THE INDUSTRIAL IoT

DICTIONARY FOR
MANUFACTURING
SECOND EDITION

BY GR AHAM IMMERMAN, VICE PRESIDENT OF MARKE TING, MACHINEME TRICS

Glossary

In the age of Industry 4.0, there are so many buzzwords being thrown
around the world of manufacturing that it’s difficult to keep track
of them all. What’s the difference between Industry 4.0, IIoT, and
Digital Transformation? What about Artificial Intelligence vs. Machine
Learning? Condition Monitoring vs. Performance Monitoring? Is the
Digital Twin your company’s evil replicant or a new way to approach
continuous process improvement?

At MachineMetrics, we work with manufacturers at different

stages of their digital transformations; many of whom have very
different levels of understanding regarding these concepts and
definitions. Some of our customers are already immersed in their
digitization efforts, have a deep knowledge of the latest and greatest
technology/industry standards, and speak the language of IIoT
terminology fluently. Some other manufacturers who might not have
the same background in technology are just embarking on their
transformation journey, and are often either underexposed or even
overwhelmed with IIoT lingo.

That’s why we figured it would be helpful to create “The

MachineMetrics IIoT Manufacturing Dictionary:” a reference
resource for those seeking definition or better understanding
of any buzzword, keyword, or term pertaining to the new age
of manufacturing. The following is the Second Edition of “The
MachineMetrics IIoT Manufacturing Dictionary,” and as this
dictionary continues to evolve, we welcome any and all definition
feedback, definition requests, and definition refinement.
M A C H I N E M E T R I C S | T H E I N D U S T R I A L I oT D I C T I O N A R Y F O R M A N U FA C T U R I N G

ADAPTOR (CLOUD) ARTIFICIAL INTELLIGENCE (AI)

A software utility that controls the transfer of A technology that gives computers the ability to
information between the machine and a cloud learn based on data, previous experiences, and their
provider environment in order to make decisions that will
maximize results.
ADDITIVE MANUFACTURING/3D PRINTING
The process of building a three dimensional ASSET MONITORING
object from a computer design model, usually by The process of monitoring all activity associated
successively adding material layer by layer. with a particular machine, including but not limited
to, production, performance, quality, health, etc.
ADVANCED MANUFACTURING
The process of leveraging the most advanced AUGMENTED REALITY
technology available at the current time in order to A technology that superimposes a computer-
maximize the output and/or product quality of a generated image on a user’s view of the real world.
manufacturing facility.
AUTOMATION
THE ANALYTICS JOURNEY The use of largely automatic equipment in a system
The path that each manufacturer follows as they of manufacturing or other production process. In
embrace digital transformation. Within the Analytics manufacturing, automation includes the use of
Journey, there are four distinct steps: control systems and technologies to reduce the
need for human input in the production of goods.
1. Descriptive Analytics allows you to see what is
happening right now. BENCHMARKING
Evaluating or measuring performance against
2. Diagnostic Analytics answers the question, a standard. Benchmarking is an important step
“Why is it happening?” in evaluating an organization’s manufacturing
performance. By looking at how other organizations
3. Prescriptive Analytics identifies what you are perform on key manufacturing measures, an
going to do about it. organization can focus improvement efforts where
they are needed most.
4. Predictive Analytics helps predict what will
happen in the future.

APPLICATION PROGRAMMING
INTERFACE (API)
A collection of commands and protocols used
to interact with an operating system, device, or
specific software component. In IoT, an API lets the
developer access the functionality of a device or
sensor, such as a thermometer’s readings. APIs can
be public or restricted to authorized users only.

B E N C H M A R K I N G D ATA

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BIG DATA
Large compilations of data that can be analyzed
in order to reveal patterns, trends, and associations.
Big data is especially used in order to detect
bottlenecks in productivity, predict outcomes,
and find patterns that otherwise wouldn’t be
noticeable through informal analysis.

BLUETOOTH
Short range wireless technology standard which
operates on the 2.4 Mz band. Bluetooth can be used CONDITION MONITORING
for sending both data and audio, with popular uses
including wireless headsets and cordless keyboards. DATA CENTER
A collective term for the physical site, network
(THE) CLOUD elements, systems, etc., that support computing
An information technology paradigm that enables and network services.
ubiquitous access to shared pools of configurable
system resources and higher-level services that can DATA TRANSPORT
be rapidly provisioned with minimal management Moving data from one storage location to another.
effort, often over the Internet.
DESCRIPTIVE ANALYTICS
CLOUD ANALYTICS Using data aggregation and data mining to
The process of carrying out data analysis using understand what is happening right now and
cloud computing. what has happened in the past.

