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The GDC-TBS Compilation of
Terms Related to Lean Conversion

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

Yield |

Zero Handling | zero Inventories | zero lead-time | Zero Set-up Time

A
Abnormality Management	The ability to see and respond to an abnormality (any violation of standard operations) in a timely manner. This is the responsibility of all employees and owners of the company. We call this management by majority.
Activity Based Management	Activity Based Management - A system for calculating the cost of products based on apportioning non-touch labor costs to specific products which is then based on the level of “support” activities required. (Instead of placing all support activities into Overhead pools and then apportioning the costs based on direct labor of each product). “Support” activities are cost based on repetition of specific “activity” categories. Costs for those activities are pooled and then divided by the number of activities performed in a given period of time. Developed in the late 1980’s by Robert Kaplan and Robin Cooper of Harvard.
Analytical Approach	1) An approach to management improvement. 2) It is an approach based on learning from the evaluation and analysis of past experience.
Andon	Japanese term for a signal. A system of flashing lights is typically used to indicate that some aspect of the process needs attention in one or more work centers. They can reflect potential quality problems identified by an operator or the need for materials replenishment; the number of lights and their possible colors can vary, even by work center within a plant; however, the primary colors and their meanings are: Green - no problems Yellow - situation requires attention Red - production stopped; attention urgently needed
Andon Board	A visual control device in a production area, typically a lighted overhead display, giving the current status of the production system and alerting team members to emerging problems.
Automatic Parts Ejection	(See Handeshi)
Autonomation	(English translation of Jidoka) Sakichi Toyoda initially developed this technique in 1902 when he invented a loom that would stop automatically if any of the threads snapped. This breakthrough allowed one worker to monitor 12 instead of 1 machine. The idea behind Autonomation is to separate man from machine so that man can perform higher value added work by providing machines and operators the ability to detect when an abnormal condition has occurred and immediately stop work. This enables operations to build-in quality at each process and to separate person and machines for more efficient work. (See: Jidoka, Flexible Manning)
B
Back to Zero	This is a Business Paradigm which simply means that when a radical improvement is introduced into a product or service, all the market advantages that once belonged to leaders in that niche disappear. Most cited example was the Swiss watch market domination that disappeared with the invention (by the Swiss) and subsequent production of quartz movement watches by U.S. and Japanese companies.
Backflush	A calculation performed by MRPII which: Subtracts from the on hand inventory all components, sub-components, sub assemblies the quantities consumed in the assembly or manufacture of a product. Increases the inventory of the finished product. Decrements from the on-order quantity the number of finished products completed. Calculation is triggered by manual intervention once a product is completed.
Baka-Yoke	A manufacturing technique of preventing mistakes by designing the manufacturing process, equipment, and tools so that an operation literally cannot be performed incorrectly; an attempt to perform incorrectly, as well as being prevented, is usually met with a warning signal of some sort; the term "mistake proofing" is sometimes referred to as a system where only a warning is provided. (see poka-yoke, mistake proofing, error proofing)
Balanced Plant	A plant where capacity of all available resources are balanced exactly with market demand. This is believed to only be achievable by companies able to sustain lean principles for a period of time; in most cases it take three years to clarify sustainment.
Balanced Production	1) All operations and/or cells are producing at the same cycle time. 2) In a balanced production system, the cell cycle time is less than takt time.
Baseline Assessment	A process for taking a snapshot of the current operating position of a plant. Included in the analysis are metric performance data, demand segmentation, cost analysis, organization structure, flow charts, value added analysis, work sampling results, customer feedback and quality results. This process is intended to document the need for change and focus site leadership on key opportunities.
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. (opposite of "one piece flow")
Batch Manufacturing	A production strategy that is commonly employed in "job-shops" and other instances where there is discrete manufacturing of a non-repetitive nature. In batch manufacturing, order lots (based on aggregated demand) are maintained throughout the production process to minimize changeovers and achieve economies of scale. In batch manufacturing environments, resources are usually departmentalized by specialty and very seldom dedicated to any particular product family.
Batch Size	This is the number of pieces or units that are aggregated into a group for processing. Batch size is based on either economical order quantity or the product family turnover rate (capacity limited).
Benchmarking	The process of measuring products, services, and practices against those of leading companies. To focus on best practices and methods of world class leaders, regardless of industry, and use the information to improve its own performance.
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.
Bill of Materials	A hierarchical, usually documented representation of all components, parts and sub-assemblies that go into a final assembled product. The BOM contains required quantities of each component and drawing revision letter for each component.
Bird Cage	1) A grouping of machines with similar functions utilizing only one operator at all times. 2) Highly used in job shops where the operator is enclosed on all sides (like a bird cage) to complete the entire production process them self. 3) Unlike cells where the number of machines are fixed but the number of operators will vary based on customer demand (Takt-Time). Bird Cage is generally a fixed number of machines and only one operator is assigned at all times. If demand increases on-time performance suffers unless there is excess capacity in the first place or if other alternative cells are available.
Blitz	Also known as an impact event, this is a quick and focused process for improving some component of business a product line, a machine, or a process. It ideally utilizes a cross-functional team of employees for a problem-solving exercise, where they focus on designing solutions. For a Kaizen blitz to be effective the following guidelines should be adhered to: Keep it 3 to 5 days in length (there must be a start and a finish date), small in scope (if the problem seems too big the team will go off into to many other directions), no more then 5 people (4 attendees should be knowledgeable about the component of the business to improve, and the 5th person who is not familiar with the process should be the facilitator. The facilitator’s role is to keep the knowledgeable people on course and to ask why we do the things we do; "5 Whys").
Bottleneck	1) Any resource whose capacity is equal to, or less than the demand placed on it. 2) The machine, operation, activity, or a group of linked operations with the lowest effective capacity. See Constraint.
Brain Storming	Brainstorming is a group technique for generating new, useful ideas and promoting creative thinking. It can be used to help 1) define what project or problem to work on, 2) to diagnose problems , 3) remediate a project by coming up with possible solutions and to identify possible resistance to proposed solutions.
Bread man	Supplier replenishment system that ensures material availability on demand while minimizing inventory required. Most effectively used as part of a point-of-use replenishment application, i.e. a “bread man” replenishes bread to supermarket shelves on a regular schedule, placing new bread on shelf space emptied up by customer demand. Also see “Water Spider”.
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. [Abbreviation: CCR] . In most cases; a shop that is set up by departments can act as a CCR just because of their locations within the plant.
Capacity Requirements Planning	A module of MRPII that calculates the workload for specific machines (or machine codes, work centers) based on current, projected and forecasted demand. Load is usually based on a % of available hours used. For cell-based plants, the capacity can be figured using the capacity bottleneck for each cell. This greatly simplifies calculation. In addition, CRP may be used to calculate the number of workers needed to staff a plant or cell. See MRP II
Capital	The sum total of the money invested in fixed assets use for the production of goods or services.
Catch-Ball	A series of discussions between managers and their employees during which data, ideas, and analysis are thrown back and forth like a ball. This opens productive dialogue throughout the entire company.
Cause-and-Effect Diagram	Also referred to as a "Fishbone" (after its shape), or "Ishikawa" diagram (after its inventor, Kaoru Ishikawa). The diagram illustrates the main causes and sub-causes leading to an effect (the symptom of unwanted condition). It is one of the Basic Seven Tools of Quality.
Cell	The layout of machines of different types and/or workstations performing different operations in a tight sequence that are physically and geographically linked, typically in a U-shaped configuration, which makes parts, products or all parts in a product family in single-piece flow and takes advantage of the flexible deployment of human effort by means of Multi-Machine Working. Cells are contrasted with Functional layout and characterized by: Consistency of Products run Consistency of Staffing Physical Proximity Physical Linking (where possible) Customer Focus (where appropriate)
Cellular Manufacturing	1) An approach in which manufacturing work centers [cells] have the total capabilities needed to produce an item or group of similar items; contrasted with the need to set up work centers on the basis of similar equipment or capabilities, in which case, items must move amongst multiple work centers before they are completed; the term group technology is sometimes used to distinguish cells that produce a relatively large family [group] of similar items. 2) An alignment of machines in correct process sequence, where operators remain within the cell and materials are presented to them from outside the cell.
Chaku-Chaku	Meaning load-load in Japanese, this describes a work cell where machines off-load parts automatically so that operators can take a piece directly from one machine to the next without waiting. [See: Load-Load]
Change Agent	1) A highly motivated person whose demonstrated mission is to move from the now (current) state, to the future state which is not to be mistaken for the ideal state. 2) One who leads cultural change in an organization. 3) The catalytic force moving firms and value streams out of the world of inward-looking, batch-and-queue to flexible, customer focused organizations.
