Chapter 3 - Key Terms - Professor McBride PDF

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Answer Sheet – Key Terms Chapter 3 – Materials Define each of the key terms listed below. These terms can be located in the reading material. Upload the completed document to Blackboard.

1. Capacity: The maximum amount that something can contain or accomplish. 2. Dependent requirement: In SAP, the items listed in the bill of materials are referred to as dependent requirements. The bill of materials is dependent upon the materials listed within it to create the finished good. 3. Document principle: Documents must be generated and stored in the system for every transaction or event that causes a change in stock. 4. Finished goods: The materials a company produces through its manufacturing execution (ME) activities 5. Extending a view: If you want to add a new view to that saved material, such as Plant or Storage Location view, you do not change the material, but rather you extend it. When you extend, you are not creating the material again itself but creating new views. To do this, you use the create function in SAP again and this time select the organizational structure you want to create the data for and then the specific view you want to add. 6. Good receipt: When the business receives and accepts the purchased materials (raw materials/trading goods). 7. Independent requirement: The finished good is referred to as an independent requirement. It is independent because it stands alone and represents the specific product we sell to our customer 8. Inventory Management: Management of material stocks on a quantity and value basis – how much we have and what is it worth. Planning, entry, and documentation of all Goods Movements (inbound and outbound). Carrying out the Physical Inventory. 9. Material: Any item that an enterprise procures, produces, keeps in stock, and/or sells. 10. Material master: Contains all the information a company needs to manage a material. It contains descriptions and the information necessary for the company to procure, produce, store, and sell the material.

11. Material master record: Central repository of data for all materials in SAP. Each material gets exactly one master record supporting the data integrity and SAP organizational structure. The master data record is assigned a unique alpha/numeric material number. 12. Material type: Raw materials, finished goods, and trading goods. 13. Materials Management (MM): Includes the processes that support the creation, internal storage, and movement of materials. 14. Goods movement type: Any time a company receives materials that they have purchased (Inbound) or ships goods to complete a sales order (Outbound). 15. Multi-level BOM: The multi-level bill of material means that an item in the BOM has its’ own BOM.

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Non-stock item: Material for direct consumption and not put away in inventory. Raw materials: Materials used to manufacture other materials. Retail: Sale being sold directly to the “end consumer” of the product. Routing: Each instruction step lists the tools you need, the parts to use, and the specific order of assembly. The routing represents a series of sequential steps (operations) that must be carried out to manufacture a material. 20 Single-level BOM: The single-level BOM directly below represents another product.

21 Stock item: Put away in inventory, also referred to as stock. 22 Trading goods: Materials we buy from other companies and we resell to our customers. 23 Variant BOM: When you replace one material component with another (variable) to make a different product. 24 View: A collection of fields that belong to a specific organizational structure. These views are represented on specific tabs that must be completed. 25 Wholesale: Customers that Pen Inc. sells to directly, that in turn sells the products to others. 26 Work center: A specific physical location in a plant. Simply stated, it is where work is done. A work center can be defined any way the company chooses and is generally organized in a manner that aids in the tracking and management of the work being executed. A work center can be a single person, a group of people, a machine, or groups of machines. An entire assembly line can be a work center. A work center is most likely a combination of these things....