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GL OSSA RY OF TER MS
This Glossary contains terms commonly referenced by Lean
Practitioners, including Kaufman Global's proprietary best practice
terminology. By no means complete, it is regularly evolving. Examples,
comments, and expanded explanations have been included for many of
the terms listed to enhance overall understanding.
Terms listed may have several variations and alternate meanings. We
invite readers to suggest improved definitions. To submit a
recommendation, click here.
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| P | Q | R | S | T | U | V | W | X | Y | Z

100% Inspection

– Lean emphasizes “zero defects” by preventing errors or problems from

becoming defects in the product. The term "100% inspection" in Lean refers
to more than having an operator conduct an inspection after each operation.
Implementing 100% inspection means deploying preventive and detective
devices and techniques to achieve the same results as 100% inspection, that
is 100% effective. The objective is to strive for a... Read more ›

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20 Keys®

– See Lean Daily Management System®

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3

3 Drivers of Customer Satisfaction

– The three drivers of customer satisfaction are quality, cost and delivery.

3 General Principles of Kaizen

– The key to successful Kaizen is going to the shop floor, working with the
actual product, and getting the facts. The three principles of Kaizen
are... Read more ›

3Ds (3 elements of demand)

– Working conditions or jobs that are dirty, dangerous or difficult.

3P (Production Preparation Process)

– Rapidly designing production processes and equipment to ensure capability,

built-in quality, productivity and takt-flow-pull. The production preparation
process minimizes resources needed such as capital, tooling, space,
inventory and time.

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5 Steps for Lean

– The 5 Steps for Lean are as follows:

1. Define value as perceived by the customer
2. Identify the value stream and eliminate waste
3. Make your product or service ‘flow’ through the value stream
4. ‘Pull’ your product or service through the system
5. Pursue perfection

5 Whys

– A simple but effective method of analyzing and solving problems by asking

“why” five times (or as many times as needed to determine root cause). This
approach is used to construct cause-and-effect diagrams.

5S

– A method for organizing a workplace, especially a shared workplace (like a

shop floor or an office area), and keeping it organized. The 5Ss are used to
 eliminate waste and increase efficiency. Some companies add safety and call
it 6S. The Ss are derived from the Japanese words... Read more ›

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6 Big Losses in Equipment Efficiency

– One of the major goals of TPM (Total Productive Maintenance) and OEE
(Operating Equipment Effectiveness) focused programs is to reduce and / or
eliminate what are called the Six Big Losses — the most common causes of
equipment related efficiency loss in manufacturing. The Six Big Losses
are... Read more ›

6Ms of Production (man, machine, material, method, mother nature and

measurement)

– Understanding how these factors impact the process and the establishment
of standards are key steps in strengthening production processes. These
factors are used to construct cause-and-effect diagrams.

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7 Characteristics of a Business Process

– A process is a series of actions or steps toward achieving a particular end.

A business process or a sub-process can be described based on the
following characteristics... Read more ›

7 Leadership Wastes

– Arise from a failure of leadership to harness the potential that resides in all
workgroups. The 7 wastes of leadership are... Read more ›

7 Management and Planning Tools

– The seven management and planning tools have their roots in operations
research work done afterWorld War II and in Japanese Total Quality Control
(TQC) research. In 1979, the book Seven New Quality Tools for Managers and
Staff was published and was translated into English by Bob King, QOAL/PQC
in 1983. The seven tools include... Read more ›
7 Types of Waste

– Classification of the seven types of waste in production systems, as defined

by Taiichi Ohno, the father of waste elimination in manufacturing operations,
are as follows. Waste is defined as anything that uses resources, but does
not add real value to transforming the product or service... Read more ›

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8 Tools of Quality Control

– Presents complex or abstract statistical information in a simple, visual

format. The eight quality tools help monitor and control production
processes, analyze and solve problems, generate ideas, and help make
improvements... Read more ›

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A3 Process

– A3 is metric nomenclature for a paper size document. Toyota believes that

when you structure your problem-solving around a 1-page piece of paper,
then your thinking is focused and structured as well. Per John Shook of the
Lean Enterprise Institute: “The most basic definition of an A3 would be a
PDCA storyboard or report... Read more ›

ABC Inventory Classification

– Inventory in any organization can run in thousands of part numbers or

classifications, as well as millions of parts in quantity. Therefore, inventory
is required to be classified with some logic to be able to manage the same.
The ABC classification system groups inventory items
according... Read more ›

Abnormal Management

– Being able to see and quickly take action to correct abnormalities (i.e., any
straying from Standard Work). This is the goal of standardization and visual
management. Continuous waste elimination and problem-solving through
Kaizen are only possible when the abnormalities are visible.
Activity Network Diagram

– See 7 Management and Planning Tools

Activity-Based Costing

– A management accounting system that assigns cost to products based on

the resources used to perform the applicable processes (e.g., design, order
entry, production, etc.). These resources include floor space, raw materials,
energy, machine time, labor, etc.

Actual Person-Hours

– One person-hour = 60 minutes of available work time. The sum of person-

hours (i.e., actual number of operations multiplied by actual hours worked
per operator) used to produce a set number of units.

Affinity Diagram

– See 7 Management and Planning Tools

Andon

– A visual control device typically leveraged in production areas that utilize a

lighted overhead display or board. Andons are used to give the current
status of the production system and alert team members to emerging
problems or abnormal situations. A green light indicates normal mode. An
amber light is used to warn of poor performance or an imminent problem. A
red light is used for failure mode.

As Is

– A representation or description of a current state (e.g., an organization, a

process, etc.).

Asset Velocity

– Asset velocity, also referred to as “asset turnover”, measures the number of

times an asset completes a full economic cycle in a given period of
time... Read more ›

Autonomation (or jidoka)

– Automation with a human touch or transferring human-like intelligence to

a machine. This allows the machine to detect abnormalities or defects and
stop the process... Read more ›

Autonomous Maintenance
 – Operators maintaining their own equipment.

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Back Flush

– The process of automatically reducing perpetual inventory records, based

on the bill of materials of a given product. Normally triggered by shipment
and invoicing to a customer, back flushing is used to eliminate wasteful
inventory transactions.

Balanced Plant

– A plant where capacities of all resources are balanced exactly with the rate
of market demand after production smoothing.