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 a new mold in an injection molding machine, new software in a computer, and so on. The term applies whenever a production device is assigned to perform a different operation. (See SMED)
Check List (Sheet)	A tool used to ensure that all important steps or actions in an operation have been taken. One of the Basic Seven Tools of Quality.
Check Points and Control Points	Used in measuring the progress of improvement-related activities between different managerial levels. Check points represent process-oriented criteria. Control points represent result-oriented criteria. What is the check point to a manager becomes a control point to the next-level manager. For this reason, check points and control points are also used in policy deployment.
Check Sheet	A simple data-recording device, custom-made by the user, which allows results to be readily interpreted. Not to be confused with a Checklist (see above.)
Commodity	A physical material or substance, such as food, grains, and metals, which is interchangeable with another product of the same type. Commodities are purchased for internal consumption or internal use in the service and/or manufacturing of the product. The price of the commodity is subject to supply and demand.
Common Cause	In statistical quality control, the causes of variation inherent in a process over time.
Company Culture	The informal or formal way work is done, based on the values, beliefs, way of thinking, behaviors, attitudes, management structure, legacy systems, myths and stories in the organization. Over time, leaders shape the culture. (See KaizenCulture.)
Conflict Resolution	The resolution of a clash between hostile or opposing elements/ideas.
Constant Work in Process (ConWIP)	1) A signaling device that gives instruction for production or conveyance of items in a pull system. This particular system is best suited for job shop environments where there may be a large number of part, processes, and/or machinery (Functional layout). 2) A communication tool in the "just-in-time" production and inventory control system which authorizes production or movement. The number of circulating or available ConWIP cards for a particular department is determined by the number of machines available as well as the number of personal available. This number generally is established and remains unchanged until improvements are made and maintained for a period of time; in this way inventory is kept under control while production is forced to keep pace with shipment volume. A routine exception to this rule is that managers and workers are continually exhorted to improve their processes and thereby reduce the number of ConWIP cards required.
Constraint	1) Anything that limits a system from achieving higher performance, or throughput. 2) Alternate: That bottleneck which most severely limit the organization's ability to achieve higher performance relative its purpose/goal.
Continuous Flow Production	Items are produced and moved from one processing step to the next step one piece or unit at a time. Each process makes only the one piece/unit that the next process needs, and the transfer batch size is one. Also called "single-piece flow" or "one-piece flow."
Continuous Improvement	The commitment to creating a better product, work environment and business, every day.
Continuous Improvement Firm (CIF)	A firm continuously improving on the value that customers perceive in its products due to improvements in productivity initiated by the members of the general work force. Productivity in CIF is broadly defined to include all facets of product quality as well as output per worker. A basic operating principle of the CIF is that improvements in product quality often produce simultaneous reductions in costs. The ultimate competitive goal of the CIF is the ability to produce consumer goods on a custom basis for almost instantaneous delivery at costs lower than those featured by standard mass production firms. The flexible CIF ideally produces to customer demand. The key to achieving this flexibility and lower unit cost lies in generalization of the work force.
Continuous Manufacturing	A production process that is characterized by the flow of products through the process. Transformation of the product happens continuously as the product is transported through the process. Oil refining is an example of continuous manufacturing. Oil flows through pipes and reactors and is refined as it flows. See Cellular, Discrete and Flow Manufacturing.
Control Chart	A chart with upper and lower control limits within which a machine or process is "in control". Frequently a centerline, midway between the two limits, helps detect trends toward one or the other. Plotting critical measurements on the chart shows when a machine or process has gone "out of control" and must be adjusted. One of the Basic Seven Tools of Quality.
Core Process	The process in a manufacturing or service organization that produces the goods or services for external customers on which the organization depends for its survival.
Covariance	The impact of one variable upon others in the same group.
Cross-Functional Management	The inter-departmental coordination required to realize the strategic and policy goals of a Kaizen and Total Quality Control (TQC) program. After corporate strategy and planning are determined, top management sets objectives for cross-functional efforts that cut laterally throughout the organization. Cross functional management is the major organizational tool for realizing TQC improvement goals. Its critical importance lies in its intensive focus on the follow-through to achieve the success of goals and measures.
Current State Map	A map that helps organizations visualize the current production process and identify sources of waste. If done correctly the Current State Map will help in organizing lean implementation plans.
Customer, External	An end-user who pays for the product or service delivered by a company, thus generating revenue for the company. Note: the goal of world-class companies is to "continually delight" this customer, thus creating "an increasing affection" for its products and services. There may be several external customers, all of whom must be considered by the supplier.
Customer, Internal	The recipient (person, process, or department) of another person's or department's output (product, service or information) within an organization.
Customer-Supplier Partnership	A long-term relationship between a buyer and supplier characterized by teamwork, mutual confidence, and common goals regarding customer satisfaction. The supplier is considered an extension of the buyer's organization, based on several commitments. The buyer provides long-term contracts and uses fewer suppliers. The supplier implements quality assurance processes to limit or eliminate incoming inspection by the buyer. The supplier also helps the buyer reduce costs and improve product and process designs.
Cycle Time	The normal amount of (clock) time for a product or service to travel through a process to complete an operation. This in NOT the same as takt time, which is the available time to produce one product at the rate customers are demanding it. If cycle time for every operation in a complete process can be improved to equal or be less than takt time, (theoretically) products can be made in Single-Piece Flow. Cell cycle time is the time it takes for a part to complete one cycle from raw to finish good.
D
Data	Bits of information which, when aggregated and analyzed, result in information leading to change and improvement. Data may be quantitative or qualitative. Data are distinguished from individual opinions, past experiences, biases, and "gut feel".
Deming Cycle	The concept of a continuously rotating wheel used by W. E. Deming to emphasize the necessity of constant interaction among research, design, production, and sales so as to arrive at an improved quality that satisfies customers. Credited by Edward Deming to Walter Steward of Western Electric (who may have gotten it from John Dewey), the cycle is a concept of how thinking must proceed to create continuous improvement. The most common form of the cycle consists of four elements — Plan, Do, Check, and Act. Dr. Deming (before his death, re-termed them — Plan, Do, Investigate, and Adjust. (See PDCA.)
Dependent Events	Events that occur only after a previous event.
Deployment Teams	Groups of people responsible for deploying Lean Enterprise. The group at the top is the “Steering Committee”; the group that does the analysis for improvement planning is the “Baseline Team” and the implementation teams are “Design Teams”.
Design Approach	Another approach to management improvement. Tries to build a better approach through predetermined goals.
Design for Manufacturability	A process for tailoring a product’s design to a specific manufacturing process. Characteristics considered, among others: manufacturing process capability optimum assembly sequence optimum assembly process / geometry commonality of parts simplification of fasteners simplified testing methods for point of manufacture verification
Discrete Manufacturing	A process for making product that is made up of several disconnected steps (i.e. the connection is based on routing or use of transport mechanisms). Transformation of the product takes place in “steps”. The steps are usually based on machines, operations or stations in the manufacturing process.
E
Economical Order Quantity (EOQ)	The optimum number of parts to be run within one batch based on a tradeoff of the inventory carrying cost and the cost associated with a product changeover. See SMED
Economies of Scale	The idea that by maximizing volume, costs are minimized. Procuring the maximum sized equipment and then running that equipment around the clock produce economies. Economies of scale create batch manufacturing when the number of product types to be run across a specific piece of equipment exceeds one. The concept of economical order quantity (EOQ) based on set-up costs grew out of the use of large-scale equipment.
Eighty-Twenty Rule	Refers to the Pareto principle, which suggests that most effects stem from relatively few causes; that is, eighty percent of the effects come from twenty percent of the causes. (See Pareto Chart.)
Elemental Time	Time allotted to a specific operational step, within standard work.
Employee Involvement	A practice within an organization whereby employees regularly participate in making decisions on how their work areas operate, including making suggestions for improvements, planning, goal setting and monitoring performance.
Empowerment	A condition in which employees have the authority to make decisions and take action in their work areas without prior approval. For example, an operator can stop a production process if he or she detects a problem, or a customer service representative can send out a replacement if a customer calls with a complaint.
Enterprise Resource Planning (ERP)	The combination of Manufacturing Resource Planning (MRPII) techniques with accounting information into a single database and data structure. The intent of ERP is to automate purchasing, inventory, production, accounting, shipping, receiving, billing and invoicing into a single seamless database.
Ergonomics	The application of scientific principles to the process of work: aimed at making work easier and less physically stressful.
