TENET

QUESTION

10-8

7-5

4-1

DEFINITIONS

Leadership

Governance, Risk and Compliance

PMO

GRC

PMO - Program Management Office, folks who manage programs

GRC - Governance, Risk and Compliance framework

Balance Scorecard

Cash Conversion Cycle

EDI

EDI

EDI - Electronic Data Interchange, method to send purchase orders, shipments electronically under standard formats

S&OP Processes

Structure, costs/ownership

S&OP

SC

Sales & Operations Planning, a process/forum to balance demand/supply for the company

SC - Supply Chain

S&OP Processes

Techniques & technology

ERP

S&OP

SC

ERP - Enterprise Resource Planning, a method and solution that ties all departments’ information in one repository and captures and manages every business transaction

Sales & Operations Planning, a process/forum to balance demand/supply for the company

SC - Supply Chain

S&OP Processes

Process Optimization

S&OP

Sales & Operations Planning, a process/forum to balance demand/supply for the company

S&OP Processes

Customer Collaboration

ATP

CTP

ATP - Available to Promise, a method/calculation looking at available finished goods inventory to satisfy a customer order

CTP - Capable to Promise, ATP method, plus it looks at what is planned to be delivered from production, by quantity, by date, to further provide a customer delivery date

S&OP Processes

Product Portfolio Management-PPM

S&OP

NPI

Sales & Operations Planning, a process/forum to balance demand/supply for the company

NPI - New Product Introduction, term used to describe the process of introducing new products into the portfolio

S&OP Processes

Metrics of Success

VaR

TtR

Resiliency Index

VaR - Value at Risk, metric used to turn risk assessments into $$. Includes Annual Revenue*TtR*Probability of occurrence

TtR - Time to Recover, metric used in VaR calculation. Means—How long will it take to get back to normal operations, hours, days, weeks or months.

Resiliency Index, initially fostered by Gartner, but CISCO revamped it. It’s  an index used by CISCO to measure supplier resiliency.

Info Systems

Business Systems

ERP

ERP - Enterprise Resource Planning, a method and solution that ties all departments’ information in one repository and captures and manages every business transaction

Info Systems

Data Standards

XML

XML

SCADA

XML - Extensible Markup Language (XML) is a markup language and file format for storing, transmitting, and reconstructing arbitrary data. It defines a set of rules for encoding documents in a format that is both human-readable and machine-readable.

SCADA - SCADA (Supervisory control and data acquisition) is a control system architecture comprising computers, networked data communications and graphical user interfaces for high-level supervision of machines and processes. It also covers sensors and other devices, such as programmable logic controllers, which interface with process plant or machinery.

Integrated Supply Chain

PUSH - pull supply chain planning

Profit Velocity

Profit Velocity- Profit velocity is a concept used to decide which of several alternative products to manufacture. It is defined as the profit generated per minute of production time for a product¹. 

Demand Management

Customer Focus

Profit Velocity

RONA

Profit Velocity - Profit velocity is a concept used to decide which of several alternative products to manufacture. It is defined as the profit generated per minute of production time for a product¹. 

RONA - Return on Net Assets, Return on net assets (RONA) is a measure of financial performance calculated as net profit divided by the sum of fixed assets and net working capital. Net profit is also called net income.

Demand Management

Demand Shaping

Profit Velocity

SC

Profit Velocity - Profit velocity is a concept used to decide which of several alternative products to manufacture. It is defined as the profit generated per minute of production time for a product¹. 

SC - Supply Chain

Demand Management

Customer Communication/Collaboration

VMI

VMI - Vendor Managed Inventory, a method supported by computer software to actively evaluate a supplier’s material at a customer’s site and automatically replenish in an orderly fashion to minimize stock outs.

Supply Chain Processes

Focus

RONA

Profit Velocity

RONA - Return on Net Assets, Return on net assets (RONA) is a measure of financial performance calculated as net profit divided by the sum of fixed assets and net working capital. Net profit is also called net income.

Profit Velocity - Profit velocity is a concept used to decide which of several alternative products to manufacture. It is defined as the profit generated per minute of production time for a product¹. 

Supply Chain Processes

Exception Management

CTP

CTP - Capable to Promise, ATP method, plus it looks at what is planned to be delivered from production, by quantity, by date, to further provide a customer delivery date

Supply

Commodity/cost management

SRM

SRM - Supplier Resource Management is a business initiative that many companies undertake to build mutually beneficial relationships with suppliers. Well-designed SRM programs help companies to increase collaboration by identifying the right suppliers with whom to partner. Top business drivers for implementing SRM include cost optimization, risk mitigation, top-line growth from supplier innovation, operational process improvements and preferential treatment from suppliers as a customer of choice

Supply

Supplier Integration

EDI

EDI - Electronic Data Interchange, method to send purchase orders, shipments electronically under standard formats

Supply

Warehouse Replenishment

DC

DRP

DC - Distribution centres

DRP - Distribution Requirements Planning, a systematic approach, much like MRP, that identifies stock levels at DC’s, and then replenishes those stock levels, automatically, with orders back to the manufacturer.

Risk Mitigation Planning

Risk Mitigation Investment

ROI

ROI - Return on Investment – usually stated within years or months.

Risk Mitigation Planning

Integration of Tactical RMP with S&OP

S&OP

S&OP

S&OP

S&OP - Sales & Operations Planning, a process/forum to balance demand/supply for the company

Risk Mitigation Planning

Integration of RMP with Strategic Planning

SBU

SBU

SBU - Strategic Business Unit, normally a division of a larger enterprise

Risk Mitigation Planning

Engagement of key stakeholders

RMP

RMP - Risk Mitigation Planning

Risk Mitigation Planning

RMP cycles of improvement

RMP

RMP - Risk Mitigation Planning

Agility

Speed Metrics

Balanced Scorecard

BSC - A business management framework. SEE the TOOL’S GENESIS REPORT for definitions of all tenets.