P

P&D:
See: Pickup and Delivery
P&P:
See: Pick and Pass
P2P:
See: Path to Profitability
P2P:
See: Peer to Peer
Pack Out:
In a fulfillment environment this refers to the operations involved in packaging and palletizing individual units of product for introduction into the warehouse distribution environment. For example, a contract 3PL may received or assemble units of product which need to be placed into retail packaging, then over-packed with a carton and then palletized.
Package to Order:
A postponement strategy where products are received in bulk or manufactured without final packaging to allow for a variety of packaging options for a single product. An example is where a product is shipped to retailers with packaging designed specifically for the individual retailer.
Packaging Indicator (PI):
Tthe first digit of the U.P.C. shipping container (EAN/UCC128) code that identifies the packaging level.
Packing and Marking:
Sometimes referred to as preservation, packaging and marking, these are the activities related to packing for shipping by placing goods into designated containers, and labeling (marking) the container with customer prescribed destination and other information.
Packing List:
List showing merchandise packed and all particulars. Normally prepared by shipper but not required by carriers. Copy is sent to consignee to help verify shipment received, it may be inside of the box or attached to the outside in a clear envelope. The physical equivalent of the electronic Advanced Ship Notice (ASN).
Pallet:
The platform which cartons are stacked on and then used for shipment or movement as a group. Pallets may be made of wood or composite materials. Some pallets have electronic tracking tags (RFID) and most are recycled in some manner.
Pallet Jack :
Material handling equipment consisting of two broad parallel pallet forks on small wheels used in the warehouse to move pallets of product, but not having the lifting capability of a forklift. It may be a motorized unit guided by an operator who stands on a platform; or it may be a motorized or manual unit guided by an operator who is walking behind or beside it. Comes as a "single" (one pallet) or "double" (two pallets).
Pallet Rack:
A single or multi-level structural storage system that is utilized to support high stacking of single items or palletized loads.
Pallet Tag:
The bar coded sticker that is placed on a unit load or partial load, typically at receiving. The pallet tag can be scanned with an RF gun.
Pallet Ticket:
A label to track pallet-sized quantities of end items produced to identify the specific sub lot with specifications determined by periodic sampling and analysis during production.
Pallet Wrapping Machine:
A machine that wraps a pallet’s contents in stretch-wrap to ensure safe shipment.
Parcel Case Strapping:
The act of consolidating two or more individual cartons or cases of a shipment together with strapping, to form one single unit in an effort to improve efficiency and reduce costs.
Parcel Shipment:
Parcels include small packages like those typically handled by providers such as UPS and FedEx.
Pareto:
A means of sorting data. For example, the number of quality faults by frequency of occurrence. This is an analysis comparing cumulative percentages of the rank ordering of costs, cost drivers, profits, or other attributes to determine whether a minority of elements have a disproportionate impact. Another example is identifying that 20% of a set of independent variables is responsible for 80% of the effect. Also see: 80/20 Rule
Part Period Balancing (PPB):
A lot size technique that uses look ahead and look back functions to consider additional periods in modifying an initial calculation based on least total cost. Also see: Discrete Order Quantity, Dynamic Lot Sizing.
Part Standardization:
A strategy designed to eliminate excessive SKU counts (part numbers) from inventory control systems though the use of common parts and components. Also knows as ‘rationalizing’.
Passenger-Mile:
A measure of output for passenger transportation; it reflects the number of passengers transported and the distance traveled; a multiplication of passengers hauled and distance traveled.
Password:
A private code required to gain access to a computer, an application program, or service.
Past Performance Automated Information System (PPAIS):
A U.S. DoD central database that allows program managers and contracting officials to review the past performance records of potential bidders. This Web page, available at http://dodppais.navy.mil, provides users with access to more than 8,600 past-performance report cards, which embody more than $300 billion in defense contracts
Path to Profitability (P2P):
The step-by-step model to generate earnings.
Pattern Recognition:
A technique of looking at raw data and classifying it based on either experience or statistical information drawn out from the patterns.
Pay-on-Use:
Pay-on-Use is a process where payment is initiated by product consumption, i.e., consignment stock based on withdrawal of product from inventory. This process is popular with many European companies.
Payment:
The transfer of money, or other agreed upon medium, for provision of goods or services.
Payroll:
Total of all fully burdened labor costs, including wage, fringe, benefits, overtime, bonus, and profit sharing.
