Business Management Glossary

Here you will find the most important terms and concepts for managing your business, categorized by industries, standards, and solutions. 

A

ABNT (Brazilian Association of Technical Standards)

Founded in 1940, this organization is responsible for technical standardization in Brazil. Its standards aim to standardize processes, products, and services to ensure greater quality, safety, and efficiency.

Accreditation

The process by which a competent institution or body attests to the technical competence of a company to provide a service or supply a product.

Action Plan

Set of steps to solve problems or implement improvements.

Active Pharmaceutical Ingredient (API)

Substance that provides a medicine with its intended pharmaceutical effect.

Adverse Drug Reaction (ADR)

Harmful, unintended, and undesirable response to a medication.

Adverse Event

Any unfavorable medical occurrence in a patient or participant in a clinical study.

Aerodynamics

The study of how air moves around a vehicle, influencing its efficiency and performance.

Allergen Control Program

Procedures to identify, control, and, if possible, eliminate allergens in food.

Allergens

Substances capable of provoking an immune response (allergic reactions) in sensitive individuals. Different legislations worldwide define which allergens must be labeled in each country. The most common allergens include eggs, milk, fish, shellfish, nuts, peanuts, wheat, and soy.

Anti-lock Braking System (ABS)

A system that prevents wheels from locking during braking, improving vehicle control.

ANVISA (Brazilian Health Regulatory Agency)

The Brazilian regulatory body responsible for the regulation and oversight of medicines, vaccines, medical devices, pesticides, food, and cigarettes.

APQP (Advanced Product Quality Planning)

Advanced product quality planning, a tool to ensure that products meet customer requirements.

Artificial Additives

Synthetic substances added to food to enhance its characteristics.

Artificial Intelligence (AI)

Technology that uses advanced algorithms and machine learning to analyze data, predict outcomes, and optimize production processes, improving efficiency, quality, and real-time decision-making.

Assembly Line

Production method where products are sequentially assembled in a continuous process, with each workstation adding specific components.

Audit

A procedure conducted to assess the conformity of activities with standards and regulations.

Automatic Transmission

A transmission system that automatically shifts gears in a vehicle.

Automotive Painting

Application of protective and decorative coatings on vehicles.

Autonomous Driving Technology

Systems that enable vehicles to operate without human intervention.

C

Calibration

The process of adjusting instruments to ensure accurate measurements.

CAPA (Corrective and Preventive Action)

A methodology that identifies, analyzes, and establishes corrective and/or preventive actions, allowing for the correction and prevention of problem recurrence.

Capability

The ability of a process to consistently meet product specifications and tolerances.

Case Report Form (CRF)

A document used to record all information required by a clinical study protocol.

Certificate and Submission

Documents used to validate and approve products or processes.

Certificate of Analysis (COA)

Document certifying that a product complies with technical specifications.

Certification Body

Entity responsible for evaluating and certifying the compliance of products and systems with specific standards.

Certifications

Process by which a third party (certification body) assesses and verifies that a product, service, process, or system meets specific normative or regulatory requirements. Certification is carried out based on specific standards and may include audits, inspections, testing, and other evaluation methods.

Change Management

Process that assesses and mitigates risks associated with changes in processes, systems, or documentation.

Chassis

The base structure of a vehicle that supports all mechanical components and the body.

Codex Alimentarius

A collection of international food standards, guidelines, and codes of practice aimed at promoting food safety, protecting consumer health, and facilitating international food trade by ensuring the harmonization of food regulations and standards worldwide.

Combustion Vehicles

Vehicles that use fossil fuel-powered engines.

Common Technical Document (CTD)

A drug registration dossier for regulatory submission.

Compliance

Adherence to legal, regulatory, customer, and internal requirements.

Computerized System Validation (CSV)

A documented process that verifies that a computerized system performs as designed for its intended use in an integral and reproducible manner.

Containment

Immediate action to control or limit an identified problem.