Balanced Scorecard

– Measures whether the activities of a company are meeting its objectives in

terms of vision and strategy. By focusing not only on financial outcomes but
also on human issues... Read more ›

Baseline

– The current state or foundation that is based on an evaluation of the

output over a period of time. It is used to determine the process parameters
prior to any improvement effort; it forms the basis against which change is
measured.

Baseline Process Flow Data

– The "flow" of data through an information system.

Batch Production

– A "push" system of production where resources are provided to the

consumer based on forecasts or schedules. Production is run in batches of
like items.

Batch-and-Queue

– Producing more than one piece of an item and then moving those items
forward to the next operation before they are all actually needed there. Thus,
items wait in a queue.
Benchmark

– A standard of performance against which similar or comparable products,

processes or methods are measured or judged.

Benchmarking

– A process used in management (particularly strategic management) in

which organizations evaluate various aspects of their processes in relation to
best practice... Read more ›

Benefits and Concerns (Bs & Cs)

– A simple practice for reviewing and evaluating team activities immediately

after they have finished. It provides timely feedback and direction by
itemizing all benefits and assigning next steps to concerns that arise from
the activities.

Best Practice

– A way of performing activities or executing processes that is generally

considered superior to all other methods in terms of high performance and
low cost. It serves as the benchmark against which all other activities can be
judged.

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.

Black Belt

– In Six Sigma terms, black belts operate under master black belts to apply
Six Sigma methodology to specific projects. They devote 100% of their time
to Six Sigma. They primarily focus on Six Sigma for project execution,
whereas champions and master black belts focus on identifying projects /
functions for Six Sigma.

Bottleneck

– A phenomenon where the performance or capacity of an entire system is

limited by a single component or function. The component or function is
sometimes called a bottleneck point. The term is metaphorically derived from
the bottleneck of a bottle, where the flow speed of the liquid is limited by its
neck. Any resource whose capacity is equal to or less than the demand
placed on it.
Bowling Chart

– A form used to track performance (i.e., plan versus actual) on policy

deployment objectives - usually reviewed with top management on a monthly
basis.

Brainstorming

– An idea generation technique used to identify creative solutions through

open-ended discussion. Normally a team-based process, with the team
formulating and recording as many ideas as possible before defining specific
strategies, tactics and actions. There are three phases... Read more ›

Breakthrough Objectives

– In policy deployment, those objectives characterized by multi-functional

teamwork, significant change or a major stretch in the organization, and
significant competitive advantage.

Brown Paper (or process mapping or process flowcharting)

– A visual snapshot of an entire operating process highlighting all applicable

interfaces, documentation and data sources. The brown paper is a process
flow illustration that focuses on content. Click here to read blog posts
focused around process mapping.
... Read more ›

Brown Paper Fair

– An event where brown papers are presented. The audience is encouraged to

engage actively by commenting directly on the maps with sticky notes.

Brownfield

– An existing and operating production facility that is set-up for mass-

production manufacturing and management methods. Contrasts
with greenfield.

Business Process

– A set of interrelated activities that together produce a defined set of

outcomes, whether products, services or information.

Business Process Improvement (BPI)

 – A systematic approach to improving defined business processes through
the implementation of problem-solving strategies, waste elimination and
employee involvement in decision-making.

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Capability (or Process Capability, or Cpk)

– The level of ability involved with a process to perform as expected. Often

referred to as Cpk, this reflects how well a process can be performed and
delivered defect free. The Cpk is compared to ‘1.00’ as a measure of how
‘good’ a process is in performing... Read more ›

Capacity

– The maximum amount of output a process, machine or system can produce

in any given period of time.

Catch-Ball

– A series of Hoshin Kanri discussions between managers and their

employees during which data, ideas and analysis are thrown back and forth
like a ball. This can open productive dialogue within a company.

Cause-and-Effect Diagram (or C&E, or ishikawa, or Fishbone)

– A problem-solving tool that depicts the various inputs, including all

processes and sub-processes, that affect the outcomes of a given activity or
operation. These diagrams are used to analyze and identify root causes
within the 6Ms.

Cause-and-Effect Diagram with the addition of cards (CEDAC)

– A method for involving team members in the problem-solving process.

Cells

– The layout of different types of machines that perform different operations

in a tight sequence, typically in a U-shape, to permit single piece flow and
flexible deployment of human effort.

Cellular Manufacturing
 – Linking of manual and machine operations in cells that have the total
capabilities of producing an item or family of similar items in a single flow.
This is opposed to setting up manufacturing centers based on similar
functioning equipment, in which case items must be moved to and from
different centers.

chaku-chaku line

– Chaku-chaku is a Japanese term meaning “load-load." A chaku-chaku line

is a work cell setup for single-piece flow, where the operator proceeds from
machine to machine... Read more ›

Champion

– Each Executive Steering Committee member is required to act as a mentor,

advisor and coach (or champion) of at least one change team. The champion
role provides the team... Read more ›

Change Agent

– A person who leads change within the organization, by championing

change efforts, and managing and planning their implementation. Change
agents work cross-functionally inside an organization to enable people and
systems to achieve a higher degree of output.

Change Team (or Work Stream Team)

– A small group of employees (usually 5-9) that is assigned (typically not

full-time) to work on a specific issue for a specified time period. They are
chartered and report weekly... Read more ›

Changeover (Set-up)

– The act of “changing over” equipment to run a different part, component or

product. Example could include the installation of a different sized tool in a
metal-working machine, switching a different paint color in a painting
system, or changing a mold in an injection molding machine to produce a
different shape, etc.

Changeover Time

– Changeover time is measured as the total time elapsed from concluding

work on the last good piece of one job in a process or machine to the
production of the first good piece... Read more ›

Charter
 – The Executive Steering Committee works with each change team (and its
champion) to negotiate a charter that describes the background, objectives,
critical success factors, team membership... Read more ›

Chartered Change Teams (or Work Stream Teams)

– All types of change teams should be chartered through the Executive

Steering Committee. The charter is a written commitment approved by
management stating the scope of authority for an improvement project or
change team.

Chi-Squared Analysis
– An analysis that is used to assess multiple variables toward understanding
their collective and individual influence on a specific metric. This type of tool
can be used to assess equal employment opportunity (EEO) situations, for
example, or where more than three or four variables may be influencing a
resulting condition or situation.

