Introduction to Manufacturing Management 107

accountability

The state of being answerable or responsible for one’s own actions and decisions. Accountability involves taking ownership for one’s choices, including acknowledging mistakes.

accounting

The department of an organization responsible for its financial accounts. Accounting records, analyzes, and reports on financial activity, as well as provides financial advice that may guide decision-making.

adaptation

The process of making changes to processes to eliminate variance or inefficiencies. Adaptation in Scrum project management leads to process improvements.

agile

A project management methodology that facilitates the ability to respond quickly to customer needs and market changes while still controlling costs and quality. Agile emphasizes continuous improvement.

American National Standards Institute

ANSI. A private, non-profit organization that administers and coordinates voluntary standards and systems in the United States. The American National Standards Institute produces nationally approved standards for the manufacturing industry.

artificial intelligence

AI. A computer program with algorithms that enable a machine or computer to imitate intelligent human behavior. Artificial intelligence allows machines to perform processes with autonomy.

authoritarian

Strictly enforcing obedience to authority over flexibility or freedom of choice. Authoritarian leaders may seem to distrust their team members and cause team members to feel undervalued.

business ethics

The code of conduct that requires organizations to act in a fair, legal, and responsible manner. Business ethics allow companies to build social capital.

chain of command

The pathways of communication and authority in an organization. A chain of command establishes a hierarchy, where individuals at the top of an organization hold greater authority than those at lower levels.

circular design

A type of organizational design that depicts company leaders in the center, with lower-level employees arranged on the outermost circle. A circular design focuses on communication and collaboration.

coaching

The act of a leader providing feedback, guidance, or support to an employee. Coaching can help employees develop and improve skills, as well as achieve goals.

collective bargaining

A negotiation process between an employer and employees, often represented by a union. Collective bargaining occurs for many reasons, such as seeking fair compensation and benefits.

contamination

The presence of unwanted substances that can compromise product safety and quality. Contamination includes microbial, chemical, and physical impurities.

continuous education

Any ongoing learning and training activity that takes place after initial training. Continuous education ensures that employees keep up with changes in industry practices and regulations.

continuous improvement

A lean manufacturing concept that describes an ongoing effort to make products, services, or processes better. Continuous improvement identifies opportunities for improvement, takes action to achieve improvement, analyzes the results, and implements workable solutions.

controlling

To compare the current status of a project with the original timeline and make necessary adjustments. Controlling a project focuses on taking action to ensure a project stays on track.

critical path

The longest-duration path along the critical path network diagram. Tasks on the critical path cannot be delayed without impacting the timeline of the entire project.

critical path method

CPM. The creation of a network diagram of project tasks that shows which tasks are dependent upon the completion of prior tasks. The critical path method helps identify the most important tasks to complete.

customer service

Any activity that is designed to enhance customer experience with a product and provide the feeling that a company cares about meeting customer needs. Customer service can involve integrating the customer in the production cycle and following up to ensure satisfaction after product delivery.

cybersecurity

Protection against criminal or unauthorized access to computer networks, programs, and data. Cybersecurity has become a major industrial concern as networking and connectivity have increased.

data

A collection of numbers, facts, and information about a process or product. Data can be created, communicated, and recorded by both employees and smart technology.

data science

A field of study that uses statistics and data analysis with computing technology. Data science allows manufacturers to gain valuable insight from historical data to improve operations.

democratic

Including group members in the decision-making process through participation and collaboration. Democratic leadership ensures that group members feel like their input and engagement are valued.

Department of Labor

DOL. The U.S. cabinet department in charge of work-related issues. The Department of Labor exists to foster employees’ welfare, improve working conditions, and promote opportunities for profitable employment.

dependent

To require or rely upon another variable. In a Gantt chart, tasks that are dependent upon the completion of other tasks appear in sequence rather than overlap.

diagrams

A simplified drawing showing the appearance, structure, or workings of something. Diagrams simplify complex ideas and illustrate connections between elements.

discrimination

The act of treating an individual unfairly or unequally based on a protected characteristic. Discrimination is legally prohibited in hiring, firing, promotions, compensation, and other aspects of employment.

distributing

The movement of parts from manufacturers at the point of production to end-use customers. Distributing goods involves packaging, transporting, and delivering them.

divisional design

A type of organizational design that depicts smaller structures of a company. Divisional design breaks its branches down by market, product, or region.

divisions

A separate unit within a larger organization. Divisions within a company may be divided by market, product type, or region.

