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Glossary of Manufacturing - Manufacturing terms Category: Agriculture and Industry Date & country: 27/04/2011, USA Words: 2096

Preventive Maintenance:
a central and intuitive component of TPM, and concerned with the determination of what is to be serviced and inspected, and the periodicity of doing so.

Price Elasticity/Inelasticity:
see elasticity.

Price Variance:
See Variance (Price).

Primary Product:
metal, crops, oil etc ... synonymous with commodity (qv).

Prime Cost:
see Cost (Prime).

Priority Rule (Priority of a Job):
see despatching rule, static rule and dynamic rule.

Private Equity:
private equity is a form of company lending: if a company needs money (say, to build a new factory), and is unable or unwilling to approach a bank, it might turn instead for the money to a private equity firm in the City of London. For the private equity firm, private equity represents any type of equity investment in an asset in which the equity ...

Privity (legal):
In a contract between two or more parties, the parties concerned are said to be privy to it (for example, the supplying company and the buying company). An outside party not privy to the contract cannot take action in law with regard to it, even though the outside party may be directly affected by the outcome of the contract. For example, our own ...

PRN (Package Recovery Note):
See Packaging Waste.

Pro Forma:
A general Latin phrase used to mean that something has been done or produced by way of example. It can mean the production of a "model", or standard, document or form - for example, a model export document to be completed in a standard way by all customers. Thus we have the term Pro Forma Invoice, an invoice (ie a bill requiring payment) ...

Probabilistic Model:
In creating a simulation, mathematical or other model of a set of procedures, such as one of a production scheduling situation, various parameters must be defined. Examples are rates of production; job leadtimes; and quantities of output. The model is said to be probabilistic if allowance is made in its operation for things not going exactly as sp...

Probable Error (PE):
This expression relates especially to the application of statistics and the properties of the normal distribution to measurement, metrology and uncertainty. It is defined as that distance for which there is a 50% probability of a measurement between the true value and +/- PE. In metrology, in stating the value of a measurement, one would also stat...

Process Capability:
The capability of a process to manufacture a part with given upper and lower specification limits. Process capability measures capability over a period of time (eg a month) so as to take into account capability with different operators and with different external envirionments, such as temperature and pressure. Contrast machine capabilty. See also...

Process Control Cycle Counting:
See Brooks-Wilson Cycle Counting.

Process Costing:
See Costing (Process).

Process Cycle Efficiency:
A metric, or measure, used in Just-in-Time / Lean manufacture to gauge the extent to which the manufacturer has removed waste and wasteful practice from the manufacturing cycle. Process cycle efficiency is defined as (Time spent adding value over the production cycle) / (Total lead time of the production cycle) x 100%. It has been asserted that th...

Process Map:
a flow chart.

Process Organised Company:
The management of large scale process industries (manufacturers of chemicals, semi-conductors and so on) is usually organised round responsibilities for one or more of the industrial processes which contribute to the final product. These areas of responsibility are cost centres, not profit centres, and staff are technology oriented rather than mark...

Producer's Risk:
The risk inherent in a sampling plan that a lot of parts that it was intended should be accepted will, in fact, be rejected by the customer. (See also Consumer's Risk.)

Product Availability:
In engineering design and the allied study of the propensity of a product to fail, "product availability" is a useful quantitative measure through which this vital machine characteristic can be expressed. It is defined as (mean time to failure)/ ((mean time to failure) + (mean time to repair)).

Product Brief:
Preparation of the product brief is the very first stage in the long and expensive process of designing, developing and introducing a new product to the company's selling range. The product brief says what is to be developed, the market at which it is aimed and the product's desired key features. A number of company departments will contribute to ...

Product Design Specification (PDS):
This document is a comprehensive and unambiguous statement of the features and characteristics that a new product under development is to have. The PDS definitely does not encompass the matter of design solutions. Aspects covered include target performance; working environment; expected life in service; cost; maintainability; size; weight; appeara...

Product Life Cycle:
See Life Cycle.

