Key Industry Terms

Helpful Definitions

Below is a list of key industry terms. This is a partial list of key terms listed here as an aid to our clients.

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Industry Terms
	Key Terms
ABC	Activity Based Costing
ABM	Activity Based Management
ANOVA	Analysis of Variance
AOQ	Average Outgoing Quality
ASP	Application Service Provider
B2B	Business to Business
B2C	Business to Consumer
BOM	Bill of Materials
BTO	Built to Order
CAD	Computer Aided Design
CAM	Computer Aided Manufacturing
CRM	Customer Relationship Management
CTQ	Critical to Quality
CTR	Cycle Time Reduction
EDI	Electronic Data Interchange
FG	Finished Goods
FGI	Finished Goods Inventory
FIFO	First In First Out
GAAP	Generally Accepted Accounting Principles
IFO	Income From Operations
ISO	International Standards Organization
IT	Information Technology
JIT	Just in Time
KPI	Key Performance Indicator
LCL	Less than Carload
LIFO	Last In First Out
LSL	Lower Specification Limit
LTL	Less than Truckload
MAP	Manufacturing Automation Protocol
MBO	Management by Objective
MIS	Management Information Systems
MRP	Materials Requirements Planning
MSDS	Material Safety Data Sheet
MTO	Made to Order
NPV	Net Present Value
OEM	Original Equipment Manufacturer
ROA	Return on Assets
ROI	Return on Investment
ROP	Re-Order Point
USL	Upper Specification Limit
VMI	Vendor Managed Inventory
WIP	Work In Process