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Glossary
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on-demand CRM CRM software and computer Production Planning (PP) module A module
equipment that resides with the CRM provider in SAP ERP that maintains production information;
rather being installed in-house. production is planned and scheduled, and actual
production activities are recorded.
on-time performance A measure of how often a
supplier meets agreed-upon delivery dates (used in Production (PROD) system In an SAP system
supply-chain management metrics). landscape, one of three separate SAP systems; the
actual system that the company uses to run its
open architecture Software that allows
business processes.
integration with third-party software. SAP ERP is an
example of open-architecture software. The term profit and loss (P&L) statement See income
can also be applied to hardware products. statement.
organizational change management (OCM) Project System (PS) module A module in SAP
The management of the human behavior aspects of ERP that allows for the planning and control of new
organizational change. R&D, construction, and marketing projects. This
module allows for costs to be collected against a
organizational structure In SAP, the method
project budget, and it can be used to manage the
used to define the relationships between
implementation of ERP itself.
organizational groups such as companies, plants,
storage locations, sales divisions, and distribution qualification A skill or ability associated with a
channels. specific employee.
overhead A company’s cost of operations, such Quality Assurance (QAS) system In an SAP
as the costs for factory utilities, general factory system landscape, one of three separate SAP
labor, factory management, storage, insurance, and systems; the system where testing is done.
other manufacturing-related activities. Overhead Quality Management (QM) module A module
is often called an indirect cost of production. in SAP ERP that helps companies plan and record
payroll run The process of determining each quality-control activities, such as product
employee’s pay. inspections and material certifications.
person In SAP, the unique individual who holds a R/3 The first integrated information system
position. released by German software vendor SAP in 1992;
now called SAP ERP. This ERP system contains the
Plant Maintenance (PM) module A module in
following main modules, which can be implemented
SAP ERP that allows planning for preventive
as a group or selectively: Sales and Distribution (SD),
maintenance of plant machinery and managing
Materials Management (MM), Production Planning
maintenance resources, so equipment breakdowns
(PP), Quality Management (QM), Plant Maintenance
are minimized.
(PM), Human Resources (HR), Financial Accounting
position In SAP, an individual employee (FI), Controlling (CO), Asset Management (AM),
assignment in an organization. Tasks can be Project System (PS), and Workflow (WF).
assigned directly to the position, or by assigning
radio frequency identification (RFID) A
jobs to the position.
tracking technology that uses a small package
process boundary In process mapping, a device, or tag, that includes a microprocessor and
definition of those activities to be included in the antenna that can be attached to products. The
process and what is considered part of the location of an item with an RFID tag can be
environment. determined using an RFID reader, which emits
process mapping A type of flowcharting that radio waves and receives signals back from the tag.
pictorially represents the activities occurring within raw data Data on sales, manufacturing, and other
an existing business process. operations that have not been analyzed or
process model Any abstract representation of a manipulated for presentation.
process. remuneration element Part of an employee’s
product cost variant The procedure for pay, such as the base pay, bonuses, gratuities,
developing a product cost analysis; many variants overtime, sick pay, and vacation allowances the
can be created for different planning requirements. employee has earned during the pay period.

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