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LEAN LEXICON PDF

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Simpler Consulting, Inc ALL RIGHTS RESERVED. For the Express Use of Simpler Members and Simpler Clients. Lean Term. Definition. Use. 6S. Lean Concepts. Source: Lean Lexicon. Continuous Flow. Producing and moving one item at a time (or a small and consistent batch of items) through a series of. With help from the Lean Community, we made the new Third Edition of the Lean Lexicon even more valuable and useful. Starting with improvement ideas from.


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With 14 new definitions touching on management, healthcare, startups, manufacturing, and service, the 5th edition of the Lean Lexicon, is the. LEX4_ebook[1] - Download as PDF File .pdf), Text File .txt) or read online. Lean Lexicon a graphical glossary for Lean Thinkers Fourth Edition. Issuu is a digital publishing platform that makes it simple to publish magazines, catalogs, newspapers, books, and more online. Easily share.

Fourth Edition, Version 4. The root cause of all remaining errors resides with the LEI editors. Design by Off-Piste Design, Inc. Appendix A: Lean Acronyms Appendix C: We receive many inquiries from members of the Lean Community asking for definitions of the terms we commonly use, ranging from A3 report to yokoten. In addition, as we attend events and visit companies we frequently find widespread confusion and inconsistent use of terms as simple and fundamental as takt time.

A very good book, we just translated the book in Chinese and published the 5th edition as an update to the original version. It is worthwhile to follow your path to promote it as an eletronic book. The eletronic book market is very confusing, however, it is worthwhile to try. You get:. Making things better through lean thinking and practice. What is Lean? Search Store:. Search Store: Recommend to a Colleague. Customer Reviews Downloads. Customer Reviews. Average Customer Review. Yes No. Lean Lexicon Introduction Preview.

Managing to Learn: Using the A3 management process. The Work of Management. You get: Many members of the Lean Community have gained their knowledge from different sources and use terms in slightly different ways. We therefore have devised two simple principles for selecting terms. These are: The term is important. You really need it to successfully operate a lean system.

The term is in widespread use. We also have needed to develop a common approach to definitions. As shown on the sample page at right, for each term we provide: A simple definition. An example, often showing different types of applications. Cross-references to related terms. An illustration, whenever possible. Of course, many terms, like chief engineer and greenfield, would be impossible to illustrate beyond photos of specific individuals and facilities!

As editors, we are acutely aware that there will be some differences within the Lean Community on definitions, and we have tried to provide the most common usage. We are even more aware that some important terms may have been left out. We therefore hope to hear suggestions for additions and improvements which should be sent to: We will issue revisions of the Lean Lexicon as appropriate. Definition An andon can indicate production status for example, which machines are operating , an abnormality for example, machine downtime, a quality problem, tooling faults, operator delays, and materials shortages , and needed actions, such as changeovers.

An andon also can be used to display the status of production in terms of the number of units planned versus actual output.

A number lights when a problem is detected by a machine sensor, which automatically trips the appropriate light, or by an operator who pulls a cord or pushes a button. The illuminated number summons a quick response from the team leader. Colored lighting on top of machines to signal problems red or normal operations green is another type of andon.

Cross- See: Jidoka, Visual Management. Product A 1 2 3 4 Illustration Product B 1 2 3 4. Planned Production Actual Production Treatment of Foreign Terms Our editorial North Star, The Chicago Manual of Style, states that foreign words usually are set in italics if they are likely to be unfamiliar to readers.

And in many works on lean production and lean thinking terms such as kaizen and muda are italicized.

However, in preparing this lexicon, our objective is to bring all of these terms into common usage. Plus, we have no way to know which terms are now familiar and which are still novel across the Lean Community. We therefore have decided to welcome the entire list of terms into the English language and have set all of them in plain type. A3 Report A3 Report A Toyota-pioneered practice of getting the problem, the analysis, the corrective actions, and the action plan down on a single sheet of large A3 paper, often with the use of graphics.

At Toyota, A3 reports have evolved into a standard method for summarizing problem-solving exercises, status reports, and planning exercises like value-stream mapping. A3 paper is the international term for paper millimeters wide and millimeters long. The closest U. A-B Control A way to regulate the working relationships between two machines or operations to control overproduction and ensure balanced use of resources. In the Illustration, neither of the machines nor the conveyor will cycle unless three conditions are met: Machine A is full, the conveyor contains the standard amount of work-in-process in this case, one piece , and Machine B is empty.

When those conditions are met, all three will cycle once and wait until the conditions are met again.

Inventory, Overproduction. Lean Thinkers use this analysis to decide how much and for which products to hold inventory. A items are high runners, B items are medium runners, and C items are low runners. C items typically include infrequent color and build combinations, special-edition items, and replacement parts.

