Manufacturing ERP terms, plain English.

Enterprise Resource Planning. An integrated software system that manages the core business processes of a manufacturer — finance, sales, purchasing, inventory, production, quality, and reporting — in a single database.

Singapore context: For Singapore SMB manufacturers, "ERP" usually refers to either an off-the-shelf product (SAP B1, Odoo, NetSuite) or a custom-built system that handles operational workflows while integrating with existing accounting software.

Material Requirements Planning. A calculation engine that determines what materials to order, in what quantities, and when, based on the production schedule and bill of materials.

Singapore context: MRP is a subset of ERP. Standalone MRP systems (Katana, MRPeasy) focus only on this calculation; full ERP systems include MRP as a module alongside finance, sales, and other functions.

Manufacturing Execution System. Real-time shop floor system that tracks production as it happens — job start/stop, quantity produced, defects, machine state.

Singapore context: MES sits between ERP (planning) and the shop floor (execution). For SG SMB manufacturers, MES functionality is often built into the manufacturing ERP rather than a separate system.

Product Lifecycle Management. System that manages product data — designs, BOMs, revisions, change requests — from concept through end of life.

Singapore context: PLM is most relevant for manufacturers with active product development. Many SG contract manufacturers do not need PLM because the customer owns the product design.

Warehouse Management System. Software that manages warehouse operations — goods receipt, putaway, picking, packing, cycle counting, lot/batch tracking.

Singapore context: For most SG SMB manufacturers, WMS is built into the manufacturing ERP rather than a separate system. A standalone WMS is justified when warehouse complexity exceeds production complexity.

Software as a Service. Software delivered via the cloud on a subscription basis, accessed through a browser.

Singapore context: Most modern manufacturing ERP is SaaS. The trade-off: lower upfront cost but recurring subscription that escalates with users and data volume.

Application Programming Interface. A defined way for two software systems to exchange data programmatically.

Singapore context: A manufacturing ERP's API quality determines how easily it integrates with accounting (Xero, MYOB), email (Resend), e-invoicing (PEPPOL), and other systems. Custom-built systems are API-first by design.

Bill of Materials. A structured list of the components, sub-assemblies, and raw materials required to produce a finished product, with quantities and units of measure.

Singapore context: BOMs can be single-level (just the immediate components) or multi-level (the components of the components). Singapore contract manufacturers often have one BOM per customer per product.

The sequence of operations required to produce a product — which machines, which workstations, in what order, with what setup and cycle times.

Singapore context: Job shops have variable routings (each order may follow a different path). Make-to-stock manufacturers have fixed routings.

Production model where products are manufactured only after a customer order is received, often to customer-specific specifications.

Singapore context: Most SG SMB manufacturers in precision engineering, fabrication, and contract manufacturing are MTO operations.

Production model where products are manufactured to forecast and held in inventory before customer orders arrive.

Singapore context: Common for consumer goods, packaging, and standard industrial products. The risk is inventory carrying cost and obsolescence.

Production model where each customer order requires engineering design work before manufacturing begins.

Singapore context: Common in custom industrial equipment, marine fabrication, and project-based construction materials. ETO operations have unique BOMs per order.

Work in Progress. Inventory that has entered the production process but is not yet a finished good.

Singapore context: WIP value sits on the balance sheet and ties up working capital. Accurate WIP tracking is a primary reason manufacturers move off Excel.

Overall Equipment Effectiveness. A measure combining availability (uptime), performance (speed), and quality (yield) into a single percentage.

Singapore context: OEE is the standard manufacturing efficiency metric. Above 85% is world-class for discrete manufacturing.

A pull-based scheduling system where downstream demand signals trigger upstream production or replenishment.

Singapore context: Used heavily in automotive supply chains. SG automotive parts manufacturers typically receive kanban call-off orders from OEM customers.

Singapore's nationwide e-invoicing network based on the PEPPOL standard, operated by IMDA. Enables B2B and B2G invoicing through a single standardised format.

Singapore context: IRAS is progressively mandating InvoiceNow for GST-registered businesses. Manufacturers need ERP systems that can generate PEPPOL-compliant XML invoices.

Pan-European Public Procurement Online. The international standard for electronic procurement and invoicing documents used by Singapore InvoiceNow.

Singapore context: PEPPOL BIS Billing 3.0 is the specific specification used for SG B2B e-invoicing. Documents are exchanged as standardised XML files between certified Access Points.

Goods and Services Tax. Singapore's consumption tax, currently at 9%. Manufacturers must register for GST if annual revenue exceeds S$1 million.

Singapore context: GST treatment varies by transaction type — standard-rated (9%), zero-rated (exports), exempt, and out-of-scope. ERP systems must apply the correct treatment automatically and produce the GST F5 return.

Productivity Solutions Grant. Singapore government grant administered by IMDA covering up to 50% of qualifying pre-approved software and equipment costs.

Singapore context: PSG covers a specific list of pre-approved ERP solutions and digital tools. Custom-built ERP typically does not qualify for PSG — EDG is the alternative for custom builds.

Enterprise Development Grant. Singapore government grant from Enterprise Singapore covering up to 50% of qualifying transformation project costs, including custom software development.

Singapore context: EDG can cover custom ERP builds, but applicants must apply and receive approval before work begins. The application process involves an Approved Management Consultant (AMC).

