From AOI to TCO: Get a quick overview of the central terms
in modern electronics production.
AOI – Automated Optical Inspection: Automated optical inspection of printed circuit boards for quality control.
BOM – Bill of Materials: Comprehensive list of all components and materials required for a product.
DFA – Design for Assembly: Engineering approach optimized for ease of assembly.
DFM – Design for Manufacturing: Engineering approach optimized for manufacturing feasibility.
FAI – First Article Inspection: Production verification process for the initial manufacturing batch.
FCT – Functional Test: Operational testing of complete electronic assemblies.
ICT – In-Circuit Test: Electrical testing of individual components on a printed circuit board assembly.
NPI – New Product Introduction: Process of transferring a new product design into series manufacturing.
SPI – Solder Paste Inspection: Quality inspection of the solder paste printing process.
Allocation – Allocation: The strategic assignment of scarce materials or production capacities across different customers, orders, or locations.
APS – Advanced Planning and Scheduling: Specialized software systems using advanced algorithms for complex production planning and detailed scheduling.
EOL (End of Life) – Refers to the point at which a manufacturer discontinues the production and/or support of a component or product.
ERP – Enterprise Resource Planning: Integrated business management software used to manage and plan core organizational processes.
Kanban – Kanban: A lean, demand-driven material flow control system based on actual consumption.
Lead Time – Lead Time: The exact duration of time spanning from the initial order placement to final delivery.
MOQ – Minimum Order Quantity: The smallest allowable quantity of a product that a supplier is willing to sell per order.
NRND (Not Recommended for New Designs) – A component status indicating that the part may still be available, but due to its advanced product lifecycle stage, it is no longer recommended for use in new designs.
PCN / PDN (Product Change Notification / Product Discontinuation Notification) – Manufacturer-issued notifications informing customers of product changes or the planned discontinuation of a component or product.
PPAP – Production Part Approval Process: A standardized industry procedure used to ensure the manufacturing process can consistently replicate series parts.
RFQ (Request for Quotation) – A formal request issued to suppliers inviting them to submit a quotation based on defined technical, logistical, and commercial requirements.
SCM – Supply Chain Management: The strategic management and coordination of the entire supply and logistics network.
TCO – Total Cost of Ownership: A comprehensive financial assessment of all costs associated with an asset throughout its entire lifecycle.
Dual Sourcing – Dual Sourcing: Procurement of the same material from two distinct suppliers to minimize supply chain risks.
Friendshoring – Friendshoring: Relocation of supply chains to countries that share similar political and values systems.
Nearshoring – Nearshoring: Relocation of production operations to geographically proximal countries.
Relocation – Relocation: Transfer of production capacities or manufacturing orders to an alternative facility or partner location.
Reshoring – Reshoring: Relocation of manufacturing operations back to the company’s home country.
Supply Chain Resilience – Supply Chain Resilience: The adaptive capacity and robustness of a supply chain to withstand and recover from disruptions.