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GLOSSARY of TERMS

(Lean Manufacturing and Lean Office Glossary)
3 5 7 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


3

3P: Production Preparation Process. Rapidly designing production processes and equipment to ensure capability, built-in quality, productivity, and Takt-Flow-Pull. The Production Preparation Process minimizes resources needed such as capital, tooling, space, inventory, and time.

3Ds: Working conditions or jobs that are dirty, dangerous, or difficult. 3 ELEMENTS OF DEMAND: The three drivers of customer satisfaction are Quality, Cost, and Delivery.

3 ELEMENTS OF DEMAND:  The three drivers of customer satisfaction are: quality, cost and delivery.

3 ELEMENTS OF JIT: The three elements of JIT are 1) takt time, 2) flow production, and 3) the downstream pull system.

3 PRINCIPLES: The three principles are 1) shop floor (gemba), 2) the actual product (gembutsu), and 3) the facts (genjitsu). The key to successful kaizen is to going to the shop floor, working with the actual product and getting the facts.



5

5M of PRODUCTION: Man, Machine, Material, Method, and Measure. Understand these factors and the establishment of standards are key steps in strengthening the production processes.

5S: The principle of waste elimination through workplace organization. An improvement process, originally summarized by five Japanese words beginning with S, to create a workplace that will meet the criteria of visual controls and lean production. Derived from the Japanese words seiri, seiton, seiso, seiketsu, and shitsuke. In English the 5S are sort, straighten, sweep, standardize, and self-discipline. Some organizations add safety and call this 6S.

5 WHY: A simple but effective method of analyzing and solving problems by asking `why?' five times (or as many times as needed to find the root cause.


7

7 TOOLS OF Quality Control:
Data gathering and analysis tools used for kaizen
activities originally by QC Circles. They are 1) check sheets, 2) cause and effect diagrams, 3) Pareto diagrams, 4) histograms, 5) graphs, 6) scatter diagrams, and 7) broken line graphs.

7 WASTES OF PRODUCTION:
There are 7 types of waste that describe all wasteful activity in a production environment. Elimination of the 7 wastes leads to improved profits. The 7 wastes are 1) Overproduction, Transportation, Motion, Waiting, Processing, Inventory, and Defects.

A

Abnormality Management: Being able to see and quickly take action to correct abnormalities (any straying from Standard Work). This is the goal of standardization and visual management. Continuous waste elimination and problem solving through kaizen are only possible when
the abnormalities are visible.

Activity Based Costing: A management accounting system that assigns cost to products based on the resources used to perform a process (design, order entry, production, etc. These resources include floor space, raw materials, energy, machine time, labor, etc.

Affinity Diagram: A process to organize disparate language information by placing it on cards and grouping the cards that go together in a creative way. Header cards are then used to summarize each group of cards.

Andon: A tool of visual management, originating from the Japanese word for 'lamp'. Most commonly andons are lights placed on machines or on production lines to indicate operation status. Andons are commonly color-coded green (normal operations), yellow (changeover or planned maintenance), and red (abnormal, machine down). Often combined an audible signal such as music or alarms.

Andon Board: A visual control device in a production area, typically a lighted overhead display or board. Andons are used to give the current status of the production system and alert team members to emerging problems or abnormal situations.

Autonomation: Automation with a human touch. Refers to semi-automatic processes where the operator and machine work together. Autonomation allows man-machine separation. Also referred to Jidoka.


B

Backflush: The process of automatically decrementing perpetual inventory records, based on the bill of materials of a given product. Normally triggered by shipment and invoicing to a customer,
backflushing is used to eliminate wasteful inventory transactions.

Balanced Plant:  A plant where capacities of all resources are balanced exactly with market demand

Balanced production: All operations or cells produce at the same cycle time. In a balanced system, the cell cycle time is less than takt time.

Batch Production:  A "Push" system of production where resources are provided to the consumer based on forecasts or schedules.

Batch-and-Queue: Producing more than one piece of an item and then moving those items forward to the next operation before that are all actually needed there. Thus, items need to wait in a queue.

Benchmarking: The process of measuring products, services, and practices against those of leading companies.  A structured approach to identifying a world-class process, then gathering relevant information and applying it within your own organization to improve a similar process.
Comparing key performance metrics with other organization in similar or relevant industries. Establishing standards for improvement based on what others have been able to achieve. Visiting or interviewing peers to learn from what they have done.

