Business and Industry Terminology

Important terms for processes and methodology commonly known in the areas of business and industrial operations.

   A B C D E F G H I J K L M

   N O P Q R S T U V W Y Z

Navigate by using letters.




Activity-Based Management (ABM) – an approach to the comprehensive assessment of business operations and performance. A methodology that uses the practice of extended analysis to identify space for improvement in strategic areas of an organization’s operations. ABM makes a significant contribution to integrity and the decision-making process.

Advanced Planning and Scheduling (APS) – part of the production management process associated associated with the accurate allocation of raw materials to fulfill production demands. APS is dedicated to manufacturers that require extensive production planning. The multivariate nature of production demand defined by a large number of different products is difficult to manage without detailed planning. APS is a solution that helps reduce production costs in a highly dynamic manufacturing environment.  

Advanced Process Control (APC) – advanced implementation for basic process control. Process control supports various areas in industrial facilities in the area of operation. ACP implements control through the use of extensive resources of technology solutions and management methodologies. It helps cover automation requirements and pursue improvement of capabilities for economic benefits. 

Advanced Product Quality Plan (APQP) – is a structure and procedures for techniques used in product development in industry. APQP is mainly dedicated to the automotive industry, but also covers other industries that require high quality in the assembly and product development process. The main goal is to link the various areas of production to produce a product that meets customer needs. 



Business Intelligence (BI) – a modern approach used by companies for detailed assessment and comprehensive analysis. Collection of business data to manage information and achieve development goals. Business intelligence focuses on holistic studies of technologies, internal processes, business operations. Business intelligence uses various techniques and strategies (data analysis, dashboards, extended reporting, data mining, etc.) to better understand processes and obtain reliable business forecasts.

Business Process Improvement (BPI) – part of management strategy related to continuous process improvement. BPR is mainly dedicated to enabling hidden business values, as well as evaluating existing processes for development and improvement. The process supports organizations, enterprises to find more sufficient ways to manage customer service, reduce costs etc. The main goal of BPR is to help establish a competitive business in existing markets.


Business Planning and Control System (BPCS) – software related product developed within Enterprise Resource Planning (ERP). Applications developed within BPCS support various areas of logistics operations, production, finance, distribution, planning and supply chain management. Similar solutions, but more flexible, are also able to obtain from the Low-Code platform, which allows its users to extend the capabilities of the ERP system. The Low-Code platform is an affordable solution for companies that need fast digital support for their operations. 

Business process management (BPM) – an area of activity in which employees use various methods to discover, model, analyze, measure, improve, optimize and automate business processes. BPM is any combination of methods used to manage a company’s business processes. Processes can be structured and repeatable or unstructured and variable.

Build-Operate-Transfer (BOT) – contract model to complete implementation of the project by the contractor in construction industry. The contract is the model used to finance large, long-term projects.



Cargo Transfer Manifest (CTM) – all the required documents for a particular shipment forwarded by the export department or customs agent to the airlines, ground freight carriers for transportation to its destination.

Computerized Maintenance Management System (CMMS) – software that centralizes operational sustainment information and simplifies processes related to maintenance activities. The system optimizes the use and availability of physical equipment, including vehicles, machinery, etc. CMMS are used in manufacturing, oil and gas extraction, power generation, construction, transportation and other industries where physical infrastructure is critical.

Commercial-off-the-shelf (COTS) – products that are pre-packaged or canned (off-the-shelf) hardware or software or digital products that are customized in the aftermarket to meet the needs of the purchaser organization. Novacura offer customized – COTS software for companies from different industries. 


Continuous improvement (CI) – Innovation/improvement process – a continuous effort to improve products, services or processes. These activities may be aimed at a long-term process of increasing productivity through continuous incremental changes, or a single change in a process of significance to improve productivity, etc. Manufacturing or logistics, construction, etc. processes are continuously evaluated and improved for their effectiveness, efficiency and flexibility.

Configuration management (CM) – systems engineering process for setting up and ensuring that a product’s performance, capabilities and material attributes are consistent with its requirements, design and operational information throughout entire project duration.

Consumer Packaged Goods (CPG) – products that are disposed of at a fast and fairly low cost. Most of these products are related to food industry, sometimed to the healthcare etc. Small general stores also carry fast-moving goods; limited shelf space is filled with higher turnover items. Other well known term for this type of goods is Fast-moving consumer goods (FMCG).


