Glossary of Terms

Original Equipment Manufacturer (OEM): assembly and manufacturer of end product

Tier 1 Supplier: Solutions provider, provides subsystems of the car to the manufacturer

Tier 2 Supplier: Parts manufacturer provides individual parts to the Tier 1 supplier

Supermarket: an area for storing and sequencing

Kitting: Process in which individually separate but related items are grouped, packaged, and supplied together as one unit

De-kitting: Breaking up of kitted components or parts and their return to the stores

Complete knock down ( CKD ): Globally manufactured OEM parts shipped to the assembly facility

Milk Run: simultaneous distribution and collection of goods/empties

Just In Time (JIT): denoting a manufacturing system in which materials or components are delivered immediately before they are required in order to minimize storage costs

Just in Sequence (JIS): is an inventory strategy that matches just in time (JIT) and complete fit in sequence with variation of assembly line production. Components and parts arrive at a production line right in time as scheduled before they get assembled

Industry 4.0: relates to the so called “Fourth Industrial revolution” focussing on automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of Things and cloud computing. This creates a “Smart” factory.

Internet of Things (IOT): the network of physical devices, vehicles, buildings and other items—embedded with electronics, software, sensors, actuators, and network connectivity that enable these objects to collect and exchange data

Localisation: keeping the supply chain close to the manufacturing plant in terms of distance.