Cloud ERP & Manufacturing Glossary

A system consisting of multiple computers that contain copies of data, which are located in different places on the network so clients can access the copy closest to them.

The top layer of the Cloud Computing Stack where applications interact with client web browsers. Examples: Gmail and Salesforce.com.

A computing environment (“the cloud”) consisting of networks, servers, data storage, application and services that can be easily managed and accessed through a networking protocol, usually the internet.

Cloud computing can be delivered on a public cloud (using the public internet), private cloud (using a private network), community cloud (using shared cloud resources) or hybrid cloud (a combination of public, private, or community clouds). The most common cloud computing service models used for ERP software are Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).

Cloud-based Enterprise Resource Planning (ERP) software designed to meet the business requirements of Engineer to Order (ETO) manufacturers. ETO manufacturers need Engineer to Order ERP that helps them build complex custom products based on constantly changing customer requirements and engineering revisions.

Rootstock Software offers Cloud ERP for ETO manufacturers that integrates and streamlines product management and Product Lifecycle Control (PLM); engineering management; scheduling and capacity planning; project management; and Material Requirements Planning (MRP).

Cloud-based Enterprise Resource Planning (ERP) software designed to help manufacturers in the high-tech and electronics industries manage high-volume production, deliver innovative products to market faster, and comply with stringent regulatory requirements.

Rootstock Software offers a modern Cloud ERP solution for high-tech and electronics manufacturers that automates supply chain processes and integrates engineering management, product management and Product Lifecycle Control (PLM); scheduling and capacity planning; and Material Requirements Planning (MRP).

Cloud-based Enterprise Resource Planning (ERP) software designed to help job shops manage dynamic manufacturing environments in order to meet the challenge of delivering more products to market in less time.

Rootstock Software offers a modern Cloud ERP solution for job shops that includes powerful engineering management tools; integrated scheduling and capacity planning and shop floor control; and complete project lifecycle tracking.

Cloud-based Enterprise Resource Planning (ERP) software designed to help machinery manufacturers reduce costs and lead times, and efficiently manage complex builds.

Rootstock Software offers flexible Cloud ERP for machinery manufacturers that supports multiple manufacturing modes and includes engineering management and scheduling and capacity planning tools.

Cloud-based Enterprise Resource Planning (ERP) software designed to meet the business requirements of wholesale distributors. ERP for distribution helps these companies manage every part of their supply chain, with complete and integrated sales, purchasing, warehousing, shipping and customer service functions.

Rootstock Software offers Cloud ERP for distribution that is fully integrated with Salesforce CRM.

Enterprise Resource Planning (ERP) software that uses cloud computing technology to give end users real-time access to business data stored and managed on secure remote servers, and the ability to run applications that use those resources to manage different functions in the company.

Cloud ERP software is based on the Sales as a Service (SaaS) cloud service model, whereby applications are delivered over the internet by the provider, so that the applications don’t have to be purchased, installed, and run on the customer’s computers.

Cloud ERP software has several well-known benefits, including low upfront costs, centralized data storage, scalability, on-demand real-time access to data and applications, and automation of formerly manual or disconnected tasks.

Cloud ERP software is often compared and contrasted with older on-premise ERP systems, which require servers to be located at the company’s site and maintained and updated by the company’s own IT department.

Cloud-based ERP software designed specifically for manufacturing companies. Cloud ERP for manufacturing integrates and automates manufacturing functions for discrete, process and multi-mode  manufacturers of all sizes. In this type of software, every department from inventory and planning to shop floor and supply chain management are connected to critical business data and to each other, resulting in streamlined workflows and increased efficiencies.

Also known as Cloud ERP for Manufacturing and Cloud-Based ERP for Manufacturing, the ideal Cloud ERP software for manufacturing is a scalable solution that increases productivity, reduces costs, uncovers actionable business insights, and improves customer satisfaction. Rootstock Software is a provider of such a solution on the Salesforce Cloud Platform.

Manufacturing software based on cloud computing technology. See also Cloud ERP Software for Manufacturing.

