In the occurrence of a bottleneck production costs generally are increased as the inefficiencies delay production times. The bill of materials is used in manufacturing to refer to the current production configuration or recipe rather than the actual bill defining the cost of production.īottlenecking or the bottleneck is the point in the production line where congestions occur due to an influx of products that cannot be processed quickly enough. The BOM is generally tied to the production order which reserves the exact quantity of raw materials for the completion of the product. This bill of materials includes all assemblies, subassemblies and the number of parts used in the production of the end product. By analyzing indicators such as cost-per-unit or defects-per-batch, benchmarking allows managers to assess performance and construct plans for improvement.īill of materials (BOM) is the list of all raw materials that go into the final assembly of a product. This process looks at specific metrics to determine the quality of performance within the manufacturing process. Automation or labor-saving technology uses various control systems to reduce man-hours in exchange for more efficient machine hours.īenchmarking is the practice of comparing one plant or organization’s performance and processes to industry standards. The Andon board gives workers the ability to halt production and address production quality issues in a timely manner.Īutomation is the manufacturing process or system of reducing or eliminating the need for human intervention during manufacturing. Its purpose is to notify management, maintenance teams and other employees of a current or emerging problem in the manufacturing process. Agile manufacturing can include lean and flexible manufacturing as well as “mass customization” concepts.Īndon boards are signaling devices displaying the current state of a manufacturing line. The process of quickly responding to consumer needs, agile manufacturing incorporates tools and training to respond to changes in market demands thus reducing lead times across organizations. This process has made it possible to quickly and efficiently produce prototypes bringing designs to life in minutes to hours, depending on the intricacy.Īdvanced or innovative manufacturing uses the latest generation of manufacturing technology and improves work/process systems through the integration of advanced technology, allowing for a smoother more efficient manufacturing process. Also known as 3D printing, additive manufacturing is the process by which a computer-rendered (CAD) model design is produced by a machine layer by layer. The more traditional way of assigning costs simply divides indirect costs evenly across all products and services.Īs technology moved from analog to digital, additive manufacturing became possible. This process allows for a more accurate reflection of indirect costs by recognizing certain products or services that require more time than others.
This allows designers and engineers to turn ideas into physical prototypes and efficiently concept test those designs.Īn accounting process, activity-based costing assigns indirect or overhead costs to all products and services based on the consumption by each. These designs can then be printed layer by layer producing intricate shapes and designs that would prove challenging or impossible when done by hand.ģD printing has streamlined prototyping making it possible to rapidly produce and scale models. Designs are rendered in a Computer-Aided Design (CAD) or other 3D software. Manufacturing terms glossaryģ-Dimensional Printing also known as additive manufacturing, is the process of compiling thin layers of material, generally polymers or metals to produce a 3-dimensional structure with ease. That’s why we’ve created this manufacturing glossary with over 80 manufacturing terms and definitions. Chances are you hear a lot of industry-specific jargon like CAPA, composites, and Kaizen.
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