Other Manufacturing Industry Terminology

ABC Analysis

An inventory classification technique that ranks items (typically by annual consumption value) into A, B, and C tiers to focus controls and resources on the most impactful SKUs.

We reclassified fasteners as C items after the ABC analysis; A-class motors now require weekly cycle counts; Tightening controls on A items reduced working capital by 12%

Additive Manufacturing

Layer-by-layer fabrication of parts directly from digital models (e.g., FDM, SLS, SLA, DMLS), used for prototyping, tooling, and increasingly end-use parts.

We printed the fixture using SLS to avoid machining lead time; Switching to FDM for prototypes cut costs by 40%; Metal AM let us consolidate three parts into one

Andon

A visual or audible signaling system that highlights abnormal conditions so teams can respond quickly and prevent defects or delays.

The operator pulled the Andon cord when torque went out of spec; A red Andon signal triggered a team huddle; Andon data shows most stoppages are due to feeder jams

APQP (Advanced Product Quality Planning)

A structured, cross-functional methodology (common in automotive) for planning and validating new products and processes before full-scale production.

The APQP plan calls for PFMEA completion before run-at-rate; We used APQP to align customer CTQs with process controls; APQP gates flagged missing gage R&R

AS9100

A quality management system standard for aerospace manufacturers and suppliers, building on ISO 9001 with additional aviation, space, and defense requirements.

Our AS9100 audit is next month; The supplier’s AS9100 certification is a customer requirement; We updated our QMS to AS9100 Rev D

Bill of Materials (BOM)

A structured list of all components, subassemblies, and materials required to build a product, often hierarchical and revision-controlled.

Engineering released a new BOM with a firmware component; The multi-level BOM shows the subassembly’s fasteners; A phantom BOM simplified kitting

Bottleneck

The resource with the least capacity that limits the overall throughput of a production system.

Heat treat is the bottleneck limiting weekly output; Adding a second press shifted the bottleneck to deburr; We subordinated upstream cells to the paint booth bottleneck

CAD (Computer-Aided Design)

Software used to create and modify digital 2D/3D product models and technical drawings.

Please send the CAD file in STEP format; We updated the CAD to add a draft angle; CAD-driven tolerance analysis flagged an interference

CAM (Computer-Aided Manufacturing)

Software that translates CAD models into machine instructions and toolpaths for manufacturing processes (e.g., CNC machining).

CAM optimized the toolpaths for a 20% cycle time cut; We reposted the CAM program for the new CNC; CAM simulation caught a potential collision

CMM (Coordinate Measuring Machine)

A precision measurement device that uses probes to capture 3D coordinates of part features for verification against design specifications.

The CMM report shows flatness out of tolerance; We programmed the CMM using the CAD model; CMM capacity is a constraint for PPAP

COGS (Cost of Goods Sold)

The direct costs attributable to producing goods sold (materials, labor, and manufacturing overhead), recognized on the income statement when revenue is recorded.

Material inflation pushed COGS up 3%; Standard cost rolls into COGS after variance; Reducing scrap directly lowers COGS

Control Plan

A living document defining the critical characteristics, measurement methods, sampling plans, and reaction plans needed to control a process.

The control plan requires 100% vision inspection; We added torque audits to the control plan; Control plans link PFMEA risks to controls

Cycle Time

The actual time to complete one unit or one cycle of a process step, often the key lever for throughput.

SMED reduced cycle time on Press 3 by 35%; The takt is 45 seconds, but cycle time averages 52; Robot optimization shaved 3 seconds off cycle time

DFMA (Design for Manufacture and Assembly)

A set of design principles that simplify manufacturing and assembly, reduce part count, and improve yield and cost.

DFMA changed a weldment into a single casting; We reduced fasteners via DFMA; DFMA reviews saved 12% on unit cost

DMAIC

A Six Sigma improvement cycle: Define, Measure, Analyze, Improve, Control; used for data-driven process optimization.

We used DMAIC to cut defects in half; The team is in the Analyze phase collecting data; DMAIC control charts verified sustained gains

Drum-Buffer-Rope (DBR)

A Theory of Constraints scheduling method where the constraint sets the pace (drum), time buffers protect it, and release (rope) controls upstream work.

