Manufacturing Glossary Terms | Matics
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Glossary

We consolidated key words, phrases and acronyms into one central location. This glossary will help you cut through the complexity to fully understand the ins and outs of the industry.

Advanced Manufacturing

Innovative technology, such as automated processing and artificial intelligence, is driving the evolution of many industries, including the manufacturing sector.  One of the key ways this is done is through the integration of Real-time Operational Intelligence (RtOI) solutions that...

Batch Manufacturing

Batch production refers to a method in manufacturing in which products are created as specified groups, or amounts, that each go through a series of steps to make the desired product. This type of production is created within...

Cloud Based Manufacturing

The cloud is an internet-based network where companies (and individuals) can store and access data and other information. Rather than storing all of this information locally, using the cloud means the data is stored on servers located in data...

Cloud Manufacturing

Cloud manufacturing refers to running a manufacturing facility’s software systems and platforms on the cloud. The cloud refers to servers that are housed in a provider’s data center, and allows other businesses and organizations to run and store their...

Computer-Integrated Manufacturing

Computer-Integrated Manufacturing (CIM) refers to an integrated approach of manufacturing that combines different technologies and computer-controlled operations for a fully integrated manufacturing process. In today’s industrial facilities, there are many different technology systems running different parts of the manufacturing...

Condition Monitoring

What is Condition Monitoring? Factory managers need to be constantly aware of how well (or not well) all of the machines are operating. Condition monitoring is one way to keep track of each piece of machinery’s status and to

Condition-based Maintenance (CBM)

Condition based maintenance (CBM) is a maintenance strategy that tracks the conditions of commodities in order to assess what type of maintenance is needed. CBM maintenance strategy is only executed when unique indicators in the factory reveal potential failure....

Continuous Manufacturing

Continuous manufacturing, otherwise known as process manufacturing, is a flow production method in which factories are continuously producing goods and materials 24/7. In this type of production method, each part of the product flows from one machine to...

Corrective Maintenance (CM)

Corrective Maintenance is a type of maintenance that is performed to correct problems and restore equipment and machines to a working condition. Unlike Predictive Maintenance, which helps predict future failures, Corrective Maintenance tasks can be either planned or unplanned....

CPS (Cyber Physical System)

Cyber Physical system (CPS) is a new generation of digital system, composed of computational and physical capability that engage with humans like never before. It’s designed to act like a network of multiple variables with both physical input and...

Cycle Time

What Is Cycle Time? Cycle time is a metric that measures the amount of time it takes for you to complete a task from start to finish. This time includes each step from the time you start working on...

Digital Factory

Industry 4.0 refers to the merging of digitalization with traditional industrial processes. With Industry 4.0, production can be elevated by completely digitizing a factory. And so, the result of Industry 4.0 is ultimately a smart factory...

Digital Manufacturing

Digital manufacturing allows companies to leverage advanced software and digital technologies to improve their operations. With the digital transformation in manufacturing, companies are able to manage their entire production process through a network that is fully connected and integrated,...

Digital Maturity Index

The industry 4.0 digital transformation is here and the manufacturing industry will never be the same. To compete in the ever-changing market, manufacturing companies have no choice but to digitalize their operations. Onboarding new technologies is a big step...

Digital Twins

Digital twin technology is one of the fastest-growing aspects of Industry 4.0. A digital twin (sometimes called a digital replica) is a virtual representation - essentially a computer model - of a real-world component in the manufacturing process. On...

Digitalization

Digitalization is the process by which digital technologies and digitized data are harnessed in order to streamline business operations and improve overall efficiency. While digitization refers to the conversion of data into a digital format, digitalization describes a business...

Digitization

Digitization is the first step in the digital transformation process, paving the way for vast operational and efficiency improvements in organizations....

Discrete Manufacturing

Discrete Manufacturing is the manufacturing practice of operating with a bill of materials (BOM) to create various parts of a product that are then merged together to form the finished product. Discrete Manufacturing is responsible for creating products like...

Edge Device

In the age of IIOT (Industrial Internet of Things), more and more new technologies are being introduced that rely on the cloud. These tools are often used to gather and transmit data that is collected on local networks, and...

