Supply Chain Management Glossary

A complete list of SCM terms and definitions. Click on a topic to expand or collapse its terms.

SCM Overview

Supply Chain Management (SCM): The entire process of producing and selling a product, from the raw materials to the final customer.
Procurement: The process of acquiring goods, services, or work from an external source.
Logistics: The detailed planning and execution of moving goods, information, and resources from one point to another.
Inventory Management: The practice of controlling and overseeing the ordering, storage, and use of a company's raw materials, components, and finished products.
Distribution: The process of moving goods from the manufacturer or supplier to the end customer.
Customers: The end-users who purchase and consume the product, driving demand and providing feedback for the entire supply chain.
Suppliers: Organizations that provide the raw materials, components, and services needed to produce a product.
Manufacturers: Businesses that convert raw materials into finished goods or products.
Retailers: The businesses that sell products directly to the end customer.
Logistics Providers: Companies that specialize in transportation, warehousing, and other services to help move goods through the supply chain.
Supply Chain Phases: The key stages of a supply chain: Plan, Source, Make, Deliver, and Return.
Important Supply Chain Metrics: Key Performance Indicators (KPIs) like lead time, perfect order rate, and inventory turnover, used to measure performance.
Cycles of Supply Chain Processes: The sequence of activities, such as a customer's order cycle, that connects different stages of the supply chain.
Push/Pull Strategy: Two methods for product flow: 'Push' is based on forecasts, while 'Pull' is based on actual customer demand.
Origin of Supply Chain: The historical development of supply chain management from its roots in logistics and operations management.
E-Commerce Supply Chain: A specialized supply chain focused on managing the flow of goods for online sales and fulfillment, often including last-mile delivery.
JIT (Just-in-Time): An inventory strategy designed to receive goods from suppliers only as they are needed, minimizing inventory costs.
Lean SCM: A methodology that focuses on eliminating waste and increasing efficiency in all parts of the supply chain.
Green and Sustainable SCM: The integration of environmentally and socially responsible practices into the management of a supply chain.
Bull-Whip Effect: The phenomenon where small changes in customer demand at the retail level cause increasingly larger fluctuations in orders further up the supply chain.
Supply Chain Impellers: Factors that drive or accelerate change and motion within a supply chain, such as technology, consumer demand shifts, or regulations.
SCM Globalization: The expansion of supply chain activities across international borders, involving sourcing, manufacturing, and distribution in different countries.
Multi Modal Transportation: The use of two or more different modes of transportation (e.g., truck, rail, ship) to move goods from source to destination.
Role of IT in Supply Chain Management: The use of technology and software to manage, track, and optimize all supply chain operations, from planning to delivery.
Supply Chain Visibility: The ability to see and track goods, information, and funds as they move through the supply chain, often in real-time.
CRM: Customer Relationship Management software and processes used to manage a company's interactions with current and potential customers.
ERP: Enterprise Resource Planning; integrated software systems that a company uses to manage and integrate all of its key business functions.
WMS: A Warehouse Management System; a software application that helps manage and control daily operations in a warehouse, from receiving to shipping.
Order Management: The process of receiving, tracking, and fulfilling customer orders, from placement to delivery.
Risk Management: The process of identifying, assessing, and mitigating potential disruptions or threats to the supply chain.