COMPUTER NUMERIC CONTROL DIAGNOSTIC ANALYTICS

(CNC) MACHINE Diagnostic analytics is a deeper look at data
A machine tool that utilizes automated control to attempt to understand the causes or the “why”
of tooling by means of a computer. This processes of events and behaviors.
and shapes material to meet tolerances specified
by a blueprint, through a coded program.

COBOT
Collaborative robot that interacts with humans
within a shared space.

CONDITION MONITORING
The process of monitoring a parameter of condition
in machinery (vibration, temperature etc.), in order
to identify a significant change which is indicative
of a developing fault. It is a major component of
predictive maintenance.
D I A G N O S T I C A N A LY T I C S

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DIGITAL MANUFACTURING DIRECT NUMERIC CONTROL (DNC)

Digital manufacturing is the use of an integrated, Also known as Distributed Numerical Control (also
computer-based system comprised of simulation, DNC), this is a common manufacturing term for
3D visualization, analytics, and collaboration tools networking CNC machine tools. DNC networking
to create product and manufacturing process or DNC communication is always required for CAM
definitions simultaneously. programs to run on a CNC machine control.

THE DIGITAL FACTORY ENTERPRISE RESOURCE PLANNING (ERP)

Also called the “smart factory,” this includes the The systems and software packages used by
use of advanced algorithms and machine learning organizations to manage day-to-day business
to refine actions that drive autonomous or semi- activities, such as accounting, procurement, project
autonomous decisions within production equipment. management, and manufacturing. ERP systems tie
Additionally, the digital factory includes the advance together and define a plethora of business processes
of AI and deep analytics allowing the possibility of and enable the flow of data between them.
moving into connection of processes rather than
linear defined tasks. EDGE COMPUTING (THE EDGE)
A distributed computing paradigm which brings
DIGITAL TRANSFORMATION computation and data storage closer to the location
Digital transformation is the transformation of where it is needed to improve response times and
business and organizational activities, processes, save bandwidth. Modern edge computing significantly
competencies, and models to fully leverage the extends this approach through virtualization
changes and opportunities of a variety of digital technology that makes it easier to deploy and run
technologies and their impact across operations a wider range of applications onthe edge servers.
in a strategic and prioritized way, with present
and future shifts in mind.

DIGITAL TWIN
A reference to a digital replica of physical assets,
processes, and systems that can be used for various
purposes. A digital twin continuously learns and
updates itself from multiple sources to represent its
near real-time status, working condition, or position.

DIGITAL THREAD
A communication framework that connects
traditionally silo-ed elements in manufacturing
processes and provides an integrated view of MACHINEMETRICS EDGE DE VICE

an asset throughout the manufacturing lifecycle.

ETHERNET IP
DIGITIZATION One of the manufacturing communication protocols
The process of transforming information into a used for transmitting information between electronic
format that can be understood by a computer in order devices. Ethernet IP was originally developed by
for that data to be used in computational calculations. Rockwell Automation.

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EQUIPMENT AS A SERVICE (EaaS) machine. Typically HMI’s are meant to make it as

The process in which production systems, machines, easy as possible for a person to control a machine
or equipment are not sold but instead leased to with little difficulty.
companies. EaaS takes a step beyond service
contracts with more effective operations and a simpler IDENTITY AND ACCESS MANAGEMENT (IAM)
financial model based on pay per use models. A framework of business processes, policies, and
technologies that manage digital identities (e.g. used
THE FOG for authentication and access management)
In order to improve efficiency and reduce latency,
a portion of onsite data gets uploaded to the cloud INDUSTRY 4.0
and another portion gets redirected to an onsite The current trend in the manufacturing industry
smart storage device like a smartphone. that uses a combination of IoT, big data, and cloud
computing in order to develop factories that can make
GATEWAY decisions based on large amounts of data. A couple
A link between two computer systems or programs, benefits that Industry 4.0 offers is the ability to detect
so they can share information with each other. The bottlenecks and deficiencies using big data, high level
router for your home Internet is one type of gateway. customization, and automation of production.

