91614186 the Lean Agile and World Class Manufacturing Cookbook

8/18/2019 91614186 the Lean Agile and World Class Manufacturing Cookbook

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AGILE AND WORLD CLASS MANUFACTURING

COOKBOOKCOMPILED BY FRANCOIS DE VILLIERS 2008-02-22


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THE LEAN, AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 3 OF 107

ACKNOWLEDGEMENTS AND COPYRIGHT

This book was never intended for publication – it evolved from my needing to learn Lean Manufacturing concepts very

quickly when I was appointed as Logistics Director at an international manufacturing company in 2006. What started as a

glossary quickly grew to a fairly comprehensive resource on the key and supporting concepts of Lean Manufacturing.

Realising the inherent value in these concepts, I presented the first copy of the book to my former employer as a farewell

gift and kept on amending it for more than two years by liberally cutting and pasting from all over the www.

As it stands now I believe this is a unique and valuable tool for all lean practitioners, too good not to share with others.

Not contemplating publication at that time of compilation I did not keep meticulous records of my sources at the time of

compilation. Much material came from the web-sites listed at the back of the book, but countless others were used. While

I may be guilty of copyright infringement, this is entirely unintentional. In any event, the disjointed structure of this book

makes it worthless without one of the recognized texts on the subject, also listed at the back of the book. So please

support the authors and publishers who make a living out of their writing and books.

As I publish this collection on Scribd it now enters the public domain. Please feel free to copy and share this work with

others that may find it of value. However I retain copyright on this collection . Therefore please reproduce this document in

its entirety only, including this notice.

Francois de Villiers ([email protected])

PS. The document has never been proof-read in its entirety. Please contact me should there be any glaring errors or

omissions.


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INTRODUCTION TO LEAN MANUFACTURING

From Wikipedia, the free encyclopedia

Lean manufacturing is a management philosophy focusing on reduction of the 7 wastes (Over-production, Waiting time,

Transportation, Processing, Inventory, Motion and Scrap) in manufactured products. By eliminating waste (muda), quality

is improved, production time is reduced and cost is reduced. Lean "tools" include constant process analysis (kaizen), "pull"

production (by means of kanban) and mistake-proofing (poka yoke).

One crucial insight is that most costs are assigned when a product is designed. Often an engineer will specify familiar, safe

materials and processes rather than inexpensive, efficient ones. This reduces project risk, that is, the cost to the engineer,

while increasing financial risks, and decreasing profits. Good organizations develop and review checklists to review

product designs.

The key lean manufacturing principles:

• Perfect first-time quality - quest for zero defects, revealing & solving problems at the source

• Waste minimization – eliminating all activities that do not add value & safety nets, maximize use of scarce

resources (capital, people and land)

• Continuous improvement – reducing costs, improving quality, increasing productivity and information sharing

• Pull processing: products are pulled from the consumer end, not pushed from the production end

• Flexibility – producing different mixes or greater diversity of products quickly, without sacrificing efficiency at lower

volumes of production

• Building and maintaining a long term relationship with suppliers through collaborative risk sharing, cost sharing

and information sharing arrangements.

Lean is basically all about getting the right things, to the right place, at the right time, in the right quantity while minimizing

waste and being flexible and open to change.

History of Lean Manufacturing

The basic principles of lean manufacturing date back to at least Benjamin Franklin. Poor Richard's Almanack says of

wasted time (a basic principle of the Theory of Constraints), "He that idly loses 5s. [shillings] worth of time, loses 5s., and

might as prudently throw 5s. into the river. He that loses 5s. not only loses that sum, but all the other advantages that

might be made by turning it in dealing, which, by the time a young man becomes old, amounts to a comfortable bag ofmoney." He added that avoiding unnecessary costs could be more profitable than increasing sales: "A penny saved is two

pence clear. A pin a-day is a groat a-year. Save and have."

Franklin's The Way to Wealth says the following about carrying unnecessary inventory, a concept that appeared two

centuries later in Eliyahu Goldratt's The Goal. "You call them goods; but, if you do not take care, they will prove evils to

some of you. You expect they will be sold cheap, and, perhaps, they may [be bought] for less than they cost; but, if you

have no occasion for them, they must be dear to you. Remember what Poor Richard says, 'Buy what thou hast no need of,

and ere long thou shalt sell thy necessaries.' And again, 'At a great penny worth pause a while:' He means, that perhaps

the cheapest is apparent only, and not real; or the bargain, by straightening thee in the business [reducing your available

cash, i.e. straightening your circumstances], may do thee more harm than good. For in another place he says, 'Many have

been ruined by buying good penny worths'." Henry Ford cited Franklin as a major influence on his own business practices,

which included Just-in-time manufacturing.

The concept of waste being built into jobs and then taken for granted was noticed by motion efficiency expert Frank

Gilbreth, who saw that masons bent over to pick up bricks from the ground. The bricklayer was therefore lowering and

raising his entire upper body to get a 5 pound (2.3 kg) brick but this inefficiency had been built into the job through long

practice. Introduction of a non-stooping scaffold, which delivered the bricks at waist level, allowed masons to work about

three times as quickly, and with less effort.

Frederick Winslow Taylor, the father of scientific management, introduced what are now called standardization and best

practice deployment: "And whenever a workman proposes an improvement, it should be the policy of the management to

make a careful analysis of the new method, and if necessary conduct a series of experiments to determine accurately the

relative merit of the new suggestion and of the old standard. And whenever the new method is found to be markedly


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to the concepts of just-in-time (JIT) and the Toyota production system in 1980. Subsequently I had the opportunity to

witness its actual application at Toyota on one of our numerous Japanese study missions. There I met Mr. Taiichi Ohno,

the system's creator. When bombarded with questions from our group on what inspired his thinking, he just laughed and

said he learned it all from Henry Ford's book."


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A-Z OF LEAN

1B

10 COMMANDMENTS OF IMPROVEMENT: Commonly cited rules for improvement.


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10 COMMANDMENTS OF KAIKAKU: by Hiroyuki Hirano

1. "Throw out the traditional concept of manufacturing methods."

2. "Think of how the new method will work; not how it won't work."

3. "Don't accept excuses. Totally deny the status quo."

4. "Don't seek perfection. A 50% implementation rate is fine as long as it is done on the spot."

5. "Correct mistakes the moment they are found."

6. "Don't spend money on Kaikaku."

7. "Problems give you a chance to use your brains."

8. "Ask 'Why' five times."

9. "Ten person's ideas are better than one person's knowledge."

10. “Kaikaku knows no limits.”

16 CATCH PHRASES OF 3P: The 16 Catch Phrases of 3P are used as guidelines for designing processes according to

Lean manufacturing principles of JIT (Takt, Flow, Pull) and Jidoka. The 16 Catch Phrases are:

1. Production preparation should be lightning fast. Avoid over planning, use what you have, act now.2. Build & layout equipment for smooth material flow. Flow like a river, not like a dam.3. Use additive equipment. Buy many speedboats instead of one tanker.4. Build equipment that is easy to set up. Design in the separation of internal and external tasks.5. Make equipment easy to move. No roots, no vines, no pits. Put wheels on everything.6. Use multi-purpose equipment. Simple, "just fast enough" machines that perform one function well.7. Make operator work stations narrow. Town houses, not ranch houses.8. Layout equipment for ease of operator movement. Remove obstruction to smooth human motion.9. Eliminate wasted machine cycle time. Design out 'air cutting' and minimize machine movements.10. Build equipment for small, swift flow lines. Enable Standard Work (Takt, Work Sequence, SWIP).


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11. Use short, vertical flow lines. Vertical = advancing process flow, horizontal = functional.12. Build equipment for one-piece pull. Machine level. This is probably the most critical one.13. Build in quick changeover. Design in SMED at the machine level.14. Link machines for smooth loading and unloading. Line stops when WIP on the l ine is "full work".15. Use multiple lines & rectified flows. 'Rectified' is an odd term, electrical engineers will get it.16. Spiral upwards to jidoka. There are 5 steps to j idoka, which should be pursued a step at a time.

