P
product data management (PDM): A system, which controls all product-related data and associated workflow processes within an enterprise. Product data management systems replace paper-based processes and information storage with a single, centralized data repository that enables authorized users throughout a company to access and update current product information, while ensuring they follow specific procedures. PDM vendors recently have emphasized the similarities between PDM and groupware technology appropriate to a range of business environments. Besides ensuring data integrity using relational database technology, both include workflow and web-based applications that ease collaboration efforts.
product configurator: A system, generally rule-based, to be used in design-to-order, engineer-to-order, or make-to-order environments where numerous product variations exist. Product configurators perform intelligent modeling of the part or product attributes and often create solid models, drawings, bills of material, and cost estimates that can be integrated into CAD/CAM and MRP II systems as well as sales order entry systems.
product life cycle:
1) The stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline.
2) The time from initial research and development to the time at which sales and support of the product to customers are withdrawn.
3) The period of time during which a product can be produced and marketed profitably.
product lifecycle management (PLM): A process for guiding products from idea through retirement to deliver the most business value to an enterprise and its trading partners. The applications that support the business activities enabled through PLM includes product ideation, design, engineering, manufacturing process management, product data management, and product portfolio management.
packing department- The area that prepares picked material for shipment by performing the consolidation, packing, marking and documentation tasks required. The packing department may also be responsible for locating and picking materials for outgoing shipments.
packing slip- The paperwork thata shipment, pallet or smaller unit and describes its contents and quantities, and normally references the order number or numbers involved.
paradigm shift- A complete change in thinking or belief systems that allows the creation of a new condition previously thought impossible or unacceptable. (ex.- the change in thinking created by Just-in-Time that views inventory as a liability, not an asset).
parallel- The simultaneous performance of related activities or tasks, normally using different resources, that enables completing those activities faster than if they were done in a serial manner.
parallel conversion- A project implementation technique in which an existing system is run in parallel with the new system, with the comparison of operations and results to verify that the new system will properly replace the functions of the old. Parallel conversions are often difficult due to the time, expense and viability of operating two systems and problems in comparison and verification when functions have changed significantly. A parallel is often not necessary when the conference room pilot
and issue identification and resolution phases are done well, and adequate resources are made available at cutover time.
parent- An upper level item that uses a component or material (child).
Pareto's law- The law developed by an Italian economist in the 1800s based on the principle that the vast majority of an end result (wealth, cost, quality problems, etc.) is determined by a small percentage of a group (the number of people, items, etc.) Often stated as the 80/20 rule, it is used in inventory counting and quality systems to concentrate attention on the small (20%) number of sources that account for 80% of inventory value or quality issues.
part number- The set of characters, normally alphanumeric, that identifies a specific manufactured or purchased item and is used in all database, order, inventory and other functions.
part period balancing (PPB)- A lot size technique that uses look ahead and look back functions to consider additional periods in modifying an initial calculation based on least total cost.
parts list- A listing of all components used in the production of a parent item that does not reflect its structure or intermediate levels, and is not useful in time- phasing requirements based on lead time offsets.
parts per million (PPM)- A quality measure of the number of defective items observed or projected out of a population of one million.
past due- Line items and orders expected or promised for dates prior to the current date. Past due orders are an integral part of evaluating delivery performance and normally are prioritized when reviewing exception messages.
path- A series of connected events, nodes or resources that indicates the links, direction of data flow, timing dependencies and positions of those items.
pattern detection- Elements in measurement and decision support systems that identify recurring relationships and distributions of data in a given set.
paypoint- The operations in a routing
used to report production and/or labor. Quantities reported at paypoints are backflushed into previous non-paypoint operations, which may be listed on a routing but are not used for reporting due to process limitations or a condensed time frame that does not require a real-time status update of each individual step.
p chart- An attribute control chart showing the fraction or percent of nonconforming data out of a given population.