Crisis and Security Management (MSC) – the process in an organization of dealing with unforeseen events that may harm the organization or its stakeholders. It is considered the most important process in taking appropriate action to protect personnel and operations.

Customer relationship management (CRM) – the process by which a company or other organization manages its interactions with customers, usually using data analytics to examine large amounts of information.

Critical Path Method (CPM) –   method developed to provide an effective and efficent procedure for planning and scheduling construction operations.



Dangerous Goods (DG) – substances that pose a threat to health, safety, property or the environment during transportation.

Digital transformation (DX) – the adoption of digital technology by an organization. Implement innovative solutions and improve efficiency, product and business value. Many companies try to achieve better performance results by moving to a new technology by choosing an upgrade for their ERP system. In various exceptions, this costly and very time-consuming process can be solved with software solution. Extending an ERP system with mobile capabilities is possible with a low-code platform.

Distribution resource planning (DRP) – a solution used in business administration for supply chain order planning. The solution enables accurate compilation of parameters related to inventory control (e.g., stock control) and calculation of demand and delivery organization. This process is also commonly referred to as distribution requirements planning. DRP improvement solutions are offered by low-code platforms, and their users are able to use IT solutions for inventory control and transportation planning in one place.

Diversity, Equity, Inclusion (DEI) – a form of on-the-job training. DEI training is used to promote functional knowledge about the identity of other employees and how to navigate diversity in the organization. DEI is the definition of doing responsible business.



Engineer to order (ETO) – a method of production characterized by engineering activities incorporated into the lead time of the product or process and the preparation of technical specifications without regard to customer requirements (which were not specified at the time the order was placed). The method required a significant amount of engineering design and analysis.

Enterprise risk management (ERM) – encompasses the methods and processes used by organizations to manage risks and take advantage of opportunities associated with achieving goals. ERM provides a structure for risk management, which typically includes the identification of specific events or circumstances relevant to the organization’s objectives (threats and opportunities) the definition of response strategies and a monitoring process.

Engineering, procurement and construction (EPC) – contracts that are a form used for private sector construction work on large and complex infrastructure projects.

Enterprise Resource Planning (ERP) a software system that helps organizations automate and manage business processes critical to achieving the best results. ERP software coordinates data flow between a company’s business processes, providing a single source of truth and streamlining operations across the company. 


Europe, Middle East, Africa Countries (EMEA) – an acronym for Europe, Middle East and Africa. The acronym is used by institutions and governments, as well as in marketing and business to refer to the region: it is an abbreviated way of referring to the two continents (Africa and Europe) and the Middle Eastern subcontinent at the same time.

Estimated delivery time (ETA) – the expected time for delivery (the term used in transportation).



Fast-moving consumer goods (FMCG) – products that are disposed of at a fast and fairly low cost. Most of these products are related to food industry, sometimed to the healthcare etc. Small general stores also carry fast-moving goods; limited shelf space is filled with higher turnover items. Other well known term for this type of goods is Consumer Packaged Goods (CPG).

Field service management (FSM) – management of company resources employed off-site. Examples include locating vehicles, managing employee activity, scheduling, and integrating the management of such activities with inventory, billing, accounting and other back-office systems. FSM most often refers to companies that need to manage the installation, service or repair of systems or equipment. Companies operating in such an area require support from mobile devices that enable service technicians to work effectively in the field. Mobile devices should be equipped with professional software to enable fast and error-free maintenance of machines and equipment. See more about how to incorporate FSM into the business.





Harmonized System (HS) – a term for tariff nomenclature, is an internationally standardized system of names and numbers for classifying traded products.

House airway bill (HAWB) – is a document issued by international airlines for goods and proof of a contract of carriage. It is not a document confirming ownership of the goods. The airway bill is non-negotiable.




Independent software vendor (ISV) an organization that specializes in developing and selling software, as opposed to hardware, for the mass or niche market. This is in contrast to in-house software, which is developed by the organization that will use it, or custom software, which is designed or customized for one particular third party. Although software provided by an ISV is used by end users, it remains the property of the supplier.

