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ERP Glossary

A

Aerospace Manufacturing

The process of designing, building, testing, selling and maintaining aircraft, aircraft parts, missiles, rockets and spacecraft. Aerospace companies use project-based manufacturing. See also Project Manufacturing.

C

CDN (Content Delivery Network)

A system consisting of multiple computers that contain copies of data, which are located in different places on the network so clients can access the copy closest to them.

Cloud

A general term used to describe both the remote servers used in and the entire process of cloud computing. For example, cloud computing software vendors often advertise their products and product capabilities as being “in the cloud.”

The cloud is already in widespread daily use in financial, industrial, educational, arts and entertainment applications by people around the world.

Cloud Application

The top layer of the Cloud Computing Stack where applications interact with client web browsers. Examples: Gmail and Salesforce.com.

Cloud Broker

An entity that creates and maintains relationships with multiple cloud service providers. It acts as a liaison between cloud services customers and cloud service providers, selecting the best provider for each customer and monitoring the services.

Cloud Computing

A computing environment (“the cloud”) consisting of networks, servers, data storage, application and services that can be easily managed and accessed through a networking protocol, usually the internet.

Cloud computing can be delivered on a public cloud (using the public internet), private cloud (using a private network), community cloud (using shared cloud resources) or hybrid cloud (a combination of public, private, or community clouds). The most common cloud computing service models used for ERP software are Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).

Cloud ERP

A shortened form of Cloud ERP Software, often used as a label for cloud-based ERP software in general.

Cloud ERP for Engineer To Order Manufacturers

Cloud-based Enterprise Resource Planning (ERP) software designed to meet the business requirements of Engineer to Order (ETO) manufacturers. ETO manufacturers need Engineer to Order ERP that helps them build complex custom products based on constantly changing customer requirements and engineering revisions.

Rootstock Software offers Cloud ERP for ETO manufacturers that integrates and streamlines product management and Product Lifecycle Control (PLM); engineering management; scheduling and capacity planning; project management; and Material Requirements Planning (MRP).

Cloud ERP for Engineering

Cloud-based Enterprise Resource Planning (ERP) software designed to automate engineering functions, including engineering changes, bill of materials, routings and costs. Cloud ERP for engineers helps to reduce errors and ensure accurate and up-to-date engineering data.

Rootstock Cloud ERP software for manufacturing includes powerful engineering management tools.

Cloud ERP for High-Tech and Electronics Manufacturers

Cloud-based Enterprise Resource Planning (ERP) software designed to help manufacturers in the high-tech and electronics industries manage high-volume production, deliver innovative products to market faster, and comply with stringent regulatory requirements.

Rootstock Software offers a modern Cloud ERP solution for high-tech and electronics manufacturers that automates supply chain processes and integrates engineering management, product management and Product Lifecycle Control (PLM); scheduling and capacity planning; and Material Requirements Planning (MRP).

Cloud ERP for Industrial Equipment

Cloud-based Enterprise Resource Planning (ERP) software designed to help industrial equipment manufacturers reduce costs and lead times, and efficiently manage complex builds.

Rootstock Software offers flexible Cloud ERP for industrial equipment manufacturers that supports  multiple manufacturing modes and includes engineering management and scheduling and capacity planning tools.

Cloud ERP for Job Shops

Cloud-based Enterprise Resource Planning (ERP) software designed to help job shops manage dynamic manufacturing environments in order to meet the challenge of delivering more products to market in less time.

Rootstock Software offers a modern Cloud ERP solution for job shops that includes powerful engineering management tools; integrated scheduling and capacity planning and shop floor control; and complete project lifecycle tracking.

Cloud ERP for Machine Shops

Cloud-based Enterprise Resource Planning (ERP) software designed to help machine shops manage their manufacturing environments in order to meet the challenge of delivering more products to market in less time.

Rootstock Software offers Cloud ERP for machine shops that integrates engineering management, scheduling and capacity planning, and shop floor control; it also includes complete project lifecycle tracking.

Cloud ERP for Machinery Manufacturers

Cloud-based Enterprise Resource Planning (ERP) software designed to help machinery manufacturers reduce costs and lead times, and efficiently manage complex builds.