HIGH FREQUENCY MACHINE DATA INDUSTRIAL AUTOMATION

Data sampled from a machine at rates that are The use of set technologies and automatic control
faster than human perception, usually much greater devices that results in the automatic operation and
than 1 Hz. (Think about how we cannot perceive control of industrial processes without significant
individual frames of a movie displayed at 24 Hz.) human intervention to achieve superior performance
Depending on the sampling rate, high frequency data compared to manual control.
can potentially probe effects at the natural physical
scales of machining, such as individual turns of a INDUSTRIAL IoT (IIoT)
spindle (100’s to 1000’s of Hz) or machine/material Also referred to as Industry 4.0 or Industrie 4.0, this
vibrations (up to 10,000’s of Hz). It can be useful is a sub-discipline of IoT, encompassing connected
for, e.g., monitoring tool wear and stability of the large-scale machinery and industrial systems such
machining process. Obtaining high frequency data as factory-floor monitoring, HVAC, smart lighting,
often requires specialized equipment or access to and security. This includes machine-to-machine
specialized channels in a machine’s control. communication where equipment can send real-time
information to an application so operators can better
HYPERTEXT TRANSFER PROTOCOL (HTTP) understand how efficiently that equipment is running.
The underlying protocol used by the World Wide
Web. HTTP defines how messages are formatted INDUSTRIAL IoT PLATFORM
and transmitted, and what actions Web servers A set of integrated software capabilities spanning
and browsers should take in response to various efforts to improve asset management decision making
commands. as well as operational visibility and control for plants,
infrastructure, and equipment within asset-intensive
HUMAN-MACHINE INTERFACE (HMI) industries. The IIoT platform may be consumed as a
A user-interface consisting of hardware and software technology suite or as an open and general-purpose
that lets a person send requests/commands to a application platform, or both in combination. The

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EDGE PLATFORM IoT PLATFORM APPLICATIONS

FACTORY MACHINEMETRICS APPLICATIONS

MachineMetrics Multi-Tenant Cloud

MACHINES PROTOCOLS ADAPTORS EDGE MANAGEMENT USERS

Sensor PLC Factory Worker Manufacturing Executive Machine Builder

Operational Workflow Triggers

Data

APPLICATIONS
Time Series
Data REST & GraphQL APIs
Stream
Analytics

RAW Data Data Lake Analytics Custom Custom Operator Custom Workflow Custom
Storage
Dashboards Views Development Analytics
EDGE Low
Frequency

Connector High
USE CASES
Supervisor Frequency
DATA & Data Scientists
ENGINEERING Data Analysts
TEAM
Software Engineers
Production Condition Predictive Process
Monitoring Monitoring Maintenance Optimization

EDGE ANALYTICS MANUFACTURER

Manufacturer Cloud or on-premise servers INTEGRATIONS
RAW Data Sync
Anomaly Detection Custom Algorithms

Local Storage CMMS Business ERP Quality

Intelligence

T H E M A C H I N E M E T R I C S I I oT P L A T F O R M

platform is engineered to support the requirements of LIGHTS OUT MANUFACTURING

safety, security and mission criticality associated with The ability for a manufacturer to run fully automated
industrial assets and their operating environments. jobs, requiring no human intervention or human
The IIoT platform software that resides on devices — presence on-site.
such as, controllers, routers, access points, gateways
and edge computing systems — is considered part of LOW FREQUENCY MACHINE DATA
a distributed IIoT platform. (Gartner, 2019). Data sampled from a machine at rates that are
close to human perception, usually at frequencies
INTERNET OF THINGS (IoT) in the ballpark of 1 Hz. Low frequency data is useful
The concept of connecting otherwise separate for general monitoring of machine state over time
machines or data sources so that people can make (uptime vs downtime, alarms, coolant on/off, etc),
better decisions and actions faster. This large number as well as providing an approximate picture of the
of data gathering devices is the backbone of Industry machining process.
4.0 that allows people to make decisions in alignment
with varying productivity goals. MACHINE 2 MACHINE (M2M)
The ability of machines to communicate together and
LEAN MANUFACTURING make decisions using information without the need of
Also known as “lean production,” lean manufacturing human intervention.
is a methodology that focuses on using a specific
set of tools to help identify and minimize waste MACHINE-TO-PERSON (M2P)
within manufacturing systems while simultaneously Analytics for big data in a human readable form
maximizing productivity. e.g., dashboards.

