Glossary

3-Dimensional Printing also known as additive manufacturing, is the process of compiling thin layers of material, generally polymers test 7.

Activity-based costing is an accounting process that assigns indirect or overhead costs to all products and services based on the consumption by each.

Also known as 3D printing, additive manufacturing is the process by which a computer-rendered (CAD) model design is produced by a machine layer by layer.

Advanced or innovative manufacturing uses the latest generation of manufacturing technology to maximize efficiency.

Agile manufacturing incorporates tools and training to respond to changes in market demands thus reducing lead times across organizations.

Andon boards are signaling devices displaying the current state of a manufacturing line.

Also known as the Approved Manufacturer List (AML), the AVL is the official register of third-party suppliers approved by the company.

Automation is the manufacturing process or system of reducing or eliminating the need for human intervention during manufacturing.

Benchmarking is the practice of comparing one plant or organization’s performance and processes to industry standards.

BOM is the list of all raw materials that go into the final assembly of a product.

Bottlenecking is the point in the production line where congestions occur due to an influx of products that cannot be processed quickly enough.

Category management is an approach that organizes vast product assortments into distinct groups of comparable or related items.

Cellular manufacturing is a manufacturing process that produces similar parts, products or subassemblies within a single cell of machines.

Change control refers to the systematic process of managing and implementing changes within a manufacturing or software environment.

Change management is the formal process of creating, reviewing, and implementing change in the manufacturing process.

A change order is a request or proposal to modify the current manufacturing process or equipment.

A changeover is the process of converting production lines or machines from producing one product to another.

Channel marketing involves supplying channel-selling partners like retailers, wholesalers, and distributors with marketing initiatives and promotional content for a manufacturer's products.

A child item is an assembly or subassembly of a final product that appears in the product’s bill of materials (BOM).

Manufacturing compliance is the technical, legal, and corporate regulations imposed on an organization.

Compliance management refers to the processes, practices, and systems implemented by organizations to ensure adherence to regulatory requirements.

The compliance mark is a physical mark placed on the product or packaging stating that a product has met regulatory standards.

Composable applications are software applications designed to be built, modified, and extended by the users themselves.

Composable commerce refers to a flexible, modular strategy that employs APIs to integrate ecommerce platforms into a tailored ecosystem designed to meet the unique requirements of a manufacturer.

Composites are materials composed of two or more materials with significant differences in chemical or physical properties.

Computer-aided design (CAD) is the use of computer-based software to assist in the designing and rendering of 2- and 3D models.

CAM is the process of using computer-controlled machinery to increase efficiency and decrease the need for human intervention.

Continuous-Flow Manufacturing (CFM) is a method of manufacturing where the materials being processed are constantly moving through the production line.

CDMOs offer contract services for product development, formulation, manufacturing, packaging, and distribution often for biotech and medtech companies.

A contract manufacturer is a firm hired by a company to focus on the manufacturing or assembly of all or part of the final product.

The conversion rate measures the proportion of visitors who take a specific action on a website or in a commerce catalog, like signing up for emails or finalizing a purchase.

Corrective Action, Preventative Action is the process of investigating, identifying, and addressing issues or problems where corrective action is taken.

CAR is a request sent to a supplier or manufacturer to open an investigation into a nonconformity or a defect.

Cross-functional training refers to the process of training employees allowing them to work proficiently in multiple areas of the organization.

Custom product development refers to the process of creating unique products or solutions tailored to meet specific customer requirements.

Customer Experience (CX) encapsulates the overall perception customers develop about a company or brand, influenced by their entire journey of interactions with personnel and products, from discovery through purchase to after-sales service.

Customer Relationship Management (CRM) refers to a software solution designed to manage a company's engagements with its customers or potential clients.

The cycle time refers to the time required to complete a full cycle of production in manufacturing.

A data model outlines the organization of data within a system, delineating entities and their interconnections.

A DHF is the collection of records documenting all stages of the design phase.

The DHR is a collection of records containing the production history of all versions of a product.

A DMR is the collection of records used in quality management systems containing the procedures for manufacturing a finished product.

A digital asset management (DAM) system is a digitally based hub for all of an organization's media assets.

Digital manufacturing refers to the process of improving efficiency through the integration of information systems across the supply chain.

The Digital Product Passport (DPP) is a tool developed by the European Union (EU) designed to ensure end-to-end traceability of physical products throughout their entire value chain.

The digital shelf refers to the virtual equivalent of the in-store shopping experience, found on e-commerce platforms and encompassing all digital touchpoints where consumers interact with brands.

A digital twin is a virtual representation or replica of a physical object, process, or system.

Discrete manufacturing is a term used to describe the production of physically distinct products.

A DCR is a call for the adjustment of a system or process in which a problem has occurred.

E-commerce facilitates the online buying and selling of goods or services, predominantly in business-to-consumer (B2C) and direct-to-consumer (DTC) formats. It is also rapidly expanding as a sales channel in business-to-business (B2B) models.