PBIT:
See: Profit Before Interest and Tax
PBL:
See: Performance Based Logistics
P-Cards:
See: Buying Cards.
PDA:
See: Personal Digital Assistant
PDCA:
See: Plan-Do-Check-Action
PDM:
See: Product Data Management
Peak Demand:
The time period during which the quantity demanded is greater than during any other comparable time period.
Peer to Peer (P2P):
A computer networking environment which allows individual computers to share resources and data without passing through an intermediate network server.
Pegged Requirement:
An MRP component requirement that shows the next-level parent item (or customer order) as the source of the demand.
Pegging:
A technique in which a ERP system traces demand for a product by date, quantity, and warehouse location.
Percent of Fill:
Number of lines or quantity actually shipped as a percent of the original order. Synonym: Customer Service Ratio.
Per Diem:
1) The rate of payment for use by one railroad of the cars of another. 2) A daily rate of reimbursement for expenses.
Perfect Order:
The definition of a perfect order is one which meets all of the following criteria:Delivered complete, with all items on the order in the quantity requestedDelivered on time to customer’s re­quest date, using the customer’s definition of on time deliveryDelivered with complete and accurate documentation supporting the order, including packing slips, bills of lading, and invoicesDelivered in perfect condition with the correct configuration, customer ready, without damage, and faultlessly in­stalled (as applicable)
Perfect Order Index (POI):
A value which is calculated by cross-multiplying the criteria which are a part of the perfect orderCalculaton = (% on time) X (% complete) X (% damage free) X (% complete documentation)
Performance-Based Logistics (PBL):
Originally a U.S. Government program, PBL describes the purchase of assets with a complete package of services and support as an integrated, affordable, performance package designed to optimize system readiness and meet performance goals through long-term support arrangements with clear lines of authority and responsibility.
Performance and Event Management Systems:
The systems that report on the key measurements in the supply chain -- inventory days of supply, delivery performance, order cycle times, capacity use, etc. Using this information to identify causal relationships to suggest actions in line with the business goals.
Performance Measures:
Indicators of the work performed and the results achieved in an activity, process, or organizational unit. Performance measures should be both non-financial and financial. Performance measures enable periodic comparisons and benchmarking. For example, a common performance measure for a distribution center is % of order fill rate.Attributes of good performance measurement include the following:Measures only what is important - the measure focuses on key aspects of process performance.Can be collected economically - processes and activities are designed to easily capture the relevant information.Are visible - the measure and its causal effects are readily available to everyone who is measured.Is easy to understand - the measure conveys at a glance what it is measuring and how it is derived.Is process oriented - the measure makes the proper trade-offs among utilization, productivity, and performance.Is defined and mutually understood - the measure has been defined and mutually understood by all key parties (internal and external).Facilitates trust - the measure validates the participation among various parties and discourages “game playing.”Are usable - the measure is used to show progress and not just data that is “collected.” Indicated performance versus Data.Also see: Performance Measurement Program
Performance Measurement Program:
A performance measurement program goes beyond just having performance metrics in place. Many companies do not realize the full benefit of their performance metrics because they often do not have all of the necessary elements in place that support their metrics.Typical characteristics of a good performance measurement program include the following:Metrics that are aligned to strategy and linked to the “shop floor” or line level workersA process and culture that drives performance and accountability to delivery performance against key performance indicators.An incentive plan that is tied to performance goals, objectives and metricsTools and technology in place to support easy data collection and use. This often includes the use of a “dashboard” or “scorecard” to allow for ease of understanding and reporting against key performance indicators.Also see: Performance Measures, Dashboard, Scorecard, Key Performance Indicator
Performance Measurement Units:
Specific measurements such as time, cost, error rates, accuracy rates, and milestones.
Period Order Quantity:
A lot size technique that suggests orders with quantities that cover requirements for a variable number of periods based on order and holding costs, as opposed to a fixed period quantity that uses a standard number of periods. Also see: Discrete Order Quantity, Dynamic Lot Sizing
Periodic Review System:
See: Fixed Reorder Cycle Inventory Model
Permanent Storage:
Permanent storage is an area of the warehouse used for (or the goods themselves) a class of goods intended to be in storage for longer than 90 days.
Permit:
A grant of authority to operate as a contract carrier
Perpetual Inventory:
The system of record-keeping where book inventory is tracking by recording all receipts issues and adjustments as they occur. Records may be kept manually on logs or stock cards, or in a computer database.
