Glossary of Industry 4.0

3M

Waste, Variability, Overburden

5G

5G, officially called IMT-2020, is the fifth generation of mobile phone standards. Characterized by its speed, low latency, and ability to connect numerous objects, it was developed to prevent network saturation projected for 2022 and to facilitate rapid tracking of objects.

Sales Administration

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

FMEA

Failure Mode Effects and Criticality Analysis. It is a preventive analysis tool that identifies potential risks and causes before they occur.

APS software

Advanced Planning and Scheduling Software. These are planning software for load/capacity balance in an effective manner.

ARPA

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

ARR

Annual Recurring Revenue. Monthly billing from 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 and then assembled. A high level of inventory is therefore required. Customization of the finished product occurs at the end of the assembly line. Consequently, the level of customization remains limited.

ATP

Available To Promise. This is a production strategy that responds to customer demands based on available resources.

Smooth Requirement

Distributing the load over x time, based on capacity.

Big Data

Big data can be defined by what is called the three "V's": more varied data, increasing volumes, and higher velocity. In other words, Big Data consists of complex data sets that primarily come from new sources. These data sets are so large that traditional data processing software cannot handle them. However, these enormous amounts of data can be used to solve problems that you could not solve before.

CAC

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

Capacity

It corresponds to the potential production volume of a load station. The capacity formula varies according to load stations, clients, etc. It can be calculated in hours or in pieces for example. Capacity formula: Number of hours available to run the machine X Production rate.

Finite Capacity

Excludes configurations that present load levels exceeding 100%.

Infinite Capacity

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

Load Center

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

Average Daily Consumption

In the industry, it is the average consumption of a part, product, or 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 execute applications or visualize data hosted on servers. The cloud is characterized by its flexibility, allowing service providers to automatically adjust storage capacity and computing power according to user 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.

Collaborative Robotics

The term collaborative robotics 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 assist people in their daily tasks. Solutions proposed by collaborative robotics are considered when robots alone cannot replace humans with their knowledge, expertise, sensitivity, and observations of things and the environment.

Objectives Contract

This support allows centralizing all the indicators of your area of responsibility. It sets clear objectives on various themes (production, quality, safety, environment, economics, maintenance, etc.) with a commitment from the Manager.

CNC

Computerized Numerical Control - The numerical control is a hardware/software set that allows programming a machining range and controlling the machine to automatically manufacture a part.

CRP

Capacity Requirement Planning. It is a production process that specifies the production capacity of a factory and defines whether it can meet its production objectives. The CRP method first evaluates the factory schedule and then weighs these planning objectives against the demonstrated capacity to determine whether this planning is consistent.

CTP

Capable to Promise. Commitment capacity upon receipt of a new order regarding product availability.

V Cycle

It is a project management model consisting of a descending phase and an ascending phase. There are generally three phases associated with this method. The first is the design phase that analyzes and defines needs. The second is the realization phase that develops a product. The last is the validation phase that conducts testing.

DMS

Daily Management System or daily management system (SGQ) in French is a tool governing the management of an operation of a factory. It aggregates control measures of operations from small scale to large scale in the factory.

DRP

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

ERP

ERP, also called PGI (Integrated Management Software), is an information system that manages and controls daily all operational information and services of the company.

ETO

Engine to Order. Production strategy where the customer is involved at all stages of production, from design to delivery. This method is used for products requiring a high level of customization so that each piece is virtually unique.

Fab Lab

The Fab Lab is an open space to the public with all kinds of tools (computer-controlled workbenches, etc.) to design and manufacture objects. A key characteristic of Fab Labs is "openness." They cater to entrepreneurs, designers, artists, DIYers, students... who wish to move more quickly from the design phase to the prototype phase, from the prototype phase to the development phase, and from the development phase to the implementation phase.

CAM

CAM encompasses all software and graphic programming techniques for computer numerical control (CNC) machines.

