Downtime Industrial Glossary
Manufacturing Terms & Glossary
Activity-based costing system (ABC)-
A system that tracks costs based on the activities that are responsible for driving costs in the production of manufactured goods.
manufacturing strategies -
Tools, techniques, and initiatives that enable a plant or company to thrive under conditions of unpredictable change. Agile manufacturing not only enables a plant to achieve rapid response to customer needs, but also includes the ability to quickly reconfigure operations-and strategic alliances-to respond rapidly to unforeseen shifts in the marketplace. In some instances, it also incorporates "mass customization" concepts to satisfy unique customer requirements. And, in the broadest sense, it includes the ability to react quickly to technical or environmental surprises.
Annual inventory turns -
A measure of asset management that is calculated by dividing the value of annual plant shipments at plant cost (for the most recent full year) by the average total inventory value at plant cost. Total inventory includes raw materials, work in process, and finished goods. Plant cost includes material, labor, and plant overhead.
Any point at which production is slowed because demand placed on a resource is equal to or more than capacity. Bottlenecks identify machines that are critical to large sections of the production cycle.
A known temporary fix to a problem that may have to be performed one or more times until a permanent fix can be performed. ( A permanent fix may consist of scheduled down time requirements, re-engineering, new procedural developments, ect.)
Cellular manufacturing -
A manufacturing approach in which equipment and workstations are arranged to facilitate small-lot, continuous-flow production-often in a U-shaped cell. In a manufacturing "cell," all operations necessary to produce a component or subassembly are performed in close proximity, thus allowing for quick feedback between operators when quality problems and other issues arise. Workers in a manufacturing cell are typically cross-trained and, hence, able to perform multiple tasks as needed.
Competitive benchmarking -
Formal programs that compare a plant's practices and performance results against "best-in-class" competitors or against similar operations.
Computer-aided design (CAD) -
Computer-based systems for product design that may incorporate analytical and "what if" capabilities to optimize product designs. Many CAD systems capture geometric and other product characteristics for engineering-data-management systems, producibility and cost analysis, and performance analysis. In many cases, CAD-generated data is used to generate tooling instructions for computer-numerical-control (CNC) systems.
Computerized process simulation -
Use of computer simulation to facilitate sequencing of production operations, analysis of production flows, and layout of manufacturing facilities.
Computer-integrated manufacturing (CIM) -
A variety of approaches in which computer systems communicate or "inter-operate" over a network. Typically, CIM systems link management functions with engineering, manufacturing, and support operations. In the factory, CIM systems may control the sequencing of production operations, control operation of automated equipment and conveyor systems, transmit manufacturing instructions to equipment or operators, capture data at various stages of the manufacturing or assembly process, facilitate tracking and analysis of test results and operating parameters, or a combination of the above.
Computerized maintenance management software (CMMS)-
Software-based systems that analyze operating conditions of production equipment-vibration, oil analysis, heat, etc.-and equipment-failure data, and apply that data to the scheduling of maintenance and repair inventory orders and routine maintenance functions, thus preventing unscheduled machine downtime and optimizing a plant's ability to process product at optimum volumes and required quality levels.
Condition Based Depreciation (CBD) -
A form of depreciation that directly assesses and measures the run down in service potential of an asset. It is based on an auditable and cost-justified asset renewal plan. The cost of replacing lost service potential over the next 10-30 years (the exact period depends on the agency and the nature of the assets involved) is expressed as an annuity over the period. That annuity is the depreciation estimate. CBD is re-estimated on a continuous basis, based on a rolling future period. It is only used for assets which are essentially renewable rather than replaceable, i.e. infrastructure assets.
Condition Based Maintenance (CBM) -
Maintenance based on actual condition, obtained from non-invasive test, operating and condition monitoring.
Anything that restricts a system's ability to reach its goal.
Continuous-replenishment programs -
Arrangement with supplier companies in which the supplier monitors the customer's inventory and automatically replaces used materials, eliminating the need for purchase orders and related paperwork.
Core competency -
The processes, functions, and activities in a plant or company that are its "life blood"-typically those activities for which the enterprise derives the greatest return for its investments or those that intrinsically align the enterprise with its core market.
