THE ROMPETROL GROUP CORPORATE

CENTER

BUSINESS BLUEPRINT

GLOSSARY

PRODUCTION PLANNING

Author Document Location (repository/path/name)

Kuiza Matei SP

Version Status Date (YYYY-MM-DD) Document Classification

0.1 Draft 2011-09-02 Confidential

DOCUMENT CHANGE CONTROL

Version Description Created by

Created on

Revised by

Revised on

Approved by

Approved on

0.1 PP-PI Glossary Luiza Matei Catalin Dumitrache

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TABLE OF CONTENT

1. PURPOSE OF THIS DOCUMENT .......................................................................................................... 6

2. GLOSSARY ............................................................................................................................................ 6

2.1 ALLOCATION STRUCTURE .....................................................................................................................................................6

2.2 ALTERNATIVE BOM ..............................................................................................................................................................6

2.3 ALTERNATIVE BOM ITEM ......................................................................................................................................................6

2.4 APPORTIONEMENT STRUCTURE ...........................................................................................................................................6

2.5 ASSEMBLY.............................................................................................................................................................................6

2.6 ASSEMBLY SCRAP .................................................................................................................................................................6

2.7 AVAILABILITY CALCULATION ..................................................................................................................................................7

2.8 AVAILABILITY CHECK .............................................................................................................................................................7

2.9 BACKFLUSH ...........................................................................................................................................................................7

2.10 BACKWARD SCHEDULING ......................................................................................................................................................7

2.11 BASE QUANTITY ....................................................................................................................................................................7

2.12 BASE UNIT OF MEASURE .......................................................................................................................................................7

2.13 BASIC DATE ...........................................................................................................................................................................7

2.14 BATCH ...................................................................................................................................................................................7

2.15 BATCH MASTER RECORD ......................................................................................................................................................8

2.16 BATCH RECORD ....................................................................................................................................................................8

2.17 BATCH STOCK .......................................................................................................................................................................8

2.18 BILL OF MATERIAL .................................................................................................................................................................8

2.19 BOM APPLICATION ...............................................................................................................................................................8

2.20 BOM CATEGORY ..................................................................................................................................................................8

2.21 BOM COMPONENT ................................................................................................................................................................8

2.22 BOM EXPOSION ....................................................................................................................................................................8

2.23 BOM HEADER .......................................................................................................................................................................8

2.24 BOM ITEM .............................................................................................................................................................................9

2.25 BOM STATUS ........................................................................................................................................................................9

2.26 BOM USAGE .........................................................................................................................................................................9

2.27 BY-PRODUCT ........................................................................................................................................................................9

2.28 CAPACITY ..............................................................................................................................................................................9

2.29 CAPACITY CATEGORY ...........................................................................................................................................................9

2.30 CAPACITY LOAD ....................................................................................................................................................................9

2.31 CAPACITY PLANNER GROUP .................................................................................................................................................9

2.32 CAPACITY REQUIREMENTS ...................................................................................................................................................9

2.33 CAPACITY REQUIREMENTS PLANNING ..................................................................................................................................9

2.34 CHANGE MASTER RECORD .................................................................................................................................................10

2.35 CHANGE NUMBER ...............................................................................................................................................................10

2.36 CHARACTERISTIC ................................................................................................................................................................10

2.37 CHECK CONTROL ................................................................................................................................................................10

2.38 CHECKING GROUP ..............................................................................................................................................................10

2.39 CHECKING RULE..................................................................................................................................................................10

2.40 CLASS .................................................................................................................................................................................10

2.41 CLASSIFICATION..................................................................................................................................................................10

2.42 CO-PRODUCT ......................................................................................................................................................................10

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2.43 COMPANY CODE..................................................................................................................................................................11

2.44 COMPONENT .......................................................................................................................................................................11

2.45 COMPONENT QUANTITY ......................................................................................................................................................11

2.46 COMPONENT SCRAP ...........................................................................................................................................................11

2.47 COMPONENT UNIT OF MEASURE.........................................................................................................................................11

2.48 CONFIRMATION ...................................................................................................................................................................11

2.49 CONTROL KEY .....................................................................................................................................................................11

2.50 CONTROL RECIPE ...............................................................................................................................................................12

2.51 CONTROL RECIPE DESTINATION .........................................................................................................................................12

2.52 CONTROLLING AREA ...........................................................................................................................................................12

2.53 CONTROLLING LEVEL ..........................................................................................................................................................12

2.54 COST CENTER .....................................................................................................................................................................12

2.55 COST COMPONENT .............................................................................................................................................................12

2.56 COST COMPONENT SPLIT ....................................................................................................................................................12

2.57 COST COMPONENT STRUCTURE .........................................................................................................................................12

2.58 COST ELEMENT ...................................................................................................................................................................13

2.59 COST ESTIMATE WITH QUANTITY STRUCTURE ....................................................................................................................13

2.60 COST OF GOOD MANUFACTURED .......................................................................................................................................13

