Manufacturing Glossary

Capacity utilization is a metric that measures the percentage of a facility's total potential production output that is actually being used.

Cellular manufacturing arranges equipment and workstations in a sequence to enable a smooth flow for a family of similar parts.

Changeover time is the total time it takes to switch a production line or machine from making one product to another.

A chargeback is a financial penalty a customer deducts from an invoice payment for a supplier's failure to meet specific operational requirements.

A Computerized Maintenance Management System (CMMS) is software that organizes, schedules, and tracks all maintenance activities for a facility's equipment.

Configure, Price, Quote (CPQ) is software that helps sales teams create accurate quotes for complex, customizable products.

Continuous improvement is the practice of making small, ongoing changes to manufacturing processes to increase efficiency and quality.

Corrective and Preventive Action (CAPA) is a structured process for investigating, fixing, and preventing quality problems.

Cost of Goods Sold (COGS) represents the direct costs of producing the goods sold by a business.

Cycle time is the total time required to complete all the steps of a process for one unit of production.