Coaching

– Helps an individual or group develop knowledge or skills through

thoughtful questioning and participative demonstration. Coaching is usually
performed one-on-one and involves active listening, receiving and providing
feedback, as well as modeling appropriate behaviors.

Concurrent Engineering

– An approach to designing and marketing new products. It involves stages

that are run in parallel, rather than in series, to reduce lead times and costs.

Constraint

– Anything that limits a system from achieving higher performance or

throughput.

Continuous Flow

– An optimal state of production in which goods are made according to the

rate of customer demand (e.g., producing exactly what is needed, when it is
needed, and in the quantities needed, without interruption).

Continuous Flow Production (or Single-Piece Flow or One-Piece Flow)

– Means items are produced and moved from one processing step to the next.
One piece is handled at a time, without interruption, for staging or waiting in
inventory. Each process makes only the one piece that the next process
needs. The transfer batch size is one.
Continuous Improvement (CI or Kaizen)

–
A way of doing work in which every worker is constantly taking steps to
remove waste from their processes. Click here to read blog posts focused on
Continuous Improvement.

Continuous Improvement Plan (CIP)

– An annual business plan and timeline that schedules and communicates

Continuous Improvement initiatives for a site, including training, progress
and results to date, and implementation activities and events.

Control Chart

– See 8 Tools of Quality Control

Control Element

– A specific process variable that must be controlled. Measurements of a

control element indicate whether or not a stable condition has been achieved.

Cost Efficiency

– Productivity relative to the cost.

Counter Measures

– Immediate actions taken to bring performance that is tracking below

expectations back into the proper trend. Requires root-cause analysis.

Counterclockwise Flow

– A basic principle of Lean manufacturing cellular layout, it is the flow of

material, and the motion of people, from right to left or counterclockwise.
The origin of this idea came from the design of lathes and machine tools
with the chucks on the left side, making it easier for right-handed people to
load from right to left.

Countermeasure

– A countermeasure is a set of actions intended to correct or “counteract” the

root cause of a problem or off target performance. A countermeasure may
not always be the final solution. Follow-up and learning are required to
ensure actions are achieving the expected results. If not, adjustments, and or
further other countermeasures, must be tried.

Covariance
 – The impact that one variable has upon others in the same group.

Cross-Functional Team

– A team of people from different areas, functions, shifts, and organizational

levels that work together to perform a specific task or solve a specific
problem. Click here to read blog posts focused on Cross-Functional Teams.

Cross-Training

– Skill development practices that enable workers to master multiple job

skills and increase operational flexibility.

Current State

– The status of a process, operation or system before a planned correction or

improvement.

Current State Map (or ‘As Is’ Map)

– See Brown Paper Mapping and Value Stream Mapping

Curtain Effect

– Permits the uninterrupted flow of production regardless of external process

location or cycle time. Curtain effect is normally used when a product must
leave the cell for processing through equipment that cannot be put into the
cell. (e.g., heat treat, curing oven, plating, or wave solder). Curtain quantities
are established using the following formula: Per unit cycle time of curtain
process / takt time = curtain quantity.

Cycle Time

– The time required to complete one cycle of an operation, usually

documented in seconds.

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Daily Huddles (or Daily Workgroup Meetings)

– See Lean Daily Management System®

Daily Management
 – Attention each day to those issues concerned with the normal operation of
a business.

Daily Workgroup (Shift Start-up) Meetings

– See Lean Daily Management System®

Dashboard

– A performance dashboard that is visually based, providing operational

information that displays real-time understanding of the performance of an
organization through metrics and key performance indicators (KPIs).

Days Supply of Inventory

– Total number of days (if the production level equals zero) that it would
take to deplete finished goods inventory for the specified product line.

Defect

– A measurable characteristic that negatively varies from specifications and /

or fails to meet customer requirements of any product or service.

Defect Opportunity

– Any flaw in a process, operation or unit of production that creates the

opportunity for a defect to occur.

Defective

– A product or service that does not meet customer requirements. A

defective product can have multiple defects.

Dependent Events

– Events that occur in sequential fashion after the initial event. One event is
a prerequisite to the next.

Design for Manufacture and Assembly (DFMA)

– Design for manufacture is the method of design for ease of manufacturing

of the collection of parts that will form the product, or reducing part cost.
Design for Assembly is the method of design of the product for ease of
assembly, or reducing assembly cost.

Design for Six Sigma (DFSS)

 – An application of Six Sigma to design processes, such that the process of
design is optimized and performing with minimal variation and waste, and is
creating maximum value. There are several approaches, all focused on
improving and optimizing the design and engineering process. (See DMADV
and IDOV for specific details on the two most popular approaches.)

Design of Experiments (DOE or Experimental Design)

– DOE is an experimental and analytical tool that uses structured

experimentation and analysis to analyze the complex relationships between
multiple input and output process... Read more ›

Discipline Waste

– See 7 Leadership Wastes

DMADV

– One step-by-step approach to Six Sigma as applied to design (referred to

as design for Six Sigma, or DFSS). The basic methodology consists of the
following five steps... Read more ›

DMAIC

– The most popular, structured step-by-step application of Six Sigma. The

basic methodology consists of the following five steps... Read more ›

Downstream

– Processes or activities that follow the task or activity in question. For

example, budget creation is downstream of forecasting.

Downtime Study

– Machinery downtime occurs for a variety of reasons, including mechanical

breakdowns, scheduled maintenance, safety issues, and a lack of spare parts,
etc. A downtime study uses various statistical techniques to determine the
cause and amount of downtime so that it can be addressed.

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Effectiveness
 – A general term used to describe an activity or process’s ability to meet the
needs of the customer. An effective process successfully achieves planned
outcomes in a planned manner (e.g., on time, built to specifications, value-
added, etc.). Effectiveness is the foundation for Six Sigma.

Efficiency

– A general term used to describe how resources are used to produce a given
output. An efficient process is one that uses relatively few resources (e.g.,
funds, time, energy, etc.) to achieve planned (i.e., value-added) outputs.
Efficiency is the foundation forLean.

Employee Involvement

– The philosophy, commitment and actions that ensure employees are

involved in the decisions that affect their work.

Employee Knowledge Network

– Employer-created environment and systems for capturing, organizing and

sharing knowledge. This allows employees within an organization to
significantly improve productivity through the exchange of expertise and
knowledge by quickly locating helpful internal experts.

