processed in order to achieve certain objectives. 
Serial number  A unique number assigned for identification to a single piece that will never be repeated for similar pieces. 
SERVE  OPT module. Backward schedules to the order due date, assuming infinite capacity 
Service parts  Parts used for the repair or maintenance of a product 
Setup costs  Costs associated with preparing the resource for the next product. 
Setup time  The amount of time it takes to make the machine and part ready for operation 
Shop floor control  A system for using data from the shop floor to maintain and communicate status information on shop orders and on work centres. 
Shop order  A work order used to authorise and track the production of parts and products through the shop. Same as production order. 
Shop packet  Is the paperwork (routing sheets, material requisitions etc.) associated with an order released by production control. 
Simulation  The process of carrying out experiments on a model of a real system to determine the results. 
Simultaneous engineering  A concept that refers to the participation of all the functional areas of the firm in the product design activity. 
Slack time  The amount of time by which the expected finish date precedes the due date 
Smoothing  The process of averaging a parameter by assigning different weights to successive data values. 
Spare parts  Modules, components, and elements that are planned to be used without modification to replace original parts. 
SPLIT  OPT module. Divides the engineering network into sections depending on their position relative to the bottlenecks 
Split lot  Manufacturing order quantity that has been divided into two or more smaller quantities usually after the order is in process 
Standard cost  A cost estimate based on standard labour hours, material and overhead costs. 
Standard deviation  A measure of the width or spread of a set of data. Calculated by adding all the squares of the differences between the measured values and the mean value, dividing the resulting sum by the total number of observations. 
Standard time  The length of time that should be required to: setup a given machine or operation and run one part, assembly, batch, or end product through that operation. Synonym: standard hours. 
Standing orders  Firm customer orders covering long periods in the manufacturing cycle (enables planners to assign manpower to a core of work). 
Start date  The date on which an operation should be started or was actually started. 
Stock status  A report of what is on hand, what is due in and what is owed to customers 
Stockout costs  The costs associated with a stockout. Those costs may include lost sales, backorder costs, expediting, and additional manufacturing and purchasing costs. 
Storage costs  A subset of inventory carrying costs, including the cost of warehouse utilities, material handling personnel, equipment maintenance, building maintenance, and security personnel. 
Strategic planning  Is long range and incorporates management's goals, policies and strategies for operating the total business. 
Sub assembly  An assembly that is used at a higher level to build another assembly. 
Subcontracting  Sending production work outside to another manufacturer. 
Superbills  A type of planning bill, located at the top level in the structure, that ties together various modular bills (and possibly common parts bill) to define an entire product or product family. 
Supplier  Provider of goods or services. 
Supplier performance  Evaluation of suppliers usually with respect to delivery, quality and price. 
Supplies  Are expense items or non-productive materials (they do not become part of the end product) 
Surplus stock  Stock that is either useless or is greater than safety stock level and the expected requirements for the planning horizon. 
Synchronisation  Operations starting and finishing at each process at the same time 

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.

Your Name:
Your Email Address:
Comments / Question:
 

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

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.

 

Google
  Web www.4eto.co.uk

 

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

Last Updated: 27-Mar-2008