Inudstry 4.0 (The Fourth Industrial Revolution) – the concept of rapid changes in technology, industry and social patterns and processes resulting from increasing interconnectivity and intelligent automation. For businesses, this means changes in productivity improvements, but also a significant shift in industrial capitalism.

Industrial control system (ICS) – an electronic control system and associated instrumentation used to control industrial processes. Control systems receive data from remote sensors that measure process variables, compare the collected data with desired setpoints and output control functions that are used to control the process through final controls.

Information security management (IMS) – a system that defines the management and controls of data security. Organizations in Western countries are subject to strict regulations in the European Union (GDPR) or/and in Poland by (RODO – General Data Protection Regulation). Companies are required to comply with the rules of data usage and sharing. The IMS also specifies how to authorize access to specific sectors of the company’s data a person at each level of responsibility within the organization.

Industrial energy management (IEM) – an area of engineering that facilitates the creation of a management system and integrates various engineering processes. Industrial management deals with industrial design, construction, management and the application of science and engineering principles to improve the overall industrial infrastructure and industrial processes.



Just in time (JIT) – is a term associated with the so-called, Lean manufacturing method of production focused on reducing working time in the production system, as well as the response time of suppliers and customers. It is closely related to another concept called just-in-time manufacturing (JIT). Just-in-time manufacturing tries to match production with demand by providing ordered goods and focuses on efficiency and productivity.



Key Performance Idicators (KPIs) – measure the performance of operational processes. KPIs assess the success of an organization or a specific activity (such as projects, programs, products and other initiatives) in which it engages.



Lot number (LOT) – Product identification number – a number indicating the quantity of a product or production batch. The LOT number is placed on the outside of the product packaging. In many cases, the LOT number is converted to a graphical format in the form of a barcode. This solution makes it easier to identify the product with a barcode scanner, as it minimizes the possibility of a manual error in reading the LOT number by operations staff. Read more about barcode scanner solutions.



Manufacturing process management (MPM) – technologies and methods used to define how products are manufactured. MPM differs from ERP/MRP, which is used to plan the ordering of materials and other resources, set production schedules and compile cost data. The basis of MPM is a central repository for integrating all these tools and activities.

Manufacturing Execution System (MES) – a digitized system used in manufacturing to track and document the process of transforming raw materials into finished goods. The MES provides information that helps manufacturing decision makers understand how current shop floor conditions can be optimized to increase production efficiency. MES acts as a real-time monitoring system to control multiple elements of the manufacturing process.


Manufacturing operations management (MOM) – is a set of systems for managing overall production processes to optimize efficiency.

Maintenance management – is the process of maintaining the assets and resources of an organization. Main purpose ensure that production moves smoothly and resources are used efficiently. 

Method of Procedure (MOP) – Method of procedure/work procedure – an instruction that characterizes the work process (work instructions).

Movement Reference Number (MRN)  – a customs identification number, which is generated each time an import or export declaration of goods is made. The generated number is individual and allows unambiguous assignment of goods.


Mobile device management (MDM) – a system associated with the administration of mobile devices such as cell phones, smartphones, tablets, laptops, handheld scanners used for work in warehouses, store areas, etc. MDM is complemented by an operating system that allows the coordination of mobile device users. MDM is an information management system that provides end users with control over the current operational process. Efficient operation of MDM is provided by systems built on the basis of low-code platform solutions. Users can independently develop any number of mobile device applications on them, maintaining efficient and centralized control over any process.

Material Requirements Planning (MRP) – is a system for counting the materials and components required to make a product. It involves three basic steps: inventorying the materials and components, determining what additional ones are required, and then scheduling their production or purchase.



New product development (NPD) – the process of bringing a new product to market, renewing an existing product, or introducing a product to a new market. A central aspect of NPD is product design, along with various business aspects. New product development is generally defined as the transformation of a market opportunity into a marketable product.



Operations and maintenance (O&M) – the control of operations, servicing, repair or replacement of essential equipment, appliances, machinery, building infrastructure and auxiliary utilities in industrial, business and residential installations. Practices to keep equipment in working order; these actions are taken before or after an emergency.

Operational risk management (ORM) – a cyclical or continuous process involving risk assessment, risk decision-making and implementation of risk controls that results in the acceptance, mitigation or avoidance of risk. ORM is the oversight of operational risk.


