Manufacturing Engineering

manufacturing banner 3Manufacturing is a person of company that uses raw materials to produce finished goods by using various equipment and processes.  Then the finished goods are distributed or sold directly to other manufacturers for assembly, or individuals/companies for distribution or sale.




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Manufacturing processe Types (origional 5)

A manufactuting process is how a company builds or creates products.  Each manufacturer establishes their own production method based on their customer demand, materials required, assembly process, and sales forcasts.

  • Discrete Manufacturing  -  Similar to repetitive manufacturing, with the same dedicated lines but with a variation of setup and changeoper frequencies.
  • Job Shop Manufacturing  -  Unlikely you will have discrete or repetitive processes.  There will have dedicated areas or workstations for a single or multiple product.
  • Process Manufacturing (Batch)  -  Similar to discrete, but when one batch is complete, the equipment is cleaned and readied for the next product.
  • Process Manufacturing (Continuous)  -  Similar to repetitive, but the process produces raw materials like gasses, liquids, powders, and slurries.
  • Repetitive Manufacturing  -  A process that has dedicated assembly/production lines that produce the same item/items 24/7, all year round.


Manufacturing processe Types (other)

  • Additive  -  A 3D printing process.  There are more types of 3D printing.
    • Fused Deposition  (FDM)  -  These printers use a thermoplastic filament, which is heated to its melting point and then extruded.
    • Stereolithography (SLA)  -  Uses a vat of liquid photopolymers resin that can be cured.  The build plate moves in small increments and the liquid polymer is exposed to light where the UV lasier draws a cross-section layer by layer.
  • Casting  -  Pouring of material into a mold.
    • Centrifugal  -  A molten material is poured into a circular mold rotating around its center axis.
    • Die  -  Molten metal entering a cavity under pressure.
    • Investment  -  A wax casting is made and used to create a mold from the master pattern.
  • Forming  -  The metal is subjected to heavy loads to permanently deform without adding or removing the material.
    • Bending  -  Process creating U-shaped or V-shaped bends on a material.
    • Compressive  -  Compression stress is applied to the material resulting in an alteration of the shape.
    • Shearing  -  Altering the metal shape with shear force.
    • Tensile  -  An applied stress to a material resulting in stretching of the material.
  • Joining  -  When components are joined togeather temporarily or permanently.
    • Adhesive Bonding  -  The joining of a material or materials with an adhesive.
    • Press Fitting  -  Two parts engineered to join together perfectly.
    • Welding  -  Fabrication process that fuses like materials togeather by heating them to a suitable temperatures.
  • Machining  -  A material removal process where the raw material is shaped into the desired product.
  • Moulding  -  Shaping liquid or pliable raw materials using a mold.
  • Painting and Labeling  -  This is what happens at the end of the manufacturing process.
    • Inkjet Printer  -  A process that deposits tiny drops of ink rom a nozzle onto paper from a moving carriage assembly.
    • Laser Engraving  -  A concentrated beam of light that cuts through the material creating a detailed shape.
    • Rotary Engraving  -  A rotary tool cuts away the material creating the desired shape.


Manufacturing Engineering GlossaRy


  • Advanced Product Quality Planning  -  A structured method of defining and establishing the steps necessaty to assure that a product satisfies the customer.
  • Amortization  -  The paying off of debt in regular installments, till loan principle reduces to zero.
  • Annualized Rate of Return  -  The equivalent annual return that an investor earns over the investment holding period.

  • Apprenticeship  -  A form of on-the-job training for practitioners that will give them a license or journeyman's level of competencies.
  • Approved Manufacturer List  -  A set of approved relationships between manufacturer parts and a company's internal parts.
  • Approved Vendor List  -  Ensures purchased products arrive on time and meet your quality control.
  • Assembly Bill of Materials  -  A list of the items and resources that are required to assemble the parent item.
  • Asset  -  Anything of value or a resource of value that can be converted into cash.
  • Asset Turnover  -  A measure of how efficiently assets are used to produce sales.
  • Asset Turnover Ratio  -  Measures the value of the company's sales revenue in relation to the value of your company's assets.
  • Availability  -  Takes into account all events that stop planned production like breaks, lunches, or pre-arranged time.

  • Average Accounts Receivable  -  The average amount of receivables during a reported period.

  • Avoided Cost  -  An estimated saving based onpreventive measures.


  • Backflushing  -  A method of accounting for the use of resources, labor and machine time, and items, based on standards that was defined
  • Bank Efficiency Ratio  -  How effectively the company is performing currently by using its internal resources.