Error Proofing	A manufacturing technique of preventing production errors by designing the manufacturing process, equipment, and tools so that an operation literally cannot be performed incorrectly (See poka-yoke, baka-yoke, or mistake proofing)
Evaporating Clouds	A problem of method used in Theory of Constraints. Same as Conflict Resolution.
External Setup (OED)	Elements or tasks associated with a changeover that can be performed safely while the machine or operation is still running. Also known as OED - "outer exchange of die" [See: Single Minute Exchange of Die (SMED), Internal Setup]
F
Finished Goods Inventory (FGI)	Material that has completed the production process and is ready for customer consumption but is waiting for an order.
Five S (5S)	Five terms beginning with "S" utilized to create a workplace suited for visual control and lean production. Refers to the following five words: seiri, seiton, seison, seiketsu, shitsuke. These words are shorthand expressions for principles of maintaining an effective, efficient workplace. 5S is the first step in developing a sustainable process and is frequently used to introduce Total Productive Maintenance (TPM) into an organization. There are many American interpretations of these words but for this definition we will use the following: Sort, Straighten, Shine, Standardize, and Sustain. seiri - eliminating everything not required for the work being performed. (Sort) Sort means to separate needed tools, parts, and instructions from unneeded materials and to remove the latter. Other terms used: Sort, Separate, Scrap seiton - efficient placement and arrangement of equipment and material (Store) Straighten means to neatly arrange and identify parts and tools for ease of use. Other terms used: Straighten, set in order, store, store in order. seison - tidiness and cleanliness (Shine) Shine means to conduct a cleanup campaign. Other terms used: Shine, Scrub, Sweep seiketsu - ongoing, standardized, continually improving seiri, seiton, seison (Standardize) Standardize means to conduct Sort, Simplify, and Scrub at frequent, indeed daily, intervals to maintain a workplace in perfect condition. Other terms used: Standardize, Spread, shitsuke - discipline with leadership (Sustainment) Sustain means to form the habit of always following the first four Ss. Other terms used: Sustain, Systematize, Self-discipline 5S (Like many concepts, the 5S can be interpreted narrowly or broadly, depending on circumstances of their use.)
Five Whys (5 Whys)	Taiichi Ohno’s practice of asking "why" five times in order to uncover the root cause of a problem so that effective countermeasures can be developed and implemented. A simple technique, used to reveal the 'root cause' (as opposed to symptoms) of a problem. The technique asks 'why' the symptom occurred, 'why' did the situation which allowed the symptom; exists, and so on, until the root cause is finally discovered.
Flexible Manning (Shojinka)	A way of managing person-power on the line such that when demand decreases, workers can be re-deployed to areas where needed, or when demand increases, they can be deployed to areas requiring additional support. Preferred to the system of maximizing machine efficiency, which pays no attention to customer demand and TAKT time. This is not a very critical concept in cellular flow
Flexible Manufacturing System (FMS)	an integrated manufacturing capability to produce small numbers of a great variety of items at low unit cost; an FMS is also characterized by low changeover time and rapid response time.
Flexible Work Cell	A group of machines or processes (work cell) whose capacity is dictated by the staffing level of the cell. If requirements increase, increasing the number of workers will allow increased output; if requirements decrease, decreasing the number of workers will allow the cell to meet the requirements with no loss in efficiency.
Flow	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.
Flow Kaizen	Radical Improvement, usually applied only once within a value stream. [Same as Kaikaku]
Flow manufacturing:	The application of the idea of “flow” to discrete manufacturing. Flow manufacturing attempts to mimic continuous manufacturing by combining a mixed stream of products, pulled through the process at a rate equal to daily customer demand (takt) requirements. Flow manufacturing concepts are typically associated with repetitive manufacturing of discrete products.
Ford, Henry	Recognized as the father of “mass” production, Henry Ford applied the principles of the assembly line, division of labor and waste reduction to the manufacture of automobiles. Ford Motor Company became the largest manufacturing company in the world in 15 short years.
Full Work Analysis	The process of analyzing all activities associated with the production of a part, component or unit. Worker activity, machine activity and part activity are all analyzed using observation, stop watches and / or video.
Functional Layout:	The practice of grouping machines or activities by type of operation performed. For example, grinding machines or order-entry. Contrast with Cells
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
Gage Repeatability & Reproducibility (GR&R)	An analysis method to determine the error introduced in the measuring process by: the gage itself, operators and environmental changes. The components of the study are: Accuracy: how close the measurement is to the NIST standard. Repeatability: what is the variation introduced when a single operator repeatedly checks a part. Reproducibility: what is the variation introduced by the addition of other operators into the measurement process Stability: what is the variation introduced by changes in environmental conditions over time. Linearity: whether the gage linear over its operating range.
Gannt (Gantt) Chart	A type of project management tool that displays the time sequence and duration of specific elements of the Work Breakdown Structure. Therefore, this chart displays the status of each element of planned work (% complete) and finished work in relation to time and sequence.
Gemba (Genba)	A Japanese word that literally means "the Real Place". Used in the context of KAIZEN, Gemba usually refers to the shop floor or to the place where the value added (and non value added!) work or activity is taking place. In a broader sense, Gemba refers to any place in a company where work is being performed; thus one may have an engineering gemba, a sales gemba, an accounting gemba, etc.
Global Production System	An expansion of the Toyota Production System, this is a strategy to enable lean manufacturing using Kaizen methodology.
Goals, Super-Ordinate	The three goals of Quality, Cost and Delivery that are key to customer satisfaction. Customers require all three - high quality, low cost, and on-time delivery. All three go to make up the customer's appraisal of value.
Group-Wide Quality Control (GWQC)	A system of continuing interaction among all elements, including suppliers, responsible for achieving the continuously improving quality of products and services that satisfies customer demand.
H
Hanedashi	A device or means for automatic removal of work piece from one operation or process that then provides for the proper state and orientation for the next operation or process. In manufacturing, a means for automatic unloading and orientation for the next operation so the operator can simply insert the new work, thus reducing his/her cycle time; generally a very simple device. Crucial for a “Chaku-Chaku” line.
Heijunka	A production scheduling / load leveling method of distributing customer orders or kanban for a specific cell so that the load on the cell is constant over time even though the workload associated with different parts made in that cell may not be the same. This is a load smoothing mechanism that involves averaging both the volume and sequence of different model types on a mixed-model production line in order to make Just-In-Time production possible. See Mixed Model Production.
Hison Planning	Policy management or Strategy deployment. A method for establishing goals (and policy which supports and enhances those goals) and ensuring that these goals are the primary focus of the organization.
Histogram	A graphic summary of variation in a set of data. The visual nature of the histogram reveals patterns that are difficult to see in a table of numbers. The histogram is one of the Basic Seven Tools of Quality.
Hoshin Kanri	The Japanese word for policy deployment. In Japanese, Hoshin means “shining metal”, “compass” or “pointing in the direction”. Kanri means “control”. Hoshin Kanri is a method devised to capture and concertize strategic goals as well as flashes of insight about the future and develop the means to bring these into reality. It is one of the major systems that make World Class Quality / Management possible. It helps control the direction of the company by orchestrating change within a company. The system includes tools for continuous improvement, breakthroughs, and implementation. The key to hoshin planning is that it brings the total organization into the strategic planning process; both top down and bottom up. It ensures that the direction, goals, and objectives of the company are rationally developed, well defined, clearly communicated, monitored, and adapted based on system feedback. It provides focus for the organization.
Hoshin Planning (HP)	Also known as "Management by Policy" or, alternatively, "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 a company aligned with its overarching strategic plans. Hoshin Planning typically begins with the "visioning process," which addresses the key questions: Where do you want to be in the future? How do you 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 whats, whens, whos and hows throughout the entire organization.
I
Improvement	As a part of a successful Kaizen strategy, "improvement" goes beyond the dictionary definition of the word. Improvement is a mindset of maintaining and improving standards. In a still broader sense, improvement can be defined as Kaizen and Innovation, where a Kaizen strategy maintains and improves working standards through small, gradual improvements, and innovation calls for radical improvements as a result of large investments in technology, processes, and/or equipment. The Kaizen strategy clearly delineates responsibilities: workers are to maintain standards, and managers are to improve standards. The Japanese perception of management boils down to one precept: maintain and improve standards.
Indirect Worker	A person who is involved in the manufacture of product but does not directly participate in the transformation of that product. Indirect workers may either be doing physical work (receiving, shipping, moving, etc.) or may be doing knowledge work (supervising, scheduling, engineering, etc.).
