Glossary

Term Definition
5-S

A systematic process of workplace organization

Autonomation

Stopping a line automatically when a defective part is detected. [Same as Jidoka]

Balanced Plant

A plant where capacity of all resources are balanced exactly with market demand.

Bottleneck

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

Capacity Constraint Resources

Where a series of non-bottlenecks, based on the sequence in which they perform their jobs can act as a constraint. [Abbreviation: CCR]

CCR

Where a series of non-bottlenecks, based on the sequence in which they perform their jobs act as a constraint. [Full title; Capacity Constraint Resources]

Chaku-Chaku

A method of conducting single-piece flow, where the operator proceeds from machine to machine, taking the part from one machine and loading it into the next. [Same as Load-Load]

Change Agent

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

Constraint

Anything that limits a system from achieving higher performance, or throughput. Alternate: That bottleneck which most severely limits the organization’s ability to achieve higher performance relative to its purpose/goal.

Covariance

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

Dependent Events

Events that occur only after a previous event.

Evaporating Clouds

The Evaporating Cloud is one of the six Thinking Processes in the Theory of Constraints initially developed by Eliyahu M. Goldratt to enable the focused improvement of any system (especially business system). The Evaporating Cloud is also referred to in the literature as The Conflict Resolution Diagram.

The Evaporating Cloud is suited to finding a solution to conflict between two parties or two points of view. The method requires the participants to find ‘win-win’ solutions because it emphasizes that both parties are trying to reach the same ultimate goal.

External Setup (OED)

Die setup procedures that can be performed while machine is in motion. OED – “outer exchange of die” [See Internal Setup]

Flow Kaizen

Radical Improvement, usually applied only once within a value stream. [Same as Kaikaku]

Gemba

In business, gemba refers to the place where value is created; in manufacturing, the gemba is the factory floor.

Heijunka

Keeping total manufacturing volume as constant as possible. [Same as Production Smoothing]

Hoshin Kanri

The selection of goals, projects to achieve the goals, designation of people and resources for project completion, and establishment of project metrics. [Same as Policy Deployment]

Information Management Task

The task of taking a specific product from order-taking through detailed scheduling to delivery. [See Value Stream]

Informative Inspection

A form of inspection used to determine non-conforming product. [See Inspection or Judgment Inspection]

Innovation

Innovation is bringing new ideas to life. In business, ideas and inventions become innovations when they yield a tangible result that is meaningfully unique and provides a benefit to a customer for which they are willing to pay more money.

Innovation Engineering

Innovation Engineering – A systematic approach and tools to leading profitable growth through innovation. (visit http://www.innovationengineering.info/)

Inspection

Comparing product, or component against specifications to determine if such product or component meets requirements. [See Judgment Inspection or Informative Inspection]

Internal Setup (IED)

Die setup procedures that must be performed while machine is stopped. IED – “inner exchange of die” [See External Setup]

Inventory

The money the system has invested in purchasing things it intends to sell.

Jidoka

Stopping a line automatically when a defective part is detected. [Same as Autonomation]

Judgement Inspection

A form of inspection used to determine non-conforming product. [See Inspection or Informative Inspection]

Kaikaku

Radical Improvement, usually applied only once within a value stream. [Same as Flow Kaizen]

Kaizen

Continuous improvement through incremental improvements. [Same as Process Kaizen]

Lean

Lean refers to a collection of principles, methods and tools that focus on the systematic identification and elimination of waste (non-value adding activities) in all forms. Lean uses the unrelenting search for efficiency (waste reduction) as a means to define and improve organizational performance. Lean principles can be applied throughout enterprises – on a production floor, in administrative settings and beyond.

Load-Load

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

MEP

Manufacturing Extension Partnership within the National Institute of Standards and Technology (NIST)

Muda

Any human activity which absorbs resources, but creates no real value. [See Non-Value Added, Waste]

Nagara System

A production system where seemingly unrelated tasks can be produced by the same operator simultaneously.