Flow Production, Pull Production. An andon can indicate production status for example, which machines are operating , an abnormality for example, machine downtime, a quality problem, tooling faults, operator delays, and materials shortages , and needed actions, such as changeovers.

Product A 1 2 3 4. Product B 1 2 3 4. Automatic Line Stop Ensuring that a production process stops whenever a problem or defect occurs. For an automated line this usually involves the installation of sensors and switches that automatically stop the line when an abnormality is detected. For a manual line a fixed-position stop system often is installed. This permits operators to pull an overhead cord or push a button that stops the process at the end of a work cycle if the problem encountered cannot be fixed during the cycle.

These examples illustrate the lean principle of jidoka, which prevents defects from going to the next phase of production and avoids the waste of making a series of defective items. Mass producers, by contrast, will try to keep lines running to achieve high equipment utilization, even when known defects occur repetitively and require rework at the end of the process.

Brownfield An existing production facility, usually managed in accordance with mass production thinking. Build-to-Order A situation in which production lead time and order lead time are less than the time the customer is prepared to wait for the product, and the producer builds products entirely to confirmed order rather than to forecast.

This is a condition Lean Thinkers strive to achieve because it avoids the demand amplification and waste inherently involved in building products based on informed guesses about customer desires. Demand Amplification, Heijunka, Level Selling. Capital Linearity A philosophy for designing and buying production machinery so that small amounts of capacity can be added or subtracted as demand changes.

In this way, the amount of capital needed per part produced can be very nearly level linear. For example, in capacitizing for , units of annual output, a manufacturer might purchase a series of machines, each with an annual capacity of , units, and link them in one continuous flow production line first alternative.

Alternatively, the manufacturer might buy 10 sets of smaller machines to install in 10 cells, with each cell having annual capacity of 10, units second alternative.

If the forecast of , units proved to be exactly correct, the single line with , units might be the most capital efficient. But if real demand is different, the second alternative offers distinct advantages: By adding cells, the capital investment per unit of output would vary only slightly with changing demand.

It would be very nearly linear. Whenever the real demand is less than , units, a more serious problem arises. The first alternative makes it almost impossible to decrease capacity and maintain efficiency at the current level.

However, the second alternative allows the manufacturer to subtract capacity by shutting down as many cells as required. A U shape shown below is common because it minimizes walking distance and allows different combinations of work tasks for operators. This is an important consideration in lean production because the number of operators in a cell will change with changes in demand. A U shape also facilitates performance of the first and last steps in the process by the same operator, which is helpful in maintaining work pace and smooth flow.

Many companies use the terms cell and line interchangeably. Fer Ass rul em Hos es bly II es. Ho es Valv Assembly I 1. Crimper Material Connectors Flow. Tube Bender out 2 automatic load 1 tube load Te at a time Operator au ster tom Motion atic. There is a school of thought that material should flow through cells in a right-to-left direction relative to the operator, because more people are right handed and it is more efficient and natural to work from right to left.

However, many efficient processes flow to the left and many flow to the right. Simply evaluate on a case-by-case basis whether a particular direction makes more sense.

Chaku-Chaku A method of conducting one-piece flow in a cell where machines unload parts automatically so that the operator or operators can carry a part directly from one machine to the next without stopping to unload the part, thus saving time and motion. For instance, the first machine in a processing sequence automatically ejects a part as soon as its cycle is completed. The operator takes the part to the next machine in the sequence, which has just finished cycling and ejected its part.

The operator loads the new part, starts the machine, and takes the ejected part to the next machine, which has just finished cycling and ejected its part and so on around the cell. The term literally means "load-load" in Japanese. Cell, Continuous Flow. Change Agent The leader of a lean conversion who has the willpower and drive to initiate fundamental change and make it stick. The knowledge can come from a lean expert, but the change agent absolutely needs the will to see that the knowledge is applied and becomes the new way of working.

Changeover The process of switching from the production of one product or part number to another in a machine e. Also called a setup. Changeover time is measured as the time elapsed between the last piece in the run just completed and the first good piece from the process after the changeover.

Chief Engineer The term used at Toyota for the program manager with total responsibility for the development of a product line; previously known by the Japanese term shusa.

Chief engineers typically have strong technical skills that enable them to effectively lead and coordinate the technical work of engineers, designers, and other developers assigned to their projects. Their most important responsibility is to integrate the work of the development team around a coherent and compelling vision for the product. However, chief engineers do not directly supervise most of the developers who work on their products.

The organizational structure sets up a natural tension between the project leader who wants to realize his product vision and the functional units who understand intimately what is possible. Value-Stream Manager. Continuous Flow Producing and moving one item at a time or a small and consistent batch of items through a series of processing steps as continuously as possible, with each step making just what is requested by the next step. Continuous flow can be achieved in a number of ways, ranging from moving assembly lines to manual cells.

