Glossary

Common planning terms and their definitions


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Production Planning

The development of a plan to meet demand for a product over a period of time, what to make, when to make it, how much to make, where to make it and what materials and resources are requred.

Production Scheduling

Determining and executing a production schedule for how best to make the product, sequence and synchronize production, while taking into account priorities, constraints and conflicts, while also managing changes.

Planning vs Scheduling

The following illustration shows the differences between planning and scheduling systems.

planningVSscheduling.jpg
Illustration Used By Permission © Preactor International

 
For a more in depth explanation of the differences, watch the short video "Planning & Scheduling - What's the difference and how they're important". For more, look on our videos page.

Advanced Planning & Scheduling (APS)

Advanced planning and scheduling (also referred to as APS and advanced manufacturing) refers to a manufacturing management process by which raw materials and production capacity are optimally allocated to meet demand. APS [software] is especially well-suited to environments where simpler planning methods cannot adequately address complex trade-offs between competing priorities. (Source: Wagoner, April (2007). Plant Floor Scheduling Systems in a Lean Environment (pdf). Raleigh: NCSU)

BOM

A BOM or Bill of Materials is a list of raw materials, components or parts and quantities needed to manufacture a product. (See Wikipedia Article 'Bill of Materials')

Enterprise Resources Planning (ERP)

ERP systems integrate management data across an organization, such as finance, manufacturing and sales.

Just-in-Time (JIT)

Just-in-Time is a production method with a goal of improving Return on Investment by reducing inventory and the associated costs. The philosophy is that inventory is a waste of warehouse space. JIT is also called the "Toyota Production System". (See Wikipedia Article "Just-in-Time (business)")

Manufacturing Execution Systems (MES)

Manufacturing Exececution Systems manage manufacturing operations in factories. The scope of these systems includes:
  • Product Management
  • Resource Management
  • Scheduling Production
  • Production Order Dispatch & Execution
  • Production Data
  • Production Performance Analysis
  • Production Track & Trace

Materials Requirements Planning (MRP)

Materials Requirements Planning is production planning and inventory control system to manage manufacturing processes.