GDC Total Business Solutions - Lean Conversion Terms

A
Abnormality Management	The ability to see and respond to an abnormality (any violation of standard operations) in a timely manner. This is the responsibility of all employees and owners of the company. We call this management by majority.
Activity Based Management	Activity Based Management - A system for calculating the cost of products based on apportioning non-touch labor costs to specific products which is then based on the level of “support” activities required. (Instead of placing all support activities into Overhead pools and then apportioning the costs based on direct labor of each product). “Support” activities are cost based on repetition of specific “activity” categories. Costs for those activities are pooled and then divided by the number of activities performed in a given period of time. Developed in the late 1980’s by Robert Kaplan and Robin Cooper of Harvard.
Analytical Approach	1) An approach to management improvement. 2) It is an approach based on learning from the evaluation and analysis of past experience.
Andon	Japanese term for a signal. A system of flashing lights is typically used to indicate that some aspect of the process needs attention in one or more work centers. They can reflect potential quality problems identified by an operator or the need for materials replenishment; the number of lights and their possible colors can vary, even by work center within a plant; however, the primary colors and their meanings are: Green - no problems Yellow - situation requires attention Red - production stopped; attention urgently needed
Andon Board	A visual control device in a production area, typically a lighted overhead display, giving the current status of the production system and alerting team members to emerging problems.
Automatic Parts Ejection	(See Handeshi)
Autonomation	(English translation of Jidoka) Sakichi Toyoda initially developed this technique in 1902 when he invented a loom that would stop automatically if any of the threads snapped. This breakthrough allowed one worker to monitor 12 instead of 1 machine. The idea behind Autonomation is to separate man from machine so that man can perform higher value added work by providing machines and operators the ability to detect when an abnormal condition has occurred and immediately stop work. This enables operations to build-in quality at each process and to separate person and machines for more efficient work. (See: Jidoka, Flexible Manning)
B
Back to Zero	This is a Business Paradigm which simply means that when a radical improvement is introduced into a product or service, all the market advantages that once belonged to leaders in that niche disappear. Most cited example was the Swiss watch market domination that disappeared with the invention (by the Swiss) and subsequent production of quartz movement watches by U.S. and Japanese companies.
Backflush	A calculation performed by MRPII which: Subtracts from the on hand inventory all components, sub-components, sub assemblies the quantities consumed in the assembly or manufacture of a product. Increases the inventory of the finished product. Decrements from the on-order quantity the number of finished products completed. Calculation is triggered by manual intervention once a product is completed.
Baka-Yoke	A manufacturing technique of preventing mistakes by designing the manufacturing process, equipment, and tools so that an operation literally cannot be performed incorrectly; an attempt to perform incorrectly, as well as being prevented, is usually met with a warning signal of some sort; the term "mistake proofing" is sometimes referred to as a system where only a warning is provided. (see poka-yoke, mistake proofing, error proofing)
Balanced Plant	A plant where capacity of all available resources are balanced exactly with market demand. This is believed to only be achievable by companies able to sustain lean principles for a period of time; in most cases it take three years to clarify sustainment.
Balanced Production	1) All operations and/or cells are producing at the same cycle time. 2) In a balanced production system, the cell cycle time is less than takt time.
Baseline Assessment	A process for taking a snapshot of the current operating position of a plant. Included in the analysis are metric performance data, demand segmentation, cost analysis, organization structure, flow charts, value added analysis, work sampling results, customer feedback and quality results. This process is intended to document the need for change and focus site leadership on key opportunities.
Batch-and-Queue	Producing more than one piece of an item and then moving those items forward to the next operation before that are all actually needed there. Thus, items need to wait in a queue. (opposite of "one piece flow")
Batch Manufacturing	A production strategy that is commonly employed in "job-shops" and other instances where there is discrete manufacturing of a non-repetitive nature. In batch manufacturing, order lots (based on aggregated demand) are maintained throughout the production process to minimize changeovers and achieve economies of scale. In batch manufacturing environments, resources are usually departmentalized by specialty and very seldom dedicated to any particular product family.
Batch Size	This is the number of pieces or units that are aggregated into a group for processing. Batch size is based on either economical order quantity or the product family turnover rate (capacity limited).