pegging- Tracing the source of requirements in a materials plan, caused by dependent demand from an upper-level item, independent demand from a customer or interplant order, or to replenish a desired inventory stock level.
percent complete- The estimated or measured completion status of a process or project used to analyze the probability of meeting a projected date, or in initiating a contracted progress payment.
period cost- A cost related to the passage of time rather than product volumes, which may include depreciation, rent, property taxes or insurance.
period order quantity (POQ)- A lot size technique that orders to cover requirements for a variable number of periods based on order and holding costs, as opposed to a fixed period quantity that uses a standard number of periods.
perpetual inventory- The book inventory calculated as a result of all issue, receipt and adjustment transactions, as opposed to verification by physical count.
phantom- An item with an identifying product number that is not normally built and then stocked, but is immediately used in the next stage of production.
MRP processing logic will blow through a phantom down to the next level (and not generate planned orders for the phantom) but will net against its on-hand inventory if it does occasionally exist. A phantom bill of material is sometimes used to ease maintenance when a set of parts consumed in production has identical usage across many bills of material.
physical inventory- The verification of on-hand inventory quantities by taking an actual count. Often refers to the annual or quarterly process of counting all items, rather than the physical verification of selected groups of parts on a continuing basis (a cycle count).
pick list- A list of all components and materials required to fill a specific production, sales or interplant order. It often specifies the warehouse locations to pick from, and sometimes consolidates requirements from more than one order.
pick list release- The process of authorizing the pick of material for a given order, generating the paperwork and releasing to the picking department. Many variations exist in which the pick slip may be manually selected for a given order, is automatically generated a set number of days before the requirement, or is held until the calculated available inventory equals the requirement. Order processing systems often have controls that flag or stop changes to orders when the pick slip has already been released.
pick to clear- A warehouse order picking scheme that selects the item locations with the smallest quantities first.
pick to light- A warehouse order picking scheme that uses LED readouts for each inventory location that display the locations and quantities to be picked based on data from the warehouse management
or ERP system.
piece part- A discrete component item such as nuts, bolts or screws used in an upper-level assembly.
piece rate- Payment for production based on the number of units processed, rather than the number of hours used.
pilot- A small test run of a system or production process to verify its acceptance and capabilities before going full-scale.
pipeline- The backlog of unfilled orders, or of material ready to be or already being processed.
Plackett-Burman design- A screening technique sometimes used to examine the effects of several variables in one experiment and avoid multiple runs of the same basic test.
plan-do-check-action (PDCA)- A four step quality improvement cycle, based on a process described by Walter Shewhart, that involves continuous improvement based on analysis, design, execution and evaluation. Sometimes referred to as plan/do/study/act, it emphasizes the constant attention and reaction to factors that affect quality.
planned capacity- The capacity used in evaluating requirements for a given material planning period, which may differ from demonstrated capacity
due to temporary additions or downtime for scheduled maintenance, etc.
planned order- A suggested production, purchase or replenishment order generated by an
MRP or other planning system to meet a projected shortage against desired safety stock levels. The shortage date becomes the due date, the release date is backward scheduled based on lead time, and the quantity is based on the specified lot size. Planned orders for upper level items create requirements for lower level components, and MRP generations delete existing planned orders and regenerate new ones based on changes in requirements. Planned orders must be firmed or accepted before releasing to production or to a vendor.
planned order receipt- A future projected receipt based on the generation of a planned order that has not yet been firmed into a scheduled receipt.
planned order release- The date required to firm, or release, a planned order based on the specified lead time until the planned receipt date. Many systems allow the selection and review of planned orders based on specifying a release date time frame.
planner bill- A bill of material constructed to arrange items within a given family or group that specifies the percent of each in terms of usage or sales. Often used to explode forecasts from a family level to individual items.
planning horizon- The length of time into the future planning systems generate requirements and messages. The horizon should be at least as far out as the single longest cumulative lead time for any item in the system.