Rootstock Software offers flexible Cloud ERP for machinery manufacturers that supports multiple manufacturing modes and includes engineering management and scheduling and capacity planning tools.

Cloud ERP for Project Manufacturers

Cloud-based Enterprise Resource Planning (ERP) software designed for manufacturing companies whose engineering, sales, operations, procurement, materials, planning and production processes are organized by project.

Rootstock Software offers Cloud ERP for project manufacturers that includes comprehensive project management, streamlined manufacturing processes, and seamless integration with Salesforce CRM on the Salesforce Cloud Platform.

Cloud ERP for Wholesale Distributors

Cloud-based Enterprise Resource Planning (ERP) software designed to meet the business requirements of wholesale distributors. ERP for distribution helps these companies manage every part of their supply chain, with complete and integrated sales, purchasing, warehousing, shipping and customer service functions.

Rootstock Software offers Cloud ERP for distribution that is fully integrated with Salesforce CRM.

Cloud ERP Industry Solutions

Cloud ERP software categorized by industry by the vendor. ERP vendors typically offer cloud solutions for manufacturing that include features or functions for specific industries such as medical devices, aerospace and defense, high-tech and electronics, and industrial equipment; it also addresses the needs of wholesale distributors.

For example, Rootstock Cloud ERP software provides industry-specific ERP for manufacturers in the heavily regulated medical device industry that includes complete device history and traceability.

Cloud ERP Software

Enterprise Resource Planning (ERP) software that uses cloud computing technology to give end users real-time access to business data stored and managed on secure remote servers, and the ability to run applications that use those resources to manage different functions in the company.

Cloud ERP software is based on the Sales as a Service (SaaS) cloud service model, whereby applications are delivered over the internet by the provider, so that the applications don’t have to be purchased, installed, and run on the customer’s computers.

Cloud ERP software has several well-known benefits, including low upfront costs, centralized data storage, scalability, on-demand real-time access to data and applications, and automation of formerly manual or disconnected tasks.

Cloud ERP software is often compared and contrasted with older on-premise ERP systems, which require servers to be located at the company’s site and maintained and updated by the company’s own IT department.

Cloud ERP Software for Aerospace Manufacturers

Cloud-based Enterprise Resource Planning (ERP) software designed to meet the business requirements of aerospace and defense industry manufacturers. Cloud ERP software for aerospace manufacturers provides thorough project lifecycle management, complete traceability and product  history for regulatory compliance, and helps them manage complex programs and extensive, global supply chains.

Rootstock Software offers Cloud ERP for aerospace that includes complete project lifecycle tracking and control; complete product history, traceability and audit trails; powerful engineering management tools; and integrated scheduling, planning and inventory control.

Cloud ERP Software for Manufacturing

Cloud-based ERP software designed specifically for manufacturing companies. Cloud ERP for manufacturing integrates and automates manufacturing functions for discrete, process and multi-mode  manufacturers of all sizes. In this type of software, every department from inventory and planning to shop floor and supply chain management are connected to critical business data and to each other, resulting in streamlined workflows and increased efficiencies.

Also known as Cloud ERP for Manufacturing and Cloud-Based ERP for Manufacturing, the ideal Cloud ERP software for manufacturing is a scalable solution that increases productivity, reduces costs, uncovers actionable business insights, and improves customer satisfaction. Rootstock Software is a provider of such a solution on the Salesforce Cloud Platform.

Cloud ERP Software for Medical Device Manufacturers

Cloud-based Enterprise Resource Planning (ERP) software designed to meet the business requirements of medical device manufacturers. Manufacturers in the medical device industry need ERP software that provides strong engineering management features, complete traceability and product  history for regulatory compliance, and flexible automated workflows to support production and delivery of innovative products.

Rootstock Software offers Cloud ERP for medical device manufacturers that includes powerful engineering management tools; complete product history, traceability and audit trails; and integrated scheduling and capacity planning.

Cloud-Based Manufacturing Software

Manufacturing software based on cloud computing technology. See also Cloud ERP Software for Manufacturing.

Cloud-Based MRP

Material Requirements Planning (MRP) software that uses cloud computing to give end users real-time access to inventory and purchasing data stored and managed on secure remote servers, and the ability to run applications that use those resources to manage material requirements for production. Cloud-based MRP systems are also known as MRP Cloud and Cloud MRP.

