Glossary
Manufacturing terms,
in plain English.
53 definitions covering MES, MRP, ERP, OEE and the rest of the alphabet soup. Written for people running UK factories, not for software vendors.
A
Advanced Planning and Scheduling (APS)Advanced Planning and Scheduling (APS) is sophisticated software that optimises production schedules by simultaneously considering multiple constraint...Read the full definition →API (Application Programming Interface)An Application Programming Interface (API) is a set of protocols and tools that allows different software applications to communicate and exchange data seamlessly.Read the full definition →Artificial Intelligence (AI)Artificial Intelligence (AI) in manufacturing refers to computer systems and algorithms that can learn from data, recognise patterns, and make decisio...Read the full definition →Automated Data CollectionAutomated Data Collection refers to technologies and systems that capture production data directly from machines, sensors, and processes without requi...Read the full definition →
B
Batch TrackingBatch Tracking is a system for monitoring and recording the movement of materials and products throughout the manufacturing process by assigning uniqu...Read the full definition →Bill of Materials (BOM)A Bill of Materials (BOM) is a comprehensive, hierarchical list of all raw materials, sub-assemblies, components, and quantities required to manufacture a finished product.Read the full definition →BottleneckA bottleneck in manufacturing is any resource, process, or workstation that limits the overall throughput of the production system because its capacit...Read the full definition →
C
Capacity PlanningCapacity Planning is the strategic process of determining the production capacity required to meet changing customer demand whilst balancing resource...Read the full definition →Cloud ERPCloud ERP refers to Enterprise Resource Planning software that is hosted on remote servers and accessed via the internet rather than installed on local company computers.Read the full definition →CRM (Customer Relationship Management)Customer Relationship Management (CRM) is a system for managing all interactions, communications, and business relationships with customers and potent...Read the full definition →Cycle TimeCycle Time is the total elapsed time from the beginning to the end of a specific process, operation, or workflow.Read the full definition →
D
DashboardA Dashboard is a visual interface that displays key performance metrics, real-time data, and critical information in an easily digestible format, typi...Read the full definition →Data AnalyticsData Analytics is the systematic process of examining, cleaning, transforming, and modelling manufacturing data to discover meaningful patterns, draw...Read the full definition →Digital TwinA Digital Twin is a virtual replica of a physical manufacturing asset, process, or system that uses real-time data, simulation, and machine learning t...Read the full definition →Discrete ManufacturingDiscrete Manufacturing is a production approach that creates distinct, individually countable products that can be touched, seen, and separated from o...Read the full definition →
I
Industry 4.0Industry 4.0 refers to the fourth industrial revolution, characterised by the digital transformation of manufacturing through smart technologies, cybe...Read the full definition →Internet of Things (IoT)The Internet of Things (IoT) refers to a network of physical devices, machines, sensors, and objects embedded with electronics, software, and connecti...Read the full definition →Inventory ManagementInventory Management is the systematic control and oversight of all materials, components, work-in-progress, and finished goods within a manufacturing...Read the full definition →ISO CertificationISO Certification demonstrates that a manufacturer's quality management system, environmental practices, or other operational processes meet internati...Read the full definition →
K
KanbanKanban is a visual scheduling and inventory control system that uses signals (traditionally cards, but also electronic messages or physical containers...Read the full definition →Key Performance Indicator (KPI)A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a manufacturing operation is achieving critical business obj...Read the full definition →
L
Lead TimeLead Time is the total elapsed time from when a customer places an order until they receive the finished product, or alternatively, the time required...Read the full definition →Lean ManufacturingLean Manufacturing is a systematic methodology focused on eliminating waste, optimising flow, and continuously improving processes to deliver maximum...Read the full definition →Lot TraceabilityLot Traceability is the ability to track and trace products and materials through the entire supply chain by batch or lot numbers, creating a document...Read the full definition →
M
Machine LearningMachine Learning is a subset of artificial intelligence that enables computer systems to automatically learn from data and improve their performance o...Read the full definition →MES (Manufacturing Execution System)An MES manages and records production as it happens on the shop floor, tracking which job is on which machine and what it actually cost.Read the full definition →MRP (Material Requirements Planning)MRP calculates what to buy and what to make, in what quantity and by when, using demand, bills of materials and current stock.Read the full definition →
O
OEE (Overall Equipment Effectiveness)Overall Equipment Effectiveness (OEE) is a comprehensive metric that measures manufacturing productivity by calculating how effectively equipment conv...Read the full definition →On-Premise SoftwareOn-Premise Software refers to applications installed locally on a company's own servers and computers within their facilities rather than accessed via...Read the full definition →Order ManagementOrder Management is the end-to-end process of receiving, tracking, and fulfilling customer orders from initial inquiry through delivery and invoicing,...Read the full definition →
P
Predictive MaintenancePredictive Maintenance is a proactive maintenance strategy that uses data analytics, sensor monitoring, and machine learning to predict when equipment...Read the full definition →Production PlanningProduction Planning is the systematic process of determining what to manufacture, when to manufacture it, and which resources to use, translating cust...Read the full definition →
R
Real-Time TrackingReal-Time Tracking is the continuous monitoring of physical location, status, and movement of materials, work-in-progress, finished goods, tools, and...Read the full definition →RoutingA Routing is a detailed specification of the sequence of manufacturing operations required to produce a part or product, defining which work centres p...Read the full definition →
S
Serial Number TrackingSerial Number Tracking is a traceability system that assigns unique identifiers to individual products or high-value components, enabling manufacturer...Read the full definition →Shop Floor ControlShop Floor Control is the operational management system that coordinates and executes daily manufacturing activities, translating production plans int...Read the full definition →Smart FactoryA Smart Factory is a highly digitised, interconnected manufacturing facility that uses cyber-physical systems, the Internet of Things (IoT), cloud com...Read the full definition →Supply Chain Management (SCM)Supply Chain Management (SCM) is the coordinated oversight and optimisation of all activities involved in sourcing, procurement, conversion, and logis...Read the full definition →
T
ThroughputHere are the expanded descriptions for the S, T, U, and V terms: SCADA (Supervisory Control and Data Acquisition) SCADA (Supervisory Control and Data...Read the full definition →TraceabilityTraceability is the ability to track and document the complete history, location, and application of products, materials, and components throughout th...Read the full definition →
V
Value Stream MappingValue Stream Mapping is a lean manufacturing tool that visually documents all the steps, both value-adding and non-value-adding, required to deliver a...Read the full definition →Vendor ManagementVendor Management is the systematic process of selecting, evaluating, and working with suppliers to ensure reliable procurement of quality materials,...Read the full definition →
W
Work in Progress (WIP)Work in Progress (WIP), also known as Work in Process, refers to partially completed products at various stages of the manufacturing process that have...Read the full definition →Work OrderA Work Order is an authoritative document that instructs the production team to manufacture a specific quantity of a particular product, providing all...Read the full definition →
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