Modern manufacturing is a web of systems, acronyms, and methodologies. For operations leaders, speaking this language clearly is critical when aligning production, IT, supply chain, maintenance, and finance. This glossary brings together 150 essential terms used across manufacturing systems, lean operations, Industry 4.0, quality, maintenance, and supply chain. Each term is briefly defined in practical, business- focused language so you can use it for: Onboarding new managers and engineers Standardising terminology across plants and sites Preparing for system implementations (MES, ERP, WMS, CMMS, etc.) Supporting OEE, digitalisation, and operational excellence initiatives Introduction MANUFACTURING SYSTEMS GLOSSARY: 100+ TERMS EVERY OPERATIONS LEADER SHOULD KNOW Tigernix Pte Ltd Tel: +(65) 6760 6647 / +(65) 6760 6012 Email: info @tigernix.com Address: 21, Woodlands Close, #05-47 Primz Bizhub, Singapore 737854 www.tigernix.com MANUFACTURING SYSTEMS GLOSSARY: 100+ TERMS EVERY OPERATIONS LEADER SHOULD KNOW GLOSSARY GLOSSARY Manufacturing & Production Systems Advanced Planning and Scheduling (APS) – Optimises production schedules considering capacity, materials, and constraints. Bill of Materials (BOM) – Hierarchical list of materials, parts, and subassemblies required for production. Cycle Time – Time taken to complete one production cycle. Discrete Manufacturing – Producing distinct countable items such as vehicles or electronics. Engineer-to-Order (ETO) – Custom manufacturing that begins only after receiving specific customer requirements. Enterprise Resource Planning (ERP) – Integrates enterprise-wide processes—finance, production, inventory, HR, and more. Lean Manufacturing – Philosophy focused on eliminating waste and maximising value. Line Balancing – Distributes tasks evenly to minimise idle time and bottlenecks. Lot Size – Number of units produced as one batch. Make-to-Order (MTO) – Produces items only after receiving confirmed orders. Make-to-Stock (MTS) – Produces goods for inventory based on demand forecasts. Manufacturing Execution System (MES) – Monitors, tracks, and manages shop floor production in real time. Material Requirements Planning (MRP) – Determines what materials are needed and when for production. Mixed-Model Production – Produces multiple variants on one line efficiently. Process Manufacturing – Continuous production using formulas or recipes (e.g., food, pharmaceuticals). Routing – Defines the sequence of operations needed to produce an item. Shop Floor Control (SFC) – Tracks and manages production activities on the shop floor. Takt Time – Production rate required to meet customer demand. Throughput – Output rate of a manufacturing process. Work Order (WO) – Instruction authorising production or repair work. Work-in-Process (WIP) – Items still under production but not yet finished. MANUFACTURING SYSTEMS GLOSSARY: 100+ TERMS EVERY OPERATIONS LEADER SHOULD KNOW GLOSSARY GLOSSARY Maintenance, Reliability & Asset Management Asset Criticality – Ranking assets by operational importance. Calibration – Adjusting instruments to maintain accuracy. Computerized Maintenance Management System (CMMS) – Software for managing maintenance tasks and asset history. Condition Monitoring – Tracking parameters like vibration and temperature to detect early failure signs. Condition-Based Monitoring (CBM) – Maintenance triggered by equipment condition. Corrective Maintenance – Repairs made after failure occurs. Maintenance Backlog – List of pending maintenance work. Maintenance Work Order – Document specifying maintenance activities and schedule. Mean Time Between Failures (MTBF) – Average time between asset failures. Mean Time To Repair (MTTR) – Average time to fix and restore an asset. Predictive Maintenance (PdM) – Uses data to predict when maintenance is needed. Preventive Maintenance (PM) – Scheduled maintenance to prevent breakdowns. Reliability-Centered Maintenance (RCM) – Maintenance focused on preserving function based on risk. Shutdown / Turnaround – Planned