2

20 KEYS TO WORKPLACE IMPROVEMENT: Iwao Kobayashi’s list of 20 items to gain focus for workplaceimprovement that can be used in manufacturing audits. It reads very much like a ‘who’s who’ of manufacturing

innovations and hence makes a very useful checklist. This is a useful list, but of course it still does not include

everything. A practical exercise is to take this and use it either to evaluate your current workplace or as a discussion

forum, ensuring people understand it all and adding to it other areas that you need to add for your company. These are:

1. Clean and tidy . Everywhere and all of the time.2. Participative management style . Working with all people to engage their minds and hearts into their work as well as theirhands.3. Teamwork on improvement . Focused on teamwork to involve everyone in enthusiastic improvements.4. Reduced inventory and lead time . Addressing overproduction and reducing costs and timescales.5. Changeover reduction . Reducing times to change dies and machines to enable more flexible working.6. Continuous improvement in the workplace . Creating improvement as a ‘way of life’, constantly making work better and theworkplace a better place to work.7. Zero monitoring . Building systems that avoid the need for ‘machine minders’ and instead have people who are working onmaintaining a number of machines.

8. Process, cellular manufacturing . Creating interconnected cells where flow and pull are the order of the day.9. Maintenance . Maintaining of machines by people who work on them, rather than external specialists. This allows constantadjustment and minimum downtime.10. Disciplined, rhythmic working . Synchronised total systems where all the parts work together rather than beingindependently timed.11. Defects . Management of defects, including defective parts and links into improvement.12. Supplier partnerships . Working with suppliers, making them a part of the constantly-improving value chain, rather thanfighting with them.13. Waste . Constant identification and elimination of things that either do not add value or even destroy it.14. Worker empowerment and training . Training workers to do the jobs of more highly skilled people, so they can increasethe value they add on the job.15. Cross-functional working . People working with others in different departments and even moving to gain experience inother areas too.16. Scheduling . Timing of operations that creates flow and a steady stream of on-time, high-quality, low-cost products.17. Efficiency . Balancing financial concerns with other areas which indirectly affect costs.18. Technology . Using and teaching people about more complex technology so they can use and adapt to it, bringing in thelatest machines and making them really work.19. Conservation . Conserving energy and materials to avoid waste, both for the company and for the broader society and

environment.20. Site technology and Concurrent Engineering . Understanding and use at all levels of methods such as ConcurrentEngineering and Taguchi methods.


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33C’s: Concern, Containment, Countermeasure Problem solving approach, sometimes referred to as 3C. Initial problem isdefined and stated as a Concern. Containment action is taken to protect the customer (internal and/or external). Then, afterroute cause analysis with the problem solving cycle, PDCA, Countermeasure is installed to prevent recurrence.

3Ds: Working conditions or jobs that are dirty, dangerous, or difficult. In Japanese “San Ke”, the K's stand for kitanai,

kiken, and kitsue.

3 ELEMENTS OF DEMAND: The three drivers of customer satisfaction are Quality, Cost, and Delivery.

3 ELEMENTS OF JIT: The three elements of JIT are 1) takt time, 2) f low production, and 3) the downstream pull system.

3 EVILS OF MEETINGS: 1) Meet but don’t discuss, 2) Discuss but don’t decide, 3) Decide but don’t do

3 GEN PRINCIPLE: The three principles are 1) shop floor (gemba), 2) the actual product (gembutsu), and 3) the facts

(genjitsu). The key to successful kaizen is to going to the shop floor, working with the actual product and getting the facts.

3MU: See Muda, Mura, Muri

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. See 16 Catch Phrases of 3P .

3P (New): Purpose, Process, People (sometimes also Data). An archetype first used by Collins, James C. and Porras

in Built to Last and popularized in the lean movement by by Jim Womack.


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For lean enterprises to evolve beyond the current "tool age" focused on implementing individual methods such as value-

stream mapping, kaizen, kanban, etc. to a new age focused on implementing lean management, managers and executives

must think differently about lean. The key is to focus on the fundamental issues of Purpose, Process, People, according to

Womack who led the MIT research team that coined the term "lean".

• Purpose: means the organization cost-effectively solves the customer's real problems so the enterprise can

prosper.

• Process : means the organization assess each major value stream to make sure each step is Valuable, Capable,

Available, Adequate, Flexible, and that all the steps are linked by Flow, Pull, and Leveling.

• People: means that every important process in the organization has someone responsible for continually

evaluating that value stream in terms of business purpose and lean process. Is everyone touching the value

stream actively engaged in operating it correctly and continually improving it

44 CONDITIONS OF DELIVERY: Possible conditions are Scheduled Time, Unscheduled Time, Scheduled Quantity,

Unscheduled Quantity. See Futeiki, Futeiryou, Teike, Teiryou.

4P’s OF THE TOYOTA WAY: Philosophy, Process, People (Partners), Problem Solving


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4 W's & 1H: Who, What, Where, When and How. A useful tool to help develop an objective and a concise statement of the

problem.

55Cs: Alternate English translation used to describe the same stages of the 5Ss. 5 C’s is a 5 step technique very similar to5S to stabilise, maintain and improve the safest, best working environment to support sustainable Quality, Cost and Delivery.

Clear Out ;Separate the essential from the non essentialConfigure ; A place for everything and everything in its placeClean and Check ; Manualy clean to spot abnormal conditionsConformity ; Ensures that the standard is maintained and improvedCustom and Prctice ; Everyone follows the rules, understands the benefits and contributes to the improvement

5M COMPONENTS OF TECHNOLOGY: Technology consists of the following five elements, or what we may call the fiveMs. Modern technology must have all of these elements to function properly.

1. Raw materials and resources (including energy): M12. Machines and equipment: M23. Manpower (engineers and skilled workers): M34. Management (technology management and management technology): M45. Markets for technology and its products: M5

5M OF PRODUCTION: A method for managing resources in gemba—specifically those known as "5M"—manpower,machine, material, method, and measurement. Understanding these factors and the establishment of standards are keysteps in strengthening the production processes.

5M's and E: Methods, materials, manpower, machines, measurement and environment. Also se PEMPEM.

5 PRINCIPLES OF LEAN THINKING: Lean thinking emphasises the elimination of waste and the adoption of the following

five principles:

* Specify what does and does not create value from the customer's viewpoint

* Identify the whole value stream

* Make information and products flow

* Only make or supply what is pulled by the customer

* In pursuit of perfection.


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5S: The principle of waste elimination through workplace organization. Derived from the Japanese words seiri, seiton, seiso,seiketsu, and shitsuke (collective in Japanese “Go Esu”). In English the 5S are sort, straighten, sweep, standardize, andself-discipline.

The discipline of 5S is a fundamental building block for Lean Manufacturing or the Lean Office. Good 5S improves quality,cost, safety, the customer experience, and enables World Class Performance. It is easily applied to any business and any

process, by anyone. There are many reasons to begin your Lean journey with 5S:• It can be done today• Everyone can participate• Waste is made visible• Has a wide area of impact

o Improves set up timeso Improves qualityo Improves safetyo Improves moraleo Improves productivity

There is an order and logic to how 5S is carried out. It doesn’t make sense to start by arranging things neatly, if most of thosethings are not needed. The five ‘S’ words below are the steps of 5S.

Step Name Action Catch Phrase

1 Sort Remove unnecessary items from the workplace “When in doubt, throw it out”

2 Straighten Locate everything at the point of use“A place for everything, and everything in itsplace”

3 Sweep Clean and eliminate the sources of filth “The best cleaning is to not need cleaning”

4 Standardize Make routine and standard for what good lookslike

“See and recognize what needs to be done”

5 Self-discipline Sustain by making 5S second nature “The less self-discipline you need, the better”


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5S KAIZEN RADAR CHART: Graphical representation of score out of 5 for each S of 5S.