Cost of UnReliability (CoUR) -
The cost of lost opportunity. CoUR programs study plants as links in a chain for a reliability system, and the costs incurred when the plant, or a series of plants, fail to produce the desired result. The cost can be categorized in maintainability and reliability cost.
See Also True Downtime Cost (TDC). More info at Barringer & Associates, Inc.
A statistical calculation of process capability based on the relationship between process variability and design specifications. A good Cpk value indicates that the process is consistently under control-i.e., within specification limits-and is also centered on the target value. A Cpk value of 1.33 is typically considered a minimum acceptable process capability; as the Cpk value approaches 2.0, the process approaches Six Sigma capability (3.4 defective units per million). The ability to achieve high Cpk values is often related to how tight the specifications are set.
Cross-functional teams -
Teams of employees representing different functional disciplines and/or different process segments who tackle a specific problem or perform a specific task, frequently on an ad hoc basis.
Skill-development practices that require or encourage production workers and other employees to master multiple job skills, thus enhancing workforce flexibility.
Customer lead-time -
The time elapsed from receipt of an order until the finished product is either shipped or delivered to the customer.
Cycle time -
See "manufacturing cycle time."
Distributed Control System (DCS) -
A system customized per facility/organization and designed to meet the total measurement, control and real-time information requirements of today's process plants. A single application to connect to subsystems such as maintenance (CMMS), statistical process control (SPC), and advanced control.
Discrete manufacturing -
The production or assembly of parts and/or finished products that are recognizable as distinct units capable of being identified by serial numbers or other labeling methods-and measurable as numerical quantities rather than by weight or volume.
A reduction in the number of employees that occurs due to management decision, not associated with natural attrition.
Enterprise Asset Management (EAM) -
When most maintenance practitioners refer to CMMS systems they are in reality talking about EAM systems.
Electronic Data Interchange (EDI)-
(EDI) links-Information-system linkages, based on communication protocols and document formats, which permit inter-company computer-to-computer communications. EDI links not only speed communication, but also eliminate re-keying of information and reduces the opportunity to introduce errors. A typical EDI application might speed information exchange between a customer and supplier company for purchase orders, invoices, or other transactions. EDI communications are often facilitated through "electronic mailbox" systems on third-party value-added networks.
Empowered work teams -
Empowered teams share a common workspace and/or responsibility for a particular process or process segment. Typically empowered teams have clearly defined goals and objectives related to day-to-day production activities, such as quality assurance and meeting production schedules, as well as authority to plan and implement process improvements. Empowered work teams typically do not assume traditional managerial responsibilities.
Engineering Time Time -
A period of time when the equipment is in condition to perform its intended function, but is operated to conduct engineering experiments. (SEMI E10-96)
See Other Equipment Time Categories: Productive, Standby, Engineering, Scheduled Downtime, Non-Scheduled,
and Total Time
Enterprise resource planning (ERP) system -
An extension of MRP II software. ERP systems typically claim the ability to achieve tighter (or "seamless") integration between a greater variety of functional areas, including materials management, supply-chain management, production, sales and marketing, distribution, finance, field service, and human resources. They also provide information linkages to help companies monitor and control activities in geographically dispersed operations; and, in a fully deployed mode, ERP systems facilitate capture of transactional data into data warehouses to support executive decision-making systems.
Expert systems (ES) -
A computer program that uses artificial intelligence to solve problems within a specialized domain that ordinarily requires human expertise.
extension of organization's intranet: an extension of the intranet of a company or organization. An extranet gives authorized outsiders, for example, customers, suppliers, or business partners, controlled access to parts of the intranet.
Finite capacity scheduling -
Software-based systems that enable simulation of production scheduling (and determination of delivery dates) based on actual unit/hour capacity at each step in the production routing. Finite scheduling systems, running on desktop computers, often compensate for the "infinite capacity" assumptions built into capacity-planning modules in traditional MRP II systems.
Finished-goods turn rate -
A measure of asset management that typically is calculated by dividing the value of total annual shipments at plant cost (for the most recent full year) by the average finished-goods inventory value. Plant cost includes material, labor, and plant overhead.
Failure mode and effect analysis (FMEA) -
A technique to find the weaknesses in designs before the design is realized, either in prototype or production. The technique is an applied form of problem solving, and can be used in a large range of engineering disciplines.