Product Organised Company:
A company in which individual management groups are assigned responsibility for specific products or group of products. The product focussed group is usually a profit centre, and acts, in effect, as a "focussed factory". For example, it must react quickly to shifts in market preferences and demand. The role of central staff in a product ...

Product Oriented Manufacture:
A factory or plant which is specifically built to accommodate the manufacture of either a single product or a very small number of similar products. Two examples are: (1) an oil refinery, built to process crude oil; and (2) a whisky distillery built to blend and then bottle a scotch whisky such as "Johnnie Walker". Product oriented manuf...

Production Cost:
See Cost (Production) . Also see 'production cost centre' in the free GMCS course on purchasing.

Production Forecast:
(1) A term used in costing to mean the output which is forecast to be required of a cost centre over a year. The production forecast is calculated by exploding the annual sales forecast through the bill of materials. It is most unlikely, of course, that actual production will be the same as the production forecast - see Volume Variance. (2) A term...

Production Overhead:
That part of a product cost attributed to indirect costs, as opposed to the part directly attributed to manufacture.

Productivity:
the degree to which a company or factory is effective and efficient in manufacturing items for sale. It is widely agreed that high productivity is "good" and that low productivity will lead to industrial decline. (And at the national level, if a country's industry is in decline, the country itself might be said to be in decline.) A major...

Profit (Gross):
Turnover less the cost of sales. Gross profit is often expressed as a percentage of turnover - for example, if gross profit =

Profit (Net):
Operating profit less other expenses.

Profit (Operating):
Gross profit less distribution and administration expenses.

Profit and Loss Account:
A major financial document required by law to be completed and filed at Companies House, Cardiff, as part of a company's annual returns. The document shows the following information for the year to which it refers: turnover; gross profit; various categories of expense; tax payable; and dividends distributed.

Profit Centre:
An area of operating activity where the manager has responsibility for costs and revenues.

Profit/Quantity Graph:
A breakeven chart centred round Cost/Quantity/Price Analysis (qv) illustrating the point in sales when profit equals zero.

Progress Chaser:
An expeditor (qv).

Projected Available Balance:
The stock of a product that it is forecast will be free for use on successive future dates (usually consecutive future days or weeks). The calculation of the amount is made as follows: (Free stock on the previous date) plus (receipts into stock on the future date in question) minus (the forecast requirements for stock on the future date).

Projected Gross Requirements:
The future gross requirements for a component or raw material, duly calculated as part of the netting logic of materials planning.

Promo:
Slick talk for a promotion (qv).

Promotion:
A major merchandising or selling initiative such as heavy TV advertising, nationwide direct mailing and so on, taken by a company and its advertising agency typically to bring to the attention of consumers a specific product (perhaps the launch of a new car, etc.).

Prophilograph Machine:
A device employing laser beams used for determining the flatness of a floor. See Floor (Flatness of).

Pseudo Bill
: synonymous with the super bill of materials.

Pseudo Part:
In assemble-to-order and the modular bill of materials, it is convenient to refer to customer options collectively as "parts" - an example is a car "sports pack". In fact, while the "part" may make sense from the customer's point of view, the individual parts needed to provide the option bear no physical relationship t...

PTFE:
Polytetrafluoroethylene.

PTH:
Plated Through the Hole.

PTN:
Post Tender Negotiation - see Tender.

Pull Manufacture:
Manufacture the rate of which is strictly and directly geared to the immediate requirements of the next stage of production, such requirements being directly communicated by the next stage. The expression is usually used in the context of Just-in-Time - ie manufacture is synchronised to market demand and controlled by the kanban system of visual c...

Purchase Order:
The purchase order is a formal company document which conveys the instructions or detail of a required supply. The legal role of the purchase order in forming the contract of supply will vary with circumstances: most usually, it will be an offer, such that the supplier's acceptance of it at the price mentioned seals the contract, but it might alte...

