Z94.14 - Operations & Inventory Planning & Control

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ON HAND. The balance shown in perpetual inventory records as being physically present at the stocking locations.

ON ORDER. The quantity of material represented by the total of all outstanding replenishment orders. The on order balance increases when a new order is released, and it decreases when material is received to fill an order, or when an order is cancelled. (See On Hand, Open Order.)

OPEN ORDER. (1) An active manufacturing order or purchase order. (2) An unfilled customer order. Syn: scheduled receipt.

OPERATION REPORTING. The recording and reporting of every manufacturing (shop order) operation occurrence on an operation-to-operation basis.

OPERATION SHEET. A form providing information regarding part routing, operation times, tooling, etc. Syn: route sheet.

OPERATION START DATE. The date when an operation should be started based upon the work remaining and the available time remaining to complete the job.

OPTION. A choice or feature offered for customizing the end product. Option means either a mandatory choice (the customer must select from one of the available choices) or a voluntary choice (the customer may select an add-on item). (See ACCESSORY, ATTACHMENT.)

ORDER. A catch-all term which may refer to such diverse items as a purchase order, shop order, customer order, planned order, etc.

ORDER BOM.  The version of a bill-of-material captured at point of order release in an MRP system. Prior to order release, changes to the BOM are automatically controlled by the system.

ORDER ENTRY. The process of accepting and translating a customer order into terms used by the manufacturer.

ORDERING COST. Includes costs related to preparing, issuing, following, and receiving orders. Also includes cost related to physical handling of goods, inspection, and machine set-up if the order is being manufactured. (See CARRYING COST.) Syn: acquisition cost.

ORDER MULTIPLE. An order quantity modifier applied after the lot size has been calculated to round the order quantity to a predetermined multiple.

ORDER POINT. (1) The inventory level at which action is taken to replenish a material. The order point is normally calculated as forecasted usage during the replenishment lead time plus safety stock. (2) A specific time interval where inventory levels are reviewed for replenishment. (See TIME-PHASED ORDER POINT.) Syns: reorder point, trigger level.


ORDER PROMISING. The process of making a delivery commitment, i.e., answering the question "when can you ship?" For make-to-order products this usually involves checking of uncommitted material, available capacity and planned leadtime. Syns: order dating, customer order promising.

ORDER QUANTITY MODIFIERS. Special considerations (i.e., price breaks, order multiples) by which an order quantity is adjusted after being calculated according to a lot sizing rule. (See MINIMUM ORDER QUANTITY, ORDER MULTIPLE.)

OUTPUT. Work being completed by production facility.

OUTSIDE SHOP. The vendor. Used to convey the idea of an extension of the inside shop.

OVERLAPPED SCHEDULE. The concept of parts in a lot being scheduled concurrently on two or more successive work centers. Syns: lap-phasing, telescoping.

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