NIST MEP

National Institute of Standards & Technology Manufacturing Extension Partnership

Non-Value Added

Activities or actions taken that add no real value to the product or service, making such activities or action a form of waste. [See Value Added]

One-TouchExchange of Dies (OTED)

The reduction of die set-up where die setting is reduced to a single step. [See Single Minute Exchange of Die, Internal Setup, or External Setup]

Operating Expenses

Cost of Operations

Operations

Work or steps taken to transform material from raw materials to finished product. [See Process, Sub-Processes]

Physical Transformation Task

The task of taking a specific product from raw materials to a finished product in the hands of the customer. [See Value Stream]

Pitch

The pace and flow of a product.

Policy Deployment

The selection of goals, projects to achieve the goals, designation of people and resources for project completion, and establishment of project metrics. [Same as Hoshin Kanri]

Process

The flow of material in time and space. The accumulation of sub-processes, or operations that transform material from raw material to finished products.

Process Kaizen

Continuous improvement through incremental improvements. [Same as Kaizen]

Production Smoothing

Keeping total manufacturing volume as constant as possible. [Same as Heijunka]

Quality

Meeting expectations and requirements, stated and un-stated, of the customer.

Quality Function Deployment (QFD)

Using a cross-functional team to reach consensus that final engineering specification of a product are in accord with the voice of the customer.

Quick Changeover

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

Real Value

Attributes and features of a product or service that, in the eyes of customers, are worth paying for. [See Value Added, Non-Value Added]

Resource Activation

Using a resource regardless of whether throughput is increased. [See Resource Utilization ]

Resource Utilization

Using a resource in a way that increases throughput. [See Resource Activation]

Right-size

Matching tooling and equipment to the job and space requirements of lean production.

SBA

Small Business Administration

SBDC

Small Business Development Center

Sensei

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

Shusa

The leader of the team whose job it is to design and engineer a new product and put it into production.

Single Minute Exchange of Dies (SMED)

The reduction in die set-up time. Set-up in a single minute is not required, but used as a reference. [See One-Touch Exchange of Die, Internal Setup, or External Setup]

Standard Work

Specifying tasks to ensure the job is done the best way, the right way, the first time, every time, in the amount of time available.

Statistical Fluctuations

Kinds of information that cannot be precisely predicted.

Sub- Optimization

A condition where gains made in one activity are offset by losses in another activity or activities, created by the same actions creating gains in the first activity.

Sub-Processes

A series of operations combined. Part of a process

Takt Time

Daily production number required to meet orders in hand divided into the number of working hours in the day. TAKT Time = available work time/number of units required.

Theory of Constraints (TOC)

A lean management philosophy that stresses removal of constraints to increase throughput while decreasing inventory and operating expenses.

Throughput

The rate the system generates money through sales.

Training Within Industry (TWI)

The TWI programs were developed during World War II as a result of the direct needs of American industry and is the "standard work" foundation of the Toyota Production System and Lean Manufacturing. It incorporates three modules of "J" programs of training designed to teach basic skills necessary for continuous improvement: 1) Job Instruction Training (JIT) with the objective to teach someone how to instruct another person and transfer knowledge in a given job; 2) Job Methods Training (JMT) with the objective to enable individuals to improve the job they are doing; and 3) Job Relations Training (JRT) with the objective to develop and maintain strong, positive relationships among all employees.

Value Added

Activities or actions taken that add real value to the product or service. [See Non-Value Added]

Value Analysis

Analyzing the value stream to identify value added and non-value added activities.

Value Stream

The set of specific actions required to bring a specific product through three critical management tasks of any business: Problem-solving, Information management and physical transformation.

Visual Controls

Displaying the status of an activity so every employee can see it and take appropriate action.

Waste

Anything that uses resources, but does not add real value to the product or service.

Yield

Produced product related to scheduled product.