LEAN TERMS, DEFINITIONS, & REFERENCES

3 forms of
waste

The 3 forms of waste are muda (non-value-added tasks), mura (inconsistency),

and muri(excessive stress & strain).
Reference: 7 wastes, muda, mura, muri, waste
Benefits: Understanding the nature of waste is the first step in being able to
recognize it, and thereby work to eliminate it. All of 'lean' is centered around the
identification & elimination of waste, in all it's various forms.

3G (or 3
GEN)

Refers to 3 Japanese words to guide decision making: Gemba (real place),

Gembutsu (real thing), Genjitsu (real data).
'3 GEN' refers to the first syllable of each word. (In Japanese, the 'n' & 'm' sounds
are sometimes mixed. Therefore, 'genba' and 'gemba' refer to the same thing, as
do 'kanban' and 'kamban'.)
Reference: gemba

3P

Production Preparation Process - Also known as 'pre-production planning', 3P is a

powerful and transformative advanced manufacturing tool. While other lean
methods are generally used to eliminate waste in existing processes, 3P focuses
on eliminating waste through product and process design.
3P seeks to meet customer requirements by starting with a clean product
development slate to rapidly create and test potential product and process
designs that require the least time, material, and capital resources. This method
typically involves a diverse group of individuals in a multi-day creative process to
identify several alternative ways to meet the customer's needs using different
product or process designs. 3P typically results in products that are less complex,
easier to manufacture (often referred to as "design for manufacturability"), and
easier to use and maintain.
3P can also design production processes that eliminate multiple process steps and
that utilize homemade, right-sized equipment that better meet production needs.
3P offers the potential to make "quantum leap" design improvements that can
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improve performance and eliminate waste to a level beyond that which can be
achieved through the continual improvement of existing processes.
Benefits: Eliminating waste in the planning phase of a production process has
long-term implications on profitability. Not only can production problems be
'designed out' prior to production, but quality and efficiency can be 'designed in'.
3 phases of
improveme
nt

Improvement projects or programs generally go through 3 distinct phases:

STANDARDIZATION: During this phase, processes are defined (and redefined), procedures written (re-written), and new layouts are considered to
maximize the use of assigned resources.
MECHANIZATION: During this phase, equipment purchases and
replacements are considered, and various fixtures may be designed/built to
support the production process.
AUTOMATION: During this phase, process & information collection
equipment is purchased to perform tasks more efficiently than humans.
As a prescription for continuous improvement, the '3 phases' are a basic guide to
get the most out of improvements at minimum cost. For example, before
MECHANIZATION or AUTOMATION is considered, it is important to ensure that
processes are well-defined, procedures clearly drive results, and that workspaces
are properly designed (i.e., STANDARDIZATION). Early adoption of mechanized or
automated systems can have the effect of 'designing in' certain types of waste,
which may make it difficult or expensive to remove.
Each of the '3 phases' should be iterated several times before moving to a
subsequent phase, and should constantly be revisited as part of a comprehensive
continuous improvement plan.

4M

Material, Machine, Man, Method - The 4 basic components of a task, 4M is one

perspective on improving production processes.

5S

A program of 'industrial housekeeping', the 5S's are 5 Japanese words which help
to guide organizations to increased levels of cleanliness, organization, &
efficiency. The Japanese words are translated into various English counterparts:
Japane
se
term

Description

English
translatio
ns

Eliminate all items not immediately

required in the work area

Sort, sift,
separate

Efficient placement & arrangement of

equipment and materials

Set, Set in
order, Set
in place

Maintain a clean & tidy workplace

Sanitize,
Sweep

seikets
u

Develop & maintain standards for

housekeeping

Standardiz
e

shitsuk
e

Establish the discipline & leadership for

area maintenance and improvement

Sustain

seiri
seiton

seiso

Benefits: A clean & organized work area is naturally a more efficient work area.
Areas that are well maintained show the pride and dedication of those who work
in the area. Excess suppliers & equipment that is identified may be of use in other
areas of the company. Eliminating 'storage' within the work area frees valuable
real estate. Eliminating excess supplies & tooling, along with visual standards for
storage and cleaning reduces the amount of time spent searching for out of place
items.
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5 Whys

Asking 'why' 5 times (an arbitrary number) is often useful in determining the root
cause of a specific problem. For example, if we ask 'why1' we spend so much time
cleaning a particular machine, we find that there is always dirt stuck to the side of
it. If we ask 'why2'the dirt is sticking to the machine, we find that there is oil on
the machine. If we ask 'why3' there is oil on the machine, we find that there is an
oil leak. If we ask 'why4' there is an oil leak, we find that a gasket is leaking. If we
ask 'why5' a gasket is leaking, we find that the bolts were improperly tightened.
So if we properly tighten the bolts (root cause), we can save labor (cleaning the
machine). We may also find that other problems were related to improper
tightening.
NOTE: There is nothing 'magic' about the number 5. Continue to ask 'why' until
you find a sufficiently broad, and sufficiently simple, root cause of a problem. If it
appears that 'people' or 'training' is the root cause, it is likely the wrong 'why'
questions are being asked.
Reference: Zero Quality Control, poka-yoke
Benefits: Root causes often affect more problems than the one being researched.
By asking 'why' 5 times, often simpler root causes are identified. Simpler root
causes can be addressed more quickly, often at less cost.

6 sigma

See Six Sigma.

7 habits

Dr. Stephen R. Covey (in his book, 7 Habits of Highly Effective People, 1989) put
forth a list of 'habits':
Habit 1 - Be Proactive: Principles of Personal Vision
Habit 2 - Begin with the End in Mind: Principles of Personal Leadership
Habit 3 - Put First Things First: Principles of Personal Management
Habit 4 - Think Win/Win: Principles of Interpersonal Leadership
Habit 5 - Seek First to Understand, Then to be Understood
Habit 6 - Synergize Principles of Creative Communication
Habit 7 - Sharpen the Saw: Principles of Balanced Self-Renewal
Habit 8 - Find Your Voice, and Inspire Others to Find Theirs
The '8th habit' is from Covey's book, The 8th Habit (2004).
Reference: http://www.stephencovey.com/

7 wastes

Taiichi Ohno, in Toyota Production System: Beyond Large Scale Production (1988,
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Productivity Press) defined 7 categories of muda, or waste:

Over-production - Producing more units than customers are demanding
(or producing them earlier than the customer orders them).
Waiting - People waiting for machines or processes; Product waiting for
people, machines, or processes.
Transportation - Moving product from one place to another.
Inventory - Raw materials, work-in-process (WIP), and finished goods in
excess of direct customer requirements.
Motion - Any movement my people or machines that does not actually
transform product from one state to another.
Over-processing - Performing operations that are unnecessary.
Defects - Creating or passing along products which contain errors in
material or processing.
Reference: 3 forms of waste, muda, mura, muri, waste
Benefits: Understanding the nature of waste is the first step in being able to
recognize it, and thereby work to eliminate it. All of 'lean' is centered around the
identification & elimination of waste, in all it's various forms.

8D

The 'Eight Disciplines' Problem Solving Process. 8D is a methodology to not only

solve problems, but to ensure that those problems do not recur. The 8 disciplines
are:
1. Use Team Approach: Establish a small group of people with the
knowledge, time, authority and skill to solve the problem and implement
corrective actions. The group must select a team leader.
2. Describe the Problem: Describe the problem in measurable terms.
Specify the internal or external customer problem by describing it in specific
terms.
3. Implement and Verify Short-Term Corrective Actions: efine and
implement those intermediate actions that will protect the customer from
the problem until permanent corrective action is implemented. Verify with
data the effectiveness of these actions.
4. Define end Verify Root Causes: Identify all potential causes which could
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5.