Perpetual Inventory:
An inventory record keeping system where each transaction in and out is recorded and a new balance is computed. Perpetual inventory records may be kept manually on paper logs or stock cards, or in a computer database.
Personal Digital Assistant (PDA):
A computer term for a handheld device that combines computing, telephone/fax, and networking features. PDA examples include the Palm and Pocket PC devices. A typical PDA can function as a cellular phone, fax sender, and personal organizer. Unlike portable computers, most PDAs are pen-based, using a stylus rather than a keyboard for input. This means that they also incorporate handwriting recognition features. Some PDAs can also react to voice input by using voice recognition technologies. Some PDAs and networking software allow companies to use PDAs in their warehouses to support wireless transaction processing and inquiries.
Personal Discrimination:
Charging different rates to shippers with similar transportation characteristics, or vice versa.
Phantom Bill of Material:
A BOM for a product or group of parts that is not normally built and stocked, but is immediately used in production. MRP processors ignore the phantom and instead include the component parts in production orders and for planning purposes. A phantom BOM is often used for convenience where a set of parts has identical usage across many bills of material. Synonym: Pseudo Bill of Material. Also see: Blow Through
Physical Distribution:
The movement and storage functions associated with finished goods from manufacturing plants to warehouses and to customers; also, used synonymously with business logistics.
Physical Supply:
The movement and storage functions associated with raw materials from supply sources to the manufacturing facility.
PI:
See: Packaging Indicator
Pick and Pass:
Pick and pass involves segregating your DC pick area into pick zones where the operators perform picks only in the zones assigned to them and the order picking container travels (is passed) from one zone to another using conveyors or pick carts reducing the travel time for pickers.
Pick-by-Light:
A laser identifies the bin for the next item in the rack; when the picker completes the pick, the bar code is scanned and the system then points the laser at the next bin.
Pick/Pack:
Picking of product from inventory and packing into shipment containers.
Pick List:
A list of items to be picked from stock in order to fill an order; the pick list generation and the picking method can be quite sophisticated.
Pick Module:
A dedicated area specifically designed to enhance pick operations, usually supported by a belt conveyor belt or roller assembly to move picked products to a packaging / shipping area.Pick modules are often multi-level rack structures using pallet or case flow storage and pick-to-light systems.
Pick on Receipt:
Product is receipted and picked in one operation (movement); therefore the product never actually touches the ground within the warehouse. It is unloaded from one vehicle and re-loaded on an outbound vehicle. Related to Cross Docking.
Pick-to-Clear:
A method often used in warehouse management systems that directs picking to the locations with the smallest quantities on hand.
Pick-to-Carton:
Pick-to-carton logic uses item dimensions/weights to select the shipping carton prior to the order picking process. Items are then picked directly into the shipping carton.
Pick-to-Light:
Pick-to light systems consist of lights and LED displays for each pick location. The system uses software to light the next pick and display the quantity to pick.
Pick-to-Trailer:
Order-picking method where the order picker transports the materials directly from the pick location to the trailer without any interim checking or staging steps.
Pick-Up Order:
A document indicating the authority to pick up cargo or equipment from a specific location.
Picking:
The operations involved in pulling products from storage areas to complete a customer order.
Picking by Aisle:
A method by which pickers pick all needed items in an aisle regardless of the items’ ultimate destination; the items must be sorted later. A component of Wave Picking.
Picking by Source:
A method in which pickers successively pick all items going to a particular destination regardless of the aisle in which each item is located.
Pickup and Delivery:
A type of transportation, usually local, where the carrier follows a regular route making deliveries and picking up shipment.
Piece Count:
Number of individual cases, packages or bundles in an intermodal trailer or container.
Piggyback:
Terminology used to describe a truck trailer being transported on a railroad flatcar.
Pin Lock:
A hard piece of iron, formed to fit on a trailer’s pin, that locks in place with a key to prevent an unauthorized person from moving the trailer.
Place Utility:
A value created in a product by changing its location. Transportation creates place utility.
Plaintext:
Data before it has been encrypted or after it has been decrypted, e.g., an ASCII text file.
Plan Deliver:
The development and establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet delivery requirements.