Factory Downtime

While many managers at manufacturing facilities tend to focus on efficiency and optimization for improved business performance, factory downtime is also an important factor to consider....

First Pass Yield

First pass yield is a key metric used in manufacturing to measure production performance and quality. What is yield in production? There are several different types of yields used in production that refer to the production of units, and...

Flexible Manufacturing

A flexible manufacturing system is able to adjust and make any changes in the production process, as necessary. In general, flexible manufacturing technologies allow a system to make changes in two areas, related to product type and quantity...

High-Mix Low-Volume (HMLV) Manufacturing

High-Mix Low-Volume Manufacturing, also referred to as make-to-order manufacturing, is the process of producing a high variety of products in small quantities. This production method is commonly used to manufacture unique and more complex products with specific quality requirements...

IIoT

IIoT (The Industrial Internet of Things) refers to any type of machine, equipment, or device that can gather and share vast amounts of data by connecting to a network. The connectivity from industrial machines allows for continuous data collection...

Industry 4.0

Referred to as the fourth revolution in manufacturing, Industry 4.0 represents the transition to automation using smart technology, such as machine learning, big data, AI, etc. Industry 4.0 solutions focus on creating an optimized environment for the manufacturing industry....

Intelligent Manufacturing System (IMS)

Intelligent manufacturing systems are able to achieve optimized utilization of manufacturing resources to increase a company’s business value. An intelligent production system integrates employees, machines, and processes at a manufacturing facility to achieve the best possible production results, while...

Intelligent Process Automation

One of the most exciting trends in technology and its impact on organizational performance is intelligent process automation. Intelligent process automation tools are being used to optimize a wide range of business processes, from production and manufacturing to supply...

Job Shop Manufacturing

Job shop lean manufacturing is a method resulting in a wide variety of products. These products are made in small lot sizes with the ability to achieve maximum flexibility in mind. The products’ operating times and sequences can vary...

Lean Manufacturing

Lean Manufacturing is a collection of processes and tools that work together to minimize waste and increase production in the manufacturing industry. The core of this system is to reduce all forms of waste without affecting productivity of the...

Lean Waste Management

A lean waste management system is designed to continually improve all aspects of manufacturing in order to reduce material waste, decrease production costs, increase and expand production capacity and improve the effectiveness in operations management. ...

Machine Availability

Machine Availability, in the context of the manufacturing industry, is one of three major factors in calculating OEE. It takes into consideration all of the events that could have interrupted planned production time, whenever it has been stopped for...

Machine Monitoring

Machine Monitoring in manufacturing is the method of applying advanced technology in the factory in order to collect and analyze data from machines. The process of machine monitoring consists of collecting data from machines, transferring data to the cloud...

Manufacturing Analytics

Manufacturing analytics is a complex method of analyzing KPIs in order to optimize the manufacturing process and meet business standards. As the industry continues to evolve and adapt new technology, it turns to new methods to increase product efficiency...

Manufacturing Cycle Time

Manufacturing cycle time is a key performance indicator for manufacturing businesses. It refers to the amount of time spent working on an item from the raw material stage to the finished product stage. The cycle time calculation includes...

Manufacturing Information System

Manufacturing information systems are integral to the modern manufacturing facility. They are computer software platforms used to track to and document the transformation of raw materials to finished goods. With the implementation of a manufacturing and production information system...

Manufacturing KPI Dashboard

Manufacturers rely on a lot of data to make sure that the factory is running smoothly, to measure efficiency, and to improve processes when needed. A manufacturing analytics dashboard is a one-stop-shop where managers can see a visual representation...

Manufacturing Management Software

Manufacturing management software is a crucial tool to help manufacturers manage and improve their business operations. It can increase organizational efficiency by helping companies improve how their resources are used – a crucial consideration in today’s highly competitive market....

Manufacturing Optimization

Manufacturing optimization refers to the process of manufacturers seeking methods to enhance their production process. The optimization of a product or system can happen on different levels. Ranging from improving equipment to reducing waste....

Manufacturing Process Automation

While many manufacturing companies have moved towards automation in their production process, others are also using manufacturing process automation software to take advantage of new advancements in technology that can help run their business....