We set the drum at the plating cell; The buffer protects the bottleneck from starvation; Rope scheduling stabilized flow to the constraint

Engineering Change Order (ECO)

A formal, controlled process to modify product or process documentation, specifying what changes, why, and when they take effect.

The ECO replaces brass with stainless; We can’t build Rev C without an approved ECO; ECO cycle time is our NPI bottleneck

EHS (Environment, Health & Safety)

Programs and policies that ensure safe working conditions, regulatory compliance, and environmental stewardship in manufacturing operations.

EHS audited the new solvent handling SOP; We improved EHS metrics by reducing near-misses; EHS training is required for all forklift operators

ERP (Enterprise Resource Planning)

An integrated system that manages core business processes such as finance, procurement, inventory, production, and order management.

We run MRP and capacity planning in ERP; The ERP integration links BOMs to routings; ERP lot traceability sped up the recall response

Engineer-to-Order (ETO)

A fulfillment strategy where each order requires unique engineering before manufacturing, leading to variable BOMs and routings.

ETO lead times are 16–24 weeks; The ETO quote includes custom design hours; We use APQP-lite for ETO programs

First Article Inspection (FAI)

A comprehensive verification of first production items against design requirements, often mandated in aerospace/defense and automotive.

The FAIR package is due before SOP; CMM data supports the FAI for Rev B; Customer requires AS9102 FAI on key parts

FIFO (First-In, First-Out)

An inventory rotation method ensuring the oldest lots are used first to minimize obsolescence and quality risks.

We switched the racks to enforce FIFO; FIFO lanes reduced material aging; Non-FIFO picks caused a traceability issue

Five S (5S)

A workplace organization method: Sort, Set in order, Shine, Standardize, Sustain; improves safety, quality, and efficiency.

5S cleared 20% floor space in the weld cell; Red tags from 5S identified obsolete fixtures; We audit 5S weekly with a scorecard

FMEA (Failure Modes and Effects Analysis)

A structured risk assessment identifying potential failure modes, their effects, causes, and controls to prioritize mitigation.

PFMEA highlighted a high-severity misload risk; We reduced RPN by adding a sensor; DFMEA drove a design change to prevent cracking

Gage R&R

A study within MSA that quantifies measurement system variation due to the gage (repeatability) and appraisers (reproducibility).

Gage R&R came back at 8%—acceptable; Operator variation dominated our R&R; We can’t approve the control plan without a passing R&R

GD&T (Geometric Dimensioning and Tolerancing)

A symbolic language on engineering drawings that defines allowable geometric variation for features to ensure function and interchangeability.

The drawing uses true position and flatness; GD&T tightened cylindricity on the shaft; We trained operators on basic GD&T symbols

Gemba

A lean principle meaning ‘the real place’—go to the shop floor to observe processes firsthand and engage with the people doing the work.

Let’s go to gemba and watch the setup; Gemba walks uncovered unreported downtime; We validated the hypothesis at gemba before changing the SOP

IATF 16949

The automotive sector QMS standard that supplements ISO 9001 with additional requirements for production and service parts organizations.

Our customer requires IATF certification; The LPA program supports IATF compliance; PPAP timing is tied to IATF clauses

Incoterms

International commercial terms published by ICC that define buyer/seller obligations for delivery, risk transfer, and costs in global trade.

The quote is DDP, customer wants FCA; We shifted to FOB to cut freight risk; Understanding Incoterms clarified customs responsibilities

ISO 9001

A globally recognized quality management standard specifying requirements for consistent processes, continual improvement, and customer focus.

We passed our ISO 9001 surveillance audit; The QMS procedures align to ISO 9001:2015; Suppliers must be ISO 9001 certified

JIT (Just-in-Time)

A production and inventory strategy that supplies materials only as needed to reduce inventory and waste, requiring reliable flow.

JIT deliveries cut warehouse space by 30%; JIT failed when supplier reliability dropped; We paired JIT with safety stock for resilience

Kanban

A pull-based signaling method that controls inventory and production based on actual consumption, often via cards, bins, or electronic signals.

We set two-bin Kanban for C-parts; Kanban cards trigger replenishment at 50 units; E-Kanban signals now flow via the MES

Kitting

Pre-assembling and packaging required components for a job or station into a single kit to simplify line feeding and reduce errors.