Purchasing Time Horizon:
In formulating the master schedule, a sufficiently distant period ahead must be specified to enable raw materials to be acquired in time. However, the leadtime of supply of a raw material will be different depending whether it is a repeat order (a "warm start") or whether it is a new order requiring, say, prior price negotiation and the e...

Purchasing:
a major, critical speciality within manufacturing industry. For a complete analysis of purchasing, see the 'course notes' relating to the free on-line course on the subject at this site.

Push Manufacture:
A faintly humorous term intended to contrast scheduled manufacture with pull manufacture (qv). That is, in making up a schedule, the quantities and timing of requirements are calculated according to an overall plan, and success means sticking to the plan regardless of actual current requirements at the various stages. In addition, in push manufactu...

Put Away Rules:
Rules relating to the placement of stock in a stores or warehouse after its arrival there from goods-in or from the shop floor. The rules are especially critical where the storage facility is a variable location one (qv), so that decisions are made within the software. (A computer program used for this purpose is referred to as a "put away al...

PUWER:
The Provision and Use of Work Equipment Regulations 1998. These regulations require employers to ensure equipment provided for use in materials handling is (a) suitable for its intended purpose; (b) has been assessed for risks associated with its use; (c) has been subject to recorded inspection; and (d) is maintained in good working order.

PVD:
Physical Vapour Definition - a method of applying a superior brass-like, high shine protective surface to metals such as polished stainless steel. PVD is expensive and employs vacuum treatment and annealing,

PWA:
Printed Wiring Assembly.

QA Standard:
see Check Standard.

QA:
Quality Assurance.

QC Standard (aka QC Sample):
see Check Standard.

QE:
Quantum Efficiency.

QFD:
See Quality, Function, Deployment.

QIP:
quality improvement process.

QIT:
quality improvement team.

QMS:
Quality Management Systems, a term used in the ISO 9000 : 2000 set of procedures (qv).

QR:
Quick Response - a term similar to Mass Customisation, denoting the quick final assembly of customer options in Assemble-to-Order. See Final Assembly Schedule.

QRM:
Quick Response Manufacturing - a term similar in meaning to Mass Customisation, denoting the quick final assembly of customer options in Assemble-to-Order. See Final Assembly Schedule.

qualco
: quasi autonomous local government organisation) In the UK, especially under a socialist government, quangos manage to spend enormous sums of money, although in their own defence they argue this is mainly spent in complying with civil service red tape (the provision and audit of plans, budgets, performance indicators, advertising proposals etc.).

Quality Grades:
In the process industries, it is possible for the operation of the production process to result in the production of a grade of material other than "grade 1". In these circumstances, it is essential that the stock record of the appropriate grade should be augmented to show stock quantities by individual grade.

Quality Lever:
imagine a see-saw (which is a lever, of course) that is 10 feet long, and which is rested on a fulcrum 8 feet from the end. Now imagine three points on the long end of the see-saw which are 8 feet from the fulcrum (point A), 6 feet from the fulcrum (point B) and 4 feet from the fulcrum (point C). The effect of a force on the short end of the see-sa...

Quality of Conformance (to Design):
an assessment as to how closely the design of a newly developed product matches the design goals encapsulated in the "Product Design Specification" (qv).

Quality Score Chart:
A variant of the Demerit Chart, in which an undesirable quality attribute is given a score depending on the severity of its manifestation (eg small hole = 5, medium hole = 10, large hole = 20 ...).

Quality:
There are numerous definitions of this phenomenon including the following: (1) the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs (BSI); (2) conformance to requirements (Philip Crosby); (3) a predictable degree of uniformity and dependability, at low cost and suited to t...

Quantity per:
See Usage.

Quantity Variance:
See Variance (Volume).

Quantum Meruit (legal):
Latin for "as much as he has deserved" - an agreement or court ruling that a buyer should pay proportionately for the work that has been done or the goods that have been delivered. For example, if only 600 units of an order for 1000 units are delivered, under a quantum meruit settlement, the buyer will simply pay a 60% portion of the bil...