Distribution and Fulfillment

Cross-Docking: A logistics practice where products are unloaded from an incoming vehicle and loaded directly into an outbound vehicle, with little or no storage in between.
Order Picking: The process of retrieving products from a warehouse to fulfill a customer's order. This can be done manually or with automated systems.
Last-Mile Delivery: The final leg of the delivery process, from a distribution center or hub to the final customer's doorstep. It is often the most expensive and time-consuming part.
Distribution: The process of storing, handling, and delivering finished goods from manufacturers or distribution centers to retailers, wholesalers, or end customers efficiently and cost-effectively.
Distribution Channels: The paths or routes through which goods and services flow from producers to end customers. They can include direct channels (manufacturer to customer) and indirect channels (wholesalers, distributors, retailers, etc.). Distribution channels determine how products reach the market efficiently.
Distribution Center: A specialized warehouse where products are stored, sorted, and shipped to retailers, wholesalers, or customers to ensure timely delivery.
Regional Distribution Center: A facility that serves a specific geographic area, storing and distributing products closer to customers to reduce delivery time and costs.
Distribution Strategy: A plan for how a product gets from the manufacturer to the final customer, covering things like choosing online stores, physical shops, or direct selling, and managing the transport and storage of goods.
Centralized vs. Decentralized Distribution: Centralized distribution uses one main hub for all operations, offering better control and lower costs but slower delivery. Decentralized uses multiple smaller locations closer to customers, providing faster delivery and more flexibility at a higher cost.
Multi-Channel Distribution: A business strategy that uses multiple channels, such as physical stores, websites, and social media, to sell products or services and reach a wider customer base.
Distribution Network Design: The strategic planning and management of a company's distribution channels and facilities to ensure efficient movement of goods from suppliers to customers. This includes decisions on the number, location, and type of warehouses, as well as transportation and inventory control.
Centralized Distribution: A strategy where inventory is stored and managed from a single location.
Decentralized Distribution: A strategy where inventory is spread across multiple locations closer to customers.
Direct-to-Consumer (D2C): A model where manufacturers sell directly to customers without intermediaries.
Multi-Channel Distribution: Using multiple sales channels like retail, online, and distributors simultaneously.
Omni-Channel Fulfillment: An integrated approach where all channels are connected to provide a seamless customer experience.
Distribution Network Design: Planning the layout and structure of warehouses, hubs, and transport routes.
Hub-and-Spoke Model: A system where a central hub supplies smaller regional facilities (spokes).
Regional Distribution Center: A facility positioned regionally to store and distribute products quickly to customers.
Cross-Docking: Moving products directly from inbound to outbound transport with little or no storage.
Wholesalers: Intermediaries who buy in bulk from manufacturers and sell to retailers.
Retailers: Businesses that sell products directly to end consumers.
Distributors: Organizations that distribute products on behalf of manufacturers to retailers or customers.
E-commerce Platforms: Online marketplaces where products are sold and fulfilled digitally.
Third-Party Logistics (3PL): External companies that provide logistics and fulfillment services.
In-House Fulfillment: Companies manage storage, picking, packing, and shipping themselves.
Dropshipping: Retailers sell products without holding inventory; suppliers ship directly to customers.
4PL (Lead Logistics Provider): A higher-level logistics partner managing multiple 3PLs and supply chain functions.
Micro-Fulfillment Centers: Small, tech-enabled warehouses located close to urban areas for faster delivery.
Order Processing: The steps from receiving an order to preparing it for shipment.
Order Tracking: Providing visibility of order status to customers and businesses.
Returns Management: Handling customer returns and reverse logistics efficiently.
Safety Stock: Extra inventory kept as a buffer against demand or supply uncertainty.
Replenishment Strategies: Methods to restock inventory when it runs low.
Just-in-Time (JIT) Distribution: Delivering inventory exactly when needed, minimizing storage costs.
Inventory Positioning: Deciding where to hold stock in the supply chain for efficiency.
Picking & Packing: Warehouse processes of selecting and preparing products for shipment.
Storage Systems: Methods like FIFO, LIFO, and FEFO to organize warehouse inventory.
