Diversified Manufacturing Industry Terminology

5S

A workplace organization method to improve safety, quality, and efficiency via five steps: Sort, Set in Order, Shine, Standardize, Sustain.

We ran a 5S blitz on Line 3 to free up space; The audit scored our 5S at 4.3/5 with gaps in Sustain; Shadow boards were added as part of 5S Set in Order.

8D

Eight-Discipline problem-solving framework used to contain, analyze, correct, and prevent recurring issues.

Submit an 8D to the customer within 24 hours of the complaint; D3 containment is in place while we work on root cause; The cross-functional 8D team closed the CAPA last week.

Additive Manufacturing (AM)

Layer-by-layer fabrication of parts (3D printing) using materials like polymers, metals, or composites.

We printed a lightweight fixture with AM to cut lead time; AM let us consolidate four machined parts into one; Spare-parts inventory was reduced by on-demand AM.

Advanced Product Quality Planning (APQP)

A structured method to ensure product quality planning from concept through launch, often used in automotive.

We passed the APQP Gate 3 design review; The PFMEA and Control Plan are key APQP deliverables; APQP timing slipped due to late supplier feasibility signoff.

Andon

A visual or audible signal that alerts teams to issues on the line and can trigger help or a stop.

The operator pulled the andon cord when torque failed; The andon board shows line status and response time; Andon calls dropped 30% after the poka-yoke fix.

Bill of Materials (BOM)

A hierarchical list of raw materials, components, and subassemblies needed to build a finished product.

Engineering released a new multi-level BOM for Rev C; The MRP run explodes the BOM to plan purchases; The ECO added a resistor to the BOM of the PCB.

Capital Expenditure (CAPEX)

Funds used by a company to acquire or upgrade long-term assets like machinery or facilities.

The CAPEX request for a new CNC cell was approved; We need a 24-month payback to justify this CAPEX; CAPEX is constrained this year, prioritize debottlenecking.

Control Plan

A documented plan describing process controls, measurements, and reactions to ensure product quality.

Update the control plan after the tooling change; Inspectors use the control plan IDs for sampling; The control plan is part of the PPAP package.

Corrective and Preventive Action (CAPA)

A systematic approach to fix identified problems and prevent their recurrence.

We opened a CAPA for the audit nonconformity; The CAPA includes a preventive poka-yoke; CAPA effectiveness will be verified in 60 days.

Cost of Goods Sold (COGS)

Direct costs attributable to producing goods sold, including materials, direct labor, and manufacturing overhead.

Material inflation increased COGS by 4%; Standard cost roll-ups drive COGS in our P&L; Reducing scrap reduces COGS and improves margin.

Cost of Poor Quality (CoPQ)

The total cost incurred due to defects, scrap, rework, warranty, and quality-related inefficiencies.

CoPQ ran at 6% of sales last quarter; Warranty returns doubled our external failure cost; Training reduced rework and lowered CoPQ.

Critical To Quality (CTQ)

Measurable characteristics that are vital to meeting customer requirements and performance expectations.

Hold the bore diameter CTQ to Cpk ≥ 1.33; We translated VOC into CTQs for the new platform; CTQs flow down into the control plan and SPC charts.

Cycle Time

The time required to complete one unit of work or one cycle of a process.

The bottleneck cycle time is 58 seconds; SMED cut changeover, reducing average cycle time; Compare cycle time to takt time for balance.

Design for Manufacturability and Assembly (DFMA)

Engineering practices that simplify manufacturing/assembly to reduce cost, time, and risk.

DFMA review removed 12 fasteners; We widened tolerances to ease manufacturability; DFMA cut touch time by 25% on final assembly.

Enterprise Resource Planning (ERP)

Integrated software that manages core business processes like finance, supply chain, production, and inventory.

The MRP run in ERP drives our buy plan; We issued components to the work order in ERP; ERP lot control supports traceability.

Environmental, Health, and Safety (EHS)

Programs and regulations that ensure a safe workplace and minimize environmental impact.

