Lean Manufacturing services from LeanSavvy Advisors utilizing SCOPE


LeanSavvy Advisors
Providing SYSTEMS that CREATE ORDER, PRODUCTIVITY and EFFICIENCY

 

Lean definitions from LeanSavvy AdvisorsLean Definitions

5S Five terms beginning with "S" utilized to create a workplace suitable for lean production. Sort means to separate needed items from unneeded ones and remove the latter. Simplify means to neatly arrange items for use. Scrub means clean up the work area. Standardize means to sort, simplify and scrub daily. Sustain means to always follow the first four Ss. Sometimes referred to by the Japanese equivalents: seiri, seiton, seiso, seiketsu and shitsuke.
5 Why's The common practice in TQM is to ask “why” five times when confronted with a problem. By the time the answer to the fifth “why” is found, the ultimate cause of the problem is identified. Syn: five W’s. See: root cause analysis. 
7 Wastes From the Toyota Production System - over production, unnecessary waiting, unnecessary transportation, over processing, excess inventory, unnecessary movement and quality defects. Some approaches add an 8th waste — underutilized people.
Activity Based Cost System A cost methodology that assigns costs to activities and cost objects based on the consumption of resources rather than the traditional costing approach in which costs are allocated to products based on some arbitrary bases such as labor. Activity Based Cost System describes various activities (e.g., unit-level, batch-level, product-level, customer-level, and facility-level) that drive a company's costs. The integration of Activity Based Cost System into a CVP model thus recognizes the existence of multiple cost drivers, resulting in the production of better information for management. 
Andon A visual and / or audible communication system used to indicate the current operating condition at a work site.
Assemble-to-Order A production environment where a good or service can be assembled after receipt of a customer's order. The key components (bulk, semifinished, intermediate, subassembly, fabricated, purchased, packing, and so on) used in the assembly or finishing process are planned and usually stocked in anticipation of a customer order. Receipt of an order initiates assembly of the customized product. This strategy is useful where a large number of end products (based on the selection of options and accessories) can be assembled from common components.
Autonomation Stopping a process automatically when a defective part is detected. A concept that a defective unit from a preceding process is never allowed to flow into and disrupt a subsequent process. (also known as "Jidoka")
Available Process Time Net production time available for processing products based on current resource availability.
Capacity The maximum theoretical amount produced by a production process over a standard time period.
Cellular Manufacturing A production approach that uses groupings of manufacturing equipment, tools, and people organized to perform an entire sequence of manufacturing operations in one contiguous physical location (cell). A strategy designed to increase the flexibility of operations in order to produce an increasing variety of products in smaller and smaller quantities while simultaneously reducing operating costs and increasing the utilization of the workforce as variation in volume and mix occur.
Changeover Syn: setup.
Constraint Anything that limits a system from achieving higher performance, or throughput. A bottleneck that severely limits an organization's ability to achieve higher performance relative to its purpose / goal.
Continuous Improvement A philosophy by which individuals within an organization look for ways to always do things better. A pledge to every day, do or make something better than it was before. The improvement of products, processes, and / or services on an ongoing basis. The gains made through continuous improvement activities are generally incremental, small-step improvements. In Japan, the continuous improvement process is often called kaizen.
Critical Equipment Equipment that is essential to the production process or plant operation. May be equipment that has no back-up or is a production constraint.
Critical Path All of the elements in the value stream that a control part follows.
Cycle Time Elapsed time from the beginning of a process to the completion of that process for the production of a single unit. Cycle time is measured, not calculated and may be longer or shorter than takt time. If cycle time for every operation in a complete process can be reduced to equal takt time products can be made in single piece flow.
DFM / A Design for Manufacturability / Assembly. Designing products with manufacturing & assembly processes, tools, quality control measures and related equipment in mind.
Defect A product / part that deviates from specifications or does not meet internal / external customer expectations. All defects are created by errors.
Demand Variability Measures customer demand fluctuations over time using variance and standard deviation.
Down Time Manufacturing resource time lost between the production of the last good piece and the next good piece of the same product. Includes planned and unplanned work stoppages.
Error Any deviation from a specified manufacturing process. Errors can be made by machines or by people and can be caused by previous errors that have occurred. While an error may not produce a defect, all defects are created by errors. When errors are eliminated, defects will not be created.
Error Detection A group-based improvement strategy that is targeted at discovering defects, errors, and equipment abnormalities in production processes.
Error Detection Device Simple and inexpensive methods used to detect errors and prevent them from being passed on to the next step in the manufacturing process or the customer.
Error Proofing A group-based improvement strategy that is targeted at eliminating defects, errors, and equipment abnormalities in production processes before they occur. Using wisdom & ingenuity to create devices that allow you to do your job 100% defect free 100% of the time.
