Supply Chain

Glossary of Industry 4.0

Glossary of Industry 4.0

Find a set of definitions of industry-sector terms as well as the meaning of many acronyms, because it must be admitted that it is easy to get lost in them!





3M

Muda, Mura, Muri

5G

5G, officially called IMT-2020, is the fifth generation of mobile-telephony standards. Characterized by its throughput, its low latency, and its ability to connect numerous objects, it was developed to avoid the network saturation announced for 2022 and to allow rapid tracking of objects.

Sales administration

This is the support function in contact with customers to inform them of the progress of schedules.

AMDEC

Failure Modes, Effects and Criticality Analysis (FMECA in English). It is a preventive-analysis tool that makes it possible to identify potential risks as well as their causes before they occur.

APS software

Advanced Planning and Scheduling Software. This is planning software for balancing load and capacity effectively.

ARPA

Average Revenue Per Account. It indicates the ability to generate revenue and to reach objectives.

ARR

Annual Recurring Revenue. Monthly billing of the customer as long as they use the SaaS.

ATO

Assemble To Order. This is a type of production strategy where the main parts of a product are manufactured separately then assembled. A high stock level is therefore needed. The customization of the finished product happens at the end of the assembly line. Consequently, the level of customization remains limited.

ATP

Available To Promise. This is a production strategy that meets customer demand according to the available resources.

Smoothed requirement

Distributing the load over a period of time, according to capacity.

Big Data

Big Data can be defined with what are called the three "V"s: more varied data, growing volumes, and higher velocity. Put differently, Big Data consists of complex data sets that come mainly from new sources. These data sets are so large that traditional data-processing software cannot handle them. However, these enormous quantities of data can be used to solve problems you could not solve before.

CAC

Customer Acquisition Cost. Measures how much an organization spends to acquire new consumers. It is the sum of the sales, marketing, and equipment expenses needed to win a new consumer.

Capacity

It corresponds to the potential production volume of a work center. The capacity formula varies according to the work centers, according to the customers... It can be calculated in hours or in parts, for example. Capacity formula: Number of hours available to run the machine X Production rate

Finite capacity

Excludes configurations that present workstation loads above 100%.

Infinite capacity

Each production operation is planned while ignoring the load caused by the other operations.

Work center

Grouping of machines having the same role on the same type of part to be produced.

CMJ

Average Daily Consumption (Consommation Moyenne Journalière). In industry, it is the average consumption of a part, a product, or a component.

Cloud Computing

Cloud computing is an infrastructure in which computing power and storage are managed by remote servers to which users connect via a secure internet connection. Connected objects become connection points to run applications or visualize data hosted on servers. The cloud is characterized by its flexibility, which allows service providers to automatically adjust storage capacity and computing power according to users' needs. For the general public, cloud computing is defined as digital data services and sharing services (Dropbox, Microsoft OneDrive, etc.) where users can store content and access it from anywhere in the world.

Cobotics

The term cobotics is a neologism derived from the words "robotics" and "collaboration." It is in fact a human-robot collaboration. Collaborative robotics is a technology that uses robotics, mechanics, electronics, and cognitive sciences to help people in their daily tasks. The solutions offered by cobotics are considered when robots alone cannot replace people with their knowledge, expertise, sensitivity, and observations of things and the environment.

Objectives contract

This support makes it possible to centralize all the indicators of your scope of responsibility. It sets clear objectives on different themes (production, quality, safety, environment, economics, maintenance, etc.) with a commitment from the Manager.

CNC

Computerized Numerical Control - Numerical control is a hardware/software set that makes it possible to program a machining routing and to pilot the machine to automatically manufacture a part.

CRP

Capacity Requirement Planning. It is a production process that specifies a plant's production capacity and defines whether it can reach its production objectives. The CRP method first evaluates the plant's schedule then weighs these planning objectives against the demonstrated capacity to determine whether this schedule is coherent.

CTP

Capable to Promise. The ability to commit, upon receipt of a new order, on product availability.

V-model

It is a project-management model composed of a descending phase and an ascending phase. There are generally three phases associated with this method. The first is the design phase, which analyzes and defines the needs. The second is the realization phase, which develops a product. The last is the validation phase, which carries out tests.

DMS

Daily Management System (SGQ in French) is a tool framing the management of a plant's operations. It aggregates the control measures of operations from the small scale to the large scale of the plant.

DRP

Distribution Resource Planning. It is an application of MRP (Material Requirement Planning) adapted to the distribution sector. This method makes forecasts at all the links of the chain, down to the end users. This method makes it possible to have more transparency on manufacturers' needs by integrating stock movements throughout the chain.

ERP

The ERP, also called PGI (Progiciel de Gestion Intégré) in French, is an information system that manages and controls, on a daily basis, all the company's information and operational services.

ETO

Engineer to Order. A production strategy where the customer intervenes at every production stage, from design to delivery. It is a method used for products requiring a high level of customization such that each part is almost unique.