Contaminant

Any undesirable substance present in food as a result of environmental contamination or equipment used in food processing and/or preservation.

Continuous Improvement Process (CIP)

A continuous improvement process focused on Lean Manufacturing, aiming to reduce costs and enhance processes and services.

Contract Research Organization (CRO)

Company contracted to carry out activities related to clinical trials.

Control Plan

Document describing monitoring and control methods for production processes.

Control Record

Record used to document inspections, measurements, and actions taken in processes.

Corrective Action

A measure or intervention adopted to eliminate the causes of a nonconformity, defect, or undesirable situation, with the aim of preventing its recurrence.

Corrective Maintenance

Repairs performed after failures occur.

Cost of Poor Quality

Expenses related to errors, rework, and failures that impact quality.

Crash test

Tests conducted to evaluate vehicle safety in the event of a collision.

Critical Characteristic

An aspect of the product that directly affects its functionality or safety.

Critical Control Point (CCP)

Process step where control measures are applied to prevent or eliminate food safety hazards.

Cross-contamination

Transfer of contaminants from one surface, food, or person to another food item, posing a food safety risk.

Cross-docking

A logistics method where products are received and redistributed without prolonged storage.

Customer Complaint

Negative feedback from customers regarding provided products or services.

E

Effectiveness Verification

A process to confirm that an action taken was effective.

Effluent Treatment

The process of removing or reducing pollutants in liquid waste generated by a manufacturing unit according to established standards before disposal or reuse.

EFSA

The European Food Safety Authority, which provides scientific advice on food risks.

Electric Vehicles (EVs)

Vehicles powered by electric motors instead of internal combustion engines.

Electronic Control Unit (ECU)

Control unit that manages engine functions and other vehicle systems.

Emission Monitoring

Measurement and control of pollutants emitted during industrial processes or transportation.

Emission Standards

Set of laws regulating and controlling the amount of pollutants that can be emitted by a source, whether mobile or stationary.

Energy Efficiency

Practices to reduce energy consumption in production.

Engineering Change Request (ECR)

A request to modify a design, product, or process.

Environmental Impact Reports

Documents that assess and record the effects of an industrial activity on the environment.

Equipment Qualification

Process that certifies, through a series of evaluations, that equipment meets its intended use with integrity and reproducibility.

Ergonomics

The study of worker efficiency and comfort on the production line. It also includes actions to adapt the work environment for employee comfort and safety.

European Medicines Agency (EMA)

The European regulatory body responsible for the scientific evaluation, supervision, and safety control of medicines.

External Logistics

Management of finished product transportation to customers.

F

Failure Mode and Effects Analysis (FMEA)

A preventive methodology that identifies and evaluates potential failures in processes, products, or systems before they occur.

FCC

Food Chemicals Codex, a compendium of quality and purity standards for food ingredients.

FDA (Food and Drug Administration)

The U.S. regulatory agency responsible for the safety and efficacy of drugs and food.

FDA 21 CFR Part 11

FDA regulation on electronic records and electronic signatures.

FDA 21 CFR Part 820

FDA regulation that establishes the basic requirements applicable to medical device manufacturers.

Federal Inspection Service (SIF)

An agency under Brazil’s Ministry of Agriculture, Livestock, and Supply (MAPA) responsible for inspecting animal-based products in Brazil.

FEFO

'First Expired, First Out' inventory management method, where products with the nearest expiration date are used first.

Field Failure

A problem identified in products already in use by the customer.

FIFO

'First In, First Out' inventory management method, where the oldest products are used first.

Final Assembly

Stage where components are assembled to form the complete vehicle.

Final Product Validation

Testing and certification to confirm that the final product meets customer requirements and expectations.

Finished Product

Finalized item ready for customer delivery.

First-Party Audit

An internal audit conducted by the organization itself or by an entity on its behalf, aimed at evaluating the conformity of its own systems, processes, and procedures.

Flowchart

A graphical representation of process steps, used to map and analyze production processes.