Error Proofing Device Simple and inexpensive methods used to prevent errors from occurring.
External Work Work that is performed while the machine is running. Example: Locating tools and fixtures while the machine is running in preparation for a set-up.
Finished Goods Items that have completed the production process (including test and packaging) and are released / ready for shipment to a customer.
Flexible Automation The ability to switch quickly from one product to another by shortening setup times.
Flow Production Describes how goods are processed, ideally, one piece at a time. It rejects the concept of batch or lot production and encompasses pull or demand processing. Often referred to as "1-piece-flow".
Forecasted Demand Estimate ("guesstimate") of future demand. Many plant production schedules are based on forecasted demand. (Watch me pull a rabbit out of my hat!)
Group Technology Matrix A matrix that analyzes the processes and operations used in the manufacturing of products to help define product families.
Heijunka The act of leveling the variety and/or volume of items produced at a process over a period of time. Used to avoid excessive batching of product types and/or volume fluctuations, especially at a pacemaker process.
Improvement Activity An organized activity focused on improving a process or operation by eliminating waste. Could be a 5 day kaizen activity, 2-3 day mini-kaizen activity or TPM activity.
Internal Work Work that is performed while a machine is stopped. Example: Removing or replacing a tool or looking for tools & fixtures in preparation for a set-up while the machine is stopped.
Jidoka The Japanese term for the practice of stopping the production line when a defect occurs. 
Job Sequence A repeatable order of actions that a worker must perform to produce a quality product.
Just In Time (JIT) Manufacturing A strategy that exposes the waste in an operation, makes continuous improvement a reality and provides the opportunity to promote total employee involvement. Concentrates on making what is needed, when it is needed, no sooner, no later.
Kanban A Japanese term, Kanban is the cornerstone of the just-in-time pull system. Kanban actually means "to put away and to bring out" or "signal". In pull systems, it often refers to a card or other physical device used to signal the previous operation that it is authorized to produce the next unit. A means of communicating need for product or service.
Kaizen A Japanese term for continuous improvement, founded on the principles of doing things better and setting, working toward, and achieving increasingly higher standards. Kaizen is a process improvement methodology used to quickly and routinely identify and eliminate waste from a workflow process to improve performance/competitiveness.
Lean Manufacturing An integrated approach to producing goods and services designed to maximize the efficient use of capital, materials and human resources. A manufacturing method used to achieve higher quality, lower costs and shorter lead times.
Make-to-Order A production environment where a good or service can be made after receipt of a customer’s order. The final product is usually a combination of standard items and items custom-designed to meet the special needs of the customer. Where options or accessories are stocked before customer orders arrive, the term assemble-to-order is frequently used.
Make-to-Stock A production environment where products can be and usually are finished before receipt of a customer order. Customer orders are typically filled from existing stocks, and production orders are used to replenish those stocks.
Malcolm Baldrige Award Recognizes continuous improvements in quality management by US manufacturers, service companies, educational institutes and healthcare providers. Also published a criteria for performance excellence with seven categories. The annual Self-evaluation covers the following seven categories of criteria: Leadership, Strategic Planning, Customer & Market Focus, Information and Analysis, Human Resource Focus, Process Management and Business Results.
Manual Time Time required to manually mount / dismount and visually inspect a work piece at a machine or operation. Time starts when the worker begins work at the machine or process and terminates when they start motion to the next machine or process.
Material Requirements Planning (MRP) A set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials. It makes recommendations to release replenishment orders for material. Further, because it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase. Time-phased MRP begins with the items listed on the MPS and determines (1) the quantity of all components and materials required to fabricate those items and (2) the date that the components and material are required. Time-phased MRP is accomplished by exploding the bill of material, adjusting for inventory quantities on hand or on order, and offsetting the net requirements by the appropriate lead times. 
Material Resource Planning (MRP II) A method for the effective planning of all resources of a manufacturing company. Ideally, it addresses operational planning in units, financial planning in dollars, and has a simulation capability to answer what-if questions. It is made up of a variety of processes, each linked together: business planning, production planning (sales and operations planning), master production scheduling, material requirements planning, capacity requirements planning, and the execution support systems for capacity and material. Output from these systems is integrated with financial reports such as the business plan, purchase commitment report, shipping budget, and inventory projections in dollars. Manufacturing resource planning is a direct outgrowth and extension of closed-loop MRP. 
Multi-Skilled Workers A description for individuals at any level of the organization who are diverse in skill and training. Operators capable of performing a number of different tasks providing the organization with additional flexibility.
Non-Value Added Time An operation or activity that takes time and resources but does not add value to the product sold to the customer. Non-value adding activities include work-in-process, inspection, defects, waiting, and inefficiency.