Bottleneck: Any resource whose capacity is equal to, or less than the demand placed on it.

Bowling chart:  A form used to track performance (Plan vs. Actual) on Policy Deployment Objectives. Usually reviewed with top management on a monthly basis, but reviewed by the PD team more frequently.

Best-in-Class: A best-known example of performance in a particular operation. One needs to define both the class and the operation to avoid using the term loosely.

Blitz:  A blitz is a fast and focused process for improving some component of business a product line, a machine, or a process. It utilizes a cross-functional team of employees for a quick problem-solving exercise, where they focus on designing solutions to meet some well-defined goals.

Bottleneck:   A process in any part of the enterprise (office, production, sales, etc.) that limits the throughput of the whole process.

Breakthrough objectives:  In Policy Deployment, those objectives characterized by multi-functional teamwork, significant change in the organization, significant competitive advantage and major stretch for the organization. 
Objectives that are ‘stretch goals’ for the organization.  Breakthroughs represent a significant change for the organization providing a significant competitive advantage.  Breakthrough goals are achieved through multi-functional teamwork.

Brownfield:  An existing and operating production facility that is set up for mass-production manufacturing and management methods.

Buffer resources:  A means of meeting customer demand when customer ordering patterns, or takt times, vary.
 


C

Capacity Constraint Resources: Where a series of non-bottlenecks, based on the sequence in which they perform their jobs can act as a constraint.

Catch-Ball: A give-and-take activity performed between different levels of the organization to make sure that critical information on goals and objectives, as well as feedback, is passed back and forth.  A series of discussion between managers and their employees during which data, ideas, and analysis are thrown like a ball. This opens productive dialogue throughout the entire company.

Cause and Effect Diagram: A problem-solving tool used to establish relationships between effects and multiple causes
(also Fishbone Diagram, Ishikawa Diagram). 

CEDAC:  Acronym for Cause and Effect Diagram with the Addition of Cards. CEDAC is a method for involving team members in the problem solving process.

Cells: The layout of machines of different types performing different operations in a tight sequence, typically in a U-shape, to permit single piece flow and flexible deployment of human effort.


Cellular Manufacturing/Cells:  Linking of manual and machine operations into the most efficient combination to maximize value added content while minimizing waste of motion and valuable resources.

Chaku-Chaku:  A method of conducting single-piece flow, where the operator proceeds from machine to machine, taking the part from one machine and loading it into the next.

Change Agent: The catalytic force moving firms and value streams out of the world of inward-looking batch-and-queue.

Change Management: The process of planning, preparation, education, resource allocation, and implementation of a cultural change in an organization


Changeover:  The installation of a new type of tool in a metal working machine, a different paint in a painting system, a new plastic resin and new mold in an injection molding machine, new software in a computer, and so on.

Constraint:  Anything that limits a system from achieving higher performance, or throughput.

Continuous Flow Production: The ideal state characterized by the ability to replenish a single work unit that has been “pulled” downstream.  In practice, continuous flow is synonymous with just-in-time (JIT), which ensures that both internal and external customers received only what is needed, just when it is needed, and in the exact amounts needed. Means that items are produced and moved from one processing step to the next one piece at a time. Each process makes only the one piece that the next process needs, and the transfer batch size is one. Also called "single-piece flow" or "one-piece flow."

Continuous Improvement: The never-ending pursuit of waste elimination by creating a better workplace, better products, and greater value to society


Continuous Improvement Process (CIP):  The never-ending process of eliminating waste within the organization in order to shrink manufacturing cycle times, improve quality, and to respond to changing customer demands.

Control Chart:  A statistical tool for problem solving that indicates control of a process within established limits.

Control Element: A specific process variable, which must be controlled. Measurements of a control element indicate whether or not a stable condition has been achieved.
 

Core Implementation Team:  A group of people chartered with planning the details of a lean plan through implementation of the eight-step value stream management process.

Cost of Poor Quality: Costs associated with supplying a poor quality product. Categories of cost include internal and external failure costs.

Cost of Quality:  Costs associated with supplying a quality product. Categories of cost include prevention, appraisal, and failure.

Counter measures:  Immediate actions taken to bring performance that is tracking below expectations back into the proper trend. Requires root cause analysis.