Benchmarking	The process of measuring products, services, and practices against those of leading companies. To focus on best practices and methods of world class leaders, regardless of industry, and use the information to improve its own performance.
Best-in-Class	A best-known example of performance in a particular operation. One needs to define both the class and the operation to avoid using the term loosely.
Bill of Materials	A hierarchical, usually documented representation of all components, parts and sub-assemblies that go into a final assembled product. The BOM contains required quantities of each component and drawing revision letter for each component.
Bird Cage	1) A grouping of machines with similar functions utilizing only one operator at all times. 2) Highly used in job shops where the operator is enclosed on all sides (like a bird cage) to complete the entire production process them self. 3) Unlike cells where the number of machines are fixed but the number of operators will vary based on customer demand (Takt-Time). Bird Cage is generally a fixed number of machines and only one operator is assigned at all times. If demand increases on-time performance suffers unless there is excess capacity in the first place or if other alternative cells are available.
Blitz	Also known as an impact event, this is a quick and focused process for improving some component of business a product line, a machine, or a process. It ideally utilizes a cross-functional team of employees for a problem-solving exercise, where they focus on designing solutions. For a Kaizen blitz to be effective the following guidelines should be adhered to: Keep it 3 to 5 days in length (there must be a start and a finish date), small in scope (if the problem seems too big the team will go off into to many other directions), no more then 5 people (4 attendees should be knowledgeable about the component of the business to improve, and the 5th person who is not familiar with the process should be the facilitator. The facilitator’s role is to keep the knowledgeable people on course and to ask why we do the things we do; "5 Whys").
Bottleneck	1) Any resource whose capacity is equal to, or less than the demand placed on it. 2) The machine, operation, activity, or a group of linked operations with the lowest effective capacity. See Constraint.
Brain Storming	Brainstorming is a group technique for generating new, useful ideas and promoting creative thinking. It can be used to help 1) define what project or problem to work on, 2) to diagnose problems , 3) remediate a project by coming up with possible solutions and to identify possible resistance to proposed solutions.
Bread man	Supplier replenishment system that ensures material availability on demand while minimizing inventory required. Most effectively used as part of a point-of-use replenishment application, i.e. a “bread man” replenishes bread to supermarket shelves on a regular schedule, placing new bread on shelf space emptied up by customer demand. Also see “Water Spider”.
C
Capacity Constraint Resources	Where a series of non-bottlenecks, based on the sequence in which they perform their jobs, can act as a constraint. [Abbreviation: CCR] . In most cases; a shop that is set up by departments can act as a CCR just because of their locations within the plant.
Capacity Requirements Planning	A module of MRPII that calculates the workload for specific machines (or machine codes, work centers) based on current, projected and forecasted demand. Load is usually based on a % of available hours used. For cell-based plants, the capacity can be figured using the capacity bottleneck for each cell. This greatly simplifies calculation. In addition, CRP may be used to calculate the number of workers needed to staff a plant or cell. See MRP II
Capital	The sum total of the money invested in fixed assets use for the production of goods or services.
Catch-Ball	A series of discussions between managers and their employees during which data, ideas, and analysis are thrown back and forth like a ball. This opens productive dialogue throughout the entire company.
Cause-and-Effect Diagram	Also referred to as a "Fishbone" (after its shape), or "Ishikawa" diagram (after its inventor, Kaoru Ishikawa). The diagram illustrates the main causes and sub-causes leading to an effect (the symptom of unwanted condition). It is one of the Basic Seven Tools of Quality.
Cell	The layout of machines of different types and/or workstations performing different operations in a tight sequence that are physically and geographically linked, typically in a U-shaped configuration, which makes parts, products or all parts in a product family in single-piece flow and takes advantage of the flexible deployment of human effort by means of Multi-Machine Working. Cells are contrasted with Functional layout and characterized by: Consistency of Products run Consistency of Staffing Physical Proximity Physical Linking (where possible) Customer Focus (where appropriate)
Cellular Manufacturing	1) An approach in which manufacturing work centers [cells] have the total capabilities needed to produce an item or group of similar items; contrasted with the need to set up work centers on the basis of similar equipment or capabilities, in which case, items must move amongst multiple work centers before they are completed; the term group technology is sometimes used to distinguish cells that produce a relatively large family [group] of similar items. 2) An alignment of machines in correct process sequence, where operators remain within the cell and materials are presented to them from outside the cell.