Enterprise Software (or EIS or ERP)

– Software systems that attempt to merge all (or some selected portions) of
an organization’s data systems, reporting and analysis into a single,
integrated entity so that timely, accurate, real-time data can be effectively
used by various levels of management.

Ergonomics

– The science that deals with designing a work area to eliminate safety
hazards for the operator and designing work activities to eliminate causes of
repetitive stress injuries, such as fatigue, carpal tunnel, back injuries, etc.

Error-Proofing (Mistake-Proofing or poka-yoke)

– A process and set of techniques for anticipating, detecting and preventing

errors that adversely affect product quality, process efficiency and customer
satisfaction... Read more ›

Every Part Every “X”

– Measured in terms of time (e.g., hours, days, weeks, months, etc.), every
product every “X" indicates the level of flexibility to produce whatever the
 customer needs. For instance, every product every day would indicate that
changeovers for all products required can be performed each day and the
products can be supplied to the customer.

Excess Inventory

– Raw materials, work-in-process and finished goods not immediately

required to fulfill a customer order. Inventories are held in storage for future
withdrawal.

Executive Steering Committee (ESC)

– The ESC typically consists of a site’s senior management team or a subset

of it (5-9 people are best). The ESC directs and leads all change efforts with
chartered change teams... Read more ›

External Changeover or External Set-up

– Changeover actions that can be performed while the equipment is still

running in production. See Changeover.

External Customer

– Any party outside the organization that purchases or relies on goods or

services produced by the organization.

External Supplier

– Any party outside the organization that provides goods or services to the
organization.

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Facilitation

– Concerns itself with all the tasks needed to run a productive and impartial
meeting or event. Facilitation serves the needs of any group that is meeting
with a common purpose, whether it be making a decision, solving a problem
or simply exchanging ideas and information. It does not lead the group, nor
does it try to distract or to entertain.

Facilitator
 – Someone who skillfully helps a group of people understand their common
objectives and assists them in achieving them without taking a particular
position in the discussion. The facilitator will try to assist the group in
achieving consensus on any disagreements that pre-exist or emerge in the
meeting / event so that it has a strong basis for future action.

FIFO

– First in, first out. For example, the first items put in inventory will be the
first ones removed for use or sale.

First Time Through Yield (or First Pass Yield or FPY)

– The percentage of items that move through a step in a process that are
defect free on the first attempt (i.e., without rework).

First-Pass Quality

– A product or service free of deficiencies on first attempt.

Fishbone Diagram

– See Cause-and-Effect Diagram

Five S

– See 5S

Five Whys

– See 5 Whys

Flexibility Diagram

– See Skill Assessment

Flexible Workforce

– The efficient deployment of personnel to meet customer demand. Focuses

on achieving workforce flexibility through cross-functional activity using
multi-skilled employees.

Flow

– A progressive completion of tasks in the value chain to deliver products

and services that meet customer requirements; optimal flow occurs when
material moves through the entire process without interruption, waste or
variation.
Flow Production (or One-Piece Flow)

– A philosophy that rejects batch, lot, or mass processing as

wasteful. Products should move (flow) from operation to operation in the
smallest increment, with one piece being the ideal. Products should be
pulled from the preceding operation as it is needed. Only quality parts are
allowed to move to the next operation.

Flowchart (or Deployment Flowchart, Brown Paper, Value Stream Map or To Be)

– Diagram of a defined process from start to finish. It is particularly helpful

in depicting how the process actually functions and where waste, error and
resistance can occur. Advanced flowcharts use symbols and figures to
represent actions, data, equipment, and material flow. It can reflect the as is
or the to be states.

Focus Waste

– See 7 Leadership Wastes

Full-Time Equivalent (FTE)

– A way to measure a worker's productivity and / or involvement in a project.

An FTE of 1.0 means that the person is the equivalent to one full-time
worker.

Functional Layout

– The practice of grouping machines or activities by type of operation

performed.

Future State

– The planned, improved, but not yet realized state of a process, operation
or system, as distinguished from the current state.

Future State Map

– See Flowchart

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Gantt Chart
 – A type of chart that displays all of the action items for a project, along with
timelines and names of people responsible for each item.

gemba

– The Japanese term for workplace (shop floor). The concept, “go to gemba”
means to physically verify information or data in the workplace where the
product or service originates.

gembutsu

– Japanese for “actual thing” or “actual product.” The tools, materials,

machines, parts and fixtures that are the focus of a Kaizen activity.

genjitsu

– Japanese word for “the facts” or “the reality.” The actual facts or the reality
of what is happening on the shop floor or in the business.

Greenfield

– A new design or production facility where best practice, Lean principles

and Six Sigma are designed into manufacturing and management systems
from the beginning. Contrasts with brownfield.

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Hand-Off

– The transfer of material or information to the next step in a process. Too

many, or poorly executed, hand-offs can be a major source of waste.

hanedashi

– Device or means of automatic load and unload of the work piece from one
operation or process, providing the proper state for the next work piece to
be loaded. Automatic unloading and orientation for the next process is
essential for a chaku-chaku line. A recognizable example is the automated
tray that loads and unloads a CD in a computer.

hansei

– Japanese term for "deep personal reflection and acknowledgement of your

own mistake."
heijunka

– A method of leveling production at the final assembly line that makes just-
in-time production possible. This involves averaging both the volume and
sequence of different model types on a mixed-model production line.

Histogram

– A type of bar chart used to display the frequency, distribution and central
tendency of a set of data. The shape of the graph provides quick insight into
the meaning of the data.

Hoshin Planning (HP or Management by Policy or 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 the
company aligned with its overarching strategic plans. HP typically begins
with the visioning process, which addresses... Read more ›

Huddles

– See Lean Daily Management System®

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IDOV

– Another popular, structured step-by-step approach to Six Sigma as applied

to design (referred to as design for Six Sigma or DFSS). The four basic
steps... Read more ›

ijo-kanri

– See Abnormal Management

inefficiency

– A general term used to describe the creation of waste in the production of

a given output. In Continuous Improvement terms, inefficiency may come in
the form of inconsistency, overburden or waste.

Input
 – Any material, service or information that contributes to, or affects, the
activities and results of a process.

Intact Workgroup

– A small group (typically 5-9 individuals) that work in close physical

proximity on like or similar tasks for most of the work day. These
workgroups are the basic building blocks upon which the Continuous
Improvement element of the Lean Daily Management System® is based.

