Manufacturing Glossary

Operations • Module glossary

Manufacturing Glossary

This glossary explains common words and fields you’ll see when using Manufacturing in XFatora.

  • Written for general business users (not developers).
  • Includes simple explanations, realistic examples, and field-level descriptions.

Also known as: Manufacturing Management

Terms (A–Z)


Backflush

What it is: Backflushing automatically records material consumption when finished goods are produced.

When you use it: Use it when production is repetitive and material usage is stable, to reduce manual steps.

Example: When you complete 100 units, the system automatically consumes the BOM materials.

Common fields (and what they mean):

  • Trigger: Completion of production.
  • Consumption Rules: BOM-based standard usage.

Related terms: Material Consumption, BOM


Bill of Materials (BOM)

What it is: A BOM is the list of components and quantities needed to produce a finished product.

When you use it: Use BOMs to plan purchasing, track costs, and ensure consistent production.

Example: To produce 1 table, BOM includes wood panels, screws, paint, and packaging.

Common fields (and what they mean):

  • Finished Product: What you are making.
  • Components: Materials/parts required.
  • Quantities: How much of each component.
  • Version (optional): BOM version for changes over time.

Related terms: Manufacturing Order, Material Consumption, Costing


By-product

What it is: A by-product is a secondary output created during production that may be usable or sellable.

When you use it: Use by-product tracking to capture additional value and improve costing accuracy.

Example: A manufacturing process generates reusable scrap material as a by-product.

Common fields (and what they mean):

  • By-product Name: Secondary output.
  • Quantity: Amount produced.
  • Value (optional): Estimated value.

Related terms: Costing, Inventory


Capacity Planning

What it is: Capacity planning is ensuring you have enough labor and machine time to meet production demand.

When you use it: Use it to avoid bottlenecks and missed delivery dates.

Example: You adjust shifts because demand exceeds normal capacity this week.

Common fields (and what they mean):

  • Available Capacity: Total hours/machine time.
  • Required Capacity: Hours needed for orders.
  • Constraints: Machines, labor, materials.

Related terms: Work Center, Production Schedule


Finished Goods

What it is: Finished goods are completed products ready for sale or delivery.

When you use it: Use finished goods status to ensure only approved products enter inventory for shipping.

Example: After inspection, finished units are moved from WIP to Finished Goods inventory.

Common fields (and what they mean):

  • Product: Finished item.
  • Quantity: Ready quantity.
  • Warehouse: Where stored.

Related terms: Inventory, Logistics


Manufacturing KPIs

What it is: Manufacturing KPIs are metrics like yield, scrap rate, cycle time, and on-time completion.

When you use it: Use KPIs to improve efficiency and product quality over time.

Example: Scrap rate drops after new quality checks are introduced.

Common fields (and what they mean):

  • Scrap Rate: Scrap ÷ total produced.
  • On-Time Completion: Orders completed on schedule.
  • Cycle Time: Time from start to finish.

Related terms: Goals Tracker, Reporting


Manufacturing Order

What it is: A manufacturing order is the instruction to produce a specific quantity of a product.

When you use it: Use it to plan work, reserve materials, and track progress from start to finish.

Example: You create an order to produce 500 units for next week’s shipment.

Common fields (and what they mean):

  • Product: What to produce.
  • Quantity: How many units.
  • Planned Start/End: Schedule dates.
  • Status: Planned, in progress, completed.

Related terms: Work Order, Work-in-Progress (WIP), BOM


Material Consumption

What it is: Material consumption is recording how much material was actually used in production.

When you use it: Use it to track real costs and identify waste or process issues.

Example: Production used 2% more material than planned due to scrap.

Common fields (and what they mean):

  • Planned Quantity: From BOM.
  • Actual Quantity: What was used.
  • Variance: Difference and reason.

Related terms: BOM, Scrap, Costing


Material Reservation

What it is: Material reservation sets aside raw materials for a manufacturing order so they aren’t used elsewhere.