Counterclockwise flow: A basic principle of Lean manufacturing cell layout is that the flow of material and the motion of people should be from right to left, or counterclockwise. The origin of this idea came from the design of lathes and machine tools with the chucks on the left side, making it easier for right-handed people to load from right to left.

Covariance: The impact of one variable upon others in the same group.

Current State Map: Helps visualize the current production process and
identify sources of waste.

Curtain effect: A method that permits the uninterrupted flow of production regardless of external process location or cycle time. Normally used when product must leave the cell for processing through equipment that cannot be put into the cell. (i.e. heat treat, curing oven, plating, wave solder) Curtain quantities are established using the following formula: Per unit Cycle Time of Curtain Process / Takt Time = Curtain Quantity.

Cycle Time: The time required to complete one cycle of an operation, or the time that elapses from the beginning of a process or operation until its completion.
Cycle time is the time it takes to do one repetition of any particular task. Cycle time can be categorized into 1) manual cycle time, 2) machine cycle time, and 3) auto cycle time. Also referred to as touch time or hands-on time.



D


Daily Management:  Attention each day to those issues concerned with the normal operation of a business. 
The day-to-day activities that are required to serve the customers and ensure that the business is generating profit.

Days supply of inventory: Total number of days (if the production level equals zero) that it would takes to deplete finished goods inventory for the specified product line.

Demand/customer demand:  The quantity of work units required by a customer.  Also, see takt time.

Dependent Events:  Events that occur only after a previous event.

 


E
 

Elements of work: The elements of work are 1) value-added work, 2) non value-added work, and 3) waste. Thoroughly understanding the elements of work is a key first step to lean thinking.  

Error Proofing:  Designing a potential failure or cause of failure out of a product or process.

Every part every day:  Measured in terms of time (hours, days, weeks, months, etc.) "Every Product Every X" indicates the level of flexibility to produce whatever the customer needs. For instance,
Every Product Every day would indicate that changeovers for all products required can be performed each day and the products can be supplied to the customer.

Extended team members:  Individuals who provide special skills or expertise to the core implementation team but who are not responsible for implementation.


F


FIFO:  First in, first out (FIFO) is a work-control method used to ensure that the oldest work (first-in) is the first to be processed (first-out). 
The goal of FIFO is to prevent earlier orders from being delayed unfairly in favor of new orders. 

Five S: Five terms utilized to create a workplace suited for visual control and lean production. Sort means to separate needed tools, parts, and instruction from unneeded materials and to remove the latter. Simplify means to neatly arrange and identify parts and tools for ease of use. Scrub means to conduct a cleanup campaign. Standardize means to conduct Sort, Simplify, and Scrub at frequent intervals to maintain a workplace in perfect condition. Sustain means to form the habit of always following the first Ss.

Five Why's:  A simple problem solving method of analyzing a problem or issue by asking "Why" five times. The root cause should become evident by continuing to ask why a situation exists.

Flow: The movement of material or information.  Businesses are successful to the extent that they are able to move material and information with as few disruptions as possible, and preferably none.  A main objective of the lean production effort, and one of the important concepts that passed directly from Henry Ford to Toyota. Ford recognized that, ideally, production should flow continuously all the way from raw material to the customer and envisioned realizing that ideal through a production system that acted as one long conveyor.

Flow Chart: A problem solving tool that illustrates a process. It can show the "as is" process or "should be" process for comparison and should make waste evident.

Flow Production:  A philosophy that rejects batch, lot or mass processing as wasteful. Product should move (flow) from operation to operation in the smallest increment, one piece being the ultimate. Product should be pulled from the preceding operation, as it is needed. Often referred to as "One Piece Flow", only quality parts are allowed to move to the next operation.

Functional Layout: The practice of grouping machines or activities by type of operation performed.
 

Future State Map:  A blueprint for lean implementation. Your organization¹s vision, which forms the basis of your implementation plan by helping to design how the process should operate.


G


Gembutsu: Japanese for 'actual thing' or 'actual product'. The tools, materials, machines, parts, and fixtures that are the focus of kaizen activity.

Genjitsu: Japanese for 'the facts' or 'the reality'. The actual facts or the reality of what is happening on the shop floor and in the business.

Greenfield: A new production facility where lean principles are designed into manufacturing and management systems from the beginning.