Chaku-Chaku	Meaning load-load in Japanese, this describes a work cell where machines off-load parts automatically so that operators can take a piece directly from one machine to the next without waiting. [See: Load-Load]
Change Agent	1) A highly motivated person whose demonstrated mission is to move from the now (current) state, to the future state which is not to be mistaken for the ideal state. 2) One who leads cultural change in an organization. 3) The catalytic force moving firms and value streams out of the world of inward-looking, batch-and-queue to flexible, customer focused organizations.
Changeover	The installation of a new type of tool in a metal working machine, a different paint in a painting system, a new plastic resin and a new mold in an injection molding machine, new software in a computer, and so on. The term applies whenever a production device is assigned to perform a different operation. (See SMED)
Check List (Sheet)	A tool used to ensure that all important steps or actions in an operation have been taken. One of the Basic Seven Tools of Quality.
Check Points and Control Points	Used in measuring the progress of improvement-related activities between different managerial levels. Check points represent process-oriented criteria. Control points represent result-oriented criteria. What is the check point to a manager becomes a control point to the next-level manager. For this reason, check points and control points are also used in policy deployment.
Check Sheet	A simple data-recording device, custom-made by the user, which allows results to be readily interpreted. Not to be confused with a Checklist (see above.)
Commodity	A physical material or substance, such as food, grains, and metals, which is interchangeable with another product of the same type. Commodities are purchased for internal consumption or internal use in the service and/or manufacturing of the product. The price of the commodity is subject to supply and demand.
Common Cause	In statistical quality control, the causes of variation inherent in a process over time.
Company Culture	The informal or formal way work is done, based on the values, beliefs, way of thinking, behaviors, attitudes, management structure, legacy systems, myths and stories in the organization. Over time, leaders shape the culture. (See KaizenCulture.)
Conflict Resolution	The resolution of a clash between hostile or opposing elements/ideas.
Constant Work in Process (ConWIP)	1) A signaling device that gives instruction for production or conveyance of items in a pull system. This particular system is best suited for job shop environments where there may be a large number of part, processes, and/or machinery (Functional layout). 2) A communication tool in the "just-in-time" production and inventory control system which authorizes production or movement. The number of circulating or available ConWIP cards for a particular department is determined by the number of machines available as well as the number of personal available. This number generally is established and remains unchanged until improvements are made and maintained for a period of time; in this way inventory is kept under control while production is forced to keep pace with shipment volume. A routine exception to this rule is that managers and workers are continually exhorted to improve their processes and thereby reduce the number of ConWIP cards required.
Constraint	1) Anything that limits a system from achieving higher performance, or throughput. 2) Alternate: That bottleneck which most severely limit the organization's ability to achieve higher performance relative its purpose/goal.
Continuous Flow Production	Items are produced and moved from one processing step to the next step one piece or unit at a time. Each process makes only the one piece/unit that the next process needs, and the transfer batch size is one. Also called "single-piece flow" or "one-piece flow."
Continuous Improvement	The commitment to creating a better product, work environment and business, every day.
Continuous Improvement Firm (CIF)	A firm continuously improving on the value that customers perceive in its products due to improvements in productivity initiated by the members of the general work force. Productivity in CIF is broadly defined to include all facets of product quality as well as output per worker. A basic operating principle of the CIF is that improvements in product quality often produce simultaneous reductions in costs. The ultimate competitive goal of the CIF is the ability to produce consumer goods on a custom basis for almost instantaneous delivery at costs lower than those featured by standard mass production firms. The flexible CIF ideally produces to customer demand. The key to achieving this flexibility and lower unit cost lies in generalization of the work force.
Continuous Manufacturing	A production process that is characterized by the flow of products through the process. Transformation of the product happens continuously as the product is transported through the process. Oil refining is an example of continuous manufacturing. Oil flows through pipes and reactors and is refined as it flows. See Cellular, Discrete and Flow Manufacturing.
Control Chart	A chart with upper and lower control limits within which a machine or process is "in control". Frequently a centerline, midway between the two limits, helps detect trends toward one or the other. Plotting critical measurements on the chart shows when a machine or process has gone "out of control" and must be adjusted. One of the Basic Seven Tools of Quality.