downtime for major maintenance work. Spare Parts Management – Planning and control of spares to ensure reliability. Total Productive Maintenance (TPM) – Involves operators in proactive maintenance to improve uptime. MANUFACTURING SYSTEMS GLOSSARY: 100+ TERMS EVERY OPERATIONS LEADER SHOULD KNOW GLOSSARY GLOSSARY Planning, Scheduling & Inventory Control Available-to-Promise (ATP) – Quantity that can be promised to customers without affecting existing orders. Backorder – Orders delayed due to insufficient stock. Capable-to-Promise (CTP) – Checks future capacity and materials before confirming delivery. Cross-Docking – Direct transfer of goods from inbound to outbound trucks. Demand Planning – Forecasting customer needs based on past data. Economic Order Quantity (EOQ) – Optimal order quantity balancing costs. Forecast Accuracy – How close the predicted demand is to actual sales. Lead Time – Time from order receipt to product delivery. Lead Time Demand – Forecasted demand during the replenishment period. Lot Size – Batch size for production or ordering. On-Time In-Full (OTIF) – Orders delivered as promised and in full quantity. Order Fulfilment Cycle Time – Duration from order receipt to delivery completion. Reorder Point (ROP) – Inventory level triggering new order placement. Safety Stock – Extra inventory to mitigate supply or demand uncertainties. Sales & Operations Planning (S&OP) – Aligns sales, production, and inventory plans. Sales, Inventory & Operations Planning (SIOP) – Integrates inventory targets into S&OP. Warehouse Management System (WMS) – Manages warehouse operations—receiving, picking, dispatching. MANUFACTURING SYSTEMS GLOSSARY: 100+ TERMS EVERY OPERATIONS LEADER SHOULD KNOW GLOSSARY GLOSSARY Quality & Continuous Improvement Acceptance Sampling – Quality decision based on inspecting sample lots. Andon – Visual/audible alert indicating process issues. Corrective and Preventive Action (CAPA) – Root-cause elimination and preventive improvement. Control Chart – Tracks process stability using statistical data. Control Plan – Defines controls and responses to deviations. Defects Per Million Opportunities (DPMO) – Metric expressing defects per million chances. Deviation – Approved, temporary departure from procedure. Failure Modes and Effects Analysis (FMEA) – Identifies and mitigates potential failure risks. First Pass Yield (FPY) – Percentage of units passing without rework. Gage Repeatability & Reproducibility (Gage R&R) – Measurement variation study. Inspection Plan – Details inspection frequency and criteria. Kaizen – Continuous small-step improvement culture. Nonconformance Report (NCR) – Records product or process noncompliance. Poka-Yoke – Error-proofing method preventing mistakes. Process Capability (Cp, Cpk) – Statistical measure of process performance. Quality Management System (QMS) – Framework ensuring quality consistency. Rework – Correcting defective products to meet standards. Root Cause Analysis (RCA) – Identifying underlying causes of problems. Scrap Rate – Percentage of unusable materials. Six Sigma – Defect reduction through data-driven process control. Statistical Process Control (SPC) – Statistical techniques for monitoring processes. MANUFACTURING SYSTEMS GLOSSARY: 100+ TERMS EVERY OPERATIONS LEADER SHOULD KNOW GLOSSARY GLOSSARY Automation, Digitalisation & Industry 4.0 Big Data Analytics – Analysing vast data sets for insights. Cloud Manufacturing – Cloud-based systems for collaborative production. Collaborative Robot (Cobot) – Robot safely working alongside humans. Cyber-Physical System (CPS) – Integration of digital and physical systems. Digital Twin – Virtual replica of a physical asset or process. Distributed Control System (DCS) – Networked system managing continuous processes. Human–Machine Interface (HMI) – Dashboard for machine monitoring/control. Machine Learning (ML) in Manufacturing – AI algorithms learning from manufacturing data. Machine Vision – Automated visual inspection and guidance. Programmable Logic Controller (PLC) – Industrial controller for automation. Real-Time Analytics – Instant analysis of operational data. Real-Time Location System (RTLS) – Tracking of assets or personnel. MANUFACTURING SYSTEMS GLOSSARY: 100+ TERMS EVERY OPERATIONS LEADER SHOULD KNOW GLOSSARY GLOSSARY Process, Compliance & Risk Management Audit Trail – A Chronological record of changes and actions. Batch Record – History of each manufactured batch. Change Control – A Structured process for system modifications. Deviation – Temporary authorised deviation from standard procedure. Electronic Batch Record (EBR) – A Digital form of batch documentation. Good Manufacturing Practice (GMP) – Regulations ensuring product safety and quality. Hazard Analysis & Critical Control Points (HACCP) – Preventive food/pharma safety approach. ISO 9001 – Standard for quality management systems. ISO 14001 – Environmental management standard. ISO 45001 – Occupational health and safety standard. ISO 50001 – Energy management standard. Recall Management – Identification and removal of defective products. Risk Assessment – Evaluation of potential operational hazards. Risk Register – Log of identified risks and mitigation plans. Serialisation – Unique numbering for product traceability. Traceability – Tracking materials, production, and logistics history. MANUFACTURING SYSTEMS GLOSSARY: 100+ TERMS EVERY OPERATIONS LEADER SHOULD KNOW GLOSSARY GLOSSARY Operations Excellence & Organisational Management Balanced Scorecard – Holistic performance measurement across multiple dimensions. Business Process Reengineering (BPR) – Radical redesign of workflows for performance gains. Center of Excellence (CoE) – Unit promoting best practices and innovation. Change Management – Process of managing organisational transitions. Continuous Improvement (CI) – Ongoing enhancement of systems and processes. Daily Management (Tiered Meetings) – Short daily reviews for issue resolution. Gemba – Observing actual work on-site for improvement insights. Hoshin Kanri – Strategy deployment aligning daily activities with goals. Key Performance Indicator (KPI) – Measurable value assessing progress toward targets. Operational Excellence (OpEx) – Culture and methods for sustainable performance improvement. RACI Matrix – Defines roles: Responsible, Accountable, Consulted, Informed. Skills Matrix – Visualising team skill levels and training gaps. Standard Operating Procedure (SOP) – Step-by-step task guide. Standard Work – Documented best method to perform a process. Training Matrix – Mapping employee training requirements by role. Value Stream Mapping (VSM) – Visual mapping of process steps and waste. Visual Management – Displays making status and issues visible instantly. MANUFACTURING SYSTEMS GLOSSARY: 100+ TERMS EVERY OPERATIONS LEADER SHOULD KNOW GLOSSARY GLOSSARY Tools, Metrics & Methodologies 5S – Sort, Set in Order, Shine, Standardise, Sustain. Andon – Signal system indicating process status. Heijunka – Production levelling to smooth workflow. OEE (Overall Equipment Effectiveness) – Combines availability, performance, and quality. SMED (Single-Minute Exchange of Dies) – Reduces equipment setup times. Theory of Constraints (TOC) – Identifying and improving process bottlenecks. Waste (Muda) – Non-value-adding activities. Work Instruction (WI) – Task-level procedural guidance. Supply Chain & Logistics 3PL (Third-Party Logistics) – Outsourced provider managing logistics services. Drop Shipping – Supplier ships directly to customer bypassing manufacturer. Incoterms – International shipping and responsibility rules. Inventory Turnover – How many times stock is sold/used per period. On-Time In-Full (OTIF) – Delivery performance metric. Pull System – Production triggered by actual demand. Push System – Production based on forecasted demand. Safety Stock – Buffer inventory against uncertainties. Supply Chain Management (SCM) – Coordination of end-to-end material and information flow. Warehouse Management System (WMS) – Automates and optimises warehouse operations.