Ejector pin A pin that pushes a part out of a mold. After the mold opens, the pins are actuated to push the part out and then are returned back inside the mold. The pins are usually only applied to the inside surface of a part as they typically leave a small mark on the surface which would not meet aesthetic requirements.

Electromagnetic field (EMF) A field of energy waves that emanate from all products that use electricity. Strong EMF is considered to be a health risk.

to people and can cause electromagnetic interference with other electronic equipment.

Electromagnetic field (EMF) shielding Ensures that electromagnetic fields at harmful frequencies do not escape from a product and/or impact delicate electronics.

Electromagnetic interference (EMI) Some products are sensitive to electromagnetic fields. EMI can be an issue for people with pacemakers who are often advised to avoid strong EMF fields generated by products such as airport scanners.

Electrostatic discharges (ESD) Shocks from static or other devices that can negatively impact electronics.

End cap The display case at the end of an aisle in a retail location. End caps are used to display product that is being promoted.

End-of-life When a product (or product line) is discontinued, companies need to ensure they have sufficient spares and parts to support the previously made products through the expected life of the product.

Engineering verification testing (EVT) The pilot phase that uses a mix of production-intent, low-volume prototype parts. Builds are based on the final product CAD and specifications and are very close to the final massproduction products, varying only in the manufacturing process used.

Enterprise data management Methods to track and manage all of the materials, documents, and data required to define and produce a product.

Enterprise resource planning (ERP) Systems used to manage resources and resources flow within a company. Many ERP systems have an MRP system as a module within them.

Ex-factory The time when product ownership is passed from the factory to the customer.

Extended warranty A warranty contract purchased by the customer that extends the product warranty beyond the standard expiration date.

Factoring Instead of having to wait for a customer’s payment (which can be as long as 120 days), credit institutions will pay you the amount your customers owe you and take a small percentage of the invoice as payment.

Failure modes and effects analysis (FMEA) A systematic way to identify risks in design and production and prioritize them.

Federal Communications Commission (FCC) The agency in charge of regulating the electromagnetic emissions of products with electronics.

Finish Surface treatment on visible and assembly surfaces of the part. Finishes can be used to meet aesthetic requirements, cover up defects, or change material properties

Finished goods The finished products (including packaging) that have been fully assembled but not yet distributed.

Firmware Computer code that communicates between the prod-

uct software and the individual component on the board. It is typically stored in ROM.

First article inspection (FAI) See First part inspection.

First part inspection (FPI) Approval of the first part (typically a fabricated part or custom part). This part is subjected to detailed dimensional measurements to ensure that it completely conforms to the drawings.

First-pass yield The percentage of parts that pass all inspections without fail. The yield is calculated by multiplying the yield rate of each step in the process. For example, if there are five steps in a process and each has a 99% yield rate, the first-pass yield would be 95%.

First shots First parts off a new tool. New tooling is rarely ready for mass production, and first shots are used to fine-tune the tooling. Fixtures Pieces of equipment that hold parts to enable and facilitate assembly.

Flash Excess material that squeezes out between the two halves of a tool or mold.

Flex circuits Electronics assembled on a flexible substrate. This method allows for much thinner geometries and for electronics to be routed through complex spaces.

Flexible fixtures Fixtures that can be used on multiple projects or parts, or that can be easily reconfigured for different usages.

Forecasting Predicting the number of units that will be purchased or need to be produced to meet demand.

Foreign objects and debris (FOD) Unwanted material on and in a product. It can include everything from dirt to loose bolts to insects.

Free on board (FOB) FOB means that the product is owned by the organization purchasing the materials and that they are liable for any damage after the material is designated FOB.

Freight forwarders Intermediaries who coordinate shipment from the factory to its destination. They may coordinate between multiple modes of transport; for example, moving a product from the airport onto a truck for shipment.

Gate An opening in the mold that allows molten material to flow between the injection point and the cavity that forms the part. The gates need to be placed in areas on the part where they can’t be seen as the gates are typically cut or broken off and leave a defect on the surface.

Gauge A tool used to measure a part.

Gauge repeatability and reliability (Gauge R&R) Standard method that quantifies the inherent variation in a measurement system.

Generic parts Commodities or custom parts that are described generally, but to which a specific manufacturer part number is not given. This gives the procurement team the ability to order material from alternative suppliers to reduce costs.