Warehouse Automation: Use of robotics and technology to speed up warehouse operations.
Cold Chain Distribution: Temperature-controlled supply chain for perishable goods.
Last-Mile Delivery: The final step of delivery from a hub to the customer s doorstep.
Freight Forwarding: Coordinating the movement of goods across international borders.
Carrier Management: Selecting and managing transport service providers.
Transportation Modes: Different ways of moving goods road, rail, air, and sea.
Warehouse Management System (WMS): Software to manage warehouse operations and inventory.
Transportation Management System (TMS): Software to plan, track, and optimize transport operations.
Real-Time Tracking: Monitoring goods location and status at any moment.
AI in Fulfillment: Using AI to optimize picking, demand forecasting, and delivery.
Supply Chain KPIs: Metrics like order cycle time, fill rate, and on-time delivery to measure performance.
Cost Optimization: Strategies to reduce logistics and fulfillment costs.
Service Level Agreements (SLAs): Contracts defining service standards between companies and logistics providers.
Sustainability in Distribution: Practices that reduce environmental impact, like green packaging and efficient transport.
Micro-Fulfillment Centers: Small automated warehouses close to cities for faster delivery.
Dark Stores: Retail outlets converted to online-only fulfillment hubs.
Order Processing: Steps from receiving an order to preparing it for shipment.
Order Tracking: Monitoring and sharing order status with customers.
Returns Management: Handling product returns and reverse logistics efficiently.
Reverse Logistics: Moving goods back from customers to sellers for returns or recycling.
Safety Stock: Extra inventory kept as a buffer against uncertainty.
Cycle Stock: Inventory required to meet normal demand during a cycle.
Replenishment Strategies: Methods to restock inventory when it runs low.
Just-in-Time (JIT) Distribution: Delivering goods exactly when needed, reducing storage.
Vendor-Managed Inventory (VMI): Suppliers manage inventory levels at the retailer's location.
Inventory Positioning: Deciding where to place stock in the network for efficiency.
Picking & Packing: Warehouse processes of selecting and preparing goods for shipping.
Kitting: Combining individual items into ready-to-ship sets.
Storage Systems: Inventory organization methods like FIFO, LIFO, FEFO.
Warehouse Automation: Robotics and tech to streamline warehouse operations.
Cold Chain Distribution: Temperature-controlled supply chain for perishable goods.
Consolidation: Combining multiple smaller shipments into one larger load.
Pooling: Sharing transport or warehousing among companies to reduce costs.
Last-Mile Delivery: The final step of delivery to the customer s door.
Middle-Mile Logistics: Transport from warehouses to local hubs or stores.
Freight Forwarding: Organizing international shipping across modes and borders.
Carrier Management: Selecting and managing transport providers.
Transportation Modes: Ways to move goods: road, rail, air, sea.
Intermodal Transport: Using more than one mode of transport in a single journey.
Warehouse Management System (WMS): Software managing warehouse operations and inventory.
Transportation Management System (TMS): Software to plan and optimize transport operations.
Yard Management System (YMS): Software controlling trucks and trailers at distribution yards.
Real-Time Tracking: Monitoring goods location and status continuously.
Electronic Data Interchange (EDI): Digital exchange of business documents between partners.
Blockchain in Logistics: A secure ledger for transparent supply chain transactions.
AI in Fulfillment: Using AI for picking, demand forecasting, and routing.
Robotics in Warehousing: Robots assist in picking, sorting, and moving goods.
Drones in Delivery: Unmanned aerial vehicles used for last-mile delivery.
Autonomous Vehicles: Self-driving trucks and vans for transport.
Supply Chain KPIs: Metrics like order cycle time and delivery reliability.
On-Time Delivery: A KPI measuring if orders are delivered as scheduled.
Fill Rate: Percentage of customer demand met without backorders.
Perfect Order Rate: Orders delivered complete, on time, and without errors.
Cost Optimization: Strategies to lower logistics and fulfillment costs.
Service Level Agreements (SLAs): Contracts defining service expectations with providers.
Sustainability in Distribution: Reducing logistics environmental impact via green practices.
Green Packaging: Eco-friendly materials for shipping and packaging goods.
Carbon-Neutral Shipping: Offsetting emissions from transportation activities.
Distribution ERP: An integrated system that manages inventory, order processing, warehousing, and logistics to streamline distribution operations.
Distributed Order Management (DOM): A system that intelligently routes and fulfills customer orders across multiple channels, warehouses, and suppliers to ensure the most efficient and cost-effective delivery.

