Machinery, Excluding Computers Industry Terminology

Additive Manufacturing (AM)

A layer-by-layer fabrication process (often called 3D printing) used to create prototypes, tooling, and end-use parts from digital models. Benefits include rapid iteration, part consolidation, and reduced tooling.

-Print a custom EOAT bracket to avoid a six-week machining lead time -Consolidate a fluid manifold from five parts to one using AM -Offer AM spares to support the installed base with low-volume parts

Aftermarket

The business of parts, services, upgrades, and maintenance sold after the initial equipment sale; a key recurring revenue stream and loyalty driver.

-Launch a service kit program to grow aftermarket attach rate -Price the spare impeller competitively to protect aftermarket share -Bundle a preventative maintenance contract with each machine sold

Asset Utilization

A measure of how effectively capital equipment produces value, often linked to uptime, throughput, and OEE. Higher utilization spreads fixed costs across more output.

-Increase asset utilization by reducing changeover time -Track idle time by line to improve asset utilization -Use SMED to boost utilization on the packaging cell

Automated Guided Vehicle (AGV)

A mobile robot that follows guidance (magnetic tape, lasers, vision) to move materials autonomously in factories and warehouses.

-Replace manual tugger routes with AGVs for safer material flow -Schedule AGV battery swaps during breaks -Integrate AGV traffic with the MES to avoid bottlenecks

Automation Pyramid

The hierarchy of industrial control and information systems from field devices to enterprise systems: sensors/actuators, PLC/IPC, SCADA/MES, and ERP.

-Map data tags from PLCs up the automation pyramid to MES -Ensure SCADA alarms roll up to the enterprise layer -Use the pyramid to define cybersecurity zones

Backlog

The value or quantity of customer orders received but not yet shipped; indicates demand and capacity alignment.

-Monitor backlog aging to prioritize late orders -Increase overtime to burn down the Q3 backlog -Quote lead times based on current backlog and capacity

Bill of Materials (BOM)

A structured list of components, subassemblies, and materials needed to build a product. Variants include EBOM (engineering) and MBOM (manufacturing).

-Reconcile EBOM to MBOM before release to production -Add the fastener kit as a phantom item in the BOM -Use a configurable BOM to support BTO options

Break-even Analysis

A cost-volume-profit tool to find the sales volume at which total revenue equals total costs; guides pricing, capacity, and automation decisions.

-Run a break-even analysis to justify the new machining center -Evaluate break-even for molding vs outsourcing -Adjust price to hit break-even within 18 months

Brownfield Upgrade

Modernizing or retrofitting existing facilities or equipment (as opposed to building greenfield) to improve performance, safety, or compliance.

-Add a servo retrofit to the press line as a brownfield upgrade -Layer IIoT sensors onto legacy machines -Phase controls migration without halting production

Build-to-Order (BTO)

A production strategy where manufacturing begins only after a confirmed customer order, enabling customization and lower finished-goods inventory.

-Shift the compressor product family to BTO to reduce stock -Use a configurable BOM to support BTO variants -Quote a 4-week lead time for BTO skids

CapEx (Capital Expenditures)

Long-term investments in assets such as machinery, tooling, and facilities. Evaluated via NPV, IRR, payback, and strategic alignment.

-Submit CapEx request for a 5-axis CNC -Prioritize CapEx toward bottleneck operations -Tie CapEx approval to achieving OEE targets

Commissioning

The process of installing, integrating, testing, and validating equipment to confirm it meets design specifications and is production-ready.

-Complete I/O checks and dry runs during commissioning -Capture baseline cycle time at commissioning sign-off -Include safety validation in the commissioning plan

Computer Numerical Control (CNC)

Automation of machine tools via coded instructions (e.g., G-code) controlling motion and operations for machining, cutting, or forming.

-Optimize CNC toolpaths to reduce cycle time -Implement probing macros on the CNC mill -Standardize post-processors for all CNC lathes

Condition-Based Maintenance (CBM)

Maintenance triggered by real-time or periodic condition data (vibration, temperature, oil analysis), rather than calendar intervals.

-Use vibration alerts to schedule CBM on the gearbox -Shift from time-based to CBM to cut unplanned downtime -Trend bearing temperature to trigger CBM work orders

Control Plan

A quality document detailing process controls, measurement methods, sampling, and reaction plans to maintain product conformity.

-Update the control plan after the ECO -Add torque verification to the control plan -Align PFMEA and control plan characteristics

Cycle Time

The time required to complete one unit or cycle of a process, including machining, assembly, or test; a key capacity driver.