Geometric dimensioning and tolerancing (GD&T) Systematic method for defining engineering tolerances.

Gerbers CAD files used to define the printed circuit board assemblies.

Gift box This is the packaging that the customer purchases, including the product, accessories, and manuals.

Glass-filled Glass fibers are mixed into polymers to increase strength and stiffness of parts such as injection molded parts.

Golden samples Samples that are signed off as the standards for approving product.

Hard tooling Tooling that is produced with harder and more durable materials (typically hardened steel instead of aluminum). These tools take longer to produce and modify than do soft tooling, but they are more durable and last longer.

Highly accelerated life testing/highly accelerated stress testing (HALT/ HASS testing) Accelerated testing of products designed to rapidly identify weaknesses and quality problems.

IMEI number A unique number (globally) that identifies a cell phone.

Industrial design (ID) National Association of Schools of Art and Design describes industrial design as the process to “create and develop concepts and specifications that optimize the function, value, and aesthetics of products, environments, systems, and services for the benefit of user, industry, and society. Industrial design involves combinations of the visual arts disciplines, sciences, and technology, and requires problem-solving and communication skills” [142].

Ingress protection (IP) Standard for defining the resistance of a product to dust and water.

Inner packs Smaller (typically cardboard) boxes packaged within the master cartons in which a small number of gift boxes of the same SKU are packaged. These are used to protect gift boxes and can also be used as shipping packaging for order fulfillment when the master carton is opened.

Inserts (packaging) Includes foam, thermoformed trays, cardboard inserts, platforms, and dividers. The term “inserts” can also be used to describe additional materials that are included in packaging to provide the customer with additional information or value.

Integrated circuit testing (ICT) Also called a “bed of nails” test, used to test the connections in and function of a PCBA.

International Traffic in Arms Regulations (ITAR) Export regulations imposed in the US on some technologies that may have military applications.

ISTA-2A A typical standard for shipment testing used in many companies and governed by the International Safe Transit Association. The standard is used for products weighing 150 lb (68 kg) or less.

Jig Structure used to hold parts while guiding tools to create features.

Job shop Facility that contains a collection of various manufacturing processes that are used to make a wide variety of products in low volumes.

Landed cost The total cost to get an individual product to the customer. Includes COGS as well as customs and shipping costs.

Last-mile The distribution process required to get the product from the in-country distribution center into the hands of the customer.

Launch Entry of a product into the market. It involves ensuring that marketing and distribution are ready at the same time as a product becomes available for sale.

Lead time Time between putting an order in for certain parts and the time those parts arrive. Lead time can range from days to months depending on the part, the supplier, and the demand for the product being purchased.

Less than truckload (LTL) A shipment that does not completely fill a single truck or a container used for sea, road, or rail transport. LTL shipments might be combined with other customers’ products to fill a shipping container.

Life testing Testing that evaluates whether the product can perform correctly over its expected life. The product is tested using repeated loads and stresses and analyzed for degradation in performance.

Life-cycle cost See: Total cost of ownership.

MAC ID The unique identifier given to each communication device (e.g., Wi-Fi, Bluetooth, etc.).

Make vs. buy Decisions made by an organization to produce in-house or to outsource. Can be applied to parts or services.

Manufacturer’s suggested retail price (MSRP) The cost the company recommends that the product be sold for by its distributors. Depending on the contract with the distributor, the actual cost to the customer may be different.

Manufacturing execution system (MES) Tracks where the parts are on the factory floor in real time. MESs are typically used for more sophisticated or complicated processes where it is critical to track the real-time status of important materials and partially assembled product.

Manufacturing readiness level (MRL) Used to assess the maturity of manufacturing processes and how close the process is to being commercially viable.

Markup The percentage a supplier adds to the cost of purchased material to cover overhead, fixed costs, and profit.

Mass production (MP) Stage at which the product is being produced at full rates.

Master carton Usually a cardboard box used to pack multiple inner packs and/or gift boxes. It is the primary packaging used to stack on pallets and ship over long distances. A master carton can contain multiple SKUs.

Master Service Agreement (MSA) The contract reached between a supplier (typically a CM) and its customer. The MSA defines all of the terms and conditions that govern all future transactions.