Original Design Manufacturing (ODM) – designing and manufacturing a specific product, which is then rebranded by another company for sale. Such companies allow licensed manufacturing of products without the need to engage in organizing or running a factory.

Original Equipment Manufacturer (OEM) – manufactures systems and/or components that are sub-assemblies used in another company’s final product. Electronics manufacturers often do not have the capacity to manufacture all components on their own. For this reason, they combine or integrate OEM parts – such as processors, hard drives, software etc. By definition, for companies producing quality products, this is not only a way to maintain relatively good product quality but also to save time and money. 

Overall Equipment Effectiveness (OEE) – a measurement of the use of production operations (equipment, time and materials) compared to their full potential during the periods in which they are scheduled. It determines the percentage of production time that is truly productive, profitable. The evaluation of the work period includes 3 main factors influencing productivity and deals with the measurement of work according to Availability – optimization of work by reducing machine hours; Performance – acceleration of processes by verifying planned work time with actual work time; Quality – evaluation of material consumption based on the receipt of the final product. Most companies introducing with OEE are able to significantly reduce production costs. However, this is not possible without complete process control. Such control can be provided by software that can collect data from multiple machines simultaneously and transmit it to a management headquarters, where it can be thoroughly evaluated. Solutions for this type of software are made possible by the low-code platform.




Predictive maintenance (PdM/PM) – a technique that makes it easier to determine the condition of equipment in operation in order to estimate when maintenance should be performed. This approach provides cost savings over routine or time-based preventive maintenance because tasks are performed only when warranted.

Proof of Delivery (POD) –  is a common method of delviery confiramtion in transportation. The requisitioners get their products delivered from production or various industries. It is an essential part of any logistics. Many systems in logistics use paper printed PODs as the primary source of communication. However, modern companies are looking to change their communication to digital in order to manual avoid errors etc. Novaura offers a solution that helps in many way to digitalize transportation and manufacture processes. See our offer for manufacturing and logistics.

Process flow diagram (PFD) – is a diagram commonly used in chemical and process engineering to show the general flow of a plant’s processes and equipment. A PFD diagram shows the relationships between major equipment in a plant and does not show minor details such as piping details and markings. Another commonly used term for a PFD is flow sheet.

Process safety management (PSM) – any activity or combination of activities, including the use, storage, manufacture, handling or movement on the premises of highly hazardous chemicals , according to legal orders.

Product data management (PDM) – the term for a business function within product lifecycle management (PLM), which means managing and publishing product data. In software engineering, it is known as version control. The goals of product data management include ensuring common understanding among all stakeholders, minimizing confusion during process execution, and maintaining the highest standards of quality control.




Quality Management System (QMS) – a system that documents the policies, procedures and controls necessary for an organization to create and deliver quality products or services to customers, thereby increasing customer satisfaction.

Quarter Buisness Review (QBR) – an analytical assessment of the business with forecasting of the company’s activities (held quarterly according to the company’s fiscal calendar).



Return of Investment (ROI) – the ratio of net income (over a given period of time) to investment (costs resulting from investing certain resources at a given time). A high ROI means that the returns on an investment compare favorably with its costs. As an efficiency measure, ROI is used to evaluate the effectiveness of an investment or to compare the effectiveness of several different investments.

Root cause analysis (RCA) – a problem-solving method for identifying the root causes of faults or problems. It is widely used in information technology, telecommunications, industrial process control, accident analysis, medicine (in medical diagnostics), health care (e.g., epidemiology), etc.

Regulatory compliance (RO) – means compliance with the rule of internal regulations, specifications or generally accepted company policy. It is a term for standardized standards or laws within an organization. Many companies are also required to comply with regulations in reference to safety or quality (as in the case of ISO), in order to improve operational activities and contracts with contractors.



Self-Assessment Questionnaire (SAQ) – are validation tools designed to help acceptors and service providers provide results of self-assessment of services provided. There are eight different types of SAQs, each with a different level of complexity. The most basic is the SAQ-A, consisting of just 22 questions.

S6 Lean / Lean Six Sigma (S6) – a system involving a team effort to improve performance by systematically removing waste and reducing variability in production, logistics and distribution operations, etc. It is a system of increased standards in the work environment. 