Plan-Do-Check-Action (PDCA):
A four step quality improvement cycle, based on a process described by Walter Shewhart, that involves continuous improvement based on analysis, design, execution and evaluation. Sometimes referred to as plan/do/study/act, it emphasizes the constant attention and reaction to factors that affect quality. Synonyms: Shewhart Cycle. Also see: Deming Circle
Plan Make:
The development and establishment of courses of action over specified time periods that represent a projected appropriation of production resources to meet production requirements.
Plan Source:
The development and establishment of courses of action over specified time periods that represent a projected appropriation of material resources to meet supply chain requirements.
Plan Stability:
The difference between planned production and actual production, as a percentage of planned production.Calculation: [(Sum of Monthly Production Plans) + (Sum of the absolute value of the difference between planned and actual)]/[Sum of Monthly Production Plans]Note: Base Production Plan is the three month removed plan
Planned Date:
The date an operation, such as a receipt, shipment, or delivery of an order is planned to occur.
Planned Order:
An order proposed by an MRP system to cover forecast demand in a future period. Planned orders will changes dynamically over time to accommodate changes in forecasts and actual usage until they become ‘firm planned orders’ either through manual intervention or by virtue of the associated period moving within a planning horizon. The next step in the process would be to create an actual purchase or production order. Also see: Planning Time Fence, Firm Planned Order
Planned Receipt:
Any line item on an open purchase or production order which has been scheduled, but not yet received into stock.
Planning Bill:
See: Planning Bill of Material
Planning Bill of Material:
A BOM which has been created facilitate the practice of forecasting by family group rather than by individual product. It specifies the products as components and the expected percent of each in terms of overall family usage or sales. The MRP system will then use the family level forecast to derive individual product forecasts using the relative percentages. Also see: Hedge Inventory, Production Forecast, Pseudo Bill of Material
Planning Calendar:
See: Manufacturing Calendar
Planning Fence:
See: Planning Time Fence
Planning Horizon:
In an MRP system this is the length of time into the future (number of periods or days) for which the planning system will generate requirements. The horizon should be set long enough out to accommodate the longest cumulative lead time for any item in the population. Also see: Cumulative Lead Time, Planning Time Fence
Planning Time Fence:
A point, usually a set length of time beyond the current date, used as a boundary for making changes in a planning system. It is used to stabilize the master production schedule by allowing various changes to planned orders only beyond the fence however changes under certain circumstances can be made within the fence. Also see: Cumulative Lead Time, Demand Time Fence, Firm Planned Order, Planned Order, Planning Horizon, Time Fence
Planogram:
The end result of analyzing the sales data of an item or group of items to determine the best arrangement of products on a store shelf. The process determines which shelf your top-selling product should be displayed on, the number of facings it gets, and what best to surround it with. It results in graphical picture or map of the allotted shelf space along with a specification of the facing and deep.
Plant Finished Goods:
Finished goods inventory held at the end manufacturing location.
PLU:
See: Price Look-Up
PLM:
See: Product Lifecycle Management
PM:
See: Preventative Maintenance
PO:
See: Purchase Order
POD:
See: Proof of Delivery
Point-of-Purchase (POP):
A retail sales term referring to the area where a sale occurs, such as the checkout counter. POP is also used to refer to the displays and other sales promotion tools located at a checkout counter.
Point of Sale (POS):
1) The time and place at which a sale occurs, such as a cash register in a retail operation, or the order confirmation screen in an on-line session. Supply chain partners are interested in capturing data at the POS, because it is a true record of the sale rather than being derived from other information such as inventory movement. 2) Also a national network of merchant terminals, at which customers can use client cards and personal security codes to make purchases. Transactions are directed against client deposit accounts. POS terminals are sophisticated cryptographic devices, with complex key management processes. POS standards draw on activity-based management (ABM) network experiences and possess extremely stringent security requirements.
Point of Sale Information:
Price and quantity data from retail locations as sales transactions occur.
Point-of-Use Delivery:
This is when components are delivered directly to where they will be used instead of stored in inventory in a warehouse or distribution center.
Point-of-Use Inventory:
Material used in production processes that is physically stored where it is consumed.
Poka Yoke (mistake-proof):
The application of simple techniques that prevent process quality failure. A mechanism that either prevents a mistake from being made or makes the mistake obvious at a glance.
Police powers:
The United States constitutionally granted right or the states to establish regulations to protect the health and welfare of its citizens; truck weight, speed, length, and height laws are examples.
Pooling:
A shipping term for the practice of combining shipment from multiple shippers into a truckload in order to reduce shipping charges.