Core Process	The process in a manufacturing or service organization that produces the goods or services for external customers on which the organization depends for its survival.
Covariance	The impact of one variable upon others in the same group.
Cross-Functional Management	The inter-departmental coordination required to realize the strategic and policy goals of a Kaizen and Total Quality Control (TQC) program. After corporate strategy and planning are determined, top management sets objectives for cross-functional efforts that cut laterally throughout the organization. Cross functional management is the major organizational tool for realizing TQC improvement goals. Its critical importance lies in its intensive focus on the follow-through to achieve the success of goals and measures.
Current State Map	A map that helps organizations visualize the current production process and identify sources of waste. If done correctly the Current State Map will help in organizing lean implementation plans.
Customer, External	An end-user who pays for the product or service delivered by a company, thus generating revenue for the company. Note: the goal of world-class companies is to "continually delight" this customer, thus creating "an increasing affection" for its products and services. There may be several external customers, all of whom must be considered by the supplier.
Customer, Internal	The recipient (person, process, or department) of another person's or department's output (product, service or information) within an organization.
Customer-Supplier Partnership	A long-term relationship between a buyer and supplier characterized by teamwork, mutual confidence, and common goals regarding customer satisfaction. The supplier is considered an extension of the buyer's organization, based on several commitments. The buyer provides long-term contracts and uses fewer suppliers. The supplier implements quality assurance processes to limit or eliminate incoming inspection by the buyer. The supplier also helps the buyer reduce costs and improve product and process designs.
Cycle Time	The normal amount of (clock) time for a product or service to travel through a process to complete an operation. This in NOT the same as takt time, which is the available time to produce one product at the rate customers are demanding it. If cycle time for every operation in a complete process can be improved to equal or be less than takt time, (theoretically) products can be made in Single-Piece Flow. Cell cycle time is the time it takes for a part to complete one cycle from raw to finish good.
D
Data	Bits of information which, when aggregated and analyzed, result in information leading to change and improvement. Data may be quantitative or qualitative. Data are distinguished from individual opinions, past experiences, biases, and "gut feel".
Deming Cycle	The concept of a continuously rotating wheel used by W. E. Deming to emphasize the necessity of constant interaction among research, design, production, and sales so as to arrive at an improved quality that satisfies customers. Credited by Edward Deming to Walter Steward of Western Electric (who may have gotten it from John Dewey), the cycle is a concept of how thinking must proceed to create continuous improvement. The most common form of the cycle consists of four elements — Plan, Do, Check, and Act. Dr. Deming (before his death, re-termed them — Plan, Do, Investigate, and Adjust. (See PDCA.)
Dependent Events	Events that occur only after a previous event.
Deployment Teams	Groups of people responsible for deploying Lean Enterprise. The group at the top is the “Steering Committee”; the group that does the analysis for improvement planning is the “Baseline Team” and the implementation teams are “Design Teams”.
Design Approach	Another approach to management improvement. Tries to build a better approach through predetermined goals.
Design for Manufacturability	A process for tailoring a product’s design to a specific manufacturing process. Characteristics considered, among others: manufacturing process capability optimum assembly sequence optimum assembly process / geometry commonality of parts simplification of fasteners simplified testing methods for point of manufacture verification
Discrete Manufacturing	A process for making product that is made up of several disconnected steps (i.e. the connection is based on routing or use of transport mechanisms). Transformation of the product takes place in “steps”. The steps are usually based on machines, operations or stations in the manufacturing process.
E
Economical Order Quantity (EOQ)	The optimum number of parts to be run within one batch based on a tradeoff of the inventory carrying cost and the cost associated with a product changeover. See SMED
Economies of Scale	The idea that by maximizing volume, costs are minimized. Procuring the maximum sized equipment and then running that equipment around the clock produce economies. Economies of scale create batch manufacturing when the number of product types to be run across a specific piece of equipment exceeds one. The concept of economical order quantity (EOQ) based on set-up costs grew out of the use of large-scale equipment.
Eighty-Twenty Rule	Refers to the Pareto principle, which suggests that most effects stem from relatively few causes; that is, eighty percent of the effects come from twenty percent of the causes. (See Pareto Chart.)
Elemental Time	Time allotted to a specific operational step, within standard work.