Material authorization (MA) Pre-purchases materials ahead of a PO. MAs are usually made for parts/materials with long lead times.

Material resource planning (MRP) Controls when orders are released to the factory to ensure that products are produced to meet purchase orders from customers.

Mechanicals Mechanical parts in a product, as opposed to the electronics or the software.

Metrology Set of methods and tools used to measure dimensions, weights, forces, etc. It is the “science of measurement.”

Minimum order quantity (MOQ) The minimum number of units that have to be ordered to get a quoted cost. The per-unit cost of the parts typically goes up with smaller MOQs.

Mixed-model production Production lines that run multiple SKUs intermixed on the same production line.

Model-based definition All design and build information attached to the 3D CAD model to minimize the need for 2D drawings.

Net payments The agreed-upon time-frame for how much time you are given to pay the supplier from the time the part/product is delivered. For example, net 30 days means you need to pay the invoice within 30 days from delivery.

Non-disclosure agreement (NDA) A legal document that identifies what information, data, CAD, etc., can and cannot be released by both parties signing the document.

Non-recurring engineering (NRE) expenses Expenses that are incurred during design and product realization. NRE expenses typically include the engineering- and manufacturing-related costs (as opposed to marketing).

Ongoing production testing (OPT) Life testing and durability testing that is performed throughout the production life of the product. It is used to ensure that no change in the processes will result in quality failures.

Open book quote A quote from a supplier that provides a detailed breakdown on part costs and overhead costs, as opposed to a closed-book quote which only gives you the total price and no details.

Opening a tool Re-cutting or altering a tool to make changes to the geometry of the part.

Order fulfillment The process of going from receiving a customer order to getting the product into the hands of the customer. In logistics and distribution it is the “last-mile” of the process.

Original design manufacturer (ODM) A contract manufacturer who takes responsibility for both the design and manufacturing of a product.

Original equipment manufacturer (OEM) A contract manufacturer who produces what the product design team designs.

Outsource To hire an outside firm to perform a service or to purchase a part/product from another firm.

Packaging All of the materials required to store, ship, and sell a product.

Pallet A standard-sized structure used to group multiple master cartons. It is typically designed to be lifted with a forklift.

Pantone The company that sets the standards for uniquely defining colors.

Part envelope Overall size and geometry of a part or system. Typically given as an overall height, width, and length of the part.

Pattern An object that is replicated by casting.

Persona Description of a typical consumer/customer as if they were a real person. It includes demographics, motivations, and behavior.

Pick-and-pack A typically manual (more pick-and-pack facilities are being automated) process that collects multiple components into a single shipment or package.

Pilot lines Assembly or production lines used exclusively for pilot runs to facilitate learning without disturbing existing production.

Pilot process Short production run used to find problems in the product design and its manufacturing process.

Point of purchase (PoP) displays Packaging that is used to display a product in a retail location, often placed at the end of an aisle.

Poke-a-yoke The Japanese term for error-proofing an assembly or manufacturing process.

Post-processing Processes applied to a part after a primary process (e.g., injection molding). It can include heat treatments, finishing, and machining.

Potting Manufacturing process that fills an electronic assembly with a solid or gel. Potting is used to reduce the negative effects of vibration and humidity.

Preventative maintenance (PM) Maintenance done ahead of equipment failures, such as regular cleaning or changing out critical components that are likely to fail.

Printed circuit board, and printed circuit board assembly (PCB and PCBA) A PCB is a board that supports the integrated circuits and electronic modules. It both holds the components as well as connects them electronically. A PCBA is the combination of the board and the components, which have been assembled by soldering the components onto the PCB.

Procurement team Group tasked with identifying suppliers and purchasing parts and subsystems.

Product data management (PDM) Systems used to manage critical documents, their versions, and the process for updating them. They are essentially glorified filing systems.

Product lifecycle management (PLM) Software systems that manage documents related to the product development processes and the processes around them. PLM systems have embedded product data management systems within them. They ensure that the right people are informed and that the documents are signed off in the correct way.

Production-intent parts Parts that are built on equipment and tooling that are representative of the final production equipment.

Production verification testing (PVT) The product realization pilot phase in which bugs in production are worked out. The final production line equipment and workers are used, but production is at a low enough volume to catch problems and implement corrective action.