A collaborative cloud deployment model in which infrastructure is shared between several organizations from a specific community. In a community cloud, access is limited to a specific group of users or multiple groups with shared interests, such as mission, policy or security requirements. A community cloud is owned, managed and operated by members of the community, a third-party cloud provider, or by both together.

The costs of a community cloud are spread over fewer users than a public cloud (but more than a private cloud), so only some of the cost savings potential of cloud computing are realized.

The production of military or civilian aircraft, ships, vehicles, weaponry, and electronic systems. Aerospace and defense manufacturing are often grouped together into a single industry. See also Aerospace Manufacturing.

Enterprise Resource Planning (ERP) systems designed specifically for companies involved primarily in the distribution of products and services. ERP for distribution companies can be stand-alone systems,  such as ERP distribution software, or part of a more complete cloud-based ERP solution like that offered by Rootstock Software. See also Cloud ERP for Wholesale Distributors.

A manufacturing process in which a product is designed, engineered and finished after an order has been received. Engineer to Order manufacturers build complex or specialized products to the customer’s specifications and work with the customer throughout the process.

Widely used acronym for Enterprise Resource Planning.

Functionality built into cloud-based ERP software that allows manufacturers to automate the configuration of different product designs and include their associated inventory, labor, service, entitlements and other costs into their pricing for customers.

For example, the Sales Order Processing ERP application module from Rootstock Software includes customizable configuration management that helps manufacturers offer a wide variety of configurable products.

Enterprise Resource Planning (ERP) software designed to meet the business requirements of wholesale distributors. See also Cloud ERP for Wholesale Distributors.

Enterprise Resource Planning (ERP) software designed specifically for manufacturers in the aerospace and defense industries. See also Cloud ERP Software for Aerospace Manufacturers.

Force.com is the Platform as a Service (PaaS) offering from Salesforce.com. See also: PaaS

A cloud deployment model combining two or more cloud deployment models (private, community, or  public) that remain unique entities but are bound together by standardized or proprietary technology. A hybrid cloud allows data and applications to be moved and shared between cloud infrastructures.

In the last couple of years, hybrid clouds have become popular with large firms who want to enjoy some of the benefits of the cloud without giving up their investment in on-premise legacy ERP systems. These companies take an incremental or hybrid application approach. Some large ERP vendors sell hybrid cloud products so they can advertise a cloud solution, but implementation challenges remain, including high IT costs, and difficult and time-consuming integrations.

The production of hardware, machinery and other industrial components used in other industries. Industrial equipment manufacturers produce power and hand tools, polishing and metal-working machines, drills, nuts, bolts, screws, springs, valves, pneumatic hoses and other basic equipment, as well as generators, conveyors and heavy equipment.

A facility or company that manufactures small batches of different custom products. In a job shop, many products require a unique setup and a specific sequence of steps. Job shops are often companies that produce custom parts for other manufacturers and usually focus on customization and small production runs instead of volume and standardization.

A specific batch of an item that was received, stored, or shipped from a warehouse.

A facility in which machine tools are used to build and repair parts made of metals and other materials. Machine shops typically use drills, lathes, milling machines, presses, cutting and welding equipment, and grinding and polishing machines to build and repair machine tools, dies, and molds for such mass-produced parts as pistons, screws, or gears. The parts produced by a machine shop can be the end product or can be sold to manufacturers in other industries.

The design and production of machine products that require complex assembly operations. Machinery manufacturers use multiple metal forming processes to produce the different parts of a machine, and then assemble the parts together. Some manufacturers produce general purpose machinery for heating and air conditioning; commercial refrigeration equipment; and engine, turbine and power transmission equipment. Other companies produce machinery designed to be used in a particular industry, such as agriculture, construction and mining.

A single software application or a suite of applications that connect a company's manufacturing data from one or more sources to an integrated system and provides end-user access to employees who manage, report and analyze the data.

Manufacturing software typically includes functions for managing sales and orders, costing, engineering, supply chain, inventory, production, logistics, finances, data analytics and customer service. Depending on the vendor, manufacturing software may include any or all of these modules and may be designed for specific types of manufacturing, specific industries, or companies of specific sizes.