Employee Involvement	A practice within an organization whereby employees regularly participate in making decisions on how their work areas operate, including making suggestions for improvements, planning, goal setting and monitoring performance.
Empowerment	A condition in which employees have the authority to make decisions and take action in their work areas without prior approval. For example, an operator can stop a production process if he or she detects a problem, or a customer service representative can send out a replacement if a customer calls with a complaint.
Enterprise Resource Planning (ERP)	The combination of Manufacturing Resource Planning (MRPII) techniques with accounting information into a single database and data structure. The intent of ERP is to automate purchasing, inventory, production, accounting, shipping, receiving, billing and invoicing into a single seamless database.
Ergonomics	The application of scientific principles to the process of work: aimed at making work easier and less physically stressful.
Error Proofing	A manufacturing technique of preventing production errors by designing the manufacturing process, equipment, and tools so that an operation literally cannot be performed incorrectly (See poka-yoke, baka-yoke, or mistake proofing)
Evaporating Clouds	A problem of method used in Theory of Constraints. Same as Conflict Resolution.
External Setup (OED)	Elements or tasks associated with a changeover that can be performed safely while the machine or operation is still running. Also known as OED - "outer exchange of die" [See: Single Minute Exchange of Die (SMED), Internal Setup]
F
Finished Goods Inventory (FGI)	Material that has completed the production process and is ready for customer consumption but is waiting for an order.
Five S (5S)	Five terms beginning with "S" utilized to create a workplace suited for visual control and lean production. Refers to the following five words: seiri, seiton, seison, seiketsu, shitsuke. These words are shorthand expressions for principles of maintaining an effective, efficient workplace. 5S is the first step in developing a sustainable process and is frequently used to introduce Total Productive Maintenance (TPM) into an organization. There are many American interpretations of these words but for this definition we will use the following: Sort, Straighten, Shine, Standardize, and Sustain. seiri - eliminating everything not required for the work being performed. (Sort) Sort means to separate needed tools, parts, and instructions from unneeded materials and to remove the latter. Other terms used: Sort, Separate, Scrap seiton - efficient placement and arrangement of equipment and material (Store) Straighten means to neatly arrange and identify parts and tools for ease of use. Other terms used: Straighten, set in order, store, store in order. seison - tidiness and cleanliness (Shine) Shine means to conduct a cleanup campaign. Other terms used: Shine, Scrub, Sweep seiketsu - ongoing, standardized, continually improving seiri, seiton, seison (Standardize) Standardize means to conduct Sort, Simplify, and Scrub at frequent, indeed daily, intervals to maintain a workplace in perfect condition. Other terms used: Standardize, Spread, shitsuke - discipline with leadership (Sustainment) Sustain means to form the habit of always following the first four Ss. Other terms used: Sustain, Systematize, Self-discipline 5S (Like many concepts, the 5S can be interpreted narrowly or broadly, depending on circumstances of their use.)
Five Whys (5 Whys)	Taiichi Ohno’s practice of asking "why" five times in order to uncover the root cause of a problem so that effective countermeasures can be developed and implemented. A simple technique, used to reveal the 'root cause' (as opposed to symptoms) of a problem. The technique asks 'why' the symptom occurred, 'why' did the situation which allowed the symptom; exists, and so on, until the root cause is finally discovered.
Flexible Manning (Shojinka)	A way of managing person-power on the line such that when demand decreases, workers can be re-deployed to areas where needed, or when demand increases, they can be deployed to areas requiring additional support. Preferred to the system of maximizing machine efficiency, which pays no attention to customer demand and TAKT time. This is not a very critical concept in cellular flow
Flexible Manufacturing System (FMS)	an integrated manufacturing capability to produce small numbers of a great variety of items at low unit cost; an FMS is also characterized by low changeover time and rapid response time.
Flexible Work Cell	A group of machines or processes (work cell) whose capacity is dictated by the staffing level of the cell. If requirements increase, increasing the number of workers will allow increased output; if requirements decrease, decreasing the number of workers will allow the cell to meet the requirements with no loss in efficiency.
Flow	A main objective of the lean production effort, and one of the important concepts that passed directly from Henry Ford to Toyota. Ford recognized that, ideally, production should flow continuously all the way from raw material to the customer.
