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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Nomenclature & Symbols


  • \( ADQP \)  -  advanced product quality planning
  • \( AML \)  -  approved manufacturer list
  • \( AVL \)  -  approved vendor list
  • \( ABOM \)  -  assembly bill of materials
  • \( A \)  -  availability
  • \( BOM \)  -  bill of materials
  • \( BOM Level \)  -  bill of materials level
  • \( CBOM \)  -  configurable bill of materials
  • \( CM \)  -  contract manufacturer
  • \( CAPA \)  -  corrective action/protective action
  • \( CAR \)  -  corrective action request
  • \( COGM \)  -  cost of goods manufactured
  • \( CAC \)  - customer acquisition cost
  • \( CCR \)  - customer churn rate
  • \( CLV \)  - customer lifetime value
  • \( DHF \)  -  design history file
  • \( DHR \)  -  design history record
  • \( DMR \)  -  device master record
  • \( DCR \)  -  document change request
  • \( EBOM \)  -  engineering bill of materials
  • \( ECAD \)  -  electrical computer aided design software
  • \( EDA \)  -  electronic design automation
  • \( ETR \)  -  employee turnover rate
  • \( ECN \)  -  engineering change notice
  • \( ECO \)  -  engineering change order
  • \( ECR \)  -  engineering change request
  • \( ERP \)  -  enterprise resource planning
  • \( FFF \)  -  field fail request
  • \( FFF \)  -  form, fit & function
  • \( FCFF \)  - free cash flow to the firm
  • \( GMP \)  -  good manufacturing practice
  • \( JIT \)  -  just-in-time manufacturing
  • \( KIPs \)  -  key performance indicators
  • \( MBOM \)  -  manufacturing bill of materials
  • \( MCO \)  -  manufacturing change order
  • \( MCR \)  -  manufacturing change request
  • \( MES \)  -  manufacturing execution systems
  • \( MWI \)  -  manufacturing work instructions
  • \( MRP \)  -  material requirements planning
  • \( MCAD \)  -  mechanical computer aided design software
  • \( NPD \)  -  new product developement
  • \( NPD Process \)  -  new product developement process
  • \( NPI \)  - new product introduction
  • \( OEM \)  -  original equipment manufacturer
  • \( OEE \)  -  overall equipment effectiveness
  • \( P \)  -  performance
  • \( PM \)  -  preventative maintenance
  • \( PDM System \)  -  product data management system
  • \( PBOM \)  -  production bill of materials
  • \( PDP \)  -  product developement process
  • \( PLM \)  -  production lifecycle management
  • \( PP\)&\(E\)  -  property, plant, and equipment
  • \( Q \)  -  quality
  • \( QA \)  -  quality assurance
  • \( QC \)  -  quality control
  • \( QMS \)  -  quality management system
  • \( RMA \)  -  return material authorization
  • \( SBOM \)  -  sales bill of materials
  • \( SOP \)  - standard operating procedure
  • \( SKU \)  -  stock keeping unit 
  • \( SCAR \)  -  suppliers corrective action request
  • \( TBOM \)  -  template bill of materials
  • \( TTM \)  -  time to market


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.
  • 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 turnover  -  A measure of how efficiently assets are used to produce sales.
  • Availability  -  Takes into account all events that stop planned production like breaks, lunches, or pre-arranged time.

  • Avoided cost  -  An estimated saving based onpreventive measures.


  • 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.


  • 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.
  • 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 quality  -  The sum of all costs associated with conformance and nonconformance.
  • Cycle time  -  The time it takes one part to be processed at an individual process step.


  • 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.


  • 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.


  • Fill order  -  An order that has had all its requirements met and can be closed.
  • Finished goods  -  An item that is manufactured for sale.
  • Forecast  -  An estimate of how much of an item should be produced over a specific period of time. 


  • 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.


  • 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.
  • 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 giben containers of all parts needed for the production of a product.


  • 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 aims to reduce waste time.


  • 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.
  • Manufacturing bill of materials  -  A list of all sub-assemblies or items essential to produce a shippable finished product.
  • Markup  -  A markup of price spread is the difference between the selling price of a product and the cost incured to manifacture it.
  • 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.


  • 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.
  • 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. 


  • 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.
  • 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.
  • Preventative maintenance  -  Maintenance activities performed by machine operators at regularly scheduled intervals to keep equipment in good working order.
  • 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.
  • Promise date  -  The date that the customer has been told to expect to receive the order. 
  • 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.


  • Replaced item  -  An item in a mass uptate to bill of materials that is removed from the bills of materials. 
  • Return  -  An item or merchandise returned by a customer to your company.
  • Run time  -  The scheduled production time and its running.


  • Sales bill of materials  -  Provides information about a product in the sales stage.
  • Sales order  -  A request for goods or services. 
  • 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.
  • 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.
  • Standard operating procedure  -  A set of clearly written instructions which outline the steps or tasks needed to complete a job.
  • 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.


  • 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.


  • 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.
  • Workpiece  -  A piece being worked on.





Display #
Accounts Receivable Turnover Ratio
Annualized Rate of Return
Average Accounts Receivable
Avoided Cost
Bank Efficiency Ratio
Breakeven Sales Volume
Capital Expenditure
Capitalization Rate
Cash Ratio
Common Stock
Compound Interest
Cost of Capitol
Cost of Debt
Cost of Equity
Cost of Goods Sold
Cost per Unit
Current Ratio
Days Payable Outstanding
Debt Ratio
Debt-to-Capital Ratio
Debt-to-Equity Ratio
Degree of Financial Leverage