Manufacturing software evolved from early mainframe systems in the 1970s and Material Requirements Planning (MRP) systems in the 1970s and 1980s to on-premise enterprise resource planning (ERP) systems based on client-server technology. Today, advances in digital technologies and cloud computing have fueled the growth and popularity of cloud-based ERP software for manufacturing.

The production of any item or component used in the diagnosis, treatment, prevention or cure of medical conditions or diseases, or that affects the body through means other than chemical or metabolic reaction in humans or animals. In the United States, medical device manufacturers must comply with strict regulations established and monitored by the Food and Drug Administration (FDA).

Widely used acronym for Material Requirements Planning.

Multi tenancy is the property of multiple systems, applications or data from different enterprises hosted on the same physical hardware. Multitenancy is common to most cloud-based system.

A cloud service model that delivers the computing platform (operating system and associated services)  as a service over the internet by the provider.

With PaaS, companies develop their own software applications to run on a vendor’s application-hosting environment (the platform). The vendor provides and controls the programming languages, libraries, operating system, tools and services as well as the infrastructure resources, while customers focus on the applications themselves. Examples of PaaS include Salesforce and the Google App Engine.

The production of a single unit of a unique product with many nonstandard components using complex sets of activities that must be completed in a specific order within a given time period and within a given cost estimate. Generally, products produced by project manufacturers tend to be assembled in a fixed position layout because they are too large or too heavy to be produced on an assembly line. These products include ships, locomotives and aircraft.

Project manufacturers rely on Enterprise Resource Planning (ERP) systems that allow project-centric planning and tracking of sales, inventory control, shop floor control, MRP, purchasing and manufacturing cost control.

A cloud service model that delivers software applications over the internet. The SaaS vendor, not the customer, manages the application, including upgrades and maintenance. The customer simply subscribes to the service and accesses the software on the internet. Rootstock Manufacturing Cloud ERP and Salesforce CRM are both examples of SaaS.

The SaaS service model lets you access a vendor’s software applications on demand through the internet or a similar thin-client interface. The SaaS vendor manages the application, including upgrades and maintenance, and you simply subscribe to the service. Rootstock Manufacturing Cloud ERP and Salesforce CRM are both examples of Software as a Service.

Business processes required to place and track orders for goods or services. Sales order management is typically integrated into Cloud ERP software for manufacturing to help companies improve sales visibility and customer satisfaction, and process orders with a minimum of delays.

Rootstock Cloud ERP Software for manufacturing includes a Sales Order Management ERP application module.

Enterprise Resource Planning (ERP) software designed, built and hosted on the Salesforce Cloud Platform. When combined with Salesforce Customer Relationship Management (CRM) software, Cloud ERP for manufacturing allows a consistent set of customer data to be shared across all of the departments in a manufacturing company.

Cloud ERP on Salesforce from vendors like Rootstock Software gives manufacturing companies access to secure, real-time data so that inventory, supply chain and production managers can act on the same information to solve issues before they become significant problems. The ability to connect to a single set of customer data also breaks down departmental silos that serve as traditional obstacles to improvements in efficiency, productivity and growth.

Additionally, manufacturing firms can add more software applications to their Salesforce ERP from the Salesforce AppExchange to extend their Salesforce ERP solution.

The process of determining when and how much production capacity is needed to manufacture a product. Scheduling and capacity planning are typically integrated into manufacturing ERP software to help companies efficiently manage production based on several factors, including labor and machine availability, suppliers, waste, scrap, errors, defects, government regulations, and maintenance.

Rootstock Cloud ERP for manufacturing, supply chain and distribution includes an easy-to-use drag-and-drop scheduling and capacity planning module to help firms meet changing customer demand.

A manufacturing technique that uses a work order to approve and track the production of products and components throughout the shop floor. In shop order manufacturing, items do not need to be moved into and out of stock, thereby reducing material handling and ensuring an inventory record accuracy.

Modern Cloud ERP software, such as Rootstock Software, includes shop floor control functions that automate the tracking of work orders.

A method of assigning costs to inventory and products in which an expected cost is substituted for an actual cost in the accounting records, and records variances to show the difference between the two.