4.4

2.2

1.9 2.7

3.70

5Sort

Straighten

SweepStandardize

Self-

Discipline


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5 WHY: A simple but effective method of analyzing and solving problems by asking ‘why?’ five times (or as many times as

needed to find the root cause).

6 6M: Same as 5M of Production with the addition of Mother Nature. Also see PEMPEM . Other definitions:

• Machines

• Methods• Materials• Measurements

• Milieu (Mother Nature, surroundings, environment)

• Manpower (People/mainly physical work)

• Mindpower (Also people/mainly brain work)

• Management (separate from Manpower/People because it considers Tampering)

• Money

• Miscellaneous

• Markets (including Products)

• (the) Moon (so far unknown cause)

6 MAJOR LOSSES: OEE (Overall Equipment Effectiveness) is used to identify and attack what are called the Six Big

Losses of TPM. These losses are the most common causes of lost time and efficiency of production equipment. See

OEE, TPM.

1. Breakdowns and Failures

A loss of equipment function needed to perform a operation. Causes:• Overloading the machine• Loose bolts and nuts• Excessive wear• Lack of oil• Contamination

2. Set-up and Adjustments Time lost during changeover from the current product to the next product, or changing the settings during a run. Causes:

• Remove tooling• Find tooling• Attaching new tooling• Adjust new settings

3. Idling and Minor Stops Brief stoppages due to 'insignificant' problems. Causes:

• Parts stuck in a chute

• Removing chips• Malfunction of sensors• Program error

4. Reduced Speed Loss when machine operates below design standard speeds. Causes:

• Machine wear• Human intervention• Tool wear• Overloading machine

5. Defects Time lost to making scrap, doing rework, or managing defective parts. Causes:

• Manual error• Bad material


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• Tool breakage• Program error

6. Startup and Yield Time it takes a machine to 'warm up' to full production after a period of downtime. Causes:

• Slowly bringing machines up to speed• Raising ovens to set temperature• Running off excess material• Process related loss of material.

OEE LossCategory

Six Big LossCategory

Event Examples Comment

Breakdowns• Tooling Failures• Unplanned Maintenance• General Breakdowns• Equipment Failure

There is flexibility on where to set the thresholdbetween a Breakdown (Down Time Loss) and aSmall Stop (Speed Loss).

D o w n T i m e L o s s

( L o s s e s t h a t D e t e r i o r a t e

A v a i l a b i l i t y R a t e )

Setup andAdjustments

• Setup/Changeover• Material Shortages• Operator Shortages• Major Adjustments• Warm-Up Time

This loss is often addressed through setup timereduction programs.

Small Stops • Obstructed Product Flow

• Component Jams• Misfeeds• Sensor Blocked• Delivery Blocked• Cleaning/Checking

Typically only includes stops that are under five

minutes and that do not require maintenancepersonnel.

S p e e d L o s s


P e r f o r m a n c e R a t e )

Reduced Speed• Rough Running• Under Nameplate Capacity• Under Design Capacity• Equipment Wear• Operator Inefficiency

Anything that keeps the process from runningat its theoretical maximum speed (a.k.a. IdealRun Rate or Nameplate Capacity).

Startup Rejects• Scrap• Rework• In-Process Damage

• In-Process Expiration• Incorrect Assembly

Rejects during warm-up, startup or other earlyproduction. May be due to improper setup,warm-up period, etc.

Q u a l i t y L o s s


Q u a l i t y R a t e )

Production Rejects• Scrap• Rework• In-Process Damage• In-Process Expiration• Incorrect Assembly

Rejects during steady-state production.

(Currently, JIPM identifies cutting blade losses as a seventh loss. Since this is not a common loss to all machines, cutting blade lossesshould be categorized as either performance or downtime losses for the purpose of calculating OEE.)


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6 RULES OF KANBAN: A successful kanban implementation requires stable processes and a discipline of following

procedures and rules. Kanban works only if you have reliable equipment, good quality, a stable workforce, even demand,

and the practice of following standard and procedures. A kanban system can be made to work where these problems

exist but at higher inventory levels unless some of these problems are addressed. Thee six prerequisites for using kanban

are:

1. Downstream pull of material. The downstream process takes material when needed from the upstream process. If the

producer process delivers finished materials downstream, this is push. If the supermarket is located at the consumer process

(downstream) instead of the producer process (upstream) this is not a true pull system.

2. Upstream replenishmentof the quantity the customer process withdraws. This rule prevents overproduction. No parts can be

produced or moved without kanban providing the signal. The actual quantity in the container must equal the kanban quantity

total. The upstream process only produces what the downstream process takes away.

3. Zero defects passed on downstream. Built-in quality is a must, rather than inspect-in quality or rework-in quality. Calculating

the kanban quantities means taking out the slack in the system. Defective materials passed downstream will create line stops

and confusion. This must be avoided to have a smoothly flowing operation.

4. Heijunka scheduling. Smoothing the schedule by averaging the volume and mix allows for lower safety factors in the kanban

calculation. Without this you may end up carrying more inventory. A kanban system only functions when you know what you

will produce tomorrow. There must be a daily schedule based on monthly production requirements.

5. Kanban attachment to the actual part or actual container. The kanban card must be attached to the actual part in order to

promote visual management.

6. Reduce kanbans to identify problems and drive kaizen activity. Removing kanban cards from the system exposes part

shortages, line stoppages, and other problems that can help encourage further kaizen activity.

Kanban systems require training and awareness of the importance of following and maintaining the sequence dictated by

Kanban. These six rules help insure that habits of batch & queue push production do not interfere with smooth flow and

pull.

6S: Same as 5S with the addition of Safety

7


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7 DEADLY SINS OF QUALITY (AND LEAN): Coined by Prof. John Dew in ASQ Quality Journal.

• Placing budgetary considerations ahead of quality.

• Placing schedule considerations ahead of quality.

• Placing political considerations ahead of quality.

• Being arrogant.

• Lacking fundamental knowledge, research or education.

• Pervasively believing in entitlement.• Practicing autocratic behaviors, resulting in "endullment."

7 FLOWS: Man, Machine, Information, Engineering (& Tools), Raw Material, Work-In-Process, and Finished Goods

Inventory. “All problems can be solved by looking at and understanding the 7 FLOWS” – Nakao

7 NEW TOOLS: Problem solving tools used for kaizen and Hoshin Kanri activities. They are 1) matrix diagram, 2)

relationship diagrams, 3) process decision program charts, 4) activity network diagrams, 5) radar charts, 6) tree

diagrams and 7) affinity diagrams.

7 TOOLS OF QC: Ishikawa’s 7QC Tools which revolutionized Japan and the world in the 60’s and 70’s. Data gathering

and analysis tools used for kaizen activities originally by QC Circles. They are 1) check sheets, 2) cause and effect

diagrams, 3) Pareto diagrams, 4) histograms, 5) graphs, 6) scatter diagrams, and 7) broken line graphs (control charts).

7 WASTES OF PRODUCTION: There are 7 types of waste that describe all wasteful activity in a production environment.

Elimination of the 7 wastes leads to improved profits. The 7 wastes are 1) Overproduction, 2) Transportation, 3) Motion, 4)

Waiting, 5) Processing, 6) Inventory, and 7) Defects. Use the acronym 'DOTWIMP' to remember the 7 Wastes of Lean.

The following seven categories or forms of waste easily remembered as COMMWIP:

• Correction

• Over-production

• Movement of Material

• Motion (excess for people)• Waiting

• Inventory

• Process/Procedure (lack or faulty)

See Muda, Nanatsunomuda .