  • Bill of Materials  -  A list of parts, raw materials, and accessories, descriptions, part name, part number, quantity, reference designation, procurement type, that make up the assembly or entire product.
  • Bill of Materials Level  -  The place occupied by a part on the ranking of the bill of materials.
  • Bottleneck  -  Any point at which movement is slowed because demand placed on a resource is greater than capacity.
  • Breakeven Sales Volume  -  The amount of product that you will need to produce and sell to cover total costs of production.


  • Capital Expenditure  -  The amount of money that needs to be spent on a project to see it from design through completion.

  • Capitalization Rate  -  The rate of return for an investor.

  • Cash ratio  -  Is used to measure the liquidity of a company.

  • Change Request  -  Outlines a problem and proposes an action to address the problem.
  • Changeover  -  The time required to modify a system or workstation, including teardown and setup.
  • Child Item  -  An item that appears in the bill of materials of another item.
  • Common Stock  -  The number of shares of a company that is found on in balance sheet.

  • Compound Interest  -  The interest earned on an investment or paid on a loan.

  • Configurable Bill of Materials  -  Contains all the components that are required for manufacturing the material to the customer's detailed requiremenrs.
  • Contract Manufacturer  -  A third-party manufacturer of parts or products for a company.
  • Corrective Action/Protective Action  -  Investigates and solves problems, identifies causes, and takes corrective action to solve the problem.
  • Corrective Action Request  -  Sent to a supplier when an item or process needs a remedy.
  • Cost  -  Expenses, overhead or the price of a product or service.
  • Cost of Capitol  -  A company's cost of all its debt plus the cost of all its equity.
  • Cost of Debt  -  The debt a company owes its lenders.

  • Cost of Equity  -  The rate of return a company expects on their equity inestments to compensation for the risk profile of the asset.

  • Cost of Goods Sold  -  The compared inventory at the start of a given period to the end of a given period.

  • Cost of Quality  -  The sum of all costs associated with conformance and nonconformance.
  • Cost per Unit  -  How much is spent producing a single unit of a single product or service.

  • Current Ratio  -  A company's ability to pay their short-term obligations with their current assets.

  • Cycle Time  -  The time it takes one part to be processed at an individual process step.


  • Days Payable Outstanding  -  The number of average days from when a company purchases inventory and materials until the supplier is paid.

  • Deliverable  -  Any unique and verifiable product, result, or capability to perform a service that is performed to complete a process, phase, or project.
  • Debt Ratio  -  The difference between total assets and total debt.

  • Debt-to-capital Ratio  -  Indicates how leveraged a company is by dividing its intrest-bearing debt with its total capital.

  • Debt-to-equity Ratio  -  How much debt a business has compared to its equity.

  • Degree of Financial Leverage  -  Used to measure the sensitivity of a corporations earnings per share to its equity capital.

  • Depreciation  -  The process of deducting the cost of a business asset over a long perion of time.

  • Design Deliverables  -  Technical drawings and schematics, presentations, reports, and specifications for engineering.
  • Design History File  -  Contains or references the records necessary to demonstrate that the design was developed in accordance with the approved design plan.
  • Device Master Record  -  A record of all information about how a product was produce, including drawings, instructions, and any other records.
  • Direct Labor  -  The time spent by one or more production workers on filling a specific manufacturing order.
  • Document Control  -  The function of management and controlling product documentation.
  • Down Day  -  A day when the facility, entire shop floor, or a specific work place is not in production.


  • Earned Value  -  The measure of work performed in terms of the budget authorized for that work.
  • Earnings per Share  -  How much money a company makes for each shares.

  • Economic Order Quantity  -  The ideal order quantity that a company should make for its inventory given a set cost of production.

  • Effective Tax Rate  -  The tax you actually pay versus the income you earn.

  • Engineering Bill of Materials  -  Specifies parts or assemblies designed by the engineering department.
  • Engineering Change Notice  -  A form that communicates the details of an approved change to someone who needs to know about the change.
  • Engineering Change Request  -  A suggestion that can be submitted to management to solve a problem or make improvement to a product.
  • Equity Ratio  -  Measures the value of the asses which are financed using the owner's equity.
  • Expense Ratio  -  The measures the expense incured to manage the fund as a porportion of the total investment.


  • Facilities  -  Buildings that are built, installed or established to serve a particular use.
  • Fast Tracking  -  A schedule compression technique in which activities or phases normally done in sequence are performed in parallel for at least a portion of their duration.
  • Fill Order  -  An order that has had all its requirements met and can be closed.
  • Finished Goods  -  An item that is manufactured for sale.
  • Float  -  The amount of time that a schedule activity can be delayed without delaying the early start date of any successor or violating a schedule constraint.
  • Forecast  -  An estimate of how much of an item should be produced over a specific period of time.
  • Free Cash Flow  -  How much cash a business generates after capitol expenditures during a given period of time.