One Piece Flow Products move through various operations in design, order-taking, and production, one piece at a time and without interruptions, backflows, or scrap. Also called Single Piece Flow.
Opportunity Cost The forgone value of an alternative that is precluded by choosing another alternative.
Overall Equipment Effectiveness (OEE) A Total Productive Maintenance (TPM) measurable. OEE measures the availability, performance efficiency, and quality rate of equipment, in particular, the constraint operation. OEE is part of the Total Productive Maintenance program and improves throughput by eliminating downtime. 
Pareto Chart A vertical bar graph showing the bars in order to size from left to right. Helps focus on the vital few problems rather than the trivial many. An extension of the Pareto Principle, which suggests that the significant items in a given group normally constitute a relatively small portion of the items in the total group.
Point Of Use Storage Locating inventory next to the "point" of use at the assembly line or process instead of in a warehouse or storeroom. (POUS)
Poka-Yoke A Japanese expression meaning "common or simple, mistake proof". It refers to fool-proofing a design such that all ambiguity is removed and it becomes virtually impossible to set up a machine or produce a part or an assembly incorrectly. This is often accomplished through designing the components, tools and assemblies so they will fit together only in the proper orientation and sequence.
Process Excellence A systematic method to measure, analyze and improve business, Process Excellence activities identify critical areas that can cause breakthrough results in market penetration, organizational speed and the cost of doing business.
Product Family A product group that organizes products based on common traits in the production & manufacturing processes.
Production Capacity Sheet A tool used to determine required completion time per unit of output at each process, at each work station and for each part.
Production Control Board Usually a shop floor tool used to monitor and document the performance of a line, cell, process or operation. (i.e. — planned vs. actual output)
Pull Manufacturing based on a known demand signal from a downstream operation. A system of cascading production and delivery instructions from downstream to upstream activities. The upstream supplier only produces when the downstream customer signals a need. Pull is the opposite of push.
Pull System A way of managing shop floor activity that minimizes work-in-process and dramatically improves throughput time by eliminating storage time between operations. A pull-system requires two things: a pull signal and a fixed upper volume limit. A fixed upper volume limit means the operators must stop producing parts whenever they have not received their (pull signal) authorization to produce more. Pull signals are sometimes called kanbans.
Push Manufacturing based on anticipation of need. Upstream processes make whatever is scheduled, whether or not the down stream process needs the item. Inventory is then "pushed" on toward the next step or process — hence the name.
Push System The direct opposite of the pull system. Push systems allow production to continue based on a predetermined schedule. Push systems launch orders into the production system on a scheduled interval and assume that they will come out the end of the process at the end of the designated throughput times. Even the best closed-loop push systems are much less responsive to in-process variation, and therefore much less effective for controlling production and work-in-process than pull systems.
Quality Control Process Charts A simple quality tool that uses the Deming PDCA cycle to identify and resolve the most common issues that arise in a process. Tracks "turnbacks" in a process to identify which issues should be resolved first. Frequently known as QCPC.
Replenishment Time Time from when the supplying process is signaled until material is available for use at the signaling process
Required Waste An activity that is required to be performed but that does not change the size, shape, form, fit or function of the product.
Root Cause The ultimate reason for an event or condition.
Set-up Reduction An operating technique that systematically reduces the time and skill level required to prepare or "set-up" a piece of operating equipment in order to produce small quantities of parts or assemblies. There are several approaches to set-up reduction, such as dedicated set-ups, SMED and FAST.
Setup The work required to change a specific machine, resource, work center, or line from making the last good piece of item A to making the first good piece of item B. The refitting of equipment to neutralize the effects of the last lot produced (e.g., teardown of the just-completed production and preparation of the equipment for production of the next scheduled item). Syn: changeover, turnaround, turnaround time. 
Set-up Time The time required for a specific machine, resource, work center, process, or line to convert from the production of the last good piece of item A to the first good piece of item B. Syn: setup lead time. 
SKU Stock Keeping Unit, the lowest level of product definition for unique selling unit.
Six Sigma Approximately 3 errors per million. Six Sigma means the elimination of variance in the process in order to allow flow using the necessary analytical tools and process.
SMED An approach to set-up reduction. Single Minute Exchange of Dies, the time required to prepare or "set-up" a piece of operating equipment is less then 9 minutes and 59 seconds. Example: Changing the blades on a food processor.
Standard Cost Budgeted frozen inventory value.
Standard Costing Assigns costs to products based on expected costs of resources used, which may differ from both normal and actual costs. Under a standard-costing system, standard costs are used for product-costing purposes as well as for control purposes. The costs entered into Work-in-Process Inventory are standard costs. From that point forward, standard costs flow through all the manufacturing accounts. When goods are finished, the standard cost of the finished goods is removed from the Work-in-Process Inventory account and transferred to the Finished-Goods Inventory account. When goods are sold, the standard cost of the goods sold is transferred from the Finished-Goods Inventory account to Cost of Goods Sold.