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MACHINE DATA operations with smart digital technology, machine

Also known as Machine Generated Data, this learning, and big data.
is digital information created by the activity of
computers, mobile phones, embedded systems, MANUFACTURING ANALYTICS
and other networked devices. A set of advanced analytical tools that help generate
insights from historical and real-time process data
MACHINE LEARNING in order to identify relationships and patterns from
Machine learning is a method of data analysis that various manufacturing processes.
automates analytical model building. It is a branch of
artificial intelligence based on the idea that systems MANUFACTURING EXECUTION
can learn from data, identify patterns and make SYSTEMS (MES)
decisions with minimal human intervention. Computerized systems used in manufacturing,
to track and document the transformation of raw
MACHINE MONITORING materials to finished goods.
Also called Condition Monitoring, this is the practice
of monitoring electrical equipment through the MANUFACTURING OPERATIONS
PLC and additional sensors in order to accumulate MANAGEMENT (MOM)
diagnostic data. A collection of systems for managing end-to-end
manufacturing processes in order to optimize
MACHINE UTILIZATION efficiency.
The ratio of time a machine has run within
a time-frame compared to the total amount MESSAGE QUEUING TELEMETRY
of time a machine can actually run within that TRANSPORT (MQTT)
same timeframe. A messaging protocol that works on top of TCP/
IP and is designed for use cases with a low code
footprint or limited network bandwidth. MQTT is
great for collecting data from large networks of
small devices into a single location (e.g. in the
cloud) for analysis.

MODBUS
A serial communications protocol originally
published by Modicon in 1979 for use with its
programmable logic controllers. Modbus has
become a de facto standard communication
protocol and is now a commonly available means
of connecting industrial electronic devices.
M A C H I N E U T I L I Z AT I O N R E P O R T I N G

MTConnect
MANUFACTURING 4.0 A protocol designed for the exchange of data
Also called “Industry 4.0,” this encompasses IIoT and between shop floor equipment and software
smart manufacturing where a connected ecosystem applications used for monitoring and data analysis.
is created by combining physical production and

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OPEN PLATFORM COMMUNICATIONS

(OPC)
The interoperability standard for the secure
and reliable exchange of data in the industrial
automation space and other industries. Developed
and maintained by the OPC Foundation, this
standard is platform independent and ensures the
seamless flow of information among devices from
multiple vendors.

OPC UNIFIED ARCHITECTURE (OPC UA)

A machine-to-machine communication protocol OOE PERFORMANCE DASHBOARD
for industrial automation developed by the OPC
Foundation that focuses on communicating
with industrial equipment and systems for data PLANT INFORMATION MANAGEMENT
collection and control. SYSTEM (PIMS)
A system that collects and integrates information
OPERATIONAL INTELLIGENCE from a variety of sources about a given production
A category of real-time, dynamic business analytics process.
that delivers visibility and insight into data,
streaming events, and business operations. PLATFORM-AS A-SERVICE (PaaS)
A subscription-based service model that leverages
OVERALL EQUIPMENT EFFECTIVENESS third-party hardware as well as software for
(OEE) connection and data retrieval within a factory. A
A valuable metric that measures the efficiency PaaS system for manufacturing turns machine data
of a machine. OEE takes into consideration the into actionable insights that improve the operation of
Availability, Performance, and Quality of a machine. people, systems, and machines on the factory floor.
In mathematical terms, OEE = Availability ×
Performance × Quality PREDICTIVE ANALYTICS
The use of data, statistical algorithms, and machine
OVERALL OPERATIONAL EFFECTIVENESS learning techniques to identify the likelihood of
(OOE) future outcomes based on historical data. The goal
A metric that takes into account Availability, is to go beyond knowing what has happened to
Performance, and Quality as well as unscheduled providing a best assessment of what will happen in
time that occurs during normal working shifts. OOE the future.
gives you a more realistic gauge of performance
during time that your machines could have PREDICTIVE MAINTENANCE
been running—but weren’t because there was Techniques designed to help determine the
no scheduled work. Thus, OOE = Performance × condition of in-service equipment in order to predict
Quality × Availability (where Availability = Actual when maintenance should be performed. This
Production Time/Operating Time) approach promises cost savings over routine or
time-based preventive maintenance, because tasks
are performed only when warranted.