Information Management Task	The task of taking a specific product from order-taking through detailed scheduling to delivery. [See Value Stream]
Informative Inspection	A form of inspection used to determine non-conforming product. [See Inspection or Judgment Inspection]
Inspection	Comparing product, or component against specifications to determine if such product or component meets requirements. [See Judgment Inspection or Informative Inspection]
Internal Setup (IED)	Tasks associated with switching a process from one product to another that can only be performed with the process stopped. Also known as IED - "inner exchange of die" [See: Single Minute Exchange of Die (SMED), External Setup]
Inventory	All goods, which have been or are going to be worked on to produce products for customer consumption. There are 3 basic categories of inventory: Raw: material sent by suppliers but not yet worked on by internal personnel/processes. Work In Process: raw material which has had some value added (it has been through some transformational steps). Finished Goods: final product(s) completed and on the shelf, waiting customer orders. Inventory = Throughput Rate x Cycle Time (Little’s Law)
Inventory Turns	A measure of the capital efficiency of an operation. One turn is equal to the complete consumption and replenishment of the inventory in question. The number of inventory turns is usually based on a calendar year and is a commonly used indicator for the lean-ness of an organization. Inventory Turns = 365 / Inventory Days of Supply \| or = 365 / Inventory $/ Daily Sales $ \| or = Throughput Rate / Inventory
ISO 9000 Series Standards	A set international standards on quality management and quality assurance developed to help companies effectively document required quality system elements. The standards are not specific to any particular industry, product, or service. They were developed by the International Organization for Standardization (ISO), an agency composed of the national standards bodies of ninety-one countries.
J
Jidohka	A form of automation in which machinery automatically inspects each item after producing it, ceasing production and notifying humans if a defect is detected; Toyota expands the meaning of jidoka to include the responsibility of all workers to function similarly, i.e. to check every item produced and to make no more if a defect is detected, until the cause of the defect has been identified and corrected. [See: Kaizen]
Jishu Kanri	Self-management, or voluntary participation.
Judgment Inspection	A form of inspection used to determine non-conforming product. [See: Inspection or Informative Inspection]
Just-In-Time (JIT)	A manufacturing philosophy that seeks to make exactly what is needed, when it is needed in the current quantity with no waste. The groundwork for JIT was based on work by Kiichiro Toyoda who studied Henry Ford’s methods and tried to adapt them to small lot production. Principles that are fundamental to Time-Based Competition are waste elimination, process simplification, set-up and batch-size reduction, parallel processing, and layout redesign, and are critical skills in every facet of the lean organization. The key elements/concepts of JIT are Flow, Pull, Standard Work, and Takt. A production scheduling concept that calls for any item needed at a production operation - whether raw material, finished item, or anything in between, to be produced and available precisely when needed, neither a moment earlier nor later. A system of managing production processes that result in line- balancing, one-piece flow, little or no excess material inventory on hand at the plant site and little or no incoming inspection. This system was developed at Toyota under the leadership of Taiichi Ohno and is sometimes referred to as "The Toyota Production System".
Jutsu	The art of something (i.e., 'leanjutsu: the art of lean production').
K
Kaikaku	Innovative, degree(s) of magnitude leaps in improvement, technology or process and system changes, sometimes used as a precursor to Kaizen activities, usually applied only once within a business process, that affects the entire value stream.
Kaizen	A combination of two Japanese words Kai (change) and Zen (good). Usually defined as "continuous improvement." The philosophy of continual improvement, that every process can and should be continually evaluated and improved in terms of time required, resources used, resultant quality, and other aspects relevant to the process. When applied to the workplace, Kaizen means continuing improvement involving everyone - managers and workers alike. Kaizen is not limited to manufacturing systems only. It also means continuing improvement in personal life, home life, social life, and working life.
Kaizen Breakthrough	A time-sensitive, rapid-deployment methodology that employs a focused, team-based approach. Continuous improvement.
Kaizen Culture	An organizational culture based on the three super ordinate principles - Process and Results, Systemic Thinking, and Non-judgmental, Non-Blaming.
Kaizen Strategy	A business strategy that begins with the customers' needs concerning Quality, Cost, and Delivery, is founded on a people-oriented culture, is supported by an involved leadership, and consists of three integrated core elements — Principles and Concepts; Systems; and Tools.
Kanban	A communication tool in the "just-in-time" production and inventory control system which authorizes production or movement. It was developed by Taiichi Ohno at Toyota. Kanban is a card or signboard (or any other authorizing device) that is attached to specific parts in the production line signifying the delivery of a given quantity. The quantity authorized per individual kanban is minimal, ideally one. The number of circulating or available kanban for an item is determined by the demand rate for the item and the time required to produce or acquire more. This number generally is established and remains unchanged unless demand or other circumstances are altered dramatically; in this way inventory is kept under control while production is forced to keep pace with shipment volume. A routine exception to this rule is that managers and workers are continually exhorted to improve their processes and thereby reduce the number of kanban required. When fully implemented, kanban (the plural is the same as the singular) operates according to the following rules: All production and movement of parts and material take place only as required by a downstream operation, i.e. all manufacturing and procurement are ultimately driven by the requirements of final assembly or the equivalent. The specific tool which authorizes production or movement is called a kanban. The word literally means card or sign, but it can legitimately refer to a container or other authorizing device. Kanban have various formats and content as appropriate The quantity authorized per individual kanban is minimal, ideally one. The number of circulating or available kanban for an item is determined by the demand rate for the item and the time required to produce or acquire more. This number generally
Karoshi -	Death from overwork.
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Lead Time (Manufacturing)	The time to manufacture and deliver a product or service. This term is used in many (often contradictory) contexts. To avoid confusion, lead time is defined as the average total elapse time for execution of the product delivery process from order receipt to delivery to the customer, under normal operating conditions. In industries that operate in a build-to-order environment, lead times flex based on the influences of seasonal demand loads. In environments where production is scheduled in repeating, fixed-time segments or cycles, the lead time is usually determined by the length of the production cycle (i.e., days, weeks, months, etc.). In service industries, lead time represents the total time elapsed from when a customer expresses a need to when that need is satisfied.
Lead Time (Total)	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.
Leadership	An essential part of the quality improvement effort. Organizational leaders must shape the culture and establish a vision, communicate that vision to the people and provide the systems, tools, and skills necessary to accomplish it.
Lean	The concept of creating processes which are highly responsive and flexible to customer demand requirements. Successful lean implementation is evident when processes are capable of consistently delivering the highest quality products and services, at the right location, at the right time, in response to customer demand and doing this in the most effective and efficient manner possible. The central tenant of Lean is the elimination of waste.
Lean Conversion	Business processes requiring less human effort, capital investment, floor space, materials, and time in all aspects of operation. (See Lean manufacturing)
Lean Enterprise	All aspects of an organization, from the beginning of the supply chain, through the production process, and including your customer base. As you 'lean' your organization, you will find that certain constraints exist outside of your company.
Lean Manufacturing	1) The philosophy of continually reducing waste in all areas and in all forms; 2) An English phrase coined to summarize Japanese manufacturing techniques (specifically, the Toyota Production System).
Lean Production	1) A business system for organizing and managing product development, operations, suppliers, and customer relations that requires less human effort, less space, less capital, and less time to make products with fewer defects to precise customers. 2) Using the minimum amount of total resources (man, materials, money, machines, etc) to produce a product and deliver it on time.
Lean Thinking	Lean Thinking explains the basic principles and clearly demonstrates simple ideas can breathe new life into any company in any industry, routinely doubling both productivity and sales while stabilizing employment. The five principles guides managers to achieve lean in the manufacturing and services industry. Specify value from the standpoint of the end customer. Identify all the steps in the value stream. Make the value creating steps flow toward the customer. Let customers pull value from the next upstream activity. Pursue perfection.
Line Balancing	A scheduling method that nets out demand and production over time. The “line of balance” is typically a spreadsheet where weekly production is subtracted from bucketed demand to give a “remainder” which is due next week. The shop works off of the balance due.
Line Capacity	The maximum output of a given set of operations based on the rate-determining step or pacing operation. The capacity may be determined by machine speed, operator speed, set-up/changeover time, or operation yield. See Pacemaker Process.
Line Configuration	The orientation of machines and/or workstations to each other. There are several standard line configurations: Pod / Workstation, L shaped, U Shaped, Straight Line, Combi Line.
Load-Load	A method of conducting single-piece flow, where the operator proceeds form machine to machine, taking the part from one machine and loading it into the next. [Same as Chaku-Chaku]
Lot Size of one -	A lot size of one makes it possible to adapt when demand is changing. If lot-size is, for example 100 and demand is changing, the firm ends up with inventory (let's say 45 pieces) and there will be the possibility that this inventory-level will only slowly decrease. This is because when demand is increasing again a new batch will be produced, which is to be sold. The inventory level is too low to sell and will only be sold by chance, when someone asks for a lower amount of pieces.