Our EHS audit flagged chemical storage; TRIR dropped after the new LOTO training; EHS reviews CAPEX for compliance.

Failure Mode and Effects Analysis (FMEA)

A proactive risk assessment to identify failure modes, their effects, and mitigations (uses severity, occurrence, detection, and action priority).

The PFMEA highlighted a high-AP welding risk; We linked DFMEA controls to the control plan; APs went down after installing sensors.

Gage Repeatability and Reproducibility (Gage R&R)

A measurement system analysis that quantifies variation from the gage and appraisers.

Our %GRR was 12%, we need a better fixture; We trained appraisers to improve R&R; MSA results were included in PPAP.

Gemba

The actual place where work is done; going to see processes firsthand to understand and improve.

Leadership does weekly gemba walks on A shift; At the gemba we saw excess WIP and motion waste; Gemba notes fed the kaizen backlog.

Industrial Internet of Things (IIoT)

Networked sensors, devices, and analytics applied to industrial operations for visibility and optimization.

IIoT nodes feed real-time OEE dashboards; Vibration data enabled predictive maintenance; Edge gateways buffer data during outages.

ISO 9001

An international standard for quality management systems focused on consistent processes and continual improvement.

We passed our ISO 9001 surveillance audit; Document control must comply with ISO 9001; The NC was closed with a verified CAPA per ISO.

Just-in-Time (JIT)

A production and inventory strategy to deliver materials exactly when needed, minimizing inventory and waste.

We set up JIT deliveries from the stamping supplier; The kanban loop enforces JIT replenishment; JIT risk increased during the port disruption.

Kaizen

Continuous improvement philosophy and events that engage teams to remove waste and improve flow.

The team ran a 5-day kaizen on kitting; We hold daily kaizen huddles at the SQDC board; Kaizen ideas cut walking distance by 40%.

Kanban

A visual pull system using signals (cards, bins, e-kanban) to trigger replenishment based on consumption.

We implemented two-bin kanban for fasteners; E-kanban alerts the supplier to ship; WIP limits are set by kanban sizing.

Lead Time

The total elapsed time from order initiation to delivery, including waiting and processing.

Lead time fell from 21 to 12 days after SMED; Supplier lead time variability drove expedites; Shorter lead time improved on-time delivery.

Maintenance, Repair, and Operations (MRO)

Activities and supplies for maintaining equipment and facilities that are not part of the final product.

The MRO storeroom added min-max controls; CMMS shows PM compliance for MRO; Consolidating MRO vendors cut costs 8%.

Manufacturing Execution System (MES)

Software that manages and tracks production on the shop floor, including WIP, labor, quality, and genealogy.

Operators clock in/out of jobs in MES; MES holds nonconforming lots automatically; The dispatch list in MES drives sequencing.

Mean Time Between Failures (MTBF)

A reliability metric indicating the expected time between inherent failures of a system.

The redesign increased MTBF by 30%; We model warranty based on MTBF and duty cycle; Low MTBF at the filler hurts OEE availability.

Mean Time To Repair (MTTR)

The average time required to diagnose and repair a failed component or system.

Kitting spares cut MTTR by 25%; Cross-training maintenance techs reduced MTTR; CMMS tracks MTTR by asset.

Overall Equipment Effectiveness (OEE)

A composite metric of equipment productivity: Availability × Performance × Quality.

OEE improved from 58% to 72% on Line 2; The loss tree shows big hits in micro-stops; We set a 5-point OEE target for the quarter.

Plan-Do-Check-Act (PDCA)

An iterative cycle for continuous improvement: plan a change, implement, verify results, and standardize/adjust.

We used PDCA to stabilize the paint booth; The Check step showed takt misses at Station 4; Document the new method in Standard Work per PDCA.

Poka-Yoke

Error-proofing techniques or devices that prevent mistakes or make them immediately detectable.

A go/no-go gauge prevents wrong bushing use; The connector is keyed as a poka-yoke; A light curtain stops the press if hands enter.

Process Capability (Cp, Cpk)

Statistics that quantify how well a process fits within specification limits (higher is better; accounts for centering with Cpk).