Single Customer View (SCV) – an aggregated, consistent and comprehensive representation of the data an organization has on its customers that can be viewed in one place. The benefits to an organization of obtaining such a single view come from the ability to analyze past behavior to better target and personalize future interactions with customers.


Standard Operating Procedure (SOP) – a set of step-by-step instructions developed by an organization to help employees perform routine activities. The goal of the SOP is to achieve efficiency, high-quality results and uniformity of operation, while reducing miscommunications and non-compliance with industry regulations.

A Statement of Work (SOW) – document normally used in the project management profession. It is detailed description of the project’s work requirements and scheduled tasks. It inlcudes project-specific activities, deliverables and schedules for the  services that should be delivered to the customer. The SOW usually also includes accurate business requirements, pricing, along with standard management model. 

Supply Chain Management (SCM) – business-to-business and location-to-location services, including the movement and storage of raw materials, work-in-progress inventory and finished goods, and the fulfillment of orders from point of origin to point of consumption. Interconnected, interconnected or coupled networks, channels and hub companies come together in a supply chain to deliver products and services required by end customers.


Stock keeping unit (SKU) – This is an alphanumeric identifier used to identify products in stock. The number may contain information strictly specifying the type and purpose of the product. It is a method closely related to the warehouse management process. In many cases, the SKU number is converted to a graphical format in the form of a barcode. Such a solution makes it easier to identify the product with a barcode scanner, as it minimizes the possibility of a manual error in reading the SKU number by operational staff. Read more about barcode scanner solutions.

A service level agreement (SLA) –  contractual obligation between a service vendor and a customer, that includes the individual aspects of the service – regarding terms of quality, availability, responsibilities, management models etc. In IT industry SLA will include detailed requirments for implemented software (number of users accounts, general operational needs etc.)

Shop floor (English) – colloquially production, the term is used in the English-language nomenclature concerning the area of work carried out in the manufactory, often also found in the domestic professional technical literature. Shop flor, is the space on the factory premises dedicated to the activities of conducting production. It is an area equipped with production machinery or a workshop, etc.




Total Productive Maintenance (TPM) – the process of continuously improving the efficiency of equipment by involving people and resources that can make a difference. The goal of TPM is to maintain productivity. In many cases, this means coordinating the quality of work to increase production volumes, employee attitudes and maintain job satisfaction. The goal of TPM is to increase the overall equipment effectiveness (OEE) of plant equipment. TPM addresses the causes of accelerated deterioration and is a system aimed at reducing production losses. Conducting the TPM process in an efficient manner implies optimizing the work processes of people and machines, using dedicated software and personalized applications. Software solutions for improving TPM work, and therefore OEE, are achievable using the low-code platform.

The total cost of ownership (TCO) – includes the acquisition price of an asset plus operating costs over the life of the asset. is a method of evaluating the long-term value of a purchase to a company or individual.

Transportation Management System (TMS) – A supply chain management system for transportation operations and may be part of an enterprise resource planning (ERP) system.





Value Added Service (VAS) – non-core services, i.e. all services that go beyond the standard and require special attention. However, the term can be used in the service and manufacturing industries, logistics, etc.

Vendor-managed inventory (VMI) – in the normal inventory management model, the buyer determines the size of the order himself. VMI the buyer shares inventory information with the vendor (supplier), who at the same time determines the quantity of goods for sale. VMI is characterized by risk sharing between the seller and the buyer. In some cases, if the inventory is not sold, the seller (supplier) is obliged to buy back the product from the buyer (retailer).



Warehouse management system (WMS) – a set of rules and processes designed to organize the operation of a warehouse or distribution center and ensure that such a facility can operate efficiently and meet its objectives. Most WMS systems run on the basis of ERP system software. ERP systems guarantee strong capabilities in warehouse management in many operational areas. Thus streamlining the overall quality of work and improving productivity. ERP systems, on the other hand, operating in support of applications developed on a low-code platform, improve the operational mobility of warehouse employees and streamline management. They also guarantee improved operation of key warehouse processes.

Work Breakdown Structure (WBS) – cost control and estimation process for a industrial project. Analysis and methods for the project to determine the breakdown factors in the scope. Visualization of all tasks required for a construction project and/or large industrial projects with a high risk of failure.





   A B C D E F G H I J K L M

   N O P Q R S T U V W Y Z

Navigate by using letters.