Standard Work Specifies the tasks defining the best way to get a job done in the amount of time available while ensuring the job is done right the first time, every time. It provides a routine for consistency of an operation and a basis for improvement. Establishes a routine for repetitive tasks, establishes the relationship between man and environment, provides a basis for improvement by defining the normal and highlighting the abnormal. A precise description of each work activity specifying cycle time, takt time, the work sequence of specific tasks and the minimum inventory of parts on hand needed to conduct the activity. It also details the motion of the operator and the machine processing sequence
Standard Work Combination Sheet Defines the order of actions that each operator must perform within a given takt time. Illustrates the relationship between the processes manual time(s), automatic time(s), walking time(s), waiting time(s) and the takt time.
Standard Work Sheet A visual control tool to help the operator, team leader and manager maintain a standardized operation routine. It details the motion of the operator and the sequence of actions. Serves as a guideline for operators and supervisors to show where and in what sequence operations are completed in the work area.
Standard Work in Process Minimum stock that is necessary to perform the job safely and successfully within a given cycle time. (SWIP) Also known as Standard In-Process Stock.
Supermarket A pull production technique. Materials in a supermarket are pulled off the "shelves" by the "customer". A supply of parts are stored near the cell / line and as these parts are used, they are replenished by the upstream process.
Supply Chain The combination of processes from product definition through delivery and payment from the customer. (Includes both information based and physical processes.)
TPM Total Productive Maintenance. TPM is a process that maximizes the productivity of equipment for its entire life. TPM is a process not a program. It utilizes Autonomous Maintenance, Preventive Maintenance, and resources of all employees in the plant to make sure that equipment is available when needed and produces at the rate that is required without defects.
Takt time Sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean production system. It is computed as the available production time divided by the rate of customer demand. Takt time is usually expressed in seconds. For example, assume demand is 10,000 units per month, or 500 units per day, and planned available capacity is 420 minutes per day. The takt time = 420 minutes per day/ 500 units per day = 0.84 minutes per unit. This takt time means that a unit should be planned to exit the production system on average every 0.84 minutes.
Traditional Manufacturing Refers to batch and queue operations that schedule using forecast, push and MRP techniques.
Turnback A QCPC term meaning ANY deviation from established standard process — developed by using design criteria, process parameters, standard work and the precise method in which a product SHOULD BE manufactured. Everything that is deviant from the ideal process is a turnback.
U-shaped cells In cellular manufacturing, workcenters configured in horizontal "U" shapes, with operators occupying positions within the "U". This configuration allows operators to more easily move between positions, allowing adjustment of the number of operators in a cell based on the work load present at a given time.
Value Added Time Time during which an action or process changes the size, shape, form, fit or function of the product.
Value Stream Map A lean manufacturing tool that illustrates the material flow, information flow and manufacturing & processing data to identify improvement opportunities. (Reference book: Learning to See, by the Lean Enterprise Institute.)
Visual Controls The control of authorized levels of activities and inventories in a way that is instantly and visibly obvious. This type of activity and inventory control is used in a workplace organization where everything has an assigned place and is in its place. 
Visual Factory An environment where it is easy for everyone to "see" the current status of the process or "system" and the visuals give immediate information to the individuals to understand 'how the operation is doing'.
Waste

Any activity that does not add value to the good or service in the eyes of the consumer. A by-product of a process or task with unique characteristics requiring special management control. Waste production can usually be planned and somewhat controlled. Scrap is typically not planned and may result from the same production run as waste.In lean manufacturing, costs are reduced by reducing waste within a system. There are seven categories of waste:
1). Overproduction (excess or too early)
2). Waiting (queuing delays)
3). Transportation (unneeded movements)
4). Pprocessing (poor process design)
5). Motion (activities that do not add value)
6). Inventory (stock that is sitting is accumulating cost without necessarily providing value)
7). Defective units (scrap or rework)

WIP A good or goods in various stages of completion throughout the plant, including all material from raw material that has been released for initial processing up to completely processed material awaiting final inspection and acceptance as finished goods inventory. Many accounting systems also include the value of semifinished stock and components in this category.
Work Cell An arrangement of people, machines, materials and methods such that processing steps are adjacent and in sequential order so that parts can be processed one at a time (or in some cases in a constant small batch that is maintained through the process sequence). The purpose of a cell is to achieve and maintain efficient continuous flow.

 


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