Manufacturing & Sourcing Glossary

A US trade remedy under the Trade Act of 1974 that imposes additional import duties on goods from China. Lists 1–4A cover thousands of HS codes, with rates up to 145% as of 2025–2026. Vietnam-origin goods are NOT subject to Section 301.

A standardized international 6-digit (or 10-digit US HTS) product classification code used to determine tariff rates and trade statistics. The first 6 digits are universal; the US adds 4 more digits for the HTS system.

The US version of the Harmonized System — a 10-digit code used by US Customs and Border Protection (CBP) to classify imported goods and calculate duties. The first 6 digits match international HS codes.

The total cost of a purchased item including the ex-factory price, freight, insurance, customs duties, brokerage fees, and any other charges incurred to get the product to your warehouse. The true 'all-in' cost of sourcing.

An Incoterms shipping term meaning the seller covers all costs and risks up to the point the goods are loaded onto the ship at the origin port. Buyer assumes risk and cost from that point forward.

International Commercial Terms — a set of standardized trade terms (published by the International Chamber of Commerce) that define who is responsible for shipping, insurance, and customs costs at each stage of delivery. Key terms: EXW, FOB, CIF, DDP.

The country where a product was substantially transformed or manufactured. Determines which trade rules, tariffs, and preferential rates apply. For Section 301 avoidance, goods must be Vietnam-origin, meaning they underwent substantial transformation in Vietnam.

A free trade agreement covering 12 Pacific Rim countries including Vietnam, Australia, Canada, Japan, and New Zealand. Provides preferential tariff rates for qualifying goods and a framework for IP protection and labor standards.

A supply chain diversification strategy where companies maintain some production in China but shift a portion to another low-cost manufacturing country — most commonly Vietnam, India, or Mexico — to reduce geopolitical and tariff risk.

The practice of distributing sourcing across multiple suppliers, countries, or regions to reduce dependency on any single source and mitigate disruption risk from tariffs, geopolitical events, or factory shutdowns.

Relocating manufacturing or sourcing to a geographically close country, typically for shorter lead times and cultural/time zone alignment. For US companies, this means Mexico; for European companies, Eastern Europe or North Africa.

Bringing manufacturing back to the home country after previous offshoring. Often driven by quality control, IP protection, and the desire to 'Made in USA' — but typically 3–5× more expensive than Southeast Asian sourcing.

A subtractive manufacturing process where computer-controlled cutting tools remove material from a solid block to produce precision parts. Includes milling (3, 4, and 5-axis), turning, drilling, and EDM. Typical tolerances: ±0.005–0.05mm.

A metal casting process where molten metal (typically aluminum, zinc, or magnesium) is injected under high pressure into a steel die. Produces complex, tight-tolerance metal parts at high volume. Two types: hot chamber (zinc, tin) and cold chamber (aluminum, magnesium).

A casting process where a wax pattern is coated in ceramic, the wax is melted out, and molten metal is poured in. Produces near-net-shape parts with excellent surface finish and thin walls. Used for complex geometries in steel, stainless, titanium, and superalloys.

Manufacturing processes applied to flat metal sheets including laser cutting, punching, bending, forming, welding, and assembly. Common materials: carbon steel, stainless steel, aluminum. Typical thickness range: 0.5–12mm.

A manufacturing process where molten plastic (or rubber) is injected into a steel or aluminum mold cavity under high pressure, cooled, and ejected. Ideal for high-volume production of complex plastic parts. Tooling cost: $2,500–$50,000+.

A manufacturing process where metal powders are compacted into a die and then sintered (heated below melting point) to bond particles into a solid part. Ideal for complex shapes with tight tolerances at high volume. Sub-processes include MIM (Metal Injection Molding) and press-and-sinter.

A manufacturing process where metal is shaped by applying compressive forces via a hammer or press. Types: open-die forging, closed-die forging, ring rolling. Produces parts with superior grain structure and mechanical strength vs. casting.

A manufacturing approach that produces parts as close as possible to their final geometry, minimizing subsequent machining. Common in investment casting, PM, and forging. Reduces material waste, machining time, and cost.

The international standard for Quality Management Systems (QMS). Requires documented procedures, process controls, internal audits, and continuous improvement. ISO 9001:2015 is the current version. Mandatory for most industrial suppliers.

Automotive Quality Management System standard — built on ISO 9001 but with additional requirements for defect prevention, production consistency, and continuous improvement in the automotive supply chain. Required by most Tier 1 automotive OEMs.

Quality Management System standard for aerospace, space, and defense suppliers. Based on ISO 9001 with additional requirements for risk management, traceability, and configuration management. Required for aerospace supply chain qualification.