  • Free Cash Flow to the Firm  -  The available cash flow for investors.


  • Good Manufacturing Practice  -  A system of processes, procedures, and documents that help ensure that the products are consistantly produces and controlled according to quality standards.
  • Gross Profit  -  Measures the amount of sales that exceded the cost of the goods sold.


  • Hours per Shift  -  The amount of time per shift actually spent working on the assigner task.


  • Indirect Labor  -  The time spent on tasks that are not directly related to filling a specific manurfacturing order.
  • Interest Coverage Ratio  -  How many times a company can pay its interest expenses from its earnings.

  • Internal Growth Rate  -  The highest rate of growth a company is able to achieve without using any external funds.

  • Inventory Turnover  -  The number of times a business sells or uses inventory over the course of a defines time period.

  • Item Type  -  A code to designate the accounting class for the item, such as discontinued, inventory, and miscelaneous charges.


  • Just-in-time Manufacturing  -  A production model in which items are created to meet demand, not created in surplus of in advance of need.


  • Key Performance Indicators  -  Calculations that helps you measure the sucess about the performance of the line, plant, and/or company.
  • Kit  -  A group of finished items that compose a set.
  • Kitten  -  A process where assemblers are given containers of all parts needed for the production of a product.


  • Labor Costs per Unit  -  The total of all wages, benifits, and taxes a company pays to produce a single item.
  • Labor Force Participation Rate  -  The porporation of the total working age population that is available to work as part of the labor market.

  • Labor Hourly Rate  -  The total of all benifits, travel, per diem, and overhead a company pays to a single employee.
  • Labor Time  - The number of employee hours required to complete the operation.
  • Lead Time  -  The time between a customer's initial purchase and the delivery of the product.
  • Lean Manufacturer  -  A practice that shortens the time between the customer order, the product built and shipment, by eliminating sources of waste.


  • Machinability Index  -  Used to compare the machinability of different materials in the various cutting process.
  • Made to Order  -  An order fulfillment method for made items. 
  • Made to Spec  -  A term that describes a product that is made ot the specification of an internal design or by a supplier.
  • Maintenance Backlog  -  Maintenance that has not been performed yet.
  • Maintenance Inspection  -  The process of evaluation the condition of an asset or piece of equipment.
  • Maintenance Log  -  A detailed document that records all maintenance tasks that have been performed on an asset or piece of equipment.
  • Maintenance Planning  -  A defined process used to develope an action plan that includes all maintenance, repair, and construction work.
  • Maintenance Schedule  -  The routine maintenance and/or inspections that are preformed during a given time frame to repair and upkeep assets and equipment.
  • Maintenance Shut-down  -  A temporary closure of a building or department to perform maintenance.
  • Maintenance Troubleshooting  -  The process of identifying problems when the issue is not immediately obvious.
  • Manufacturing Bill of Materials  -  A list of all sub-assemblies or items essential to produce a shippable finished product.
  • Manufacturing Overhead  -  All indirect costs incured during the production process that can not be traced to the object cost.

  • Marginal Cost  -  The increade or decrease in cost to prodicing one more unit or sreving one more customer.
  • Market Share  -  The percentage of sales of a product in units, or dollors relative to all sales of a product.
  • Markup  -  A markup of price spread is the difference between the selling price of a product and the cost incured to manifacture it.
  • Material Test Report  -  A quality assurance document in the steelmaking industry that certifies a material's compliance with approperate ASTM standards, applicable dimensions, and physical and chemical specifications.
  • Multi-level Bill of Materials  -  A list of all components directly or indirectly involved in building the parent part, togeather with the required quantity for each item.


  • Net Asset Value  -  How much an asset will sell for.

  • Net cash Flow  -  The cash generated or lost by a business over a certain period of time.

  • Net Credit Sales  -  The sales a company makes to its customers on credit, minus the value of any returned items and allowances.
  • Net Income  -  The amount of profit made by a company after paying all of its expenses.
  • Net Increase in PP&E  -  The increase or decrese in the value of PP&E between the current year and the previous year.
  • Net Interest Margin  -  Can determine weather the earning assets are actually making enough money to justify the interest expense or if the company would of been better off just paying off its debt to decrease the interest expense.

