CHAPTER 9

1. a computer system that integrates application programs in accounting,

sales, manufacturing, and the other functions in a firm: enterprise
resource planning
2. the logic for determining the number of parts, components, and
materials needed to produce a product: materials requirements
planning
3. a time-phased plan specifying how many end items the firm plans to
build, and when master production schedul
4. a feature of MRP systems that identifies the difference between the
number of units currently included in the master schedule and the actual
customer orders : available to promise
5. the complete product description, listing the materials, parts, and
components, and also the sequence in which the product is created: bill
of materials
6. an MRP system that calculates the impact of a change in the MRP data:
net change systems

1. The design and execution of the processes that provide customers

with products and services they desire Customer Management
2. Inventory available when and where desired by customer Product
Availability
3. Time between start and end of activity - design, order, procurement,
production, delivery Lead Time
4. Unit Fill Rate
Units Delivered/Units
5. Line Fill Rate
Lines Delivered/Lines
6. Order Fill Rate
Orders delivered/Orders
7. Engineer to Order
Design and make to customer specifications
8. Make to Order
Make to customer demand from raw materials and components
9. Assemble to Order
Assemble to customer demand from generic subassemblies
10. Make to Stock
Build and stock in anticipation of customer demand
11. Service Reliability
Performance of all order related activities is error free
12. Perfect Order
 Delivered without failure in: complete, on time, damage free,
documentation correct
13. Customer Satisfaction
Meeting or exceeding customer expectation, including: reliability,
responsiveness, access, communication, credibility, security, courtesy,
competence, tangibles, knowing the customer
14. Customer Success
Helping customers to meet their real business requirements