planning system- The functions and processes that review requirements and defined parameters to suggest new operating, material and capacity plans and changes to existing plans, but are not used for the activities that carry out (execute) those plans.
point of sale (POS)- The simultaneous recording of a customer sale and its effect on inventory levels, typically done in a retail environment using automatic data collection systems. Real-time point of sales data is sometimes used to automatically trigger replenishment orders as required, and can be used in sales analysis to review end-customer rather than distributor sales patterns.
point of use- Stocking inventory in a production facility or logistics network near the consuming point, rather than in a central location and moving when required.
point-to-multipoint- A communications, logistics or other network in which data travels in a one-way direction from a central point to multiple remote sites.
point-to-point- A communications or network system in which two connected entities pass data only to each other, and the data travels in both directions.
poka yoke: The Japanese term for failsafe.
portal: A personalized web site or service that offers a broad array of resources and services, such as e-mail, forums, search engines, and on-line shopping malls. The first web portals were online services that provided access to the Web, but by now most of the traditional search engines have transformed themselves into web portals to attract and keep a larger audience.
positive float- The period of time the start of a project task can be delayed without delaying the entire project. Project tasks that have positive float are not included on the critical path.
post- (v) To update a file or database through acceptance of entered data.
post deduct- syn: backflush
post-implementation audit- A review process that takes place after the installation of a new system to determine status, level of user satisfaction, accomplishment of stated goals and further action items required. It is usually timed to allow the new system to operate for a given period, such as a quarter, to concentrate on ongoing issues rather than those generated and resolved at cutover time.
potency- The concentration of an
active ingredient, expressed as a percentage of a batch or as a multiple of the standard or usual potency.
pre-deduct- An inventory relief system in which the components of a parent are deducted before they are physically picked or used, based on the explosion of the parent bill of material. It often uses the parent schedule date, as opposed to the actual reporting of parent production as done in a post-deduct system.
predefined query- A report writer or other query constructed at a previous time on an ad hoc basis and saved for later use.
predecessor- A routing operation or project task that must be partially or completely finished before a later task can begin.
predictive- A rule or measurement system that projects a future status before it occurs, based on predefined trends, warning signals or the use of a knowledge base that incorporates past behavior.
premium freight- Additional charges paid to a transportation provider to expedite shipments in order to meet a required date. Often used as a partial measure of on-time shipment performance.
prerequisite tree- A logic tree used in the
theory of constraints that identifies and time phases obstacles associated with the intermediate objectives that must be accomplished to achieve an overall goal.
present value- The estimated current value of a future receipt or payment, as calculated by the assumed interest rate between the current date and the date the future transaction will occur.
preventive maintenance- Activities done to insure the operating availability of a production resource and its ability to meet process specifications. They are done on a pre-scheduled basis, or based on the identification by a monitoring system of conditions that may cause future breakdowns.
pricing- The manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others. Automated systems require more setup and maintenance but may prevent pricing errors.
primary location- The default stock location used for receipts and picks of a given item, which may be supplemented by other locations if full or overstocked.
primary operation- A routing operation used unless an alternate is selected when opening production orders, and the normal basis for
MRP processing, capacity planning and standard cost estimation.
prioritization- The rules used to arrange jobs or orders in queue, such as FIFO, LIFO, critical ratio, value, customer, combination with similar jobs, etc.
probabilistic model- A model that assigns a likelihood to events or data within a population, as expressed by a ranked numerical value or an estimate of best case, worst case or most likely.
problem solving tools- Charts, diagrams and graphical displays that help define a problem and identify and categorize alternative solutions.
process- 1) v. To transform an input or set of inputs into a form with different characteristics, such as value, physical attributes, etc. 2) n. The environment, methods and resources used for a specific task or activity
process costing- A system that accumulates all costs for the production of similar items in a given batch, lot or time frame and creates an average unit cost based on the volume or units produced. Costs are tracked only for the entire batch, and not pegged to individual units.