Fab Lab

The Fab Lab is a place open to the public with all kinds of tools (computer-controlled workbenches, etc.) to design and manufacture objects. A key feature of Fab Labs is "openness." They are aimed at entrepreneurs, designers, artists, DIYers, students... who want to move more quickly from the design phase to the prototype phase, from the prototype phase to the development phase, from the development phase to the implementation phase.

FAO

FAO (CAM - Computer-Aided Manufacturing) is the set of software and graphical-programming techniques for numerically controlled machine tools (MOCN).

FCS

Finite Capacity Scheduling. It is a method in industrial production that makes it possible to determine the level of work that can be delivered during a given period and to assign tasks optimally while taking constraints into account. The goal of this method is to plan optimally at the production site and to avoid bottlenecks.

FMD

Reliability, Maintainability, Availability (Fiabilité Maintenabilité Disponibilité). Represents the ability of an asset to fulfill a required function under given conditions. It is the probability that the asset performs the function for which it was built under given conditions.

Routing (Gamme)

It is a document listing all the development phases of a part, from its manufacturing to its storage. It covers the different manufacturing steps of an item. For each step, the operating mode is indicated, that is to say all the instructions of the operation (designation, program to select, the knack to apply, the tools to use, the operation time).

GMAO

Computerized Maintenance Management (CMMS). It is a maintenance-management tool based on software that makes it possible to carry out equipment-maintenance tasks. Among the activities such a tool makes it possible to carry out are 1. equipment management, 2. maintenance management, 3. stock management, 4. purchasing management, 5. personnel and schedule management...

GPAO

Computer-Aided Production Management is software that makes it possible to optimize the production management of industrial companies. It automatically manages everything related to industrial production (stock management, purchasing, orders, the creation and management of manufacturing schedules, or even invoicing). It is based on MRP (Manufacturing Resources Planning), which is characterized by the use of bills of materials, stock status, and the MPS (Master Production Schedule), in order to calculate component requirements.

Bottleneck

It is a resource whose capacity is lower than or equal to the demand addressed to it. It is a resource that can limit the throughput of a flow and, consequently, the overall performance of an organizational system.

AI

Artificial intelligence aims to build entities endowed with intelligence. We can break intelligence down into elementary building blocks that can be reproduced by a machine: AI therefore tries to recreate or imitate certain aptitudes of human intelligence, such as memory, reasoning, decision-making, problem-solving, or perception.

IAO

IAO (CAE - Computer-Aided Engineering) is the use of computers to design, analyze, and manufacture products and processes.

Production cell

A set of trade cells or production lines.

Trade cell

Set of work centers (forges, machining center, material preparation, cutting, trimming).

Industrial Internet of Things

Thanks to sensors placed on machines or objects being manufactured, the machines then know the production history of the object and the final demand corresponding to it in order to respond to it automatically or via a central control station.

ISO

The ISO code is a standardized language for programming numerically controlled machine tools. It comes from the international standard ISO 6983-1:1982 "Numerical control of machines - Program format and definition of address words - Part 1: Data format for positioning, line motion and contouring control systems".

JIT

Just In Time. An organizational approach that assumes that production is said to be "pull flow," that is to say it is determined by demand and not by supply (as opposed to so-called "push flow" production). The point here is to produce the required quantities of goods within an often very short time interval then to deliver them to the end customer.

Kaizen

A Japanese word designating the terms "continuous improvement." Kaizen actions are simple, concrete, and inexpensive actions that are carried out quickly and that involve all the stakeholders of a plant (from directors to operators).

Lead Time

Production time up to shipping. It corresponds to the production time + waiting time (between each workstation).

Lean Management

A set integrating many principles, tools, and techniques, whose goal is to reduce all the sources of inefficiency in value chains while closing the gaps between actual performance and the requirements of customers and shareholders. It is a method characterized by the permanent pursuit of perfection through the elimination of all the sources of inefficiency.

LIFO

Last In, First Out. LIFO designates a production or warehousing technique where the last arrived is the first out/produced. In the context of production, the last order is produced first.

Production line

Succession of work centers making it possible to produce a type of item.

Machine Learning

Machine learning, or "automatic learning," is a discipline and more precisely a subcategory of artificial intelligence. It allows algorithms to find "models," namely repetitive patterns, in data sets. This information can be numbers, words, images, statistics...

Maintenance

Maintenance is a series of various curative, preventive, and predictive operations on a plant's machines with the aim of maximizing their availability.

MaaS

MaaS (Mobility as a Service) is a notion that emerged in the 2010s with the proliferation of smartphones and continuous internet access. MaaS is still only in its early days and its definition is still evolving. CEREMA (the French research agency for risks, environment, mobility, and planning) defines MaaS as a proposition, at the scale of a territory, of centralized and real-time intermodal and multimodal information on all the possible modes of travel, of pricing adapted to the requested journey, and of online ticket sales.

MCO

Maintenance in Operational Condition (Maintenance en Condition Opérationnelle). It designates all the strategies put in place to guarantee that the infrastructure and equipment remain permanently available.