2.61 CUSTOMIZING .....................................................................................................................................................................13

2.62 DELIVERY ............................................................................................................................................................................13

2.63 DEMAND PLANNING .............................................................................................................................................................13

2.64 DEPENDENT REQUIREMENT ................................................................................................................................................13

2.65 DOCUMENT DATE ................................................................................................................................................................13

2.66 DOCUMENT ENTRY ..............................................................................................................................................................14

2.67 DOCUMENT NUMBER ...........................................................................................................................................................14

2.68 EARLIEST FINISH DATE ........................................................................................................................................................14

2.69 EARLIEST STARTING DATE ..................................................................................................................................................14

2.70 EQUIVALENCE NUMBER ......................................................................................................................................................14

2.71 EXPLODED BILL OF MATERIAL .............................................................................................................................................14

2.72 EXTERNAL PROCUREMENT .................................................................................................................................................14

2.73 FINISHED PRODUCT ............................................................................................................................................................14

2.74 FIXED COSTS.......................................................................................................................................................................14

2.75 FIXED LOT SIZE ...................................................................................................................................................................14

2.76 FLOAT .................................................................................................................................................................................15

2.77 FLOAT AFTER PRODUCTION ................................................................................................................................................15

2.78 FLOAT BEFORE PRODUCTION .............................................................................................................................................15

2.79 FORWARD SCHEDULING ......................................................................................................................................................15

2.80 GOODS ISSUE .....................................................................................................................................................................15

2.81 GOODS MOVEMENT ............................................................................................................................................................15

2.82 GOODS RECEIPT .................................................................................................................................................................15

2.83 IN-HOUSE PRODUCTION ......................................................................................................................................................15

2.84 IN-HOUSE PRODUCTION TIME .............................................................................................................................................16

2.85 INDIVIDUAL CAPACITY .........................................................................................................................................................16

2.86 INGREDIENT ........................................................................................................................................................................16

2.87 INPUT QUANTITY .................................................................................................................................................................16

2.88 INSPECTION STOCK .............................................................................................................................................................16

2.89 INVENTORY .........................................................................................................................................................................16

2.90 ISSUE STORAGE LOCATION .................................................................................................................................................16

2.91 ITEM CATEGORY ..................................................................................................................................................................16

2.92 JOINT PRODUCTION ............................................................................................................................................................17

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2.93 JOINT PRODUCT ORDER ......................................................................................................................................................17

2.94 LATEST FINISH DATE ...........................................................................................................................................................17

2.95 LATEST START DATE ...........................................................................................................................................................17

2.96 LEAD TIME ...........................................................................................................................................................................17

2.97 LOT ......................................................................................................................................................................................17

2.98 LOT SIZE .............................................................................................................................................................................17

2.99 LOT SIZING PROCEDURE .....................................................................................................................................................18

2.100 LOT SIZE CALCULATION ..................................................................................................................................................18

2.101 LOWER LEVEL BILL OF MATERIAL....................................................................................................................................18

2.102 MANUAL MRP ................................................................................................................................................................18

2.103 MANUFACTURE OF CO-PRODUCTS .................................................................................................................................18

2.104 MANUFACTURING BILL OF MATERIAL ..............................................................................................................................18

2.105 MANUFACTURING OREDER .............................................................................................................................................18

2.106 MASS DATA CHANGE ......................................................................................................................................................18

2.107 MASTER DATA .................................................................................................................................................................19

2.108 MASTER PRODUCTION SCHEDULING ..............................................................................................................................19

2.109 MATERIAL .......................................................................................................................................................................19

2.110 MATERIAL AVAILABILITY CHECK ......................................................................................................................................19

2.111 MATERIAL BOM .............................................................................................................................................................19

2.112 MATERIAL COMPONENT ..................................................................................................................................................19

2.113 MATERIAL GROUP ...........................................................................................................................................................19

2.114 MATERIAL MASTER .........................................................................................................................................................19

2.115 MATERIAL MASTER RECORD ...........................................................................................................................................20

2.116 MATERIAL NUMBER .........................................................................................................................................................20

2.117 MATERIAL QUANTITY CALCULATION ...............................................................................................................................20

2.118 MATERIAL RANGE OF COVERAGE ...................................................................................................................................20

2.119 MATERIAL REQUIREMENTS PLANNING ............................................................................................................................20

2.120 MATERIAL REQUIREMENTS PLANNING RUN ....................................................................................................................20

2.121 MATERIAL SHORTAGE .....................................................................................................................................................21

2.122 MATERIAL STAGING ........................................................................................................................................................21

2.123 MAXIMUM LOT SIZE .........................................................................................................................................................21

2.124 MAXIMUM STOCK LEVEL .................................................................................................................................................21

2.125 MINIMUM LOT SIZE ..........................................................................................................................................................21

2.126 MISSING QUANTITY .........................................................................................................................................................21

2.127 MOVING AVERAGE PRICE................................................................................................................................................21