process manufacturing- A manufacturing environment often characterized by a batch or continuous transformation of a gas, liquid or powder, low product complexity and manufacturing variations, fixed or dedicated facilities, a flat bill of material and relatively few transactions.
process sheet- A set of manufacturing instructions for a specific batch, lot or run that describe the operating parameters and settings for the equipment and facilities used, and any associated tooling or supplies.
process time- The elements of lead time, such as setup and run, in which a product is undergoing transformation, and not waiting or being moved.
process view- A diagram or flow chart that graphically represents the activities, resources and timing of a given process.
product acceptance- The verification that a given purchased or manufactured item meets specifications and is usable for its intended purpose.
product data management (PDM)- An expanded view of product definition functions that include a bill of material and routing database, current and historical engineering data and specifications and engineering change order history.
product code- Synonymous with part number, although sometimes used to represent only finished items.
product costs- Costs associated with the volume or number of units produced as opposed to the passage of time.
product definition- The description of the materials, processes and resources used in the production of an item, as contained in the bill of material, routing and work center records.
product family- A set of items considered as a related group in forecasting, capacity planning or other functions.
production activity control (PAC)- The activities related to scheduling, releasing and tracking production orders and schedules, and reporting the materials and resources used and the results of the production process.
production database- The set of records and files that provide the data necessary to schedule and report production, such as the bill of material, routing, work center, production calendar and other associated files.
production line- A linked set of manufacturing equipment or work stations that sequentially process a standard group of products or product families; most often used in a high-volume, repetitive manufacturing environment.
production material- Components and material directly used in the manufacturing process, and not for support or supply purposes.
production order- An order that authorizes manufacture of a specific quantity of an item or group of items, contains release and due dates, and documents requirements for the materials and resources used. It is assigned a separate number or identifier used in reporting material and labor transactions.
production planning- The cross-functional process of devising an aggregate, family-level plan for a month or quarter based on management targets for production, sales and inventory levels. It meets operating requirements for fulfilling basic business profitability and market goals, and provides the overall desired framework in developing the master production schedule and in evaluating capacity and resource requirements.
production schedule- A prioritized report of released production orders for a manufacturing facility or specific department.
productivity- An overall measure based on a quantity of output generated by a given quantity of input. Increased output as a result of the same amount of input such as labor hours) indicates more efficient use of a given set of resources due to process improvements or other achievements.
product life cycle- The processes, costs and revenues associated with a product from its initial creation to its abandonment, and often categorized by the stages of introduction, growth, maturity and decline. Identifying the product life cycle stage is a key factor in the determination of facility and support investment, marketing efforts, and required reporting measurements and controls.
product mix- The number of individual products produced or sold by an organization. The mix is defined by the industry and manufacturing environment, and management strategies that position the company as a specialty, niche or broad-based supplier of goods and services. Instances where the product mix varies widely from period to period often requires more investment in facilities and inventory, and may result in lower levels of customer service.
product rationalization- The process of justifying continued production or sales of a given item, based on a variety of factors such as its usage in single or multiple parents, use of dedicated production facilities, margin, number of customers, complement to other products, life cycle stage and others. It requires the capability to prioritize intangibles and to identify true cost drivers.
product structure- syn:
bill of material.
professional services automation (PSA)- Systems and software that support organizations or departments that engage in consulting, legal or other skill-based services by providing timesheet, billing, project status, knowledge base and other associated functions.
profit- The amount earned from an investment or operation after expenses are deducted. Gross profit, or gross income, refers to pre-tax net sales less cost of sales. Net profit, also includes the deduction of interest, taxes, depreciation and other expenses not associated with the cost of sales.
profit center- A organizational unit or department designated as a separate entity for purposes of revenue generation and cost collection, with decision- making capabilities to affect both processes.
program- An ongoing, long term effort that often includes multiple projects and significant budgeted expenditures.