It also is called one-piece flow, single-piece flow, and make one, move one. Cross-Dock A facility that sorts and recombines a variety of inbound items from many suppliers for outbound shipment to many customers, such as assembly plants, distributors, or retailers. A common example is a facility operated by a manufacturer with many plants in order to efficiently gather materials from many suppliers.

When a truck loaded with pallets of goods from suppliers arrives on one side of the dock, the pallets are immediately unloaded, and taken to several shipping lanes for loading onto outbound trucks bound for different facilities see illustration on p.

A cross-dock is not a warehouse because it does not store goods. Instead, goods are usually unloaded from inbound vehicles and moved to shipping lanes for outbound vehicles in one step. If outbound vehicles leave frequently, it may be possible to clear the floor of the cross-dock every 24 hours. Cycle Time The time required to produce a part or complete a process, as timed by actual measurement. Cycle Time—Related Terms Involving Time Effective Machine Cycle Time Machine cycle time plus load and unload time, plus the result of dividing changeover time by the number of pieces between change- overs.

Machine Cycle Time The time a machine requires to complete all of its operations on one piece. Such activities typically include storage, inspection, and rework. Operator Cycle Time The time it takes an operator to complete all the work elements at a station before repeating them, as timed by direct observation. Order Lead Time Production lead time plus time expended downstream in getting the product to the customer, including delays for processing orders and entering them into production and delays when customer orders exceed production capacity.

In other words, the time the customer must wait for the product. Order-to-Cash Time The amount of time that elapses from the receipt of a customer order until the producer receives cash payment from the customer. This can be more or less than order lead time, depending on whether a producer is in a build-to-order or a ship-from-stock mode, on terms of payment, etc.

Processing Time The time a product actually is being worked on in design or production and the time an order actually is being processed. Typically, processing time is a small fraction of production lead time. Production Lead Time also Throughput Time and Total Product Cycle Time The time required for a product to move all the way through a process or a value stream from start to finish.

At the plant level this often is termed door-to-door time. The concept also can be applied to the time required for a design to progress from start to finish in product development or for a product to proceed from raw materials all the way to the customer. Value-Creating Time The time of those work elements that actually transform the product in a way that the customer is willing to pay for. Usually, value-creating time is less than cycle time, which is less than production lead time.

Cycle Time CT How often a part or product actually is completed by a process, as timed by observation. Also, the time it takes an operator to go through all work elements before repeating them. Value-Creating Time. Value-Creating Time VCT Time of those work elements that actually transform the product in a way that the customer is willing to pay for.

Production Lead Time PLT The time it takes one piece to move all the way through a process or a value stream, from start to finish. Envision timing a marked part as it moves from beginning to end. Dashboard A one-page measurement tool comprising the critical few end-of-pipe downstream and process upstream measures related to a strategy or action plan see illustration on p. It helps a leader check and adjust a plan and provides real-time measures for real-time feedback. Value-stream maps and dashboards are complementary tools: Maps raise critical questions to be addressed during the plan phase of the plan-do-check-act cycle.

Dashboards raise questions for leaders to address during the check and act phases. Adapted from Dennis , p. Demand Amplification The tendency in any multistage process for production orders received by each upstream process to be more erratic than actual production or sales at the next downstream process.

The two main causes of demand amplification as orders move upstream are: Lean Thinkers strive to use leveled pull systems with frequent withdrawals for production and shipping instructions at each stage of the value stream in order to minimize demand amplification. The demand amplification chart on p.

The demand amplification chart is an excellent way to raise consciousness about the degree of amplification present in a production system. Build-to-Order, Heijunka, Level Selling. Design-In Collaboration between a customer and a supplier to design both a component and its manufacturing process.

Typically the customer provides cost and performance targets sometimes called an envelope with the supplier doing detailed design of the component and manufacturing process tooling, layout, quality, etc. The supplier often stations a resident engineer at the customer to ensure that the component will work properly with the completed product to minimize total cost.

Design-in contrasts with work-to-print approaches in which the supplier simply is given a complete design and told to tool and produce it. Resident Engineer. Planned downtime includes scheduled stoppages for activities such as beginning-of-the-shift production meetings, changeovers to produce other products, and scheduled maintenance. Unplanned downtime includes stoppages for breakdowns, machine adjustments, materials shortages, and absenteeism. Efficiency Meeting exact customer requirements with the minimum amount of resources.

Apparent Efficiency vs. True Efficiency Taiichi Ohno illustrated the common confusion between apparent efficiency and true efficiency with an example of 10 people producing units daily. If improvements to the process boost output to units daily, there is an apparent 20 percent gain in efficiency. But this is true only if demand also increases by 20 percent. If demand remains stable at the only way to increase the efficiency of the process is to figure out how to produce the same number of units with less effort and capital.

Ohno , p. Total Efficiency vs. Local Efficiency Toyota also commonly distinguishes between total efficiency, involving the performance of an entire production process or value stream, and local efficiency, involving the performance of one point or step within a production process or value stream.