See also: FMEA Information Centre: Index
Finished-product first-pass yield -
The percent of finished-products that meet all quality-related specifications at a final test point. In process industries, yield is often calculated as the percentage of output that meets target-grade specifications (excluding saleable "off-grade" product).
Focused-factory production -
A plant configuration and organization structure in which equipment and manpower is grouped to create essentially self-contained "mini-businesses," each with a specific product-line or customer focus. A single plant may be divided into several focused-factory units, designed around process flows, each of which has control over such support activities as maintenance, manufacturing engineering, purchasing, scheduling, and customer service.
Forecast/demand management software -
Software that provides front-end input to master production scheduling systems and helps to optimize inventory planning. Such software not only takes into account historical demand trends, but also may calculate the impact of planned sales promotions, price reductions, and other factors that cause spikes in demand levels.
Interactive electronic technical manuals (IETM) -
Technical manuals in HTML or other hyperlinked electronic format.
A secure, internal corporate Internet-based network.
ISO 9000 -
An international quality-process auditing program, based on a series of standards published by the International Standards Organization in Geneva, Switzerland, through which manufacturing plants receive certification attesting that their stated quality processes are adhered to in practice.
ISO 14000 -
Standards and guidelines defined by the International Standards Organization for environmental-management systems.
JIT/continuous-flow production -
Implementation of "just in time" techniques to reduce lot sizes, reduce setup times, slash work-in-process inventory, reduce waste, minimize non-value-added activities, improve throughput, and reduce manufacturing cycle time. JIT production typically involves use of "pull" signals to initiate production activity, in contrast to work-order ("push") systems in which production scheduling typically is based on forecasted demand rather than actual orders. In many "pull" systems, a customer order/shipment date triggers final assembly, which in turn forces replenishment of component WIP inventory at upstream stages of production.
JIT delivery -
Delivery of parts and materials in small lots-and on a frequent basis-timed to the needs of the production system.
Key Performance Indicators (KPIs)-
KPI refers to the short list of measurable parameters that will indicate how well the business is doing at attaining its goals. In a manufacturing quality scenario, this may be the amount of scrap or rework that gets metered. In a service quality scenario, such as an insurance company, this may be the open inventory of unprocessed claims. In brand management, market share in itself and in comparison with competing brands is sure to be relevant. In logistics, on-time deliveries, empty return loads, or missing items are candidate indicators.
"Lean" Manufacturing -
The systematic identification and elimination of waste to reduce manufacturing or operating costs.
Life Cycle Costing -
Life Cycle Costing is a framework for evaluating design options on the basis of all of the costs that the asset will incur over its lifetime. Present Value Discounting is applied to all of the costs to account for the fact that a dollar today is worth more than a dollar tomorrow. Life cycle costs include the initial purchase cost, ongoing maintenance and periodic updating. Some studies include operating costs.
Life Cycle Costing is sometimes referred to as “Terotechnology” but terotechnology is really the ‘science’ of life cycle costing; it is concerned more with the analysis of component data and derivation of the appropriate component life cycles than with application. Terotechnology is a more common term in manufacturing industry where it is applied to analyzing the life spans of relatively short lived plant and equipment rather than longer lived infrastructure assets.
Labor turnover rate -
A measure of a plant's ability to retain workers, expressed as a percentage of the production workforce that departs annually-or an annualized rate of employee departures. High turnover rates often indicate employee dissatisfaction with either working conditions or compensation.
The available time is derived by subtracting the planned downtime from the available time per day or week, etc.
Labor Per Product (LPP/LPU) -
Also known as Labor Per Unit, is calculated using vague estimates of material, Direct Labor, and overhead cost. The cost per unit is normally used for external reporting only, not management decision.
Example: Direct labor (operator) X 30% fringe benefits = LPP = LPU
Manufacturing cost -
Includes quality-related costs, direct and indirect labor, equipment repair and maintenance, other manufacturing support and overhead, and other costs directly associated with manufacturing operations. It typically does not include purchased-materials costs or costs related to sales and other non-production functions.
Manufacturing cycle time -
The length of time from the start of production and assembly operations for a particular (finished) product to the completion of all manufacturing, assembly, and testing for that product or specific customer order. (Does not include front-end order-entry time or engineering time spent on customized configuration of non-standard items.)