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Machine Capacity	A measure of a process or machine’s ability to make product. Simple capacity is determined by the ratio of available time to part-machine cycle time. Expressed as units / hr, day, month, etc. A more robust capacity calculation involves set-up and maintenance down time.
Machine Cycle Time	The time it takes for a machine to produce one unit, including the time it takes to load and unload.
Maintenance	Refers to activities directed to maintaining current technological, managerial, and operational standards. Maintenance in this sense constitutes a "floor" upon which improvement efforts are based. Maintenance, thus, is distinguished from KAIZEN and Innovation, which move the "floor" upward by means of the PDCA cycle.
Make/Buy Analysis	The process of determining which parts/ processes will be kept in house and which will be farmed out to vendors. Usually based on competency analysis, the availability of capital, and the “fit” of the products into product families (i.e. planned work cells)
Management by Policy	See "Hoshin Planning"
Manufacturing Resources Planning II (MRPII)	A second generation MRP system that provides additional control linkages such as automatic purchase order generation, capacity planning, and accounts payable transactions and shop floor control modules.
Market-In	Contrasted to Product-Out, this concept concerns a factual understanding of customer needs and wants, and figures in how to satisfy them, rather than assuming that the company knows what those needs and wants are. It also implies that those companies do best who can anticipate the latent customer needs and wants before customers are even aware that such products and services might be possible.
Master Schedule	A macro listing of end items to be produced by a facility within a given time period. Usually performed monthly. The master schedule serves as a basis for: capacity planning, material requirements planning and shop floor control (detailed scheduling).
Materials Requirements Planning (MRP)	A computerized information system that calculates materials requirements based on a master production schedule. This system may be used only for materials procurement or to also execute the material plan through shop floor control.
Milk Run	A standard “path” around a factory, or around a loop of suppliers that happens on a defined schedule and sequence. The intent of the run is to pick-up and drop off materials. The milk run precludes the need to schedule point-to-point transportation and improves transportation economies by aggregating different “supplies” within a single vehicle.
Mistake Proofing:	A method of designing processes, either production or administrative, which will by their nature prevent errors. This may involve designing fixtures that will not accept a defective part or something as simple as having a credit memo as a different color than a debit memo. It requires that thought be put into the design of any system to anticipate what can go wrong and build in measures to prevent them.
Mixed-model production	Making different products on the same production line. The different products may require different resources, set-ups and labor content. Mixed model production smoothes out the resource consumption by alternating products to smooth the load. Mixed model differs from traditional “batch” production by alternating models on a fairly short cycle. In “batch” many models may share the line but, only one model will be run at a time. In mixed model, changeover times must be less than takt time. See Heijunka
Mixed Model Sequence	The optimum pattern for running different products down a production line. The Mixed model sequence defines the pattern and ratio of products that minimizes the changeover difficulties, levels the work and balances the flow. See Heijunka.
Mizusumashi or Water spider	The name water spider represents a different way of thinking about the flow of materials. Instead of seeing how much you can bring at one time to be more "efficient", the water spider or water strider brings to mind the small bug balanced on top of water responding to signals. When “dinner” alights on water nearby, the vibration calls the water spider who skates over the surface tension to achieve success. A water spider in material flow: Is the short-term solution to have the assemblers increase the percentage of their time creating value. Responds flexibly and rapidly to bring just what the operator needs just when it is needed to add value to the product. Moves frequently and quickly on a route of some kind that is coordinated with takt time. If the waterspider carries too much, it falls through, i.e., it can't keep up with takt time and quick changeovers Works outside of the core value-adding process presenting materials in the right order and in the right orientation Does the factory’s walking, waiting, getting, moving, transporting, filling, copying, filling, etc. Are key individuals who have high involvement and understanding of the value-adding process, and are most often on the high end of the production pay scale. An illustration of this is: 23 people spending ½ to 2 hours a day walking, looking, waiting, etc. equals 12-46 hours per day of non-valued added time vs. 1 person spending 8 hours walking, looking, waiting, etc. which equals 8 hours, a reduction of 33% - 82% in wasted time. In the long term, as waste is eliminated the water spider's job evolves into a cell support person. At this point, the job becomes back filling absent (cell) employees, maintaining POU inventory and transporting completed product.
Mokeru	The Japanese term for the industrial engineering, more properly translated as "profit-making industrial engineering"
Monument	A large, immovable production machine or process that forces batching and queuing to optimize its efficiency.
Muda (waste)	1) Japanese word for "Waste". 2) One of the "3 Ms" (Muda, Mura [Irregularity or Unevenness] and Muri [Strain].) 3) Anything that interrupts the flow of products and services through the value stream and out to the customer is designated Muda or waste. 4) Any human activity which absorbs resources, but creates no real value. [See Non-Value Added, Waste] 5) Activities and results to be eliminated; within manufacturing, categories of waste, according to Shigeo Shingo, include: Overproduction - excess production and early production Waiting - waste time spent at the machine; delays Transportation - waste involved in the movement and transportation of units Processing - waste in processing; poor process design Inventory - waste in taking inventory Motion - actions of people or machinery that do not add value to the product Defective units - production of an item that is scrapped or required rework Unused Talent - not utilizing the talent of your staff in the right jobs or place within the organization
Muda Walk	A half-hour walk through the Gemba to observe evidence of what may be various types of Muda. The object of this walk is to show that the Gemba is full of data and opportunities for improvement for those whose eyes are trained to see them. Muda walks are not intended to provide opportunities for blaming and finding fault.
Mura	(One of the "3 Ms".) 3) Inconsistency, irregularity or unevenness. 2) Variations in process quality, cost and delivery
Muri	(One of the "3 Ms".) Muri means unreasonableness or strain. 2) Demand exceeds capacity.
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Nagara	Smooth production flow, ideally one piece at a time, characterized by synchronization (balancing) of production processes and maximum utilization of available time, including overlapping of operations where practical.
Nagara System	1) A production system where seemingly unrelated tasks can be produced by the same operator simultaneously. 2) Accomplishing two or more activities with one motion.
Ninjutsu	The art of invisibility (applies to management).
Non-Judgmental, Non-Blaming	One of three KAIZEN Principles. Contrasted to the traditional tendency to find who is to blame for problems and mistakes, this approach looks at the problem with others to seek a solution. Also implicit in this principle is an approach of childlike curiosity about how things work and how they can be improved, instead of judging whether things already done are good or bad, right or wrong. The principle does not imply that managers must never exercise judgment, since good judgment is always required in decision-making.
Non-Statistical Quality Control	Much of quality control is non-statistical, particularly that portion which has to do with human resources. Elements are: self-discipline, morale, communications, human relations, and standardization. Statistics are only one tool in Quality Control and are of limited use with regard to human beings and methods.
Non-Value Added	1) Activities or actions taken that add no real value to the product or service, making such activities or action a form of waste. [See: Value Added]. 2) Those actions in the workplace that the customer is not willing to pay for.
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One Piece Flow	1) A manufacturing philosophy which supports the movement of product from one workstation to the next, one piece at a time, without allowing inventory to build up in between. 2 ) The concept of reducing production batch/lot sizes to minimal size, preferably to a single unit. This can have dramatic affects on raw material, WIP, and finished goods inventories, as well as on production lead times, quality, and costs.
One Point Lessons	Short visual presentations on a single point. A simple yet powerful learning and operational tool. When applied systematically throughout the work site, one-point lessons provide many benefits in deploying just-in-time knowledge and skills across an organization. One-point lessons have three purposes: - To sharpen job-related knowledge and skills by communicating information about specific problems and improvements. - To easily share important information just-in-time. - To improve the team's performance.
One-Touch Exchange of Dies (OTED)	The reduction of die set-up where die setting is reduced to a single step. [See: Single Minute Exchange of Die, Internal Setup, or External Setup]
Order Point	A system for controlling stock room inventory based on consumption and supplier replenishment time. Loosely related to Kanban. Order point = Average daily demand * (replenishment time + safety lead time).
Operating Expenses	The money the required for the system to convert inventory into throughput.
Operations	A series of tasks grouped together such that the sum of the individual task times is equal to the takt time (cycle time to meet product demand requirements). It is important to distinguish between operations and activities. Operations are used to balance work content in a flow manufacturing process in order to achieve a particular daily output rate equal to customer demand. An operation defines the amount of work content performed by each operator in order to achieve a balanced flow and linear output rate. [See: Process, Sub-Process]
Operator Cycle Time	The time it takes for a person to complete a predetermined sequence of operations, inclusive of loading and unloading, exclusive of time spent waiting.