It emphasizes achieving efficiency in the former over the latter. Overproduction, Seven Wastes. Error-Proofing Methods that help operators avoid mistakes in their work caused by choosing the wrong part, leaving out a part, installing a part backwards, etc.

Also called mistake-proofing, poka-yoke error- proofing and baka-yoke fool-proofing. Common examples of error-proofing include: Inspection, Jidoka. If a machine is changed over in a sequence so that every part number assigned to it is produced every three days, then EPEx is three days. In general, it is good for EPEx to be as small as possible in order to produce small lots of each part number and minimize inventories in the system.

A machine with long changeovers and large minimum batch sizes running many part numbers will inevitably have a large EPEx unless changeover times or the number of part numbers can be reduced.

Fill-Up System A pull production system in which preceding supplier processes produce only enough to replace—or fill up—product withdrawn by following customer processes. Kanban, Pull Production, Supermarket.

First In, First Out FIFO The principle and practice of maintaining precise production and conveyance sequence by ensuring that the first part to enter a process or storage location is also the first part to exit.

This ensures that stored parts do not become obsolete and that quality problems are not buried in inventory. FIFO is a necessary condition for pull system implementation. An example of a FIFO lane with five pieces in the lane. The FIFO sequence often is maintained by a painted lane or physical channel that holds a certain amount of inventory.

The supplying process fills the lane from the upstream end while the customer process withdraws from the downstream end. If the lane fills up, the supplying process must stop producing until the customer consumes some of the inventory.

This way the FIFO lane can prevent the supplying process from overproducing even though the supplying process is not linked to the consuming process by continuous flow or a supermarket.

FIFO is one way to regulate a pull system between two decoupled processes when it is not practical to maintain an inventory of all possible part variations in a supermarket because the parts are one-of-a-kind, have short shelf lives, or are very expensive but required infrequently. In this application, the removal of the one part in a FIFO lane by the consuming process automatically triggers the production of one additional part by the supplying process.

The five terms in Japanese are: Separate needed from unneeded items—tools, parts, materials, paperwork—and discard the unneeded. Neatly arrange what is left—a place for everything and everything in its place.

Clean and wash. Cleanliness resulting from regular performance of the first three Ss. Discipline, to perform the first four Ss. Some lean practitioners add a sixth S for Safety: Establish and practice safety procedures in the workshop and office.

However, Toyota traditionally refers to just Four Ss: Sifting Seiri: Sorting Seiton: Arrange items that are needed in a neat and easy-to-use manner. Sweeping Clean Seiso: Clean up the work area, equipment, and tools. Spic and Span Seiketsu: The overall cleanliness and order that result from disciplined practice of the first three Ss.

Standardized Work. Five Whys The practice of asking why repeatedly whenever a problem is encountered in order to get beyond the obvious symptoms to discover the root cause. For instance, Taiichi Ohno gives this example about a machine that stopped working Ohno , p.

Why did the machine stop? There was an overload and the fuse blew. Why was there an overload? The bearing was not sufficiently lubricated. Why was it not lubricated?

The lubrication pump was not pumping sufficiently. Why was it not pumping sufficiently? The shaft of the pump was worn and rattling. Why was the shaft worn out? There was no strainer attached and metal scraps got in. The specific number five is not the point.

Rather it is to keep asking until the root cause is reached and eliminated. Fixed-Position Stop System A method of addressing problems on assembly lines by stopping the line at the end of the work cycle—that is, at a fixed position—if a problem is detected that cannot be solved during the work cycle.

In the fixed-position stop system, an operator discovering a problem with parts, tools, materials supply, safety conditions, etc. The supervisor assesses the situation and determines if the problem can be fixed before the end of the current work cycle. The fixed-position stop system was pioneered by Toyota to solve three problems: The fixed-position stop system is a method of jidoka, or building in quality, on manual processes along moving assembly lines.

Andon, Automatic Line Stop, Jidoka. The objective of flow production was to drastically reduce product throughput time and human effort through a series of innovations. These included consistently interchangeable parts so that cycle times could be stable for every job along an extended line, the line itself, the reconfiguration of part fabrication tasks so that machines were lined up in process sequence with parts flowing quickly and smoothly from machine to machine, and a production control system insuring that the production rate in parts fabrication matched the consumption rate of parts in final assembly.

Continuous Flow. Mass Production. Four Ms The variables that a production system manipulates to produce value for customers. The first three are resources, the fourth is the way the resources are used.

In a lean system, the Four Ms mean: Material—no defects or shortages. Machine—no breakdowns, defects, or unplanned stoppages. Man—good work habits, necessary skills, punctuality, and no unscheduled absenteeism. Method—standardized processes, maintenance, and management. Fulfillment Stream A supply chain that embodies the principles of lean and therefore flows collaboratively and smoothly like a stream rather than operating as a group of connected links.