Manufacturing execution systems (MES) -
Software-based systems that provide a link between planning & administrative systems and the shop floor. It can link MRP II-generated production schedules to direct process-control software. An element of computer-integrated manufacturing, MES encompasses such functions as planning and scheduling, production tracking and monitoring, equipment control, maintaining product histories (verifying and recording activities at each stage of production), and quality management.
Mean Cycles Before Failure (MCBF) -
Mean Cycles Between Failures; the average number of equipment cycles between failures; total equipment cycles divided by the total number of failures during those cycles (includes both product and non-product cycles).
Mean Time Before Failure (MTBF) -
An indicator of expected system reliability calculated on a statistical basis from the known failure rates of various components of the system. MTBF is usually expressed in hours. Over a long performance measurement period, the measurement period divided by the number of failures that have occurred during the measurement period.
Mean Time To Repair (failure) (MTTRf)-
The average time to correct a failure and return the equipment to a condition where it can perform its intended function; the sum of all repair time (elapsed time, not necessarily total man hours) incurred during a specified period (including equipment and process test time, but not including maintenance delay), divided by the number of failures during that period.
Manufacturing Resources Planning (MRP) -
MRP II - Software-based Manufacturing Resources Planning systems that translate forecasts into master production schedules, maintain bills of material (lists of product components), create work orders for each step in the production routing, track inventory levels, coordinate materials purchases with production requirements, generate "exception" reports identifying expected material shortages or other potential production problems, record shop-floor data, collect data for financial reporting purposes, and other tasks depending on the configuration of the MRP II package.
Machinery Information Management Open Systems Alliance
MIMOSA advocates open exchange of equipment condition related information between condition assessment, process control and maintenance information systems through published, consensus, conventions. This to gain greatest value by combining vital condition information from multiple sources for collective evaluation, reaching accurate determinations of current condition and projected lifetime and communicating results in a useful, understandable form.
MIMOSA is committed to preserving the advantages, effectiveness and rich detail contained in specialized applications such as vibration, temperature, lubricating oil and electric motor monitoring and analysis systems within an integrated enterprise information structure.
Non-Scheduled Time -
A period of time when the equipment is not scheduled to be used in production, such as un-worked shifts, weekends, and holidays. (SEMI E10-96)
Overall Equipment Efficiency (OEE) -
The overall performance of a single piece of equipment,
or even an entire factory, governed by the cumulative impact of 3 factors: Availability, Performance Rate (which includes machine speed), and Quality Rate. (Ex: 50% Availability (0.5) x 70% Performance Rate (0.7) x 20% Quality Rate (0.8) = 30%OEE)
Use to measure how effective in relationship to the planned production schedule.
See also TEEP
Original Equipment Manufacturer (OEM) -
An OEM (original equipment manufacturer) is a company that build a product that it sells under its own company name. An air compressor manufacturer is an OEM, and the manufacturer of the PLC inside that air compressor is an OEM.
On-time delivery rate -
The percentage of time that ordered products are received by customers by the specified time or date. Some plants will base this calculation on the date "promised" to customers, but better facilities typically will calculate it against dates "requested" by customers.
Open System -
Capable of automatic communication and information exchange without any proprietary or system specific, software links. Can a system access information resident in programs from different suppliers without special software?
Outsourcing - Shifting of production work or support activities to an outside (third-party) supplier.
The amount of time officially scheduled in the production plan, which includes, no orders, changeovers and planned maintenance.
Planning and scheduling technologies - A variety of software-based advanced planning, scheduling, and optimization systems.
Plant-level return on net assets (ROA)-
Where possible, this should be calculated as: plant-level profitability (PLP) divided by average net assets (ANA) employed. PLP can be calculated as annual value of shipments minus materials costs and manufacturing costs. ANA should include fixed assets, inventory, receivables, and cash minus accounts payable and other current liabilities.
Predictive Maintenance (PdM)-
Practices that seek to prevent unscheduled machine downtime by collecting and analyzing data on equipment conditions. The analysis is then used to predict time-to-failure, plan maintenance, and restore machinery to good operating condition. Predictive maintenance systems typically measure parameters on machine operations, such as vibration, heat, pressure, noise, and lubricant condition. In conjunction with computerized maintenance management systems (CMMS), predictive maintenance enables repair-work orders to be released automatically, repair-parts inventories checked, or routine maintenance scheduled.