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PRESCRIPTIVE ANALYTICS RADIO FREQUENCY

This step of The Analytics Journey takes predictive IDENTIFICATION (RFID)
analytics one step further. While predictive A wireless communication technology that uses
analytics can tell you what might happen next, radio frequency to power passive tags (small circuit
prescriptive analytics applies many layers of antenna) to uniquely identify people or objects.
machine learning to suggest options and actions
for mitigating future risks. REAL-TIME DATA ANALYTICS
The analysis of data as soon as that data becomes
PREVENTATIVE MAINTENANCE available. Users get insights immediately (or very
The care and servicing by personnel for the rapidly) after the data enters the system and are able
purpose of maintaining equipment in satisfactory to draw conclusions.
operating condition by providing for systematic
inspection, detection, and correction of incipient SENSOR DATA
failures either before they occur or before they The output of a device that detects and responds to
develop into major defects. some type of input from the physical environment.
The output may be used to provide information,
input to another system, or guide a process.

SHOP FLOOR VISIBILITY

Making data visible on the shopfloor via tablets and/
or larger displays for operators and managers to
see. This could include the display of information
like which machines are running, which machines
are down, cycle times, part count, and more.

SMART FACTORY
Represents a leap forward from more traditional
automation to a fully connected and flexible
P R E V E N TAT I V E M A I N T E N A N C E system—one that can use a constant stream of data
from connected operations and production systems
to learn and adapt to new demands.
PRODUCT DATA MANAGEMENT (PDM)
Within product lifecycle management (PLM), SMART MANUFACTURING
the business function that is responsible for the This marries information, technology, and human
management and publication of product data. ingenuity to bring about a rapid revolution in the
development and application of manufacturing
intelligence to every aspect of business
PRODUCT LIFECYCLE MANAGEMENT (PLM)
The process of managing the entire lifecycle of a SOFTWARE AS A SERVICE (SaaS)
product from inception through engineering design A software licensing and delivery model in which
and manufacturing. software is licensed on a subscription basis from
a third-party provider who hosts the application
and makes it available to customers over a secure

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Internet connection. SaaS removes the need TOTAL EFFECTIVE EQUIPMENT

for organizations to install and run applications PERFORMANCE (TEEP)
on their own computers or in their own data Very similar to OOE, TEEP takes into account non-
centers. This eliminates the expense of hardware operator time such as off shifts and holidays. If
acquisition, provisioning, and maintenance, as well you are attempting to maximize utilization of your
as software licensing, installation, and support. machines, no matter what the time, then TEEP
could be an interesting metric. Therefore, TEEP
STREAMING DATA = Performance × Quality × Availability (where
Data that is continuously generated by different Availability = Actual Production Time/All Time).
sources. This can also be used in reference data or
content delivered to specific devices via an internet UNIVERSAL MACHINE TOOL INTERFACE
connection. That data can then be accessed (UMATI)
by users immediately without needing to be An open standard for connecting machine tools and
downloaded first. peripherals to customer-specific IT ecosystems.

SUPERVISORY CONTROL AND DATA VIRTUAL PRIVATE CLOUD (VPC)

ACQUISITION (SCADA) An on-demand, configurable pool of shared
A control system architecture that uses computers computing resources allocated within a public cloud
and networked data communications to monitor and environment, providing a certain level of isolation
control factory floor equipment. between the different organizations.

TRANSMISSION CONTROL PROTOCOL/ VIRTUAL PRIVATE NETWORK (VPN)

INTERNET PROTOCOL (TCP/IP) A technology that creates a safe and encrypted
The language used to access the Internet. connection over a less secure network, such as the
internet. VPN technology was developed as a way
TIME-SERIES DATA to allow remote users and branch offices to securely
Data that collectively represents how a system, access corporate applications and other resources
process, or behavior changes over time.

T I M E- S E R I E S D ATA

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A BOUT M ACHINEME TRIC S
MachineMetrics is manufacturing’s first Industrial IoT Platform for
Machines. We transform analytics into action through universal machine
connectivity, cloud data Infrastructure, and communication workflows
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have connected thousands of machines to MachineMetrics across global
factories. Our platform is enabling these companies to deliver the right
information to the right person at the right time to improve their machine
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