Integration Waste

– See 7 Leadership Wastes

Internal Changeover or Internal Set-up

– Changeover actions that must be performed when the equipment is

stopped. See Changeover.

Internal Customer

– Any user of goods or services produced within the organization. This

usually refers to the next (downstream) operation in the value chain. For
example, finishing and packing are internal customers of final assembly.

Internal Supplier

– Any provider of goods or services produced within the organization. This

usually refers to the previous (upstream) operation in the value chain. For
example, purchasing is a supplier to production.

Interrelationship Diagraph (ID)

– See 7 Management and Planning Tools

Inventory

– A major cost for most businesses, inventory is all raw materials, purchased
parts, work in process components and finished goods that are not yet sold
to a customer. In some cases, inventory may include consumable goods used
in production.

Inventory Turnover

– Inventory turnover measures a company's efficiency in managing its

investment in inventory. It is calculated as a ratio that shows the number of
times the average inventory balance... Read more ›
Involvement Wastes

– See 7 Leadership Wastes

ishikawa diagram

– See Cause-and-Effect Diagram

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jidoka

– See Autonomation

jishuken

– Fresh eyes; an important concept in observation-based safety.

Just-In-Time (JIT)

– A system for producing and delivering the right items, at the right time, in
the right place, and in the right amounts. The key elements of just-in-time
are flow, pull, standard work, and takt time.

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Kaizen

– A Japanese term meaning "small, continuous improvement on everyone’s

part." The word itself comes from the Japanese words “kai” (small, little,
good) and “zen” (good, change for the better). The intent is to create a work
environment that focuses each worker on waste elimination as a normal part
of the everyday work process.

Kaizen Action Sheet System

– See Lean Daily Management System®

Kaizen Action Sheets

 – Paper forms used to communicate and convert small, simple process
improvement suggestions into real change within employee work units.

Kaizen Event

– See Rapid Process Improvement Event (RPI)

Kanban

– The Japanese word for “signal,” a kanban in a manufacturing plant is any

signal to start or stop production, replenish parts from stores or order parts
from a supplier... Read more ›

Kaufman Global 20 Keys®

– See Lean Daily Management System®

Key Performance Indicators (KPIs)

– Financial and non-financial metrics used to quantify objectives to reflect

the strategic performance of an organization. KPIs are frequently used to
value difficult-to-measure activities such as the benefits of leadership
development, engagement, service and satisfaction. KPIs are typically tied to
an organization's strategy (as exemplified through techniques such as the
balanced scorecard).

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Lead Time

– 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.

Lead Time Reduction

– A systematic process of identifying, timing, graphing, and improving

processes to eliminate non-value-added activities and speed delivery of
products to customers.

Leadership Waste
 – See 7 Leadership Wastes

Lean (or Lean Manufacturing or Office Kaizen)

– A name given to the overall operational system that is characterized by

extensive use of standardized methods to remove waste. The body of
knowledge, leadership behaviors... Read more ›

Lean Daily Management System® (LDMS®)

– Kaufman Global's proprietary management system for small workgroups

and the primary means of sustaining and expanding the results of
implementation. There are seven key elements of LDMS. The first five are for
the intact workgroup and the last two are for their supervisors / area
leaders... Read more ›

Lean Enterprise Transformation

– The process of converting an organization, its systems and its operations

from a traditional business culture to a culture in which the systematic
elimination of waste is an organizational norm.

Lean Leader

– A designated, full-time employee, who is trained and accredited in the

tools and techniques of Lean and Change Management. His / her role is to
identify improvement opportunities and lead team-based waste elimination
initiatives in the workplace.

Lean Thinking

– A state of mind in which the elimination of waste in all processes and the
maximization of value for customers, shareholders and employees is the
primary consideration in all decision-making.

LEC (or Lean Executive Committee)

– See Executive Steering Committee

Leveling (or Production Leveling or heijunka)

– Production leveling is a technique for reducing waste and developing

production efficiency. The general idea is to produce intermediate goods at a
constant rate and to allow further processing to be carried out at a constant
and predictable rate.

LIFO
 – Last in, first out. For example, the last items added to inventory will be the
first items removed for sales or use.

Lock Out / Tag Out (LOTO)

– Lockout devices or tags are applied to energy sources and pressure valves
and other protections are applied so the machine will not operate or pose
risk of injury to the personnel working on it. In all, LOTO is a safety
procedure which is used to ensure that... Read more ›

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Macro Process

– The name given to a group of micro processes, such as processing a

purchase order or annual planning.

Matrix Diagram

– See 7 Management and Planning Tools

Mega Process

– The name given to a very large collection of smaller processes, such as

engineering, purchasing, or the processing center.

Metric

– A measure that provides vital information about important issues, the

status of ongoing efforts, and progress (or lack of it) of a person or group
who can significantly impact the measure through direct, hands-on process
efforts.

Micro Process

– The inputs, events and outputs manipulated by a worker, such as

completing an invoice.

Mistake-Proofing

– See Error-Proofing

Modified Affinity Diagram

 – A consensus-based, participative group technique for gathering and
prioritizing inputs to a given problem statement in the following
process... Read more ›

MTBF (Mean Time Between Failure)

– MTBF is calculated by dividing the operating time by the number of failures.

Used as a measurement for maintenance of equipment.

MTTR (Mean Time to Repair)

– Used as a measurement for maintenance to establish a baseline for repair

time and then strive to reduce time in order to return equipment to working
order quicker. It can be calculated as total maintenance repair time divided
by the total number of maintenance repair actions during a given period of
time.

muda (or Waste)

– The Japanese term for waste. See 7 Types of Waste

Multi-Functional Worksheet

– See Skill Assessment

Multi-Skilled Worker

– Employees at any level of the organization that are diverse in skills and
training. They provide the organization with flexibility; they grow in value
over time. These workers are essential for achieving maximum efficiencies of
JIT.

mura

– Japanese term for "unevenness."

muri

– Japanese term for overburden or "unreasonableness."

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nagara
 – Japanese term for "while doing something, accomplishing more than one
task in one motion or function."

Nonvalue-Added

– Activities or actions taken that add no real value to the product or service,
making such activities or action a form of waste. Any activity that the
customer would not be willing to pay for.