  • Net Margin  -  See Net Profit Margin
  • Net Operating Profit After Taxes  -  How much profit a company generates by looking at its operating income minus taxes.

  • Net Profit Margin  -  The percentage of revenue left after all expenses have been deducted from sales.

  • Net Profit Percentage  -  The percentage of profits after paying all expenses.

  • Net Sales  -  The total sales after accounting for discounts given, items returned, and allowances (adjustments for damaged goods).

  • New Product Developement  -  The total process that takes a service or a product from concept to market.
  • New Product Introduction  -  All the activities within an organization to define, develope and launch a new or improved product.


  • Off-the-shelf  -  An item that is producedfrom a supplier as-is, with no modifications.
  • Operating Cash Flow  -  How much cash a business generates after capitol expenditures during a given period of time.

  • Operating Cash Flow Ratio  -  The ability of a company to meet its short-term obligations.

  • Operating Cost  -  The day-to-day costs associated with operating a buisness.

  • Operating Income  -  The revenue after deducting all the operating expenses.
  • Operating Profit  -  The total profit a company generates in a given accounting period from all its operations.
  • Operating Profit Percentage  -  The total profit a company generates in a given accounting period from all its operations compared to its revenue.
  • Operational Expenditure  -  The amount of money that needs to be spent after a projects completion to continue its use.
  • Opportunity Gap  -  The difference between what an asset is capable of producing and what it actually produces.
  • Original Equipment Manufacturer  -  A company that manufacturers a product that is sold to another company.
  • Output  -  The number of parts produced during a given time.
  • Outsourced Service  -  A service that is part of the manufacturing processes that is purchased from the vender.
  • Overhead  -  Costs incured that cannot be directly related to the prducts or serviced produced.
  • Owner's Equity  -  The resources of a business that are owned by the common an perferred stock shareholders of a company.


  • Parent Item  -  An item that contains another item in the bill of materials.
  • Part Name  -  A unique name assigned to a part.
  • Part Number  -  A unique numerical value assigned to a part.
  • Payback period  -  The time in which the initial investment is expected to recover through the cash inflows generated by the investment.

  • Performance  -  Anything that causes the manufacturing process to run at less than maximum possible speed.
  • Pick-to-ship Cycle Time  -  The period from when an order is released to be picked until the time the order has shipped.
  • Planned Maintenance  -  Scheduled maintenance activities carried out according to a documented plan of tasks, skills, and resources.
  • Plant Maintenance  -  A set of activities that are necessary to keep machinery, parts, and types of equipment in good operating conditions to avoid production stoppage and loss.
  • Point of Use  -  Ensures people have exactly what they need to do their job, the right work instructions, parts, tools and equipment. 
  • Preventative Maintenance  -  Maintenance activities performed by machine operators at regularly scheduled intervals to keep equipment in good working order.
  • Price to Earnings Ratio  -  A way of gauging wheather the stock price is high or low compared to the past or to other companies.
  • Prime Cost  -  Any expenditure that directly relates to the production of finished goods.
  • Process  -  Also called procedure, an operation or an activity.
  • Process Control  -  The monitoring of the production process through software.
  • Process Security  -  A type of security that allows you to restrict authority for completing a manufacturing process. 
  • Product  -  Something that is produced.
  • Product Data Management System  -  System used to hold mechanical CAD files, including parts and assembly models as well as drawing files.
  • Product Developement Process  -  Begins with market research and idea generation, and ends with a successful product offered to the general public.
  • Production Lifecycle Management  -  Management of the products records, including bill of materials, specifications, changes and revisions from beginning to end.
  • Productivity  -  A measure of work effectiveness that businesses.

  • Profit  -  A company's earnings relative to its revenue.
  • Profit per Unit  -  The subtracted cost of the product from tha sale price of the item.

  • Project Manager  -  The stakeholder assigned by the performing organization to manage the work required to achieve the project objectives.
  • Promise date  -  The date that the customer has been told to expect to receive the order.
  • Protective Device  -  Assets and devices used to protect equipment, machinery, components to reduce the consequences of equipment failure.
  • Prototype  -  A sample built of a product.
  • Pull Production  -  The process in which products are made only when the customer has ordered a product, and not before.
  • Push Production  -  The process in which products are made using customer estimates rather than the customer has ordered a product, and not before.


  • Quality  -  The ratio between good count produced and the total units that were started.
  • Quality Assurance  -  Ensures you are doing the right thing the right way.
  • Quality Control  -  Ensures that the results of what you have done is what is expected.
  • Quantity to Fill  - An amount of a product that was ordered but has not been received.
  • Quality Management System  -  A framework for product and service developement that optimizes for the continuous improvement of quality.
  • Quick Ratio  -  Measures the ability of an individual or business to pay for current liabilities.


