x-out (MFG-ME)

Example: SAP Manufacturing Execution (MFG-ME)

To designate a piece on a panel as nonconforming by marking its location with a nonconformance (NC) code that indicates it has been scrapped.The scrapped condition indicates the piece is unusable and cannot be reworked. Usually an operator Xes-out a piece on a panel because the piece failed a test or inspection.You would not x-out cosmetic failures, such as scratches.

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Source: https://help.sap.com/doc/saphelp_glossary/latest/en-US/49/34e08fde7c1ca6e10000000a421ad9/content.htm