POP:
See: Point-of-Purchase
Port:
A harbor, airport or other facility where ships will anchor, planes will land or trucks and trains will enter.
Port Authority:
A state or local government that owns, operates, or otherwise provides wharf, dock, and other terminal investments at ports.
Port of Discharge:
Port where vessel is off loaded.
Port of Entry:
A port at which foreign goods are admitted into the receiving country.
Port of Loading:
Port where cargo is loaded aboard the vessel.
Portal:
Websites that serve as starting points to other destinations or activities on the Internet. Initially thought of as a "home base" type of web page, portals attempt to provide all Internet needs in one location. Portals commonly provide services such as e-mail, online chat forums, shopping, searching, content, and news feeds.
POS:
See: Point of Sale
Possession Utility:
The value created by marketing’s effort to increase the desire to possess a good or benefit from a service.
Post-Deduct Inventory Transaction Processing:
A method of inventory bookkeeping where the book (computer) inventory of components is reduced after issue. When compared to a real-time process, this approach has the disadvantage of a built-in differential between the book record and what is physically in stock. Consumption can be based on recorded actual use, or calculated using finished quantity received times the standard BOM quantity (backflush). Also see: Backflush, Pre-Deduct Inventory Transaction Process
Postponement:
The delay of final activities (i.e., assembly, production, packaging, etc.) until the latest possible time. A strategy used to eliminate excess inventory in the form of finished goods which may be packaged in a variety of configurations, and to maximize the opportunity to provide a customized end product to the customer.
POU:
See: Point-of-Use
Power-By-the-Hour (PBH):
Under PBH, an hourly rate is negotiated and the contractor is paid in advance based on the forecasted operational hours for the system. Actual hours are reconciled with projected hours and overages and shortfalls are either added to or credited from the next period’s forecasted amounts. Since the contractor receives funding independent of failures he is then incentivized to overhaul the asset the first time it fails so it stays in operation as long as possible. Bottom line: under the PBH concept, the fewer times the contractor touches a unit, the more money he makes.
PPAIS:
See: Past Performance Automated Information System
PPB:
See: Part Period Balancing
PPP:
See: Public Private Partnering
Pre-Bid Supplier Qualification Evaluation:
Preliminary audit of new suppliers which helps to identify capacity of suppliers and their responsibility to fulfill contract requirements and ability to meet with specifications defined in a system of quality controlling and in the principles of supplier’s policy.
Pre-Deduct Inventory Transaction Processing:
A technique used in inventory management where the book inventory is reduced prior to the actual physical action. This can apply to receipts and issues where the transaction is completed as soon as the order is released to production or received onto the dock. Also see: Backflush, Post-Deduct Inventory Transaction Processing
Pre-Expediting:
The act of making an inquiry about an open order as a way of ensuring that delivery is going to be made per agreement.
Pre-Receiving:
A process that allows companies to prepare for the reception of incoming materials, products, and goods. Pre-receiving allows companies to pay for the materials before receipt to determine how the incoming supplies will be stored or used.
Prepaid:
A freight term, which indicates that charges are to be paid by the shipper. Prepaid shipping charges may be added to the customer invoice, or the cost may be bundled into the pricing for the product.
Present Value:
The value on a given date of a future payment or series of future payments, discounted to reflect the time value of money and other factors such as investment risk. Present value calculations are widely used in business and economics to provide a means to compare cash flows at different times on a meaningful "like to like" basis.
Preventative Maintenance (PM):
Regularly scheduled maintenance activities and practices that seek to prevent unscheduled machinery downtime by collecting and analyzing data on equipment conditions. The analysis is then used to predict time-to-failure, plan maintenance, and restore machinery to good operating condition. Predictive maintenance systems typically measure parameters on machine operations, such as vibration, heat, pressure, noise, and lubricant condition. In conjunction with computerized maintenance management systems (CMMS), predictive maintenance enables repair-work orders to be released automatically, repair-parts inventories checked, or routine maintenance scheduled.
Price Erosion:
The decrease in price point and profit margin for a product or service, which occurs over time due to the effect of increased competition or commoditization.
Price Look-Up (PLU):
Used for retail products sold loose, bunched or in bulk (to identify the different types of fruit, say). As opposed to UPC (Universal Product Codes) for packaged, fixed weight retail items. A PLU code contains 4-5 digits in total. The PLU is entered before an item is weighed to determine a price.