2.128 MRP CONTROLLER ........................................................................................................................................................21

2.129 MRP ELEMENT ...............................................................................................................................................................22

2.130 MRP LIST .......................................................................................................................................................................22

2.131 MRP LOT SIZE ................................................................................................................................................................22

2.132 MRP PROCEDURE ..........................................................................................................................................................22

2.133 MRP PROFILE .................................................................................................................................................................22

2.134 MRP TYPE ......................................................................................................................................................................22

2.135 MULTILEVEL BOM ..........................................................................................................................................................22

2.136 NET CHANGE PLANNING .................................................................................................................................................23

2.137 NET REQUIREMENT CALCULATION .................................................................................................................................23

2.138 NUMBER RANGE .............................................................................................................................................................23

2.139 OPERATING TIME ............................................................................................................................................................23

2.140 OPERATION.....................................................................................................................................................................23

2.141 OVERHEAD COSTS ..........................................................................................................................................................23

2.142 PERIOD LOT SIZE PROCEDURE .......................................................................................................................................23

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2.143 PERIOD SPLIT .................................................................................................................................................................24

2.144 PHASE .............................................................................................................................................................................24

2.145 PHYSICAL INVENTORY ....................................................................................................................................................24

2.146 PLANNED CAPACITY REQUIREMENTS .............................................................................................................................24

2.147 PLANNED COSTS.............................................................................................................................................................24

2.148 PLANNED CONSUMPTIONS..............................................................................................................................................24

2.149 PLANNED DELIVERY TIME ...............................................................................................................................................24

2.150 PLANNED INDEPENDENT REQUIREMENTS ......................................................................................................................24

2.151 PLANNED LOT SIZE .........................................................................................................................................................25

2.152 PLANNED ORDER ............................................................................................................................................................25

2.153 PLANNED ORDER QUANTITY ...........................................................................................................................................25

2.154 PLANNED PRODUCT COSTS ............................................................................................................................................25

2.155 PLANNED WITHDRAWAL ..................................................................................................................................................25

2.156 PLANNING CALENDAR .....................................................................................................................................................25

2.157 PLANNING HORIZON ........................................................................................................................................................25

2.158 PLANNING PLANT ............................................................................................................................................................26

2.159 PLANT .............................................................................................................................................................................26

2.160 PRIMARY RESOURCE ......................................................................................................................................................26

2.161 PROCESS ORDER ...........................................................................................................................................................26

2.162 PROCESS MESSAGE .......................................................................................................................................................26

2.163 PROCESSING TIME ..........................................................................................................................................................26

2.164 PROCUREMENT PROPOSAL ............................................................................................................................................26

2.165 PROCUREMENT TYPE .....................................................................................................................................................26

2.166 PRODUCTION COSTS ......................................................................................................................................................27

2.167 PRODUCTION END DATE .................................................................................................................................................27

2.168 PROFIT CENTER .............................................................................................................................................................27

2.169 RECIPE COUNTER ...........................................................................................................................................................27

2.170 RECIPE GROUP ...............................................................................................................................................................27

2.171 REFERENCE DATE ..........................................................................................................................................................27

2.172 REORDER POINT PLANNING ............................................................................................................................................27

2.173 REPETITIVE MANUFACTURING ........................................................................................................................................28

2.174 REPLENISHMENT LEAD TIME ...........................................................................................................................................28

2.175 RESOURCE .....................................................................................................................................................................28

2.176 SAFETY STOCK ...............................................................................................................................................................28

2.177 SCRAP ............................................................................................................................................................................28

2.178 SETTLEMENT ..................................................................................................................................................................28

2.179 STANDARD COST ............................................................................................................................................................28

2.180 STANDARD PRICE ...........................................................................................................................................................28

2.181 SECONDARY RESOURCE ................................................................................................................................................29

2.182 STORAGE LOCATION .......................................................................................................................................................29

2.183 TOTAL REPLENISHMENT LEAD TIME ................................................................................................................................29

2.184 WEEKLY LOT SIZE ...........................................................................................................................................................29

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1. Purpose of this document

This document states all and describes the terms used into the Business Blueprint Documentation.

2. Glossary

2.1 Allocation structure

Allocates the costs incurred on a sender (process order) by cost element or cost element group.

2.2 Alternative BOM

Used to identify one bill of material within a BOM group. One product can be represented by several (alternative) BOMs if, for example, different production processes are used for different lot size ranges. These alternative BOMs are grouped together in a multiple BOM.

2.3 Alternative BOM item

Item used as an alternative to one or more BOM items. MRP plans alternative material components according to usage probability. Alternative items are selected automatically according to: priority, strategy, usage probability.

2.4 Apportionement structure

Defines how the total cost of a material is apportioned to the individual coproducts.

2.5 Assembly

Group of components of a product which form a technically coherent whole in the production process. A product defined as an assembly can be used again as a component in another assembly.