-Reduce cycle time by optimizing tool changes -Balance stations to a 55-second cycle time -Track actual vs standard cycle time in the MES

Design for Manufacturability (DFM)

Engineering practices that simplify manufacturing, reduce cost, and improve quality by considering process capabilities early in design.

-Apply DFM to reduce weld joints from 12 to 4 -Change a tight tolerance to fit standard tooling -Involve suppliers in DFM reviews for castings

Digital Twin

A dynamic digital representation of a physical machine, line, or process used for simulation, monitoring, and optimization.

-Use a digital twin to validate robot reach and cycle time -Compare twin predictions to actual OEE -Test control logic virtually before FAT

Downtime

The period when equipment is not producing due to failures, changeovers, shortages, or maintenance; tracked as planned or unplanned.

-Pareto unplanned downtime to find the top three causes -Schedule PMs to minimize downtime during peaks -Reduce changeover downtime with SMED

Duty Cycle

The percentage of time equipment operates under load within a given period; informs sizing, thermal limits, and warranty conditions.

-Select a motor rated for a 60% duty cycle -Verify welder duty cycle matches takt time -Adjust lubrication intervals for high-duty operation

End-of-Arm Tooling (EOAT)

The device attached to a robot wrist enabling it to perform tasks (grippers, vacuum cups, weld guns, tool changers).

-Swap EOAT using quick-change couplers -Choose soft grippers for delicate packaging -Balance EOAT mass to meet robot payload limits

End-of-Life (EOL)

The planned retirement or obsolescence point for a product or component, triggering last-time-buy and replacement strategies.

-Issue an EOL notice for the legacy controller -Propose a migration kit for EOL hydraulics -Manage EOL risk in the BOM with alternates

Engineering Change Order (ECO)

A formal document that authorizes modifications to designs, BOMs, routings, or work instructions, with impact assessment and approvals.

-Raise an ECO to add a gasket to prevent leaks -Route ECOs through quality and supply chain for sign-off -Track ECO cycle time to improve responsiveness

Enterprise Resource Planning (ERP)

Integrated software that manages core business processes such as orders, inventory, production, procurement, and finance.

-Sync ERP demand with the MPS to level load -Close production orders in ERP daily -Use ERP lot traceability for recalls

Extrusion

A continuous forming process where material is forced through a die to create constant cross-section profiles in metals or plastics.

-Extrude aluminum rails for conveyor frames -Optimize die design to reduce extrusion scrap -Control cooling to maintain extruded profile tolerances

Factory Acceptance Test (FAT)

A customer-witnessed test at the supplier’s site to verify systems meet specifications before shipment.

-Define FAT pass/fail criteria in the contract -Simulate product variants during FAT -Capture FAT deviations and corrective actions

Failure Mode and Effects Analysis (FMEA)

A structured method to identify potential failure modes, assess risk, and prioritize mitigation actions (PFMEA for processes, DFMEA for designs).

-Reduce RPN by adding poka-yoke -Link PFMEA to control plan updates -Conduct DFMEA before freezing the design

Forecast Accuracy

A metric (e.g., MAPE, bias) indicating how closely demand forecasts match actuals; critical for capacity and inventory planning.

-Improve forecast accuracy by segmenting SKUs -Measure MAPE at the family level for S&OP -Penalize over-forecast bias in supplier commits

Forging

Metal forming using compressive forces (hammers, presses) to achieve high strength and grain flow alignment.

-Specify forged blanks for critical load-bearing parts -Audit the forge shop for die wear -Compare forging vs casting for fatigue performance

G-code

The standard programming language for CNC machines specifying toolpaths, feeds, speeds, and auxiliary functions.

-Edit G-code to add in-process probing -Standardize G54–G59 work offsets in G-code -Verify G-code with a simulator before running

Gemba Walk

A lean practice of visiting the place where work is done to observe processes, engage operators, and identify improvement opportunities.

-Conduct a daily Gemba to review safety and quality -Use Gemba notes to drive the kaizen board -Ask 5 Whys during the Gemba to find root causes

Gross Margin

Sales revenue minus cost of goods sold, expressed as a percentage; indicates profitability of products or projects.

-Quote options that protect gross margin on custom machines -Track gross margin by product family -Improve gross margin via standardization and yield

Heijunka

Production leveling to smooth volume and mix over time, reducing variability, WIP, and strain on resources.