H

Hanedashi: Device or means of automatic unload of the work piece from one operation or process, providing the proper state for the next work piece to be loaded. Automatic unloading and orientation for the next process is essential for a "Chaku-Chaku" line


Heijunka:  (Also see Leveling) A method of leveling production at the final assembly line that makes just-in-time production possible. This involves averaging both the volume and sequence of different model types on a mixed-model production line. Balancing the amount of work to be done (the load) during a day with the capacity to complete the work.  A heijunka system distributes work in proportions based on demand, factoring in volume and variety.

Heijunka box:  A physical device used to level production volume and variety over a specific time period (usually one day).  The box is divided into slots that represent pitch increments.  The slots are loaded with kanbans that represent customer orders.  The order in which kanbans are loaded into the box is determined based on volume and variety.

Histogram: A chart that displays data in distribution, generally in graph format. It may be used to reveal the variation that any process contains.


Hoshin Planning (HP): Also known as Management by Policy or Strategy Deployment. A means by which goals are established and measures are created to ensure progress toward those goals. HP keeps activities at all levels of the company aligned with its overarching strategic plans. HP typically begins with the "visioning process" which addresses the key questions: Where do you want to be in the future? How do want to get there? When do you want to achieve your goal? And
who will be involved in achieving the goals? HP then systematically explodes the what's, who's and how's, throughout the entire organization.


I

Ijo-kanri: See Abnormality Management.


Inventory: A major cost for most businesses, inventory is all raw materials, purchased parts, work-in-process components, and finished goods that are not yet sold to a customer. In some cases inventory may include consumable goods used in production.

J

Jidoka: Automation with a human touch or transferring human intelligence to a machine. This allows the machine to detect abnormalities or defects and stop the process when they are
detected. Also known as Autonomation.

Jishuken: Fresh eyes; an important concept in Observation-Based Safety.

Just-in-Time (JIT): Principles that are fundamental to Time-Based Competition waste elimination, process simplification, set-up and batch-size reduction, parallel processing, and layout redesign are critical skills in every facet of the lean organization. JIT is a system for producing and delivering the right items at the right time, in the right amounts. The key elements of Just-in-Time are Flow, Pull, Standard Work, and Takt Time.   Also see Continuous Flow.


K

Kaizen: Small daily improvements performed by everyone.  Kai means “take apart” and zen means “make good”.  The point of kaizen implementation is the total elimination of waste. Continuous, incremental improvement of an activity to create more value with less waste. The term Kaizen Blitz refers to a team approach to quickly tear down and rebuild a process layout to
function more efficiently.

Kaizen event:  A team event dedicated to quick implementation of a lean method in a particular area, over a short period of time.

Kaizen plans:  Lean improvement proposals presented to management by the team, following their analysis of their current state map and mapping their future state.

Kanban:  .
A Japanese word for 'sign', Kanbans are typically a re-order card or other method of triggering the pull system based on actual usage of material. Kanbans are attached to the actual product, at the point of use. Kanbans are cards have information about the parts (name, part number, quantity, source, destination, etc.) but carts, boxes, and electronic signals are also used. Squares painted on the floor to indicate storage or incoming areas are frequently, but mistakenly, referred to as kanbans. A signaling device that gives instruction for production or conveyance of items in a pull system. Can also be used to perform kaizen by reducing the number of Kanban in circulation, which highlights line problems.  A control card at the heart of a pull system.  The card is a means of communicating upstream precisely what is required (in terms of work specifications and quantity) at the time it is required


L

Last in – first out (LIFO): The result of a typical material or information flow system without FIFO, resulting in earlier orders being perpetually delayed by new orders arriving on top of them.

Lead Time: The total time a customer must wait to receive a product after placing an order. When a scheduling and production system is running at or below capacity, lead time and throughput time are the same. When demand exceeds the capacity of a system, there is
additional waiting time before the start of scheduling and production, and lead time exceeds throughput time.


Lean: A paradigm based on the fundamental goal of eliminating waste and maximizing flow. Business processes requiring less human effort, capital investment, floor space, materials, and time in all aspects of operation.

Lean enterprise:  An organization that fully understands, communicates, implements, and sustains lean concepts seamlessly throughout all operational and functional areas.

