Maintaining a Consistent Lean Culture 330

14 points of quality

A 14 point approach to total quality management developed by W. Edwards Deming.

business system

A means of collecting and disseminating important data about the company. Business systems include financial reporting systems.

catchball

Also known as nemawashi. The back-and-forth exchange of ideas between management and employees.

closed-loop system

A method of controlling a variable by making adjustments based on feedback.

constancy of purpose

One of the 14 points of quality proposed by W. Edwards Deming. Constancy of purpose stresses the importance of maintaining the company vision over the long term.

cost

The amount of money used to produce a product or service.

cost accounting

A type of managerial accounting that stresses identifying, measuring, and controlling costs.

DMAIC

A six step system for process improvement. DMAIC stands for define, measure, analyze, improve, and control.

enterprise

A unit that is organized around a single purpose. A lean enterprise is a company that expands lean practices to include the entire supply chain.

feedback

Information sent back into the control system that allows actual performance to be compared to planned performance.

financial reporting system

A type of business system for collecting and disseminating financial data about the company.

flow

The movement of a product, process, or information through the value stream.

focus on results

An employee's ability to understand the goal he/she is working toward, work to improve the process, and measure his/her progress toward achieving that goal.

green

An ideology that stresses minimizing negative impact on the environment through recycling, reduced consumption, and reduced waste.

holistic thinking

An approach that emphasizes the relationship between parts and the whole.

hoshin planning

A management process that aligns--both vertically and horizontally--an organization's functions and activities with its strategic objectives. Also known as policy deployment and strategy deployment.

infrastructure

The foundation or supporting elements of an entity.

lean enterprise

A company that expands lean practices to include the entire supply chain.

local optimization

The practice of taking responsibility only for a specific area within the organization and maximizing one's individual results at the expense of the whole.

nemawashi

Also known as catchball. The back-and-forth exchange of ideas between management and employees.

part-whole relationship

The idea that the whole is greater than the sum of its parts.

Plan-Do-Check-Act

PDCA. A four-step process used in lean for continuous improvement.

policy deployment

A management process that aligns an organization's functions and activities with its strategic objectives.

revenue

The income received from sales before any expenses are paid.

social responsibility

The recognition that a company is part of a larger community and the activities of the company have an impact beyond its four walls.

standardized work

The act of defining a norm to be conformed to or regulating a process. The transition to lean requires standardization of all aspects of the production process.

supply chain

A complex series of exchanges between multiple companies involved in obtaining raw materials, transforming those materials into a product, and delivering the finished product to the customer.

system

A set of interdependent entities that combine to form an integrated whole.

systemic thinking

Considering the "big picture" and making decisions for the good of the whole organization rather than for the good of the individual.

value added

Any part of the production process that improves the product for the customer. For a process to be value-added, a customer must be willing to pay for it.

value stream mapping

The process of creating a visual layout of all the processes required to make a product.

vision statement

An expression of what the organization hopes to accomplish or become.

visual management

The placement in view of all tools, parts, production activities, and indicators of production system performance, so the status of the system can be understood at a glance by everyone involved.

W. Edwards Deming

A leader in the Japanese post-war industrial revival and total quality management in the U.S.

waste

Any thing or process that does not add value to a product. The goal of lean is to eliminate waste.