Modern industrial and commercial practice Key Terms

Unit Production System (UPS)

A manufacturing system that uses a single unit of product to be processed through various stages of production, allowing for flexibility and efficiency.

Vertical In-house Production

A production method where a company controls all aspects of manufacturing, from raw materials to finished products, within its own facilities.

Subtractive Manufacturing

A manufacturing process that removes material from a solid block to create a desired shape.

Material Waste

The excess material that is discarded during the manufacturing process, which can lead to increased costs and environmental impact.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Lean Manufacturing

A production practice that considers the expenditure of resources in any aspect other than the direct creation of value for the end customer to be wasteful and thus a target for elimination.

Material Efficiency

The effective use of materials to minimize waste and reduce costs during manufacturing.

Computer-Aided Design (CAD)

Software that enables the creation, modification, analysis, and optimization of a design.

Computer-Aided Design (CAD)

Software used to create precision drawings or technical illustrations in product design.

Lean Manufacturing

A production practice that considers the expenditure of resources in any aspect other than the direct creation of value for the end customer to be wasteful.

Modular Production

A manufacturing approach that divides products into separate modules for easier assembly and customization.

Just in Time (JIT)

A strategy that aligns production with demand to minimize inventory and reduce waste.

Lean Manufacturing

A production practice that considers the expenditure of resources in any aspect other than the direct creation of value for the end customer to be wasteful and thus a target for elimination.

Circular Economy

An economic system aimed at eliminating waste and the continual use of resources by creating closed-loop systems where waste is minimized, and materials are reused.

Automation

The use of technology to perform tasks without human intervention, often leading to increased efficiency and precision.

Inventory Management

The process of overseeing and controlling the ordering, storage, and use of materials and products in a business.

Material Efficiency

The practice of using materials in a way that minimizes waste and maximizes utility.

Prototyping

The process of creating a preliminary model of a product to test and refine its design.

Standardisation

The process of establishing and applying technical standards to ensure compatibility and quality in components.

Sub-assembly

An assembly of multiple components that is completed before being integrated into a final product.

Sub-assembly

A manufacturing process where components are assembled separately before being combined into a final product.

Supply Chain Management

The management of the flow of goods and services, including all processes that transform raw materials into final products.