Manufacturing Production Report

With an increase of data that many manufacturing facilities are collecting and tracking every day, manufacturing management reports are playing an increasingly important role in the effective management of manufacturing companies....

Manufacturing Waste

What is Manufacturing Waste An unfortunate but inevitable result of the production process is waste - the “leftover” remnants of raw materials that were not needed in the final product. In lean manufacturing, waste goes beyond physical material and

Material Management

Material management is a key component of many business operations, especially those in the manufacturing sectors. At its most essential level, materials management involves overseeing and managing everything that is related to the materials used in a business or...

Material Requirements Planning (MRP)

Material requirements planning (MRP) is one of the most common real-time material management systems used in manufacturing to calculate all materials and components required to produce goods in the most efficient manner. This system is considered a push-type of...

MES (Manufacturing Execution System)

Manufacturing Execution System is a shop floor execution software that monitors and analyzes machines to ensure quality and efficiency are implemented in the manufacturing process. The main purpose of an MES is to solidify digital manufacturing and improve production...

MTO (Make to Order)

Make to Order (MTO) is a manufacturing strategy in which products are only made after a confirmed order is received, also known as mass customization. It’s used for customized orders and is also referred to as the pull-type supply...

MTS (Make to Stock)

Make to Stock (MTS) is a manufacturing strategy in which products are manufactured based on consumer demand forecast. MTS manufacturing relies on the accuracy of demand forecasts to decrease overuse of raw materials and inventory regarded as a push-type...

OEE KPI

OEE stands for overall equipment effectiveness and is a KPI used by manufacturers to measure the productivity of each machine and the shop as a whole. OEE measurement is based on three key components: Availability, Performance, Qualilty...

OEE Measurement

OEE (Overall Equipment Effectiveness) is a metric often used in the manufacturing industry to measure the percentage of planned production , in order to reduce cost and optimize processes. There are three components that OEE takes into account: Availability,...

Overall Line Efficiency

Overall Line Efficiency is a metric found in manufacturing that rides off of OEE measurement (Overall Equipment Effectiveness) - a formula used to measure the percentage of planned production, in order to reduce cost and optimize processes....

Overall Operating Efficiency (OOE)

Overall Operating Efficiency (OOE), also known as Overall Operating Effectiveness is a calculation that measures the availability of factory operations from beginning to end of the production process. OOE is used to help manufacturers understand their effectiveness in operations...

Predictive Maintenance

Predictive Maintenance is a proactive maintenance technique that uses performance tracking tools to predict possible defects and fix them before they occur. This method is aimed at reducing repair costs and decreasing downtime that result from faulty equipment....

Predictive Quality in Manufacturing

Predictive quality analytics refers to the process of analyzing incoming data in order to recognize and solve problems in advance. This emerging category of AI enables manufacturers to decrease losses in both quality and waste by identifying root cause......

Preventive Maintenance

Preventive Maintenance is a proactive type of maintenance that is performed daily to reduce the odds of downtime and machine failure. Preventive Maintenance includes lubrication, simple repairs, cleaning and replacing defective parts. It’s conducted while the equipment remains running...

Production Capacity

Production capacity is defined as the maximum number of units that a factory is able to produce in a given time period with a set amount of time, labor and materials. This is an important figure for manufacturers to...

Production Efficiency

Production efficiency is a term used to describe the level in which a company, or factory, can’t manufacture any more products without affecting and lowering the production level of other goods. Thus, the term maximum production efficiency only occurs...

Production Monitoring

Production line monitoring is a method used by manufacturers to gain a comprehensive view of what’s happening in a factory, in real time. In the past, many companies dedicated specific employees to monitor their production lines to ensure products...

Programmable Logic Controllers

A programmable logic controller (PLC) refers to an industrial digital computer that controls the manufacturing process. PLCs are adapted to operate in harsh industrial settings, so they can withstand severe conditions often found in industrial facilities, such as...

Quality KPIs in Manufacturing

Among the many manufacturing metrics collected in a factory are those that relate to quality control. Measuring the quality of the goods produced is crucial to understanding how efficient the production process is and identifying areas for improvement....

Quality Management System

A Quality Management System (QMS) is a formal process that helps manufacturers produce and deliver goods that continuously achieve customer requirements efficiently. QMS often takes into consideration businesses’ values and goals and translates them into production guidelines...

