Industry Terminology

Num A B C D E F G H I J K L M N O P Q R S T U V W




O&O: Operational & Organizational


Object-Oriented (OO): The use of coding techniques and tools that incorporate computer programs into discrete reusable elements (objects) with associated properties (e.g., data, data manipulation/actions, inheritance). A firm's entire set of applications could conceivably be built from one library of objects. See Java. Could provide flexibility and economy in systems development.


Obsolete Inventory: Inventory for which there is no forecast demand expected. A condition of being out of date. A loss of value occasioned by new developments that place the older property at a competitive disadvantage.


OC: Order Cycle - time and/or operations between order placement and final delivery.


OCR-A: Optical character recognition font sometimes used at retail. Becoming rare.


ODBC: Open database connectivity. Standards that simplify integration of different systems' databases with each other.


OE: Order Entry. See also OP.


OEM: Original equipment manufacturer. The supplier that manufactures a key component for another firm's product.


OF: Order Fill: percentage of all orders fulfilled without relying on re-stocking.


OLAP: On-Line Analytical Processing. See Data retailing. Using a decision support system to access a data warehouse. Allows fast and efficient analysis of data that would be slow and difficult in a transaction-oriented system. See OLTP. OLTP: On-Line Transaction Processing. A class of systems that efficiently handle immediately-acquired active data, such as production data, orders being entered, etc. Good for managing sales and purchasing transactions, but poor for analyzing them for trends.


Omni-Directional: Said of scanners that can read a bar code no matter how its orientation has been rotated.


OMS: Order Management System or "Order Management Software" .


On-hand Adjustment: the act in which the inventory level is being adjusted for a specific item.


Online: Having direct access to the computer. Changes, additions, and deletions are immediately updated.


OOS: Out of Stock: avoidable condition!


OP: Order Processing. See also OE.


Open System: Widely-misused term describing software and hardware. Open indicates that they conform to open standards and facilitate integration of hardware and software from different manufacturers.


Open-to-Buy: A way to manage inventory in which authorizations to purchase a dollar volume within a category are made to a buyer without being committed to specific suppliers.


Operating System: Low-level program that improves upon the raw utility of the computer system hardware to reduce the size and complexity of applications and to make computer operation easier. Governs the entire operation of the computer (e.g. MS-DOS, Windows, Mac OS, Unix).


Operational Performance Measurements: 1) In traditional management, performance measurements related to machine, worker, or department efficiency or utilization. These performance measurements are usually poorly correlated with organizational performance. 2) In theory of constraints, performance measurements that link causally to organizational performance measurements. Throughput, inventory, and operating expense are examples. Also see: Performance Measures


OPR: Outward Processing Relief: Customs term (see also IPR).


OPT: Optimized Production Technology


Optimization: The process of making something as good or as effective as possible with given resources and constraints.


Option: A choice that must be made by the customer or company when customizing the end product. In many companies, the term option means a mandatory choice from a limited selection.


OR: Operations Research


Order Batching: Practice of compiling and collecting orders before they are sent in to the manufacturer.


Order Cycle: The time and process involved from the placement of an order to the receipt of the shipment.


Order Entry and Scheduling: The process of receiving orders from the customer and entering them into a company's order processing system. Orders can be received through phone, fax, or electronic media. Activities may include "technically"examining orders to ensure an orderable configuration and provide accurate price, checking the customer's credit and accepting payment (optionally), identifying and reserving inventory (both on hand and scheduled), and committing and scheduling a delivery date.


Order Fulfillment: The ability to fulfill customer demand by accurately forecasting the inventory and distribution of products to satisfy customer demand.


Order Lead Time: Time from transmission of an order to a supplier for a current product through delivery.


Order Management: The planning, directing, monitoring and controlling of the processes related to customer orders, manufacturing orders and purchase orders. Regarding customer orders, order management includes order promising, order entry, order pick, pack and ship, billing and reconciliation of the customer account. Regarding manufacturing orders, order management includes order release, routing, manufacture, monitoring, and receipt into stores or finished goods inventories. Regarding purchasing orders, order management includes orde replacement, monitoring receiving, acceptance, and payment of supplier.


Order Management Costs: One of the elements comprising a company's total supply-chain management costs. These costs consist of the following: 1. New Product Release Phase-In and Maintenance: This includes costs associated with releasing new products to the field, maintaining released products, assigning product ID, defining configurations and packaging, publishing availability schedules, release letters and updates, and maintaining product databases. 2. Create Customer Order: This includes costs associated with creating and pricing configurations to order and preparing customer order documents. 3. Order Entry and Maintenance: This includes costs associated with maintaining the customer database, credit check, accepting new orders, and adding them to the order system as well as later order modifications. 4. Contract/Program and Channel Management: This includes costs related to contract negotiation, monitoring progress, and reporting against the customer's contract, including administration of performance or warranty related issues. 5. Installation Planning: This includes costs associated with installation engineering, scheduling and modification, handling cancellations, and planning the installation. 6. Order Fulfillment: This includes costs associated with order processing, inventory allocation, ordering from internal or external suppliers, shipment scheduling, order status reporting, and shipment initiation. 7. Distribution: This includes costs associated with warehouse space and management, finished goods receiving and stocking, processing shipments, picking and consolidating, selecting carrier, and staging products/systems. 8. Transportation, Outbound Freight and Duties: This includes costs associated with all company paid freight duties from point-of-manufacture to end-customer or channel. 9. Installation: This includes costs associated with verification of site preparation, installation, certification, and authorization of billing. 10. Customer Invoicing/Accounting: This includes costs associated with invoicing, processing customer payments, and verification of customer receipt


Order Picking: Selecting or "picking"the required quantity of specific products for movement to a packaging area (usually in response to one or more shipping orders) and documenting that the material was moved from one location to shipping. Also see: Batch Picking, Discrete Order Picking, Zone Picking


Order Point: The level at which falling inventory triggers a replenishment order.


Order Point Order Quantity System: The inventory method that places an order for a lot whenever the quantity on hand is reduced to a predetermined level known as the order point. Also see: Fixed Reorder Quantity Inventory Model, Hybrid system


Order Processing: Activities associated with filling customer orders.


Order Quantity: The minimum amount a buyer must order for a supplier to accept the order.


OS&D: See Over, Short and Damaged


OSDG: Short for over, short and damage.


OTB: Open-to-buy.


Out Of Stock: The state of not having inventory at a location and available for distribution or for sell to the consumer (zero inventory).


Outbound: A driver that is beginning a trip and has just departed.


Output: The information obtained after the computer has completed the requested functions.


Outsource: To utilize a third-party provider to perform services previously performed in-house. Examples include manufacturing of products and call centre/customer support.


Outsourcing: Provision of a company function (such as MIS or transportation) by an outside company.


Over, short and damaged (OS&D): This is typically a report issued at warehouse when goods are damaged. Used to file claim with carrier.


Overage: More freight received than is noted on the freight bill or more merchandise received than was ordered.


Overhead: Costs incurred in the operation of a business that cannot be directly related to a specific individual product or service.


Over-the Road: An independent carrier contracted by a vendor to deliver merchandise to the point of destination.

Back to top

© Copyright 2004. Media Services, Calgary Board of Education. All rights reserved