2.6 Assembly scrap

Percentage of the quantity of an assembly that does not meet the required production quality. In material requirements planning (MRP), this percentage scrap is considered for all components contained in the assembly. The only components excluded from this calculation are those for which the net operation scrap indicator is set. The assembly scrap percentage is maintained in the material master from the MRP view.

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2.7 Availability calculation

The matching up of warehouse stocks, planned receipts and planned issues on one date by Material Requirements Planning. An order proposal is generated when a shortage occurs.

2.8 Availability check

Procedure that makes sure that there are enough components available for the planned/process orders in production planning and production control.

2.9 Backflush

Non-manual posting of an issue of components some time after their actual physical withdrawal for an order. The goods issue posting for backflushed components is carried out automatically at the time of order completion confirmation.

2.10 Backward scheduling

Type of scheduling in which the operations of an order are scheduled backwards starting from the order due date. The scheduled start and scheduled finish of the order are determined via this scheduling type.

2.11 Base quantity

In bills of material, the basis for the component quantity. In routings, the quantity to which the standard values apply.

2.12 Base unit of measure

Unit of measure in which the stock of a material is managed. The system converts all quantities entered in other units into the base unit of measure. In Inventory Management, the base unit is the same as the stockkeeping unit.

2.13 Basic date

The opening date, the planned start date and the planned finish date for procurement proposals. They are calculated in material requirements planning.

2.14 Batch

A quantity of a material produced during a given production run. The main characteristic of a batch is its homogeneity. A production lot can consist of one or more batches.

Batch classification - The activity of allocating a batch class to a batch as well as assigning values to the characteristics contained in this class.

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2.15 Batch master record

Record containing general data on a batch (for example, shelf life expiration date and date of last goods receipt).

2.16 Batch record

Record containing all quality-relevant planned and actual data on the production of a batch.

2.17 Batch stock

Total of all storage location stocks of a batch.

2.18 Bill of material

A complete, formally structured list of the components that make up a product or assembly. The list contains the object number of each component, together with the quantity and unit of measure. The components are known as BOM items.

2.19 BOM application

Procedure for automatically exploding the BOM for a specific section of a company (such as sales and distribution).

2.20 BOM category

Classification of bills of material enabling to represent different objects (such as materials or documents).

2.21 BOM component

Material item used in manufacturing process of the product mentioned in the BOM header.

2.22 BOM exposion

Function for determining all the components of a bill of material and listing them. During BOM exposion the system shows the structure of the product and the total quantity for each component. For multiple BOMs, it can be defined a procedure for automatically determining the correct alternative BOM for a given area of the company (BOM application).

2.23 BOM header

The part of a BOM containing data which is valid for the whole BOM: texts, quantity data, general data, administrative data.

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2.24 BOM item

Part of a bill of material containing information that is valid for the relevant component: item number, material number of component, quantity, unit of measure, text, effectivity period.

2.25 BOM status

It is used to control processing of a BOM in differnt application areas.

2.26 BOM usage

It allows to maintain BOMs for specific section of the company: production, engineering/design, sales.

2.27 By-product

Product that is manufactured in the same time as the main product. Costs incurred on process orders are not distributed acording to the quantity of by-products obtained.

2.28 Capacity

Ability of a work center to perform a specific task.

2.29 Capacity category

Description which classify a capacity at a work center.

2.30 Capacity load

It is determined from a comparison between capacity requirements (for a specific capacity category) and capacity available.

2.31 Capacity planner group

Key for a group of employees who are responsible for capacity planning.

2.32 Capacity requirements

It specifies how much capacity output is required for individual orders at a specific time.

2.33 Capacity requirements planning

An instrument used for calculating available and required capacities.

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2.34 Change master record

Data record which contains all the information required for managing a change. It contains descriptive data (such as reason for change) and data with control functions (such as valid-from date and indicators for object types).

2.35 Change number

Number used to uniquely identify a change master record.

2.36 Characteristic

Property for describing and distinguishing between objects, such as length, color, or weight.

2.37 Check control

Setting that determines the scope of check and the control for the availability check against stock and requirements.

2.38 Checking group

Criteria that groups together all the checking rules from all application areas for a material.

2.39 Checking rule

Applies to how the availability check is carried out. The checking rule, in conjunction with the checking group, determines the scope of the availability check for every business operation; that is, which stocks, receipts and issues are to be included in the availability check and whether the check is to be carried out with or without the replenishment lead time.

2.40 Class

A group of similar objects described by means of characteristics that they have in common.

2.41 Classification

Assignment of objects values to a class characteristics.

2.42 Co-product Product that is produced in addition to other products in the manufacturing process. The costs incurred on process order are distributed to the co-products through the apportionment structure mentioned in settlement rule.

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2.43 Company code The smallest organizational unit of Financial Accounting for which a complete self-contained set of accounts can be drawn up for purposes of external reporting. This includes recording of all relevant transactions and generating all supporting documents required for financial statements.

2.44 Component A material used as part of a bill of material by entering the material number.

2.45 Component quantity

The quantity of a component needed to produce the base quantity of a product or assembly.