Warehousing and Storage

Safety Stock: A buffer of inventory kept to mitigate the risk of stockouts due to unexpected changes in supply or demand.
Stock Keeping Unit (SKU): A unique alphanumeric code assigned to a specific product to identify and track it within a warehouse or inventory system.
Warehouse Management System (WMS): Software designed to support and optimize warehouse and distribution center management, from receiving and putaway to order fulfillment and shipping.
Types of Warehouses: Warehouses can be categorized based on ownership, function, and storage needs, including public, private, bonded, distribution centers, and automated warehouses.
Warehouse: A warehouse is a facility for storing goods before distribution. Unlike normal shipment, it serves as an intermediate hub for ops.
Automated Warehouse: A highly mechanized facility using robotics and automated systems for storage and retrieval of goods.
Distribution Center: A warehouse focused on rapid order fulfillment and distribution to retailers or customers.
Bonded Warehouse: A secure storage for imported goods awaiting customs clearance, often duty-free until released.
Private Warehouse: A company-owned warehouse used exclusively for its own inventory and operations.
Public Warehouse: A facility open to multiple users on a rental basis, offering flexible storage and services.
Bonded Warehouse: A secure facility for storing imported goods that have not yet cleared customs, allowing duty-free storage until release.
Non-Bonded Warehouse: A warehouse where goods can be stored without customs restrictions, typically for domestic inventory and distribution.
Warehouse Design Factors: Warehouse design is governed by space utilization, material flow, storage systems, accessibility, safety, scalability, technology integration, and docking/handling efficiency.
Types of Warehouse Storage Systems: Common storage systems include pallet racks, shelving, bulk storage, automated storage and retrieval systems (AS/RS), and mezzanine floors.
Receiving: Accepting and inspecting incoming goods for quantity and quality.
Put-away: Moving received goods to their designated storage locations.
Picking: Selecting items from storage to fulfill customer orders.
Packing: Preparing selected items for shipment, including packaging and labeling.
Shipping: Dispatching goods to customers or other warehouses.
Inventory Management: Monitoring and controlling stock levels, including cycle counts and audits.
Returns Handling: Processing returned goods for restocking, disposal, or repair.
Kitting: Combining multiple items into a ready-to-ship set or kit.
Racks: Vertical or horizontal structures used to store pallets or large quantities of goods efficiently.
Bins: Small containers or compartments used to store individual items or smaller quantities for easy access.
Warehouse Staging Area: A dedicated space where goods are temporarily held between processes, such as after receiving and before put-away, or after picking and before shipping.
Inventory Management: The process of tracking and controlling stock levels, locations, and movements within a warehouse to optimize availability and minimize costs.
Pallet Racking: A storage system using racks to hold palletized goods, designed to maximize vertical space and improve accessibility in warehouses.
FIFO (First-In, First-Out): An inventory management method where goods received first are used or shipped first, often used for perishable items to prevent spoilage.
LIFO (Last-In, First-Out): An inventory management method where the most recently received goods are used or shipped first, typically for non-perishable items.
Order Fulfillment: The process of receiving, processing, picking, packing, and shipping customer orders from a warehouse to their destination.
Cold Storage: A temperature-controlled warehouse used to store perishable goods, such as food or pharmaceuticals, to maintain quality and safety.
Automated Storage and Retrieval System (AS/RS): A robotic or automated system for storing and retrieving goods in a warehouse, improving efficiency and reducing manual labor.
Inventory Turnover: A metric measuring how often inventory is sold and replaced over a period, indicating efficiency in stock management.
Micro-Fulfillment Center: A small-scale, often urban warehouse designed for rapid order processing and delivery, typically for e-commerce businesses.
Inventory ABC Analysis: A method for categorizing inventory items based on their value or importance. 'A' items are high-value and require tight control; 'B' items are of medium value; and 'C' items are low-value and managed with less rigorous control.
Inventory Metrics: A set of key performance indicators (KPIs) used to measure the efficiency of a warehouse's inventory management, such as inventory turnover, stock-to-sales ratio, and fill rate.
Cross-Docking: A logistics practice where goods from an incoming truck are unloaded, sorted, and immediately reloaded onto an outgoing truck without being stored in the warehouse.
Cycle Counting: A regular, planned process of counting a small subset of inventory on a continuous basis, as opposed to a single, large annual physical inventory count.
Docking and Yard Management: The process of managing the flow of trucks and trailers in and out of the warehouse's loading docks, including scheduling appointments and tracking their location in the yard.

Supply Chain Planning

Demand Forecasting: The process of predicting future customer demand for a product or service. Accurate forecasting is crucial for effective supply chain planning.
Sales and Operations Planning (S&OP): A process that aligns an organization's sales, marketing, production, and finance teams to ensure that supply meets demand.
Rolling Average Demand: A simple forecasting method that calculates the average demand over a specific period and uses it to predict future demand.
Forecasting in Supply Chain: The practice of estimating future demand, supply, and trends to guide supply chain decisions.
Definition of Forecast: A prediction or estimate of future demand, supply, or trends in the supply chain.
Primary Characteristic of a Forecast: Forecasts are always uncertain and should be treated as estimates, not guarantees.
Forecasting Methods: Techniques such as qualitative, quantitative, time series, and causal methods used to predict demand.
Aggregate Forecasts: Forecasting total demand across products or regions rather than individual items.
Long Term Forecast: Projections covering years, used for capacity planning and strategic decisions.
Short Term Forecast: Forecasts for days, weeks, or months, used for inventory and operational planning.
Forecast Components: Key elements influencing forecasts, including demand, lead time, seasonality, and trends.
Demand: The quantity of a product or service required by customers at a given time.
Lead Time: The time taken between ordering and receiving goods.
Time Series Forecasting: A method that uses historical data to predict future demand patterns over time.
Moving Average Forecast: A time series method that averages a fixed number of past periods to predict future demand.
Exponential Smoothing: A forecasting method that applies decreasing weights to past observations, giving more importance to recent data.
Forecast Error: The difference between actual demand and the forecasted demand.
Holt's Model: An extension of exponential smoothing that accounts for trends in forecasting.
Winter's Model: An advanced exponential smoothing model that includes both trend and seasonality adjustments.
Seasonality in Forecast: Repeating demand patterns that occur at regular intervals, such as monthly or yearly.
Role of IT in Forecasting: Information systems and analytics tools enhance accuracy and speed in forecasting processes.
Risk Management in Forecasting: Identifying and mitigating uncertainties in demand and supply predictions to reduce business risk.