Food

Any substance or combination of substances, whether solid, liquid, pasty, or in another appropriate form, intended to provide the human body with the necessary elements for its formation, maintenance, and development.

Food Additives

Ingredients added in small quantities to food during processing. They modify or preserve physical, chemical, biological, or sensory properties (color, shine, odor, taste, and texture).

Food Colorants

Substances used to add color to food.

Food Disinfection

A process applied to reduce, destroy, remove, or inactivate pathogens or microorganisms that actively contribute to food spoilage.

Food Fraud

The act of deceiving consumers about food quality or content for financial gain.

Food Irradiation

Preservation technique using ionizing radiation to destroy microorganisms and pests.

Food Microbiology

Study of microorganisms present in food and their impact on safety and quality.

Food Packaging

Materials and methods used to package food, ensuring its protection and preservation.

Food Preservation

Methods and techniques to extend the shelf life of food.

Food Processing

Set of methods and techniques to transform raw materials into food products.

Food Safety

A set of practices and regulations to ensure that food is safe for consumption.

Food Safety Team (FST)

A group of professionals in an organization responsible for ensuring food safety. The FST must be competent, with adequate training, skills, and experience to perform activities such as updating the food safety management system, approving prerequisite programs (PRP), and verifying flowcharts.

Food Security

Ensuring that all people have permanent physical, social, and economic access to safe, nutritious food in sufficient quantities to meet their dietary needs and preferences. This concept is supported by three main pillars.

Food Technology

The application of science and technology to food production, processing, and distribution.

Food Traceability

Ability to track the origin and journey of food throughout the production and distribution chain.

Foundry

Manufacturing process in which molten material is poured into a mold to form solid parts in the desired shape.

Fresh Foods

Food products that have not undergone any type of industrial processing.

FSMA (Food Safety Modernization Act)

U.S. law aimed at ensuring the safety of the food supply.

FSSC 22000

Certification scheme for food safety management systems, based on ISO 22000.

Functional Foods

Foods that offer additional health benefits beyond their basic nutritional function.

I

ICH (International Council for Harmonisation)

Council for the harmonization of technical requirements for pharmaceuticals for human use.

IFS (International Featured Standards)

International food standard that assesses product and process compliance regarding safety and quality.

Incident and Accident Analysis

Investigation of the causes of workplace failures to implement corrective and preventive measures.

Incoming Inspection

Verification of compliance for materials received from suppliers.

Independent Suspension

A suspension system where each wheel can move independently of the others.

Industrial Automation

The use of control systems to operate industrial equipment and processes.

Industry 4.0

Integration of digital technologies in industrial production.

Information Technology (IT)

The use of information systems to support production operations.

Infotainment System

A set of technologies that provide information and entertainment to vehicle occupants.

Ingredient

Any substance used in the manufacture or preparation of food and that remains in the final product, even if modified. Includes food additives.

Injection Molding

Manufacturing method in which materials, usually plastics, are molded under high pressure inside molds.

Internal Combustion Engine

Type of engine where fuel combustion occurs inside the engine itself.

Internal Logistics

Management of material flow within the factory.

Internet of Things (IoT)

Connection of devices and systems to collect and share data.

Inventory

Verification of material or product stock quantities against system records.

IoT Sensors

Use of connected sensors to monitor and optimize processes in real time.

Ishikawa Diagram (Fishbone Diagram)

A diagram used to identify potential causes of a problem.

ISO 13485

International standard for quality management systems in medical devices.

ISO 14001

International standard setting guidelines for corporate environmental management.

ISO 14971

Standard specifying risk management for medical devices.

ISO 22000

International standard for food safety management systems.

ISO 45001

International standard defining requirements for occupational health and safety management systems (OHSMS).

ISO 9001

International standard for quality management systems.

ISO/TS 16949

Quality standard specific to the automotive industry.

M

Machining

A manufacturing process that removes material from a raw piece to create specific shapes and dimensions.