2.46 Component scrap

The scrap that is expected to occur when a material is used in production, if the material is a component. Component scrap is used in material requirements planning to determine the input quantities of a component.

2.47 Component unit of measure

A unit for the component quantity in a BOM.

2.48 Confirmation A part of order monitoring which documents the processing status of operations and phases. The SAP System distinguishes between partial and final confirmations. A final confirmation is used to determine:

- at which resource the operation was carried out - who performed the operation - quantities of yield and scrap produced - size of the standard values required for the operation

2.49 Control key A key that specifies how an operation/phase is processed in functions such as orders, costing or capacity planning. The processing types managed by a control key for operations / phases:

- External processing - Completion confirmation - Printing - Scheduling - Costing

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2.50 Control recipe A recipe containing all process instructions for the execution of a process order by a process control system or a process operator. One control recipe is generated for each control recipe destination defined in the process order.

2.51 Control recipe destination Process operator to which a control recipe is transferred for processing.

2.52 Controlling area

An organizational unit within a company, used to represent a closed system for cost accounting purposes.

2.53 Controlling level A tool that, in Product Cost Controlling, enables you to determine the level at which you perform the following functions for a material:

- Calculate planned values - Collect actual values - Determine target values - Analyze costs

A material has a separate controlling level for each plant and process category. Through various characteristics, the controlling level determines the level of detail of the procurement alternatives. The standard setting of the controlling level is determined by the characteristics Material/Plant. For example, if the controlling level is Production, it can gain detail by means of the additional characteristic Production Version.

2.54 Cost center

An organizational unit within a controlling area that represents a defined location of cost incurrence.

2.55 Cost component

A grouping of cost elements that makes the costs of a material, an activity type, or a process transparent.

2.56 Cost component split

A breakdown of costs into units called cost components, which provide detailed cost information for accounting purposes. Cost component splits can be used to break down the cost of a material, process, or activity type.

2.57 Cost component structure

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The cost component structure groups cost elements into cost components to show the following information: - activity prices for an activity type - cost of a process - planned cost of a product

2.58 Cost element Classification of the organization's valuated consumption of production factors within a controlling area. Each cost element corresponds to a cost-relevant item in the chart of accounts.

2.59 Cost estimate with quantity structure A function for planning costs and setting prices for materials using the data from Production Planning.The quantity structure can be any of the following:

- BOM and routing (production by lot size) - BOM and rate routing (repetitive manufacturing) - Master recipe (process manufacturing)

2.60 Cost of good manufactured

Sum of the material and production costs incurred in the production of a material.

2.61 Customizing

Overall implementation procedure to set up one or more SAP systems at a customer site.

2.62 Delivery

Process of receiving, sending or transferring goods, whether inbound or outbound.

2.63 Demand planning

The process of providing accurate and measurable estimates of future demand.

2.64 Dependent requirement

The planned material requirements that are caused by the production of higher-level assemblies.

2.65 Document date

The date on which the original document (such as vendor invoice) was created.

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2.66 Document entry

The manual or automatic entry of a document into the SAP System.

2.67 Document number

A key that identifies each document in a company code in a specific fiscal year.

2.68 Earliest finish date

The earliest finish date of an operation determined by scheduling.

2.69 Earliest starting date

The earliest start date of an operation determined by scheduling.

2.70 Equivalence number

The quota of a single co-product used in the production process. Equivalence numbers are specified in the apportionment structure in the material master of the leading co-product.

2.71 Exploded bill of material

A list of the required components or materials in a given bill of material (BOM). An exploded BOM groups the components or materials together logically and calculates the overall demand for a given component based on the hierarchical demand indication in the costed BOM.

2.72 External procurement

The procurement of raw materials, operating supplies (MRO items), trading goods, and services from external suppliers for the organizational units of an enterprise that need such items or services.

2.73 Finished product

An object that is completely assembled and ready for sale.

2.74 Fixed costs The portion of the total cost that remains constant regardless of the operating rate and lot size. For example, setup costs are normally a fixed cost because they remain the same with different lot sizes.

2.75 Fixed lot size

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The criterion for lot-size calculation in the static lot-sizing procedure. The system creates a procurement proposal for the amount of this lot size for every shortage date in a planning run.

2.76 Float The period of time that lets you start or finish an order or operation at an earlier or later date without incurring a delay in scheduling.

2.77 Float after production

Nnumber of working days planned in scheduling as a safety buffer between the scheduled finish and basic finish date of an order.

2.78 Float before production

Number of working days between the order start date and the scheduled start date; used as a float in production scheduling.

2.79 Forward scheduling

A scheduling form in which the operations of an order are scheduled forward starting from the planned start date. Using this scheduling type, the scheduled start and the scheduled finish date of the order are calculated.

2.80 Goods issue

A reduction in warehouse stock due to a withdrawal of stock or the delivery of goods to a customer.

2.81 Goods movement

A physical or logical movement of materials leading to a change in stock levels or resulting in the consumption of the material.