  • Rate of Return  -  The return an investor expects from his investment.
  • Rebuild  -  Restoring an item to an acceptable condition in accordance with the origional design.
  • Refurbish  -  Clean, refine, reconditioned, renovated parts to make the parts usable.
  • Replaced Item  -  An item in a mass uptate to bill of materials that is removed from the bills of materials.
  • Retention Ratio  -  Measures the amount of earnings retained by a company after dividends have been paid out.
  • Return  -  An item or merchandise returned by a customer to your company.
  • Return on Asset  -  A company's net income divided by its average total assets.

  • Return on Capital Employed  -  How efficient a company is at using its capital to generate profits and use its capital efficiently.

  • Return on Equity  -  The ability of a firm to generate profits from its shareholders investments in the company.
  • Return on Invested Capitol  -  How good a company is at turning capital into profits.

  • Return on Sales  -  How efficiently a company can generate operating profit from its revenue.
  • Revenue  -  The total amount of income generated by the sale of goods and services to its customers and clients.
  • Route Cause Analysis  -  The process of discovering the root causes of problems in order to identify appropriate solutions.
  • Run Time  -  The scheduled production time and its running.
  • Running Maintenance  -  Can be done while equipment is still operating.
  • Running Maintenance Tasks  -  Tasks that are performed on a regular basis.
  • Run-to-failure  -  No scheduled maintenance plan beyond replacement ehen if fails.


  • Safety  -  A measure and practice taken to protect against emotional, financial, physical, social and other types of accidents or damage to an individual or individuals.
  • Sales Bill of Materials  -  Provides information about a product in the sales stage.
  • Sales Order  -  A request for goods or services.
  • Salvage Value  -  The effective life usage got equipment such as machinery. vehicles, etc.
  • Scheduled Maintenance  -  Pre-planned tasks performed on a maintenance schedule to keep assets in good operating condition.
  • Scheduled Operating Time  -  The percentage of time when an asset is scheduled to be in operation and is available to operate.
  • Scheduled Work Order  -  A work order that has been planned and included on a maintenance schedule.
  • Setup Time  -  The number of hours needed to prepare the work area prior to the operation.
  • Shipping Date  -  The date when a sales order leaves your warehouse or office. 
  • Shipping Method  -  The manner in which the items are transported from the supplier to be manufacturer.
  • Shrinkage  -  The loss of materials.
  • Shutdown  -  The period of time that equipment is out of service.
  • Shutdown Maintenance  -  Maintenance that can only be done while equipment is shutdown.
  • Single-level Bill of Materials  -  A simple list of of parts, not ment for a complex product list.
  • SKU  -  A unique numerical sales stock identifier usually controlled by the business side if the company.
  • Spare Parts Inventory  -  Having the right stock of critical parts available while keeping the costs of inventory parts and supplies at a minimum.
  • Stakeholder  -  A person or group who has intrests that may be affected by an initiative or influence over it.
  • Standard Operating Procedure  -  A set of clearly written instructions which outline the steps or tasks needed to complete a job.
  • Standby  -  Assets installed or available but not being used.
  • Supplier  -  A person or company that supplies goods or services to a manufacturer.
  • Supply Chain  -  A sequence of processes involved in the manufacturing, transportation and selling of a product.


  • Total Cost  -  The total of all expenses associated with the manufacturing order.
  • Total Material Costs  -  All the manufacturing raw or direct material costs for a given product or a certain service.


  • Unit Cost  -  The value of resources and time consumed to create one unit of product.


  • Variance  -  The difference between two values like estimated and calculated expenses.


  • Warehouse Racking  -  A system of shelves, configurations and location of the physical structure needed to store inventory.
  • Welding  -  The fabrication process that fuses like materials togeather by heating them to a suitable temperatures, this can be acomplished by brazing, soldering or welding.
  • Workflow  -  A step-by-step process that allows you to understand how components must come togeathed to produce a finished product.
  • Work in Progress  -  Items between machines or equipment waiting to be processed.
  • Work Load  -  The amount of work units assigned to a resource over a period of time.
  • Work Package  -  A deliverable at the lowest level of the work breakdown structure, when that deliverable may be assigned to another person.
  • Workpiece  -  A piece being worked on.
  • Workplace Safety  -  The working environment at a company, that includes the health, safety, and well-being of it's employees.






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Accounts Receivable Turnover Ratio
Annualized Rate of Return
Asset Turnover Ratio

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