The activities that comprise work can be grouped in three categories:1) Value-added work2) Non value-added work3) Waste

Customers will pay for value-added work, and sometimes the non value-added. Customers will not pay for waste. The seventypes of waste are:

• Overproduction

• Transportation• Waiting• Motion• Processing• Inventory• Defects

The 7 Wastes –“Muda”

Definition Examples Causes Countermeasures

Over- production

Producing more than thecustomer needs rightnow

Producing product to stock basedon sales forecastsProducing more to avoid set-upsBatch process resulting in extraoutput

ForecastingLong set-ups“Just in case” forbreakdowns

Pull system schedulingHeijunka – level loadingSet-up reductionTPM

Transportation Movement of productthat does not add value

Moving parts in and out of storageMoving material from oneworkstation to another

Batch productionPush productionStorageFunctional layout

Flow linesPull systemValue StreamorganizationsKanban

Motion Movement of people thatdoes not add value

Searching for parts, tools, prints,etc.

Workplace disorganizationMissing items

5SPoint of Use Storage


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Sorting through materialsReaching for toolsLifting boxes of parts

Poor workstation designUnsafe work area

Water SpiderOne-piece flowWorkstation design

Waiting Idle time created whenmaterial, information,people, or equipment isnot ready

Waiting for partsWaiting for printsWaiting for inspectionWaiting for machinesWaiting for informationWaiting for machine repair

Push productionWork imbalanceCentralized inspectionOrder entry delaysLack of priorityLack of communication

Downstream pullTakt time productionIn-process gaugingJidokaOffice KaizenTPM

Processing Effort that adds no valuefrom the customer’sviewpoint

Multiple cleaning of partsPaperworkOver-tight tolerances

Awkward tool or part design

Delay between processingPush systemCustomer voice not

understoodDesigns “thrown over thewall”

Flow linesOne-piece pullOffice Kaizen

3PLean Design

Inventory More materials, parts, orproducts on hand thanthe customer needs rightnow

Raw materialsWork in processFinished goodsConsumable suppliesPurchased components

Supplier lead-timesLack of flowLong set-upsLong lead-timesPaperwork in processLack of ordering procedure

External kanbanSupplier developmentOne-piece flow linesSet-up reductionInternal kanban

Defects Work that containserrors, rework, mistakesor lacks somethingnecessary

ScrapReworkDefectsCorrectionField failureVariationMissing parts

Process failureMisloaded partBatch processInspect-in qualityIncapable machines

Gemba SigmaPokayokeOne-piece pullBuilt-in quality3PJidoka


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BAD GOOD

1 . M

u d a c a u s e d b y

i n a p p r o p r i a t e

p r o c e s s i n g

2 . M u d a c a u s e d b y

d e f e c t s

3 . M u d a c a u

s e d b y

u n n e c e s

s a r y

m o v e m

e n t


u n n e c e s s a r y s t o c k


w a i t i n g

6 . M u

d a c a u s e d b y

t r a n s p o r t


o v e r p r o d u c t i o n


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8 8 WASTES: Same as 7 Wastes with the addition of Underutilized People – This includes underutilization of mental,

creative, and physical skills and abilities, where non-Lean environments only recognize underutilization of physical

attributes. Some of the more common causes for this waste include – poor workflow, organizational culture, inadequate

hiring practices, poor or non-existent training, and high employee turnover. See 7 Wastes, Muda .

8D (TOPS-8D): The 8D Process is a problem solving method for product and process improvement. It is structured into 8

steps (the D's) and emphasizes team. This is often required in automotive industries. The 8 basic steps are: Define the

problem and prepare for process improvement, establish a team, describe the problem, develop interim containment,

define & verify root cause, choose permanent corrective action, implement corrective action, prevent recurrence, recognize

and reward the contributors.

Of course, different companies have their different twists on what they call the steps, etc...but that is the basics.

8 D is short for Eight Disciplines which Originated from the Ford TOPS (Team Oriented Problem Solving) program. (First

published approximately 1987)

D#1 - Establish the Team

D#2 - Describe the problem.

D#3 - Develop an Interim Containment Action

D#4 - Define / Verify Root Cause

D#5 - Choose / Verify Permanent Corrective Action

D#6 - Implement / Validate Permanent Corrective Action

D#7 - Prevent Recurrence

D#8 - Recognize the Team


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AB A3 REPORT: This "A3" sized (11 inches x 17 inches) form is used at Toyota as a one-sheet problem evaluation, root

cause analysis, and corrective action planning tool. It often includes sketches, graphics, flow maps or other visual means

of summarizing the current condition and future state.


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The A3 problem-solving method and document, in combination with the value stream map (VSM), both borrowed from

practices of the Toyota Motor Company,¹ have shown their value in reducing waste and error. The A3 method offers a

long-missing standardized approach to solving problems identified in higher-level value stream maps.


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A-B CONTROL: A method used to regulate working relationships between a pair of operations such that overproduction is

minimised. Machine A cannot feed machine B until it is empty or waiting for work.

ABC: See Activity Based Costing.

ABC ANALYSIS: An inventory classification scheme that ranks items based on past (or projected) annual usage times

cost or price, with A items accounting for the top 10-20% in terms of number of items and 60-70% of dollar volume, B

items the next 20-25% of items and 20-30% of dollar volume, and C items as the bottom 60-70% of items and only 15-30%

of the dollar volume. A Class D is sometimes used for obsolete or non-moving items. ABC categories are often used in

specifying the amount of attention and control paid to specific items, (with the tightest control over A items), in exception

reporting and in selecting items for periodic inventory cycle counts (A items are counted the most frequently).Classification

system of items in decreasing order of annual sales value (price x projected volume). Usually displays the Pareto 80:20

rule in that 80% of inventory value is held in 20% of the materials. It can be that A, B and C class materials are planned

differently and perhaps as runners, repeaters and strangers.

ABNORMALITY MANAGEMENT: Being able to see and quickly take action to correct abnormalities (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. See Ijo Kanri .

ACTIVITY BASED COSTING: A management accounting system that assigns cost to products based on the resources

used to perform a process (design, order entry, production, etc.) These resources include floor space, raw materials,

energy, machine time, labor, etc.

AGILE MANUFACTURING: Tools, techniques, and initiatives that enable a plant or company to thrive under conditions ofunpredictable change. Agile manufacturing not only enables a plant to achieve rapid response to customer needs, but also

includes the ability to quickly reconfigure operations -- and strategic alliances -- to respond rapidly to unforeseen shifts in

the marketplace. In some instances, it also incorporates "mass customization" concepts to satisfy unique customer

requirements. In broad terms, it includes the ability to react quickly to technical or environmental surprises. A means of

thriving in an environment of continuous change, by managing complex inter and intra-firm relationships through

innovations in technology, information, and communication, organizational redesign and new marketing strategies. See

Fast and Flexible Manufacturing.

ANDON: A tool of visual management, originating from the Japanese word for 'lamp'. Most commonly, andons are lights

placed on machines or on production lines to indicate operation status. Andons are commonly color-coded green (normal

operations), yellow (changeover or planned maintenance), and red (abnormal, machine down). Often combined with an

audible signal such as music or alarms.


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ANDON BOODO: Andon Board (a board with sections that light up to advise the status of areas, processes, equipment,

etc.). See Andon .

ANDON KOODO: Andon Cord (the cord operators pull when problem are discovered on a moving line). See Andon .

ARUBEKISUGATA: The State Things Should Be In (the ideal) as defined by the principles of the Toyota Production System(Just in Time, Quality in Station, Leveled Production, etc.). See Material and Information Flow . SeeMonotojouhounonakarezu.

ASSEMBLE TO ORDER: An environment where a product or service can be assembled or provided upon receipt of a

customer’s’ order. The product will usually consist of a number of modules that are assembled to the highest level possible

and stored such that when the order arrives, it can be assembled quickly and to the customer’s specification.

ATARIMAE HINSHITSU: Focusing on intangible effects of processes and ways to optimize and reduce their effects. One

of the four steps of TQM . Japanese culture intrinsically values quality and appreciates the small details. In fact, the

Japanese expression for quality is atarimae hinshitsu, which can be roughly translated as "taken-for-granted quality" or

“quality that is expected”. One of four steps in TQM .