Preventive maintenance (PM) -
Maintenance activities, often performed by machine operators at regularly scheduled intervals, to keep equipment in good working condition.
Process manufacturing -
The manufacturer of products such as chemicals, gasoline, beverages and food products that typically are produced in "batch" quantities rather than discrete units. Many process operations require inputs such as heat, pressure, and time (for thermal or chemical conversion).
Is a measure of the relative ease and economy of producing a product, using conventional and flexible manufacturing methods. The process must not sacrifice functionality, performance, effectiveness or quality.
Product data management (PDM) -
Software-based systems that link, manage, and organize product-related data from various sources-both internally and externally (from suppliers)-across various computer platforms, divisions, departments, and geographic locations. PDM incorporates CAD files, manufacturing data, and documents to reduce engineering design times; ensures timely access to consistent up-to-date product information; and improves information flow, cross-functional communications, and support services.
The primary definition here is annual dollar value of shipments per employee.
Productive Time -
A period of time when the equipment is performing its intended function. This includes regular production (including loading and unloading of product), rework, work for third parties, and engineering runs done in conjunction with production. (SEMI E10-96)
See Other Equipment Time Categories: Standby, Engineering, Scheduled
Downtime, Unscheduled Downtime, Non-Scheduled,
and Total Time
Parts Per Million (PPM) -
PPM is a way of stating the performance of a process in terms of actual or projected defective material.
Quick-changeover techniques -
A variety of techniques, such as SMED (single-minute exchange of dies), which reduce equipment setup time and permit more frequent setups, thus improving flexibility and reducing lot sizes and manufacturing cycle times.
QS 9000 -
A common quality certification program for auto industry suppliers. Developed by the Big Three automakers, it includes ISO 9000 as a baseline.
Raw-materials turn rate -
A measure of asset management that typically is calculated by dividing the value of total annual shipments at plant cost (for the most recent full year) by the average raw-material value at plant cost. Plant cost includes material, labor, and plant overhead.
Reactive Maintenance (RM)-
Action after an event (opposite of proactive). A reactive maintenance department acts when breakdown occurs, or work order is requested.
Reliability-Centered Maintenance (RCM)-
A methodology used to define a maintenance program while having reliability as an input to the decision making process. Originally developed by the aviation industry and known as MSG-3 (Maintenance Steering Group), Reliability Centered Maintenance or RCM has since been adopted by many different industries.
Real-time feedback -
Instantaneous (or nearly instantaneous) communication of electronically captured data (typically quality data) to process operators or equipment to enable rapid or automated adjustments to keep production processes operating within quality parameters.
Root Cause Analysis (RCA) -
A technique for uncovering the cause of a failure by deductive reasoning down to the physical and human root(s), and then using inductive reasoning to uncover the much broader latent or organizational root(s.)
Run to Failure (RTF) -
A maintenance practice for some non-critical, inexpensive, and easily replaced components, are ran until failure and then replaced.
Safety-improvement programs -
Practices intended to constantly improve safety within a plant or across a company, including, but not limited to, safety teams, safety awareness programs and communications, safety "days," safety training, and setting of continuous-improvement goals targeting safety metrics, such as OSHA reportable or lost-workday rates.
Supervisory Control And Data Acquisition - SCADA system refers to the combination of telemetry and data acquisition. It consists of collecting information, transferring it back to a central site, carrying out necessary analysis and control, and then displaying this data on a number of operator screens. The SCADA system is used to monitor and control a plant or equipment. Control may be automatic or can be initiated by operator commands.
- SCADA system incorporates both hardware and software and provides central monitoring and control of plant and facilities.
- SCADA typically consist of a “master” terminal unit (MTU) and one or more “remote” terminal units (RTU).
Scheduled Downtime -
A period of time when the equipment is not available to perform its intended function due to planned downtime events. These include maintenance delay (delay after an interrupt is reported, but before anyone arrives to repair it); production test; preventive maintenance; change of consumables; setup; and facilities-related downtime. (SEMI E10-96)
See Other Equipment Time Categories: Productive, Standby, Engineering, Unscheduled Downtime, Non-Scheduled,
and Total Time
Self-directed work teams -
Nearly autonomous teams of empowered employees, including hourly workers that share a common workspace and/or responsibility for a particular process or process segment. Typically such teams have authority for day-to-day production activities and many supervisory responsibilities, such as job assignments, production scheduling, maintenance, materials purchasing, training, quality assurance, performance appraisals, and customer service.