EDA are software tools used to develop integrated circuit systems and printed circuit boards.

eIFU refers to digital versions of product instructions and manuals that are provided electronically instead of in traditional printed formats.

ETO is a manufacturing approach where products are designed and engineered to meet specific customer requirements.

An ECN is an official notice in change management that a change has been approved.

ECO is the documentation outlining the proposed change to the design, lists the parts affected, and requests approval.

ECR is the change request listing proposed improvements or problems with components or assemblies.

ERP is a business strategy used to track activities like purchasing, inventory, and orders.

ESG is an approach to supply chain management that considers the non-financial impact of production processes.

Extensibility refers to the ability of a software system or application to be easily extended or augmented with additional functionalities or capabilities.

Feeder lines are a special assembly line where pre-assembly tasks can be performed off the main production line.

An FFR is a type of change request which details a problem or non-conformity as observed by the end user.

Field service enablement refers to the processes, tools, and technologies used to equip field service teams.

FAI is a quality control process performed in manufacturing to validate the initial production of a new or revised product.

The Form, Fit, and Function is a framework description of an item’s identifying characteristics.

The Global Data Synchronization Network (GDSN) allows trading partners—including manufacturers, distributors, wholesalers, and retailers—to securely share and access standardized product information pools.

Global product registration refers to the process of obtaining regulatory approval for a product to be legally sold in markets around the world.

GMP is a system and set of guidelines and best practices for managing each aspect of production that impact the quality of a product.

Guided selling uses tailored recommendations to suggest products or services that best meet customer needs, basing selections on performance criteria or historical sales data.

Headless commerce infrastructure decouples the back-end data management and transaction functionalities of commerce platforms from the front-end, customer-facing interfaces built with content management systems.

ISO 13485 is the international quality-process auditing program specific to the manufacturing of medical devices.

ISO 14000 pertains to environmental management and the set of standards and guidelines for environmental management systems.

ISO 9000 is an international quality-process auditing program.

IT consolidation is the process of streamlining and consolidating IT infrastructure, systems, and resources within an organization.

Industry 4.0, or the fourth industrial revolution, is characterized as the name for the current trend of automation in manufacturing technologies.

IQ is a validation process conducted in regulated industries to verify that applications are installed in accordance with predetermined requirements.

IP refers to legal rights and protections granted to individuals or organizations for their inventions, creative works, and intangible assets.

IoT refers to an interrelated set of computing devices, machines, and technologies comprising a system of sharing product data.

The Item master is the record listing key information regarding inventory items.

JIT manufacturing is a technique to reduce setup times, inventory, and waste, reduce cycle time and improve efficiency in a manufacturing plant.

Kaizen is a Japanese business philosophy meaning “continuous improvement.”

Kanban, a Japanese term meaning billboard or signage, is a lean manufacturing method of managing and improving workflow across human production.

Kitting is a process where assemblers are given containers of all parts needed for the production of a product.

Lead time is the latency between a customer's initial purchase and the delivery of the product.

Lean manufacturing is a practice that aims to reduce wasted time and effort in the production process without sacrificing efficiency.

Made-to-order is a term that describes a product that is made to the specification of an internal design, a supplier, or a customer.

An MCO is a change order used to make a manufacturing change to a product.

An MCR is a change request used to propose a new change to the manufacturing process that does not require a change in the design.

The manufacturing cost is the cost directly related to the total expenses involved in the production of a product.

The manufacturing cycle time is the time used in the production of a product.

MES are digital manufacturing systems used to document and trace the conversions of raw materials into finished products.

Manufacturing operations refer to the processes, activities, and tasks involved in the production of products within a manufacturing facility.

Manufacturing overhead refers to indirect costs incurred in the production process that cannot be directly attributed to specific products.

Marketing Content refers to the marketing collateral created about brands, products, or services, designed to inform and captivate buyers across different channels.

A markup of price spread is the difference between the selling price of a product and the cost incurred to manufacture it.

Master Data Management (MDM) enables businesses to centralize their data, ensuring consistency and uniformity across all organizational departments.

MRP is the computer-based process of preparing, scheduling, and controlling inventory and raw materials in the manufacturing process.

MTBF refers to the average duration of time between mechanical or whole system breakdowns.

MDR is a procedure implemented by the FDA to continually monitor the performance of medical devices after launch.

The New Product Development (NPD) process is a systematic and strategic approach employed by businesses to conceive, design, develop, and bring innovative products to market successfully.

NPD is the process of conceptualizing, designing, planning, and commercializing a new product to be brought to market.

NPI refers specifically to the marketing, selling, and commercialization of a new product being brought to market.

An NCMR is submitted in the event that a raw material is found to be non-compliant with the specifications required for the product.

Off-the-shelf is a product that is sold by the manufacturer as it is produced with no additional changes or modifications.

Omnichannel commerce and marketing provide customers with a seamless experience as they engage with businesses across multiple platforms, such as social media, websites, marketplaces, and physical locations.

Online marketplaces are e-commerce platforms that facilitate connections between numerous independent vendors and buyers.

Operational Qualification (OQ) is a validation process ensuring applications function according to their intended operational requirements.

