| BOM | Bill of Materials. A list of parts and operations required to produce a product. |
|---|---|
| SFDC | Shop floor data capture. Real time capture of operation times from production operators. |
| Sales order (SO) | A contract with your customer to provide items at a set price and delivery date. |
| Demand Quantity | The amount of items (parts) required by a sales order or stock replenishment. |
| Works Order (WO) | An instruction for production to manufacture a quantity of parts, from a bill of materials, by a given date. |
| UOM (Unit of Measure) | Unit of measure eg. each, mm, kg, ltr, sets etc.. |
| Lot | A certain amount of a part, such as a “set of”, “box of”, “length of”. For example, "Box of 100" could be the unit of measure for a box of screws, which is sold for a price per 100, rather than selling 100 parts with an individual unit price. |
| Gross Margin | The margin applied to direct costs of parts and labour to determine selling price. |
| Direct Costs | The total cost of production including parts and labour in a bill of materials. |
| Set-up Time | For an operation this is how long it takes to set up the machine or process, it is only required once per run. |
| Run Time | This is the amount of time required to run one item through an operation, this is multiplied by the demand quantity to calculate total run time of each operation. |
| Capacity | The amount of time available within a certain time frame for a workcentre or employee to process operations. For example, 34 hours a week allowing for employee breaks. |
| Allocated Stock | When a part is marked as “in production” it is allocated to an order. This means some of the current stock has been reserved against the works order. |
| Free Stock | The difference between the current stock and the allocated stock is the free stock - the number of parts in stock that are available to be used. |
| MRP (Material Requirements Planning) | Material Resource planning (MRP) is a system to determine what materials are needed and when. It is used to optimise the quantities and scheduling of deliveries of raw materials or out-sourced parts. |
| Stock Transactions | A stock transaction is created when parts are added or removed from inventory. It can be both negative and positive (removing or adding stock). The stock take function in Fraction ERP will reset the current stock quantity. |
| Work in Progress (WIP) | The WIP value is a calculation at any point in time to determine the current value of orders that are in progress in production but have not yet been invoiced to the clients. This value is required normally for month end financial reporting. |
| Resource | A resource is a workcentre or employee that has a defined amount of capacity in order to perform a process or operation within production. It can be a single or group of workcentres or employees and is used for scheduling purposes. |
| Workcentre | A machine that is used in production to perform an operation. It can be a group of machines or equipment that has a defined available capacity. |
| Operator | An employee performing production operations. It can be defined as a single or group of employees that has a defined capacity availability. |