6.

7.
8.
14 points

explain why the problem occurred. Test each potential cause against the
problem description and data. Identify alternative corrective actions to
eliminate root cause.
Verify Corrective Actions: Confirm that the selected corrective actions
will resolve the problem for the customer and will not cause undesirable
side effects. Define other actions, if necessary, based on potential severity
of problem.
Implement Permanent Corrective Actions: Define and implement the
permanent corrective actions needed. Choose on-going controls to insure
the root cause is eliminated. Once in production, monitor the long-term
effects and implement additional controls as necessary.
Prevent Recurrence: Modify specifications, update training, review work
flow, improve practices and procedures to prevent recurrence of this and all
similar problems.
Congratulate Your Team: Recognize the collective efforts of your team.
Publicize your achievement. Share your knowledge and learning.

W. Edwards Deming, in Chapter 2 of Out of the Crisis (MIT Press, 2000), outlines
14 points as the basis for transformation of American industry:
1. Create constancy of purpose toward improvement of product and service,
with the aim to become competitive and to stay in business, and to provide
jobs.
2. Adopt the new philosophy. We are in a new economic age. Western
management must awaken to the challenge, must learn their
responsibilities, and take on leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate the need for
inspection on a mass basis by building quality into the product in the first
place.
4. End the practice of awarding business on the basis of price tag. Instead,
minimize total cost. Move toward a single supplier for any one item, on a
long-term relationship of loyalty and trust.
5. Improve constantly and forever the system of production and service, to
improve quality and productivity, and thus constantly decrease costs.
6. Institute training on the job.
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7. Institute leadership. The aim of supervision should be to help people and

machines and gadgets to do a better job. Supervision of management is in
need of overhaul, as well as supervision of production workers.
8. Drive out fear, so that everyone may work effectively for the company.
9. Break down barriers between departments. People in research, design,
sales, and production must work as a team, to foresee problems of
production and in use that may be encountered with the product or service.
10.
Eliminate slogans, exhortations, and targets for the work force asking
for zero defects and new levels of productivity. Such exhortations only
create adversarial relationships, as the bulk of the causes of low quality and
low productivity belong to the system and thus lie beyond the power of the
work force.
o Eliminate work standards (quotas) on the factory floor. Substitute
leadership.
o Eliminate management by objective. Eliminate management by
numbers, numerical goals. Substitute leadership.
11.
Remove barriers that rob the hourly worker of his right to pride of
workmanship. The responsibility of supervisors must be changed from sheer
numbers to quality.
12.
Remove barriers that rob people in management and in engineering
of their right to pride of workmanship. This means, inter alia, abolishment of
the annual or merit rating and of management by objective.
13.
Institute a vigorous program of education and self-improvement.
14.
Put everybody in the company to work to accomplish the
transformation. The transformation is everybody's job.
Reference: W. Edwards Deming, The W. Edwards Deming Institute
agile
manufactur
ing

The ability to accomplish rapid changeovers for a wide variety of production

models, in a rapidly changing business environment. Proponents of 'agile
manufacturing' content that emerging markets are characterized by significantly
shorter product life cycles. Meeting the demands of those markets requires
shorter product development cycles (rapid prototyping) and rapid development of
tooling.

AIW

Accelerated Improvement Workshop - See 'improvement workshop'.

Reference: improvement workshop, jishuken, kaizen blitz, kaizen event, RI

andon

A Japanese term meaning 'lantern', it refers to a system of visual signals used to

indicate the status (at a glance) of a machine or work center. Color codes vary
with the application, but are traditionally:
Green - no problems
Yellow - situation requires attention, production flow at risk
Red - PRODUCTION STOPPAGE: IMMEDIATE ASSISTANCE REQUIRED
Contemporary use of the andon concept has been expanded to include many
useful devices, such as flags, audible signals (buzzers, alarms), and visual
display/production boards.
Reference: visual management
Benefits: Constant feedback on the status of our machinery & systems reduces
operation & maintenance costs (by catching problems before they become major
issues), and increases equipment availability (by keeping downtime issues more
visible).

autonomati
on

A translation of the Japanese term 'jidoka', it refers to implementing hightechnology sensing equipment in machinery, as a means of preventing defects
from occuring (preferred), or detecting them once they occur. Once a defect
condition or defect is detected, the operator is alerted, and the condition can be
corrected before further parts are produced. Properly executed, this technique can
free the worker to operate multiple pieces of equipment. (Also referred to as hightech 'poka-yoke'.) See jidoka.
Autonomation is used where poka-yoke devices are impractical, or when a
significantly higher level of technical knowledge about a machine or process is
required for mistake-proofing purposes.
Reference: Zero Quality Control
Benefits: 'Intelligent' machines require less interaction (and less labor) from
operators. Fewer mistakes will result in fewer defects. Fewer defects will result in
less material, labor (rework, handling), and space costs. Higher levels of quality
will result in better delivery, lower customer complaints & returns, and better
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market position.
baka-yoke

A Japanese term, it literally means 'fool-proofing'. However, the negative

connotation of the word 'baka' (meaning 'fool') led Shingo (the concepts creator)
to use the word 'poke', meaning mistake. See 'poka-yoke'.

batch

The size of a production lot. One method of 'leaning' out a process is to

continually reduce batch sizes. 'Batch & queue' refers to the process of collecting
parts in batches, imposing significant wait times on every part in the batch.
Reference: one-piece flow
Benefits: Smaller batches flow through production systems faster. They also
provide greater flexibility (since we don't have to wait for large batches to
complete before changing models), to provide better response to customers.
Additionally, smaller batches make it easier to control production and quality.

blitz

A German term meaning 'lightning'. In a lean context, it is a shortened form of

'kaizen blitz'. See 'improvement workshop'.
Reference: improvement workshop, kaizen blitz, kaizen event

Bodek,
Norman

Norman Bodek, as the founder of Productivity Press, was the first publisher for the
Japanese authors from Toyota (Ohno, Shingo, etc...). He was also the first to bring
these 'giants' of lean to the U.S., arranging study tours, lectures, seminars, and
more. Norman currently runs PCS Press, and has written many books on lean,
including All You Gotta Do Is Ask, Kaikaku, and The Idea Generator.
Reference: http://www.pcspress.com/

bottleneck

See 'constraint'.
Reference: Theory of Constraints

CANDO

Cleanup, Arranging, Neatness, Discipline and Ongoing Improvement - A precursor

to 5S, CANDO is an industrial housekeeping program developed by Henry Ford,
circa 1922.
Reference: 5S
Benefits: A clean & organized work area is naturally a more efficient work area.
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Areas that are well maintained show the pride and dedication of those who work
in the area. Excess suppliers & equipment that is identified may be of use in other
areas of the company. Eliminating 'storage' within the work area frees valuable
real estate. Eliminating excess supplies & tooling, along with visual standards for
storage and cleaning reduces the amount of time spent searching for out of place
items.
Cell

An independent business unit, complete with all the required resources to produce
a product or to provide a service. Most commonly referred to as 'production cells',
'manufacturing cells', or 'service cells'. Many configurations are common,
including 'U-shaped' cells, linear cells, and 'hybrid' cells (which incorporate more
expensive, shared resources). 'Cellular manufacturing' refers to the concept of
designing cells for continuous flow.
Reference: continuous flow
Benefits: Properly designed production cells can act as autonomous business
units, performing not only value-added activities, but many traditional support
activities as well. Cell teams are the basis for all continuous improvement
activities.

chakuchaku

A Japanese term meaning 'load-load', it refers to single-motion loading of

machines, simultaneously with unloading.
Reference: nagara
Benefits: Minimizing motion (one of the 7 classic wastes) reduces costs, and
allows operators to be more flexible to the demands of daily production
requirements.

CI

See 'continuous improvement'.

CLOSED
MITT

An acronym to expand on the 7 classic wastes:

Complexity - Design complexity out of work systems, products, and processes.
Labor - Continually reduce the amount of labor required to perform tasks.
Overproduction - Do not produce more than the customer demands.
Space - Continually reduce the amount of space required.
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Energy - Look for ways to reduce power requirements.

Defects - Increase the quality of processes.
Materials - Reduce waste due to offcut, spoilage.
Idle Materials - Keep materials moving through the system.
Time - Increase throughput.
Transportation - Reduce the travel distance of materials from dock to dock.
Reference: 3 forms of waste, 7 wastes, muda, mura, muri, waste,
Benefits: Understanding the nature of waste is the first step in being able to
recognize it, and thereby work to eliminate it. All of 'lean' is centered around the
identification & elimination of waste, in all it's various forms.
constraint

Reference: Theory of Constraints

Benefits:

continuous
flow

Smooth flow of products from 'dock to dock' (and all work centers in between).
One of the core concepts of Lean Manufacturing (along with eliminating waste &
implementingpull), establishing continuous flow forces work cells to continually
evaluate inventories, batch sizes, and work methods & distribution, to better
meet takt time & customer demand.
Reference: pull, takt, waste
Benefits: Deliberate, smooth flow balances resources with current requirements,
which optimizes use of those resources.

continuous
improveme
nt

Constant, positive change, in very small increments. In small enough increments,

change is barely perceptible, but still adds up over time.
The theory of the 'learning curve' states that the time it takes to perform any
activity is a random variable. If we plot this variable over time (and the number of
units produced), there is a tendency toward shorter & shorter activity times. This
is due to minor, imperceptible changes we all make during repetitive activities
(known as 'learning').
Production systems also show this kind of 'learning', within parameters
(limitations) contained in 'job travelers', 'work instructions', or 'standard work'.
Production system tasks tend to 'level off' around pre-determined, standard times.
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Beyond these levels, improvement isn't possible without redesiging the work
method.
Reference: kaikaku, kaizen, standard work
Benefits: Continuous improvement (CI) costs less, and has more immediate
impact, than more 'stepped' improvement models (especially when CI is practiced
by everyone in an organization).
cost

Reference:
Benefits:

'cost minus' Reference:

principle
Benefits:

culture

Reference:
Benefits:

customer

The end-user which pays for the completed product or service.

Often, the distinction between internal customers (downstream
processes), external customers(OEM's, which sell directly to end-users or
distributors), and end-users (paying customers) is blurred. This can affect the
definition of value, which in turn affects the identification of waste.
Reference: external customer, internal customer, value, waste
Benefits: Understanding who pays for goods or services is the first step in
determining value for that customer.

cycle time

Reference: operation, process, tact, takt, yamazumi

Deming
cycle

See 'PDCA'.

Deming, W.
Edwards

Dr. W. Edwards Deming has contributed a wealth of knowledge in the field of

statistical research and application, beginning in the period of the rebuilding of
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(1900-1993)

Japan after WWII.

Among his many accomplishments is the funding of the Deming Prize (established
by the Union of Japanese Scientists and Engineers and named in his honor), to
promote the continued development of quality control in Japan.

Reference: The W. Edwards Deming Institute, 14 points, PDCA/Deming cycle

DFM

Design for Manufacturability Reference: 3P

Benefits:

DFSS

Design For Six Sigma Reference:

Benefits:

DMAIC

The standard methodology used in Six Sigma projects:

Define
Measure
Analyze
Improve
Control
Reference: Six Sigma

EPE (or EPEI) Every Part Every (or Every Part Every Interval) - In 'mixed-model' production, the
interval of time used to level production.
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In a mass production environment, large batches are run to 'amortize' the cost
of setups to each production unit. This minimizes the importance of setup time on
the production flow. In a lean environment, production is leveled according to
customer demand, requiring the constant reduction in setup times.
Mass production example: A plant makes 3 products - A, B, and C. The plant
makes 100 of A, then 100 of B, then 100 of C, each taking about a day (single
shift operation). EPE = 3 days. We will require one setup per day. Even though
demand isn't equal for the 3 products, we produce them this way because their
setup times are roughly equivalent, as are their production times. The result is
that we'll build some inventory, but our standard unit costs will look good.
Lean production example: Based on demand, we know we sell 50 A's, 25 B's, and
25 C's each day. We set our 'leveled' production at A:A:B:C. EPE = 19.2
minutes. We will require 9 setupsper hour. (480 minutes in an 8 hour shift, 100
items can be produced, 4.8 minutes per item, times 4 items in each interval).
While the above example excludes the actual affect of setup times, it is relatively
easy to see that in the 'lean' example, many more setup will be required. This
emphasizes the need to reducesetup times, not only to reduce setup costs, but to
increase the available production time within the shift.
Reference: mixed-model production, setup time

ERP

Enterprise Resource Planning - See Material Requirements Planning.

Reference: MRP/MRPII

errorproofing

See 'poka-yoke'

external
customer

An entity which actually pays for the product or service being provided.
Reference: customer
Benefits: The ability to distinguish 'internal' from 'external' customers is critical
to understand how various types of waste are imposed on systems. Since internal
customers don't pay for goods or services, anything they request in addition to
value-added tasks is waste.

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external
setup

Those setup tasks that can be accomplished before a machine or operation is

taken down for changeover (or after the operation is restarted). (EXAMPLES Transporting dies or raw materials, gathering tools and equipment, filling out
paperwork, inspections, etc...)
Reference: internal setup, setup time, SMED/Changeover Reduction
Benefits: Separating external tasks can reduce setup times significantly,
increasing both efficiencies and responsiveness.

FIFO

First In, First Out. Refers to using the oldest inventory (loaded 'first') before newer
inventory. FIFO racks or FIFO lanes are usually loaded from the back, and
accessed/emptied/used from the front.
Reference: LIFO
Benefits: For inventory which ages, FIFO systems assist in managing inventory to
minimize spoilage/expiration. In production areas, FIFO reduces the need to
access inventory from the 'production side', reducing the required size of the
production area (since inventory can generally be loaded from the rear or aisleside areas).

fishbone
diagram

A tool for determining the 'root cause' of a problem (also known as an Ishakawa
diagram).
Reference: Zero Quality Control
Benefits:

flexible
manufactur
ing

See 'agile manufacturing'

flow cell

Reference:
Benefits:

FMS

Flexible Manufacturing Systems - See 'agile manufacturing'.

Ford,
Henry

Henry Ford figures prominenetly in the history of lean manufacturing. Mass

production is the historic link between 'craft' production and 'lean' production. It
15

(1863-1947)

has been said that when Western managers within Toyota struggled with the
concepts of TPS and lean, they were given a copy of Ford's Today and
Tommorrow as a study guide.
Craft production is characterized by highly skilled workers and simple but
flexible tools to make exactly what the consumer asks for, one item at a time. The
result is that consumers get exactly what they want but at a relatively high
cost. Mass production is characterized by narrowly skilled professionals to
design products made by unskilled or semiskilled workers tending large, singlepurpose machines. The machines produce standardized products in very high
volume.
In contrast, lean production is characterized by multiskilled workers at all levels
of the organization, and uses highly flexible, increasingly automated machines to
produce large volumes of products in enormous variety.

gemba

A Japanese term, it refers to the 'actual place', or 'shop floor'. (GENBA means
'actual spot' or 'scene'.)
Reference: 3G
Benefits: Effective solutions cannot be made in an office, meeting room, or
classroom. The only way to truly know is to 'go to GEMBA'.

Goldratt,
Eliyahu M.

Dr. Eliyahu Goldratt is an educator, author, scientist, philosopher, and business

leader. But he is, first and foremost, a thinker who provokes others to think. Often
characterized as unconventional, stimulating, and "a slayer of sacred cows," Dr.
Goldratt exhorts his audience to examine and reassess their business practices
with a fresh, new vision.
Dr. Goldratt is the author of "THE GOAL" (and many other TOC books), an
underground best seller that utilizes a non-traditional approach to convey
important business information--it is a business textbook written in novel form,
disguised as a love story. The ideas illustrated in "THE GOAL" underscore Dr.
Goldratt's Theory of Constraints, an overall framework for helping businesses
determine:
What to change - what is the leverage point
What to change to - what are the simple, practical solutions
How to cause the change - overcoming the inherent resistance to
16

change.
Reference: Theory of Constraints

hoshin
kanri

Japanese terms, hosin means 'vision' or 'goal', and kanri means 'map' or
'plan'. Hosin Kanri refers to the process of mapping an organizational vision
(see hoshin planning).
Reference: hoshin planning
Benefits: Achieving a plan must be predecated by not only having a plan, but
sharing it and obtaining support. Hoshin Kanri allows these plans or visions to be
supported by the organization as a whole, and allows everyone to understand
their impact on these visions.

hoshin
planning

A Japanese term, hosin refers to a vision, goal, or direction. Hosin planning is the
development of actions to support the vision or goal. Also known as Policy
Deployment. Usually an annual process, hosin planning sets the stage for the
development of local action plans that support the goals of the organization.
Benefits: Linking local action plans to the overall goals of the organization
provides a means for everyone to become involved in realizing the organizational
vision. Managing this process year to year ensures that the organization continues
to grow and evolve with its customers.

house of
lean

Early practitioners of TPS developed a simple model to serve as an

implementation guide. The model shows the simplicity of a lean system, working
toward the goals of 'highest quality, lowest cost, and shortest lead time', based on
a foundation of 'stability'.

17

Benefits: A simple graphic model can help people understand our goal and
methods, making it easier for them to contribute in the journey.
IED

Inside Exchange of Die. See 'internal setup'.

Reference: SMED
Benefits:

improveme
nt
workshop

Known by many names, an 'improvement workshop' is:

1. A technique to re-establish continuous improvement in an area when
improvements appear to have 'stalled'.
2. A technique used to focus improvement in a specific area (over a short time
period).
Improvement workshops are generally planned over a 6 to 10 week period (to
identify objectives, coordinate resources), and are implemented over a period of 5
days. This implementation generally includes training of key personnel in a target
area, actual measurement of of waste/flow, implementation of new work
procedures & layouts, and reporting of results to senior management. Success of
a workshop can be validated over time by monitoring & auditing as part of normal
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project follow-up.
Historically, improvement workshops have been projects developed by
autonomous supplier study groups (jishuken), in order to solve problems in the
supply chain. Contemporary (U.S.) improvement workshops are almost exclusively
used to change factory layouts & work procedures, but workshops focusing on
more 'systems' issues are coming into practice.
Reference: AIW, jishu kanri, jishuken, kaizen blitz, kaizen event, RIW
Benefits: Improvement workshops can bring focus on continuous improvement,
as well as a better understanding of specific continuous improvement techniques.
Proper follow-up ensures that projected gains are realized and maintained.

industrial
housekeepi
ng

The concept of keeping an organized work environment, and continually

maintaining work areas/work spaces free from debris & unnecessary items, and
ready for work at all times.
Reference: 5S, CANDO
Benefits: Much time is lost (in factories, offices) looking for tools & equipment,
and generally preparing the workspace to perform tasks. A clean & organized
work area is naturally a more efficient work area. Areas that are well maintained
show the pride and dedication of those who work in the area. Excess suppliers &
equipment that is identified may be of use in other areas of the company.
Eliminating 'storage' within the work area frees valuable real estate. Eliminating
excess supplies & tooling, along with visual standards for storage and cleaning
reduces the amount of time spent searching for out of place items.

in-process
metrics

Metrics that describe the system state (performance), at any moment in time.
Reference: lagging metrics, leading metrics
Contributed by: Robert Tristani

internal
customer

A downstream process, or an individual requesting work (tasks, information) in

addition to value-added tasks.
Reference: customer, external customer, value-added, waste
19

Benefits: The ability to distinguish 'internal' from 'external' customers is critical

to understand how various types of waste are imposed on systems. Since internal
customers don't pay for goods or services, anything they request in addition to
value-added tasks is waste.
internal
setup

Those setup tasks which must be performed while a machine or operation is

between production runs. (EXAMPLES - Unloading and loading dies, manual
adjustments, running the first production piece, etc...)
Reference: external setup, setup time, SMED/Changeover Reduction
Benefits: Separating internal tasks from external tasks can reduce setup times
significantly, increasing both efficiencies and responsiveness.

Ishakawa
diagram

See 'fishbone diagram'.

jidoka

A Japanese term, it refers to implementing high-technology sensing equipment in

machinery, as a means of preventing defects from occuring (preferred), or
detecting them once they occur. Once a defect condition or defect is detected, the
operator is alerted, and the condition can be corrected before further parts are
produced. Properly executed, this technique can free the worker to operate
multiple pieces of equipment. (Also referred to as high-tech 'poka-yoke', and
'intelligent' machines.) See autonomation.
Reference: Zero Quality Control
Benefits: 'Intelligent' machines require less interaction (and less labor) from
operators. Fewer mistakes will result in fewer defects. Fewer defects will result in
less material, labor (rework, handling), and space costs. Higher levels of quality
will result in better delivery, lower customer complaints & returns, and better
market position.

jishu kanri

A Japanese term, it refers to 'voluntary management' groups. Generally, these are

groups of ten or so workers, which meet regularly to study & solve problems
related to their work areas. Analogous to supplier jishuken groups, the activities of
these voluntary management groups are often used as areas for
future improvement workshops.
Reference: improvement workshop, jishuken
20

Benefits: People working in specific areas are much closer to problems in those
areas. They will often have solutions to these problems, usually at a lower
technical level and cost than solutions developed by outside entities. If these
workers are involved in developing and implementing these solutions, they are
much more likely to support the new solutions, to ensure they are successful.
jishuken

A Japanese term, it means 'autonomy'. In a lean context, it refers to 'autonomous

study groups', which are vehicles for exploring various types of waste and how
they affect production systems.
Traditional 'jishuken' groups are teams made up of various continuous
improvement people from a companies supply base. Meeting at various locations
throughout the course of a year, the group works on projects to reduce waste &
improve flow. Jishuken groups is where the concept ofimprovement
workshops originated, a technique used to plan & implement specific system
improvements.
Reference: improvement workshop, jishu kanri
Benefits: Members of supplier groups bring a wide variety of skills, along with
different perspectives, on problems which affect large portions of the value
stream.

JIT

Just-In-Time

kaikaku

A Japanese term, it means reformation or innovation. In a lean context, kaikaku

means rapid change or re-engineering (as opposed to 'kaizen').
Kaikaku is generally implemented through managers & engineers, due to the
resources required for these type of improvement projects. Examples of kaikaku
projects include new system/equipment purchases, revising area layouts, and
procedural changes implemented withinimprovement workshops.
Reference: improvement workshop, kaizen
Benefits: Large-scale improvements are generally not implemented by workers
on the shop floor, as they don't have access to required resources. Improvements
such as major layout revisions or system/equipment purchases may make it
possible for higher levels of improvement for the future.

kaizen

A Japanese term, it means 'continuous, incremental improvement'.

21

In a lean context, kaizen means everyone applying small (low impact & low cost)
improvements each and every day. Applied in this manner, kaizen can have the
same affect as large, costly, infrequent changes (kaikaku). This philosophy can be
demonstrated with the Theory of the Learning Curve (see example).
The term 'kaizens', is often misused as a reference to 'improvement workshops'
(e.g., 'kaizen blitz' or 'kaizen event').
Reference: kaikaku
Benefits: By involving everyone in continuous improvement (as opposed to only
Industrial Engineers, Manufacturing Engineers, managers, or other improvement
professionals), the results of the 'learning curve' can truly be achieved. Lower
costs, faster throughput, and higher quality will result. Additionally, when people
are actually involved in change, they are more accepting of it, especially when it
comes in smaller increments.
kaizen blitz

'Kaizen' is the Japanese word for 'incremental, continuous improvement', and

'blitz' is the German word for 'lightning'. Used together, they generally refer
to 'improvement workshops'.
Reference: AIW, improvement workshop, kaizen event, RIW

kaizen
event

'Kaizen' is the Japanese word for 'incremental, continuous improvement'. 'Event'

refers to a week-long, focused improvement exercise. See 'improvement
workshop'.
Reference: AIW, improvement workshop, kaizen blitz, RI

kanban

A Japanese term, it refers to pull strategy of production scheduling

Reference:

lagging
indicators (
or metrics)

Metrics that describe performance at some point, or over some duration, in the
past. These metrics are often calculated at the end of a day, or a week, to show
shop performance over the course of that day, or that week.
Reference: in-process metrics, leading indicators
22

Benefits: The benefits of using lagging metrics is that they can be made very
accurate, and several metrics can be overlaid on the same graph to show
interactions.
Contributed by: Robert Tristani
leading
indicators (
or metrics)

Metrics that predict future performance. Leading metrics can be applied to jobs
that are currently in WIP to predict performance at the time those jobs are
shipped out. Leading metrics can also be applied to jobs that are not yet in WIP to
predict what shop performance will be when those jobs arrive, or when those jobs
are shipped out in turn.
Reference: in-process metrics, lagging indicators
Benefits: The benefits of using leading metrics are that adjustments can be
made to shop floor conditions (manning, material, tools, etc.) before a problem
arises. The downside of using leading metrics is that they are never guaranteed to
be 100% accurate.
Contributed by: Robert Tristani

lean

The establishment and enhancement of system flow, principally through the

identification and elimination of waste and the continual reduction of required
resources.
This definition is deceptively simple, which is proven every day by companies
which misinterpret and mis-apply lean tools and techniques, in a vain attempt to
'save' their way to greater profitability. For example, many organizations 'cherry
pick' and implement specific lean tools, without understanding the effects of
culture or the true nature of system problems.
Reference: 33 lean tools
Benefits: Organizations which adopt lean principles are more responsive to their
markets, and become significantly more competitive and profitable.

milk run

A programmed route for inventory replenishment. A milk run may be performed

within a production cell (by a water spider), or by vendors (see vendor managed
inventory). The frequency of a milk run should be based on material
replenishment times.
23

Reference: vendor managed inventory, water spider

mistakeproofing

Simple devices (called 'poke-yokes'), implemented so that defects of a particular

type CANNOT be produced. Poke-yokes are generally low-tech in nature (often
characterized as 'duct tape & cardboard'), and should be implemented at the
operator level (contrast with autonomation/jidoka). However, design poke-yokes
are particularly clever, preventing positioning and insertion errors. See poke-yoke.
Reference: Zero Quality Control
Benefits: Fewer mistakes will result in fewer defects. Fewer defects will result in
less material, labor (rework, handling), and space costs. Higher levels of quality
will result in better delivery, lower customer complaints & returns, and better
market position.

mizusumas
hi

A Japanese term, referring to a production support position. See 'water spider'.

MRP

Material Requirements Planning - Developed initially in the 1970's, MRP is a

method to determine material purchase requirements (when, how much) based
on lead times and quantity discounts.
MRPII (Manufacturing Resource Planning) evolved from MRP, by combining
'capacity planning' models with MRP models. These 'capacity planning' models
use quality & lead time data to plan order releases to the shop floor.
ERP (Enterprise Resource Planning) has extended MRPII to all business functions,
and also encompasses supply chain management principles.
It is often said that MRP/MRPII/ERP are 'push' systems, and are therefore
incompatible with lean production principles. The truth is that MRP/MRPII/ERP
systems are wonderful 'information' systems, and can be quite compatible with
lean systems, as long as they aren't used to drive production through 'push'
methods.
Reference: pull, push

MTO

Make To Order -

MTS

Make To Stock

24

muda

A Japanese term, it refers to non-value-added tasks, one of the 3 forms waste.

Muda can be further broken down into 2 types:
Type I muda: Non-value-added tasks which are essential (see NVAE) under
current conditions. Changing these business conditions is required to eliminate
this type of waste.
Type II muda: Non-value-added tasks which can be eliminated immediately.
Reference: 3 forms of waste, 7 wastes, mura, muri, NVA, NVAE, waste
Benefits: Understanding the nature of waste is the first step in being able to
recognize it, and thereby work to eliminate it. All of 'lean' is centered around the
identification & elimination of waste, in all it's various forms.
TYPE I MUDA - NVA tasks which are essential under current conditions:

Unless a process creates a perfect product every time (perfect materials, machinery, tools,
process, procecdures, training, personnel, packaging, delivery), there is likely some form
of inspectioninvolved (usually many of them). These inspections are only necessary to
control the output of specific portions of the process. Because these inspections add no value
to the product (and therefore, to the customer), they are NVA. Until the portions of the
process being inspected are perfected, the inspections cannot be eliminated, making them
Type I muda.
Conversely, even if the inspection is 'mandated' by the customer, it is still Type I muda. We
may be inclined to think that since the customer requires the inspection, they 'want' to pay
for it. But it is still NVA (waste), and we should work with the customer to increase their level
of confidence in the process so that they no longer require the inspection.

Have you ever experience a long wait in the security line at an airport? As a customer of
both the airport and an airline, we certainly value 'security', but certainly not the 'wait'
involved. So the 'wait' is NVA, but required under current conditions. Better technology or a
significant reduction in 'threat condition' would most certainly reduce (or eliminate) the need
for this Type I muda.

Human Resources functions, such as payroll, have no direct value to the customer. However,
if we don't pay our people, they don't show up for work, and we don't get products out the
door. Because the customer doesn't value this task, it is defined as NVA. Since it is
essential under current conditions, it is Type I muda.
NOTE: If we decide to outsource this function, we eliminate the task completely, if not the
cost. However, outsourcing of this type can lead to better cost control as well, by allowing
vendors which specialize in this activity to compete for your business in the open
marketplace.

25

TYPE II MUDA: NVA tasks which can be eliminated immediately:

Measure the path that products travel through a production facility. Many times we find that
they travel miles before reaching the shipping dock. Much of this transportation is NVA,
and simply a function of how things have always been routed. By analyzing the travel paths,
we often find that the elimination of up to and exceeding 50% of this travel is possible, with
very little effort. Since we can immediately eliminate a great deal of this waste, it is Type II
muda.

Known defects are many times knowingly passes from work center to work center. If these
defects will result in a rejected part at the end of the line, every minute of work (and ounce
of material) put into these parts is wasted. By refusing to pass along these defects, we
immediately elimintate this Type II muda.

Work center layout contributes a great deal ofmotion required to manufacture or assemble
our products. If our tools and supplies are stored away from the area which they are used in,
excessive motion to retrieve and return them will result. By bringing required tools &
supplies closer to the workstation, this Type II muda is immediately eliminated.

mura

A Japanese term, it refers to performing tasks inconsistently.

Reference: 3 forms of waste, 7 wastes, muda, muri, standard work, waste
Benefits: Tasks which are performed inconsistently are very difficult to improve.
In fact, it is difficult to actually prove that any change has happened at all. From a
statistical standpoint, it is recommended to reduce process variation first, and
then eliminate 'muda' and 'muri' forms of waste. By working in this manner,
improvements will be much more visible and tangible, inspiring more support and
participation in continuous improvement efforts.

muri

A Japanese term, it refers to excessive stress & strain required to perform a task.
Tasks should be designed so that anyone can perform them, regardless of their
size, strength, or dexterity.
Reference: 3 forms of waste, 7 wastes, muda, mura, waste
Benefits: Designing tasks for a wider range of workers adds significant flexibility
in not only scheduling production, but in staffing specific areas, lines, and work
cells. It also allows for moving workers from job to job, increasing their process
knowledge and value to the entire organization. Huge benefits can also be seen in
safety (lower injury rates, fewer stress related injuries), in processing times, and
in product defect rates.
26

nagara

A Japanese term, it literally means 'while doing something else'. From a lean
perspective, it means performing simultaneous operations, or performing two or
more activities in a single motion. Ideally, nagara is characterized by a smooth,
syncronized flow of production, one piece at a time.
Reference: Line balancing, chaku-chaku
Benefits: Minimizing motion (one of the 7 classic wastes) reduces costs, and
allows operators to be more flexible to the demands of daily production
requirements.

NVA

Non-Value Added - Those tasks the customer isn't willing to (or does not want to)
pay for.
Reference: customer, value, value-added, NVAE, Type II muda, waste
Benefits: Understanding the true meaning of value is the first step to being able
to objectively identify waste.

NVAE

Non-Value Added, but Essential - NVA tasks that must be performed because:
Current processes or systems require the tasks to be performed
Processes or systems require re-design before the tasks can be eliminated
There is a specific regulatory requirement
There is a specific customer requirement (such as a required inspection)
Reference: customer, value, value-added, NVA, Type I muda, waste
Benefits: Understanding the true meaning of value is the first step to being able
to objectively identify waste.

OED

Outside Exchange of Die. See 'external setup'.

Reference: SMED

OEE

Operational Equipment Effectiveness -

OEM

Original Equipment Manufacturer - Usually an integrator or assembly company,

which sells either directly to the public/end-user or through a distributor.

Ohno,
Taiichi
(1912-1990)

As a Production Engineer and Assembly Manager for Toyota (in the 1940's &
1950's), Ohno collaborated with Shigeo Shingo on an integrated strategy for
manufacturing which would eventually become the Toyota Production System.
27

Ohno became an Executive Vice President at Toyota in 1975, and evnetually

became the President of Toyota Gosei (a Toyota subsidiary). In developing the
Toyota Production System, Ohno often credited both Henry Ford and American
supermarkets, for his accomplishments withproduction flow and Just-InTime techniques, respectively.
Reference: Toyota Production System: Beyond Large Scale Production
operation

A set of steps performed at a particular workstation or machine. In most standard

Industrial Engineering literature, the terms 'process' and 'operation' are used
interchangeably. However, in a lean context, the distinction is an important one.
Lean seeks to improve the flow of the entireprocess, as opposed to 'maximizing'
the output of each operation.
Reference: process

OTED

One-touch Exchange of Die, a concept in the SMED system. SMED drives a system
to shorter & shorter setup times. By continually iterating waste out of the
changeover time, the setup will eventually be able to be completed in a single
motion, which both removes the previous die and installs the next one. Since this
isn't likely to be possible without a high level of automation, SMED may more
likely drive solutions toward simpler, dedicated presses/machines (requiring no
setup whatsoever).
Reference: SMED
Benefits: Shorter setups are less costly, and allow for ever decreasing batch
sizes & production runs. Smaller production runs flow more quickly through the
factory (better customer response), and are less likely to produce defects.

PDCA

Plan, Do, Check, Act. The Deming cycle for continuous improvement:
PLAN: Set targets/goals, plan how to get there
DO: Train, learn, implement solutions
CHECK: Check the effects of what youve done
ACT: Take action on what youve found
(then do it all over again!)

28

Reference: W. Edwards Deming

Benefits: Continuous improvement is an interative process. By continually
reviewing earlier solutions, new 'low-hanging fruit' can be identified, and low-cost,
longer-term solutions are possible.
PFEP

Plan For Every Part -

poka-yoke

A Japanese term, it refers to 'mistake proofing' devices (called 'poka-yokes'),

implemented so that defects of a particular type CANNOT be produced. Pokeyokes are generally low-tech in nature (often characterized as 'duct tape &
cardboard'), and should be implemented at the operator level (contrast
with autonomation/jidoka). However, 'design' poke-yokes (mistake-proofing
directly designed into parts or fixtures) are particularly clever, preventing
positioning and insertion errors. See mistake proofing.
Reference: Zero Quality Control
Benefits: Fewer mistakes results in fewer defects. Fewer defects results in less
material waste, labor (rework, handling), and space costs. Higher levels of quality
results in better delivery, lower customer complaints & returns, and better market
position.

29

PPM

Parts Per Million, an alternative to measuring high level percentages. (PPB = Parts
Per Billion, PPT = Parts per Triillion)
Reference: Six Sigma

process

A set of operations required to assemble, manufacture, or produce a product or

component. In most standard Industrial Engineering literature, the terms 'process'
and 'operation' are used interchangeably. However, in a lean context, the
distinction is an important one. Lean seeks to improve the flow of the entire
process, as opposed to 'maximizing' the output of each operation.
Reference: operation
[EXAMPLE] - - []

production
See '3P'
preparation
process
pull

Production or material movement based on demand.

In a 'pull' system (as opposed to traditional 'push' systems), production is
restricted to actual downstream requirements.
Reference: batch, kanban, push production
Benefits: Pull production keeps WIP inventory to a minimum, which not only
reduces space requirements, but labor requirements as well. Additionally, quality
issues are much easier to detect in pull systems, which can have a significant
effect on defect rates.

push

Production based on capacity (regardless of demand).

In a 'push' system, each work center produces to its capacity, regardless of
downstream requirements.
Reference: batch, kanban, pull production
Benefits: Push production both builds inventory and starves downstream work
centers, due to line imbalance. Even if lines are balanced, inventory, labor, &
maintenance problems will throw the system out of balance, with the same
results. Also, quality problems are difficult to find in large quantities of WIP,
magnifying the costs related to producing defects

30

QFD

Quality Function Deployment - A structured methodology and mathematical tool

used to identify and quantify customers' requirements and translate them into key
critical parameters.
Reference: Six Sigma
Benefits: In Six Sigma, QFD prioritizes actions, to improve the process/product to
better meet customer expectations.

QRM

Quick Response Manufacturing - A companywide strategy to cut lead times in all

phases of manufacturing and office operations.
Reference: Center for Quick Response Manufacturing, Quick Response
Manufacturing: A Companywide Approach to Reducing Lead Times (Suri, 1998)
Benefits: Reduction in lead times for product concept, design, and production.

seiketsu

A Japanese term, it translates as 'clean'. In the lean context of 5S, it refers to

developing & maintaining standards for housekeeping (i.e., STANDARDIZE).
Reference: 5S

seiri

A Japanese term, it translates as 'sorting or arranging'. In the lean context of 5S, it

refers to the task of identifying items required in the workspace, and identifying
those tasks not required (i.e., SORT).
Reference: 5S

seiso

A Japanese term, it translates as 'neat & clean'. In the lean context of 5S, it refers
to maintaining a clean & tidy workplace (i.e., SWEEP).
Reference: 5S

seiton

A Japanese term, it translates as 'orderliness'. In the lean context of 5S, it refers to

efficient placement & arrangement of equipment and materials in the workplace
(i.e., SET IN ORDER).
Reference: 5S

setup time

The time interval between the last part from an operation, until the first good part
is run, subesquent to a model or option changeover. (NOTE: The terms 'setup' and
'changeover' are synonymous.)
As part of a SMED/Changeover Reduction project, setup time is further divided
31

into 'internal' and 'external' components.

Reference: external setup, internal setup, SMED/Changeover Reduction
Shingo,
Shigeo
(1909-1990)

Dr. Shigeo Shingo was the architect of many of the tools of the Toyota Production
System (i.e., lean production). Shingo wrote many books on the various tools of
lean production, including groundbreaking work in SMED (Single Minute Exchange
of Die).
The Shingo Prize for Excellence in Manufacturing was established in 1988 by Utah
State University, to promote awareness of Lean manufacturing concepts and
recognize companies in the United States, Canada, and Mexico that achieve
world-class manufacturing status. Also in 1988, Utah State University awarded
Shingo an honorary Doctorate in Business, recognizing his contributions in the
areas of Lean and World-class Manufacturing.

Reference: SMED, Zero Quality Control, A Study of the Toyota Production

System, The SMED System, The Shingo Production Management System, NonStock Production, Key Strategies for Plant Improvement, Source Inspection & the
Poke-Yoke System, The Shingo Prize for Excellence in Manufacturing
shitsuke

A Japanese term, it translates as 'home discipline', 'training' or 'upbringing'. In the

lean context of5S, it refers to establishing the discipline & leadership for area
maintenance and improvement (i.e., SUSTAIN).
Reference: 5S

single
minute
exchange

See 'SMED'

32

of die
single-piece See 'one-piece flow'.
flow

Six Sigma

An improvement methodology, Six Sigma traces its roots to Motorola in the 1980's
("Six Sigma" is a registered trademark of Motorola - the term was coined by an
engineer named Bill Smith, who died in 1993).
In statistics, the Greek letter 'sigma' is used to define a measure of variability
(dispersion), one 'standard deviation' from a process 'mean'. If a process is 'six
sigma' capable, it means that the process should have 3.4PPM outside the
specified engineering limits. This chart compares standard deviation, PPM, and
process capability (upper tail probablilities):
PPM
Included
PPM
Cp
(Shifted* Cpk
%
(Raw)
*)
158,65
1 sigma
84.1
--691,462 0.33
5
2 sigma
97.7
22,750 0.17
308,538 0.67
3 sigma
99.87
1350 0.50
66,807
1.00
4 sigma
99.9968
31.7
0.83
6210
1.33
4.5 sigma
99.99966
3.4
1.00
1350
1.50
5 sigma
99.999971
287PPB 1.17
233
1.67
99.99999990
6 sigma
1PPB
1.50
3.4
2.00
1
Cp is the 'capability index', which indicates the 'natural tolerance' of a process
compared to the engineering specification.
'Cpk' is a similar index, which assumes that normal 'process drift' will occur over
large production volumes.
**A six sigma 'rule of thumb' is that a process will drift 1.5 standard deviations
over the long run (this number was 'observed' at Motorola, and may vary
depending on the process being measured). This '1.5 sigma' shift is why 6 sigma
33

capability is reported at 3.4PPM, instead of 1PPB.

Reference: Design for Six Sigma, DMAIC, PPM, QFD
SMED

Single Minute Exchange of Die - Refers to a systematic reduction

in setup (machine or operation changeover) time, to the 'single minute' (less than
10 minute) range.
Shigeo Shingo asserted that any setup could be reduced to less than 10 minutes.
While this may be true, conventional wisdom is that an 'economical' setup
time should be on the order of 10-15% of the production run time, and that
production batch sizes should be continually reduced. The following steps are
used to reduce setup times:
Define the 'setup process' - A 'setup' is defined from the time the last
production piece is finished, until the first good piece is produced.
Identify the internal elements, the external elements, and any obvious
waste.
Separate the internal elements from the external elements.
Convert internal elements to external, wherever possible.
Streamline all aspects of the setup, reducing batch sizes as setups move
in to the '10-15% run time' range.
NOTE: An 'obvious' way to reduce setup times is through the liberal use of
automation. Automation, however, can codify and institutionalize various wastes,
all of which should be eliminated to the highest degree possible. Additionally,
automation usually comes at a relatively high cost, making it difficult to change or
remove. Before considering automation, a review of the '3 Phases of
Improvement' are recommended.
Reference: batch, external setup, internal setup, setup time, Shigeo Shingo
Benefits: Shorter setups are less costly, and allow for ever decreasing batch
sizes & production runs. Smaller production runs flow more quickly through the
factory (better customer response), and are less likely to produce defects

source
inspection

Reference: Zero Quality Control

Benefits:

tact

Early lean texts (Toyota Production System, Ohno/1978 - pg. 60, and A Study of
the Toyota Production System, Shingo/1981 - pg. 104) have confused the meaning
34

of the word 'tact', both by describing it as 'direct labor hours per piece', then
showing how to calculate it differently (similar to 'takt' time). The similarity
between the words 'tact' and 'takt', along with the differences in Ohno's and
Shingo's definitions, have contributed to the confusion between the terms 'cycle
time' and 'takt time' to this day.
The formula for tact (direct labor hours per piece, put forth by Shingo) is:
Total working time
Production quantity
where
'Total working time' = the amount of labor hours to produce a batch, and
'Production quantity' = the size of the batch.
The forumla put forth by Ohno (see below) has become the accepted formula for
takt time.
Shingo's formula differs from the formula for takt, even if the 'required production
quantity' is used. 'Total working time' is calculated in man-hours, while takt's
'available operating time', is how many hours the process runs per day.
Reference: cycle time, operation, process, takt
takt

A German term, it means rhythm. 'Takt' refers to the rate of customer demand,
usually in minutes or seconds. 'Takt time' is calculated as
Available operating time
Production requirement
where
'Available operating time' = the amount of time the production line actually
runs, and
'Production requirement' = the amount of a particular product actually
demanded by the customer.
Takt time is then the 'desired' cycle time of a process, as opposed to the
actual cycle time.
Reference: cycle time, operation, process, tact, yamazumi
Benefits: Understanding the rate at which customers demand specific products
allows us to better determine how that demand is met, and how many resources
are required to meet it.

35

TOC

Theory of Constraints - TOC is a philosophy of 'constraint' (or bottleneck)

management, developed by Dr. Eliyahu M. Goldratt. While TOC has developed into
a much larger set of problem solving tools (known as the 'Thinking Processes'),
from a lean perspective, it is sufficient to understand that processes are generally
constrained by their bottlenecks. By alleviated the bottlenecks, system flow is
enhanced, thereby supporting the objectives of lean implementation.
The TOC process for alleviating bottlenecks is:
Identify the Constraint - Measure the throughput of each workstation.
Exploit the Constraint - Ensure the constraint is working at full capacity,
& eliminate allwaste from the constraint.
Subordinate the Constraint - Provide support to the constraint.
Elevate the Constraint - Add resources to increase the capacity of the
constraint.
Identify the New Constraint - Once a constraint has been alleviated,
another will surface (either inside, or outside the process).
Reference: constraints, Eli Goldratt
Benefits: A lean system cannot provide more output than the bottleneck
operation. Increasing bottleneck capacity will significantly improve process
output.

TPM

Total Productive Maintenance Reference:

Benefits:
[EXAMPLE] - - []

TPS

Toyota Production System -

TQC

Total Quality Control

VA

Value Added - Those tasks the customer is willing to pay for. All other tasks
are non-value-added.
Reference: customer, non-value-added (NVA), NVAE
Benefits: Understanding the true meaning of value is the first step to being able
36

to objectively identify waste.

value

From a lean perspective, 'value' is anything a paying customer is willing to pay for.
Anything a paying customer is not willing to pay for is considered waste, and
should be designed out of processes. NOTE: Because customers are 'required' to
pay for waste (due to pricing) doesn't mean they are 'willing' to pay for it.
For example, due to system errors (material condition, machine condition,
process/procedure errors, human error), it is common to have several inspections
to ensure product quality. However, while the customer wants to pay for a defect
free product, the customer doesn't care how many inspections are performed (and
in fact, would rather pay for none of them). Even if an inspection is 'required' (as
in many supply chains), it should still be considered waste, and the responsibility
of the supplier to 'design out' the need for the inspection, then convince the
customer to change the inspection requirement.
Reference: 7 classic wastes, customer, value-added, waste
Benefits: Understanding the true meaning of value is the first step to being able
to objectively identify waste.

VMI

Vendor Managed Inventory.

VSM

Value Stream Map

VSN

Value Stream Network

waste

Any task, process, or portion of a system that doesn't directly provide value to a
payingcustomer. By definition, there are 3 forms of
waste (muda, mura, muri). Taiichi Ohno identified 7 categories of muda (overproduction, waiting, transportation, inventory, motion, over-processing, &
defects).
Reference: 3 forms of waste, 7
wastes, muda, mura, muri, NVA, NVAE, value, value-added
Benefits: Understanding the nature of waste is the first step in being able to
recognize it, and thereby work to eliminate it. All of 'lean' is centered around the
identification & elimination of waste, in all it's various forms.

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water
spider

Common name for a person assigned to support a production operation, so that

others may focus exclusively on value-added work.
Unlike a 'floater', a water spider is assigned specific tasks, such as replenishing
raw material inventories (via milk run), common area clean-up, etc... Water spider
duties should not include tasks which take them away from the production area,
or detract from their specific, assigned duties (the water spider is not the
'paperwork' or '5S' person). A water spider should be considered the 'NASCAR pit
crew' for the production team, without which it would be impossible to 'win the
race'.
Management may tend to view the water spider position as 'excess', or
expendable. There is also a tendency to assign an inexperienced person to this
position, with the thought that it is a good position to 'train' in. However, the
exact opposite is the case. In an efficiently designed cell, the water spider is not
only an absolutely critical member of the production team, but the position should
be staffed with the best, most experienced personnel. This forces each
workstation to be designed for an 'average' team member, and allows the water
spider to assist or step in to any production position (temporarily, not to interfere
with milk runs & other production support) when necessary.
The water spider position really should be viewed as the only indispensible
position, to be manned regardless of how many production personnel are
available. If this position isn't manned, the production cell cannot run, due to
material shortages.
Reference: milk run, mizusumashi, value-added (VA)
Benefits: In a properly designed production cell, a water spider can raise the
efficiency of the cell by as much as 90%, by allowing the rest of the production
personnel to focus exclusively onvalue-added work. A good water spider can also
be an essential part of any continuous improvement effort, constantly reducing
inventories, managing kanbans, and assuring good communication among team
members.

water
strider

The common Water Strider (Gerris remigis) is water bug that looks a lot like a big
mosquito walking on the surface of the water. In a 'lean' context, a water strider is
a person assigned to support a production operation, so that others may focus
exclusively on value-added work. See'water spider'.
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WCM

World Class Manufacturing -

WIP

Work-In-Process

yamazumi

A modification of yamadzumi, a Japanese term meaning 'huge mound or heap'. A

'Yamazumi board' is a takt/cycle chart, used to balance a process to takt time. The
board features vertical bars of varying heights (representing relative time to
complete a task), which can be moved fromoperation to operation in order to
balance the process.
Reference: cycle time, operation, process, takt time
Benefits: Unbalanced processes will not meet customer demand. Balanced
processes allow production to occur at the required rate. The Yamazumi board
provides a mechanism to quickly rebalance a process when takt changes, and
allows a visual indication of which operations are overloaded (beyond takt), and
which are underutilized.

yokoten

A Japanese term referring to 'feedback', it is used in the context of spreading what

is learned from one area to another.
Contributed by: Tom Stogsdill, CI Manager, Dana Automotive Systems Groups

zero
defects

Reference: Zero Quality Control

ZQC

Zero Quality Control - A coordinated program of creating 'quality at the source'.

ZQC programs generally consist of the following components:
Source inspection - Ensuring incoming materials & WIP are free from
defects beforebeing processed
Zero defects - Ensuring no defective materials are passed along to the
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next work area

Pokeyokes - Simple fixtures which either prevent mistakes, or signal that a
mistake has been made
Autonomation/jidoka - Higher level sensing devices which perform
automated inspections
Reference: autonomation, jidoka, poka-yoke, source inspection, zero defects
Benefits: Fewer errors in processes translate directly to fewer defects in
products. Fewer defects means less time wasted on rework, and fewer labor
resource requirements to manage defective parts. Less scrap means lower
material costs, reduced inventory requirements, reduced space requirements, and
less costs due to inventory management. Fewer defective products mean less
defects will make it to market, fewer customer complaints, and reduced
opportunities for customers to sample a competitors product.

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