ODM is a third-party company that will design and manufacture a product based on another firm’s specifications.

An OEM is the manufacturer of a product that is sold by another company.

OEE is a manufacturing best practice for measuring productivity in a plant.

A parent item is a product that contains a secondary product or subassembly (child item) in its bill of materials.

Part numbering is the systematic identification and coding of individual components or parts within a manufacturing or product assembly.

Point of use is a technique of distributing products and tools to the point in the manufacturing process where they will be used and are needed.

Poka-yoke is a Japanese term meaning “mistake-proofing.”

Process control is the monitoring of the production process through software.

Process manufacturing, or batch manufacturing, is the production of products that are unable to be separated into physically distinct items.

Process Qualification (PQ) is a validation process demonstrating that a manufacturing process meets predetermined quality standards.

Product commercialization refers to the process of introducing a new product to the market and making it available for sale to customers.

PDM is a database system used in product lifecycle management to hold all CAD files, parts and assembly, models, and product drawings.

The product development cycle is the period from when product design begins to when the final product becomes available for purchase.

Product Experience Management (PXM) facilitates the delivery of personalized, channel-specific product content to buyers, enhancing engagement and increasing conversion rates.

GTM refers to the activities employed by organizations to launch new products or services into the market successfully.

Product hierarchy refers to a structured arrangement of products into ordered groupings that define parent-child relationships within a product family.

A PIM platform provides a single source for product information to be collected, maintained, and enriched for marketing purposes.

PLM is the management of product records from the initial design and prototype to the end-of-life delivery and service.

Product quality refers to the characteristics, features, and attributes of a product that determine its ability to meet customer expectations.

The product record is a general term describing all design, manufacturing, quality, sales, and information about a product.

Product Revision is a snapshot of a product, part, process, program, design, or document in its development.

Product syndication involves distributing product information across various sales channels such as distribution partners, online retailers, and marketplaces.

A product thread is a continuous flow of information, data, and activities related to a product throughout its entire lifecycle.

A PVM solution is designed to connect commercial and product teams in one shared application space.

Product variants refer to different versions or options of a parent product, distinguished by specific attributes like size and color.

A prototype is a sample build of a product.

Pull production is the process in which products are made only when the customer has ordered, and not before.

Push production is the process of manufacturing that uses market estimates rather than customer orders to initiate production.

QA refers to any system or business process performed to determine whether a product meets specified requirements.

QC refers to the inspection process of a product or production process to determine whether it fulfills specifications.

A Quality Management System documents the aspects of a company’s design and operational controls.

Rapid prototyping is a technique used to quickly produce a model of a part or assembly.

A redline is a marking of an assembly drawing or bill of materials used to indicate a change.

R&D focuses on product innovation based on data from market research, product data, and consumer feedback.

RoHS is a mandate issued by the European Union, which restricts the use of six hazardous substances in products sold within the EU.

RMA is a financial and work order tracking key used to identify a returned item’s origin.

Revision control is the process of tracking and documenting changes.

Right-sizing is a process of examining if equipment fits into the overall vision for how work will flow through the factory.

Risk management is the process of identifying, assessing, prioritizing, and mitigating potential risks that could impact the business.

Robotics is the intersection of mechanical or electrical engineering and computer science used to design, construct, operate, and use robots.

Service quality management refers to the strategic approach implemented to meet or exceed customer expectations.

SMED is a method of lean manufacturing to reduce waste during the manufacturing cycle.

Six Sigma is a data-driven approach and quality measure for eliminating product defects in manufacturing.

Smart manufacturing is a term that utilizes computer-integrated manufacturing, adaptability, design changes, and digital manufacturing.

SOP is a written document or instruction detailing the steps and activities included in a process or procedure.

An SOW documents a given project’s requirements detailing a vendor’s services provided for the end user.

A SKU is a unique identifier or code assigned to a specific product or item within an inventory or product catalog.

A SCAR describes an issue with a part, process, or component of a product from a manufacturer that asks for a resolution.

Supplier management involves the systematic and strategic approach to identify, evaluate, select, and maintain relationships with suppliers and vendors.

The supply chain is the sequence of processes involved in the manufacturing, transportation and selling of a product.

SCM is the coordinated management of activities involved in the process from raw material suppliers to end customers.

Supply chain optimization involves the continuous improvement of processes to maximize efficiency, reduce costs, and enhance overall performance.

A supply chain specialist is a professional who specializes in managing and optimizing supply chain operations within an organization.

Takt time is a manufacturing term used to help describe the rate of production to sales.

TEEP is used to determine how much potential a production environment has based on the performance level of its current equipment.

TQM is an approach emphasizing the importance of quality in all aspects of an organization's activities, processes, and products.

A training record is a documented record that tracks an individual's training activities and skills acquired.

Validation is a systematic process of confirming that a system, process, or product meets specified requirements.

The value chain is the overall process of turning an idea into a marketable product.

VoC is a marketing term to describe the overall feedback from customers about a product.

A workflow delineates the sequence of activities required to complete a business process.