--- title: Basic Manufacturing Terms and Concepts description: A beginner-friendly glossary for using manufacturing features in DigitBridge. --- [Skip to content](https://support.digitbridge.com/digitbridgeclientknowledgebase/basic-manufacturing-terms-and-concepts#main-content) English Show submenu for translations [More support](https://support.digitbridge.com/digitbridgeclientknowledgebase/kb-tickets/new?hsLang=en) ![white-logo-db.png\]](https://support.digitbridge.com/hs-fs/hubfs/white-logo-db.png?height=50&name=white-logo-db.png) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://support.digitbridge.com/digitbridgeclientknowledgebase/kb-tickets/new) - Go to digitbridge.com Go to digitbridge.com Hello. How can we help you? - There are no suggestions because the search field is empty. 1. [DigitBridge Knowledge Base](https://support.digitbridge.com/digitbridgeclientknowledgebase?hsLang=en) 2. [Manufacturing](https://support.digitbridge.com/digitbridgeclientknowledgebase/manufacturing?hsLang=en) 3. [Informative](https://support.digitbridge.com/digitbridgeclientknowledgebase/manufacturing?hsLang=en#informative) # Basic Manufacturing Terms and Concepts ## A beginner-friendly glossary for using manufacturing features in DigitBridge. DigitBridge’s manufacturing tools offer robust functionality for managing production workflows. Whether you're new to manufacturing or just unfamiliar with the platform’s terminology, this guide will help you understand the key terms and concepts you'll encounter. --- ### Factory A factory is a defined production center within DigitBridge. It serves as the umbrella location where manufacturing processes occur. Each factory can be linked to specific product, material, and semi-warehouses to define the flow of inventory. --- ### Bill of Materials (BOM) A BOM is a blueprint that outlines all the materials, components, and process steps required to manufacture a product. Each BOM is tied to one finished goods SKU but can be reused across multiple SKUs within a WIP job. --- ### Work in Progress (WIP) WIP represents the live job tracking for a production run. It captures the actual quantity being produced, schedules, progress, and resource usage. WIPs reference one or more BOMs and can include multiple finished goods SKUs. --- ### Finished Goods These are the final products resulting from a completed manufacturing process. Finished goods are typically stored in the **Product Warehouse** and are ready for sale or distribution. --- ### Raw Materials These are the components and ingredients used in production. They’re pulled from the **Material Warehouse** and consumed according to the BOM and WIP. --- ### Semi-Finished Goods / Semi-SKUs Semi-finished goods are partially completed products that require further steps before becoming finished goods. These are stored in the **Semi-Warehouse** and are useful in multi-stage production workflows. A **Semi-SKU** refers to the SKU assigned to a semi-finished item. --- ### Work Hours This is an estimated duration used in BOMs and WIPs to track labor or machine time. It’s typically entered in hours and may influence costing or scheduling reports. --- ### BOM Quantity and Base - **BOM Quantity** refers to how much of a particular material or process is needed for production. - **Base** determines the decimal precision of that quantity. For example, a base of 3 supports values down to 0.001. --- ### Processes These are the individual steps in a manufacturing workflow. DigitBridge supports four types: - **In-House Production** – Performed by your internal team. - **Process Outsourced** – Sent to external vendors. - **Instruction** – Non-material steps (e.g., quality checks or cleaning). - **Expense** – Associated costs that aren't tied to materials (e.g., labor, energy use). --- ### Adjustment Rate **Adjustment Rate** typically refers to a percentage used to modify or fine-tune estimated work hours, costs, or yields—usually to account for real-world variances like: - **Inefficiencies** in production - **Expected material loss** or spoilage - **Time padding** for scheduling - **Labor overruns** or cost buffers **Example:** If your estimated work hours for a job are 100 hours, but you want to add a 10% buffer to account for typical delays or inefficiencies, you might set an **Adjustment Rate of 10%**, which recalculates your expected time to 110 hours. The exact effect can vary based on how your system is configured, but generally: - **Positive adjustment rates** increase totals (e.g. time, cost). - **Negative adjustment rates** decrease them (e.g. for unusually efficient runs). ### Yield This is the output of finished goods at the end of a WIP job. Recording the **Final Goods Yield** updates your inventory and completes the manufacturing process. --- ### Why It Matters Understanding these core terms makes it easier to: - Set up your factories and production flows correctly - Track costs and progress accurately - Interpret reporting outputs and system notifications - Train your team on how to use the platform effectively --- ### Related Guides - [How Do I Create and Manage a Bill of Materials (BOM)?](https://support.digitbridge.com/digitbridgeclientknowledgebase/how-do-i-create-and-manage-a-bill-of-materials-bom?hsLang=en) - [How Do I Create and Manage a Work in Progress (WIP) Job?](https://support.digitbridge.com/digitbridgeclientknowledgebase/how-do-i-create-and-manage-a-work-in-progress-wip-job?hsLang=en) - [What Is the Difference Between a BOM and a WIP?](https://support.digitbridge.com/digitbridgeclientknowledgebase/what-is-the-difference-between-a-bom-and-a-wip?hsLang=en) - [What Is a Semi-SKU and When Should I Use One?](https://support.digitbridge.com/digitbridgeclientknowledgebase/what-is-a-semi-sku-and-when-should-i-use-one?hsLang=en) - 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