Lean manufacturing: A business practice characterized by the endless pursuit of waste elimination. A manufacturer that is lean uses the minimum amount of manpower, materials, money, machines, space etc. to get the job done on time.

Leveling:  Evenly distributing over a shift or a day the work required to fulfill customer demand.  Leveling is achieved either through implementing visible pitch or heijunka (level loading).

Line balancing:  A process in which work elements are evenly distributed within a value stream to meet takt time.

Location indicators:  A visual workplace element that shows where an item belongs.  Lines, arrows, labels, and signboards are all examples of location indicators.


M

Machine Work: Work that is done by a machine. The time it takes to do machine work can overlap with manual work, if the machine is manually operated.

Manual Work: Work that is done by people, without the aid of machinery. The human tasks of operating or loading machines can also be called manual work.

Milestones:  An activity that has, or should have, a scheduled completion date or time, and that has a major effect on the timing or completion of a project.

Mistake Proofing: Any change to an operation that helps the operator reduce or eliminate mistakes.

Muda: Anything that interrupts the flow of products and services.  See waste through the value stream and out to the customer is designated Muda or waste.

Multi-Skilled Worker: Associates at any level of the organization that are diverse in skills and training. They provide the organization with flexibility and grow in value over time. Essential
for achieving maximum efficiencies of J.I.T.

Mura: Japanese for unevenness.

Muri: Japanese for unreasonableness.



N

Nagara:  Accomplishing more than one task in one motion or function.  Japanese for 'while doing something'.

Non-Value Added: Activities or actions taken that add no real value to the product or service making such activities or action a form of waste.


O

One Piece Flow :  Is based on the concept of having operators focus on transferring each item individually to the next process step. One-piece flow dramatically reduces handling and transportation and provides immediate feedback to any overlooked defect.
One-piece flow production is when parts are made one at a time and passed on to the next process. Among the benefits of one-piece flow are 1) the quick detection of defects to prevent a large batch of defects, 2) short lead-times of production, 3) reduced material and inventory costs, and 4) design of equipment and workstations of minimal size.

Operating Expenses: The money required the system to convert inventory into throughput.
 

Operator Cycle Time: The time it takes for a worker or machine operator to complete a sequence of operations, including loading and unloading, but not including waiting time.


Overproduction: Producing more, sooner or faster than is required by the next process.



P

PDCA (Plan, Do, Check, Act):
PLAN: Senior management should use the visioning process in the context of it Business Plan. HP translates the Business Plans to action plans, meaningful to all levels of the organization.
DO: Answer the what's, how's, and who's for the total number of tiers for your organization; remember, the fewer the number of tiers, the better. Also, this is the time to bring management together and provide them with a basic understanding of HP mechanics. CHECK: On a periodic basis, review the measurements and note what you’ve learned that can help in the future.
ACT: Make the necessary adjustments to plans and priorities in order to ensure the success of the strategy breakthroughs.

Pareto Chart: A vertical bar graph showing the bars in descending order of significance, ordered from left to right. Helps to focus on the vital few problems rather than the trivial many. An extension of the Pareto Principle suggests that the significant items in a given group normally constitute a relatively small portion of the items in the total group. Conversely, a majority of the items will be relatively minor in significance, (i.e. the 80/20 rule).

Perfection: Always optimizing value-added activities and eliminating waste.

Performance Management: Using a set of tools and approaches to measure, improve, monitor and sustain the key indicators of a business.

Pitch:  A multiple to takt time that will allow you to create, maintain, and sustain a consistent and practical workflow throughout the value stream.  To calculate pitch, multiply the takt time by the number of work units to flow through the system in a manageable way.

Problem solving:  A team working together to follow these steps: defining the problem; analyzing possible causes; identifying possible solutions; developing an action plan; evaluating and renewing the action plan; standardizing effective ideas.

Point of Use Storage:  Keeping all items needed for the job at the location of use in a neat and organized manner. POUS is on of the goals of 5S activity.


Poka-Yoke: A mistake-proofing device or procedure to prevent a defect during order taking or manufacture. An order-taking example is a screen for order input developed from traditional ordering patterns that question orders falling outside the pattern. The suspect orders
are then examined, often leading to the discovery of inputting errors or buying based on misinformation. A manufacturing example is a set of photocells in parts containers along an assembly line to prevent components from progressing to the next stage with missing parts. A
poka-yoke is sometimes called a baka-yok.