Standard Industrial Classification (SIC) code -
A coding system of the U.S. government used to identify specific economic sectors. Coding for manufacturers encompasses the two-digit numbers of 20 through 39.
Standby Time -
A period of time, other than non-scheduled time, when the equipment is in a condition to perform its intended function, facilities are available, but it is not operated. This includes time when no operator is available, time when no product is available (no boards or components), and waiting on upstream or downstream equipment. (SEMI E10-96)
See Other Equipment Time Categories: Productive, Engineering, Scheduled
Downtime, Unscheduled Downtime, Non-Scheduled,
and Total Time
Statistical process control (SPC) -
Use of variation analysis, with manual or computerized control charts, to detect irregular variations in a process as quickly as possible. Often, SPC charts display upper and lower limits for part characteristics or process parameters and show trends over time, indicating when the limits are exceeded (or are about to be exceeded) and corrective actions are needed. In some closed-loop systems, adjustments are made automatically when readings indicate that a control limit is being approached.
Time to re-instate (TTR) -
Time required to re-instate equipment back into production at full speed.
Total Time -
All time during the period being measured (at the rate of 24 hours per day, seven days per week.) Also equal to the sum of time spent in all six equipment time categories. (SEMI E10-96)
See Other Equipment Time Categories: Productive, Standby, Engineering, Scheduled Downtime, Unscheduled Downtime, and Non-Scheduled.
Total quality management (TQM) -
A multifaceted, company-wide approach to improving all aspects of quality and customer satisfaction-including fast response and service, as well as product quality. TQM begins with top management and diffuses responsibility to all employees and managers who can have an impact on quality and customer satisfaction. It uses a variety of quality tools such as QFD, Taguchi methods, SPC, corrective-action response teams, cause-and-effect analysis, problem-solving methodologies, and fail-safeing (or "poka-yoke" methods).
True Downtime Cost (TDC) -
A method of recording and analyzing all significant cost metrics associated with equipment downtime in a building or manufacturing facility. TDC provides a way to assign time and/or monetary value to previously considered “non-tangible” cost of downtime. Also TDC includes downtime factors commonly overlook to arrive at a more true value for the cost of downtime.
See also TDC Metrics.
Total Effective Equipment Productivity (TEEP) -
A percentage figure that represents the portion of production of good parts versus total available time. (time being all hours in a day, all days in a month, and all months in a year)
TPR X SP
Theoretical production rate (parts per hour) =TPR
Hours in measurement sample = SP
Actual good products produced in SP = PR
(Example: 7 day sample = 24X7 = 168 hours, manufacturer rates machine at 2 parts per hour capability, you ran 168 good parts in 168 hours.)
Your TEEP= (2X168)/168=50% TEEP
Use to measure how effective in relationship to theoretical goal of equipment/facility being scheduled to run 24/7/365.
See Also OEE
Total Productive Maintenance (TPM) -
Total Productive Maintenance. A maintenance system set up to eliminate all of the barriers to production.
Unscheduled Downtime -
A period of time when the equipment is not available to perform its intended function due to unplanned downtime events. These include maintenance delay, repair, change of consumables, out-of-spec input, and facilities-related downtime. (SEMI E10-96)
See Other Equipment Time Categories: Productive, Standby, Engineering, Scheduled Downtime, Non-Scheduled,
and Total Time
Work-in-process inventory (WIP) -
The amount or value of all materials, components, and subassemblies representing partially completed production; anything between the raw material/purchased component stage and finished-goods stage.
WIP turn rate -
A measure of the speed at which work-in-process moves through a plant. Typically calculated by dividing the value of total annual shipments at plant cost (for the most recent full year) by the average WIP value at plant cost.
World-class manufacturer -
A somewhat arbitrary designation that can be supported by performance results related to various manufacturing metrics. (World-class metrics may vary from one industry to another.) Typically, it denotes "best in class" producers on a worldwide basis. In the broadest sense, world-class manufacturers are those perceived to deliver the greatest value at a given price level.