DMAIC

A five-step approach for quality improvement used by Six Sigma. DMAIC stands for define, measure, analyze, improve, and control.

enterprise resource planning

ERP. A software package that takes the data from internal and external information systems and integrates it throughout the organization. Enterprise resource planning systems maintain a single database that contains the data needed for a variety of business functions, such as maintenance, supply chain management, financials, projects, human resources, and customer relationship management.

ethics

The values or morals that guide human behavior. Adhering to ethics builds trust with customers and ensures safe and fair treatment of employees within an organization.

Fair Labor Standards Act

A statement that establishes that Occupational Safety and Health Administration (OSHA) protections apply even to situations for which there are no specific standards. The general duty clause requires employers to furnish places of employment that are free from recognized health and safety hazards.

fishbone diagrams

A visual tool that identifies and isolates potential causes of a problem. Fishbone diagrams list the problem in the center and possible causes branching out from it.

five key components

The essential elements of a strategic plan. The five key components are the organization’s mission, values, vision, objectives, and goals.

flowcharts

A graphic layout that provides the various steps in a process, procedure, or program. A flowchart helps to identify flaws and bottlenecks and improve the whole operation.

Food and Drug Administration

FDA. The department of the U.S. government that is responsible for regulating food, drugs, and medical devices. The Food and Drug Administration enforces Good Manufacturing Practices (GMP) and conducts audits to ensure compliance with health and safety standards.

forecasting

To predict demand for a product based on previous patterns. Forecasting helps organizations determine the amount of inventory they need, the production schedule, and the cost of manufacturing products.

functional design

A type of organizational design that depicts company leaders at the top and separates lower levels by job function. Functional design focuses on highlighting employee roles.

Gantt charts

A horizontal bar graph showing a planned duration for each project task, and the project as a whole. Gantt charts are often used alongside work breakdown structures.

general duty clause

A statement that establishes that Occupational Safety and Health Administration (OSHA) protections apply even to situations for which there are no specific standards. The general duty clause requires employers to furnish places of employment that are free from recognized health and safety hazards.

geographically-based

A characteristic used to break down divisional organization designs based on location. Geographically-based divisions may serve a specific country, region, or city.

Good Manufacturing Practices

GMP. A set of guidelines that ensures the safety and quality of products used in or on the human body. Good Manufacturing Practices are essential for maintaining product safety, quality, and consistency in industries like pharmaceuticals, food production, and medical device manufacturing.

harassment

Any unwelcome conduct based on a protected characteristic, such as race, color, religion, sex, national origin, age, disability, or genetic information, that creates a hostile, intimidating, or offensive work environment. Harassment is a form of discrimination.

hierarchical designs

A type of organizational design that depicts company leaders at the top and lower-level employees on the bottom. Hierarchical designs show levels of authority and chains of command.

HR

Human resources. The department responsible for managing employee relations, benefits, and compliance with labor laws. HR hires employees, manages employee compensation and benefits, and deals with conflicts and other employee issues.

human resources

HR. The department responsible for managing employee relations, benefits, and compliance with labor laws. Human resources hires employees, manages employee compensation and benefits, and deals with conflicts and other employee issues.

Industrial Internet of Things

IIoT. A network of physical devices used in manufacturing that contain computing systems that allow them to send and receive data. The Industrial Internet of Things allows devices to exchange data and automate processes without any human intervention.

information technology

IT. The use of computer systems for storing, processing, retrieving, and sending data. Information technology includes devices that create, process, or store electronic data, such as computers and smartphones.

in-line inspection

The examination of a product during the production process. In-line inspection is an efficient way to inspect parts using machine learning.

inspection

The identification of undesirable variance or errors in parts or processes. Inspection in Scrum project management enables adaptation.

International Automotive Task Force

IATF. A group of automotive manufacturers and their respective associations that seeks to improve product quality throughout the automotive supply chain. Members of the International Automotive Task Force include automakers from the United States, the United Kingdom, and Europe.

International Organization for Standardization

ISO. A non-governmental institution that develops and establishes standards, rules, and guidelines to ensure that products, processes, and services are fit for their purposes. The International Organization for Standardization created and maintains the popular quality standard ISO 9001:2015.

inventory

A quantity of goods held in stock. Inventory refers to raw materials, partially finished products, and finished products prior to sale.