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Office Kaizen

– A systematic, repeatable methodology for achieving excellence in non-

manufacturing areas, Office Kaizen enables improved speed, accuracy and
customer focus. Click here to read blog posts focused around Office Kaizen.

On-Time Delivery

– The amount of product that is actually shipped to all customers on the day
agreed upon with the customer. Calculated as on-time deliveries per month
divided by total deliveries to all customers per month.

One-Piece Flow (or Continuous Flow Product ion or Single-Piece Flow)

– Items are produced and moved from one processing step to the next one. It
is a piece at a time, where each process makes only the one piece that the
next process needs, and the transfer batch size is one.

Operationalize

– To make something operational, to put something to use or to implement

procedures to achieve a defined strategy or goal.

Output

– Any product, service or piece of information produced by, or resulting from,

the activities in a process.

Overall Equipment Effectiveness (OEE)

– Comprised of three components that are multiplied together to reflect an

overall percentage of effectiveness for a given piece of equipment or
 manufacturing line. For example, if a machine works about 80% of the time,
it is running at about 92% of machine standard... Read more ›

Overproduction

– See 7 Types of Wastes

Ownership Waste

– See 7 Leadership Wastes

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Pareto Chart

– A vertical bar graph showing the bars in descending order of significance,

ordered from left to right. It helps to focus on the vital few issues, rather
than the trivial many. An extension of the Pareto principle suggests that the
significant items in any given group normally constitute a relatively small
portion of the items in the total group. Conversely, a majority of the items
will be relatively minor in significance — the 80 / 20 rule.

Pareto Principle

– A principle of causation, often known as the 80 / 20 Rule, which states that

the most important 20% of causes creates 80% of the problem. The principle
assumes that addressing the few most critical causes are an efficient
problem-solving strategy.

Performance Culture

– The beliefs, values and practices of a diverse, results-oriented, high

performing workforce. High performance organizations engage people's
inherent beliefs about the value they place on their work and contributing to
a common enterprise, inspiring loyalty from employees who want to stay and
be part of a team.

Performance Improvement Plan

– A plan implemented by a manager or supervisor that is designed to provide

employees with constructive feedback, facilitate discussions between
employees and their supervisor regarding performance-related issues, and to
outline specific areas of performance requiring improvement. The most
effective plans have specific metrics and time-frames.
Personal Development Plan

– Action-based on a reflection of personal, career and academic objectives

that may include a portfolio containing evidence of the skills gathered over a
particular time-frame. These plans support progress of self-directed,
independent workers.

Personal Protective Equipment (PPE)

– Personal protective equipment (PPE) is equipment, gear, or special clothing

worn by operators to minimize exposure to health and safety hazards.
Examples include such items as gloves, foot and eye protection, protective
hearing devices (earplugs, muffs), hard hats, respirators, and full body suits.

Plan For Every Part (PFEP)

– The first step in creating a Lean material-handling system for purchased

parts is to collect all of the necessary parts information in one place. This
involves establishing and documenting how each part is to be purchased,
received, packaged, stored, and delivered to its point of use — a Plan for
Every Part (PFEP).

Plan-Do-Check-Act (PDCA)

– A classic four-step process improvement model that is the foundation for

more detailed approaches to problem-solving and goal
achievement... Read more ›

Point of Use Positioning

– Materials, tools and supplies are positioned near where they are used by an
operator, facilitating the sequence in which they are used and in a manner
that prevents motions such as reaching, lifting, straining, turning and
twisting.

Predictive Maintenance (PdM)

– Predictive maintenance is performing maintenance-based on developing

conditions. It compares the trend of measured physical parameters against
known engineering limits for the purpose of detecting, analyzing and
correcting problems before failure occurs.

Preventive Maintenance (PM)

– Preventive maintenance is interval-based maintenance. It involves periodic

and systematic inspection, detection and correction of developing failures,
either before they occur or before they develop into major defects. The
 maintenance intervals may be established based on equipment
manufacturers recommendations or a company's own studies or experiences.

Primary Visual Displays (PVDs)

– See Lean Daily Management System®

Prioritization Matrix

– See 7 Management and Planning Tools

Proactive Maintenance

– Proactive maintenance is a maintenance strategy for stabilizing the

reliability of machines or equipment by focusing on root causes of failures as
opposed to active failure symptoms or machine wear conditions. A proactive
maintenance program sets a quantifiable target for a learned root cause and
implements monitoring and maintenance procedures to control the root
cause condition within the target level.

Process

– A process is a series of actions or steps required to complete a task, to

create a product, to add value, or to achieve a particular end.

Process Capability

– A measureable property of a process to a specification. The output of this

measurement is usually illustrated by a histogram, and calculations that
predict how many parts will be produced that are out of specification.

Process Decision Program Chart (PDPC)

– See 7 Management and Planning Tools

Process Flow Analysis

– A procedure used to portray the sequence of activities, inputs, events,

interfaces, and documentation involved in a selected process. The analysis
has a predetermined start and end point, as well as related
guidelines... Read more ›

Process Kaizen (or Point Kaizen)

– Improvements made at an individual process or in a specific area.

Process Management
 – A comprehensive approach to defining, documenting and monitoring
processes on an ongoing basis to facilitate the elimination of waste. Click
here to read blog posts focused around around Process Management.

Process Map

– See Brown Paper

Process Ownership

– The person who coordinates the various functions and work activities at all
levels of a process, has the authority or ability to make changes in the
process as required and manages the entire process cycle to ensure
performance effectiveness.

Processing Time

– The time a product is actually being worked on in a machine or by an

employee in a work area.

Production Leveling

– See Leveling

Pull System

– A system in which customer demand pulls products through the supply

chain or triggers an activity to occur. This contrasts with a push system.

Push System

– A system in which the volume and rate of production is determined by a

schedule rather than by customer demand. This contrasts with a pull system.

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Quality

– A business discipline that focuses on meeting customer specifications and

requirements. Quality is synonymous with the ability to meet customer
requirements all the time.

Quality Function Deployment (QFD)

 – A visual, decision-making, highly structured, four-step process that starts
with a customer demand or need and goes through the product design,
process design and support system selection methodology... Read more ›

Quality Management

– Focused not only on product quality, but also the means to achieve it.
Quality management uses quality assurance and control of processes, as well
as products, to achieve a more consistent quality... Read more ›

Quality Management System (QMS)

– A system to manage quality assurance within an organization, focusing on

integrating the components of quality management through a systematic
approach to every operation and function within an organization. Quality
management systems often support and enable ISO 9000 implementation
and certification.