ATOHOJUU: Replenish, Pull and Replenish

ATOKOUTEIHIKITORI: Pull, Pull System (literally “the next process pulls and takes”). See Pull System .

AUTO-EJECT DEVICE: See Hanedashi .

AUTONOMATION: Machines are given ‘human intelligence’ and are able to detect and prevent defects. Machines stop

autonomously when defects are made, asking for help. Autonomation was pioneered by Sakichi Toyoda with the invention

of automatic looms that stopped when a thread broke, allowing an operator to manage many looms without risk of

producing large amounts of defective cloth. Autonomation is a pillar of the Toyota Production System. See Jidoka .


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This illustration shows how a limit switch stops Operation #10 when the transfer conveyor has five pieces.

AUTOMATIC TIME: The time when a machine is running on auto cycle and a person does not needed to be there to

operate the machine. Commonly used for NC machine cycles, oven cycles, wash cycles, etc.

AVAILABILITY: See Bekidouritsu, Kadouritsu .

B BACK FLUSHING: A method of recording accounting transactions for labor and materials based on what was shipped

rather than by using material issues or cards. The aim of back flushing is to reduce the number of non value-added

transactions.

BALANCE CHART: A bar chart or histogram that illustrates work content per operator. Can be used to balance work for

operators or machines in order to achieve improvements in flow.

BAKA-YOKE: A manufacturing technique of preventing mistakes by designing the manufacturing process, equipment,

and tools so that an operation literally cannot be performed incorrectly; an attempt to perform incorrectly, as well as being

prevented, is usually met with a warning signal of some sort; the term "poka-yoke" is sometimes referred to as a system

where only a warning is provided. See Poka-Yoke.

BATCH AND QUEUE: Typical mass production method such that a part going through a system will be produced in large

batches to maximise “efficiency” and then sit in a queue waiting for the next operation. Contrast Flow Production .

BEKIDOURITSU, KADOURITSU: Operational Availability, Machine Availability (100% is ideal because nothing should everprevent a machine from being available for planned production)


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BENCHMARKING: Comparing key performance metrics with other organization in similar or relevant industries.

Establishing standards for improvement based on what others have been able to achieve. Visiting or interviewing peers to

learn from what they have done.

BOTTLENECK: A process in any part of the enterprise (office, production, sales, etc.) that limits the throughput of the

whole process.

BREADTRUCK RESUPPLY: The "lowest hanging fruit" in material logistics is the breadtruck delivery system for small,

inexpensive parts. Instead of counting on sales forecasts to trigger an MRP system to generate purchase orders, all the

small, inexpensive parts can be made available in bins at all the points of use. A local supplier is contracted to simply keep

the bins full and bill the company monthly for what has been used, much like the way bread is resupplied by the breadtruck

in a small market.

All the MRP/purchasing expense is eliminated and this type of delivery can assure a constant supply of parts, thus

avoiding work stoppages. Being off the forecast/MRP system, the supply of these parts can be assured for "forecast-less"

operations such as Build-to-Order. Typical parts suitable for breadtruck deliveries are fasteners, resistors, capacitors, and

almost any small, inexpensive part.

As companies become more agile, they may include slightly more expensive and slightly larger parts into the breadtruck

system. The more expensive parts may incur some inventory carrying cost, but that should be outweighed by savings in

purchasing, materials overhead, expediting, and avoiding work stoppages.

Contrast to Milk Run (collections). Criteria for Breadtruck Deliveries:

• A reliable supplier can be contracted. Many suppliers welcome such business and want to perform well, since they usually getall the business for their categories of parts and raw materials.

• Parts can be distributed at all points of use. Of course, part standardization helps here

• Parts are small enough and cheap enough so that sufficient parts will always be on hand. Bin count can be set high enough topreclude any chance of ever running out.

• Parts are not likely to go obsolete or deteriorate while waiting to be used.

• The breadtruck parts are not so "attractive" as to create a significant pilferage problem, since, generally, companies do notcorrelate part consumption with product sales. However, making breadtruck parts freely available for R&D prototypes andfactory improvements may encourage innovation.

• Manual reorders are not anticipated to occur. The supplier should be in a continuous improvement mode and be constantlyadjusting bin count to correspond to prevailing demand. The factory could alert the supplier about any anticipated "spikes" indemand.

BREAKTHROUGH OBJECTIVES: Objectives that are ‘stretch goals’ for the organization. Breakthroughs represent a

significant change for the organization providing a significant competitive advantage. Breakthrough goals are achieved

through multi-functional teamwork.

BROWNFIELD: An existing and operating production facility that is set up for mass-production manufacturing and

management methods. Contrast Greenfield .

BUILD TO ORDER: A production environment when a product or service can be made and assembled after receipt of a

customers order. See Seiban .

BULLWHIP EFFECT: Alternative name for demand amplification.


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C


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C-VARWIP: Circular - VARiable Work in Process (C-VARWIP) is the synthesis to both Push (first generation) and Pull

(second generation) production control systems when the system is taken as unitary, when whole-system analysis is

performed.

CANDO: Cleanup, Arranging, Neatness, Discipline and Ongoing Improvement - A precursor to 5S, CANDO is an industrial

housekeeping program developed by Henry Ford, circa 1922. See 5S .

CAPITAL LINEARITY: A philosophy linked to capital expenditure on machinery such that a small amount of additional

capacity can be added by using a number of smaller machines rather than one great big and very expensive machine.

See Labour Linearity .

CATCHBALL: A process used in Hoshin Planning to communicate vertically to obtain consensus on the Means that will

be used to attain each Breakthrough Objective. A series of discussion between managers and their employees during

which data, ideas, and analysis are thrown like a ball. This opens productive dialogue throughout the entire company.

CAUSE AND EFFECT DIAGRAM: A problem solving tool used to identify relationships between effects and multiple

causes (also Fishbone Diagram, Ishikawa Diagram).

CEDAC: Acronym for Cause and Effect Diagram with the Addition of Cards. CEDAC is a method for involving team

members in the problem solving process.

CELLULAR MANUFACTURING: An alignment of processes and equipment in correct process sequence, where

operators work within the cell and materials are presented to them from the outside of the cell. Often, cellular

manufacturing has not taken into account waste elimination or Standard Work principles, and therefore greater savings

have not been realized.


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CFM: See Continuous Flow Manufacturing .

CHAKU-CHAKU LINE: A production line where the only human activity is to 'chaku' or 'load' the machines. The machines

eject the finished parts automatically using hanedashi, so that the operators do not have to wait.

CHANGE AGENT: Someone whose objective is to help cause the transformation from Current State (traditional

manufacturing, e.g. batch and queue) to Future State (Lean Enterprise). Someone who leads the cultural change in an

organization.

CHANGE MANAGEMENT: The process of planning, preparing, educating, resource allocating, and implementing of a

cultural change in an organization.

CHANGEOVER: The time from when the last good piece comes off of a machine or process until the first good piece of

the next product is made. Changeover time includes set up, warm up, trial run, adjustment, first piece inspection, etc. See

Dandorigae, Dangae, Junjidangae, Kuukinagashi .

CLOSED MITT: An acronym to expand on the 7 classic wastes. See 7 Wastes, Muda.

Complexity - Design complexity out of work systems, products, and processes.Labor - Continually reduce the amount of labor required to perform tasks.Overproduction - Do not produce more than the customer demands.Space - Continually reduce the amount of space required.Energy - Look for ways to reduce power requirements.Defects - Increase the quality of processes.

Materials - Reduce waste due to offcut, spoilage.Idle Materials - Keep materials moving through the system.Time - Increase throughput.Transportation - Reduce the travel distance of materials from dock to dock.


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COMBINE, ELIMINATE, SIMPLIFY: Basic tools of method study and cornerstone of improvement operartons. List

sometimes also includes rearrange. See Nagara .

CONCURRENT ENGINEERING: Designing a product (or service), its production process, the supporting information flow,

and its delivery mechanism at the same time. The benefits include shorter development time from concept to market, a

higher product quality, lower overall development cost and lower product or service unit cost. Concurrent engineering

requires up-front planning and dedicated resources early in the early stages of development.