An automotive industry standard (developed by AIAG) that verifies a supplier can consistently meet customer requirements before production begins. PPAP submissions include dimensional reports, material certs, MSA data, control plans, and sample parts. Five submission levels (Level 1–5).

A complete dimensional and functional inspection of the first production part (or first batch) to verify it conforms to all drawing requirements before full production proceeds. Required by most aerospace, defense, and automotive customers.

A precision measurement device that uses a touch probe or laser scanner to measure the exact geometry of a part in three dimensions. CMM data is used for FAI reports, PPAP submissions, and process capability analysis.

A standardized system (ASME Y14.5) for communicating engineering tolerances on technical drawings using symbols. GD&T specifies allowable variation in form, fit, and function — covering flatness, parallelism, concentricity, true position, and more.

The permissible variation in a dimension or measurement. Expressed as ±X or as a range. Tighter tolerances cost more to produce and inspect. CNC machining: typically ±0.005–0.05mm; die casting: ±0.1–0.5mm; sheet metal: ±0.1–0.5mm.

A statistical measure of how well a manufacturing process stays within specification limits, accounting for both centering and spread. Cpk ≥ 1.33 is generally required for production; ≥ 1.67 for automotive (IATF 16949). Higher = more consistent.

Dewin's proprietary factory evaluation framework covering 50 criteria across 5 pillars: (1) Business Legitimacy & Registration, (2) Facility & Equipment, (3) Quality Management System, (4) Process Controls & Traceability, (5) HSE & Labor Compliance. Produces a QCLDM score for each factory.

An engineering approach that considers manufacturing constraints during the design phase to reduce cost, improve quality, and shorten lead time. DFM reviews identify features that are difficult or expensive to produce — thick walls, undercuts, sharp corners, unnecessary tolerances.

A measure of the texture of a surface, typically expressed as Ra (average roughness in micrometers). Ra 0.8 μm = smooth machined finish; Ra 3.2 μm = standard machined; Ra 6.3 μm = rough. Surface finish affects aesthetics, sealing, and tribology.

A taper or slope added to vertical surfaces of a part to facilitate ejection from a mold or die. Standard draft: 1–3° per side. Insufficient draft causes parts to stick in the mold, increasing cycle time and tool wear. Critical for injection molding and die casting.

The lowest quantity a supplier is willing to produce or sell per order. MOQs exist because of setup costs, tooling amortization, and process efficiency. Common in stamping (5,000+), injection molding (1,000+), and casting. CNC machining often has lower or no MOQ.

One-time costs incurred to design, develop, test, or tooling for a new product or component. Typically includes mold tooling, fixture design, and first-article testing. Amortized across production volume. Common in injection molding, die casting, and stamping.

The total time from order placement to delivery at the buyer's dock. Includes production time, quality inspection, packing, freight, and customs clearance. Vietnam-to-US ocean freight adds 18–25 days to manufacturing time.

A formal document sent to suppliers requesting a price and lead time for specific parts or assemblies. An effective RFQ includes: technical drawings, 3D CAD files, material specifications, surface finish requirements, annual volume, and target price if applicable.

A structured list of all components, raw materials, sub-assemblies, and quantities required to manufacture a product. Multi-level BOMs include parent-child relationships between assemblies and sub-components.

An electrochemical process that converts the surface of aluminum into a durable aluminum oxide layer. Improves corrosion resistance, hardness, and aesthetics. Type II (standard): 5–10μm; Type III (hard anodize): 25–50μm. Can be dyed in various colors.

A dry finishing process where electrostatically charged powder particles are applied to metal and cured in an oven at 180–200°C. Produces a durable, consistent coating. Thicker and more impact-resistant than wet paint. Used widely in OPE, agricultural equipment, and industrial applications.

Prototype tooling uses softer, cheaper materials (aluminum molds) for lower volume and faster iteration. Production tooling uses hardened P20 or H13 steel molds rated for 300,000–1,000,000+ shots. Prototype tooling: $500–$5,000; production tooling: $5,000–$50,000+.

A systematic method for identifying potential failure modes in a product or process, their causes, effects, and the controls needed to mitigate them. Design FMEA (DFMEA) covers product design; Process FMEA (PFMEA) covers manufacturing processes. Required for IATF 16949 and PPAP.

A documented description of the systems and processes used for controlling a manufacturing process to ensure product quality. Includes the part number, operation description, characteristics to control, measurement method, sample size, frequency, and reaction plan.

A supplier-issued document certifying that a batch of parts meets specified requirements. Typically includes part number, revision, quantity, purchase order number, and a statement of conformance. Required by most industrial buyers with every shipment.

The ability to track the history, location, and application of a part or material through the supply chain. Includes lot numbers, heat numbers (for metals), supplier certifications, and inspection records. Critical for aerospace, medical, and automotive applications.