Kitting reduced line-side picks by 70%; We created model-specific kits to avoid mix-ups; Kitting moves labor off the critical path

Lead Time

The elapsed time from order initiation to delivery, including queue, setup, process, move, and wait times across the value stream.

Supplier lead time extends our MRP horizon; SMED shortened internal lead time; Customers demand a 5-day order-to-ship lead time

Lean Manufacturing

A management philosophy and toolkit focused on maximizing value and minimizing waste through continuous improvement and respect for people.

Lean events eliminated 12 material touches; We mapped waste via VSM; Lean daily management stabilized output

Line Balancing

Distributing tasks evenly across workstations to match takt time, minimize idle time, and maximize flow.

We rebalanced the line to meet a 40s takt; Cross-training enabled better line balance; Balancing reduced WIP between stations

MES (Manufacturing Execution System)

Software that manages and monitors shop-floor execution in real time, linking orders, machines, quality, labor, and traceability.

The MES captures real-time OEE; We pushed work instructions to operators via MES; MES-MRP integration improved schedule adherence

MRP (Material Requirements Planning)

A planning method that calculates what materials are needed and when, based on demand, BOMs, inventory, and lead times.

MRP pegging shows which orders need resin; We rolled safety stock into the MRP plan; MRP suggested pulling in two POs

MOQ (Minimum Order Quantity)

The smallest quantity a supplier will sell per order, impacting inventory, cash, and flexibility.

MOQ forces us to buy 5,000 units per lot; We negotiated a lower MOQ for launch; High MOQs increase obsolescence risk

MSA (Measurement Systems Analysis)

A suite of methods (e.g., Gage R&R, bias, linearity) to evaluate the accuracy, precision, and stability of measurement systems.

MSA flagged bias in the torque wrench; We need MSA before locking the control plan; The MSA study showed poor linearity

NCR (Nonconformance Report)

Formal documentation of product or process deviations from requirements, including containment and disposition (rework, scrap, use-as-is).

An NCR was issued for wrong plating; The MRB dispositioned the NCR as rework; NCR trends informed our PFMEA updates

NPI (New Product Introduction)

The end-to-end process of bringing a new product into production, aligning design, sourcing, process validation, and launch readiness.

NPI phase gates control tooling release; DFM feedback early in NPI saved weeks; NPI requires pilot runs and capability proof

OEE (Overall Equipment Effectiveness)

A composite metric (Availability × Performance × Quality) that quantifies how effectively equipment is utilized to produce good parts.

OEE improved from 58% to 71% after TPM; Availability losses dominate our OEE gap; We visualize OEE by shift on the Andon

OSHA

U.S. Occupational Safety and Health Administration; sets and enforces workplace safety and health regulations.

OSHA requires updated LOTO procedures; We trained all temps to meet OSHA standards; An OSHA citation drove ergonomic redesign

Poka-Yoke

Mistake-proofing; design features or process controls that prevent errors or make them immediately detectable.

We added a sensor as a poka-yoke to prevent misloads; A keyed connector is a simple poka-yoke; Poka-yoke cut assembly errors by 80%

PPAP (Production Part Approval Process)

An automotive core tool to validate that a supplier’s production process can consistently make parts meeting requirements at rate.

Customer requires Level 3 PPAP; PPAP includes control plan, PFMEA, and capability; We can’t ship until PPAP is approved

Pull System

A production approach where work is authorized by downstream demand, limiting WIP and aligning flow to takt.

We converted the cell to pull using Kanban; Pull reduced WIP by 45%; Pull signals tie replenishment to actual consumption

SCADA

Supervisory Control and Data Acquisition; systems that monitor and control industrial processes via sensors, PLCs, and HMIs.

SCADA shows real-time kiln temperatures; Integrating SCADA with MES improved traceability; SCADA alerts prevented a batch loss

SPC (Statistical Process Control)

Use of statistical methods (e.g., control charts) to monitor process stability and detect special-cause variation in real time.

SPC caught a drift before parts went out of spec; We set control limits from baseline data; Operators log SPC checks every hour

Takt Time

The maximum allowable time per unit to meet customer demand (available time divided by required quantity), used to pace production.

Customer demand sets takt at 42 seconds; We rebalance to match takt; Takt boards visualize pace by hour