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Product Development And Manufacturing Terminology-Part 1

by | May 4, 2023 | 0 comments

People Sitting In Front of Computer

Does your NPI require an RFQ, but you already signed a SOW on top of your
shipping is LCL and DDU to the point where your head is spinning? Acronyms
can be helpful – especially in business – but only if you know what they mean!
Product development acronyms can be especially challenging to understand,
as you work through the process of bringing your new idea to market!
To make things simple, we’ve compiled a list of the most common product
development acronyms you’ll come across and how to decipher them. Read
on to learn the lingo!

Manufacturing Acronyms

DDP (Direct Duties Paid): A term used in international shipping that
means that all import duties and taxes have been included in the final
cost of the product and will be paid by the supplier.

DDU (Direct Duties Unpaid): A term used in international shipping that
means that all import duties and taxes are the responsibility of the
recipient and must be paid by the recipient upon delivery of the product.

DFM (Design for Manufacturability): A design process that considers
the manufacturing processes and capabilities of the manufacturer in
order to make the product easier and less expensive to produce.

EXW (Ex-works): A pricing arrangement in which the buyer is
responsible for all costs and risks involved in getting the goods from the
manufacturer’s factory or works to the final destination.

FOB (Freight On Board): A pricing arrangement in which the cost of
shipping the goods is included in the price, but the risk and responsibility for the goods is transferred from the seller to the buyer when the goods are loaded onto the shipping vessel.

HTS (Harmonized Tariff Schedule): A standardized system of
classifying goods for the purposes of assessing customs duties and

LCL (Less than Container Load): A shipping term used when the
volume of goods being shipped is less than a full shipping container and
multiple shipments are combined into one container for transportation.
Helpful for small products or when teams are on a strict budget for NPI.

MNDA (Mutual Non-disclosure Agreement): A legal contract between
two parties in which both parties agree not to disclose confidential
information shared by either party.

MOQ (Minimum Order Quantity): The minimum quantity of a product
that a manufacturer is willing to produce or sell.

MSA (Manufacturing Service Agreement): A legal contract between a
manufacturer and a customer specifying the terms and conditions of the
manufacturing services to be provided by the manufacturer to the

MVP: Minimum Viable Product (MVP) is a product with enough features
to satisfy early adopters and provide valuable feedback for future
development. It is a way for businesses to validate their ideas and
assess demand for a product before investing heavily in its

NDA (Non-disclosure Agreement): A legal contract between two
parties in which one party agrees not to disclose confidential information
shared by the other party.

NPI (New Product Introduction): The process of introducing a new
product into the market, including the design, development, testing, and
manufacturing of the product.

OEM (Original Equipment Manufacturer): A company that produces
products used by other companies, who sell them as part of their own
original product.

PD (Product Development): The team that handles the introduction of
new products.

RFQ (Request for Factory Quote): A request from a customer to a
manufacturer for a quote on the cost of producing a specific product.

Sample: A sample is a pre-production mock-up of a product. It is
typically made using mass production machinery, used to test the
design and functionality of a product before it is put into mass

SOW: Statement of Work (SOW) is a document that outlines the scope,
objectives, and deliverables for a project or work effort. It is used to
communicate the project requirements and expectations to all

Prototyping/Production Material Acronyms

ABS (Acrylonitrile Butadiene Styrene): A type of thermoplastic
polymer, commonly used in the manufacture of plastic products.

EVA Foam (Ethylene Vinyl Acetate): A type of foam material used in
the manufacture of a variety of products, including cushioning, insoles,
and athletic equipment.

PE (Polyethylene): A type of thermoplastic polymer commonly used in
the manufacturing of plastic products. PE is popular for its flexibility,
durability, and due to being tear-resistant.

PP (Polypropylene): Another type of thermoplastic polymer
commonly, similar to polyethylene, used in plastic products. While more
expensive than PE, polypropylene is also stronger and the plastic is
easier to see through. PP is FDA and USDA compliant, and more
commonly used in industries like food, electronics and agriculture than

PU (Poly Urethane): A material commonly used in the manufacture of a
variety of products, including clothing, footwear, and upholstery.

Engineering Acronyms

CAD: Computer Aided Design (CAD) is a type of software used for
engineering and 3D modeling. It allows engineers and designers to
create and manipulate digital representations of products or

CNC: Computer Numerical Control (CNC) refers to a type of automated
machining in which a computer is used to control the movement of
machine tools. CNC machining is commonly used in manufacturing
processes to produce high-precision parts.

EE: Electrical Engineering is a branch of engineering that deals with the
study and application of electrical systems, including electrical circuits,
devices, and power generation.

FDM: Fused Deposition Modeling (FDM) is a common method of 3D
printing. It involves melting a plastic filament and depositing it in layer by
layer to build up a 3D object.

ME: Mechanical Engineering is a branch of engineering that deals with
the design, development, and use of machines and tools. It
encompasses various subfields, such as thermodynamics, materials
science, and mechanics.

PCB board: A Printed Circuit Board (PCB) is the base material for an
electronic device, which contains electrical circuits and components. It
acts as a platform for connecting various components in a device.

Sonic/RF Welding: This is a process where two or more materials are
joined together by using high-frequency sound waves. The sound
waves generate friction and heat, which melts and fuses the materials
together. This method is commonly used to create waterproof seams in
jackets or bags.

STL, STP, STEP, SLDPRT, etc.: These are file types used in
engineering and 3D modeling. They are similar to image file formats like
JPG, PNG, or PDF, but are specifically designed for engineering

Design Acronyms

EFP (Engineering for Prototype): The process of engineering a
prototype product for testing and validation purposes.

ID: Ideation/Design (ID) refers to the process of generating ideas and
concepts, and then turning them into a tangible form through design. It
is an important part of the product development process, and often
involves collaboration between multiple stakeholders, such as
engineers, designers, and product managers.

PER (Product Engineering Refinement): The process of improving
and refining the design of a product to optimize it for production and

Tech Pack: A technical specification document for soft goods products,
detailing the materials, construction methods, and assembly instructions
for the product.

UI: User Interface (UI) refers to the visual and interactive elements of a
product or service that a user interacts with. It includes elements like
buttons, text fields, and menus, and is a significant part of UX design.

UX: User Experience (UX) refers to the overall experience a user has
with a product or service. It encompasses a wide range of factors,
including accessibility, usability, and the emotions elicited by a product
or service.

Do You Have a Great New Product Idea? We’re Here to Help!
Klugonyx has been helping individuals and companies take their new ideas
from planning all the way to a completed product. We’re here to make it easy
to pioneer the next big thing. Our team can work with you on product ideation,
engineering, prototyping all the way to manufacturing your final product.
Contact us today to get started!

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  • Hunter Finlay

    Hunter Finlay has been a part of the Product Development and Manufacturing industry for over 5 years and is the Director of Sales and Client Onboarding for Klugonyx. Klugonyx is a full-service Product...

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