Project manager Person responsible for the planning and execution of a particular project and the management of the day-to-day tasks required to complete it.

Prototype process A process used to simulate the final production process, but usually used to make small numbers of product.

Prototype product A sample product that represents the function (workslike) and/or aesthetics and user interface (looks-like) of the final product. It is typically made using processes that are not used in mass production.

Purchase order (PO) Document used to purchase a product or service or to place an order for materials to be delivered later. A PO is considered a binding contract.

Qualification Ensures a manufacturing process can conform consistently to documented specifications. In some cases (e.g., the FDA), process qualifications are legally required.

Quick-start guide Shortened version of a product manual. It is required when filing for FCC certifications in the US.

Radio frequency identification (RFID) tags Tags that can be read by scanners using radio frequency scanning. These allow for tracking of packages without line-of-sight to the label as well as preventing shrink (theft).

Ramp The process of increasing production volumes and reducing cycle times to bring the initial production rate up to mass production rates.

Rapid prototyping Range of production methods that can be used to make sample products quickly. The methods include techniques like urethane casting, additive manufacturing, and CNC machining.

RASCI (responsible, accountable, supporting, consulted, and informed) A method for documenting roles and responsibilities.

Rate The number of units that can be produced in a set time.

Reliability How well and consistently a product performs over time.

Request for quote (RFQ) A formal invitation for a supplier to provide a quote and payment terms for a product or service. The RFQ typically provides significant details about the product so an accurate quote can be done.

Re-spin Jargon used to describe redesigning a board to accommodate a component change. Re-spin requires changes to both the board design and component selection.

Return material authorization (RMA) Approval to return material to a supplier because of a quality issue.

Reverse logistics The distribution methods used to get failed or returned products back to the manufacturer and then get repaired or replacement products back to the customer.

Rib A thin wall added to parts to improve stiffness and prevent warping.

Robustness How well a product performs when manufacturing and operation variations are present.

RoHS European regulation that restricts the use of hazardous materials in products (e.g., lead).

Roles and responsibilities Responsibilities are the tasks and deliverables that a person or group is assigned. Individuals and groups are assigned to roles that are responsible for various tasks, deliverables, and contributions to the teams. In small teams a single person may have multiple roles, whereas, in larger companies, entire groups are assigned to roles. Root cause analysis (RCA) Systematic method for identifying the underlying cause of a given problem.

Safety stock An amount of inventory held to account for variability in demand, lead time, and scrap.

Samples Products built for non-commercial use including marketing, testing, and certification.

Scrap Material that has to be disposed of (and hopefully recycled). This term can apply to offcuts (material that is cut off the stock when making a part) as well as complete products.

Second-sourcing Identifying a second source in addition to your primary supplier for components. This can be done to reduce risk, create competition, or grow capacity ahead of additional product launches.

Semi-custom parts Parts that are designed specifically for a product but are versions or modifications of a standard design.

Serial number (SN) A unique number assigned to each product sold.

Setup The process of getting a production batch run started. This can include tool installation, material loading, and warm-up cycles.

Shenzhen electronics markets Approximately 12 separate markets in the Shenzhen region of China that sell a wide variety of electronic systems and components.

Shipment audits An inspection and quality check done after final packaging but before the product is designated FOB or ex-works. The products are inspected for functional and aesthetic failures. If the rate of failure is higher than the negotiated AQL rate, the shipment is rejected and needs to be 100% inspected.

Shot In injection molding, a single cycle of the injection molding tool.

Sink marks Surface defects in injection-molded parts that develop where there is insufficient support and the material deforms while cooling. Sleeve The wrap that goes around a generic gift box. It is used to inhibit theft and allows for easy changes to the packaging information.

Soft tooling Tooling that mimics final production tooling but is made with less expensive materials using faster machining processes. These tools do not last as long as hard tools.

Soft-touch paint Durometer coating than makes a surface feel like rubber, suede, or leather. Typically has a matte finish.

Software as a service (SaaS) A method for delivering software on a license or subscription basis. The software is hosted in the cloud (i.e., no local copies).

Source (v.) Find an acceptable vendor or supplier for a part.

Spot market A market for components that can be purchased directly with no lead time.

