Definitions

Assembly – The act of assembling a final component from various sub-components, weldments and purchased third-party components.

BTP – Build to Print. Where a manufacturer provides a detailed blueprint or drawing. The contract manufacturer then builds according to the print.

BTS – Build to Suit. Where a manufacturer provides a blueprint or drawing and the contract manufacturer builds according to best practices using components to get close to the concept.

BOM Bill of Materials, A detailed list of subcomponents that make up a machine, a weldment or sub assembly.

Concurrent Engineering also known as simultaneous engineering, a method of working with a customer to solve build challenges and risk together with the customer, vendors and outside suppliers.

Contract Manufacturing – When one company performs manufacturing activities for another company, over a certain term for a certain number of parts for a fixed price, usually per item.

Commercialization – When a company or entity takes a part, component or an idea to market to sell and make a profit.

CO2 – Carbon Dioxide is a common laser cutting power source for steel or other substrates.

CM – An acronym for Contract Manufacturer or outside manufacturing company.

CNC – A standard machine that cuts metal using Computer Numatic Control language, a method of programming.

Collaboration – A method of working together with an outsourced fabricator which involves various stakeholders, suppliers, product engineers and project management.

Contract Assembly – Assembly of components on a short term or a contract basis.

ECO – Engineering Change Order is a method of approving changes to a previously approved contract to facilitate improvements in quality, appearance or to control costs.

Electromechanical Assembly – A machine or system that involves electrical, wiring, control systems, robotics and/or electrical actuators.

Engineering Study – Usually a paid program to determine the efficacy of an outsourced build of a machine, system, or sub-assembly. An engineering study reduces risk for both the builder and the customer.

Fabrication – The act of constructing a final component using standard or customized sub components. In metalworking a fabrication may be cut and bent metal or welded.

Fabrication Manufacturer – The act of manufacturing steel or aluminum components together to create a value add component.

Inventory Management – Oversight of raw parts, work in process and finished goods to fulfill a contract.

Laser Cutting – A machine that cuts metal using a highly focused light such as a YAG (Yttrium Aluminum Garnet) laser to cut sheet metal into precise parts for further processing.

Outsourced Manufacturing – The act of contracting a third-party manufacturer to build, finish or assist in manufacturing your (or your customer’s) end product.

OEM – Original Equipment Manufacturer is the brand that owns the manufacturing rights to the equipment. Typically they own the drawings and likely have been the manufacturer of the equipment for a long time.

Regulatory Compliance – The act of satisfying legal, quality, safety and industry manufacturing and delivery rules and regulations.

Press Brake – A press brake is a machine used to bend sheet metal for complex fabrications. The machines are long, usually loaded manually and parts are rotated to complete complex bends. The machine can be loaded by a robot or a human, as well to place raw components between the punch mechanism and stationary die.

Private Labeling – The act of manufacturing a product for another company or entity, is private labeling. Consumers or end customers are usually unaware of the private label company or contract manufacturer.

Prototype – An initial test product provided by an outsourced manufacturer. A prototype manufactured item is used for testing and validation by the OEM.

Proof of Principle – Often called a POP, it is an engineering study that is designed to reduce risk in manufacturing or in our case, outsourced manufacturing.

Quality Assurance (QA) – The act of measuring, testing and maintaining quality levels for products and services.

Repetitive Equipment Manufacturing (REM) – The act of manufacturing and replicating electro-mechanical assemblies or machines for customers on a contract manufacturing basis.

Supply Chain – In manufacturing, controlling physical goods, work-in-progress, inventory and logistics including suppliers, delivery and part inventories.

Metal Fabricator – A company that purchases metal then adds value by cutting, stamping, grinding and welding parts to make a finished part or assembly.

Waterjet Cutting – A machine that uses high pressure water and a medium such as garnet to cut (usually) metal plates to a precise measurement or pattern.

Welding – A process where two parts are fused together by means of heat and pressure.

Weldment – A sub-component or a final part that has a high degree of welding as the value-add.

Have we forgotten any terms for outsourced manufacturing or for a contract manufacturing company? Let us know at [email protected]