ERP Glossary - W: Warranty to WIP

Warranty

Warranty is a written legal promise that a product will conform to stated performance standards, or the consumer is entitled to the stated compensation, whether it is product replacement, return of purchase price, or someone to come fix the problem.

WMS (Warehouse Management System)

Warehouse management system generally refers to an ERP module - either third party, or integrated, but stand alone - which focuses on the transactions, processes, and activities associated with warehousing and distribution centers. ERP Warehouse management systems are strong at things like picking strategies, load control, bin storage control, and unit handling management.

Work Orders

Work orders are the documents, normally issued by production planning and scheduling, which request manufacturing to create a specified quantity of a specified material by a specified date. Work orders play an analogous role to internal cost accounting as customer sales orders are to external financial accounting.

Workflow Management

Workflow management is the process of controlling, communicating, and following up on a human approval chain, with the intent of making it more efficient. Workflow management is typically used for processes like product adoptions, or policy change approvals.

Work-in-Process Inventory (WIP)

Work in process inventory describes raw materials which have entered the manufacturing process, and typically been through at least one value-add manufacturing operation, but have not yet been completed and put into finished inventory. Work in process inventory tends to be an important financial and supply chain control point in operations where materials often go through multiple work centers before completion.

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Richard Barker

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Richard Barker