Queue Time

– A mathematical analysis of several related processes. Ultimately, it is the

time a product spends in line awaiting the next design, order processing or
fabrication step.

Quick Changeover or Quick Set-up (or Single Minute Exchange of Die or SMED)

– A methodology that enables the ability to rapidly change tooling and

fixtures (usually in less than 10 minutes), so that multiple products can be
run on the same machine. The ultimate goal is making a changeover in less
than a minute, which is referred to as OTED (One-Touch Exchange of Die).

Quick Hit

– An action that can be taken immediately to yield quick benefits.

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RACI (Responsible, Accountable, Consult, Inform) Matrix

– A planning tool used to identify and clarify roles, responsibilities and

individual levels of participation across all functions (e.g., activities, tasks
and decisions) to ensure effective operation.
Rapid Improvement Event or RIE, Rapid Process Improvement Event (RPI) or Kaizen
Event

– A four-to-five-day, highly structured and coached, intense attack on waste

in a process or work area by a small cross-functional team of employees.
They focus on designing solutions. Click here to read blog posts focused
around Rapid Improvement Events.
... Read more ›

Rationalization

– Reorganization of a company or organization in order to improve its

efficiency. Sometimes used as business jargon for a reduction in numbers.

Reactive Maintenance
– Maintenance environment where equipment is allowed to run into failure or
frequent unexpected breakdowns occur. As a result, the maintenance
department must react in crisis mode. Run to failure may also be a selected
strategy for certain types of maintenance based on cost effectiveness. For
example, light bulbs are not changed until they burn out.

Red Tag

– A physical red tag used to identify unnecessary or unsafe items in the

workplace. The tag is attached to the item with disposition information
included. Usually performed during the sort phase of 5S.

Redeployment

– The reassignment of employees to other departments or functions.

Reengineering

– The radical redesign of an organization's processes, especially its business

processes. Rather than organizing by functional specialties (like production,
accounting, marketing... Read more ›

Repeatability

– A key indicator of stability within a process. It represents the probability

that a process will achieve the same measured result each time it is
conducted under the same conditions.

Reproducibility
 – A key indicator of stability between processes. It represents the probability
that a process will achieve the same measured results after transfer to
another location or environment.

Resource Allocation Waste

– See 7 Leadership Wastes

Resource Leveling

– Aims at smoothing the stock of resources on hand, reducing both excess

inventories and shortages.

Resource Utilization

– The efficient and effective deployment of an organization's resources when

they are needed.

Rework

– Any material, part, product or activity that has to be corrected by

duplication or by returning it to a previous step in the process.

Root Cause

– A single, verified reason why a given problem or defect has occurred.

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sensei (or Lean sensei)

– An outside master or teacher that assists in implementing Lean practices.

Sequential Changeover (or Sequential Set-up)

– When changeover times are within takt time, changeovers can be performed
one after another in a flow line. Sequential changeover assures that the lost
time for each process in the line... Read more ›

Six Sigma (6)

– A statistically-based problem-solving methodology for reducing variation

within processes. Based on the premise that variations in measurement, fit
and timing are common causes of defects, which, in turn, create waste. It
 uses martial arts terms to describe various levels of expertise of its
practitioners (e.g., yellow belt, green belt, black belt, master black belt).

Skill Assessments / Multi-Functional Worksheets

– A documented record of team members’ abilities to perform specific tasks

within the team. Typical categories include: not trained, trained, trained and
can perform independently, and trained and can teach others.

SLIM-IT®

– Kaufman Global’s proprietary implementation methodology. It is a

pronunciation of the acronym for structure, Lean Daily Management System®,
mentoring, metrics, tools, teamwork, training and technology (or SLMMTTTT),
or all the elements required for an organization to implement an initiative,
sustain it and continuously improve upon the gains achieved through it.

SMART Goals

– Specific, measurable, attainable, reachable and time-based goal statements.

Spaghetti Chart
– A graphical aid used to diagram physical paths and distances traveled,
including product and operator movement. Processes which are not
streamlined, when diagramed, look like a bowl of cooked spaghetti.

Span of Control
– A term commonly used in human resources management to describe the
number of subordinates that each supervisor has.

Standard

– A prescribed, documented method or process that is sustainable,

repeatable and predictable.

Standard Work

– Standard Work is the design of the work. Creating standard work involves
learning and standardizing the best combination of humans, machines and
equipment to carry out a process in the safest. Click here to read blog posts
focused around Standard Work.... Read more ›

Standard Work in Process

– The minimum amount of material or a given product, which must be in

process at any time to ensure proper flow of the operation.

Standardization
 – The system of documenting and updating procedures to make sure
everyone knows clearly and simply what is expected of them. Standardization
is essential for application of the plan-do-check-act (PDCA) cycle.

Standards

– Standards involve comparison with accepted norms, such as those set by

regulatory organizations.

Statistical Process Control (SPC)

– Typically used in manufacturing processes (although it may also pertain to

services and other activities), it denotes statistical methods used to monitor
and improve the quality of the respective... Read more ›

Steering Champion

– See Champion

Strategy

– An integrated plan which defines both the objectives and the means
through which they can be achieved. Strategy includes the assessment of
internal and competitor strengths, weaknesses, opportunities, threats,
market structure and attractiveness, as well as competitive rivalry. See
Hoshin Planning.

Straw Model

– An initial version or draft used as the basis or foundation for a final version.
The purpose is to facilitate discussion leading to the development of a final
version.

Structure Waste

– See 7 Leadership Wastes

Sub-optimization

– A condition where gains made in one activity or function are offset by

losses in another activity or function, created by the same actions creating
gains in the first activity. An example is reducing purchasing costs on raw
materials, which causes production times to suffer because of lesser-quality
materials.

Succession Development (or Succession Planning)

 – The process of identifying, finding, assessing, retaining, and preparing
suitable employees for key positions to ensure the least possible disruption
to the organization’s effectiveness. This is important because it often takes
years of training to develop effective senior managers.

Supermarket

– Resembles a supermarket for the retail customer but for a business process.
“Customers” select products from a location and when inventory levels drop,
suppliers restock the inventory to a target level.

