Transforming Lean into Business Results 340

A3 report

A Toyota-pioneered practice of getting the problem, the analysis, the corrective actions, and the action plan down on a single sheet of large (A3) paper.

benchmarking

A system for improving product or service quality. Internal benchmarking, strategic benchmarking, and generic cross-industry studies are the three main types of benchmarking used in lean.

continuous improvement

The belief that an organization must constantly measure the effectiveness of its processes and strive to meet more difficult objectives to satisfy customers.

cost

Typically expressed as a dollar amount, the amount of time, money, and labor spent to create a product or perform a service. Placing primary emphasis on developing culture and quality, as well as ensuring flexible responsiveness, helps to reduce overall cost.

countermeasure

An action taken in response to another action. Kaizen events involve a cross-functional team that comes together for two to five days to work on a targeted problem area and implement countermeasures to the problem.

culture

The values, beliefs, and habits that bind together a group of people and give them a sense of identity. A lean culture develops people through educating employees, respecting and empowering individual employees, and providing employees with a healthy and safe work environment.

customer survey

Tool used to gather information from external customers about product quality. Customer surveys help to identify specific areas within a system that require special attention to ensure improvement.

cycle time

The actual time it takes to perform a task and forward it to the next step. One of the major goals of lean is to match cycle time to the customer's requirements.

downtime

Unproductive blocks of time during which machine and equipment operations cease, often due to mechanical problems. Downtime for maintenance is considered an integral part of the lean system.

ergonomics

The study of designing devices and arranging workspaces to decrease operator discomfort and fatigue and increase productivity.

external customer

An outside organization or individual that receives a product or service from a company. External quality is the degree of satisfaction of external customers.

external quality

The degree of satisfaction of external customers. Examining market share and reorder rates, as well as using quality function deployment, helps to measure and improve external quality.

extrinsic motivation

The drive to act based on possible external rewards. Extrinsic motivation might include financial or other incentives to reward ideas.

flexible responsiveness

A company's ability of ensuring that customers receive the right products, in the right quantity, and at the right time. A JIT system helps to ensure a company's flexible responsiveness.

gemba

The Japanese term for "actual place," often used for the shop floor or any place where value-creating work actually occurs. Gemba walks are a means of gathering real-time, first-hand information on the status of production processes.

gemba walk

A means of gathering real-time, first-hand information on the status of the production process by walking around the plant and observing what is actually happening.

generic cross-industry study

Used in lean to gauge competitive impact, the process of visiting other non-related companies and observing and identifying their successful approaches to issues within their industry. The lean company then works to implement these practices by tweaking them to suit its specific needs.

green practice

An operation implemented to help protect and preserve the environment. Lean companies use green practices.

idea system

A process used in lean in which employees notify management of problems and opportunities for improvement and recommend solutions. In lean, idea systems are a key means of empowering employees.

internal benchmarking

Used in lean to gauge competitive impact, the process of comparing processes from within a company. By providing data about each individual process, a company can see which processes are yielding optimal results and apply these attributes to other processes.

internal customer

Departments or employees within a company that rely on the products, services, or other forms of cooperation from other departments or employees in the company. Internal quality is the degree of satisfaction of internal customers.

internal quality

The degree of satisfaction of internal customers. Examining value- and non-value-added steps, as well as measuring cycle time, helps to measure and improve internal quality.

intrinsic motivation

The drive to act based on possible personal factors. Intrinsic motivation includes recognition by peers, the opportunity to contribute to a broader company goal, and the personal growth that stems from development of leadership skills.

Just in Time

JIT. An inventory strategy in which products are delivered at the time they are needed rather than on a set delivery schedule. A JIT system helps to ensure flexible responsiveness.

kaizen event

A multi-day, hands-on event that targets a particular problem area within a company. Kaizen events result in dramatic changes carried out by a cross-functional team.

lockout/tagout

A method of protecting employees from accidental machine startup through proper locking and labeling of machines that are hazardous to nearby employees.

machine guard

A shield or device covering hazardous areas of a machine to prevent contact with body parts or to control hazards like chips from exiting the machine.

maintenance

The necessary and basic support and repair of machines. Maintenance helps reduce downtime and ensure worker safety.

market share

The percentage of the total available demand or potential demand for products or services in a category that is being met by a company. Examining market share helps a company to gauge external customer satisfaction.

measure

Any process implemented to achieve a specific goal. Placing primary emphasis on developing culture and quality, as well as ensuring flexible responsiveness, helps to reduce overall cost.

metric

Any form of measurement. Metrics are important in lean because everything that can be measured can be improved.

non-value added

Activities that do not contribute to the product or the process and should therefore be eliminated. Non-value-added steps are waste.

one piece flow

Making and moving one piece at a time. One piece flow creates a smooth, steady flow of products or services.

OSHA

The Occupational Safety and Health Administration. OSHA is a government agency under the U.S. Dept. of Labor that helps employers reduce injuries, illnesses, and deaths in the workplace.

personal protective equipment

Any of various safety equipment that workers wear or use to prevent injury in the workplace. Safety glasses are common personal protective equipment (PPE).

pull system

A component of the JIT system, a material management system in which parts are not delivered to machines until they are needed. Pull systems help to ensure flexible responsiveness.

quality

Conformance to a set of standards or specifications. A lean organization seeks to optimize both external quality and internal quality.

quality function deployment

QFD. A method for translating customer requirements into engineering specifications when developing new products. The purpose of QFD is to determine the needs of the customer and establish a plan for meeting those needs.

reorder rate

The frequency at which one product is ordered more than once. Examining reorder rates helps a company to gauge external customer satisfaction.

safety

A cultural enabler that eliminates waste and increases productivity by enhancing ergonomics and measures to guard against injury in the workplace.

safety fence

A barrier that prevents employees from entering dangerous areas.

scientific thinking

A method of investigating and discovering in which a problem is identified, a hypothesis is formulated and tested, data is collected and analyzed, and conclusions are made based on the data. In lean, scientific thinking is used to foster a cycle of continuous improvement rather than provide a means to an end.

strategic benchmarking

Used in lean to gauge competitive impact, the process of comparing a company's approaches to long-term, overall profitability with those used by its competitors. Typically, strategic benchmarking evaluates processes only at the managerial, rather than operational, level.

supply chain

A network of companies that exchange resources such as materials and information to deliver products to customers. The success of a lean initiative relies heavily on enabling the flow of value across the supply chain.

takt time

The rate at which the customer requires a part to be produced. Cycle time should always be adjusted until it meets takt time.

total productive maintenance

Also called TPM, an aproach used in manufacturing to increase production and reduce waste through continuous attention to the condition of production machinery and facilities.

value

A real or perceived quality that satisfies the needs and wants of a customer. The success of a lean initiative relies heavily on enabling the flow of value across the supply chain.

value added

Any part of the production process that improves the product for the customer. A value stream map seeks to identify which areas of the value stream are value added and which are non-value added.

value stream

The series of activities within a supply chain that add value from the perception of the customer. A value stream map seeks to identify which areas of the value stream are value added and which are non-value added.

value stream map

A sophisticated flow charting method that uses symbols, metrics, and arrows to help visualize processes and track performance. This method helps determine which steps of a process add value and which do not.