program evaluation and review technique (PERT)- A project management system that determines the project finish date by estimating best (shortest), worst (longest) and most likely duration times for activities on the critical path.
programmable logic controller (PLC)- A device using programmed, custom instructions to provide automated monitoring and control functions by evaluating a set of inputs. Used to automate complex functions in machining, packaging, materials handling or other applications.
programmed production- The use of software programs to control production and support equipment such as CNC machines or robots.
progress payment- The payment of a portion of a total invoice or estimated cost based on the accomplishment of milestones, cost recovery agreement, or other contractual method.
project- A related set of activities and milestones with a preset goal and timeframe that is designed as a specific event and not an ongoing process.
project calendar- The definition of working and non-working days available for project tasks and activities.
project costing- The identification and reporting of all costs generated by a single project. All production orders, purchase orders and inventoried items are separated and pegged to the project in order to provide a total actual cost. A method often used in capital equipment manufacturing and systems integration or professional services projects.
projected balance- A future estimated inventory balance calculated by taking the current on-hand inventory, adding scheduled receipts and subtracting requirements or allocations. In planning systems a projected balance is compared to the order point or safety stock level to determine the need to reorder.
projected life- The estimated useful period of a resource or system, based on time, number of cycles, units processed, or other factors.
project management- The methods and disciplines used to define goals, plan and monitor tasks and resources, identify and resolve issues, and control costs and budgets for a specific project.
project team- The dedicated or part-time resources assigned to a project, which include the project leader, functional team leaders, functional team members, technical and consulting support. Ad hoc team members are brought in on a temporary basis to solve specific issues.
promise date- The shipment date committed to by a vendor. In some industries and contracts, the promise date is the date of delivery at the customer site.
promotion- A set of marketing and sales activities attached to a specific advertisement, campaign or trade show that offers a discount or other incentive based on a time frame or use of a designated code. Sales revenue and discounts generated from a given promotion are tracked to measure their effectiveness.
prospect- An identified potential consumer of a company's goods or services, often tracked in
CRM, SFA or contact management systems.
pseudo item: syn: phantom
.
pull system- A system where the production or movement of inventory items is initiated as required by the using department or location, or to replace items removed from an authorization queue. Production and inventory moves are not done based on a predetermined schedule, but only when consumed or signaled by the point of usage.
purchase order- The contractual agreement with a supplier of goods or services that specifies payment terms, delivery dates, item identification, quantities, freight terms and all other obligations and conditions. The order may specify multiple items and delivery dates, but is always generated for a single vendor.
purchase price variance (PPV)- The variance created by the actual price paid to a vendor for material as compared to the standard cost, sometimes separated into the variance created by the specified purchase order price vs. the standard, and the actual vendor invoice cost vs. the specified purchase order price.
purchase to order (PTO)- The method used to respond to demand in which an item is purchased only when required by a customer order that specifies that item, and not for processing or assembling into a different item number.
purchase-to-pay cycle- The total elapsed time between the creation and acceptance of a purchase order, and payment for the items or services.
purchase to stock (PTS)- The demand response method where an end item or service part required as is for an expected customer order is purchased and stocked against a forecast. The forecast represents independent customer or interplant demand, and not usage in an upper level item.
purchasing- The functions, processes and department that source material and services, negotiates terms and availability agreements, responds to requests for material by user departments and communicates order status and actual or potential supply disruptions.
purchasing lead time- The total time required to place and receive purchased items, which includes internal review and placement time (order release), vendor transportation time, and the dock to stock activities to receive and store.
push system- A system where the production and movement of inventory items is determined by a preexisting schedule that authorizes a material issue or transfer, or the start of a production operation. The using department or location receives material when determined by the feeder location and not based on their own generation of a replenishment signal.
putaway- The activities related to the receipt of material, determination of its storage or other destination, movement to that location and the stocking and physical arrangement as required.