Manufacturing Glossary

Takt time is the rate at which you need to complete a product to meet customer demand.

The Theory of Constraints is a method for improving system performance by identifying and managing the single biggest limiting factor, or constraint.

A service that allows a manufacturer to outsource operational logistics, from warehousing to delivery.

Throughput is the rate at which a system produces finished goods over a specific period.

Total Cost of Ownership (TCO) is the full lifetime cost of an asset, including its purchase price, operating expenses, and disposal fees.

Total Productive Maintenance (TPM) is a strategy that makes equipment maintenance a shared responsibility for all employees to improve productivity.

Traceability is the ability to track a product's history, location, and components from raw materials to the final customer.

Total Manufacturing Cost (TMC) is the sum of all costs a manufacturer incurs to produce goods during a period: direct materials, direct labor, and manufacturing overhead. It captures everything consumed on the shop floor before accounting for changes in work-in-process inventory.