When you use it: Use it to ensure production won’t stop due to missing materials.

Example: You reserve 100kg of steel for a scheduled production run.

Common fields (and what they mean):

  • Material: Which component.
  • Reserved Quantity: How much reserved.
  • Order Reference: Which manufacturing order.

Related terms: Inventory, Reserved Stock


Production Costing

What it is: Production costing tracks the total cost to manufacture an item: materials, labor, overhead, and scrap.

When you use it: Use it to price products correctly and improve margins.

Example: You calculate real cost per unit and adjust pricing for profitability.

Common fields (and what they mean):

  • Material Cost: Cost of consumed components.
  • Labor Cost: Time × labor rate.
  • Overhead: Factory overhead allocation.
  • Cost per Unit: Total ÷ produced quantity.

Related terms: Core Accounting, Profit & Loss (P&L)


Production Schedule

What it is: A production schedule plans what will be produced and when.

When you use it: Use scheduling to meet delivery deadlines and avoid overloading resources.

Example: You schedule high-demand products earlier in the month based on forecast.

Common fields (and what they mean):

  • Start/End Dates: Planned timing.
  • Priority: Which orders are most urgent.
  • Capacity: Available resources.

Related terms: Capacity Planning, Workload Planner


Quality Check

What it is: A quality check is an inspection step to confirm products meet required standards.

When you use it: Use it to reduce returns, warranty claims, and customer complaints.

Example: A final inspection checks dimensions and finish before packaging.

Common fields (and what they mean):

  • Checklist: What to inspect.
  • Result: Pass/Fail.
  • Inspector: Who performed it.
  • Notes: Issues found and actions taken.

Related terms: Warranty Center, Scrap


Routing

What it is: Routing is the defined sequence of operations needed to manufacture a product.

When you use it: Use routing to standardize production and estimate capacity and lead times.

Example: Routing for a metal part: cutting → welding → polishing → inspection.

Common fields (and what they mean):

  • Steps: Operations in order.
  • Work Centers: Where each step happens.
  • Standard Times: Expected time per step.

Related terms: Work Center, Capacity Planning


Scrap

What it is: Scrap is unusable material or rejected items produced during manufacturing.

When you use it: Use scrap tracking to improve quality and reduce costs.

Example: You record 10 rejected units due to a machining defect.

Common fields (and what they mean):

  • Scrap Quantity: How much was scrapped.
  • Reason: Defect, damage, setup issue.
  • Cost Impact (optional): Estimated cost of scrap.

Related terms: Quality Check, Material Consumption


Work Center

What it is: A work center is a production area or machine group where work is performed.

When you use it: Use work centers to plan capacity, assign work, and measure efficiency.

Example: Assembly Line 1 is a work center with defined daily capacity.

Common fields (and what they mean):

  • Name: Work center label.
  • Capacity: How much it can produce per day/shift.
  • Cost Rate (optional): Cost per hour for costing.

Related terms: Routing, Capacity Planning


Work Order

What it is: A work order breaks production into actionable steps for teams or work centers.

When you use it: Use work orders to coordinate tasks, labor, and machine time.

Example: Work order step: cutting → assembly → painting → packaging.

Common fields (and what they mean):

  • Operation: The production step.
  • Work Center: Where the operation happens.
  • Estimated Time: Expected duration.
  • Assigned Team: Who performs the work.

Related terms: Routing, Work Center


Work-in-Progress (WIP)

What it is: WIP is inventory that is currently being manufactured but not yet finished.

When you use it: Use WIP tracking to see what’s in production and to avoid losing partially completed work.

Example: You see 300 units in WIP waiting for quality inspection.

Common fields (and what they mean):

  • Stage: Current production stage.
  • Quantity: Units in progress.
  • Value (optional): Cost accumulated so far.

Related terms: Manufacturing Order, Inventory, Costing