Process: A sequence of operations (consisting of people, materials and methods) for the design, creation and delivery of a product or service.  The flow of material in time and space. The accumulation of sub-processes or operations that transform material from raw material
to finished product.

Process Kaizen: Improvements made at an individual process or in a specific area. Sometimes called "point kaizen".

Process map: A visual representation of the sequential flow of a process. Used as a tool in problem solving, this technique makes opportunities for improvement apparent.


Processing Time: The time a product is actually being worked on in a machine or work area.


Pull: A system of cascading production and delivery instructions from downstream to upstream activities in which the upstream supplier waits until the downstream customer signals a need. A pull system
means producing only what has been consumed by downstream activities
or customers. Pull can operate with single units or small batches.  It enables work without preset schedules.

Pull System: One of the 3 elements of JIT. In the pull systems, the downstream process takes the product they need and pulls it from the producer. The customers pull is a signal to the producer that the product is sold. The pull system links accurate information with the
process to minimize waiting and overproduction.

Push System: In contrast to the pull system, product is pushed into a process, regardless of whether it is needed. The pushed product goes into inventory, and lacking a pull signal from the customer indicating that it has been bought, more of the same product could be
overproduced and put in inventory.  Push systems generally create undesired, long queue times within an operation.
 


Q

Quality Function Deployment (QFD): A visual decision-making procedure for multi-skilled project teams that develops a common understanding of the voice of the customer and a consensus on the final engineering specifications of the product that has the commitment of the entire team. QFD integrates the perspectives of team members from different disciplines, ensures that their efforts are focused on resolving key trade-offs in a consistent manner against measurable performance targets for the product, and deploys these decisions through
successive levels of detail. The use of QFD eliminates expensive backflows and rework as projects near launch.


Quality Management: The systems, organizations, and tools which make it possible to plan, manufacture, and deliver a quality product or service. This does not imply inspection or even traditional quality control. Rather, it builds quality into the entire process of bringing goods and services to the customer.

Quick Changeover: The ability to change tooling and fixtures rapidly (usually minutes), so multiple products can be run on the same machine.

Queue Time: The time a product spends in a line awaiting the next design, order processing, or fabrication step.



R

Red tag:  A label used in a 5S implementation to identify items that are not needed or that are in the wrong place.

Reengineering: The engine that drives Time-Based Competition. To gain speed, firms must apply the principles of reengineering to rethink and redesign every process and move it closer to the customer.

Resource Utilization: Using a resource in a way that increases throughput.

Root Cause: The most basic underlying reason for an event or condition.  The root cause is where action must be taken to prevent recurrence.

Runner:  A worker who ensures that pitch is maintained.  The runner covers a designated route within the pitch period, picking up work units, folders, or kanban cards, and delivering them to their appropriate places.

 



S

Safety resources:  A means of meeting customer demand when internal constraints or inefficiencies disrupt process flow.

Sensei: An outside master or teacher that assists in implementing lean practices.

Set-in-order:  The second activity in the 5S system.  It involves identifying the best location for each item that remains in the area (after the sort step); relocating items that do not belong in the area; setting height and size limits, and installing temporary location indicators.

Sequential Changeover: Also sequential set-up. When changeover times are within Takt time, changeovers can be performed one after another in a flow line. Sequential changeover assures that the lost time for each process in the line is minimized to one Takt beat. A set-up team
or expert follows the operator, so that by the time the operator has made one round of the flow line (at Takt time), it has been completely changed over to the next product.

Seven wastes: Taiichi Ohno¹s original catalog of the wastes commonly found in physical production. These are overproduction ahead of demand, waiting for the next processing stop, unnecessary transport of materials, over processing of parts due to poor tool and product
design, inventories more than the absolute minimum, unnecessary movement by employees during the course of their work, and production of defective parts.

Shine:  The third activity in the 5S system.  It involves cleaning everything thoroughly, using cleaning as form of inspection, and coming up with ways to prevent dirt, grime, and other contaminants from accumulating.

Single Minute Exchange of Dies (SMED):  A series of techniques designed for changeovers of production machinery in less than ten minutes. Obviously, the long-term objective is always Zero Setup, in which changeovers are instantaneous and do not interfere in any way
with continuous flow.