Procurement

Strategic Sourcing: A systematic process of analyzing an organization's spending and sourcing needs to make a strategic plan for sourcing and purchasing goods and services.
Purchase Order (PO): A commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
Supplier Relationship Management (SRM): A comprehensive approach to managing an enterprise's interactions with the organizations that supply the goods and services it uses.
Sourcing in SCM: The process of identifying, evaluating, and engaging suppliers to meet supply chain needs.
In-House Sourcing: Obtaining goods or services internally within the organization instead of external suppliers.
Outsourcing: Delegating procurement or production activities to third-party suppliers to reduce cost or improve efficiency.
Third-Party Logistics (3PL): An external provider that manages logistics and distribution services on behalf of a company.
Fourth-Party Logistics (4PL): A supply chain integrator that manages and coordinates multiple logistics providers and resources.
Supplier Metrics: Key performance indicators used to evaluate supplier performance in quality, cost, and delivery.
Advanced Shipment Notification (ASN): A notice sent by a supplier to inform the buyer of pending deliveries before the shipment arrives.
Sourcing Rules: Guidelines for selecting suppliers, determining allocation, and managing procurement decisions.
Supplier Relationship: Managing interactions and trust between a company and its suppliers to ensure long-term collaboration.
Economic Order Quantity (EOQ): The optimal order quantity that minimizes total inventory costs including holding and ordering expenses.
Supplier Lead Time: The time taken by a supplier to deliver goods or services after receiving an order.
Types of Suppliers: Different categories of suppliers such as manufacturers, distributors, wholesalers, and service providers.
Supplier Classification: Grouping suppliers based on factors such as strategic importance, spend value, or risk level.
Types of Demand: Different demand categories such as dependent, independent, seasonal, or derived demand influencing procurement decisions.
Sourcing Risks: Potential challenges in procurement such as supply disruptions, price fluctuations, and quality issues.
Supplier Design Collaboration: Working with suppliers in product design and development to improve quality and reduce time-to-market.
Payment Terms: Agreed conditions defining how and when suppliers are paid for delivered goods or services.
Vendor Managed Inventory (VMI): An arrangement where the supplier manages the buyer’s inventory levels based on demand and replenishment needs.
Dropshipment: A supply method where suppliers ship products directly to customers without the buyer holding stock.
Supplier Audits: Assessments conducted to verify supplier compliance with quality, process, and regulatory requirements.
Contract Management: The administration of contracts with suppliers to ensure compliance and value delivery.
Spend Analysis: The process of collecting, cleansing, categorizing, and analyzing spending data to reduce costs, improve efficiency, and monitor compliance.
Request for Proposal (RFP): A formal document issued by a company to solicit a proposal from potential suppliers for a specific project or service.
Request for Quotation (RFQ): A formal request to suppliers to submit a bid to supply a specific product or service, often used when the product is standardized and the main variable is price.
Reverse Auction: A type of auction in which the role of buyer and seller are reversed. Sellers compete to offer the lowest price for a product or service, which is a key tool in cost reduction.
Maverick Spend: Purchases made by employees outside of the formal procurement processes, which can lead to higher costs and a lack of transparency.
E-Procurement: The use of electronic systems and web-based applications to manage all aspects of the procurement process, from requisition to payment.
Blanket Purchase Order: A long-term agreement with a supplier to purchase goods or services at a predetermined price over a period of time, without specifying a delivery date or quantity upfront.
Total Cost of Ownership (TCO): A financial estimate that includes the initial purchase price of an asset, as well as the costs of operation, maintenance, and disposal over its entire lifecycle.
Category Management: A strategic approach to procurement that involves grouping similar products or services into 'categories' and managing them as a single business unit to leverage buying power and optimize the supply base.
Supplier Scorecard: A tool used to formally evaluate and rank suppliers based on a set of criteria, such as delivery performance, quality, and cost.