2.82 Goods receipt A term from inventory management denoting a physical inward movement of goods or materials.

2.83 In-house production

The product is produced in plant.

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2.84 In-house production time

The time required to produce the material in plant. In-house production time can be maintained depending on the order quantity or independent of the order quantity. It is calculated by adding the lead times of all operations, the float before production, and the float after production.

2.85 Individual capacity

Capacities can be divided into individual capacities (for example, individual machines) for which it can entered available capacities, in order to achieve more detailed planning of resources and commitments.

2.86 Ingredient

Material that enters in a process. Ingredients are assigned to the bill of material of the corresponding product. In the material list of the recipe or order, they can be assigned to the operations or phases that require them for execution.

2.87 Input quantity The quantity of a raw material used during the production process to manufacture a finished product. In BOM reporting functions, the required quantity is the base quantity.

2.88 Inspection stock The quantity reserved for quality inspection purposes. Inspection stock is not released for use.

2.89 Inventory A detailed list of all objects in stock at a specific time, resulting from a physical inventory (stocktaking process).

2.90 Issue storage location A storage location from which components are withdrawn for production.

2.91 Item category An object that defines items in a BOM according to criteria, such as the object type of the component, for example, material master record or document info record. The item category controls the following: screen sequence, field selection, default values, material entry, inventory management, subitems. Examples of item categories are: stock item, non-stock item, and document item.

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2.92 Joint production Simultaneous production of multiple materials in a single production process. In contrast to by-products, joint products receive allocations of some of the production costs during WIP clearing. The settlement rule defining how the production costs are allocated can be configured individually for each production process, through production version.

2.93 Joint product order Manufacturing order with which co-products are manufactured.

2.94 Latest finish date The latest finish date of an operation determined by scheduling.

2.95 Latest start date The latest start date of an operation determined by scheduling.

2.96 Lead time The period, at operation level, between the earliest start and the latest finish of an operation and at order level the period between the order start date and the order finish date. The lead time of an operation is made up of queue time, execution time, and wait time. The lead time of an order is made up of execution times, interoperation times, and order floats before and after production. Lead time scheduling - a function that calculates production dates and creates capacity requirements. Lead time scheduling using the routing calculates in MRP the start and finish dates and times of the operations. Lead time scheduling using the time specified in material master calculates the production start and finish dates, but does not calculate capacity requirements.

2.97 Lot A quantity that is received to stock or produced in one production run, and that has the same production costs and specifications.

2.98 Lot size A quantity to produce or procure.

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2.99 Lot sizing procedure A procedure in material requirements planning used to calculate order and production quantities (lot sizes).

2.100 Lot size calculation During lot sizing, the fixed lot size is used in conjunction with all the defined rounding conditions and the minimum and maximum rounding algorithms to calculate a quantity to meet the target days' supply.

2.101 Lower level bill of material A list of the components of a finished or semi-finished product which is a part of another assembled finished product.

2.102 Manual MRP A procedure in material requirements planning where the MRP controller must create the order proposals manually.

2.103 Manufacture of co-products The production of several materials in one process. In contrast to by-products, some of the production costs are assigned to the joint product in the order settlement. The settlement rule, can be configured for each production process. Production costs are distributed according to the settlement rule.

2.104 Manufacturing bill of material Represents the structure of a product in a production and assembling sequence.

2.105 Manufacturing oreder A manufacturing order defines which work center or resource is used to manufacture a material and which material components are required. A manufacturing order can be a process order.

2.106 Mass data change Tool for changing fields of several master data records at once.

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2.107 Master data The information that remains the same over a long period of time. Master data contains information that is needed often and in the same form.

2.108 Master production scheduling Parts or products, in master production scheduling, that influence company profits or that take up critical resources are planned.

2.109 Material The goods that are the subject of business activity. The material can be traded, used in manufacture, consumed, or produced.

2.110 Material availability check A check that is carried out automatically to find out whether there are enough materials in stock to cover a proposed withdrawal.

2.111 Material BOM A bill of material created with reference to a material master. The BOM can contain items of different item categories such as stock items, non-stock items, document items, and text items.

2.112 Material component A material that does not have its own bill of material (BOM).

2.113 Material group A grouping of materials and services according to their characteristics.

2.114 Material master The total of all material master records. A company manages the data on all its materials in the material master.

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2.115 Material master record A data record containing all the basic information required to manage a material. This data is sorted according to various criteria including data of a descriptive nature (such as size, dimension and weight) and data with a control function (such as material type and industry sector). In addition to this data, which can be directly maintained by the user, it also contains data that is automatically updated by the system (such as stock levels).

2.116 Material number A number that uniquely identifies a material in the SAP system.

2.117 Material quantity calculation A combination of charge and yield calculations. The charge calculation determines how much of each material or ingredient is used in a process. The yield calculation determines the quantities of product yield obtained in a process. It must be taken into account mixing and yield ratios of materials and ingredients used in a process, and material characteristics when calculates material quantity.