Single-Piece Flow: A situation in which products proceed, one complete product at a time, through various operations in design, order taking, and production, without interruptions, backflows, or scrap.

Six Sigma:  A methodology and set of tools used to improve quality to than 3.4 defects per million or better.

Sort:  The first activity in the 5S system.  It involves sorting through and sorting out items; placing red tags on these items and moving them to a temporary holding area.  The items are disposed of, sold, moved, or given away by a predetermined time.

Standard: A prescribed documented method or process that is sustainable, repeatable and predictable.

Standardize (for 5S):  The fourth activity in the 5S system.  It involves creating the rules for maintaining and controlling the conditions established after implementing the first three S’s.  Visual controls are used to make these conditions obvious.

Standardized work:  An agreed-upon set of work procedures that establishes the best method and sequence for each process.  Standardized work is implemented to maximize efficiency while simultaneously ensuring safe conditions.

Standards: These involve comparison with accepted norms, such as are set by regulatory bodies.

Standard Work: A precise description of each work activity specifying cycle time, takt time, the work sequence of specific tasks, and the minimum inventory of parts on hand needed to conduct the activity. 
Standard Work is the most efficient combination of man, machine, and material. The three elements of standard work are 1) takt time, 2) work sequence, and 3) standard work-in-process. Performing standard work allows for a clear and visible 'standard' operation. Deviation from standard work indicates an abnormality, which is then an opportunity for improvement.

Standard Work Combination Sheet: A document detailing the sequence of production steps assigned to a single worker performing Standard Work. This document outlines the best combination of worker and machine.

Standard Work Sheet: A visual work instruction drawing for Standard Work. Shows the work sequence, takt time, standard working process, and layout of the cell or workstation.

Standard Work In Process: Also Standard WIP, or SWIP. The minimum work-in-process needed to maintain standard work. Standard WIP parts are 1) parts completed and in the machine after auto cycle, 2) parts placed in equipment with cycle times exceeding Takt time, and 3) the parts currently being worked on or handled by the operators performing standard work.

Standard Work in Process:
The minimum amount of material or a given product, which must be in process at any, time to insure proper flow of the operation.

Standardization: The system of documenting and updating procedures to make sure everyone knows clearly and simply what is expected of them. Essential for application of PDCA cycle.

Storyboard:  A poster-sized framework for holding all the key information for a lean implementation.  It contains the outcomes for each of the eight steps of value steam management.

Strategic Planning: Developing short and long-term competitive strategies using tools such as SWOT Analysis to assess the current situation, develop missions and goals, and create an implementation plan.

Suggestion System: In a suggestion system workers are encouraged to identify wastes, safety, and environmental concerns and submit improvement ideas formally. Rewards are given for suggestions resulting in cost savings. These rewards are typically shared among the production line or by the kaizen team

Supermarket:  A system used to store a set level of finished-goods inventory or WIP (work-in-process) and replenish what is “pulled” to fulfill customer orders (internal and external).  A supermarket is used when circumstances make it difficult to sustain continuous flow.

Supplier Partnership:  An approach to business that involves close cooperation between the supplier and the customer. It provides benefits and responsibilities that each party must recognize and work together to realize.

Sustain:  The fifth activity of the 5S system, where a person or team ensures adherence to 5S standards through communication, training and self-discipline.

System Kaizen: Improvement aimed at an entire value stream.

Sub-Optimization: A condition where gains made in one activity are offset by losses in another activity or activities, created by the same actions crating gains in the first activity.



T

Takt Time: The available production time divided by the rate of customer demand. For example, if customers demand 240 widgets per day and the factory operations 480 minutes per day, takt time is two minutes; if customers want two new products designed per month, takt time is two weeks. Takt time sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean system.
 Takt time is the pace at which the customer is buying a particular product or service. Takt time is the total net daily operating time divided by the total daily customer demand. Takt time is not how long it takes to perform a task. Takt time cannot be reduced or increased except by changes in production demand or available time to work. Takt time is one of the 3 Elements of JIT. Takt is a German word for 'beat' or 'rhythm'

Team Charter:  A document that includes but that is not limited to the following elements:  a clear definition of a team’s mission; a statement of team members’ roles and responsibilities; a description of the scope of the team’s responsibility and authority; project deadlines; a list of metrics and targets; and a list of deliverables (or outcomes) 

Team Leader:   The person who facilitates the value stream management process from beginning to end (until a complete kaizen plan is created).  The team leader calls and facilitates meetings, ensures that agenda are completed and manages the allocation and completion of all tasks.

