Pre-Deduct Inventory Transaction Processing

A technique used in inventory management is where the book inventory is reduced prior to the actual physical action. This can apply to receipts and issues, where the transaction is completed as soon as the order is released to production or received onto the dock.

Predictive Maintenance (PM)

Regularly scheduled maintenance activities and practices seek to prevent unscheduled machinery downtime by collecting and analyzing data on equipment conditions. The analysis is then used to predict time-to-failure, plan maintenance, and restore machinery to good operating condition.

Pre-Expediting

The act of making an inquiry about an open order is a way of ensuring that delivery is going to be made per agreement.

Prepaid

A freight term that indicates that charges are to be paid by the shipper.

Pre-Receiving

A process that allows companies to prepare for the reception of incoming materials, products, and goods. Pre-receiving allows companies to pay for the materials before receipt to determine how the incoming supplies will be stored or used.

Present Value

The value, on a given date, of a future payment or series of future payments is discounted to reflect the time value of money and other factors, such as investment risk.

Price Erosion

The decrease in price point and profit margin for a product or service occurs over time due to the effect of increased competition or commoditization.

Price Look-Up (PLU)

Used for retail products sold loose, bunched, or in bulk (to identify the different types of fruit, for example). As opposed to UPC (Universal Product Codes) for packaged, fixed-weight retail items, a PLU code contains 4-5 digits in total. The PLU is entered before an item is weighed to determine its price.

Primary-B usiness Test

A test used by the ICC to determine if a trucking operation is bona fide private transportation: the private trucking operation must be incidental to and in the furtherance of the primary business of the firm.

Primary carrier

In freight transportation, a primary carrier is a carrier with which the shipper has a guaranteed price for a specific lane or lanes. Normally, a carrier becomes a primary after winning an RFP.

PrimaryDefect Analysis

A combination of flaw detection—so they may be removed from the product or process—and analysis of defects and errors received—to prevent future defects in the product or process.

Primary Highways

Highways that connect less populated cities with major cities.

Primary Manufacturing Strategy

Your company's dominant manufacturing strategy is the Primary Manufacturing Strategy, which generally accounts for 80% or more of a company's product volume. According to a study by Pittiglio Rabin Todd and McGrath (PRTM), approximately 73% of all companies use a make-to-stock strategy.

PRIME Q R

Product Replenishment and Inventory Management: The Edge for Quick Response.

Private Carrier

A carrier that provides transportation services to the firm and owns or leases the vehicles, without charging a fee. Private motor carriers may also haul for wholly-owned subsidiaries at a fee.

Private Label

Products that are designed, produced, and controlled by, and which carry the name of the store or a name owned by the store, are also known as a store brand or dealer brand. An example would be Wal-Mart's 'Sam's Choice' products.

Private Warehouse

A warehouse that is owned by the company using it.

Proactive

The strategy of understanding issues before they become apparent and presenting the solution as a benefit to the customer, etc.

Process

A series of time-based activities that are linked to complete a specific output.

Process Benchmarking

The activity associated with comparing a process in use to one used by another organization (internal or external) benchmarks may include quantitative metrics as well as functional steps (qualitative).

Process Improvement

Designs or activities that improve quality or reduce costs often through the elimination of waste or non-value-added tasks.

Process Manufacturing

The segment of the manufacturing industry that is associated with the production of products using formulas and manufacturing recipes can be contrasted with discrete manufacturing, which is concerned with bills of material and routing.

Process Optimization

The study of process adjustment is to optimize a specified set of parameters without violating any constraints. Some of the most common goals of process optimization are minimizing costs and maximizing throughput and/or efficiency.

Process Yield

The resulting output from a process is an example, such as a quantity of finished product output from manufacturing processes.

Procurement

The activities associated with acquiring products or services vary widely between organizations and include all parts of the functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations.

Procurement Services Provider (PSP)

A service firm that integrates procurement technologies with product sourcing and supply management expertise to provide outsourced procurement solutions.

Product

Something that has been or is being produced.

Product Characteristics

All of the elements that define a product's character, such as size, shape, weight, etc.

Product Configuration

The arrangement of parts or components to satisfy a customer's demand by creating a product.

Product Configurator

A software tool that provides the capability of creating a specific end item version for products that have a number of optional components.

Product Data Management (PDM)

A technology solution that provides a single, centralized data repository enabling authorized users throughout a company to access and update current product information, while ensuring they follow specific procedures.

Product Family

A set of products that are considered as a single group when creating forecasts for planning purposes.

Product ID

A method of identifying a product without using a full description, these can be different for each document type and must therefore be captured and related to the document in which they were used.

Product Incubator

The controlled environmental conditions allow for the research, development, and testing of a new or redefined product.

Production Calendar

A tool used in the production environment to note the capacity available by working day. While it may resemble the traditional calendar with a representation of months and days, the unique features are the units of capacity available and the ability to block specific days, shifts, or work periods. Calendars are set by work center to allow for differing schedules.

Production Capacity

Measure of how much production volume may be experienced over a set period of time.

Production Forecast

The forecasted level of production, which will be required to meet anticipated demand above the current level of inventory availability. Also, see Assemble-to-Order, Planning Bill of Material, Two-Level Master Schedule.

Production Line

The area where production occurs specifically refers to the series of work centers or pieces of equipment used in the manufacture or assembly of products.

Production Planning and Scheduling

The systems that enable the creation of detailed, optimized plans and schedules, taking into account resource, material, and dependency constraints, to meet the deadlines.

Production-Related Material

Production-related materials are those items classified as material purchases and included in the Cost of Goods Sold as raw material purchases.

Production Validation

The documented act of demonstrating that a procedure, process, and activity during the production process will consistently lead to the expected results.

Productivity

A measure of efficiency of resource utilization is defined as the sum of the outputs divided by the sum of the inputs.

Product Life Cycle

The life of a product in a market, with respect to business sales and profits, changes over time. There are five stages to the product life cycle: product development, introduction, growth, maturity, and decline.

Product Life Cycle Management (PLM)

The process of managing the entire lifecycle of a product, from its conception, design, development, and manufacture, to the management of its introduction, growth, and decline.

Product Planning

The ongoing process of identifying and articulating market requirements that define a product's feature set is called product definition.

Product Support Integrator (PSI)

An entity performing as a formally bound agent (e.g., contract, MOA, MOU) is charged with integrating all sources of support, both public and private, defined within the scope of the PBL agreements to achieve the documented outcome.

Product Support Manager (PSM)

An overarching term characterizing the various service function titles that lead the development and implementation of product support and PBL strategies, ensuring the achievement of desired support outcomes during sustainment.

ProductSupportProvider(PSP)

Anyone who provides products or services in the sustenance of an acquisition system.