The lean fulfillment stream relentlessly focuses on lead-time reduction by eliminating all nonvalue-creating activities waste among suppliers and producers that collaboratively create a product. This is accomplished through rigorous process discipline, inventory reduction, and first-time quality. The lean fulfillment stream flows to the demand of the customer; all supply stream activities are triggered by pull.

The goal of the lean fulfillment stream is to deliver the highest value to the customer at the lowest total cost to stakeholders. Adapted from Martichenko and Von Grabe The term often is used to stress that real improvement requires a shop-floor focus based on direct observation of current conditions where work is done.

For example, standardized work for a machine operator cannot be written at a desk in the engineering office, but must be defined and revised on the gemba. Genchi Genbutsu The Toyota practice of thoroughly understanding a condition by confirming information or data through personal observation at the source of the condition.

For example, a decision maker investigating a problem will go to the shop floor to observe the process being investigated and interact with workers to confirm data and understand the situation, rather than relying solely on computer data or information from others.

The practice applies to executives as well as managers. Greenfield A new production facility providing the opportunity to introduce lean working methods in a new work culture where the inertia of the past is not a barrier. Group Leaders At Toyota, these are the front-line supervisors who typically lead a group of four teams or 20 workers; called kumicho in Japanese see illustration on p.

Five Ss, Team Leader. Thus, hansei is a critical part of organizational learning along with kaizen and standardized work. Heijunka Leveling the type and quantity of production over a fixed period of time. This enables production to efficiently meet customer demands while avoiding batching and results in minimum inventories, capital costs, manpower, and production lead time through the whole value stream. With regard to level production by quantity of items, suppose that a producer routinely received orders for items per week, but with significant variation by day: By keeping a small stock of finished goods at the very end of the value stream, this producer can level demand to its plant and to its suppliers, making for more efficient utilization of assets along the entire value stream while meeting customer requirements.

With regard to leveling production by type of item, as illustrated on the next page, suppose that a shirt company offers Models A, B, C, and D to the public and that weekly demand for shirts is five of Model A, three of Model B, and two each of Models C and D.

A lean producer, mindful—in addition to the benefits outlined above—of the effect of sending large, infrequent batches of orders upstream to suppliers, would strive to build in the repeating sequence A A B C D A A B C D A B, making appropriate production system improvements, such as reducing changeover times. This sequence would be adjusted periodically according to changing customer orders.

Heijunka Box A tool used to level the mix and volume of production by distributing kanban within a facility at fixed intervals. Also called a leveling box. In the illustration of a typical heijunka box see p. Each vertical column represents identical time intervals for paced withdrawal of kanban. The shift starts at 7: This is the frequency with which the material handler withdraws kanban from the box and distributes them to production processes in the facility.

Whereas the slots represent the material and information flow timing, the kanban in the slots each represent one pitch of production for one product type. Pitch is the takt time multiplied by the pack-out quantity. In the case of Product A, the pitch is 20 minutes and there is one kanban in the slot for each time interval. However, the pitch for Product B is 10 minutes, so there are two kanban in each slot. Product C has a pitch of 40 minutes, so there are kanban in every other slot.

Products D and E share a production process with a pitch of 20 minutes and a ratio of demand for Product D versus Product E of 2: Therefore, there is a kanban for Product D in the first two intervals of the shift and a kanban for Product E in the third interval, and so on in the same sequence.

Policy Deployment. Information Flow The movement of information on customer desires backward from the customer to the points where the information is needed to direct each operation see illustrations on p. In companies based on mass production principles, the flow of information usually takes parallel forms: Forecasts flowing back from company to company and facility to facility; schedules flowing back from company to company and facility to facility; daily or weekly or hourly shipping orders telling each facility what to ship on the next shipment; and expedited information countermanding forecasts, schedules, and shipping orders to adjust the production system to changing conditions.

Companies applying Lean Thinking try to simplify information flows by establishing a single scheduling point for production and instituting pull loops of information. These go upstream to the previous production point and from that point to the previous point—all the way to the earliest production point.

The illustrations on p. Note that lean producers still provide forecasts, because firms and facilities further from the customer need advance notice to plan capacity, schedule their workforce, calculate takt time, adjust for seasonal variations, introduce new models, and so forth.

However, the day-to-day flow of production information can be compressed from schedules, shipping releases, and expediting to simple pull loops. Information flows are shown in blue. Map symbols on information flow are explained in Appendix A. Lean producers assign quality assurance to operators and mistake- proofing devices within the production process in order to detect problems at the source. Rather than passing defects to subsequent processes for detection and rectification, the process is stopped to determine the cause and to take corrective action.

Error-Proofing, Jidoka. Inventory Materials and information present along a value stream between processing steps. Physical inventories usually are categorized by position in the value stream and by purpose. Raw materials, work-in-process, and finished goods are terms used to describe the position of the inventory within the production process.