Community Cloud

A collaborative cloud deployment model in which infrastructure is shared between several organizations from a specific community. In a community cloud, access is limited to a specific group of users or multiple groups with shared interests, such as mission, policy or security requirements. A community cloud is owned, managed and operated by members of the community, a third-party cloud provider, or by both together.

The costs of a community cloud are spread over fewer users than a public cloud (but more than a private cloud), so only some of the cost savings potential of cloud computing are realized.

Cost Accounting for Manufacturing Companies

A method of accounting that determines the actual cost of manufacturing a product by looking at every expense in the supply chain. Manufacturing companies use cost accounting to help them monitor and control how much it costs to produce their products, prepare budgets, analyze profitability and comply with required accounting standards.

Cost accounting systems for manufacturing companies typically allow either standard cost or moving average cost methods to value inventory and calculate the cost of goods sold, including both fixed and variable costs.

Rootstock Cloud ERP software provides detailed cost management to support the entire manufacturing process, including the ability to accurately track up to eight cost elements in inventory, work in process and finished using either standard cost or moving average cost methods, then roll up and post automatically to the General Ledger.

D

Defense Manufacturing

The production of military or civilian aircraft, ships, vehicles, weaponry, and electronic systems. Aerospace and defense manufacturing are often grouped together into a single industry. See also Aerospace Manufacturing.

Dispatch List In Manufacturing

A document or list of orders of all products and components that must be produced based on their priority. Dispatch lists typically include detailed information about each job, including the quantity, priority, location, order number, part number, due dates and job status.

Rootstock Software Cloud ERP integrates and streamlines work orders, scheduling, shop floor control, capacity planning and project control to help increase productivity and efficiency in manufacturing operations.

Distribution ERP

Enterprise Resource Planning (ERP) systems designed specifically for companies involved primarily in the distribution of products and services. ERP for distribution companies can be stand-alone systems,  such as ERP distribution software, or part of a more complete cloud-based ERP solution like that offered by Rootstock Software. See also Cloud ERP for Wholesale Distributors.

E

Electronics Manufacturing

The production of computers, computer peripherals, communications equipment, integrated circuits and other electronic products, as well as the application of highly specialized miniaturization technologies. Electronics and high-tech manufacturing are usually grouped together as a single manufacturing industry due to their economic significance.

Engineer to Order

A manufacturing process in which a product is designed, engineered and finished after an order has been received. Engineer to Order manufacturers build complex or specialized products to the customer’s specifications and work with the customer throughout the process.

Enterprise Resource Planning

The integrated management of core business processes using common databases. Enterprise Resource Planning (ERP) often refers to a category of business management software that companies use to collect, store, manage, and analyze data from different business activities.

The purpose of ERP is to track business resources such as cash, raw materials and production capacity as well as the status of business commitments such as orders and purchase orders. Individual applications within ERP share data to facilitate the flow of information across different departments in an enterprise, including sales, manufacturing, purchasing, and finance.

ERP software has evolved from early Material Requirements Planning (MRP) systems that managed production planning, scheduling and inventory to cloud-based enterprise-wide systems that manage everything from sales and order processing to finance and customer service.

ERP

Widely used acronym for Enterprise Resource Planning.

ERP Application Modules

Function-specific modules within an Enterprise Resource Planning (ERP) software system, typically integrated into the software itself. For example, manufacturing ERP modules might include inventory, production and shop control software.

Rootstock Cloud ERP Software includes application modules that support the entire enterprise, from sales and order processing through inventory and production, all the way to customer service.

ERP Cloud Configurator

Functionality built into cloud-based ERP software that allows manufacturers to automate the configuration of different product designs and include their associated inventory, labor, service, entitlements and other costs into their pricing for customers.

For example, the Sales Order Processing ERP application module from Rootstock Software includes customizable configuration management that helps manufacturers offer a wide variety of configurable products.

ERP Engineer

Most commonly an engineer who works with an Enterprise Resource Planning (ERP) system and is typically involved in the planning, implementation or management of the software.

Less commonly, a person who uses engineering management tools included in cloud-based manufacturing software.

ERP for Wholesale Distribution

Enterprise Resource Planning (ERP) software designed to meet the business requirements of wholesale distributors. See also Cloud ERP for Wholesale Distributors.