CONTINUOUS FLOW MANUFACTURING: Continuous Flow Manufacturing (CFM) was developed by the IBM Consulting

and is a system that allows the management of bottlenecks of a line and implement a continuous improvement strategy

aimed towards bottlenecks elimination. To that extent it is a clever implementation of Kanban principles and Theory of

Constraints. It is a manufacturing strategy that produces a part via a just-in-time and kanban production approach, and

calls for an ongoing examination and improvement efforts which ultimately requires integration of all elements of the

production system. The goal is an optimally balanced production line with lit tle waste, the lowest possible cost, on-time and

defect-free production. Often used interchangeably with Lean Manufacturing.

Manufacturing that takes place in a work center that is organized according to similar manufacturing processes, usually by

linking dissimilar machines. Continuous flow manufacturing is the opposite of job shop manufacturing

Continuous flow manufacturing encompasses four basic elements:

1) Based upon customer requirements, an overall manufacturing network must be configured.

2) Manufacturing requirements are identified, and strategic master plans are developed and implemented for each operation.

3) Information and management systems for the manufacturing process and operations are assessed, defined, purchased and

implemented. The information systems will drive the manufacturing continuous flow process and will interface with all of theorganization's business systems.

4) Once the manufacturing network, manufacturing requirements, and information and management systems are in place, the

process of continuous improvement must be installed

Continuous flow manufacturing (CFM) is a system's approach to total system improvement. In its simplest form, CFM is a

process for developing improved workflow using team-based problem solving.

The process is managed by a leadership team, which consists of three subteams. These teams manage cultural change,

identify and implement process flow requirements, and measure the cultural and physical process. The entire organization

is trained in process improvement and cultural change tools to facilitate the transition to a continuous flow manufacturing

environment.


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Some advantages of continuous flow manufacturing:

• Improved customer service

• Improved retention and reduced absenteeism

• Improved quality control and elimination of waste

• Improved materials handling practices and production process layout

• Improved scheduling and reduced flow time and costs

• Reduced in-process inventory and improved inventory control

• Increased utilization of capacity (decrease in machine maintenance)

• Reduced set-up times

• Elimination of non value-added tasks

• Improved safety practices.

CONTINUOUS IMPROVEMENT: The never-ending pursuit of waste elimination by creating a better workplace, better

products, and greater value to society.

CONSTRAINT: See Bottleneck.

CONTROL CHART: A statistical problem solving tool that indicates control of a process within established limits.


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CONTROL ELEMENT: Any specific process variable that must be controlled. The measurement of a control element

indicates whether the process is operating under stable conditions.

CONWIP: A pull technique adopted to high-mix low volume environments. The Conwip –Spearman et al., 1990-

(CONstant Work In Process) production control system tries to maintain constant the maximum amount of work in process

in the system. This control system is implemented by means of kanban cards. One kanban card is attached to a job from

the beginning of the line. The maximum work in process equals the total number of cards in the system. When a part is

shipped to the system, the attached card is released and is sent to the beginning of the line, where it will be attached to

another job to be processed. Also see Kanban, Drum-Buffer-Rope, POLCA.

CONWIP control. Movement of parts shown in blue, circulation of release authorizations in green.

Hybrid CONWIP/kanban control. Movement of parts shown in blue, circulation of kanban in red, and release authorizations in green.

COST OF POOR QUALITY: Costs associated with supplying a poor quality product. Categories of cost include internal

and external failure costs.

COST OF QUALITY: Costs associated with supplying a quality product. Categories of cost include prevention, appraisal,

and failure.

COUNTERCLOCKWISE FLOW: A basic principle of Lean manufacturing cell layout is that the flow of material and the

motion of people should be 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. See

Cellular Manufacturing.

COUNTER MEASURES: Actions taken to bring less than expected results of a process back up to targeted levels.

CROSS DOCKING: A practice in logistics of unloading materials from an incoming semi-trailer or rail car and loading

these materials in outbound trailers or rail cars, with little or no storage in between. This may be done to change type of

conveyance, or to sort material intended for different destinations, or to combine material from different origins. See

Noritsugiunpan .

CURTAIN EFFECT: A method that permits the uninterrupted flow of production regardless of external process location or

cycle time. Normally used when product must leave the cell for processing through equipment that cannot be put into the

cell. (i.e. heat treat, curing oven, plating, wave solder) Curtain quantities are established using the following formula:


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Per unit Cycle Time of Curtain Process ÷ TAKT Time = Curtain Quantity

CYCLE TIME: Cycle time is the time it takes to do one repetition of any particular task. Cycle time can be categorized into

1) manual cycle time, 2) machine cycle time, and 3) auto cycle time. Also referred to as touch time or hands-on time. See

Saikurutaimu .

D DAILY MANAGEMENT: The day-to-day activities that are required to serve the customers and ensure that the business is

generating profit. See Nichijo Kanri.

DANDORIGAE, DANGAE: Changeover, Set-up Change (of tools, dies, etc. to enable the production of a variation of aproduct on the same machine or line). See SMED .

DATSU-CHAKU: Japanese term meaning “Unload/Load” used to tell the traditional way of component loading on a

machine/equipment. This terminology is usually compared with "Chaku-Chaku". Contrast Chaku-Chaku.

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.

DbFM: See Demand-based Flow Manufacturing.

DEMAND AMPLIFICATION: The tendency for fluctuations in demand to increase as they move up the supply chain. Often

referred to as the bullwhip effect in recent literature.

DEMAND-BASED FLOW MANUFACTURING: Demand-based Flow Manufacturing (DbFM) has demonstrated its success

as a high velocity order-to-delivery strategy and process. The root origin for DbFM is in the lean production methods first

developed and remarkably well practiced by Toyota.

DEMAND-FLOW MANUFACTURING: Demand-flow manufacturing is customer-driven, rather than forecast driven.

Instead of producing in long runs and large batches, then storing products until they are sold, demand-flow lines create a

variety of items each day, keyed to direct customer orders. Often used interchangeably with Lean Manufacturing.

DEMAND LUMPING: A phenomenon in which an otherwise smooth flow of demand up a supply chain is grouped into larger

chunks than is necessary to meet operational requirements. Demand lumping is a major contributor to demand amplification.

It is known to be caused by batching, forward buying, and hoarding.

DESIGNED FOR MANUFACTURING AND ASSEMBLY (DFMA): A way of improving cost, quality, and safety of the

manufacturing and assembly processes by design.

DESIGN OF EXPERIMENT: Planning and conducting experiments and evaluating the results. The outcome of a design of

experiment includes a mathematical equation predicting the interaction of the factors influencing a process and the

relevant output characteristics of the process.

DOE: See Design of Experiment.

DOWNSTREAM PULL SYSTEM: See Pull System .

DRUM-BUFFER-ROPE: Drum-Buffer-Rope (DBR) scheduling is the manufacturing application of the Theory of

Constraints, a body of thought developed by Dr. Eliyahu Goldratt. The DBR logistical system is a finite scheduling

mechanism that balances the flow of the system. DBR controls the flow of materials through the plant in order to produce

products in accordance with market demand with a minimum of manufacturing lead time (MLT), inventory and operating

expenses. The definitions of DRUM, BUFFER and ROPE are:

• DRUM - A schedule for the constraint.

• BUFFER - A protection against Murphy. This is the time provided for parts to reach the protected area. The protected areas are

the Drum, the due-dates and the assemblies of constraint parts with non-constraint parts.

• ROPE - A schedule for releasing raw materials to the floor. The Rope is derived according to the Drum and Buffers; its mission

is to ensure the proper subordination of the non-constraints.


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DSI: See Days Supply of Inventory.

E EFFICIENCY: See Shinnonouritsu .

ELEMENTS OF WORK: The elements of work are 1) value-added work, 2) non value-added work, and 3) waste.