FCS

Finite Capacity Scheduling. It is a method in industrial production that determines the level of work that can be provided during a given period and optimally assigns tasks considering constraints. The goal of this method is to optimally plan on the production site and avoid bottlenecks.

FMD

Reliability Maintainability Availability. Represents a good’s ability to fulfill a requested function under given conditions. It is the probability that the good accomplishes the function for which it was built under given conditions.

Range

It is a document listing all phases of developing a part from its manufacturing to its storage. It outlines the different manufacturing steps of an article. For each step, the operational mode is indicated, that is to say all the operation instructions (designation, program to select, techniques to perform, tools to use, time of the operation).

CMMS

Computerized Maintenance Management. It is a maintenance management tool that uses software to perform the maintenance tasks of equipment. Among the activities that such a tool allows to perform are 1. Equipment management, 2. Maintenance management, 3. Stock management, 4. Purchasing management, 5. Personnel and scheduling management...

MPS

Manufacturing Planning System is software that optimizes the production management of industrial companies. It automatically manages everything related to industrial production (inventory management, purchasing, orders, creation and management of production schedules, or even invoicing). It is based on MRP (Manufacturing Resources Planning), which is characterized by the use of bills of materials, inventory statuses, and the MPS (Master Production Schedule) to calculate component needs.

Bottleneck

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

AI

Artificial intelligence aims to build entities endowed with intelligence. Intelligence can be decomposed into elementary bricks that can be reproduced by a machine: AI thus attempts to recreate or imitate certain human intelligence capabilities, such as memory, reasoning, decision-making, problem-solving, and perception.

CAD

CAD is the use of computers to design, analyze, and manufacture products and processes.

Production Cell

A set of trade islands or production lines.

Work Cell

A set of load stations (forges, machining centers, material preparation, cutting, trimming).

Industrial Internet of Things

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

ISO

The ISO code is a standardized language for programming computer numerical control machines. It is derived from the international standard ISO 6983-1:1982 "Numerical control of machines - Program format and definition of address words - Part 1: Data format for linear movement and contouring control equipment".

JIT

Just In Time. An organizational approach that assumes production is said to be "pull flow", meaning that it is determined by demand and not by supply (as opposed to production said "push flow"). Here, the goal is to produce the required quantities of goods in often very short time frames and then deliver them to the end customer.

Kaizen

A Japanese word that refers to the terms "continuous improvement". Kaizen actions are simple, concrete, and inexpensive actions that are carried out quickly and involve all the participants in a factory (from managers to operators).

Lead Time

Production time until shipping. It corresponds to production time + waiting time (between each station).

Lean Management

A comprehensive set integrating numerous principles, tools, and techniques whose purpose is to reduce all sources of inefficiency in value chains while bridging the gaps between actual performance and the requirements of customers and shareholders. It is a method characterized by the constant pursuit of perfection by eliminating all sources of inefficiency.

LIFO

Last In, First Out. LIFO designates a production or storage technique where the last arrival is the first to exit/perform. In the context of production, the last order is produced first.

Production Line

A succession of load stations allowing the production of a type of article.

Machine Learning

Machine learning or "automated learning" is a discipline and more precisely a sub-category of artificial intelligence. It allows algorithms to find "patterns", that is to say, 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 factory's machines to maximize their availability.

MaaS

MaaS (Mobility as a Service) is a concept that emerged in the 2010s with the proliferation of smartphones and continuous internet access. MaaS is still in its early stages and its definition is still evolving. The CEREMA (Center for Studies and Expertise on Risks, Environment, Mobility, and Development), a French research agency, defines MaaS as a proposal at the territorial scale of centralized and real-time intermodal and multimodal information on all possible means of transport, adapted pricing for the requested movement, and online ticket sales.

MCO

Operational Condition Maintenance. It refers to the entire set of strategies implemented to ensure that infrastructure and equipment remain available at all times.