Raw Material Consumption

What are Raw Materials? Raw materials are the inputs that go into creating a finished product. Manufacturers purchase the raw materials they need in order to produce their final result. Once those materials have been processed on the assembly

Real time Production Monitoring

One of the advantages of a smart manufacturing is the ability to collect and track data and information as it’s happening, in real time. Real-time production monitoring is a crucial component in many industrial facilities today, as it allows...

Real-time Planning

Real-time planning is the ability to deal with unforeseen circumstances or changes in real-time, with the capacity to make adjustments or pivots that are necessary, without completely disrupting the production process. To implement real-time planning, there are certain things...

Remote Machine Monitoring

One of any manufacturer’s biggest fears is that a machine will break down in the middle of production, leading to unscheduled downtime, delayed orders and unhappy customers. Given that it’s virtually impossible for a human to physically inspect and...

Repetitive Manufacturing

Repetitive manufacturing is the factory process function in which products are produced for rapid production flow. A distinguishing property of repetitive manufacturing is its primary utilization of assembly and/or production lines, specializing in repetitive production...

Root Cause Analysis

Root Cause Analysis is an umbrella term that covers a wide array of methods used to find causes of problems in manufacturing. These approaches try to uncover the root cause of an issue, the primary reason that there is...

RtOI (Real-time Operational Intelligence)

Real-time operational intelligence (RtOI) is an up and coming industrial discipline that empowers businesses to intelligently transform mass amounts of data into real-time actionable insights that is accessible at all times....

Run To Target Manufacturing (RTT)

Run to Target (RTT) manufacturing is a concept found in manufacturing that is typically used alongside productive maintenance, in which it focuses on eliminating product and process variability while continuing to increase machine efficiency....

Shop Floor Control

Shop Floor Control is a system that can collect, track, and analyze relevant data on a regular basis. This method can be completed in a single factory for small businesses, or in several facilities owned by large businesses at...

Shop Floor Data Collection

Today, many manufacturers are automating their manufacturing data collection. It no longer makes sense to capture, track, and report data manually – it takes a tremendous amount of time, resources, and labor....

Shop Floor Management

The term shop floor refers to the area in a manufacturing facility where production is executed. This area includes all equipment, machines, and inventory. Since the shop floor includes numerous aspects, it’s crucial to maintain order of all elements....

Smart Factory

A Smart Factory is a modernized version of the old-fashioned manufacturing process to create what’s known as “Smart Manufacturing”, with a heavy emphasis on increasing flexibility and efficiency. The improvement comes from using technology to create a streamlined system...

Smart Manufacturing

Smart Manufacturing (SM) is the process of combining various technologies and solutions and implementing them in the manufacturing ecosystem to create a fully-integrated and automated environment that responds in real-time to actions and demands....

Statistical Process Control (SPC)

SPC in manufacturing refers to the methodology of monitoring and measuring quality processes during the production process. As different processes deal with multiple variations, statistical process control (SPC) is a manufacturing analytics software tool used to pinpoint which areas...

Statistical Process Control (SPC) Six Sigma

Six Sigma is a set of tools used by businesses for quality control and process improvement. The Six Sigma method is often used to remove defects and optimize processes by monitoring operations and then analyzing the data and statistics...

Takt Time

What Is Takt Time? Takt time refers to the rate at which you make a product or complete a service order to meet customer demand. In other words, it's the amount of time you have available to create each...

TEEP (Total Effective Equipment Performance)

TEEP is a performance metric that is used to measure the real capacity of manufacturing operations - indicating how big of a scope is waiting to be unlocked. This metric provides manufacturers insight into how much potential their factory...

TPM (Total Productive Maintenance)

Total productive maintenance is a lean manufacturing strategy that deploys machines, equipment and employee’s effectiveness to maintain and optimize the quality of manufacturing systems. TPM tackles the issue of maintenance in order to identify and eliminate the origin of...

Traceability in Manufacturing

Product traceability in manufacturing is a critical need for today’s manufacturers. While historically, it may have been implemented only in facilities where products could be recalled, today it’s a critical function for manufacturers across sectors. Manufacturing traceability solutions provide...