Buffer stocks, safety stocks, and shipping stocks are terms used to describe the purpose of the inventory. Since inventory always has both a position and a purpose and some inventories have more than one purpose the same items may be, for example, finished goods and buffer stocks. Similarly, the same items may be raw materials and safety stocks. And some items even may be finished goods, buffer stocks, and safety stocks particularly if the value stream between raw materials and finished goods is short.

The size of the buffer and safety inventory levels will depend on the amplitude of the variations in downstream demand creating the need for buffer stock and the capability of the upstream process creating the need for safety stock. Good lean practice is to determine the inventory for a process and to continually reduce it when possible, but only after reducing downstream variability and increasing upstream capability.

Lowering inventory without addressing variability or capability will only disappoint the customer as the process fails to deliver needed products on time. To avoid confusion, it is important to define each type of inventory carefully. Buffer Stock Goods held, usually at the downstream end of a facility or process, to protect the customer from starvation in the event of an abrupt increase in short-term demand that exceeds short-term production capacity.

The terms buffer and safety stock often are used interchangeably, which creates confusion. There is an important difference between the two, which can be summarized as: Buffer stock protects your customer from you the producer in the event of an abrupt demand change; safety stock protects you from incapability in your upstream processes and your suppliers.

Finished Goods Items a facility has completed that await shipment. Raw Materials Goods in a facility that have not yet been processed. Safety Stock Goods held at any point raw materials, WIP, or finished goods to prevent downstream customers from being starved by upstream process capability issues.

Also called emergency stock. Inventories categorized by position in the value stream. These generally are proportional to shipping batch sizes and frequencies. Also called cycle stock. In lean systems, standardized work-in-process is the minimum number of parts including units in machines needed to keep a cell or process flowing smoothly. Inventory Turns A measure of how quickly materials are moving through a facility or through an entire value stream, calculated by dividing some measure of cost of goods by the amount of inventory on hand.

Probably the most common method of calculating inventory turns is to use the annual cost of goods sold before adding overhead for selling and administrative costs as the numerator divided by the average inventories on hand during the year.

Using the cost of goods rather than sales revenues removes one source of variation unrelated to the performance of the production system—fluctuations in selling prices due to market conditions. Using an annual average of inventories rather than an end-of- the-year figure removes another source of variation—an artificial drop in inventories at the end of the year as managers try to show good numbers.

Inventory turns can be calculated for material flows through value streams of any length. For example, a plant performing only assembly may have turns of or more but when the parts plants supplying the assembly plant are added. And if materials are included all the way back to their initial conversion—steel, glass, resins, etc.

Inventory turns are a great measure of a lean transformation if the focus is shifted from the absolute number of turns at each facility or in the entire value stream to the rate of increase in turns. All manufacturing, excluding finished goods at wholesale and retail.

Automotive, excluding finished goods at retail. The U. Government does not gather data on cost of goods sold but rather on total sales. Inventory turns therefore have been calculated by dividing total annual sales by average inventories during the year.

The term also can refer to processes outside of a cell or assembly line that run independently to their own rhythm instead of to customer demand. Such islands typically contain a lot of waste, such as excess inventory. Cell, Value Stream.

Jidoka Providing machines and operators the ability to detect when an abnormal condition has occurred and immediately stop work. This enables operations to build in quality at each process and to separate men and machines for more efficient work.

Jidoka is one of the two pillars of the Toyota Production System along with just-in-time. Jidoka highlights the causes of problems because work stops immediately when a problem first occurs.

This leads to improvements in the processes that build in quality by eliminating the root causes of defects. Manual feed and Watch machine cycle. Self-monitoring machine. Jidoka sometimes is called autonomation, meaning automation with human intelligence. This is because it gives equipment the ability to distinguish good parts from bad autonomously, without being monitored by an operator. This eliminates the need for operators to continuously watch machines and leads in turn to large productivity gains because one operator can handle several machines, often termed multiprocess handling.

The concept of jidoka originated in the early s when Sakichi Toyoda, founder of the Toyota Group, invented a textile loom that stopped automatically when any thread broke. Previously, if a thread broke the loom would churn out mounds of defective fabric, so each machine needed to be watched by an operator. In Japanese, jidoka is a Toyota-created word pronounced exactly the same and written in kanji almost the same as the Japanese word for automation, but with the added connotations of humanistic and creating value.

Jishuken A type of hands-on, learn-by-doing workshop. Jishuken can run in length from one week to several months. Outside of Toyota, jishuken became common in the form of the five-day kaizen workshop. Whatever the length, the goal of any jishuken is to learn by doing and produce an improvement in an area of operations. JIT relies on heijunka as a foundation and is comprised of three operating elements: JIT aims for the total elimination of all waste to achieve the best possible quality, lowest possible cost and use of resources, and the shortest possible production and delivery lead times.