MRO

Maintenance Repair & Overhaul. It refers to all aerospace maintenance activities provided by authorized actors in this industry. They group a set of strictly regulated, mandatory, and periodic activities, generally divided into 4 categories: Level A maintenance (monthly), Level B maintenance (every 3 months), Level C maintenance (every 12-18 months), and Level D maintenance (every 4-5 years). Aerospace Maintenance and Repair activities include line maintenance, structural maintenance, engine maintenance, and component and equipment maintenance.

MES

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

MRP

Material Requirements Planning. It is a push flow production management method based on product bills of materials and sales forecasts. Production is planned based on firm or planned orders.

MRP II

Manufacturing Resource Planning II. It is a method for planning all resources (material and human) of a factory. Its main quality is that it allows for infinite capacity planning and prepares finite capacity scheduling of resources.

MTBF

Mean Time Between Failures. It is a reliability indicator that measures the time between machine failures. It is an average of the machine's uptime.

MTO

Make to Order. Items are produced at the request of the customer. The flows are said to be pulled. This production method is used for expensive parts such as airplane wings or luxury bags.

MTS

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

MTTR

Mean Time to Repair. It is an indicator that measures the repair time of a product from the moment of reporting a failure to the moment of return to service or recovery by the customer.

Waste

It is an activity with no added value in a project but that is maintained. It is widespread and widely practiced without being questioned.

Variability

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

Overburden

It is an excess concerning personnel, material, or equipment resources.

Digitalization of the value chain

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

Scheduling

It is a set of actions that transform manufacturing decisions from the MPS (Master Production Schedule) into detailed instructions intended to pilot and control the activity of workstations in the workshop in the short term. It allows organizing tasks to be performed over time in order to meet customer orders.

Manufacturing Order

It is a document, or a set of documents, that gives the order to manufacture parts or products by specifying the quantities to be manufactured and the expected production dates. In the MO, we find the information on the bill of materials with its necessary components and the range with its manufacturing phases.

Production Order

It is a step of a MO (manufacturing order) that allows realizing the product in its entirety. For example, if "baking a chocolate cake" is a MO then "adding the eggs" is one 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 one customer order then the OTIF is 0%.

MPS

Master Production Schedule. The MPS sits between the S&OP and scheduling. It allows planning what articles to produce, when to produce them, and in what quantity. It calculates the load/capacity balance between order loads and factory capacities while minimizing storage costs.

S&OP

Sales and Operations Planning. It is responsible for globally optimizing the load-capacity match to best meet projected demand and meet objectives.

5W1H

What, who, where, when, how, how much, why? It is a questioning method to describe and analyze a situation.

SaaS

Software as a Service (SaaS) is a software distribution model in which a third-party provider hosts applications and makes them available to clients over the Internet. It is one of the 4 main categories of cloud computing. It allows it to be used and shared by several people in a mobile situation. However, it requires data to be hosted by a provider and internet access.

Synthetic Yield Rate | OEE

Synthetic yield rate. It is a performance indicator intended to track the utilization rate of a machine. It calculates the percentage of manufacturing time of a machine that is actually productive.

Cycle Time

It is the time from the start of production of an article until it is available for shipment.

Theory of Constraints | TOC

The theory of constraints was invented by Eliyahu Goldratt. In TOC, customer orders are associated with a bill of materials/routing network. Thus, routings and bills of materials are linked because each component is associated with a production operation. Therefore, each operation in the routing is tied to sections of the factory that have a minimum capacity and quantity for initiation. It is then necessary to identify bottleneck stations within the production line to optimize production throughput. The objective of TOC is to face the rising constraints of the market. The principles of this theory have been used in JIT but also beyond the supply chain.

OEE

The overall equipment effectiveness is an indicator used to track machine utilization rates. It also helps identify production losses.

Turnaround Time | TAT

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

AUP

Autonomous Production Unit. Organization of the production process of a product (or family of products) into a single group of machines and collaborators (generally arranged in U to maximize efficiency). It is a set of work cells. It is managed by a production manager who coordinates a team of functional support supervisors (quality manager, logistics, HSE, maintenance).