The principle of hierarchical equipment management involves organizing equipment into distinct tiers to prioritize management tasks, emphasize key aspects at each level, and enhance the operational efficiency of smart factories.

Predictive maintenance integrates condition monitoring, fault diagnosis, failure state prediction, maintenance decision support, and maintenance activities, representing an emerging equipment management and maintenance approach in smart factories.

The production management system supports multiple BOM versions and various formulation options for a single product. It automatically calculates material requirements based on production order quantities, directly generates material requisition sheets, and thereby ensures efficient material utilization.

The correctness of employees' operational procedures directly impacts both the operational efficiency and the service life of equipment in smart factories.

CAD and CAM refer to Computer-Aided Design and Computer-Aided Manufacturing in production workshops, which play a crucial supporting role in lean production.