Supplier Partnership

– An approach to business that involves close cooperation with a key

supplier. It provides benefits and responsibilities that each party must
recognize and work together to realize.

Surface Waste

– See 7 Types of Waste

Swim Lane Process Map

– The swim lane process mapping approach uses a people / function

coordinate (either at the top or on the side of the chart) to demonstrate how
people and processes interact. Many processes cross functional or
departmental boundaries, and this type of flowchart easily visualizes hand-
offs, wait time and other non-value-added work.

SWOT (Strengths, Weaknesses, Opportunities and Threats) Analy sis

– A strategic planning tool used to evaluate internal strengths and

weaknesses, and external opportunities and threats involved in a project or
in a business venture... Read more ›

System Kaizen

– Improvement aimed at an entire value stream.

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takt time
 – The available time over the customer demand. The term Takt is German
and refers to cadence, rhythm or tempo. For example, if customers demand
240 widgets and the factory operates... Read more ›

Team Building

– Activities or strategies targeted at breaking down barriers within a team’s

infrastructure to enhance team performance. The term 'team building' can
refer generally to the selection... Read more ›

Teamwork

– A fundamental principle of Continuous Improvement. Effective collaborative

skills are necessary to work well in a team environment. Many businesses
attempt to enhance... Read more ›

Theory of Constraints (TOC)

– A theory based on the premise that the rate of revenue generation is

limited by at least one constraining process (i.e., a bottleneck). Only by
increasing throughput (i.e., flow) at the bottlenecked process... Read more ›

Throughput

– Rate of production — of a defined process — over a stated period of time.

Throughput is calculated as units produced divided by a period of time.

Throughput Time

– The elapsed time required for a product to go through a defined process,

from beginning to end, including both processing time and queue time / lead
time. Throughput time... Read more ›

Time-to-Market

– The length of time it takes to launch a new product starting from concept
until first market sale.

Total Productive Maintenance (TPM)

– A series of methods to ensure that every machine in a production process

is always able to perform its required tasks so that production is never
interrupted. TPM involves total employee participation... Read more ›

Toyota Production System (TPS)

– The philosophy which organizes manufacturing and logistics at Toyota,
including the interaction with suppliers and customers. The TPS is a major
part of the more generic "Lean manufacturing.” The main goals of the TPS are
 to design out overburden / unreasonableness (muri), unevenness /
inconsistency (mura) and waste (muda). Click here to read blog posts focused
around the Toyota Production System.

Tree Diagram

– See 7 Management and Planning Tools

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Upstream Process

– Any work unit or operation in a business process that supplies goods or

services to another (downstream) unit.

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Value

– A capability provided to a customer at the right time and at an appropriate

price — as defined in each case by the customer.

Value Chain

– Starting at the initial point of supply, the chain of activities that converts
inputs, such as raw materials and information, into finished products and
services to meet a customer's need and then delivers those products and
services into the arms of the customer. A value chain typically consists of
vendor sourcing, procurement, inbound logistics, engineering,
manufacturing, distribution, sales and service to the customer.

Value Stream

– The specific activities required to design, order, and provide a specific

product, from concept to launch, order to delivery and / or raw materials
into the hands of the customer. Click here to read blog posts focused around
value streams.

Value Stream Mapping

 – A structured process mapping technique that focuses on locating and
assessing hands-on work time (i.e., cycle time) and waiting (i.e., lead) time,
as well as other elements of interest. Process typically... Read more ›

Value Stream Owner / Manager

– Person responsible for creating a future state value stream map and
leading complete implementation of the future state for a process or a
product across departmental and functional boundaries.

Value-Added

– Any task or process that transforms or adds value to a product or service

to meet customer requirements. It is an essential part of any business
process and is what the customer is willing to pay for.

Value-Added Analysis

– An improvement team strips a process down to its essential elements. The

team isolates the activities that, in the eyes of the customer, actually add
value to the product or service. The remaining non-value adding activities
(i.e., waste) are targeted for extinction.

Value-Adding Activity / Process

– Any activity that transforms materials or information into a usable product

or service that the customer is willing to pay for.

Variation

– The degree to which actual results are different from an established

standard or specification. Variation can occur within a process or any
characteristic of a product / service and is the primary source of defects and
waste.

Vertical Teams

– See Cross-Functional Team

Vision

– A bold, long-range goal, or an ideal image of the future — and an

imaginative picture of what can be accomplished. Characteristics of a shared
vision... Read more ›

Vision Control
 – Any visual indicator of actual performance versus expected performance in
the workplace. Examples include correct tool placement, tracking production
run data or signaling that a piece of equipment is or isn’t working correctly.
Visual controls ensure that the status of the system can be understood at a
glance by everyone involved.

Visual Display

– A graphic indicator (e.g., sign, chart, real product sample) used to visually
communicate important information in the workplace.

Visual Factory

– An environment in which every worker can see the same thing, at the same
time. Everyone knows exactly what they should be working on to move the
organization... Read more ›

Visual System

– An approach in which the condition and status of every relevant element of

a work environment, as well as critical needed actions, is openly displayed
and updated so that everyone knows what to do, when to do it and the
progress made against it. See Visual Factory.

Voice of the Customer (VOC)

– Desires and requirements of the customer at all levels that are translated
into real terms for consideration in the development of new products,
services and daily business conduct.

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waste (or muda)

– See 7 Types of Waste

Work in Process (or Work in Progress or WIP)

– A measure of the quantity of goods in various stages of completion

throughout the facility, from raw materials to completed products. WIP
disrupts single-piece flow and anything that is not immediately needed is
classified as waste.

Work Sequence
 – The specific order in which an operator performs the manual steps of the
process.

Work Unit

– A team of employees that share a common work area and have

responsibility for a particular process or product.

Work Unit Metrics

– A set of measurement indicators used to track work unit performance on a

day-to-day basis. Examples include productivity (versus plan), defects, skill
versatility, safety and... Read more ›

Workplace Organization (WPO)

– The discipline of configuring workspaces to optimize material flow by

minimizing the consumption of distance, time and space.

Workstation Optimization

– Design the work area for operator movement as opposed to storing

material and supplies. Achieve the optimum work area that minimizes
operator motions and facilitates safe, efficient work.

World-Class Quality Management

– A quality management system that is the benchmark for other industries

and competitors. See Quality Management. Click here to read blog posts
focused around World-Class Standards.

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Yield

– See First Pass Quality

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