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BUS 301S Final Exam
Terms in this set (62)
the maximum amount that something can contain or accomplish.
what our customers want or what we expect to sell.
contains the forecasted sales and planned independent requirements which are transferred to the detailed planning functions at each plant.
something that is dependent on something else.
is a demand which is dependent on another material.
includes planning for all planning relevant materials at all the levels of the BOMs.
Exploding the BOM
that for each finished good that we have calculated a shortage, MRP opens the bill of materials.
used to create baselines for measurements of what happened previously.
what the customer orders.
is a demand which is not based on the demand for another item.
-strategy results in a company forecasting sales, producing stock, and placing it in inventory.
-is used to smooth production. It is also used for materials that have little variation, meaning that the customer does not have many options from which to choose.
Moving average price (MAP)
Each material listed in the BOM has a cost recorded in the material master record.
MRP (material resources planning)
is to monitor stocks and in particular create procurement proposals for purchasing and production proposals (planned orders, purchase requisitions or schedule lines). It creates production proposals based on what it has calculated as a material shortage.
Planned Independent Requirements (PIR)
represent requirements generated by high-level planning and transferred to detailed planning.
is the strategy an organization executes to balance supply (what we have and what we produce) with demand (what our customers want or what we expect to sell). It consists of all master data, system configuration, and transactions that are needed to complete the planning process.
a group of products that have similar planning characteristics.
In order to help isolate a company from sudden spikes in sales or interruptions in the supply chain many companies buy more than what they need.
Sales and Operations Plan (SOP)
will provide the sales forecasts that it calculates and these can be taken into consideration to revise plans.
what we have and what we produce.
has a set of standard processes as do the accounting functions that are integrated into the P2P process. The process is comprised of people, process, and technology to supply the company with the materials that are required for successful business execution.
is an intermediary clearing account in SAP for goods and invoices in transit (received but not yet billed for).
The requisition for materials could be satisfied by sources within our company. It is possible that a plant within the company could represent a potential source of supply for the material needed.
Incoming invoices are referenced against a purchase order to look for any inconsistencies their content, prices, and billing. When the invoice is posted, the invoice data is saved in the system, and a document number is issued.
is a part of the Logistics module and helps to manage the procurement activity of an organization. Material Management processes ensure that there is never a shortage of materials or any gaps in the supply chain process of the organization. These processes include the acquisition of goods from purchase requisition through final payment to the vendor for goods and services including the goods movement into inventory.MM speeds up the procurement and material management activities making the business run smoother with complete time and cost efficiency. It deals with managing the material (products and or services) resources of an organization with the aim of accelerating productivity and reducing costs.
are the rules defined by configuration how what needs to happen in specific circumstances.
to-Pay- is the first of the three major business process (make -buy -sell) to be fully explored in this course. It is called this because it starts with procurement needs and ends with payment, covering all steps between.
is the document to fulfill the need. The PO is the legal agreement between Pen Inc. and its vendor. It includes the vendor, price, materials needed, quantity of each material, terms, and other pertinent information.
is an internal document requesting the purchasing department to order a specific good or service that is required for a specified time. This is an "ask" and can from virtually any department in the company that to buy something.
A buyer or group of buyers responsible for certain purchasing activities. Vendors work with buyers in the purchasing group based on the terms and conditions negotiated in the purchasing organization.
is the unit responsible for procuring services and materials. It negotiates terms and conditions of purchase with vendors for one or more plants or company codes. It is legally responsible for completing purchasing contracts.
Three way match-
allows the system looks for discrepancies between the purchase order, goods receipt, and the invoice.
Vendor master record
contains all the necessary information needed to do business with an external supplier. It is identified by a unique vendor number, is maintained for each vendor. The master records contain data such as name, address, and payment terms.
the productive output of a cost center. More specifically, it is how we measure or monetize activities (output).
what is used or consumed in the manufacturing process.
records three things. The yield or an actual number of units produced are verified. The actual materials consumed (including scrap, rework, and waste) in the process and the actual effort whether labor, machine or other activity type multiplied by the time taken. The time (labor, machine, etc.) submitted for the work completed on the production order is applied to the production order costs object from the production cost center assigned to the work centers.
is the actual physical manufacturing of the product.
is the process of raw material withdrawal from stock to the production order.
is the acceptance of the confirmed quantity of output (newly created finished goods) from the production order into finished goods inventory (stock).
is an enterprise-level, scalable, manufacturing business solution that enables manufacturers to manage and control manufacturing and shop floor operations. It provides a multi-faceted set of features that integrates business systems to the shop floor, allowing for complete component and material-level visibility for single and global installations. It produces products based on the method of production that suits the organization.
of the production order are the planned labor and planned material amounts and costs from the BOM and routing. These are "best guess" numbers. As we know, however, life happens, and things don't always go as planned. We will rarely meet exactly our plans. Production is the same way. The planned costs calculated upon creation of the planned order are the basis for comparison and not accounted.
also known as a production proposal. As you learned in PP, the output of MRP is planned orders. Before the planned order can be converted, it is analyzed to determine what is needed for it be executed. The production manager looks at the current production schedule and the planned order proposed scheduling dates to decide how the planned order fits into the overall production schedule.
is planned order that has been converted. The conversion of the planned order to a production order is the trigger to start manufacturing based on the specifics of that individual order. When the planned order is converted into a production order, SAP assigns a unique identifier (number) to the production order. It creates a special temporary cost object and assigns the production order number to that cost object
is to receive a planned order. Before the planned order can be converted, it is analyzed to determine what is needed for it be executed.
Schedule and release
is determining the dates and when the order should be released so manufacturing can begin. The scheduling step calculates the production dates and capacity requirements for all operations within an order. By using the calculated capacities and constraints, the planned order is scheduled.
is simply the balancing of planned costs and actual costs assigning a value to the lower of the two sides, so the order is in balance.
which are the rules for how costs will be settled for the production order upon completion
The production order creation has planned costs built into it. The SAP systems used the BOM, routing and product costing functions to provide the "budget" for the production order.
is how far the production order is in dollars from the planned amount.
determines the material availability for the customer's requested delivery date.
Availability to promise (ATP)
the date we can promise the material will be delivered if the date requested by the customer is not possible.
Condition master record
to be dependent on various data. The basic condition master record for the price is created at the combined organizational level of a sales organization and distribution channel.
Customer master record
contains data that controls how business transactions are recorded and processed by the system. Each customer has a customer number assigned, and the customer master record contains data such as name, address, and payment terms.
material information record- is an approach that allows the seller (Pen Inc.) to make special notes and instructions in the system for a customer as it relates to a specific material. This is sometimes called a cross-reference.
a sales organization uses to sell products/services from a certain division.
is simply used to group materials (products) and services, and a division represents a division of our goods and services.
allows you to find the status of an order at any point in time.
process includes the goods movement, shipping, and logistics functions of order fulfillment.
Post goods issue
step represents on the selling side when ownership is transferred to the customer. It is the point in time that indicates the legal change in ownership. As the title of the goods change from the seller to buyer, a reduction in the seller's inventory takes place resulting in the integration of sales and distribution with material management, production planning, financial accounting, and controlling.
is the unique combination of the sales organization, distribution channel, and division. It defines the distribution channel a sales organization uses to sell products/services from a certain division.
is the highest summation level for Sales and Distribution. This includes all the items of an order, an outbound delivery or a billing document belonging to a sales organization
provides a complete sales management solution for a broad range of industries. It is a part of the logistics module that supports customers, starting from inquiries, quotations, and sales orders all the way to customer billing. It allows companies to input their customer sales price, check for open orders, forecast sales and much more.
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