Theory of Constraints: A lean management philosophy that stresses removal of constraints to increase throughput while decreasing inventory and operating expenses.
Throughput: The rate at which the entire system generates money.


Throughput Time: The time required for a product to proceed from concept to launch, order to delivery, or raw materials into the hands of the customer. This includes both processing and queue time.

Total Cycle Time:  The total of the cycle time for each individual operation or process or work area in a value stream.  Total cycle time ideally equals the total value-added time


Total Productive Maintenance (TPM):   A series of methods, originally pioneered to ensure that every machine in a production process is always able to perform its required tasks so that production is never interrupted.


Toyota Production System (TPS):   A manufacturing philosophy that shortens the time between customer order and shipment by eliminating waste. 
 A methodology that resulted from over 50 years of Kaizen at Toyota, one of the most successful companies in the world. TPS is built on a foundation of Leveling, with the supporting pillars of Just-in-Time and Jidoka.


V

Value: A capability provided to a customer at the right time at an appropriate price, as defined in each case by the customer.

Value-Added Analysis:  With this activity, a process improvement team strips the process down to it essential elements. The team isolates the activities that in the eyes of the customer actually add value to the product or service. The remaining non-value adding activities ("waste" are targeted for extinction.

Value Chain: Activities outside of your organization that add value to your final product, such as the value adding activities of your suppliers.

Value-added Work: Work that the customer is willing to pay for. A transformation of the shape or function of the material/information in a way that the customer will pay for.

Value Stream: The specific activities required to design, order and provide a specific product, from concept to launch, order to delivery, and raw materials into the hands of the customer.

Value Stream Mapping: Highlights the sources of waste and eliminates them by implementing a future state value stream that can become reality within a short time.  
Creating a visual picture of the 'Current State' or how material and information flows from suppliers through manufacturing and to the customer. Total lead-time, process cycle times and value-added times are measured. The Future State is created based on goals desired based on market conditions and strategic planning for the business.


Vertical Teams: Vertical teams are groups of people who come together to meet problems or challenges. These teams are made up of the most appropriate people for the issue, regardless of their levels or jobs within the organization.


Vision: A long-term plan of direction that is based on a careful assessment of the most important directions for the organization.

Visible pitch board:  A visual control method that will control the flow of work throughout the day, also showing how each person in the value stream receives his or her portion of work.

Visual Control: The placement in plain view of all tools, parts, production activities, and indicators of production system performance so everyone involved can understand the status of the system at a glance.
Various tools of visual management such as color-coding, charts, andons, schedule boards, labels and markings on the floor.

Visual Management: When the normal state and abnormal state can be clearly and visually defined, visual management is possible. In visual management, simple visual tools are used to identify the target state, and any deviance is met with corrective action.


Voice of the customer (V.O.C.): Desires and requirements of the customer at all levels, translated into real terms for consideration in the development of new products, services and daily business conduct.

 

W
 


Waste (also Muda): Anything that uses resources, but does not add real value to the product or service. Eight common types of waste have been identified. They are:
1. Waste from over production
2. Waste from waiting or idle time
3. Waste from unnecessary transportation
4. Waste from inefficient processes
5. Waste of unnecessary stock on hand
6. Waste of motion and efforts
7. Waste from producing defective goods
8. Waste from unused creativity

Work in Progress (WIP): Product or inventory in various stages of completion throughout the plant, from raw material to completed product.

Work Sequence: The specific order in which an operator performs the manual steps of the process.

Work unit:   A specific, measurable amount of work that can be customized and treated as a whole.  Examples of a work unit include an order, a report, or a blueprint.

Worker balance chart:  A visual display of the work elements, times, and workers at each location.  It is used to show improvement opportunities by visually displaying the times of each operation in relation to the total value stream cycle time and takt time.

World Class Quality Management: An operating methodology totally committed to quality and customer satisfaction. It focuses on continuous improvement in all processes and advocates decisions based on fact. World Class Quality management includes all associates in
meeting and exceeding customer expectations.


Y

Yokoten:  Information sharing; sharing of common activities, countermeasures and ideas.


Yield: Produced product related to scheduled product