Sprue A channel that is used to bring molten material to the cavity. It is removed after molding using a hot knife or it is mechanically broken off.

Standard operating procedures (SOPs) Documented processes followed by the manufacturer to ensure that every product is made correctly using the same manufacturing processes.

Statistical process control (SPC) Statistical methods to track the quality of a product or its process characteristics.

Steel-safe Mode of cutting a tool. The cavity is cut such that the part will be undersized. As the team learns where added material on the part is needed, material is removed from the tool. This reduces the risk of overcutting the tool and having to add material (which always results in a poor surface finish).

Stencil A mask used in the fabrication of a PCBA. It is used to apply the solder paste to the PCB and is unique to each part number.

Stock-keeping unit (SKU) Unique product identifier for a specific product configuration. A single product may have multiple SKUs that denote different colors, versions, configurations, and countries of sale.

Storyboarding Documenting the story of how your product will be used in various scenarios.

Supply chain tier Refers to the place of a given supplier in the supply chain. Tier 1 suppliers include contract manufacturers. Tier 2 typically supplies tier 1, and so on.

Supporting engineering The team of engineers whose responsibility it is to make design changes in existing products.

Surface mount technology (SMT) Method for soldering electronic components directly onto a surface of a PCB (as opposed to through- hole).

Target cost The cost that the design team is aiming for to ensure sufficient profit margins. The total cost target for the product can be rolled down to create target costs for individual subsystems and components.

Technology Readiness Level Standard framework used to qualitatively assess how close a technology is to commercialization.

Third-party logistics (3PL) An outside company hired to manage logistics, supply chain, and order fulfillment.

Through-hole Older method (than SMT) for assembling components on a PCB. The leads are inserted through holes and soldered on the back.

Tier 1/2/3 contract manufacturer/suppliers Tier 1 CMs refer to the larger, well-known CMs such as Foxconn. Tier 3s are small local businesses.

Tooling Specialized pieces of hardware – such as dies, fixtures, molds, patterns, and stencils – that are designed and built to be used for a specific product.

Total cost of ownership (also called life-cycle costs) This is the cost to your customer to buy the product, consumables, training, maintenance, repair, etc. Depending on the design and manufacturing decisions, the design team can dramatically reduce the life-cycle cost and increase the appeal of the product.

Tote A container used to safely move material between stations in a factory.

Trace width Distance between traces in a PCBA. The smaller the trace width, the higher the component density, but the harder the board is to manufacture.

Traveler (also called a work-order traveler) Paper or electronic record that tracks the status of a part, subsystem, or batch.

Ultraviolet resistance UV rays from the sun or other light sources can change the chemical properties, color, or material properties of a product. Some materials are more sensitive to UV than others. UV resistance is the ability for materials to not be chemically altered in a significant way.

Unboxing experience The experience of the customer from purchase through unpacking and then through first use of the product.

Underwriters Laboratory (UL) Testing body that certifies products for electrical safety.

Uptime The percentage of time manufacturing equipment is available for production.

Urethane casting A method for making a mold of silicone from a pattern and then using a thermoset material to fill the mold. This can be used in low-volume production as a stand-in for injection molding.

Validation The process of checking whether the product specifications are aligned with customer needs.

Verification The process of checking whether a product meets the specifications defined in the specification document.

Via Connection between layers in a printed circuit board (PCB).

Wall wart The electrical plug that goes into the wall. Typically, wall warts are rated based on amperage and voltage output and can be used in both 110 and 220 V wall sockets.

Warranty The legal guarantee of product’s performance and safety. A typical warranty expires after one year of usage (in the US), unless an extended warranty is purchased.

Warranty accrual rate Amount of cash set aside against warranty claims divided by the total revenue for the same period.

Warranty liability account Account for which a portion of revenue is held to cover potential warranty liability costs.

White goods Large electrical goods such as washers or dryers.

Wholly Foreign-Owned Enterprise (WFOE) A financial setup that allows US-based companies to pay salaries in a foreign country. WFOE is typically used in China.

Wire bonding A method of attaching a chip or module to a PCB using fine wires.

Wire harness Cables and wires that are pre-bundled and assembled with connectors prior to installation into a product.

Work in progress (WIP) The inventory of not-yet-finished products on the factory floor.

Yield The percentage of products or parts that successfully pass all inspections.