Manufacturing Terms
Key terminology used on the manufacturing floor
MES (Manufacturing Execution System)
MES is a system that tracks and manages the production process from raw materials to finished goods in real-time, serving as a critical data source for AI-powered smart manufacturing.
ERP (Enterprise Resource Planning)
ERP is an integrated system managing core business processes like manufacturing, purchasing, inventory, and sales, evolving into the core infrastructure for smart manufacturing through AI integration for demand forecasting and production optimization.
SCADA (Supervisory Control and Data Acquisition)
SCADA is a system for real-time remote monitoring and control of manufacturing equipment and processes, serving as core infrastructure for intelligent manufacturing through integration with AI for predictive maintenance and process optimization.
PLC (Programmable Logic Controller)
PLC is an industrial computer that controls manufacturing processes in real-time, serving as the critical execution layer that applies AI predictions to actual equipment and collects operational data.
OEE (Overall Equipment Effectiveness)
OEE measures actual production efficiency by multiplying availability, performance, and quality rates, and can be optimized through AI-based predictive maintenance and real-time monitoring.
Cycle Time
Cycle time is the total time required to complete one product, serving as a key metric for measuring production efficiency. AI-based real-time monitoring and predictive analytics enable process optimization and early anomaly detection.
Throughput
Throughput is the rate at which products move through production and reach end-users, serving as a critical indicator of actual manufacturing capacity.
Yield (Engineering)
Yield is the critical point where material transitions from elastic to permanent plastic deformation, serving as a fundamental criterion for metal forming process design and quality control.
BOM (Bill of Materials)
BOM (Bill of Materials) is a systematic list of all components and quantities needed for product manufacturing, serving as the foundation for production, purchasing, and inventory management, and critical data for AI-driven demand forecasting and quality traceability.
WIP (Work in Process)
WIP (Work In Process) encompasses all intermediate inventory before becoming finished goods, serving as a key metric for improving production efficiency and cash flow through AI-based real-time monitoring and optimization.
Lead Time
Lead time is the total duration from order to delivery, which can be shortened through AI prediction models that identify bottlenecks and optimize production schedules for improved delivery performance.
Takt Time
Takt time is the average production time allowed per unit to meet customer demand, serving as a key metric for synchronizing production lines with demand. AI-enabled real-time monitoring and optimization enable dynamic demand response.
Lean Manufacturing
Lean Manufacturing is a methodology that eliminates waste and maximizes efficiency in production systems, now combined with AI technology to enable real-time data analysis and predictive optimization.
JIT (Just-in-time Manufacturing)
JIT (Just-in-time manufacturing) is a production methodology that produces the right products at the right time in the right quantities to minimize inventory. AI-based demand forecasting and supply chain optimization maximize JIT effectiveness.
Kanban (Development)
Kanban is a lean methodology that visualizes workflow and limits WIP to enhance production efficiency, enabling bottleneck prediction and dynamic production planning in smart manufacturing when combined with AI.
Kaizen (Continuous Improvement)
Kaizen is a management philosophy where all employees participate in continuous, small improvements to eliminate waste and enhance productivity in manufacturing. Recently, it's being combined with AI data analysis to drive improvement activities more effectively.
Poka-yoke (Error Prevention)
Poka-yoke is a mechanism that prevents and corrects operator mistakes to avoid defects, evolving into intelligent error prevention systems using AI and computer vision in modern manufacturing.
Andon
Andon is a visual management system that immediately notifies quality or process problems in manufacturing, now evolving with AI technology to provide predictive alerts and pattern analysis capabilities.
Smart Manufacturing
Smart manufacturing maximizes adaptability and efficiency of production systems using AI and digital technologies, enabling predictive maintenance, automated quality inspection, and production optimization.
Industry 4.0 (Fourth Industrial Revolution)
Industry 4.0 is the Fourth Industrial Revolution paradigm that implements smart factories by integrating digital technologies such as AI, IoT, and big data into manufacturing operations.
IoT (Internet of Things)
IoT is a technology where physical objects with embedded sensors and communication capabilities exchange data over networks, serving as critical infrastructure for equipment monitoring, predictive maintenance, and quality control in manufacturing, as well as the data source for AI models.
OPC-UA (OPC Unified Architecture)
OPC-UA is an international standard communication protocol for data exchange between various equipment and systems in manufacturing, serving as core infrastructure for smart factory and manufacturing AI implementation.
IIoT (Industrial Internet of Things)
IIoT is a system that connects sensors and devices in industrial settings through networks to collect and analyze data, serving as the core data infrastructure for manufacturing AI.
Bottleneck Process
A bottleneck process has the lowest capacity in a production line, limiting overall production capability. AI enables real-time identification and prediction to improve productivity.
Downtime
Downtime is the period when manufacturing equipment stops operating. AI-based predictive maintenance can reduce unplanned downtime by 30-50%.
Changeover
Changeover is the process of converting a production line from one product to another, where AI can significantly optimize transition time and operational efficiency.
Value Stream Mapping (VSM)
Value Stream Mapping (VSM) is a lean management method that visualizes the entire process from production to customer delivery to identify and eliminate waste, now being integrated with AI-based process mining for real-time monitoring and optimization.
Gemba (Go to the Actual Place)
Gemba refers to the actual place where value is created, emphasizing that solutions to problems lie on the shop floor. Digital Gemba in the AI era collects and analyzes real-time site data through IoT and vision analytics.
SOP (Standard Operating Procedure)
SOP is a step-by-step work instruction document ensuring consistency and quality in manufacturing operations, serving as a knowledge base for AI systems and foundation for smart factory implementation.
Production Planning
Production Planning is a core manufacturing process that efficiently allocates resources including workforce, materials, and facilities to meet customer demand. AI supports decision-making by automatically generating optimal production schedules within complex constraints.