Flow Kaizen	Radical Improvement, usually applied only once within a value stream. [Same as Kaikaku]
Flow manufacturing:	The application of the idea of “flow” to discrete manufacturing. Flow manufacturing attempts to mimic continuous manufacturing by combining a mixed stream of products, pulled through the process at a rate equal to daily customer demand (takt) requirements. Flow manufacturing concepts are typically associated with repetitive manufacturing of discrete products.
Ford, Henry	Recognized as the father of “mass” production, Henry Ford applied the principles of the assembly line, division of labor and waste reduction to the manufacture of automobiles. Ford Motor Company became the largest manufacturing company in the world in 15 short years.
Full Work Analysis	The process of analyzing all activities associated with the production of a part, component or unit. Worker activity, machine activity and part activity are all analyzed using observation, stop watches and / or video.
Functional Layout:	The practice of grouping machines or activities by type of operation performed. For example, grinding machines or order-entry. Contrast with Cells
Future State Map:	A blueprint for lean implementation. Your organization¹s vision, which forms the basis of your implementation plan by helping to design how the process should operate.
G
Gage Repeatability & Reproducibility (GR&R)	An analysis method to determine the error introduced in the measuring process by: the gage itself, operators and environmental changes. The components of the study are: Accuracy: how close the measurement is to the NIST standard. Repeatability: what is the variation introduced when a single operator repeatedly checks a part. Reproducibility: what is the variation introduced by the addition of other operators into the measurement process Stability: what is the variation introduced by changes in environmental conditions over time. Linearity: whether the gage linear over its operating range.
Gannt (Gantt) Chart	A type of project management tool that displays the time sequence and duration of specific elements of the Work Breakdown Structure. Therefore, this chart displays the status of each element of planned work (% complete) and finished work in relation to time and sequence.
Gemba (Genba)	A Japanese word that literally means "the Real Place". Used in the context of KAIZEN, Gemba usually refers to the shop floor or to the place where the value added (and non value added!) work or activity is taking place. In a broader sense, Gemba refers to any place in a company where work is being performed; thus one may have an engineering gemba, a sales gemba, an accounting gemba, etc.
Global Production System	An expansion of the Toyota Production System, this is a strategy to enable lean manufacturing using Kaizen methodology.
Goals, Super-Ordinate	The three goals of Quality, Cost and Delivery that are key to customer satisfaction. Customers require all three - high quality, low cost, and on-time delivery. All three go to make up the customer's appraisal of value.
Group-Wide Quality Control (GWQC)	A system of continuing interaction among all elements, including suppliers, responsible for achieving the continuously improving quality of products and services that satisfies customer demand.
H
Hanedashi	A device or means for automatic removal of work piece from one operation or process that then provides for the proper state and orientation for the next operation or process. In manufacturing, a means for automatic unloading and orientation for the next operation so the operator can simply insert the new work, thus reducing his/her cycle time; generally a very simple device. Crucial for a “Chaku-Chaku” line.
Heijunka	A production scheduling / load leveling method of distributing customer orders or kanban for a specific cell so that the load on the cell is constant over time even though the workload associated with different parts made in that cell may not be the same. This is a load smoothing mechanism that involves averaging both the volume and sequence of different model types on a mixed-model production line in order to make Just-In-Time production possible. See Mixed Model Production.
Hison Planning	Policy management or Strategy deployment. A method for establishing goals (and policy which supports and enhances those goals) and ensuring that these goals are the primary focus of the organization.
Histogram	A graphic summary of variation in a set of data. The visual nature of the histogram reveals patterns that are difficult to see in a table of numbers. The histogram is one of the Basic Seven Tools of Quality.
Hoshin Kanri	The Japanese word for policy deployment. In Japanese, Hoshin means “shining metal”, “compass” or “pointing in the direction”. Kanri means “control”. Hoshin Kanri is a method devised to capture and concertize strategic goals as well as flashes of insight about the future and develop the means to bring these into reality. It is one of the major systems that make World Class Quality / Management possible. It helps control the direction of the company by orchestrating change within a company. The system includes tools for continuous improvement, breakthroughs, and implementation. The key to hoshin planning is that it brings the total organization into the strategic planning process; both top down and bottom up. It ensures that the direction, goals, and objectives of the company are rationally developed, well defined, clearly communicated, monitored, and adapted based on system feedback. It provides focus for the organization.