Quarantine Area:
A factory area associated with either the shop floor or goods-in area in which stock is to be held pending its investigation with regard (usually) to quality.

Quarantine Stock:
see Stock (Quarantine).

Queue (2
) below). Work in progress physically present at a work centre, waiting to be loaded onto the machine for processing. Hence queue time, a major component of production leadtime in many factories (typically, queue time constitutes 90% of total lead time). While some degree of queue is usally welcome on the shop floor, to ensure men and equipment are...

Quick Response (QR):
the ability to respond quickly to a customer order for a highly differentiated product with many options - see FAS and Two-Level Master Scheduling.

qv:
quod vide (Latin), meaning "which see", an instruction directing the consultant of a term in this Glossary to a further reference elsewhere.

Race, The:
A follow up book to The Goal, qv.

Racking (Cantilever):
Warehouse or stores racking in which the shelving on which the goods rest is supported at the rear of the rack. Since there are no front supports, the shelving is suitable for long objects such as pipes and planks.

Racking (High Bay):
Racks which are, say, 70' to 200' high. Automatic stacker cranes are used to store and retrieve material, usually along narrow aisles. Narrow aisle high bay racking is costly to install and maintain, but provides high density of storage and good security.

Racking (Mobile):
Racks which can be moved, allowing very dense storage when closed up, and access to stock when the racking is moved. Perhaps used for very long-term low use storage, such as military field spares.

Racking Safety:
Racking safety is a vital on-going topic for the stores or warehouse manager. There are a number of courses in the UK on the subjecty - see SEMA and also the Storage Equipment Safety Service website. Note that a cost effective means of solving a need for racking is by hiring it - see the Nene Group site.

Racking System:
A honeycomb of pallet spaces, perhaps one space deep and (say) 35' high.

Rad
,Rai, Ram,Ran, Rbd, Rca, Rdt, Re, Rea, Rec, Red, Reed, Re-e, Rem Rep, Res, Ret, Rew, Rf, Rgb, Ri, Rib, Rid, Rig, Ris, Riu, Rms, Ro, Rob, Roc, Rod, Rohs, Roi, Rol, Ron, Roo, Rop, Rot, Rough, Rp, Rpm, Rpn, Rrp, Rsc, Rtd, Rty, Ruh, Rum, Run, Rus, Rx last entry

Radio Bar Codes:
loose talk for Radio Frequency Identification codes (see RFID). The term is often used by Tesco,

Radio Data Terminal:
see RDT.

Radio Frequency Identification:
see RFID.

Rainmaker:
slang for a talented, go-getting employee.

RAMP:
Rapid Acquisition of Manufactured Parts, a procedure associated with EDI for notifying to a supplier that parts are to be despatched immediately.

Range:
Usually, the difference between the smallest and largest measurement in a sample. The range is used in Statistical Process Control (SPC) and is plotted on a variable control chart.

Rank and Yank:
see Differentiation.

Ranking (of Jobs):
A qualitative job evaluation technique whereby the jobs to be ranked in order, from those that are to have the highest rates of pay to those to be awarded the lowest, are simply ranked against each other in order (1st, 2nd, 3rd ... ). Clearly, in order to carry out the ranking, job criteria must be decided.

Raw Material:
the products constituting the starting step in manufacture, and from which all subsequent manufactured items stem. Raw materials are obtained by buyers as part of the purchasing process, and occupy Level 99 in the levelled bill of materials - see Low Level Coding.

RBD:
Reliability Block Diagram, in design quality, a failure avoidance methodology.

RCA:
Radio Corporation of America.

RCCP:
See Rough Cut Capacity Planning.

RDT:
Radio Data Terminal - a small device, often hand-held, used in process monitoring and stores/warehouse control by which data may be transmitted to a computer, or received therefrom, by means of a radio link rather than by means of a co-axial cable. An RDT may weigh 15 oz, and have, say, a 128 character VDU display, a limited key pad, a 12 hour rec...

Real property:
land and buildings.