2.118 Material range of coverage The period (expressed in a number of months, for example) for which a particular stock quantity of a material is expected to cover requirements. The material range of coverage is calculated on the basis of historical or forecast values.

2.119 Material requirements planning A term for procedures in materials planning that take into account and plan every future requirement during the creation of procurement proposals such as independent requirements, or dependent requirements.

2.120 Material requirements planning run The execution of materials planning for all materials or assemblies that have the necessary entries in the planning file. The planning run is divided into the following main worksteps:

- net requirement calculation - lot-size calculation - procurement element and type determination - scheduling

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2.121 Material shortage A shortage that occurs when the requirements quantity is greater than the receipt and stock quantity. The shortage quantity is calculated in material requirements planning by the net requirements calculation.

2.122 Material staging The temporary storage of materials between warehouse operations while awaiting more processing.

2.123 Maximum lot size A quantity that must not be exceeded during procurement.

2.124 Maximum stock level Maximum quantity that can be stored for a certain material. The maximum stock should help to prevent an excess storage supply and thus also prevent excessive capital tie-up or overload on the storage capacities. For reorder point planning, procurement proposals can be created for the material to fill up the stock to the maximum quantity.

2.125 Minimum lot size Minimum quantity that must be reached during procurement. The minimum lot size can be taken into account in lot-size calculation.

2.126 Missing quantity A quantity by which a requirement exceeds the available quantity.

2.127 Moving average price A price that changes in consequence of goods movements and the entry of invoices and is used to valuate a material. The moving average price is calculated by dividing the value of the material by the quantity of material in stock. It is automatically recalculated by the system after each goods movement or invoice entry.

2.128 MRP controller The person responsible for a group of materials in MRP in a plant or company. Material that takes part in material requirements planning must be assigned to an MRP controller.

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2.129 MRP element A term for all objects displayed as items in the MRP list or in the stock and requirements list. Such objects include planned orders, purchase orders, reservations, and sales orders.

2.130 MRP list A document providing an overview of the results of the material requirements planning (MRP) run.

2.131 MRP lot size A key that defines which lot-sizing procedure the system uses for calculating the quantity to procure in the MRP run.

2.132 MRP procedure A procedure that specifies how planning is performed for a material. MRP procedures are divided into two groups: MRP and consumption-based planning (reorder point). MRP is based on future requirements. Assembly and component requirements for finished products produced in-house are calculated by exploding the bill of materials. Consumption-based planning (reorder point) is based on historical data. Requirements are calculated using past consumption values.

2.133 MRP profile A collection of data required for updating the material master record for planning.

2.134 MRP type A key that controls the MRP procedure (MRP or reorder point) used for planning a material. It contains additional control parameters, for example, for using the forecast for the materials planning, or for firming procurement proposals.

2.135 Multilevel BOM A BOM reporting function that lists all assemblies and other components in a product.

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2.136 Net change planning Execution of material requirements planning (MRP) in a planning run in which only the materials that have had MRP-relevant changes made to them since the last planning run are rescheduled.

2.137 Net requirement calculation A check performed by the system to determine whether the requirements are covered by available warehouse stock and planned receipts from the purchasing department or from production. If the forecast requirements are not covered, the system generates a procurement proposal.

2.138 Number range A range of numbers that can be assigned to business objects (or their sub-objects) of the same type.

2.139 Operating time The effective time that a capacity, such as a machine, is available to work. Working time, break times, and rate of capacity utilization are all factors in the calculation.

2.140 Operation Independent part of a recipe executed on a processing unit. An operation is divided into phases.

2.141 Overhead costs The costs that cannot be traced directly to a particular allocation base (such as a product). These include costs that could conceivably be traced directly to cost objects or cost centers, but are allocated by means of overhead keys instead because it is not economically feasible to trace such costs (for example, the costs for screws and other small parts).

2.142 Period lot size procedure A procedure that groups requirement quantities from one or several periods to form a lot size. Costs incurred from storage, setup procedures, or purchasing operations are not taken into account. The number of periods that are grouped into a procurement proposal can be defined: daily, weekly, monthly.

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2.143 Period split A division of the time axis into periods, for example, days, weeks, or months.

2.144 Phase A division of an operation. Phases can be arranged in sequential or parallel order. Materials from material list could be assigned to phases. Phases have the same primary resource as the operation. At each phase could be assigned one or more secondary resources.

2.145 Physical inventory The recording of actual stock levels (quantities) of materials by counting, weighing, or measuring at a given storage location at a specific time.

2.146 Planned capacity requirements The overall capacity requirements generated by a work order or planned order.

2.147 Planned costs The costs anticipated for a particular process order.

2.148 Planned consumptions The difference between total consumption and unplanned consumption. Planned consumption is updated if goods are withdrawn from stock based on a reservation. Unplanned consumption is updated if goods are withdrawn without a reservation.