Manufacturer

A company or individual responsible for producing goods or products from raw materials. The manufacturer is responsible for the entire production process, from product conception to final delivery to the customer, ensuring quality and compliance with applicable specifications and standards.

Manufacturing Execution System (MES)

Software used to monitor and control manufacturing operations.

MAPA (Ministry of Agriculture, Livestock, and Supply – Brazil)

Brazilian government body responsible for regulating and inspecting agricultural products.

Master Sanitation Schedule (MSS)

Document detailing cleaning and sanitization procedures in a food production facility.

Material Planning

Management of the quantity and timing of material acquisition required for production.

Modular Assembly

Assembly technique where pre-fabricated modules are put together to form the final product.

MRP (Manufacturing Resource Planning)

System that plans the acquisition and use of materials, aligning inventories with production needs.

MSA (Measurement Systems Analysis)

Analysis of measurement systems, evaluating the accuracy and reliability of measurement methods.

MTBF (Mean Time Between Failures)

Average time between equipment failures.

MTTR (Mean Time to Repair)

Average time required to repair equipment.

P

Packing

Packaging and preparation of products for transportation.

Pareto Diagram

A technique that helps prioritize improvement actions based on the 80/20 principle.

PDCA (Plan-Do-Check-Act)

Continuous improvement cycle used in various processes.

Pest Control

Set of measures to prevent and eliminate pests in food production environments, ensuring product safety.

Pharmacopoeias

Set of pharmaceutical codes establishing minimum quality requirements for pharmaceutical inputs, medicines, and healthcare products (e.g., European, U.S., or Brazilian pharmacopoeia).

Pharmacovigilance

Monitoring adverse effects and drug safety.

Picking

Selection of items from inventory to fulfill orders.

Pilot Batch

Batches produced to verify process and equipment suitability before large-scale production.

Poka Yoke

Device or process that prevents human errors.

PPAP (Production Part Approval Process)

Process for approving production parts.

PPE Management

Control of the supply, use, and maintenance of Personal Protective Equipment (PPE).

PPE Record Sheet

A document recording the issuance and use of Personal Protective Equipment by employees.

PPM (Parts Per Million)

Quality measurement indicating the number of defects per million parts produced.

Predictive Maintenance

Technique to predict equipment failures before they happen.

Prerequisite Program (PPR)

Set of basic practices and conditions necessary to maintain a hygienic food production environment.

Preservatives

Substances added to food to prevent deterioration caused by microorganisms.

Preventive Maintenance

Regular maintenance to prevent failures.

Problem Solving

A structured process for identifying and correcting failures.

Process Automation

The use of technology to increase efficiency, reduce errors, and improve product quality and compliance.

Process Engineering

Focuses on creating and improving production processes, ensuring efficiency, quality, and waste reduction.

Process Simulation

Use of virtual models to test and optimize production processes.

Process Validation

A set of activities proving that a process can consistently produce products of predefined quality in an integral and reproducible manner.

Processed Foods

Food products that have undergone some type of industrial processing.

Product Development

The process of creating and improving new products and components.

Product Engineering

The field responsible for designing, developing, and optimizing products, considering functionality, cost, and feasibility.

Product Life Cycle

The stages a product goes through, from conception to market discontinuation.

Product Safety

Guarantee that the product does not pose risks to consumers.

Product Stability

Evaluation of product durability and safety over time.

Production Planning and Control (PPC)

Management of production to meet demand.

Project Management

Planning and execution of development and production projects.

Prototypes

Initial models of a product created for testing and validation before large-scale production.

Prototyping

Creation of initial product models for testing and validation.

R

Raw Material

Material used as an input in product manufacturing.

Recall

Notification for repair or replacement of defective products already in customer use.

Recall (Food & Beverages)

Process of removing non-compliant products (due to quality, food safety, or regulatory issues) from distribution channels, including those already in consumer possession. Involves consumer communication, often through media announcements, to protect public health and remove unsafe food from the supply chain.

Regulament

Set of rules established by competent authorities to ensure food safety and quality.