ISO 9001:2015

The core standard of the ISO 9000 series that contains the requirements an auditor uses to verify conformity of a quality management system. ISO 9001:2015 is titled "Quality Management Systems - Requirements" and presents the actual material to which an organization must conform for certification.

just-in-time

An approach to production and distribution that emphasizes flexible processes and reduced inventories to decrease costs and improve responsiveness. With just-in-time manufacturing, materials and products are ready precisely when needed.

kanban

An agile project management framework derived from Lean manufacturing that represents projects visually. Kanban uses columns in a board to represent stages of a project and cards that travel between columns to represent individual tasks.

labor relations

The way in which management talks to, behaves toward, and deals with employees. Labor relations involve complying with labor laws.

lean

An approach to manufacturing that seeks to reduce the cycle time of processes, increase flexibility, and improve quality. Lean manufacturing helps to eliminate waste in all its forms.

lines of communication

The pathways through which information travels within an organization or between the organization and external stakeholders. Lines of communication include the dissemination of information from management to employees, employees to management, employees to other employees, between different departments, and between the organization and external parties.

machine learning

ML. The process that enables a digital system to analyze data in order to build predictive models and make decisions autonomously. Machine learning is used for tasks such as predicting maintenance needs and making repair recommendations.

manufacturing execution system

MES. A software application that monitors and analyzes machine and process performance data related to processing materials and producing finished products. Manufacturing execution systems can be used to integrate performance data from multiple machines, monitor quality, and manage the execution of production tasks.

market trends

A pattern or direction that a market moves in over a period of time. Market trends generally refer to the movement of money or items tied to finances.

market uncertainty

The difficulty of forecasting future market trends. Market uncertainty can be caused by many factors, including inflation, increased interest rates, international conflicts, and emerging technologies.

market-based

A characteristic used to break down divisional organization designs based on intended customers. Market-based divisions help break down diverse customer populations and tailor their products and services to a specific group.

methodologies

A standardized framework that guides an organization in planning, executing, and delivering projects in an efficient, timely manner. All methodologies for project management involve initiating, planning, executing, monitoring and controlling, and closing projects.

minimum wage

The lowest wage permitted by law. The federal minimum wage may be lower than some state minimum wages.

mission

A statement that describes the goals of an organization. A mission statement outlines an organization's objectives and describes how it intends to meet those objectives.

monitoring

To collect and report meaningful, accurate, and timely data. Monitoring a project focuses on observing its progress.

motivation

The desire to achieve specific goals or objectives. Leaders can foster motivation with recognition, supportive work environments, and compensation.

objectives

A measurable outcome that an entire organization works towards. Objectives align with an organization’s purpose.

Occupational Safety and Health Administration

OSHA. A federal agency under the U.S. Department of Labor that ensures safe working conditions and helps employers reduce injuries, illnesses, and deaths in the workplace. The Occupational Safety and Health Administration creates regulations that ensure employees work in a safe and healthy environment.

operations research

The use of analytical methods to improve decision-making. Operations research uses data to help optimize processes.

organizational chart

A measurable outcome that an entire organization works towards. Objectives align with an organization’s purpose.

organizational design

A framework for a company or other organization that clearly structures employees around lines of communication, authority, responsibility, and accountability. Organizational design should help structure a company so that it can achieve its goals.

outsourcing

To procure products or services from an outside company. Outsourcing project tasks can help reduce the likelihood of encountering challenges.

overtime

Any hours an employee works beyond a full-time 40-hour workweek. As of 2025, overtime pay for hourly employees or salaried employees making less than $57,470.40 per year is legally required to be at least 1.5 times the regular pay rate for all hours worked over 40 per week.

Pareto charts

A bar graph used to identify the causes of problems that occur most frequently by distinguishing a problem’s major factors from its minor factors. Pareto charts support the Pareto principle, which states that for most events, approximately 80% of the effects result from 20% of the causes.

personal protective equipment

PPE. An article of clothing or wearable safeguarding device that employees use to prevent injury or to limit exposure to hazards in the workplace. Personal protective equipment includes safety glasses, gloves, face masks, and earplugs.

PM

Project management. The process of organizing, planning, developing, and monitoring all aspects of a project. PM is essential for completing projects in a timely manner while staying within the budget.

process-based designs

A type of organizational design that depicts company leaders at the top, then separates subsequent employees based on steps in a work process. Process-based designs read from left to right.

procuring

To acquire parts, materials, supplies, and services needed to manufacture products. Procuring processes involve selecting suppliers and negotiating contracts with them.

product-based

A characteristic used to break down divisional organization designs based on the products being produced. Product-based divisions create only a single type of product or a series of closely related products.

professional ethics

The code of conduct specific to a profession or industry. Professional ethics may be established by professional bodies and vary from organization to organization.

program evaluation and review technique

PERT. A kind of critical path analysis that accounts for variances in completion time for tasks. The program evaluation and review technique more accurately predicts project duration.

project management

PM. The process of organizing, planning, developing, and monitoring all aspects of a project. Project management is essential for completing projects in a timely manner while staying within the budget.

project planning

All of the managerial activities necessary to begin a project. Project planning includes defining individual tasks and creating an organizational structure.

qualitative

Describing a characteristic. Qualitative data is subjective information that usually cannot be measured in numbers.