Although simple in principle, JIT demands discipline for effective implementation. Kaikaku Radical, revolutionary improvement of a value stream to quickly create more value with less waste; sometimes called kakushin.

One example would be moving equipment over a weekend so that products formerly fabricated and assembled in batches in isolated process villages are made in single-piece flow in a compact cell. Another example would be quickly switching from stationary to moving assembly for a large product such as a commercial airliner. Also called breakthrough kaizen, in comparison with more gradual, step-by-step kaizen.

Kaizen Continuous improvement of an entire value stream or an individual process to create more value with less waste. System or flow kaizen focusing on the overall value stream. This is kaizen for management. Process kaizen focusing on individual processes. This is kaizen for work teams and team leaders. Value-stream mapping is an excellent tool for identifying an entire value stream and determining where flow and process kaizen are appropriate.

2009 LEX4_ebook[1]

A common example is creating a continuous flow cell within a week. To do this a kaizen team—including staff experts and consultants as well as operators and line managers—analyzes, implements, tests, and standardizes a new cell. Participants first learn continuous flow principles and then go to the gemba to assess actual conditions and plan the cell.

Machines then are moved and the new cell is tested. After improvements, the process is standardized and the kaizen team reports out to senior management. Kanban A kanban is a signaling device that gives authorization and instructions for the production or withdrawal conveyance of items in a pull system.

They often are slips of card stock, sometimes protected in clear vinyl envelopes, stating information such as part name, part number, external supplier or internal supplying process, pack-out quantity, storage address, and consuming process address. A bar code may be printed on the card for tracking or automatic invoicing. Besides cards, kanban can be triangular metal plates, colored balls, electronic signals, or any other device that can convey the needed information while preventing the introduction of erroneous instructions.

Whatever the form, kanban have two functions in a production operation: They instruct processes to make products and they instruct material handlers to move products. The former use is called production kanban or make kanban ; the latter use is termed withdrawal kanban or move kanban.

Production kanban tell an upstream process the type and quantity of products to make for a downstream process. In the simplest situation, a card corresponds to one container of parts, which the upstream process will make for the supermarket ahead of the next downstream process.

In large batch situations—for example, a stamping press with very short cycle times and long changeover times—a signal kanban is used to trigger production when a minimum quantity of containers is reached. Signal kanban often are triangular in shape and thus often also called triangle kanban.

Although a triangle kanban is the standard used in lean manufacturing to schedule a batch production process, it is only one type of signal kanban. Other basic means of controlling batch operations include pattern production and lot making.

However, the actual amount produced each time in the cycle may be unfixed and vary according to customer needs. For example, in an eight-hour cycle, part numbers always are run A through F. The difficulty of your changeovers may dictate this order.

Inventory in the central market is a function of the length of the pattern-replenishment cycle; a one-day cycle implies one day of inventory must be kept in the market, or a one- week cycle means one week of inventory. A lot-making board involves creating a physical kanban for every container of parts in the system see illustration below. As material is consumed from the market, the kanban are periodically detached and brought back to the producing process and displayed on a board that highlights all part numbers and displays an outlined shadow space for each of the kanban cards in the system.

Adapted from Smalley , pp. Trigger point can vary by part. Kanban cards returned from central market indicating product consumed Empty slots. A returned kanban card placed on the board in the shadow space indicates inventory has been consumed in the market; unreturned cards represent inventory still in the market. As predefined trigger points are reached, the production operator knows to begin making product to replenish the material in the market.

A lot-making board allows information to come back to the production process more often, signals what has been taken away, and uses smaller increments than the signal kanban. It also provides a visual representation of inventory consumption and highlights emerging problems in the central market.

However, it may require many kanban cards, and the cards must be brought back in a timely and reliable manner for the batch board to be accurate. Discipline is required on the part of schedulers and supervisors not to build inventory in advance of when needed. Withdrawal kanban authorize the conveyance of parts to a downstream process. They often take two forms: In their original application around Toyota City, cards commonly were used for both purposes.

However, as lean production has spread, supplier kanban for firms at considerable distances have typically taken an electronic form. At a downstream process, an operator removes a withdrawal kanban when using the first item in a container.

This kanban goes in a nearby collection box and is picked up by a material handler. When the material handler returns to the upstream supermarket, the withdrawal kanban is placed on a new container of parts for delivery to the downstream process.

As this container is taken from the supermarket, the production kanban on the container is removed and placed in another collection box. The material handler serving the upstream process returns this kanban to that process, where it signals the need to produce one additional container of parts.

As long as no parts are produced or moved in the absence of a kanban, a true pull system is maintained. There are six rules for using kanban effectively: Customer processes order goods in the precise amounts specified on the kanban.