Thoroughly understanding the elements of work is a key first step to lean thinking.

ENGINEER TO ORDER: Products whose customers specifications are unique for each order therefore each product is

engineered from scratch upon receipt of an order.

EPE: See Every Part Every.

EVERY PART EVERY: Measured in terms of time (hours, days, weeks, months, etc.) “Every Part Every X” indicates the

level of flexibility to produce whatever the customer needs. For instance, Every Part Every day would indicate that

changeovers for all products required can be performed each day and the products can be supplied to the customer.

EVERY PART EVERY INTERVAL (EPEI): EPEI stands for Every Part Every Interval. EPEI is the lot size expressed in time.

The EPE Interval determines how often each item can be produced without exceeding available capacity and with the

smallest possible lot size. The calculations of takt time and the EPE Interval are the most important calculations involved in

setting up a lean execution system. Fundamental concept to lean manufacturing. The EPEI is the time it takes to run

through every regular part produced in a process. Knowing the EPEI helps determine the manufacturing lot size and

supermarket quantities for each part produced in a manufacturing process, as well as the number of kanban cards in the

replenishment loop.


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EXTENDED KANBAN: An alternative to single Kanban in dynamic environments. This system is also a hybrid combinationof Kanban system and Base stock like the Generalized Kanban system. The main difference between Extended Kanban and

Generalized Kanban is that in the former, the customer demand signal is instantaneously transferred to all stations, while in

the latter it is a non-instantaneous process (Dallery and Liberopoulos, 2000). Also see Kanban, Base Stock, CONWIP,

Drum-Buffer-Rope .

EXTERNAL SET-UP: All set-up tasks that can be done while the machine is still running. Examples are collecting tools,

the next piece of material, preparing or fixtures. Moving set-up activities from internal to external in order to reduce

machine down time is a central activity of set-up reduction and SMED. See Sotodandori .

F

FAILURE MODES AND EFFECTS ANALYSIS (FMEA): A structured approach to determining the seriousness of potentialfailures and for identifying the sources of each potential failure. The aim is to identify possible failures and implement

corrective actions to prevent failures.


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FAST AND FLEXIBLE MANUFACTURING: The concept of Fast and Flexible Manufacturing, also referred to as Agile

Manufacturing, was introduced in 1991 by US government-sponsored research at Lehigh University. Seen by some as the

next major framework for world-class manufacturing. See Agile Manufacturing .

FIFO: See First-in First-out .

FINISH TO ORDER: An environment such that products are built to as higher level as is possible and then configured to

customers requirements upon receipt of order.

FIRST IN FIRST OUT: Also known as FIFO, a system of keeping track of the order in which information or materials need

to be processed. The goal of FIFO is to prevent earlier orders from being delayed unfairly in favor of new orders.

FIXED-POSITION STOP SYSTEM: A problem addressing method on continuously moving production lines such that if a

problem is identified and not resolved before a fixed point, the production line will stop. See Teiichiteishihoushiki.

FLEXIBLE WORKFORCE: See Shojinka .

FLOW: See Nagareka .

FLOW CHART: A problem solving tool that maps out the steps in a process visually. The flow (or lack thereof) becomes

evident and the wastes and redundancies are identified.

FLOW PRODUCTION: A way of doing things in small quantities in sequential steps, rather than in large batches, lots or

mass processing. Product (or service) moves (flows) from process to process in the smallest, quickest possible increment


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(one piece). Only acceptable quality products or services are accepted by the downstream customer. See One-Piece

Flow .

FMEA: See Failure Modes and Effects Analysis .

FREQUENT RUNS: See Takiumpan .

FUNCTIONAL LAYOUT: Traditional plant layout grouping similar machines together.

FUTEIKI: Unscheduled Time (one of the 4 possible conditions of delivery, meaning that there is no attempt to create a

fixed schedule for delivery runs). Contrast Teiki .

FUTEIRYOU: Unscheduled Quantity (one of the 4 possible conditions of delivery, meaning that there is no attempt todefine the quantity of material that is to be delivered on a run). Contrast Teiryou.

G GEMBA: is a Japanese word meaning "actual place," or the place where you work to create value. In manufacturing this is

the factory. In each industry, the Gemba will be a different place. Also spelled Genba. See 3 Gen Principle .

GEMBUTSU: Japanese for 'actual thing' or 'actual product'. The tools, materials, machines, parts, and fixtures that are the

focus of kaizen activity. Also spelt Genbutsu. See 3 Gen Principle .


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GENBA KANRI: Workplace management: the system by which standards for running the day-to-day business are

established, maintained controlled and improved. Contrast with hoshin kanri .

GENCHI GENBUTSU: Genchi genbutsu means “see for yourself” or “go and see”. The word is often used in a factory

context. The basic idea is that as a decision-maker, you can’t make a judgment about a situation before you have actually

seen the conditions with your own eyes. Japanese managers are therefore encouraged to spend time on the factory floor,

observing processes and interacting with workers. A manager should not remain sequestered in an office, relying on the

reports of subordinates. The actual place and the actual thing (where something is or happens, and the actual things that

are in question, the fundamental attitude necessary for successful management and problem solving – ie All solutions lie in

careful observation of actual materials and the actual conditions under which they are handled, genbutsu is also spelled“gembutsu”. See 3 Gen Principle .

GENERIC KANBAN / GENERALISED KANBAN: A kanban system designed for non-repetitive manufacturing

environments. Kanbans have shown successful results in lowering inventory and shortening lead time in repetitive

production systems. Unfortunately, such systems are not applicable to production environments with dynamic

characteristics. Here a modified kanban system, the generic kanban system, is proposed for such dynamic environments.

The generic kanban system behaves similarly to the push system except that it is more flexible with respect to system

performance and more robust as to the location of the bottleneck. Generalized Kanban (Buzacott, 1989, Zipkin, 1989 or

Frein et al., 1995) is a hybrid combination of the Kanban system and Base Stock and results similar to Extended Kanban.

Also see Kanban, CONWIP, POLCA & Drum-Buffer-Rope.

GENJITSU: Japanese for 'the facts' or 'the reality'. The actual facts or the reality of what is happening on the shop floor

and in the business. See 3 Gen Principle .

GO ESU: Japanese for 5S. See 5S .

GREENFIELD: A new production facility where lean principles are designed into manufacturing and management systems

from the beginning. Contrast Brownfield .

GRPI: GRPI stands for four critical and interrelated aspects of teamwork: goals, roles, processes, and interpersonal

relationships, and it is a tool used to assess them.

GROUP TECHNOLOGY: Group Technology examines products, parts and assemblies. It then groups similar items to

simplify design, manufacturing, purchasing and other business processes. The figures below illustrate how an apparently

random collection of items has surprising similarity. Also see Product Families .

Ungrouped Parts Grouped Parts


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H HAIYAAHOUSHIKI: On Call Delivery (the delivery vehicle is stationed in a specified place and awaits a request for

conveyance - similar to a limousine for hire, hence the name “hire system”).

HAMIDASHIHIN: Overflow Parts

HANAREKOJIMA: Isolated Jobsite (original Japanese is analogous to the expression “deserted island,” as if the worker at

such a site were marooned and cut off from normal factory activity). See Isolated Island .

HANDS-FREE: See Tebanare.

HANEDASHI: Auto-eject devices that unload the part from the machine once the cycle is complete. This allows the

operators to go from one machine to the next without waiting, picking up and loading parts. Hanedashi is a key component

of chaku-chaku lines.

HANSEI: Relentless, deep reflection. A Japanese term that means to reflect on one's failings or misdeeds, with the idea

that this self-reflection will cleanse the individual and result in self-rehabilitation. Without Hansei, you cannot have Kaizen.