Overall Equipment Effectiveness (OEE)	A measure of the performance of a machine relative to its intended design performance. Detracting from optimum performance are: Machine Down Time Below-spec feeds and speeds Process Yield Non-staffed time
Overproduction	Producing more, sooner or faster than is required by the next process.
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Pacemaker	A technique for pacing a process based on takt time.
Pacemaker Process	Any process along a value stream that sets the pace for the entire stream. (The pacemaker process should not be confused with a bottleneck process which necessarily constrains downstream processes due to a lack of capacity.)
Pareto Chart (Diagram)	1) A graphic tool for ranking causes of problems from the most significant to the least. It is based on the Pareto Principle that most effects come from twenty percent of the possible causes. The Pareto Chart is one of the seven basic tools of quality. 2) A tool (histogram or vertical bar chart) used for analyzing the relative occurrence of defects, developed by Italian economist Vilfredo Pareto, circa A.D. 1900. Pareto's Law refers to Pareto's observation that wealth distribution generally ranges eighty percent for twenty percent of the population; fifteen percent for thirty percent of the population and five percent for fifty percent of the population.
Part or Product Family	A group of parts, components or assemblies which follow a common process, have similar technical and manufacturing requirements, and therefore, can be run on a single production line.
Perfection	Always optimizing value-added activities and eliminating waste.
Physical Transformation Task	The task of taking a specific product from raw materials to a finished product in the hands of the customer. [See: Value Stream]
Pitch	The pace and flow of a product. Pitch is generally determined by the takttime or customer demand for a product and the pack-out quantity per box or package. Example: Takt time is 1 minute/piece. The box holds 12 pieces. The Pitch is 12 minutes.
PDCA (Plan, Do, Check and Act)	An adaptation of the Deming wheel. While the Deming wheel stresses the need for constant interaction among research, design, production, and sales, the PDCA Cycle asserts that every managerial action can be improved by careful application of the sequence: plan, do, check, action (see also SDCA Cycle). Plan. Senior management should use the visioning process in the context of its Business Plan. HP (Hoshin Planning) 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.
Point Kaizen	An improvement activity intensely directed at a single workstation, performed quickly by two or three specialists. Typically follows a full-blown kaizen event.
Point of Use (POU) Inventory	Storage of raw and in process inventory at a location that is in the proper place for efficient use. Point of use is basically on line or in cell storage. The degree of POU is limited by the configuration of the cell/line and the replenishment time associated with the feeding process/supplier.
Poka-Yoke	1) A Japanese word for mistake proofing 2) A poka yoke device prevents a human error from affecting a machine or process; prevents operator mistakes from becoming defects. 3) 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.
Policy	Describes long- and medium-range management orientations as well as annual goals or targets. Another aspect of policy is that it is composed of both goals and measures. Goals are usually quantitative figures established by top management, such as sales, profit, and market share targets. Measures, on the other hand, are the specific action programs to achieve these goals. A goal that is not expressed in terms of such specific measures is merely a slogan. It is imperative that top management determine both the goals and the measures and then "deploy" them down throughout the organization.
Policy Deployment	1) Matching the strategic business goals of an organization to its available resources. Communicating those goals throughout the organization and linking everyone to the same objectives. 2) The process of implementing the policies of a Kaizen program directly through line managers and indirectly through cross-functional organization. It involves the selection of goals, projects to achieve the goals, designation of people and resources for project completion, and establishment of project metrics. [Same as Hoshin Kanri]
Policy Prioritization	A technique to ensure maximum utilization of resources at all levels of management in the process of policy deployment. Top management's policy statement must be restated at all management levels in increasingly specific and action oriented goals, eventually becoming precise quantitative values.
Predictive Maintenance	Performing maintenance activities on machines based on several predictive measures: Monitoring of run time Life of machine part based on statistical analysis Sensing of temperatures and pressures Listening to high frequency machine generated noises
Preventative Maintenance	Performing routine maintenance on machinery based on fixed schedules related to either clock or run time or both.
Principles of Kaizen	The three bedrock principles upon which KAIZEN thinking and organizational culture are based. 1. Process and Results, 2. Systemic Thinking, and 3. Non- Judgmental (Non-Blaming).
Problem Solving Task	The task of taking a specific product from concept through detailed design and engineering to production launch. [See Value Stream]
Process	The flow of material in time and space. The accumulation of sub-processes, or operations that transform material from raw material to finished products.
Process and Results	1) One of the three foundation principles of KAIZEN thinking. It is contrasted with results only, the common old paradigm approach which ignores the way in which things are done, and so misses any opportunity for systematic improvement. 2) Can also be stated as Process Creates Results.
Process Capability	The measured, inherent reproducibility of the product turned out by a process. The most widely adopted formula for process capability (Cp) is: Process Capability (Cp) = 6 sigma = Total Tolerance/6, where sigma = the standard deviation of the process under a state of statistical control.
Process Capability Index	A measure of the ability of a set of actions (process) to deliver a result within a specified range. Abbreviated as CPK Cpk = Lesser of Cpu or Cpl where: Cpu = (upper Specification - Process Mean) / 3sigma \| and Cpl = (process Mean - Lower Specification) / 3sigma Interpretation of the Cpk index is generally as follows: > 1.33 More than adequate between 1.00 and 1.33 Adequate, but must be monitored as it approaches 1.00 between .67 and 1.00 Not adequate for the job < 0.67 Totally inadequate
Process Capacity Table	A chart primarily used in a machining environment that compares machine load to available capacity.
Process Kaizen	Improvements made at an individual process or in a specific area. Sometimes called "point kaizen". Continuous improvement through incremental improvements. [Same as Kaizen]
Processing Time	The time a product is actually being worked on in a machine or work area.
Production Kanban	A visual signal used to initiate the production process. The number of cards is calculated by: # cards = (average daily demand * (replenishment time +safety)) # of pieces in a container See Kanban
Production Smoothing	A process of managing top-level demand (through the master production schedule) that results in lower demand variability. Production smoothing involves a tradeoff between capacity and short-term customer requirements. See Heijunka
Product-Out	Understood in contrast to the KAIZEN concept, Market-In. Assumes that whatever a company knows how to make and when, is good enough to satisfy customer requirements.
Project Management	A set of disciplines intended to turn the management of non-repetitive activities into a science. First developed by NASA for the Apollo Program. Key concepts: WBS - work breakdown structure; a hierarchical breakdown of the deliverables RBS - resource breakdown structure; a breakdown of the skill groups impacting the deliverables OBS - organizational breakdown structure; the assignment of resources to management units PERT - an activity network defining interrelationships GANTT - a bar graph showing sequence of activities & progress
Pull System	1) One of the 3 elements of JIT. 2) A process for production by reducing inventories. 3) A manufacturing planning system based on communication of actual real-time needs from downstream operations ultimately final assembly or the equivalent - as opposed to a push system which schedules upstream operations according to theoretical downstream results based on a plan which may not be current.
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.
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QCD (Quality, Cost Delivery)	The three super-ordinate goals of Quality, Cost, and Delivery at the heart of KAIZEN Strategy.
Quality	Although there are many definitions offered for this term, two are of key importance. 1) The first has to do with customer satisfaction and can be stated, "Any product or service that continually delights the customer." 2) The second definition refers to the internal processes of an organization that serve customers. Quality is "the continual elimination of waste in, and improvement of, every process." It is only when Quality is understood in this latter sense that companies can deliver higher quality, lower cost, and on-time delivery simultaneously while meeting expectation and requirements, stated and un-stated, of the customer.
Quality at the Source	Prevention versus detection.
Quality Control Circles	A small group that voluntarily performs process improvement activities within the workplace.
Quality First	One of the seven KAIZEN Concepts. The concept states that if either delivery or cost leads quality in efforts to improve, no improvement will take place in the long run.
Quality Function Deployment (QFD)	1) A system whereby customer requirements, known as "true quality characteristics" are translated into designing characteristics, known as "counterpart characteristics", and then deployed into such sub-systems as components, parts and production processes to develop new products precisely designed to meet customer needs. 2) One of the Seven KAIZEN Systems. 3) Using a cross-functional team to reach consensus that final engineering specification of a product are in accord with the voice of the customer. 4) A visual decision-making procedure for multi-skilled project teams which 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. NOTE: 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.
Queue Time	The time a product spends in a line awaiting the next design, order-processing, or fabrication step.
Quick and Easy Kaizen	A Kaizen event that is initiated and implemented by the proceeding owner. The improvement generally only affects the person who initiated its area.
