Question 1

What is Order-to-Cash (O2C)?

Accepted Answer

The end-to-end business process from receiving a customer order through to collecting payment. Includes order management, credit checking, fulfillment, shipping, invoicing, and cash collection.

Question 2

What is Procure-to-Pay (P2P)?

Accepted Answer

The complete procurement lifecycle from identifying a need, selecting a supplier, creating a purchase order, receiving goods, processing the invoice, and making payment.

Question 3

What is Days Sales Outstanding (DSO)?

Accepted Answer

The average number of days it takes to collect payment after a sale. Calculated as (Accounts Receivable / Revenue) x Number of Days. Lower DSO means faster cash collection.

Question 4

What is Overall Equipment Effectiveness (OEE)?

Accepted Answer

A measure of manufacturing productivity calculated as Availability x Performance x Quality. An OEE of 85% or higher is considered world-class. It identifies the percentage of planned production time that is truly productive.

Question 5

What is Enterprise Resource Planning (ERP)?

Accepted Answer

Integrated software that manages core business processes — finance, HR, manufacturing, supply chain, procurement, and more. Major vendors include SAP S/4HANA, Oracle ERP Cloud, and Microsoft Dynamics 365.

Question 6

What is Customer Relationship Management (CRM)?

Accepted Answer

Software that manages customer interactions, sales pipelines, marketing campaigns, and service operations. Major vendors include Salesforce, Microsoft Dynamics 365, and HubSpot.

Question 7

What is SAP S/4HANA?

Accepted Answer

SAP's next-generation ERP suite built on the HANA in-memory database. Replaces SAP ECC/R3 with simplified data models, real-time analytics, and a Fiori user experience. Available as Cloud or On-Premise.

Question 8

What is Oracle ERP Cloud (Fusion)?

Accepted Answer

Oracle's cloud-native ERP platform covering financials, procurement, project management, and supply chain. Part of the Oracle Fusion Cloud Applications suite.

Question 9

What is On-Time In-Full (OTIF)?

Accepted Answer

Measures the percentage of orders delivered to customers on time and with the complete quantity ordered. A critical supply chain performance metric. World-class is 95%+.

Question 10

What is DMAIC (Define-Measure-Analyze-Improve-Control)?

Accepted Answer

The core Six Sigma improvement methodology. Define the problem, Measure current performance, Analyze root causes, Improve the process, and Control to sustain gains.

Question 11

What is Six Sigma?

Accepted Answer

A data-driven methodology for eliminating defects and reducing process variation. Achieving Six Sigma means only 3.4 defects per million opportunities (DPMO). Uses statistical tools and the DMAIC framework.

Question 12

What is Lean Manufacturing?

Accepted Answer

A systematic approach to minimizing waste within manufacturing systems while maximizing productivity. Originated from Toyota Production System. Focuses on eliminating 8 wastes: Transport, Inventory, Motion, Waiting, Overproduction, Over-processing, Defects, and Skills underutilization.

Question 13

What is Master Black Belt (MBB)?

Accepted Answer

The highest level of Six Sigma certification. MBBs train and mentor Black Belts and Green Belts, develop deployment strategies, and lead organization-wide quality improvement programs.

Question 14

What is Accounts Receivable (AR)?

Accepted Answer

Money owed to a company by its customers for goods or services delivered but not yet paid for. AR management directly impacts cash flow, working capital, and DSO.

Question 15

What is Accounts Payable (AP)?

Accepted Answer

Money a company owes to its suppliers and vendors for goods and services received. Efficient AP management captures early payment discounts and maintains supplier relationships.

Enterprise Glossary

Order-to-Cash (O2C)

Procure-to-Pay (P2P)

Days Sales Outstanding (DSO)

Overall Equipment Effectiveness (OEE)

Enterprise Resource Planning (ERP)

Customer Relationship Management (CRM)

SAP S/4HANA

Oracle ERP Cloud (Fusion)

On-Time In-Full (OTIF)

DMAIC (Define-Measure-Analyze-Improve-Control)

Six Sigma

Lean Manufacturing

Master Black Belt (MBB)

Accounts Receivable (AR)

Accounts Payable (AP)

Working Capital

Supply Chain Management (SCM)

Demand Planning & Forecasting

Inventory Management

ETL (Extract, Transform, Load)

Change Data Capture (CDC)

Data Integration

iPaaS (Integration Platform as a Service)

API (Application Programming Interface)

Customer 360

Master Data Management (MDM)

FMEA (Failure Mode and Effects Analysis)

Statistical Process Control (SPC)

Total Productive Maintenance (TPM)

Kaizen (Continuous Improvement)

Value Stream Mapping (VSM)

Digital Twin