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.

Product Velocity

The number of units a company can sell per time period.

Profitability Analysis

The analysis of profit derived from cost objects is done to improve or optimize profitability. Multiple views may be analyzed, such as market segment, customer, distribution channel, product families, products, technologies, platforms, regions, and manufacturing capacity, etc.

Profitable to Promise

This is effectively a promise to deliver a certain order on agreed terms, including price and delivery. Profitable-to-Promise (PTP) is the logical evolution of Available-to-Promise (ATP) and Capable-to-Promise (CTP). While the first two are necessary for profitability, they are not sufficient. For enterprises to survive in a competitive environment, profit optimization is a vital technology.

Profit Before Interest and Tax (PBIT)

The financial profit generated prior to the deduction of taxes and interest due on loans is also called operating profit.

Profit Management

The strategy and decision of how to deliver activities that support the delivery of value to the customer, the cost of channel engagement, and product/customer profitability, and the assets required to deliver value.

Profit ratio

The percentage of profit to sales, that is profit divided by sales.

Pro-Forma

A pro forma is a type of quotation or offer that may be used when initially negotiating the sale of goods or services. If the pro forma is accepted, then the terms and conditions of the pro forma may become the request.

Pro Forma Invoice

An invoice, forwarded by the seller of goods prior to shipment, advises the buyer of the particulars and value of the goods. It is usually required by the buyer in order to obtain an import permit or letter of credit.

Promotion

The act of selling a product at a reduced price, or a buy one-get one free offer, for the purpose of increasing sales.

Promotion Planning

Supports sales promotion management and covers both forecasting and evaluation of results. Promotion Planning assesses the impact of promotions on sales volumes, turnover, and margins, supporting planners in the selection of products and markets to promote.

Pro Number

Any progressive or serialized number applied for the identification of freight bills, bills of lading, etc.

Proof of delivery (POD)

Signed by the recipient, this document verifies that the products were delivered in acceptable condition.

Proof of Delivery (POD)

Information supplied by the carrier includes the name of the person who signed for the shipment, the time and date of delivery, and other shipment delivery-related information. POD is also sometimes used to refer to the process of printing materials just prior to shipment (Print on Demand).

Proportional Rate

A rate lower than the regular rate for shipments that have prior or subsequent moves is used to overcome competitive disadvantages of combination rates.

Protocol

Communication standards determine message content and format, enabling uniformity of transmissions.

Pseudo Bill of Materials

A bill of materials that exists only for reference purposes and is not used in the production process is also known as a phantom bill of materials.

PSP

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

Public Private Partnering (PPP)

An agreement between a government entity and one or more private industry or other entities to perform work or utilize facilities and equipment, the Public-Private Partnerships initiative is directed toward improving the output and performance of DoD organic activities through increased participation by the private sector via industrial partnering.

Public Warehouse

A business that provides short- or long-term storage to a variety of businesses, usually on a month-to-month basis, is called a public warehouse. A public warehouse generally uses its own equipment and staff; however, agreements may be made where the client either buys or subsidizes equipment. Public warehouse fees usually consist of a combination of storage fees (per pallet or actual square footage) and transaction fees (inbound and outbound). Public warehouses are most often used to supplement the space requirements of a private warehouse. Also, see Contract warehouse and 3PL.

Public Warehouse Receipt

The basic document issued by a public warehouse manager is the receipt for the goods given to the warehouse manager. The receipt can be either negotiable or non-negotiable.