Hoshin Planning (HP)	Also known as "Management by Policy" or, alternatively, "Strategy Deployment". A means by which goals are established and measures are created to ensure progress toward those goals. HP keeps activities at all levels of a company aligned with its overarching strategic plans. Hoshin Planning typically begins with the "visioning process," which addresses the key questions: Where do you want to be in the future? How do you want to get there? When do you want to achieve your goal? And Who will be involved in achieving the goals? HP then systematically explodes the whats, whens, whos and hows throughout the entire organization.
I
Improvement	As a part of a successful Kaizen strategy, "improvement" goes beyond the dictionary definition of the word. Improvement is a mindset of maintaining and improving standards. In a still broader sense, improvement can be defined as Kaizen and Innovation, where a Kaizen strategy maintains and improves working standards through small, gradual improvements, and innovation calls for radical improvements as a result of large investments in technology, processes, and/or equipment. The Kaizen strategy clearly delineates responsibilities: workers are to maintain standards, and managers are to improve standards. The Japanese perception of management boils down to one precept: maintain and improve standards.
Indirect Worker	A person who is involved in the manufacture of product but does not directly participate in the transformation of that product. Indirect workers may either be doing physical work (receiving, shipping, moving, etc.) or may be doing knowledge work (supervising, scheduling, engineering, etc.).
Information Management Task	The task of taking a specific product from order-taking through detailed scheduling to delivery. [See Value Stream]
Informative Inspection	A form of inspection used to determine non-conforming product. [See Inspection or Judgment Inspection]
Inspection	Comparing product, or component against specifications to determine if such product or component meets requirements. [See Judgment Inspection or Informative Inspection]
Internal Setup (IED)	Tasks associated with switching a process from one product to another that can only be performed with the process stopped. Also known as IED - "inner exchange of die" [See: Single Minute Exchange of Die (SMED), External Setup]
Inventory	All goods, which have been or are going to be worked on to produce products for customer consumption. There are 3 basic categories of inventory: Raw: material sent by suppliers but not yet worked on by internal personnel/processes. Work In Process: raw material which has had some value added (it has been through some transformational steps). Finished Goods: final product(s) completed and on the shelf, waiting customer orders. Inventory = Throughput Rate x Cycle Time (Little’s Law)
Inventory Turns	A measure of the capital efficiency of an operation. One turn is equal to the complete consumption and replenishment of the inventory in question. The number of inventory turns is usually based on a calendar year and is a commonly used indicator for the lean-ness of an organization. Inventory Turns = 365 / Inventory Days of Supply or = 365 / Inventory $/ Daily Sales $ or = Throughput Rate / Inventory
ISO 9000 Series Standards	A set international standards on quality management and quality assurance developed to help companies effectively document required quality system elements. The standards are not specific to any particular industry, product, or service. They were developed by the International Organization for Standardization (ISO), an agency composed of the national standards bodies of ninety-one countries.
J
Jidohka	A form of automation in which machinery automatically inspects each item after producing it, ceasing production and notifying humans if a defect is detected; Toyota expands the meaning of jidoka to include the responsibility of all workers to function similarly, i.e. to check every item produced and to make no more if a defect is detected, until the cause of the defect has been identified and corrected. [See: Kaizen]
Jishu Kanri	Self-management, or voluntary participation.
Judgment Inspection	A form of inspection used to determine non-conforming product. [See: Inspection or Informative Inspection]
Just-In-Time (JIT)	A manufacturing philosophy that seeks to make exactly what is needed, when it is needed in the current quantity with no waste. The groundwork for JIT was based on work by Kiichiro Toyoda who studied Henry Ford’s methods and tried to adapt them to small lot production. Principles that are fundamental to Time-Based Competition are waste elimination, process simplification, set-up and batch-size reduction, parallel processing, and layout redesign, and are critical skills in every facet of the lean organization. The key elements/concepts of JIT are Flow, Pull, Standard Work, and Takt. A production scheduling concept that calls for any item needed at a production operation - whether raw material, finished item, or anything in between, to be produced and available precisely when needed, neither a moment earlier nor later. A system of managing production processes that result in line- balancing, one-piece flow, little or no excess material inventory on hand at the plant site and little or no incoming inspection. This system was developed at Toyota under the leadership of Taiichi Ohno and is sometimes referred to as "The Toyota Production System".