Quick Changeover	The ability to change tooling and fixtures rapidly (usually minutes), so multiple products can be run on the same machine. (See Single-Minute Exchange of Dies- SMED)
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Radar Chart	A circular chart with ten rays and spokes, one for each of the three principles and seven concepts of Kaizen - used as a diagnostic tool to measure on a scale of zero (at the hub) to ten (at the rim) the degree of consistency with Kaizen principles and concepts exhibited by an organization.
Real Value	Attributes and features of a product or service that, in the eyes of customers, are worth paying for. [See: Value Added, Non-Value Added]
Reengineering	The engine that drives Time-Based Competition. To gain speed, firms must apply the principles of re-engineering to rethink and redesign every process and move it closer to the customer.
Resource Activation	Using a resource regardless of whether throughput is increased. [See: Resource Utilization]
Resource Utilization	Using a resource in a way that increases throughput . [See: Resource Activation]
Results-Oriented Management	A style of management usually associated with controls, performance, product or "bottom line" considerations, rewards and/or punishments.
Right-size	Matching tooling and equipment to the job and space requirements of lean production.
Rolled -Throughput Yield	The geometric sum of the yields of operations linked in a process.
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Safety Stock	Material kept on hand to deal with variation: demand, production, and quality.
SDCA Cycle	Stand for: standardize, do, check, action - a refinement of the PDCA Cycle wherein management decides first to establish the standard before performing the regular PDCA function. [See: PDCA]
Seiban	The name of a Japanese management practice taken from the Japanese words "sei", which means manufacturing, and "ban", which means number. A Seiban number is assigned to all parts, materials, and purchase orders associated with a particular customer job, or with a project, or anything else. This enables a manufacturer to track everything related with a particular product, project, or customer. It also facilitates setting aside inventory for specific projects or priorities. That makes it great for project and build-to-order manufacturing.
Sensei	1) One who provides information; a teacher, instructor, or rabbi. 2) An outside master or teacher that assists in implementing lean practices.
Sequential Changeover (Sequential Set-up):	(When changeover times are within Takt time, changeovers can be performed one after another in a flow line.) 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.
Setup Time -	Work required to change over a machine or process from one item or operation to the next item or operation; can be divided into two types: Internal (work that can be done only when the machine or process is not actively engaged in production) OR External (work that can be done concurrently with the machine set up time).
Setup-Time Reduction -	A process for improving production uptime by reducing the time it takes to setup the equipment. The goal is to perform all external processes prior to set-up and to minimize the internal processes. (See SMED)
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, overprocessing 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. (see Muda)
Shojinka -	Continually optimizing the number of workers in a work center to meet the type and volume of demand imposed on the work center. NOTE: Shojinka requires workers trained in multiple disciplines; work center layout, such as U-shaped or circular, that supports a variable number of workers performing the tasks in the layout; the capability to vary the manufacturing process as appropriate to fit the demand profile.
Shusa	The leader of the team whose job is to design and engineer a new product and it into production.
Single Minute Exchange of Die (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. Literally, changing a die on a forming or stamping machine in less than a minute; broadly, the ability to perform any setup activity in less than a minute of machine or process downtime; the key to doing this is frequently the capability to convert internal setup time to external setup time; variations on SMED include: Single-digit setup - performing a setup activity in a single-digit number of minutes, i.e. fewer than ten. One touch exchange of die (OTED) - literally, changing a tool with one physical motion such as pushing a button; broadly, an extremely simple procedure for performing a setup activity.
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. (Also known as One-Piece Flow).
Six Sigma	A structured process improvement program for achieving virtually zero defects (3.4 parts per million) in manufacturing and business processes. Six Sigma is a tool used in reducing process variation within a single process.
Soikufu	"Creative thinking", "inventive idea" or capitalizing on workers suggestions This is also what Westerns have adopted as an 8th type of Waste ( non-utilization of peoples brain talent
Sojinka	(See Flexible Manning)
Spaghetti chart or diagram	A pictorial representation of the path a product follows through a production process.
Speak With Data	One of the Seven Kaizen Concepts. Refers to the importance of collecting solid evidence wherever possible before making decisions. Stresses the importance of going to Gemba and collecting data from the source.
SQA (Supplier Quality Assistance)	As part of GWQC (Group Wide Quality Control), it is essential that this system is in place to make sure that incoming materials and components meet quality specifications.
Standard Costing	A method of determining the resources ($) required to produce a unit of production. Pioneered by GM in the 1920’s and 30’s so that its management could make decisions about which models to produce, the standard cost system bases the “cost” of a product on the number of hours of direct labor applied to that product. Non-direct activities are lumped in an overhead pool and then allocated based on ratio’s of direct labor to products produced in the analysis period.
Standard Deviation	A statistical measure of variation based on the normal distribution curve.
Standard Operating Procedure (SOP)	Documented procedures for performing a function or set of functions. May be based on policy or technical requirements.
Standard Operations	The best combination of people and machines utilizing the minimum amount of labor, space, inventory and equipment.
Standard Work	(The term “standard” is one of the most confused terms in our profession. "Standards" really means work processes. Most technicians often feel that standards inhibit their personal creativity. To the contrary, standards will give the worker the power to make changes.) 1) Specifying tasks to the best way to get the job done in the amount of time available while ensuring the job is done right the first time, every time. 2) 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. 3) As defined at Toyota, this is the optimum combination of workers, machines and materials. It includes - [1] Production to TAKT time, [2] Defined work sequence, and [3] Standard work in process.
Standard Work Combination Sheet	A document showing the sequence of production steps assigned to a single operator:, used to illustrate the best combination of worker and machine.
Standard Work in Process	Minimum material required to complete one cycle of operator work without delay.
Standard Work Layout	A diagram of a work station or cell showing how standard work is accomplished.
Standardization	One of the Seven Kaizen Systems. Pertains to enhancing and enforcing standards throughout an organization.
Standards	A set of policies, rules, directives and procedures established by management and workers for all major operations which serve as guidelines enabling all employees to perform their work in the best, easiest, healthiest and safest way currently known. These involve comparison with accepted norms, such as are set by regulatory bodies. Example: "Meeting the Good Manufacturing Practice" criteria set by the Food and Drug Administration (FDA).
Statistical Fluctuations	Kinds of information that cannot be precisely predicted.
Statistical Quality Control (SQC)	The use of statistical tools (Pareto Charts, Histograms, Check Cause-and-Effect Diagrams, etc.) to ensure that machines are within acceptable tolerances, or to solve quality problems through the use of tools.
Stop-The-Line Authority	When abnormalities occur, workers have power to stop the process and prevent the defect or variation from being passed along.
Strategy Deployment	See "Hoshin Planning".
Sub- Optimization	1) A condition where gains made in one activity are offset by losses in another activity or activities (created by the same actions creating gains in the first activity). 2) Optimizing each piece of equipment; keeping all machines running, no matter the cost or consequence. Typically this inflates the number-one cost of production: material.
Sub-Processes	A series of operations combined. Part of a process
Suggestion System	(One of the Seven Kaizen Systems) A essential part of individual-oriented Kaizen, its design is carefully plotted, implemented and communicated. Scrupulous attention is paid to top management responsiveness, and to developing a system of feedback, recognition, and rewards.
Supermarket	A group of products (usually situated either at the end of the production line or in close proximity to the “customer”) which is stored to respond to instantaneous demand. Supermarket stock levels are determined through an understanding of the customer demand patterns, a company’s service policy and the production line’s replenishment rate for all products which it makes.
Supplier Kanban	A method of signaling replenishment requirements to suppliers.
System	A system is the infrastructure that enables the processes to provide value to the customer. Business systems are comprised of market, customer, competition, organizational culture, environmental and technological influences, regulatory issues, physical resources, procedures, information flows, and knowledge sets. It is through physical processes that business systems transform inputs to outputs and, thereby, deliver products and services of value in the marketplace.
System Kaizen	Improvement aimed at an entire value stream.
T
Takt Time	A German term for rhythm; the allowable time to produce one product at the rate customers are demanding it. This is NOT the same as cycle time, which is the normal time to complete an operation on a product (which should be less than or equal to 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.
Taylor, Frederick Winslow (1856-1915)	An American industrial engineer, who originated scientific management in business. He was born in Germantown (now part of Philadelphia), Pennsylvania. In 1878, he began working at the Midvale Steel Company. He became foreman of the steel plant and applied himself to studies in the measurement of industrial productivity. Taylor developed detailed systems intended to gain maximum efficiency from both workers and machines in the factory. These systems relied on time and motion studies, which help determine the best methods for performing a task in the least amount of time. In 1898 he became joint discoverer of the Taylor-White process, a method of tempering steel. Taylor served as consulting engineer for several companies. His management methods were published in The Principles of Management.
