In general we use typical terminology used in manufacturing companies, but depending on your industry there could be variations. This is a list of our terminology below, which will also be useful if you are new to manufacturing software.
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 to works to generate parts from a bill of materials
UOM: Unit of measure eg. mm, kg, ltr, each.
Lot: A certain amount of a part, such as a “set of”, “box of”, “length of”. For example, you can define a part as a length of bar, the lot amount is the length to cut.
Gross Margin: The margin applied to direct costs 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 workcenter or employee to process operations. For example, 34 hours a week allowing for employee breaks.
Current Stock: All parts have a stock quantity which is the total number of parts the business has in stock.
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.
Stock Transactions: A stock transaction is a log of a change in the stock quantity of any part. It can be both negative and positive (removing or adding stock). The stock transactions within Fraction consist if: