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Lean Dictionary

5S
Five Japanese terms beginning with 'S' utilized to create a workplace suited for Visual Control and Lean production. Later these terms were translated into English - the English term is listed in parentheses behind the Japanese term. 'Seiri' (Sort) means to remove unnecessary tools, parts, and instructions from the workplace. 'Seiton' (Set in Order) means to allocate proper storage locations that facilitate ease of use for all items that remain and to identify the items that belong in these locations. 'Seiso' (Shine) means to clean all tools, material and the rest of the workplace. 'Seiketsu' (Standardize) means to conduct Seiri, Seiton, and Seiso at frequent intervals to maintain the workplace in perfect condition. 'Shitsuke' (Sustain) means to form the habit of always following the first four S's.

6S
The same as 5S with an extra "S" added to represent 'Safety'. Although safety is emphasized throughout the first 5 S's, some companies feel it is necessary to have an extra focus on safety.

Alpha Customer
An early customer who can help guide development of a new product and may represent its first sale.

Andon Board
A visual control device that provides binary information (i.e. only two possible outcomes). Typically a light that is green when things are going well, that flashes red when an abnormal situation occurs, such as zero stock inventory, machine breakdown, etc.

Autonomation
Transferring human intelligence to automated machinery, allowing machines to detect the production of a single defective part. The machine then immediately stops itself while simultaneously alerting team members of the problem.

Available Work Time
The time available for processing. For example, if a shift is 8 hours long (480 minutes), but operators are absent for a 30-minute lunch, and two 15-minute breaks, then the available work time is 420 minutes. Maintenance downtime, unscheduled breaks, and other wasteful interruptions are never removed from the available work time, although regularly occurring, necessary meetings may be.

Average Cycle Time
If multiple parts are processed at the same time (either in multiple machines, or as a batch), then the average cycle time is equal to the cycle time of the batch divided by the number of parts. For example, if 30 cookies are baked in an oven for 30 minutes, then the process time is 30 minutes, and the cycle time is also 30 minutes, but the average cycle time is 1 minute.

Batch-and-Queue
The production of more than one item at a time, which are then moved to the next operation where they need to wait in a queue. Also called "Batch-and-Push." Contrast with Single Piece Flow.

Bottleneck
Any process that cannot achieve the customer demand. For example, any process that has a cycle time that is longer than takt time. Alternatively, a process could be a bottleneck due to machine reliability issues, changeover times, or resource constraints.

Cell
See Workcell.

Chaku-Chaku
A method of Single Piece Flow in which operators proceed from machine to machine, taking the part from the previous operation and loading it in the next machine. Literally means, "load-load" in Japanese.

Changeover
When a piece of equipment has to stop producing in order to be prepared to produce a different item. Note, that a different item must be produced. If the machine must be stopped between all items, then this is setup, not changeover. For example, when changing from a blue plastic molding to a red plastic molding, the resin container must be removed, and the extruder cleaned. The time between the last good blue piece and the first good red piece is the changeover time.

Concurrent Engineering
A team methodology that demands participation and current action by engineering, marketing and operations.

Continuous Flow
See Single Piece Flow.

Critical Path
The serial sequence of events that determine a project's length. Thus a one day delay along the critical path results in a one day delay in the overall project.

Critical-to-Quality
Any component or design element that places high demands on the production process.

Current State
The existing methods of operation. Contrast with Future State.

Current State Map
A visual representation of the existing material and information flows. Typically drawn on paper in pencil, the current state map is the foundation for developing a Future State Map and is a key part of the value stream mapping process.

Customer Support
Support of the sales organization, often involving quick-response answers to customer questions or challenges.

Cycle Time
How frequently an item or product is completed by a process, as timed by direct observation. Also, the time it takes an operator to go through all of his or her work elements before repeating them.

Deliverable
Any transferable information or material such as documents, files, drawings, tooling, prototypes, etc.

Design Rules
A brief set of guidelines that identify how to best design a product to be produced by a given manufacturing process.

Design Verification Test
A set of tests that verify that a product concept can meet all performance requirements.

Downscope
To eliminate some aspect of the work to be performed on a project, such as eliminating a product feature.

EPE
Stands for "Every Product Every…". See EPEI.

EPEI
Stands for "Every Product Every Interval", which is a measure of production batch size and production flexibility. For example, if a process runs one week worth of parts at a time, then the EPEI will be one week. In other words, it will be one week before all part variations of an order are run. EPEI represents production flexibility because if there is a change to an order, and that part number has already been run, the change cannot be implemented until the next interval; the longer the interval, the less flexible the process.

Fabrication Process
Segments of the value stream that respond to requirements from internal customers. Fabrication processes are often characterized by general-purpose equipment that makes a variety of components for different downstream processes. Normally found early in the value stream.

Feature Creep
The tendency for additional requirements or features to be added to a new product during development.

FIFO
Stands for "First In, First Out". Material produced by one process is consumed in the same order by the next process. FIFO is one way to regulate inventory between two processes when Single Piece Flow is impractical. A FIFO Lane is filled by the supplying process and emptied by the customer process.

FIFO Lane
See FIFO. A FIFO Lane has a predetermined maximum size, that when filled, causes the supplier process to shut down until there is an empty spot again.

Finished Goods
The inventory at the end of the value stream that is ready for customer use.

Flow
A main objective of the entire Lean production effort. Henry Ford recognized that, ideally, production should flow continuously all the way from raw material to the customer and envisioned a production system that acted as one long conveyor.

Future State
A "leaner" system of operation than the one currently in place.

Future State Map
A visual representation of "leaner" material and information flows than those that currently exist. Typically drawn on paper in pencil, the future state map is developed by applying the Lean Principles to the Current State Map. The Future State Map is then used to create an Implementation Plan and is a key part of the value stream mapping process.

Gate
See Phase Gate.

Heijunka
A Japanese term that refers to the act of leveling the variety and/or volume of items produced at a process over a period of time. Used to avoid excessive batching of product types especially at a pacemaker process.

Henry Ford
The pioneer of Lean. Henry Ford created the first flow line in his Highland Park plant around 1918. Components were assembled in U-shaped cells and then added to the car on a moving assembly line. Ford got the idea after visiting slaughterhouses that used a similar process for disassembling a carcass.

Hoshin Kanri
A strategic decision-making tool for a firm's executive team that focuses resources on the critical initiatives necessary to accomplish the business objectives of the firm. Hoshin Kanri aligns resources and establishes clearly measurable targets against which progress toward the key objectives is measured on a regular basis.

Implementation Plan
Developed by listing the activities required to take a value stream from the Current State to the Future State. The Implementation Plan is the final outcome of Value Stream Mapping.

Incidental Waste
See incidental work.

Incidental Work
Any activity that adds no value but is currently necessary, frequently due to limitations in technology. For example, removing the engine from a car to perform maintenance on it does not add value (since nothing has been repaired), however, since it is a necessary step to make it easier to fix the engine, this activity is not pure waste either. Also called a value enabler or incidental waste.

Information Flow
Data that tells a process what to produce next. Information should flow from the customer back towards the supplier on a value stream map.

Interval
See EPEI.

Jidoka
A Japanese term that means "to give human intelligence". See Autonomation.

JIT
See Just-in-Time.

Just-in-Time
Producing or delivering only the items that are needed by the next process when they are required and in the quantity needed.

Kaikaku
A Japanese term that means radical improvement of an activity to eliminate waste. Also called breakthrough kaizen, flow kaizen, and system kaizen.

Kaizen
A Japanese term that means to continuously improve in incremental steps. In North America, the term kaizen has come to adopt the meaning of Kaikaku.

Kanban
A Japanese term that refers to a signaling device that gives instruction for production (production kanban) or delivery (withdrawal kanban) of items in a pull system.

Lead Time
The time required for one piece to move all the way through a process or value stream, from start to finish. Envision timing a marked item as it moves from raw material to the customer, pausing to wait in the piles of inventory between processes.

Lean
The elimination of waste thereby allowing operators to focus on providing value to the customer. Contrary to popular belief, Lean is not an acronym.

Lean Principles
Five principles of Lean developed by James Womack and Daniel Jones in their book, Lean Thinking.

Level Production
See Heijunka.

Material Flow
Movement of physical product through the value stream. On a value stream map, the material flow is drawn along the bottom of the map and flows from left to right.

Material Handlers
Support persons who deliver needed materials, supplies and/or information to processes within the value stream. In a Lean system, material handlers travel repeatedly along scheduled routes within a facility in response to pull signals and make paced withdrawals of finished goods at the pacemaker process. See Waterspider Routes.

Milestone
A point in time that signifies completion of a task or delivery of some information or material.

MRP
Material Requirements Planning. A computerized system typically used to determine the quantity and timing requirements for delivery and production of items. Using MRP specifically to schedule production at processes in a value stream results in push production, because any predetermined schedule is only an estimate of what the next process will actually need. Manufacturing Resource Planning - often called MRP II - expands MRP to include capacity planning, a finance interface to translate operations planning into financial terms, and a simulation tool to assess alternative production plans.

Milk Run
Routing a delivery person and/or vehicle in a way that allows for pickups or drop-offs at multiple locations on a single travel loop, as opposed to making separate trips to each location.

Monument
See Shared Resource.

Muda
A Japanese word meaning waste, although it is a more detestable word that implies something that is completely unacceptable and inappropriate in the workplace.

One Piece Flow
See Single Piece Flow.

Operation
An activity or activities performed on a product by a single machine. Contrast with process.

OPC
Stands for "Operator Balance Chart". A bar graph depicting the cycle time for each operator in a process to make one piece compared to the takt time. Used for cell balancing and creating single piece flow.

Overproduction
Producing more, sooner or faster than is required by the next process. Listed by Taiichi Ohno as the worst of the production wastes.

Out-of-Box Failure
A product that fails upon arrival at the customer's location, presumably due to poor quality.

Overshoot
A requirement or specification that significantly exceeds the customer's needs.

Paced Withdrawal
A timed sequence of withdrawal of finished product from the pacemaker. Paced withdrawal is a tool for pacing an assembly process and becoming aware of production problems within a pitch increment.

Pacemaker
The process in the value stream that determines the pace for the entire value stream. It is the only process that is scheduled - upstream processes are scheduled by replenishing parts consumed by the pacemaker, while downstream processes produce parts in the same order the pacemaker produces them. Thus, all processes after the pacemaker must flow.

Phase Gate
A method for controlling a project by using serial phases controlled by management led "gate" meetings.

Pitch
The pitch is an increment of time that is used to measure the performance of the value stream. Pitch provides a management timeframe, meaning that management will be notified of problems in the value stream before a reasonable amount of time has passed. Pitch is typically a function of takt time - if takt time is short, the pitch may be equal to several times takt time. Pitch represents the frequency at which finished goods are withdrawn from the pacemaker. Pitch is often calculated based on the finished goods pack quantity.

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

Poka-Yoke
A Japanese term for a mistake proofing device or procedure to prevent defects from occurring. For example, designing a fixture so that parts can only be loaded into a machine in the correct orientation.

Process
A single or multiple operations that occur without inventory accumulation between them. Contrast with operation.

Process Kaizen
See Point Kaizen.

Process Village
The practice of grouping machines or activities by the type of operation performed. For example, locating the welding machines into a welding department. Contrast with Workcell.

Process Time
The time a product is actually being worked on in a machine or work area. The process time is not affected by the number of machines, or by the batch size. Contrast with Cycle Time.

Product Family
A group of products that go through similar processing steps and have similar process times.

Product Qualification
See Qualification Test.

Pull
Production is triggered by the customer, as opposed to a forecasted schedule. Supplier processes can only produce if given a signal by a customer process. Typically accomplished using supermarkets and flow. Contrast with push.

Push
Production is triggered by the supplier process that is usually following a schedule based upon forecasted demand rates. If actual demand does not equal the forecasted demand (which it rarely does), then inventory may pile up, causing delays in lead time, or worse yet, customer orders may not be met.

Qualification Test
A set of tests performed on production-like hardware to verify the quality of a new product design.

Queue Time
The time a product spends waiting in line for the next processing step.

Raw Material
Unprocessed inventory from a supplier.

Sensei
A personal teacher with a mastery of a body of knowledge. This technique was pioneered by Toyota; they would send a sensei to work with supplier companies to assist them on their lean journey.

Setup
When a piece of equipment has to stop producing between batches even if it is producing the same part. For example, unloading a washing machine, replacing an empty spool of wire, etc. Contrast with Changeover.

Shared Resource
Any single process that processes multiple parts across several value streams. Frequently, parts accumulate in queue waiting to be processed. Also called a monument.

Single Piece Flow
Products are produced and moved from one processing step to the next one piece at a time, with no inventory accumulation between processes. Each process makes only the one piece that the next process needs, and only one part is transferred at a time. Also called Continuous Flow or One Piece Flow. Contrast with Batch-and-Queue.

Spaghetti Diagram
A map of the path taken by a specific product as it travels through the value stream. Named such because in typical mass-production organizations the diagram resembles a plate of spaghetti.

SPC
Stands for "Statistical Process Control". An acceptable level of variation is determined for a specific parameter and then that parameter is routinely measured to determine if the process is within control. For example, a machine is determined to perform best at 100 meters/second with a variation of +/- 5 m/s. Every shift, the speed is measured to determine if the machine is within "normal" variation limits. If the run speed falls outside of these limits, a maintenance person is contacted to bring the machine back under control.

Special Orders
Orders that require the customization of a standard product in order to make a sale.

Standard Work
A precise description of each work activity used to ensure that the task is completed the same way every time, regardless of who is performing the operation.

Supermarket
A controlled inventory of several part types that is used to schedule production of a supplier process.

Sustaining Engineering
Support of ongoing production by engineering staff, usually a trouble-shooting role.

System Kaizen
Improvement aimed at an entire value stream. Contrast with point kaizen.

Taiichi Ohno
Toyota's production manager after World War II. Taiichi Ohno adapted the principles first created by Henry Ford to create the Toyota Production System, which became the foundation for Lean.

Takt Time
A German word meaning "rhythm" or "beat". Takt time is the rate of customer demand and is calculated by dividing the Available Work Time by the customer demand over the same period of time. This signifies how often the customer requires one finished item. This time is then used to set the pace of the pacemaker process.

TPM
Stands for "Total Productive Maintenance". A series of methods, originally pioneered by Nippondenso (a member of the Toyota group), to ensure that every machine in a production process is always able to perform its required tasks so that production is never interrupted.

TPS
Stands for "Toyota Production System". Developed by Taiichi Ohno after World War II, TPS is based upon the principles used by Henry Ford in the production of the Model-T automobile. Ohno modified these principles to allow for variation in products. TPS is the foundation of Lean, although Lean is more general so that it may be applied to any organization.

Undershoot
A requirement or specification that falls noticeably short of the customer's needs.

Value
The aspects of a product or service that the customer is willing to pay for. Identifying the value provided to the customer is the first principle of Lean.

Value-Added Time
The process time for only those work elements that transform the product in a way the customer is willing to pay for. Many companies try to track their value-added time, but this is a wasteful task since the information provided is of little use. Value-added time is difficult to track because process time includes waste.

Value Enabler
See incidental work.

Value Stream
All activities, both value added and non-value added, required to bring 1) a product from raw material into the hands of the customer; 2) a customer requirement from order to delivery; or 3) a design from concept to launch.

Value Stream Loops
Segments of flow within a value stream. Breaking a value stream into loops allows the Implementation Plan to be broken into smaller, more manageable pieces.

Value Stream Leader
The person responsible for the daily operations of a value stream and for achieving that value stream's future state. The value stream leader is product-focused and not restricted by departmental or functional boundaries.

Value Stream Mapping
An exercise that maps the current state of a value stream and then applies Lean concepts to create a future state and implementation plan. Value Stream Mapping is a fundamental Lean tool and should be the foundation of an organization's Lean journey.

Visual Control
Using visual indicators to control value stream performance. For example, using shadow outlines to indicate where tools belong, charts indicating cycle time and lead time, flashing andon lights that indicate that a machine has stopped working, etc. The real benefit of visual control is that anyone can understand value stream performance, and it takes only a moment to determine, thereby allowing immediate response to problems.

Waste
Any activity that consumes resources but creates no value for the customer. Taiichi Ohno classified waste into 8 types: inventory, overproduction, transportation, poor quality, over-processing, waiting, motion, and people's talents. See Muda.

Waterspider Routes
A pre-determined path that material handlers follow to deliver materials to processes at a pace equal to the rate of customer demand.

Workcell
A group of machines and/or workstations operating in Single Piece Flow. Typically arranged in a "U" shape, although "L" shape, straight line and other configurations are also possible. Workcell operators may handle multiple processes, and the number of operators is changed when the customer demand rate changes. Also called a Cell.

Work Element
The smallest amount of work that could be transferred from one operator to another. Used in the creation of single piece flow.

WIP
Stands for "Work-in-Process". Typically used interchangeably with "inventory", WIP actually refers only to inventory between raw material and finished goods.

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