Logistics and Transportation

Incoterms: Internationally recognized rules by the ICC defining responsibilities of sellers and buyers for goods delivery.
Freight Forwarder: A service provider that arranges storage, consolidation, and shipping of merchandise on behalf of shippers.
Intermodal Transport: Using multiple transport modes for goods in one container without handling the goods when changing modes.
Role of Transportation in SCM: Ensures timely movement of goods across the supply chain, balancing cost, speed, and reliability.
Modes of Transport: Various transport options such as road, rail, air, sea, and pipeline, each with unique cost and speed tradeoffs.
Performance Characteristics of Transport Modes: Attributes like speed, cost, capacity, reliability, and accessibility used to evaluate transport options.
Transportation Tradeoffs: Balancing cost, speed, flexibility, and reliability when choosing transport methods.
Package Carriers: Companies that specialize in small, high-value shipments with fast delivery, such as courier services.
Transportation Infrastructure: Physical and organizational facilities like roads, ports, railways, and airports that enable goods movement.
Milk Run: A delivery method where one vehicle makes multiple stops to pick up or deliver goods, reducing costs.
Intermediate Transit Points: Temporary hubs like cross-docking centers used to consolidate, sort, or redirect shipments.
Tailored Transportation Network: Customizing transport routes and modes to fit product types, demand levels, and customer needs.
SCM Risks in Transportation: Disruptions like delays, accidents, fuel price fluctuations, and regulatory issues affecting logistics flow.
Reverse Logistics: The process of moving goods from customers back to sellers or manufacturers for returns, recycling, or disposal.
Last Mile Delivery: The final step of the delivery process where goods reach the end customer, often the most costly and complex stage.
Cross-Docking: A logistics practice where inbound shipments are directly transferred to outbound vehicles without long-term storage.
Cold Chain Logistics: Temperature-controlled supply chain required for perishable goods like food, pharma, and chemicals.
Transportation Management System (TMS): Software that helps companies plan, execute, and optimize transportation operations.

Manufacturing

Lean Manufacturing: A method to minimize waste and maximize productivity in the manufacturing process.
Just-in-Time (JIT): A strategy to produce or receive goods only when needed, reducing inventory and waste.
Total Quality Management (TQM): An approach focused on continuous improvement and customer satisfaction across all operations.
Kaizen: A Japanese term meaning 'continuous improvement' involving all employees to enhance efficiency and quality.
Kanban: A visual scheduling system from Japan that signals demand and helps manage workflow in production.
Poka-Yoke: A Japanese concept of 'mistake-proofing' designed to prevent errors in manufacturing processes.
5S Methodology: A Japanese workplace organization system: Sort, Set in order, Shine, Standardize, and Sustain.
Muda: One of the 3Ms in Lean; refers to waste or non-value-added activities such as overproduction, waiting, and defects.
Mura: One of the 3Ms in Lean; refers to unevenness or inconsistency in operations that creates inefficiencies.
Muri: One of the 3Ms in Lean; refers to overburdening people, machines, or processes beyond their natural capacity.
Six Sigma: A data-driven methodology to reduce defects and improve process quality and consistency.
Theory of Constraints (TOC): A management philosophy focusing on identifying and improving the bottleneck that limits overall system performance.
Agile Manufacturing: A flexible approach that emphasizes quick response to customer needs and market changes while controlling costs.
Mass Customization: The ability to produce customized products at scale with efficiency similar to mass production.
Computer-Integrated Manufacturing (CIM): The use of computer systems to control the entire production process for efficiency and automation.
Additive Manufacturing: Also known as 3D printing, it builds products layer by layer, allowing rapid prototyping and customized production.
Flexible Manufacturing System (FMS): A system that uses automated machines and tools to quickly adapt to changes in product type and volume.
Continuous Flow Manufacturing: A production approach where items move seamlessly through the process without interruptions or delays.
Cellular Manufacturing: Organizing workstations into cells to improve workflow, reduce movement, and enhance efficiency.
Design for Manufacturability (DFM): The practice of designing products to simplify manufacturing and reduce costs.
Total Productive Maintenance (TPM): A proactive maintenance approach aimed at increasing equipment reliability and reducing downtime.