ERP Material

Business processes included in Enterprise Resource Planning (ERP) that help manufacturing firms manage materials required for production.

ERP Software for Aerospace

Enterprise Resource Planning (ERP) software designed specifically for manufacturers in the aerospace and defense industries. See also Cloud ERP Software for Aerospace Manufacturers.

ERP Vendors

Software development companies and their partners who sell ERP software. For example, as a leading Cloud ERP company, Rootstock Software is a top Cloud ERP vendor.

F

Force.com

Force.com is the Platform as a Service (PaaS) offering from Salesforce.com. See also: PaaS

H

High-Tech Manufacturing

The production of commercial and personal computer and electronics products using the most advanced technology available. See also Electronics Manufacturing.

Hybrid Cloud

A cloud deployment model combining two or more cloud deployment models (private, community, or  public) that remain unique entities but are bound together by standardized or proprietary technology. A hybrid cloud allows data and applications to be moved and shared between cloud infrastructures.

In the last couple of years, hybrid clouds have become popular with large firms who want to enjoy some of the benefits of the cloud without giving up their investment in on-premise legacy ERP systems. These companies take an incremental or hybrid application approach. Some large ERP vendors sell hybrid cloud products so they can advertise a cloud solution, but implementation challenges remain, including high IT costs, and difficult and time-consuming integrations.

I

IaaS (Infrastructure as a Service)

A cloud service model that delivers a virtualized computing environment as a service over the internet by the provider, allowing companies to subscribe to computing infrastructure resources.

IaaS includes hosting services on virtual machines, networks, storage, load balancers, firewalls and other resources that allow you to take advantage of such cloud benefits as scalability and global access. With IaaS, customers don’t control or manage the infrastructure; they just rent it. Amazon AWS, Microsoft Azure, Google Compute Engine and Rackspace Cloud are examples of IaaS.

Industrial Equipment Manufacturing

The production of hardware, machinery and other industrial components used in other industries. Industrial equipment manufacturers produce power and hand tools, polishing and metal-working machines, drills, nuts, bolts, screws, springs, valves, pneumatic hoses and other basic equipment, as well as generators, conveyors and heavy equipment.

Inventory Lot Control

A business process that tracks every piece of inventory that flows through a warehouse back to its group of origin, called a lot. ERP software allows manufacturing companies to assign unique numbers to each lot to facilitate complete tracking. See also Lot.

J

Job Shop

A facility or company that manufactures small batches of different custom products. In a job shop, many products require a unique setup and a specific sequence of steps. Job shops are often companies that produce custom parts for other manufacturers and usually focus on customization and small production runs instead of volume and standardization.

L

Legacy ERP

Older Enterprise Resource Planning (ERP) systems that require all computing hardware to be installed, maintained and customized by a company’s IT department at their own physical location. Many manufacturing companies have been abandoning their old legacy ERP systems because over time, these systems become too expensive to maintain and fail to deliver integrated, automated solutions that these companies need to compete and grow.

Also called “On-Premise ERP,” legacy ERP systems are often compared with cloud-based ERP software, which is less expensive to own, easier to customize, and is maintained by the ERP vendor. Legacy ERP systems typically lack the scalability, real-time on-demand data access and flexibility that Cloud ERP systems provide.

Lot

A specific batch of an item that was received, stored, or shipped from a warehouse.

Lot Control Software

Software used by manufacturers and distributors to track every product from the manufacturer through the supplier to the customer. A lot is a specific group of an item that was received, is stored, or was shipped from a warehouse. Advanced lot control systems automate the tracking of products by their lot number, helping companies track product movement, create reports, comply with regulations and minimize the costs of product recalls.

M

Machine Shop

A facility in which machine tools are used to build and repair parts made of metals and other materials. Machine shops typically use drills, lathes, milling machines, presses, cutting and welding equipment, and grinding and polishing machines to build and repair machine tools, dies, and molds for such mass-produced parts as pistons, screws, or gears. The parts produced by a machine shop can be the end product or can be sold to manufacturers in other industries.

Machine Shop Management Software

Enterprise Resource Planning (ERP) software designed to help machine shops manage their manufacturing environments in order to meet the challenge of delivering more products to market in less time.