Supplier processes produce goods in the precise amounts and sequence specified by the kanban. No items are made or moved without a kanban. All parts and materials always have a kanban attached.

Defective parts and incorrect amounts are never sent to the next process. The number of kanban is reduced carefully to lower inventories and reveal problems. Labor Linearity A philosophy for flexibly manning a production process in particular a cell so that the number of operators increases or decreases with production volume. In this way, the amount of human effort required per part produced can be very nearly level linear as volume changes. Capital Linearity.

Practice first-hand observation, or go and see for yourself. Pose probing questions to understand the heart of the issue, e. Use engineering analysis, simulation, or prototypes to predict expected performance. Talk about your observations, models, and hypotheses with peers, mentors, and developers of interfacing subsystems. Test understanding experimentally or otherwise take action to validate learning.

The point of LAMDA is to encourage continuous, substantive learning and deep understanding within the development organization. Adapted from Ward , Prologue xiii. Lean Product and Process Development. Lean consumption calls for streamlining all the actions that must be taken to acquire goods and services so that customers receive exactly what they want, when and where they want it, with minimum time and effort. Companies can streamline consumption by following a six-step thought process, similar to the one for lean manufacturing Adapted from Womack and Jones , p.

Principles of Lean Consumption 1. Provide exactly what the customer wants. Applying the concepts requires producers and providers of goods and services to think about consumption not as an isolated decision to buy a specific product, but as a continuing process—a set of activities linking many goods and services over an extended period in order to solve a problem.

For example, when a consumer buys a home computer, his or her objective is not to own a computer but to solve the problem of accessing, processing, storing, and transferring information.

The act of buying the computer is not a onetime transaction, but a process of researching, obtaining, integrating, maintaining, upgrading, and, finally, disposing of the computer, and quite possibly, following the same process for software, and peripheral devices.

Lean consumption requires a fundamental shift in the way retailers, service providers, manufacturers, and suppliers think about the relationship between provision and consumption, and the role their customers play in these processes.

It also requires collaboration between consumers and providers to minimize total cost and wasted time. Lean Consumption and Lean Provision Maps A consumption map is a simple diagram of all the actions customers must take to acquire given goods and services. A provision map is a similar drawing that shows all the actions producers and service companies must perform to deliver these goods and services to customers see illustrations on pp.

On both the consumption and provision maps, boxes representing individual actions are drawn from left to right in process sequence. Each box is drawn in proportion to the time needed to complete the corresponding action and shaded in proportion to the fraction of value-adding time in each step.

Key information, such as total time, value-added time, and first-time quality, also is collected and summarized in a box score for the total consumption and provision process. Womack and Jones , pp. Book repair 6. Discuss diagnosis, 7. Queue and pay, authorize repairs receive car 1.

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Search 3. Drive for repair to shop facility. Drive home. Queue, discuss problem, leave car. Answer phone 2. Book repair 7.

Pass to Pass to service Pass to 3. Check in technician technician Call customer, service rep. Collect parts 4. Car to storage Invoice Provider. Diagnose Pass to 5.

Fetch loaner problem workshop Fetch car 6. Hand over workshop 9. Check parts car Repair car Car to Park loaner storage Pass to office. Car Repair After Lean Processes. Book repair 2. Discuss 6. Receive car problem 3. Drive to facility 7. Drive home 4. Hand over car 69 min. Consumer Before After lean lean 5 min. Discuss 4. Fetch loaner 9. Deliver parts Hand over car min.

Receive car Collect car Park loaner 3. Order parts 6. Confirm Provider. Park car Repair car 8. Update plan min. Road test. As soon as this task is completed, the cooperating firms must analyze the results and start the process again through the life of the product family. Womack and Jones , p. A method for performing the needed analysis is described in Womack and Jones Lean Logistics A pull system with frequent, small-lot replenishment established between each of the firms and facilities along a value stream.

The adoption of lean logistics would involve installation of a pull signal from the retailer, as small amounts of goods are sold, to instruct the manufacturer to replenish exactly the amount sold.

The manufacturer would in turn instruct its suppliers to replenish quickly the exact amount sent to the retailer, and so on all the way up the value stream. Lean logistics requires some type of pull signal EDI, kanban, web- based, etc. Cross-Dock, Heijunka. Lean Product and Process Development A business system focused on eliminating waste in product and process development by generating and applying useable knowledge.

It is centered on four core concepts: Grow teams of responsible experts: These units develop useable knowledge about their respective areas of expertise, and grow people who can apply that knowledge, generate new knowledge, and communicate that knowledge effectively to multidisciplinary team members.

Useable Knowledge. Support entrepreneur system designers: Give leadership of development projects to technically capable and visionary people who have an entrepreneurial spirit. They provide integrative knowledge to leverage the knowledge of the expert teams in innovating new products and production processes. Chief Engineer. Follow set-based concurrent engineering practices:

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