Primary-Business Test:
A test used by the ICC to determine if a trucking operation is bona fide private transportation; the private trucking operation must be incidental to and in the furtherance of the primary business of the firm.
Primary Defect Analysis:
See: Defect Analysis
Primary Highways:
Highways that connect lesser populated cities with major cities.
Primary Manufacturing Strategy:
Your company’s dominant manufacturing strategy. The Primary Manufacturing Strategy generally accounts for 80-plus % of a company’s product volume. According to a study by Pittiglio Rabin Todd and McGrath (PRTM), approximately 73% of all companies use a make-to-stock strategy.
PRIME QR:
Product Replenishment and Inventory Management Edge for Quick Response.
Private Carrier:
A carrier that provides transportation service to the firm and that owns or leases the vehicles and does not charge a fee. Private motor carriers may haul at a fee for wholly-owned subsidiaries.
Private Label:
Products that are designed, produced, controlled by, and which carry the name of the store or a name owned by the store; also known as a store brand or dealer brand. An example would be Wal-Mart's "Sam's Choice" products.
Private Warehouse:
A warehouse that is owned by the company using it.
Pro Number:
Any progressive or serialized number applied for identification of freight bills, bills of lading, etc.
Proactive:
The strategy of understanding issues before they become apparent and presenting the solution as a benefit to the customer, etc.
Process:
A series of time-based activities that are linked to complete a specific output.
Process Benchmarking:
The activity associated with comparing a process in use to one used by another organization (internal or external) Benchmarks may include quantitative metrics as well as functional steps (qualitative). Also see: Benchmarking, Best-in-Class, Competitive Benchmarking
Process Improvement:
Designs or activities, which improve quality or reduce costs, often through the elimination of waste or non-value-added tasks.
Process Manufacturing:
The segment of the manufacturing industry which is associated with production of products using formulas and manufacturing recipes, and can be contrasted with discrete manufacturing, which is concerned with bills of material and routing.
Process Optimization:
The study of process adjustment in order to optimize some specified set of parameters without violating some constraint. Some of the most common goals of process optimization are minimizing cost, and maximizing throughput and/or efficiency.
Process Yield:
The resulting output from a process. An example would be a quantity of finished product output from manufacturing processes.
Procurement:
The activities associated with acquiring products or services. The range of activities can vary widely between organizations to include all of parts of the functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations. Synonym: Purchasing.
Procurement Services Provider (PSP):
A services firm that integrates procurement technologies with product, sourcing, and supply management expertise, to provide outsourced procurement solutions. A PSP serves as an extension of an organization's existing procurement infrastructure, managing the processes and spending categories and procurement processes that the organization feels it has opportunities for improvement but lacks the internal expertise to manage effectively.
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 Configurator:
A software tool which provides the capability of creating a specific end item version for products which have a number of optional components. Use in the design-to-order, engineer-to-order, or make-to-order environments.
Product Configuration:
The arrangement of parts or components to satisfy a customer’s demand by creating a product.
Product Data Management (PDM):
A technology solution which provides for a single, centralized data repository that enables authorized users throughout a company to access and update current product information, while ensuring they follow specific procedures. These systems typically link and consolidate information from multiple enterprise areas which control various aspects of product data such as engineering, manufacturing, finance and sales. 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. They must then be related to each other in context (also known as SKU, Item Code or Number, or other such name).
Product Family:
A set of products which are considered as a single group when creating forecasts for planning purposes. See: Planning Bill of Material
Product Incubator:
The controlled environmental conditions that allow for the research, development, and testing of a new or redefined product.
Product Life Cycle:
The life of a product in a market with respect to business sales and profits 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 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.
Product Support Integrator (PSI):
An entity performing as a formally bound agent (e.g. contract, MOA, MOU) charged with integrating all source of support, public and private, defined within the scope of the PBL agreements to achieve the documented outcome. Activities coordinated by support integrators can include, as appropriate, functions provided by organic organizations, private sector providers, or a partnership between organic and private sector providers.
Product Support Manager (PSM):
An overarching term characterizing the Various service function title, (i.e. Assistant PM for Logistics, System Support Manager, etc.) who leads the development and implementation of the product support and PBL strategies and ensure achievement of desired support outcomes during sustainment. The PSM employs a PSI, or a number of PSIs as appropriate, to achieve those outcomes.