Rootstock Software provides a Cloud ERP solution for machine shops that integrates engineering management, scheduling and capacity planning, and shop floor control. It also includes complete project lifecycle tracking.

Machinery Manufacturing

The design and production of machine products that require complex assembly operations. Machinery manufacturers use multiple metal forming processes to produce the different parts of a machine, and then assemble the parts together. Some manufacturers produce general purpose machinery for heating and air conditioning; commercial refrigeration equipment; and engine, turbine and power transmission equipment. Other companies produce machinery designed to be used in a particular industry, such as agriculture, construction and mining.

Manufacturing Cost

All labor, material and overhead costs required to manufacture a finished product.

Manufacturing Software

A single software application or a suite of applications that connect a company's manufacturing data from one or more sources to an integrated system and provides end-user access to employees who manage, report and analyze the data.

Manufacturing software typically includes functions for managing sales and orders, costing, engineering, supply chain, inventory, production, logistics, finances, data analytics and customer service. Depending on the vendor, manufacturing software may include any or all of these modules and may be designed for specific types of manufacturing, specific industries, or companies of specific sizes.

Manufacturing software evolved from early mainframe systems in the 1970s and Material Requirements Planning (MRP) systems in the 1970s and 1980s to on-premise enterprise resource planning (ERP) systems based on client-server technology. Today, advances in digital technologies and cloud computing have fueled the growth and popularity of cloud-based ERP software for manufacturing.

Material Requirements Planning Software (MRP)

Software used by manufacturing companies to manage material requirements for production. MRP systems typically provide access to inventory, purchasing and scheduling data and applications.

MRP systems first emerged in the 1970s and gained popularity in the 1980s with the advent of minicomputers, serving as an important planning tool to help manufacturers decide what to build and what components to buy. Today, modern Cloud ERP software for manufacturers from vendors, such as Rootstock Software, include MRP functions.

Medical Device Manufacturing

The production of any item or component used in the diagnosis, treatment, prevention or cure of medical conditions or diseases, or that affects the body through means other than chemical or metabolic reaction in humans or animals. In the United States, medical device manufacturers must comply with strict regulations established and monitored by the Food and Drug Administration (FDA).

Moving Average Costing

A method of assigning costs to inventory and products in which the average cost of each inventory item in stock is recalculated after every inventory purchase. Average costing is used for distribution and other industries where product cost changes or when required by government or industry regulations.

MRP

Widely used acronym for Material Requirements Planning.

MRP Cloud

A name used to describe Material Requirements Planning (MRP) software based on cloud computing. See also Material Requirements Planning (MRP).

Multi tenancy

Multi tenancy is the property of multiple systems, applications or data from different enterprises hosted on the same physical hardware. Multitenancy is common to most cloud-based system.

O

On-Premise ERP

Another name for Legacy ERP Software or systems. See Legacy ERP.

P

PaaS (Platform as a Service)

A cloud service model that delivers the computing platform (operating system and associated services)  as a service over the internet by the provider.

With PaaS, companies develop their own software applications to run on a vendor’s application-hosting environment (the platform). The vendor provides and controls the programming languages, libraries, operating system, tools and services as well as the infrastructure resources, while customers focus on the applications themselves. Examples of PaaS include Salesforce and the Google App Engine.

Private Cloud

A cloud deployment model that offers computing services over the internet or over a private internal network to only select users and is not available to the general public.

A private cloud is owned by a single organization that maintains its own data center and wants to continue to do so. Private clouds let organizations use cloud computing to centralize access to IT resources by different departments and locations within the organization. Private clouds are managed and operated by the organization itself or in combination with a third party.

Project Manufacturing

The production of a single unit of a unique product with many nonstandard components using complex sets of activities that must be completed in a specific order within a given time period and within a given cost estimate. Generally, products produced by project manufacturers tend to be assembled in a fixed position layout because they are too large or too heavy to be produced on an assembly line. These products include ships, locomotives and aircraft.

Project manufacturers rely on Enterprise Resource Planning (ERP) systems that allow project-centric planning and tracking of sales, inventory control, shop floor control, MRP, purchasing and manufacturing cost control.

Public Cloud

A cloud deployment model that offers services over the public internet and is available to anyone who wants to purchase the service.