Teian	A proposal, proposition, or suggestion. A teian system can be likened to a system which allows and encourages workers to actively propose process and product improvements.
Theory of Constraints (TOC)	A management hypothesis developed by Eli Goldratt and documented in his book “The Goal”. The theory states that within a production operation, machines, equipment and resources should not be viewed as a set of independent variables but instead should be viewed as an interconnected chain of dependent variables. With this view, there is a single constraint for each set of interconnected operations and this constraint the results (capacity) for all other related operations.
Three Ds (3Ds)	Dirty, dangerous, difficult.
Throughput	The rate the system generates money through sales.
Throughput Time	A measure of the actual throughput time for a product to move through a flow process once the work begins. Many people incorrectly label this measure as manufacturing lead time but it is actually a small subset and often has little to do with the total time from order inception to fulfillment.
Time Based Strategy	Organizing business objectives around economy-of-time principles.
Total employee involvement (TEI)	Building a culture and practice of involvement and responsibility in every person in the organization
Total Productive Maintenance (TPM)	Aims at maximizing equipment effectiveness throughout the entire life of the equipment. It involves such basic elements as a routine maintenance system, education in basic housekeeping, problem-solving skills, and activities to achieve zero breakdowns. TPM is one of the Seven Kaizen Systems. 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. It has five goals: Maximize equipment effectiveness (improve overall efficiency). Develop a system of maintenance for the life of the equipment. Involve all departments that plan, design, use, or maintain equipment. Actively involve all employees Promote TPM through small group activities
Total Quality Control (TQC)	1) A holistic, company or even group-wide approach to quality. 2) TQC is the "what", Kaizen is the "how" or process of the new business paradigm. It begins and ends with people. 3) TQC is one of the seven Kaizen Systems. Organized Kaizen activities involving everyone in the company - managers and workers - in a totally integrated effort toward improving performance at every level. This improved performance is directed toward satisfying such cross-functional goals as quality, cost, scheduling, manpower development, and new product development. It is assumed that these activities ultimately lead to increased customer satisfaction. (Also referred to as CWQC - Company-Wide Quality Control.)
Toyota	Changed from the true form, Toyoda, meaning abundant rice field, by the Toyota marketing department. Toyoda is the family name of the founders of the Toyota Motor Company.
Toyota Production System	Based on some of the first principles of Henry Ford, this describes the philosophies of one of the world’s most successful companies. The foundation of TPS is production smoothing. The supports are just-in-time and jidoka. See: Lean Production
Upstream Management	One of the seven Kaizen Concepts. Upstream Management is a process whereby, through continuous improvement, first in inspection, then in the line, then in development, defects are eliminated farther and farther "upstream" in the production process.
V
Value	From the perspective of the customer, those aspects or features of our products they are willing to pay for.
Value Added	Activities or actions taken that add real value to the product or service. [See: Non-Value Added]
Value Analysis	Evaluating the total lead-time and value-added time to identify the percentage spent in value added activities.
Value Chain	Activities outside of your organization that add value to your final product, such as the value adding activities of your suppliers.
Value Engineering	The set of specific actions required to bring a specific product through three critical management tasks of any business. See: Problem-solving, Information management and physical transformation.
Value Stream	All of the actions, both value-creating and non value-creating, required to bring a product from concept to launch and from order to delivery. These include actions to process information from the customer and actions to transform the product. 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 (Value Chain Map)	1) A visual picture of how material and information flows from suppliers, through manufacturing, to the customer. It includes calculations of total cycle time and value-added time. Typically written for the current state of the value chain and the future, to indicate where the business is going. 2) Highlights the sources of waste and eliminates them by implementing a future state value stream that can become reality within a short time. 3) Also known as Lean Value Stream Mapping, is an incredibly powerful tool for helping people think about flow. Kaizen, or other improvement efforts, are more effective when applied as part of a strategic plan for building a lean value stream. NOTE: Typical improvement efforts are disappointing, isolated victories, but failing to improve the whole value stream. Mapping the entire value stream should proceed jumping into waste elimination.
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	Those production steps that transform raw materials directly into the features for which the customer assigns value.
Value-Added Analysis	With this activity, a process improvement team strips the process down to its 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.
Variability Control and Recurrence Prevention	One of the seven Kaizen Concepts. This is often called "Ask why five times" because it seeks through curious questioning to arrive at the root cause of a problem so that problem can be eliminated once and for all.
Visible Management	The presentation of a wide variety of information in the workplace. Such information may pertain to jobs themselves, to the business as a whole, to how work teams are progressing on a project. Kanban cards are examples of Visible Management, as are storage bins with sample pans displayed, tool shadow boards, storyboards, etc.
Visual Control	1) 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. 2) Displaying the status of an activity so every employee can see it and take appropriate action. 3) Creating standards in the workplace that make it obvious if anything is out of order.
Visual Factory	1) A facility in which anyone can know in 5 minutes or less the who, what, where, when, how, and why of any work area, without talking to anyone, opening a book, or turning on a computer. 2) Within a facility the creation of a visual language in the workplace to distinguish quickly between normality and abnormality and Illustrate waste in a manner that is obvious to everyone. NOTE: Notice that the concepts and techniques of the Visual Factory apply equally well to non-factory environments such as engineering, purchasing, payroll and human resource departments.
Visual Management	System enabling anyone to quickly spot abnormalities in the workplace, regardless of their knowledge of the process.
Visual Scheduling	Used to communicate priority and sequence along with other pull techniques - Heijunka Box, Kanban Cards, CanWIP (Constant Work In Process). NOTE: Necessary because all too often the forecasts are wrong, the master schedule is overloaded, the rough cut capacity planning standards are unrealistic, labor and machinery aren't available as planned, and materials arrive earlier or later than expected.
Visual Workplace and 5S Campaigns	Often the first thing to do when implementing JIT is to clean and organize the workplace. 5S - Five Japanese words; seiri, seiton, seiso, seiketsu, shitsuke. Variously translated as sort, store, shine, standardize, and self-discipline. The first step is a Red Tag Campaign where unnecessary items are identified and removed. Next comes arranging - a place for everything and everything in its place. Visual communications and controls give operators a chance to know what needs to be done and when.
W
Warusa-Kagen	A term in TQC that refers to things that are not yet problems, but are still not quite right. They are often the starting point of improvement activities because if left untended they may develop into serious problems. In Gemba, it is usually the operators who first notice Warusa-Kagen, and who therefore are on the front line of improvement.
Waste	Any activity that consumes resources but creates no value for the customer.
Water-Spider (Mizusumashi)	A person who manages all the logistical work of bringing components, raw materials, etc. in small quantities to work stations to minimize work-in- process inventories. This allows machines to be placed closer together, and spares the operator from having to interrupt his/her cycle time, thus minimizing transportation muda. Usually are experienced workers who know where needed parts or raw materials are stored, and serve several workstations.
Withdrawal Kanban	A visual signal that notifies the transportation department to move a bin of parts from its production location to its consumption location.
World Class Manufacturing (WCM)	The philosophy of being the best, the fastest, and the lowest cost producer of a product or service while implying the constant improvement of products, processes, and services to remain an industry leader and provide the best choice for customers, regardless of where they are in the process.
Work in Process (WIP):	Product or inventory in various stages of completion throughout the plant, from raw material to completed product.
Work Sequence	The correct steps the operator takes, in the order in which they should be taken.
Y
Yield	Produced product related to scheduled product.
Z
Zero Handling	Zero handling in JIT means eliminating all non-value-adding activities. Boothroyd and Dewhurst stated in 1983 "Design is the first stage in manufacturing and is therefore the single most important process in contributing to both manufacturing costs and labor requirements" So, zero-handling means reducing (namely by redesigning) non-value adding activities.
zero Inventories	Inventories, including work in process, finished goods and sub-assemblies, have to be reduced to zero. There will be no sub-assemblies, no work in process and no finished goods. NOTE: This means a different view then in traditional manufacturing, where inventories are seen as a buffer against a fluctuating demand, or as a buffer against unreliable suppliers. Also, in traditional manufacturing inventory was build up to make sure expensive machines were running for full capacity, because only then the hourly costs were as low as possible.
zero lead-time	Zero lead-time is a result of the usage of small lots and increases the flexibility of the system. When there are no lead-times, the possibility of planning without relying on forecasts becomes larger. NOTE: The JIT philosophy recognizes that in some markets it is impossible to have zero lead-times, but makes clear that when a firm focuses on reducing lead-times, this firm can manufacture more flexible, and is more flexible, than other manufacturers in the same market.
Zero Set-up Time -	Reducing the set up-times leads to a more predictable production. No set-up time also leads to a shorter production time/production cycle, and less inventories.

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