20 Terms

ONIQ Glossary

Terms around digital value stream, Lean management and AI in production — a reference for production teams, Lean experts and IT decision-makers.

A

AI Agents in Manufacturing

Autonomous, AI-driven software components that monitor production data, detect deviations, and proactively issue recommendations or alerts to the people responsible.

B

Bottleneck / Theory of Constraints

A bottleneck is the station with the lowest capacity in a value stream; it determines the overall throughput of the system. The Theory of Constraints is the related management theory developed by Eliyahu M. Goldratt.

C

Changeover Matrix

A systematic overview of all changeover times between different products or variants on a machine — showing which sequences are especially time-consuming or especially efficient.

Continuous Improvement Process (CIP)

The German equivalent of Kaizen — often organized as a structured company program for systematically capturing and implementing improvement suggestions.

Cycle Time

The time required to complete one unit at a specific workstation or process step — measured from the start to the completion of the same operation on one unit.

D

Digital Twin

A virtual representation of a real object, process or system that synchronizes with the original based on data and is used for analysis, simulation or prediction.

Digital Value Stream

A digital twin of the real production flow, generated live from operational data, mapping material, information and time flows across all manufacturing stages.

E

ERP

Enterprise Resource Planning — a company-wide IT platform that integrates commercial and logistical processes: bills of materials, routings, orders, inventory, purchasing and finance.

K

Kaizen

A Japanese concept of continuous, incremental improvement — based on many small changes made by all employees rather than infrequent large-scale projects.

L

Lead Time

The total time an order or product spends in the production system from the start of processing to completion — including all waiting, queue and setup times.

Lean Copilot

A software category that combines Lean methodology with AI and data analytics to support continuous improvement in production with data.

Lean Management

A management philosophy rooted in the Toyota Production System that aims to eliminate waste, maximize value creation and institutionalize continuous improvement.

M

MES

Manufacturing Execution System — an IT layer between ERP and the machine level that controls production orders, captures operational data and provides real-time transparency on production status.

O

OEE

Overall Equipment Effectiveness — a metric that measures overall equipment effectiveness as the product of availability, performance and quality, making productivity losses visible.

S

Shopfloor Management

A Lean leadership methodology that anchors steering, problem-solving and continuous improvement where value is created — directly on the production floor.

T

Takt Time

The calculated target pace of production, calculated as available production time divided by customer demand in the same period — it dictates the rhythm at which production must occur.

V

Value Stream

The sum of all value-adding and non-value-adding activities a product goes through, from raw material sourcing to delivery to the customer.

Value Stream Simulation

The calculation of what-if scenarios on a digital value stream to make the effects of changes on lead time, inventory, bottlenecks and throughput visible before implementation.

W

Waste (Muda)

In Lean Management, any activity that consumes resources but creates no value for the customer — classically divided into seven types of waste according to Taiichi Ohno.

WIP / Work in Progress

All orders or materials currently in the production process — i.e. started but not yet completed.

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