A public cloud is a cloud environment owned by a third-party provider and provides fast and affordable access to computing resources over a public network. The cloud provider creates, controls and maintains the public cloud for use by end users in business, academic or government organizations.

S

SaaS (Software as a Service)

A cloud service model that delivers software applications over the internet. The SaaS vendor, not the customer, manages the application, including upgrades and maintenance. The customer simply subscribes to the service and accesses the software on the internet. Rootstock Manufacturing Cloud ERP and Salesforce CRM are both examples of SaaS.

The SaaS service model lets you access a vendor’s software applications on demand through the internet or a similar thin-client interface. The SaaS vendor manages the application, including upgrades and maintenance, and you simply subscribe to the service. Rootstock Manufacturing Cloud ERP and Salesforce CRM are both examples of Software as a Service.

Sales Order Management

Business processes required to place and track orders for goods or services. Sales order management is typically integrated into Cloud ERP software for manufacturing to help companies improve sales visibility and customer satisfaction, and process orders with a minimum of delays.

Rootstock Cloud ERP Software for manufacturing includes a Sales Order Management ERP application module.

Salesforce Cloud Platform

A broad term used to identify the Salesforce cloud computing environment and infrastructure. Salesforce provides several cloud platforms that seamlessly connect to each other to support different functional areas of an enterprise. For example, the Salesforce Sales Cloud supports CRM and sales, the Salesforce Service Cloud support customer service-specific functions, and the Salesforce Marketing Cloud supports marketing-specific functions.

Salesforce also provides tools for software developers to build their own applications on the Salesforce Cloud Platform that conform to the standards of the platform and integrate with other software on the same platform.

Salesforce Manufacturing ERP

Enterprise Resource Planning (ERP) software designed, built and hosted on the Salesforce Cloud Platform. When combined with Salesforce Customer Relationship Management (CRM) software, Cloud ERP for manufacturing allows a consistent set of customer data to be shared across all of the departments in a manufacturing company.

Cloud ERP on Salesforce from vendors like Rootstock Software gives manufacturing companies access to secure, real-time data so that inventory, supply chain and production managers can act on the same information to solve issues before they become significant problems. The ability to connect to a single set of customer data also breaks down departmental silos that serve as traditional obstacles to improvements in efficiency, productivity and growth.

Additionally, manufacturing firms can add more software applications to their Salesforce ERP from the Salesforce AppExchange to extend their Salesforce ERP solution.

Scalability

The ability to deliver more or less computing power to match business requirements. Scalability describes the ability of a process, network or software to grow and manage increased demand. A scalable system or software is adaptable to the changing needs or demands of its users or clients.

Scheduling and Capacity Planning

The process of determining when and how much production capacity is needed to manufacture a product. Scheduling and capacity planning are typically integrated into manufacturing ERP software to help companies efficiently manage production based on several factors, including labor and machine availability, suppliers, waste, scrap, errors, defects, government regulations, and maintenance.

Rootstock Cloud ERP for manufacturing, supply chain and distribution includes an easy-to-use drag-and-drop scheduling and capacity planning module to help firms meet changing customer demand.

Shop Floor Control in ERP

A group of integrated functions in Enterprise Resource Management (ERP) software used by manufacturing firms to track, schedule and report on the progress of work in a factory. Shop floor control implements scheduling plans by issuing work orders to work centers and requesting raw materials from inventory.

Shop Order Manufacturing

A manufacturing technique that uses a work order to approve and track the production of products and components throughout the shop floor. In shop order manufacturing, items do not need to be moved into and out of stock, thereby reducing material handling and ensuring an inventory record accuracy.

Modern Cloud ERP software, such as Rootstock Software, includes shop floor control functions that automate the tracking of work orders.

SLA (Service Level Agreement)

An SLA is contract between a provider and a consumer that specifies consumer requirements and the provider’s commitment to them. Typically an SLA includes items such as uptime, privacy, security and backup procedures.

Standard Costing

A method of assigning costs to inventory and products in which an expected cost is substituted for an actual cost in the accounting records, and records variances to show the difference between the two.

Subscription Based Pricing Model

A pricing model that lets customers pay a fee to use the service for a particular time period, often used for SaaS services.