Frequent reviews at key milestones and after completing a project to openly identify all shortcomings of the project. Then

develop countermeasures to avoid the same mistakes again. The third step in the PDCA Cycle, also referred to as

“standardized worrying”. In a nutshell, this concept is about reflecting on mistakes/weaknesses and devising ways to

improve. Hansei is a concept that Toyota uses as a practical improvement tool like Kaizen. Toyota actually conducts

Hansei events (like Kaizen events) to improve products and processes. As hansei is utilized, the improvements are fed

back into the organization and disseminated.

HEIJUNKA: Refers to keeping the total production volume and mix as constant as possible. See Leveling .


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HILL-CLIMBING: A technique used to search for a superior configuration of a system such as a supply chain by making a

series of small, beneficial changes to the system until no further improvements appear to be possible.

HINSHITSU HOZEN: Quality Maintenance

HISTOGRAM: A problem solving tool that displays data graphically in distribution. It is often used to reveal the variations

that any processes contain.

HITOKETA: Single Digit (referring to times measured with no more than single digit numbers, can mean “less than 10

seconds,” or “less than 10 minutes”)

HORIZONTAL HANDLING: When tasks are assigned to a person in such a way that the focus is on maximizing a certain

skill set or use of certain types equipment, this is called horizontal handling. Horizontal handling does not benefit flow.

Contrast to Vertical Handling.

HOSHIN KANRI: A method of policy deployment and strategic decision making that focuses and aligns the organization

on a few vital “breakthrough” improvements. The objectives and means to achieve the objectives are cascaded down

through the entire organization using a series of linked matrices. The process is self-correcting and encourages


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organizational learning and continuous improvement of the planning process itself. See Policy Deployment. Contrast

Genba Kanri.

HOURENSOU: Trusted advisor. Hourensou is a Japanese word made up of three parts: hou (houkoku -- to report), ren

(renraku -- to give updates periodically, inform) and sou (soudan -- to consult or advise). To serve some of the genchi

genbutsu functions, senior management uses hourensou, which is common within top Japanese companies. Hourensou

forms the basis of good communication on the shop floor. It entails reporting what you do, or what you observe, give

updates when e.g. arriving late at work (train, weather) or confirming appointments, and consulting with your superior or a

colleague if something is not understood, about the next task, etc. Communication, discussion and learning process from

management.

HYOUJUNSAGYOU: Standardized Work (work procedures posted on site that define the takt, the sequence of operation,

and the standard in-process stock). See Standardized Work .

HYOUJUNSAGYOU KUMIAWASEHYOU: Standardized Work Combination Chart (a Gantt chartlike tool which illustrates

standardized work as a combination of manual task time, automated work time, walk time, and waiting time, all against thetakt). See Standardized Work Combination Chart.

HYOUJUNTEMOCHI: Standard In-Process Stock, Standard Work in Process (should be no more than 1, literally

“standard, onhand piece”). See Standard Work in Process .

I IJO-KANRI: See Abnormality Management.

IKKONAGARE: 1 Piece Flow (each station

of a line completes its work on only 1 piece at a time, there is no batching).

See One Piece Flow .

INTELLIGENT AUTOMATION: See Autonomation .

INTERNAL SET-UP: Set-up tasks that can only be done when the machine is stopped. Examples are changing the fixture,

changing the tools, or making adjustments. After as many of the internal tasks have been externalized as is possible, the

remaining internal changeover time is reduced through use of quick-change mechanisms. See Uchidandori.

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.


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INVENTORY TURNS: The cost of goods sold divided by the average level of inventory on hand. This ratio measures how

many times a company's inventory has been sold during a period of time. Operationally, inventory turns are measured as

total throughput divided by average level of inventory for a given period.

In business management, inventory turns (IT) measures the number of times capital invested in goods to be sold turns

over in a year. An item whose inventory is sold (turns over) once a year has higher holding cost than one that turns over

twice, or three times, or more in that time. The real purpose of inventory reduction campaigns is to increase inventory

turns, for three reasons.

• Increasing inventory turns reduces holding cost. The organization spends less money on rent, utilities, insurance, and othercosts of maintaining a stock of good to be sold.

• Reducing holding cost increases net income and profitability as long as the revenue from selling the item remains constant.

• Items that turn over more quickly increase responsiveness to changes in customer requirements while allowing the replacementof obsolete items.

ISOLATED ISLANDS: The result of a common mistake of cherry-picking lean techniques, which leads to building isolated

islands of improvement instead of improving the whole production flow to reap the biggest benefits. See Hanarekojima .

J JASUTOINTAIMU: Just in Time, JIT (arrival of needed items only, only in the quantity needed (i.e. 1 at a time), and only at

the time needed). See Just in Time.

JIDOKA: See Autonomation . The five steps of Jidoka are:

5. Automatic unloading4. Automatic return to home position3. Automatic stop2. Automatic feed1. Automatic processing

JIKKOUTAKUTOTAIMU: Actual Takt Time (takt time is derived strictly from net working time divided by the number of

units ordered for that time, but actual takt time is derived from calculations that factor in real-world issues). See Takt Time.

JISHU HOZEN: Autonomous maintenance.

JISHU KANRI: Self-management, or voluntary participation.

JISHUKEN: Literally translates to “a fresh set of eyes”, which suggests that sometimes being too close to a problem

prevents a person from objectively seeing what is wrong. When applied to TPS, it refers to developing a creative approach

to problem solving, utilizing autonomous study groups. Kaizen with outside help - a "fresh pair of eyes" approach to kaizen

to complement the improvement ideas of those carrying out production tasks day-by-day. Outsiders (for example, from a

customer) help the production team to eliminate waste. Process improvement engineers going into suppliers are sometimes

described as "jishuken teams".

JIT: See Just-in-Time Production.


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JUNBIKI: Pick in Order of Use (as in material delivery systems that gather and deliver parts in consideration of the

sequence in which they are to be used according to Standardized Work).

JUNKAI: Japanese for milkrun, literally meaning “tour”. See Milkrun .

JUNJIDANGAE: Rolling Changeover, Rolling Set-up Change (changeovers of equipment along a production line

performed in succession according to the sequence of the use of the equipment in production so as to minimize production

line downtime).

JUST-IN-TIME PRODUCTION (JIT): A production system to make what the customer needs when the customer needs it

in the quantity the customer needs, using minimal resources of manpower, material, and machinery. The three elements tomaking Just-in-Time possible are Takt time, Flow production, and the Pull system. See Jasutointaimu .


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JUTSU: The art of something (i.e., 'leanjutsu: the art of lean production').

K KADOURITSU: Operation Rate, Utilization Rate (the time a machine is capable of working products divided by the time it

actually works the products).

KAI-AKU: The opposite of kaizen. Change for the worse. Bad change. Contrast Kaizen.

KAIKAKU: Radical improvements or reform that affect the future value stream. Often these are changes in business

practices of business systems.

KAIKAKU HOZEN: Planned maintenance.

KAIZEN: Japanese for 'change for the better' or 'improvement'. A business philosophy of continuous cost reduction,reduce quality problems, and delivery time reduction through rapid, team-based improvement activity. Kaizen meansbreaking apart the current situation, analyzing it, and quickly putting it back together to make it better. Contrast to Kai-aku .

The Kaizen concept consists of four elements:

• Quality

• Effort• Willingness to improve• Communication


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KAIZEN NEWSPAPER: A tool for visually managing continuous improvement suggestions. Based on the PDCA cycle and

designed to manage input by the workforce in an organized way.

KAMISHIBAI: Literally "Paper Drama" - Way of using cards to tell and track a story. Often cards in slots to show processstatus visually.

KANBAN: A Japanese word for 'sign', cometimes spelled kamban, Kanbans are typically a re-order card or other method

of triggering the pull system based on actual usage of material. Kanbans are attached to the actual product, at the point of

use. Kanbans are cards that have information about the parts (name, part number, quantity, source, destination, etc.) but

carts, boxes, and electronic signals are also used. Squares painted on the floor to indicate storage or incoming areas are

frequently, but mistakenly, referred to as kanbans.

What is Kanban?The literal meaning

Documents

91614186 the Lean Agile and World Class Manufacturing Cookbook