Jutsu	The art of something (i.e., 'leanjutsu: the art of lean production').
K
Kaikaku	Innovative, degree(s) of magnitude leaps in improvement, technology or process and system changes, sometimes used as a precursor to Kaizen activities, usually applied only once within a business process, that affects the entire value stream.
Kaizen	A combination of two Japanese words Kai (change) and Zen (good). Usually defined as "continuous improvement." The philosophy of continual improvement, that every process can and should be continually evaluated and improved in terms of time required, resources used, resultant quality, and other aspects relevant to the process. When applied to the workplace, Kaizen means continuing improvement involving everyone - managers and workers alike. Kaizen is not limited to manufacturing systems only. It also means continuing improvement in personal life, home life, social life, and working life.
Kaizen Breakthrough	A time-sensitive, rapid-deployment methodology that employs a focused, team-based approach. Continuous improvement.
Kaizen Culture	An organizational culture based on the three super ordinate principles - Process and Results, Systemic Thinking, and Non-judgmental, Non-Blaming.
Kaizen Strategy	A business strategy that begins with the customers' needs concerning Quality, Cost, and Delivery, is founded on a people-oriented culture, is supported by an involved leadership, and consists of three integrated core elements — Principles and Concepts; Systems; and Tools.
Kanban	A communication tool in the "just-in-time" production and inventory control system which authorizes production or movement. It was developed by Taiichi Ohno at Toyota. Kanban is a card or signboard (or any other authorizing device) that is attached to specific parts in the production line signifying the delivery of a given quantity. The quantity authorized per individual kanban is minimal, ideally one. The number of circulating or available kanban for an item is determined by the demand rate for the item and the time required to produce or acquire more. This number generally is established and remains unchanged unless demand or other circumstances are altered dramatically; in this way inventory is kept under control while production is forced to keep pace with shipment volume. A routine exception to this rule is that managers and workers are continually exhorted to improve their processes and thereby reduce the number of kanban required. When fully implemented, kanban (the plural is the same as the singular) operates according to the following rules: All production and movement of parts and material take place only as required by a downstream operation, i.e. all manufacturing and procurement are ultimately driven by the requirements of final assembly or the equivalent. The specific tool which authorizes production or movement is called a kanban. The word literally means card or sign, but it can legitimately refer to a container or other authorizing device. Kanban have various formats and content as appropriate The quantity authorized per individual kanban is minimal, ideally one. The number of circulating or available kanban for an item is determined by the demand rate for the item and the time required to produce or acquire more. This number generally
Karoshi -	Death from overwork.
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Lead Time (Manufacturing)	The time to manufacture and deliver a product or service. This term is used in many (often contradictory) contexts. To avoid confusion, lead time is defined as the average total elapse time for execution of the product delivery process from order receipt to delivery to the customer, under normal operating conditions. In industries that operate in a build-to-order environment, lead times flex based on the influences of seasonal demand loads. In environments where production is scheduled in repeating, fixed-time segments or cycles, the lead time is usually determined by the length of the production cycle (i.e., days, weeks, months, etc.). In service industries, lead time represents the total time elapsed from when a customer expresses a need to when that need is satisfied.
Lead Time (Total)	The total time a customer must wait to receive a product after placing an order. When a scheduling and production system is running at or below capacity, lead time and throughput time are the same. When demand exceeds the capacity of a system, there is additional waiting time before the start of scheduling and production, and lead time exceeds throughput time.
Leadership	An essential part of the quality improvement effort. Organizational leaders must shape the culture and establish a vision, communicate that vision to the people and provide the systems, tools, and skills necessary to accomplish it.
Lean	The concept of creating processes which are highly responsive and flexible to customer demand requirements. Successful lean implementation is evident when processes are capable of consistently delivering the highest quality products and services, at the right location, at the right time, in response to customer demand and doing this in the most effective and efficient manner possible. The central tenant of Lean is the elimination of waste.
Lean Conversion	Business processes requiring less human effort, capital investment, floor space, materials, and time in all aspects of operation. (See Lean manufacturing)
Lean Enterprise	All aspects of an organization, from the beginning of the supply chain, through the production process, and including your customer base. As you 'lean' your organization, you will find that certain constraints exist outside of your company.