Inland Revenue Authority of Singapore. Singapore's tax authority, responsible for income tax, GST, and InvoiceNow administration.

Singapore context: IRAS publishes the InvoiceNow mandate timeline and GST regulations that manufacturing ERP systems must comply with.

Singapore Food Agency. Regulator for food manufacturing in Singapore, including food safety, GMP, and recall management.

Singapore context: Food manufacturers must maintain batch records and recall traceability that meet SFA audit standards. Recall trace time is a common SFA audit focus.

Health Sciences Authority. Regulator for medical devices, pharmaceuticals, cosmetics, and health products in Singapore.

Singapore context: Medical device and pharma manufacturers must maintain documentation aligned with HSA registration and audit requirements, including Device History Records and GMP batch records.

Civil Aviation Authority of Singapore. Regulator for aerospace and MRO operations in Singapore.

Singapore context: Approved aerospace maintenance organisations must produce CAAS Form 1 release certificates and maintain serialised traceability for every component touched.

The ability to identify the history, location, and disposition of materials, components, and finished products throughout the production process.

Singapore context: Forward traceability: which finished products used a given material lot? Backward traceability: which material lots went into a given finished product? Both queries must return results in minutes, not hours.

Certificate of Conformance. A document declaring that a product meets specified requirements, typically issued with each shipment.

Singapore context: Generated automatically by the ERP from production and inspection data. Replaces the manual PowerPoint document that many SG manufacturers still assemble.

Certificate of Analysis. A document showing the results of laboratory or inspection tests performed on a batch of material or product.

Singapore context: Common in food, chemical, and pharmaceutical manufacturing. The ERP links CoAs from incoming materials to the production batch and generates outbound CoAs for customers.

Non-Conformance Report. A formal record of a quality deviation from specification, with root cause analysis and corrective action plan.

Singapore context: Required by ISO 9001 and customer audits. ERP quality modules track NCRs from detection through resolution and effectiveness verification.

Corrective and Preventive Action. A systematic process for investigating quality issues, implementing corrections, and preventing recurrence.

Singapore context: Required for ISO 9001, ISO 13485 (medical devices), and IATF 16949 (automotive). The system must track CAPA effectiveness over time.

Production Part Approval Process. The automotive industry's standard process for proving that a manufacturer can produce a part meeting customer requirements.

Singapore context: Required for SG automotive parts manufacturers serving OEM customers. PPAP packages include FAI, control plans, capability studies, and material declarations.

First Article Inspection. The first production run of a new or revised part is fully inspected against specification, with results documented.

Singapore context: Required by aerospace, automotive, and many industrial customers. The ERP can generate the FAI form from the BOM and populate measurements from inspection records.

Good Manufacturing Practice. A system of standards ensuring consistent quality in pharmaceutical, food, and cosmetic manufacturing.

Singapore context: GMP requires documented procedures, batch records, equipment qualification, and validated processes. The ERP must support electronic batch records and the audit trail.

Tracking actual costs against a specific production order or project — material consumed, labour hours, machine time, subcontractor charges, and overhead.

Singapore context: For job shops and contract manufacturers, job costing is the difference between profitable growth and invisible margin erosion. The ERP compares actual job cost to the quoted price.

A pre-determined cost for a product or process, used as a baseline for variance analysis.

Singapore context: Standard cost is what the product should cost. Actual cost is what it did cost. The variance is the diagnostic signal.

Total Cost of Ownership. The total cost of acquiring, implementing, and operating a system over its useful life, typically 3-5 years.

Singapore context: TCO is the right comparison basis between off-the-shelf and custom ERP. Upfront cost comparison is misleading — annual licence, maintenance, and customisation costs matter.

Return on Investment. The financial return generated by an investment, expressed as a percentage or payback period.

Singapore context: ERP ROI for SG manufacturers typically comes from six categories: labour efficiency, scrap reduction, inventory reduction, delivery improvement, margin improvement, and management time recovered.

Purchase Order. A document issued by a buyer committing to purchase specified items at specified prices from a specified supplier.

Singapore context: PO management is one of the workflows where SG SMB manufacturers commonly outgrow email. The ERP tracks PO from issue through goods receipt to invoice matching.

Goods Received Note. A record confirming that materials have been received, inspected, and accepted into inventory.

Singapore context: GRN triggers inventory update, supplier invoice matching, and (where applicable) incoming quality inspection workflow.

The time between placing a purchase order and receiving the goods.

Singapore context: Lead times feed into MRP calculations. Inaccurate lead times produce either material shortages (lead time too short) or excess inventory (lead time too long).

Minimum Order Quantity. The smallest quantity a supplier will accept for an order, or that a manufacturer will accept from a customer.

Singapore context: MOQ creates inventory carrying decisions — order more than needed (carrying cost) or split orders (transaction cost). The ERP's purchasing module factors MOQ into order suggestions.

First Expiry, First Out. A picking rule where the lot with the earliest expiry date is issued first, regardless of receipt date.

Singapore context: Required for food, pharma, and chemical manufacturers with expiring materials. The ERP enforces FEFO automatically — the alternative is warehouse staff memory.

First In, First Out. A picking rule where the lot received earliest is issued first.

Singapore context: Common for materials without expiry dates where rotation matters (e.g., paint, adhesives). The ERP enforces FIFO at picking.