Customer requires Cpk ≥ 1.33 on CTQs; Post-tooling change, we ran a capability study; Low Cpk triggered a process centering activity.

Product Lifecycle Management (PLM)

Processes and systems that manage product data, changes, and versions from concept through retirement.

The ECN was routed in PLM; PLM is our master for CAD and BOMs; PLM integration reduces ERP master-data errors.

Production Part Approval Process (PPAP)

A standardized process to confirm a supplier can produce parts that meet requirements consistently at rate.

We submitted a Level 3 PPAP with PSW; Dimensional layouts were attached to the PPAP; Customer rejected PPAP due to incomplete MSA.

Pull System

A production approach where upstream processes are triggered by actual downstream demand, not forecasts.

The supermarket creates a pull between fab and assembly; Kanban cards trigger pull replenishments; We converted the cell from push to pull.

Quality Management System (QMS)

The organizational structure, processes, and resources needed to implement quality policies and objectives.

Internal audits test QMS effectiveness; CAPA and document control live in the QMS; We’ll upgrade QMS software to close gaps.

Sales and Operations Planning (S&OP)

A cross-functional process aligning demand, supply, and financial plans on a rolling horizon.

The S&OP meeting reconciled capacity and forecast; We used S&OP scenarios to plan overtime; S&OP improved service while lowering inventory.

Single-Minute Exchange of Die (SMED)

A methodology to reduce changeover times by converting internal to external steps and streamlining the rest.

SMED cut changeovers from 90 to 15 minutes; We pre-staged tooling as an external step; Color-coding clamps simplified SMED.

Six Sigma

A data-driven methodology to reduce variation and defects using DMAIC/DMADV frameworks.

A Green Belt led a DMAIC on coating thickness; The process sigma level improved from 3.1 to 4.2; We used DOE as part of the Six Sigma project.

Standard Work

The best-known method and sequence to perform a task safely and efficiently at the required takt, documented and trained.

The standard work combo sheet shows motion; Audits found drift from standard work at Station 7; We updated standard work after the kaizen.

Statistical Process Control (SPC)

Ongoing statistical monitoring of process behavior to detect special-cause variation and maintain control.

X-bar/R charts showed an out-of-control point; We tightened reactions on SPC rule violations; SPC reduced false alarms versus 100% inspection.

Takt Time

The pace of customer demand, calculated as available production time divided by required units.

Takt is 54 seconds; balance the line to takt; The gap between cycle time and takt caused WIP; We recalculated takt after the new forecast.

Theory of Constraints (TOC)

A management approach that focuses improvement on the system’s constraint to maximize throughput.

The CCR is the heat-treat furnace per TOC; We used drum-buffer-rope to protect the bottleneck; Exploit, then elevate the constraint before moving on.

Total Productive Maintenance (TPM)

A holistic maintenance system aiming for zero breakdowns and defects via autonomous and planned maintenance.

Operators do daily TPM checks and 5S; PM compliance rose to 95% after TPM rollout; TPM pillars drove OEE uptime gains.

Traceability

The ability to track the history, application, or location of a product and its components across the value chain.

We added serialization for unit-level traceability; Genealogy links subassemblies to test data; Traceability enabled a surgical recall scope.

Value Stream Mapping (VSM)

A visualization of material and information flow to identify waste and design a leaner future state.

The current-state VSM showed 12-day lead time; We added a pacemaker in the future-state map; VSM kaizen bursts prioritized actions.

Visual Management

Use of visual cues and controls to make the state of operations obvious and enable fast decisions.

The SQDC board shows daily performance; Andon lights and floor markings guide flow; Red-tag areas signal items to remove.

Work In Process (WIP)

Inventory that has entered production but is not yet a finished good.

We set WIP caps per cell to improve flow; The WIP account is reconciled weekly; Little’s Law relates WIP, cycle time, and throughput.

Yield

The percentage of units that meet quality requirements (first-pass yield excludes rework).

First-pass yield improved from 87% to 95%; Scrap on Op20 is dragging down overall yield; We track yield by line and by product family.