quality management system

QMS. A company's collection of objectives and processes that ensure excellence and customer satisfaction. A quality management system consists of written documents that reflect the ISO 9001:2015 standard.

quantitative

Measuring an amount or number. Quantitative data typically includes anything that can be counted or measured numerically.

raw materials

An unprocessed or lightly processed object or substance used to make a finished part. Raw materials in manufacturing include metal, plastic, and ceramic.

retaliation

The act of an employer firing an employee or taking any other type of adverse action against an employee for engaging in protected activity. Retaliation against members of a union or those seeking to unionize is illegal.

risk mitigation strategies

Any plan put in place to reduce the likelihood of or respond to obstacles impeding a project. Risk mitigation strategies include avoiding, reducing, transferring, and accepting risks.

risks

A condition or situation that can lead an organization to lose profits or fail. Risks include controllable challenges like changes in business strategy and financial management and uncontrollable challenges like changes in the economy or new technologies.

scope

The range of tasks required for a project to achieve its outcomes. The scope of a project acts as a roadmap for which tasks should be included and excluded to ensure project completion.

Scrum

An agile project management framework that involves observing, participating in, and examining multiple short production cycles called sprints to identify areas of a process that can be improved. Scrum is often used with agile project management.

sensors

A device that detects a change in a physical stimulus and turns it into a signal that can be measured or recorded. Sensors may be connected to a machine or system in order to collect operational data that is later analyzed.

silos

A system or process closed off from the larger group to which it belongs. Silos hinder work by preventing information from reaching other parts of the production lifecycle.

situational analysis

An evaluation of the internal and external operations of an organization. Situation analysis is also known as an environmental scan.

Six Sigma

A management philosophy and process improvement method that uses data to identify problems and point to improvements. Six Sigma’s goal is to reduce the number of defects to less than 3.4 per million opportunities, which is near perfection.

smart manufacturing

Technologically integrated manufacturing that creates and uses data in real time to address the needs of the factory, supplier, and customer. Smart manufacturing is an advancement of traditional manufacturing automation.

social capital

The value earned by an individual or organization through relationships and social networks. Strong social capital builds trust and respect between individuals and organizations.

sprints

A short project time period utilized in the Scrum framework. Sprints typically last one to three weeks.

stakeholders

Any person or group that has an interest in an organization. A manufacturer’s stakeholders include employees, investors, suppliers, and customers.

standards

An established policy regarding a particular practice or method. Standards within the ISO 9000 family are concerned with establishing and managing quality systems.

status reports

A document that summarizes the current state of a project. Status reports provide information about task progress and potential problems.

strategic planning

A form of long-term planning for achieving an organization’s objectives. Strategic plans typically cover three to five years but may look as far ahead as twenty years.

strike

A refusal to work as a form of protest. Strikes are often performed in an attempt to negotiate pay and work conditions.

subfield

A small, specialized area within a larger field of knowledge. Machine learning is a subfield of artificial intelligence.

suppliers

An organization that provides materials or parts to manufacturing companies. Suppliers pass products on to the manufacturer, where they are processed and then delivered to the customer.

supply chain

A network of companies that exchange resources, such as materials and information, to deliver products to customers. Supply chains consist of a company, its suppliers, its distributors, and its customers.

transparency

The visibility of all parts of a project to those involved. Transparency in Scrum project management enables inspection.

turnover

The rate at which employees leave an organization and are replaced. Turnover occurs for many reasons, including poor pay, lack of career growth opportunities, poor management, and burnout.

union

A group that employees form in order to protect their positions and rights in the workplace. Unions often promote employee safety and negotiate for a range of workplace benefits.

value

A real or perceived quality that satisfies the needs and wants of a customer. Value includes the features of a product, as well as other qualities associated with the product.

values

An organization’s core beliefs. Values define what is important to the organization.

variances

The longest-duration path along the critical path network diagram. Tasks on the critical path cannot be delayed without impacting the timeline of the entire project.

vision

An ideal or a goal that a leader helps people to achieve. Vision is based on the desired outcomes of an organization.

waste

Any element of the manufacturing process that does not add value to a product. The goal of lean manufacturing is to eliminate waste.

waterfall

A project management framework that organizes tasks in the order they must be completed. Waterfall project management is useful for projects with clear requirements and goals.

whistleblowing

The act of reporting suspected wrongdoings, such as risk for danger. Whistleblowing brings quick, public attention to problems in the hope that prompt action will be taken to resolve the issues.

work breakdown structures

WBSs. A hierarchical chart listing all the tasks necessary for successful completion of a project. Work breakdown structures are often used alongside Gantt charts.

workflows

The series of activities that are necessary to complete a task. Workflows include the sequence of industrial, administrative, or other processes through which a product or work task passes from initiation to completion.