Research, Development, and Innovation (RD&I)

Process aimed at creating and improving products, technologies, and processes to meet market demands or innovate.

Reverse Logistics

Process of returning products or waste for recycling, disposal, or reuse.

RFMEA (Reverse Failure Mode and Effects Analysis)

Reverse analysis to identify potential failure modes in products already in use.

Risk Management

Ongoing process aimed at identifying, analyzing, evaluating, prioritizing, mitigating, and monitoring events that may affect an organization's objectives.

Robotics

Use of robots to automate production processes.

Root Cause

An analysis method to identify the primary cause of a nonconformity or food safety issue.

Root Cause Analysis (RCA)

A methodology used to identify the root cause of problems.

S

Safety Data Sheet (SDS)

A document providing information on the hazards of chemical products and safety measures. Previously known as MSDS.

Safety Inspections

Regular evaluations to identify and correct workplace hazards.

SCADA (Supervisory Control and Data Acquisition)

Real-time monitoring and control system for industrial processes.

Scope of Actions

The range of measures taken to correct or improve processes.

Second-Party Audit

Untitle

Semi-Finished Products

Products that have undergone part of the production process but are not yet finalized.

Sensory Analysis

A scientific discipline used to evoke, measure, analyze, and interpret reactions to the characteristics of food and materials as perceived by the senses of sight, smell, taste, touch, and hearing.

Shelf Life

The period during which food maintains its quality and safety for consumption.

Shop Floor

Production area where products are manufactured.

Six Sigma

A process improvement methodology focused on defect reduction.

Skip lote

A reduced inspection method applied to selected batches based on consistent quality.

Special Characteristic

Critical requirements of a product that affect its safety or functionality.

Stamping Process

Metal forming technique used to produce automotive parts.

Standard

Document establishing technical requirements and criteria to ensure product and service quality and safety.

Standard Operating Procedure (SOP)

Detailed instructions for performing specific tasks consistently and safely.

Statistical Process Control (SPC)

A technique that uses statistical methods to monitor and control production process quality.

Subcomponents

Smaller parts that make up a larger product.

Supplier Management

Coordination and evaluation of suppliers within the supply chain.

Supplier Qualification

Process of evaluating and selecting suppliers based on quality and risk criteria, also known as supplier approval.

Supply Chain Management (SCM)

Coordination of all processes involved in product production and delivery.

Sustainability

Practices aimed at minimizing the environmental impact of production.

T

Takt time

The production pace required to meet customer demand.

Technology Transfer

The process of transferring knowledge and manufacturing processes from one location to another.

Temperature and Pressure Control

Monitoring and adjusting these critical parameters during industrial processes to ensure quality and efficiency.

Testes não destrutivos

Inspection methods that assess integrity without compromising the material.

Third-Party Audit

An independent external audit conducted by a third-party entity, such as a certification body, to verify an organization's compliance with specific standards and regulations, usually with the aim of obtaining certification.

Tier 1

Direct supplier to OEMs (Original Equipment Manufacturers).

Top Management

The group of executives responsible for the strategic and operational management of a company.

Torque

A measure of the rotational force produced by a vehicle’s engine.

Total Productive Maintenance (TPM)

Strategy to maximize equipment efficiency.

Total Quality Management (TQM)

Total Quality Management (TQM) is a comprehensive management philosophy and approach focused on long-term organizational success through customer satisfaction. At its core, it is an integrative system that engages all employees in the continual improvement of processes, products, and services.

This approach is built on key principles, including a primary focus on meeting customer expectations, the active involvement of all employees, and a commitment to fact-based decision-making. TQM emphasizes a strategic, process-oriented approach where effective communication binds these elements together to foster a culture of quality.

Toyota Production System (TPS)

A production model emphasizing efficiency and waste elimination.

Traceability

Ability to track the origin and history of a product and/or critical information throughout its entire lifecycle.

Training Matrix

Tool for mapping employee competencies and identifying training needs.