2.149 Planned delivery time The number of days required to procure the material through external procurement.

2.150 Planned independent requirements A planned requirement quantity for a finished product in a period of time. It is not based on sales orders.

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2.151 Planned lot size The lot-size value that the system uses as a default during costing. Non-proportional costs refer to this value.

2.152 Planned order A request created in the planning run for a plant to trigger the procurement of a plant material for a certain quantity for a specific date.

2.153 Planned order quantity The quantity of material to be produced that is planned with a specific order.

2.154 Planned product costs The costs of manufacturing a product that are calculated in product costing. They are costs derived from the BOM and master recipe.

2.155 Planned withdrawal The issue of a material with reference to a reservation. A planned withdrawal is performed based on a reservation list and, results in updating the total consumption (usage) statistics for the material.

2.156 Planning calendar The definition of flexible period lengths at plant level. In Production Planning, planning calendars can be used to define procurement dates for determining period lot sizes. In the stock and requirements list and in the MRP list, MRP elements can be grouped into period totals according to the specifications in the planning calendar.

2.157 Planning horizon The planning horizon is the period that is set for the "net change planning in the planning horizon." For this type of net change planning, only materials that change relevant to MRP in the period are planned in the planning run. The length of the planning horizon must include the following:

- period in which customer orders enter - delivery times - complete material processing time.

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2.158 Planning plant A plant for the planning material from which planned independent requirements come and that are used to calculate customer requirements for the assigned material.

2.159 Plant In logistics a plant is an organizational unit for dividing an enterprise according to production, procurement, maintenance, and materials planning. A place where materials are produced, or goods and services are provided.

2.160 Primary resource The processing unit or reaction vessel in which an operation is performed. It is committed for the duration of the operation. All phases of this operation have the same primary resource as the operation.

2.161 Process order Manufacturing order used in process industries.

2.162 Process message A structure used to send actual data on a process from process control to one or more destinations. The content of process messages is determined by the process message characteristics and the characteristic values assigned to them.

2.163 Processing time The time needed to process a material in an operation. The processing time is dependent on the order quantity, and does not contain a setup or teardown time. It is part of the execution time.

2.164 Procurement proposal Receipt element that is created during planning if shortages occur. Procurement proposals are saved in the system as planned orders, purchase requisitions, or scheduling agreement schedule lines.

2.165 Procurement type

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A classification indicating whether a material is produced internally, procured externally, or both.

2.166 Production costs The portion of the cost of goods manufactured that consists of the following costs:

- direct cost of production; - production overhead costs; - special direct costs of production.

2.167 Production end date The production end date is the planned end date of an order, excluding the safety time (float after production). The production dates are determined within the framework of lead-time scheduling.

2.168 Profit center An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control.

2.169 Recipe counter Key that uniquely identifies a recipe in a recipe group.

2.170 Recipe group Grouping of recipes that describe alternative production processes. Together with the recipe counter, a recipe group uniquely identifies a recipe.

2.171 Reference date A time in an operation, for example, the start of setup. Reference dates are used to determine the start and finish dates of sub-operations and usage dates for production resources or tools. It can be defined an offset for each reference date. Using the reference dates and the offsets, the start and finish dates of the sub-operation are determined.

2.172 Reorder point planning A procedure in materials planning. If the reorder point is greater than warehouse stock, a procurement proposal is created by MRP.

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2.173 Repetitive manufacturing A component in the SAP System for planning and controlling repetitive and flow manufacturing. It enables the period- and quantity-dependent planning of production lines, reduces the work involved in production control and simplifies the entry of actual data (confirmation, goods receipt posting).

2.174 Replenishment lead time The total time for the in-house production or for the external procurement of a product. In in-house production, the replenishment lead time is determined to cover all BOM levels.

2.175 Resource Means of production and persons involved in a production process that have capacities assigned to them. Resources are divided into resource categories, such as production line, labor, storage.

2.176 Safety stock The quantity of stock to satisfy high requirements in the stocking-up period. The purpose of the safety stock is to prevent material shortage.

2.177 Scrap The percentage of a material that does not meet quality requirements.

2.178 Settlement Full or partial allocation of costs from one object to another.

2.179 Standard cost A cost that is based on an activity unit and that remains stable over a relatively long period of time. The standard cost of a material can remain stable for a year. It is essentially a norm that should not be exceeded.

2.180 Standard price

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A constant price at which a material is valuated without taking goods movements and invoices into account.

2.181 Secondary resource A resource that is required besides the primary resource and can be assigned to an operation or a phase such as an operator or a transportation container. Secondary resources can be assigned a start and finish time that is relative to the start and finish time of the operation or phase (time offset).

2.182 Storage location An organizational unit allowing differentiation between the various stocks of a material in a plant.

2.183 Total replenishment lead time The time required for procuring raw materials and producing assemblies or finished products. The total replenishment lead time is calculated by adding all planned delivery times or the times required for in-plant production of the longest production process.

2.184 Weekly lot size The total of all requirement quantities for a week or a definable number of weeks.