-Implement a heijunka box for final assembly -Level the build plan to minimize changeovers -Use heijunka to stabilize upstream machining loads

Human-Machine Interface (HMI)

The operator interface for monitoring and controlling machines or processes, typically via touchscreens and visual displays.

-Redesign HMI screens to reduce operator errors -Add OEE and alarms to the HMI dashboard -Standardize HMI color coding per ISA-101

Hydraulic Power Unit (HPU)

An assembly of pump, reservoir, valves, filtration, and controls that supplies pressurized hydraulic fluid to machines.

-Specify HPU flow and pressure for the press -Add offline filtration to extend HPU life -Monitor HPU temperature to prevent cavitation

Industrial Internet of Things (IIoT)

Networking of industrial assets with sensors, connectivity, and analytics to enable monitoring, optimization, and new services.

-Stream spindle vibration via IIoT for CBM -Build an IIoT dashboard for energy usage -Offer IIoT-enabled remote support packages

Installed Base

The total number of machines or systems in operation at customers; informs service strategy, spares, and upgrade opportunities.

-Prioritize upgrade kits for the largest installed base -Map installed base by region to plan service staffing -Mine installed base data to forecast aftermarket

Intralogistics

The management of internal material flow and information within a facility, including storage, picking, and transport.

-Redesign intralogistics with AGVs and flow racks -Balance intralogistics routes to takt time -Use WMS analytics to optimize intralogistics paths

ISO 9001

An international standard for quality management systems focusing on process control, continual improvement, and customer satisfaction.

-Maintain ISO 9001 certification across all plants -Close nonconformities found in the ISO audit -Use ISO 9001 procedures to control document changes

Jigs and Fixtures

Custom tools that locate, hold, or guide parts during manufacturing to improve accuracy, speed, and safety.

-Design a welding fixture to cut rework -Use a drill jig to ensure hole position -Implement quick clamps to speed fixture loading

Just-in-Time (JIT)

A production and logistics philosophy of supplying what is needed, when needed, in the exact quantity, reducing inventory and waste.

-Convert feeder lines to JIT with kanban -Align supplier deliveries to JIT schedules -Mitigate JIT risk with dual sourcing on critical parts

Kaizen

Continuous, incremental improvement driven by employees to enhance quality, cost, delivery, safety, and morale.

-Run a kaizen event to reduce setup time -Track kaizen ideas on a visual board -Celebrate kaizen wins in daily stand-ups

Kanban

A visual pull system controlling inventory and production using signals (cards, bins, e-kanban) to trigger replenishment.

-Set kanban sizes based on consumption and lead time -Replace spreadsheets with e-kanban -Audit kanban loops to prevent stockouts

Key Performance Indicator (KPI)

Quantifiable metrics that track progress toward operational or strategic goals (e.g., OEE, FPY, on-time delivery).

-Cascade KPIs from corporate to cell level -Review KPI trends in tiered meetings -Tie bonuses to hitting safety and quality KPIs

Lead Time

The elapsed time from order to delivery, or from process start to finish; includes queue, setup, process, and transport.

-Map value stream to cut lead time by 30% -Quote lead time based on constrained resources -Reduce supplier lead time with VMI

Lean Manufacturing

A methodology focused on eliminating waste (muda), unevenness (mura), and overburden (muri) to improve flow and value.

-Implement 5S and standard work as lean foundations -Use takt time to synchronize processes -Run a kaizen to reduce WIP and lead time

Load Factor

A utilization metric comparing average to maximum capacity or load; in motors, the ratio of actual to rated load.

-Increase line load factor by smoothing schedules -Check motor load factor to prevent overheating -Balance cells to raise load factor above 80%

Lot Size

The quantity produced or purchased in one run; impacts inventory, changeovers, and flow.

-Reduce lot size using SMED to cut WIP -Set economic lot sizes based on setup and holding costs -Pilot one-piece flow for small assemblies

Maintenance, Repair, and Operations (MRO)

Supplies, services, and activities required to keep equipment and facilities running (spares, lubricants, tools, consumables).

-Consolidate MRO suppliers to reduce cost -Implement a CMMS to manage MRO inventory -Standardize MRO parts to shorten downtime

Mean Time Between Failures (MTBF)

The average operating time between inherent failures of a repairable system; a reliability measure influencing spares and warranty.

-Increase MTBF by upgrading the bearing spec -Publish MTBF data in proposals to assure reliability -Use MTBF trends to plan preventative maintenance