Product Support Provider (PSP):
Anyone who provides products or services in the sustainment of and acquisition system.
Product Velocity:
The number of units per time period a company can sell.
Production Calendar:
See: Manufacturing Calendar
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 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 creation of detailed optimized plans and schedules taking into account the 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 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; defined as the sum of the outputs divided by the sum of the inputs.
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.
Profitability Analysis:
The analysis of profit derived from cost objects to improve or optimize profitability. Multiple views may be analyzed such as market segment, customer, distribution channel, product families, products, technologies, platforms, regions, manufacturing capacity, etc
Profit Before Interest and Tax (PBIT):
The financial profit generated prior to the deduction of taxes and interest due on loans. Also called operating profit.
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.
Pro-Forma:
A type of quotation or offer that may be used when first negotiating the sales 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, that advises the buyer of the particulars and value of the goods. 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 promotions 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 identification of freight bills, bills of lading, etc.
Proof of Delivery (POD):
Information supplied by the carrier containing 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; used to overcome competitive disadvantages of combination rates.
Protocol:
Communication standards that determine message content and format, enabling uniformity of transmissions.
Pseudo Bill of Materials:
See: Phantom Bill of Materials
PSP:
See: Procurement Services Provider
Public Private Partnering (PPP): A
n agreement between a government entity and one ormore 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. A public warehouse will generally use their own equipment and staff however agreements may be made where the client either buys or subsidizes equipment. Public warehouse fees are usually 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 space requirements of a private warehouse. Also see: 3PL
Public Warehouse Receipt:
The basic document issued by a public warehouse manager that is the receipt for the goods given to the warehouse manager. The receipt can be either negotiable or nonnegotiable.
Pull-Based Customer Replenishment Signals:
A signal based on actual demand and consumption from customers that trigger the issue of a reorder of product or materials.
Pull Signal:
See: Pull-Based Customer Replenishment Signals
Pull or Pull-through distribution:
Supply-chain action initiated by the customer. Traditionally, the supply chain was pushed; manufacturers produced goods and "pushed" them through the supply chain while and the customer had no control. In a pull environment, a customer's purchase sends replenishment information back through the supply chain from retailer to distributor to manufacturer, so goods are "pulled" through the supply chain.
Pull Ordering System:
A system in which each warehouse controls its own shipping requirements by placing individual orders for inventory with the central distribution center. This is a replenishment system where inventory is "pulled" into the supply chain (or "demand chain" by POS systems, or ECR programs), and is associated with "build to order" systems.
Pup:
A 28-foot trailer, used mostly in less than truckload business.
Purchase Order (PO):
The purchaser’s authorization used to formalize a purchase transaction with a supplier. The physical form or electronic transaction a buyer uses when placing order for merchandise.
Purchase Price Variance:
The difference between the actual vendor invoice price or manufacturing cost and the expected or standards cost..
Purchase Price Discount:
A pricing structure in which the seller offers a lower price if the buyer purchases a larger quantity.
Purchasing:
The functions associated with buying the goods and services required by the firm.
Pure Raw Material:
A raw material that does not lose weight in processing
Push Back Rack:
Utilizing wheels in the rack structure, this rack system allows palletized goods and materials to be stored by being pushed up a gently graded ramp. Stored materials are allowed to flow down the ramp to the aisle. This rack configuration allows for deep storage a each rack level.
Push Distribution:
The process of building product and pushing it into the distribution channel without receiving any information regarding requirements. Also see: Pull or Pull-Through Distribution
Push Ordering System:
A situation in which a firm makes inventory deployment decisions at the central distribution center and ships to its individual warehouses accordingly.
Push Technology:
Webcasting (push technology) is the prearranged updating of news, weather, or other selected information on a computer user's desktop interface through periodic and generally unobtrusive transmission over the World Wide Web (including the use of the Web protocol on Intranet). Webcasting uses so-called push technology in which the Web server ostensibly “pushes” information to the user rather than waiting until the user specifically requests it.
Put Away:
Removing the material from the dock (or other location of receipt), transporting the material to a storage area, placing that material in a staging area, and then moving it to a specific lo­cation and recording the movement and identification of the location where the material has been placed.
Put Away:
The activities involved in moving materials from a receiving area or the end of a production process into inventory stock locations.
Put-to-Light:
A method that uses lights to direct the placement of materials. Most often used in batch picking to designate the tote to place picked item into.