Acronym Definitions for Manufacturers

TENET	QUESTION	10-8	7-5	4-1	DEFINITIONS
Leadership	Governance, Risk and Compliance			PMO GRC	PMO - Program Management Office, folks who manage programs GRC - Governance, Risk and Compliance framework
Balance Scorecard	Cash Conversion Cycle	EDI	EDI		EDI - Electronic Data Interchange, method to send purchase orders, shipments electronically under standard formats
S&OP Processes	Structure, costs/ownership			S&OP SC	Sales & Operations Planning, a process/forum to balance demand/supply for the company SC - Supply Chain
S&OP Processes	Techniques & technology	ERP		S&OP SC	ERP - Enterprise Resource Planning, a method and solution that ties all departments’ information in one repository and captures and manages every business transaction Sales & Operations Planning, a process/forum to balance demand/supply for the company SC - Supply Chain
S&OP Processes	Process Optimization			S&OP	Sales & Operations Planning, a process/forum to balance demand/supply for the company
S&OP Processes	Customer Collaboration			ATP CTP	ATP - Available to Promise, a method/calculation looking at available finished goods inventory to satisfy a customer order CTP - Capable to Promise, ATP method, plus it looks at what is planned to be delivered from production, by quantity, by date, to further provide a customer delivery date
S&OP Processes	New Product Introduction		S&OP	NPI	Sales & Operations Planning, a process/forum to balance demand/supply for the company NPI - New Product Introduction, term used to describe the process of introducing new products into the portfolio
S&OP Processes	Metrics of Success			VaR TtR	VaR - Value at Risk, metric used to turn risk assessments into $$. Includes Annual RevenueTtRProbability of occurrence TtR - Time to Recover, metric used in VaR calculation. Means—How long will it take to get back to normal operations, hours, days, weeks or months.
Info Systems	System Architecture	ERP	ERP		ERP - Enterprise Resource Planning, a method and solution that ties all departments’ information in one repository and captures and manages every business transaction
Info Systems	Business Systems		ERP	ERP	ERP - Enterprise Resource Planning, a method and solution that ties all departments’ information in one repository and captures and manages every business transaction
Info Systems	Process Automation	QA		MES QA	MES - Manufacturing Execution Systems, computer systems that capture data from the plant floor machines such as heat, temperature, speeds, etc QA - Quality Analysis Techniques
Info Systems	ERP & MES Communication		ERP	MDM	ERP - Enterprise Resource Planning, a method and solution that ties all departments’ information in one repository and captures and manages every business transaction MDM - Master Data Management, a methodology supported by computer software to evaluate part numbers and all their specifications in an orderly manner to provide consistency in manufacturing
Info Systems	Data Standards		XML	XML SCADA	XML - Extensible Markup Language (XML) is a markup language and file format for storing, transmitting, and reconstructing arbitrary data. It defines a set of rules for encoding documents in a format that is both human-readable and machine-readable. SCADA - SCADA (Supervisory control and data acquisition) is a control system architecture comprising computers, networked data communications and graphical user interfaces for high-level supervision of machines and processes. It also covers sensors and other devices, such as programmable logic controllers, which interface with process plant or machinery.
Integrated Supply Chain	Internal Integration		ERP		ERP - Enterprise Resource Planning, a method and solution that ties all departments’ information in one repository and captures and manages every business transaction
Demand Management	Customer Focus			Profit Velocity RONA	Profit Velocity - Profit velocity is a concept used to decide which of several alternative products to manufacture. It is defined as the profit generated per minute of production time for a product¹. RONA - Return on Net Assets, Return on net assets (RONA) is a measure of financial performance calculated as net profit divided by the sum of fixed assets and net working capital. Net profit is also called net income.
Demand Management	Demand Shaping			Profit Velocity SC	Profit Velocity - Profit velocity is a concept used to decide which of several alternative products to manufacture. It is defined as the profit generated per minute of production time for a product¹. SC - Supply Chain
Demand Management	Customer Communication/Collaboration			VMI	VMI - Vendor Managed Inventory, a method supported by computer software to actively evaluate a supplier’s material at a customer’s site and automatically replenish in an orderly fashion to minimize stock outs.
Adaptive Manufacturing	Focus			RONA Profit Velocity	RONA - Return on Net Assets, Return on net assets (RONA) is a measure of financial performance calculated as net profit divided by the sum of fixed assets and net working capital. Net profit is also called net income. Profit Velocity - Profit velocity is a concept used to decide which of several alternative products to manufacture. It is defined as the profit generated per minute of production time for a product¹.
Adaptive Manufacturing	Exception Management			CTP	CTP - Capable to Promise, ATP method, plus it looks at what is planned to be delivered from production, by quantity, by date, to further provide a customer delivery date
Adaptive Manufacturing	Manufacturing Strategy			Profit Velocity	Profit Velocity - Profit velocity is a concept used to decide which of several alternative products to manufacture. It is defined as the profit generated per minute of production time for a product¹.
Adaptive Manufacturing	Production Planning/Scheduling		MRP	ERP APS MES	MRP - Material Requirements Planning, a method supported by computer software that calculates raw material requirements, just below the finished product, based on what you plan to produce ERP - Enterprise Resource Planning, a method and solution that ties all departments’ information in one repository and captures and manages every business transaction APS - Advanced Planning Systems, methodology supported by computer software to review orders, inventory, what’s in production and what’s coming from suppliers to calculate what to product in the future MES - Manufacturing Execution Systems, computer systems that capture data from the plant floor machines such as heat, temperature, speeds, etc
Supply	Commodity/cost management			SRM	SRM - Supplier Resource Management is a business initiative that many companies undertake to build mutually beneficial relationships with suppliers. Well-designed SRM programs help companies to increase collaboration by identifying the right suppliers with whom to partner. Top business drivers for implementing SRM include cost optimization, risk mitigation, top-line growth from supplier innovation, operational process improvements and preferential treatment from suppliers as a customer of choice
Supply	Supplier Integration		EDI		EDI - Electronic Data Interchange, method to send purchase orders, shipments electronically under standard formats
Supply	Warehouse Replenishment		DC	DRP	DC - Distribution Centres DRP - Distribution Requirements Planning, a systematic approach, much like MRP, that identifies stock levels at DC’s, and then replenishes those stock levels, automatically, with orders back to the manufacturer.
Risk Mitigation Planning	Risk Mitigation Investment		ROI		ROI - Return on Investment – usually stated within years or months
Risk Mitigation Planning	Integration of Tactical RMP with S&OP	S&OP	S&OP	S&OP	Sales & Operations Planning, a process/forum to balance demand/supply for the company
Risk Mitigation Planning	Integration of RMP with Strategic Planning		SBU	SBU	SBU - Strategic Business Unit, normally a division of a larger enterprise
Risk Mitigation Planning	Engagement of key stakeholders	RMP			RMP - Risk Management Planning
Risk Mitigation Planning	RMP cycles of improvement			RMP	RMP - Risk Management Planning