CAD: Computer-Aided Design (CAD) can be defined as the creation, modification, analysis and optimization of a new component using a computer.

 CAD involves 3 major elements:-

     1. Hardware

     2. CAD software and

     3. The user

The primary function of CAD involves design, analysis and application to manufacturing. An object drawn with CAD can be analyzed interactively on the CAD screen and the physical information can be extracted from it.

In an engineering sense, Cad also incorporates finite-element analysis, stress analysis, heat transfer analysis, and fluid flow analysis and so on. I.e. which enables a part to be constructed and tested virtually before any physical object is manufactured.

CAM: computer-Aided manufacturing (CAM) can be defined as the application of computers to plan, process, manage and control various operations in a manufacturing organization either with direct or indirect computer interface with the available resources.