MRO

Maintenance, Repair & Overhaul. It designates all the aeronautical maintenance activities delivered by the approved players of this industry. They bring together a set of strictly regulated, mandatory, and periodic activities, generally divided into 4 categories: Level A maintenance (every month), Level B maintenance (every 3 months), Level C maintenance (every 12-18 months), and Level D maintenance (every 4-5 years). Aeronautical Maintenance and Repair activities bring together line maintenance, main-structure maintenance, engine maintenance, and component and equipment maintenance.

MES

Manufacturing Execution System. An MES is a production-steering software that collects production data in real time.

MRP

Material Requirements Planning. It is a push-flow production-management method that relies on product bills of materials and sales forecasts. Production is planned according to launched or firm orders and forecast orders.

MRP II

Manufacturing Resource Planning II. It is a method for planning all of a plant's resources (material and human). Its main quality is that it makes it possible to carry out infinite-capacity planning and to prepare the finite-capacity scheduling of resources.

MTBF

Mean Time Between Failures. It is a reliability indicator that measures the time between a machine's breakdowns. It is an average of the machine's proper-operation times.

MTO

Make to Order. Items are produced to customer order. Flows are said to be pulled. This production method is used for expensive parts such as, for example, aircraft wings or luxury bags.

MTS

Make to Stock. Items are produced to replenish stock. Production flows are pushed in this case. This production method is often used in mass retail or for fast-moving consumer goods.

MTTR

Mean Time to Repair. It is an indicator that measures the repair time of a product between the moment the breakdown is announced and the return to service or recovery by the customer.

Muda

It is an activity without added value in a project but that is maintained. It is widespread and widely practiced without being questioned.

Mura

It is a variation in activity that leads to a situation of imbalance. In Lean theory, variability is a source of waste and is consequently detrimental to the company.

Muri

It is an excess relative to the personnel, material, or equipment resources.

Digitization of the value chain

The digitalization of the value chain encompasses all the "4.0" means of production. It ensures the interconnection between tools and workstations through the Internet of Things and virtual control networks. Its objective is to make production as adaptable as possible and to allocate resources to strict needs in order to save energy and raw materials, while remaining oriented toward customer satisfaction.

Scheduling

It is a set of actions that transform the manufacturing decisions from the MPS (Master Production Schedule) into detailed instructions intended to pilot and control, in the short term, the activity of the workshop's workstations. It makes it possible to organize over time the tasks to be carried out in order to meet customer orders.

Work order

It is a document, or a set of documents, that gives the order to manufacture parts or products by specifying the quantities to manufacture and the forecast manufacturing dates. In the work order, we find the information of the bill of materials with its necessary components and of the routing with its manufacturing phases.

Production operation

It is a step of a work order that makes it possible to realize the product in its entirety. For example, if "making a chocolate cake" is a work order then "adding the eggs" is an operation.

OTD

On Time Delivery. It is the percentage of customers delivered on time.

OTIF

On Time In Full. It is the percentage of orders delivered on time and in full. For example, if 50% of the material is delivered on time for 1 customer order then the OTIF is 0%.

PDP

Master Production Schedule (MPS). The MPS sits between the S&OP and scheduling. It makes it possible to plan the items to produce, at what moment, and in what quantity. It is a load-capacity balance calculation between the load of orders and the plant's capacities while minimizing storage costs.

PIC

Sales & Operations Planning (S&OP). It is in charge of globally optimizing the load-capacity match to best satisfy forecast demand and to cover the objectives.

QQOQCCP

What, who, where, when, how, how much, why? It is a questioning method to describe and analyze a situation (the English equivalent is 5W2H).

SaaS

Software as a Service (SaaS) is a software-distribution model in which a third-party provider hosts applications and makes them available to its customers over the Internet. It is one of the 4 main categories of cloud computing. It allows the software to be used and shared by several people on the move. It does, however, require the hosting of data with a publisher and internet access.

Overall Equipment Effectiveness | OEE

(Taux de Rendement Synthétique | TRS). It is a performance indicator intended to track the utilization rate of a machine. It calculates the percentage of a machine's manufacturing time that is actually productive.

Cycle Time

It is the time between the start of production of an item up to the moment it is available for shipping.

Theory of Constraints | TOC

The theory of constraints was invented by Eliyahu Goldratt. In TOC, customer orders are associated with a routing/bill-of-materials network. Thus routings and bills of materials are linked because each component is associated with a production operation. So each operation of the routing is linked to sections of the plant that have a capacity and a minimum launch quantity. It is then necessary to identify bottleneck workstations within the production chain in order to optimize the production throughput. The objective of TOC is to cope with the growing constraints of the market. The principles of this theory were used in JIT but also beyond the supply chain.

TRS

The Overall Equipment Effectiveness (OEE) is an indicator that makes it possible to track the utilization rate of machines. It also makes it possible to detect production losses.

Turnaround Time | TAT

It is the total time between the start of manufacturing of the product and the final delivery to the customer. It therefore differs from Lead Time (between order and receipt).

UAP

Autonomous Production Unit (Unité Autonome de Production). Organization of the production process of a product (or product family) into a single group of machines and collaborators (generally arranged in a U to maximize efficiency). It is a set of trade cells. It is led by a production manager who coordinates a team of support-function supervisors (quality, logistics, HSE, maintenance managers).

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