ERP Glossary - P: Press Release to Purchase Requisition
An announcement about an organization written by that organization, intended to generate positive perceptions.
Price Earnings Ratio
The quotient of the price of one share of stock divided by the earning per share of a price of stock. A higher P/E ratio indicates investor confidence that earnings will continue to grow.
The process of determining how much to charge for different quantities of each product or service. Pricing structures can be simple or complicated, depending on the variable features offered on the product or sales agreement. ERP systems normally are very effective at helping to administer rules-based pricing.
Process manufacturing opposite of discreet manufacturing, the finished product in process manufacturing - like paint, or bread – cannot be disassembled into its component parts.
The exercise of systematically studying a process, and determining if there is a more efficient or higher quality method of achieving the intended process result.
Production planning is sometimes used interchangeably with production scheduling, and sometimes is used to convey a broader and longer term set of tasks including capacity planning, raw material procurement, and hours of operation planning. Much of the nuance of production planning depends on how formal or informal the Sales& Operations Planning process is.
A programmer is an individual who creates instructions in computer language (a program) which, when executed, cause a computer to perform a useful function.
A risk reduction methodology practiced by making payments to vendors according to a predetermined schedule of milestones and deliverables. If the deliverables are not met, payments can be withheld, or the project re negotiated.
The process of breaking down a large specific objective into smaller sequential tasks, and establishing the dates by which each sequential task must be completed in order to reach the time and cost target of the large objective. The smaller sequential tasks may run in parallel with or overlap other tasks, and the smaller sequential tasks might be broken down into several more levels of sequential milestones and dates.
The project manager is the highest leader involved in a project, and is responsible for all aspects of project management. There are a number of factors that contribute to a successful ERP project manager.
Project planning is the process of breaking a project down into smaller sequential steps, and making certain that each steps has the appropriate resource and completion date to allow that overall project to be completed on time. Complex project plans are typically administered with the help of computer automated Gantt charts which quickly highlight bottlenecks or logical date impossibilities.
A purchase order is a document which specifies that an organization expects to pay a vendor in exchange for receipt of the goods or services specified on the document. A purchase order normally includes (1) the material or service being purchased (2) the quantity of material or service being purchased (3) the price per unit of the material or service (4) the total cost for the material or service (5) a date and a unique purchase order number and (6) boiler plate information like address, terms and conditions, preferred freight routings, etc.
A purchase requisition is a document which requests permission/approval to purchase a material or service. A purchase requisition is a check and balance system to assure that no one has singular authority to spend the organization's money without due diligence and approval. Purchasing Purchasing is the process or department responsible for buying everything that a company needs to operate, ranging from raw materials to machine parts to office supplies.
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