Business Process Management Glossary
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The production preparation process is a tool used for designing lean environments. It is a highly disciplined, standardized model that results in the development of an improved production process in which low waste levels are achieved at low capital cost.
5S Workplace Organization – Building Blocks for “shop floor” discipline and control; Used to create a workplace suited for visual control and lean processing.
- Sort – Segregate & Discard
- Store – Arrange & Identify
- Shine – Clean & Inspect Daily
- Standardize – Revisit Frequently
- Sustain – Motivate to Sustain
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A tool used to organize and present large amounts of data (ideas, issues, solutions, problems) into logical categories based on user perceived relationships and conceptual frame working.
Often used in form of "sticky notes" send up to front of room in brainstorming exercises, and then grouped by facilitator and workers. Final diagram shows relationship between the issue and the category. Then categories are ranked, and duplicate issues are combined to make a simpler overview.
A visual device, usually a specialized light that operators use to call attention to an abnormality. The use of this is to request immediate attention and action to the problem.
A production area visual control device, such as a lighted overhead display. It communicates the status of the production system and alerts team members to emerging problems (from andon, a Japanese word meaning light).
The use of machines working independently of manpower.
A form of automation in which machinery automatically inspects each item after producing it, ceases production and notifies humans if a defect is detected. Toyota expanded the meaning of jidoka to include the responsibility of all workers to function similarly—to check every item produced and, if a defect is detected, make no more until the cause of the defect has been identified and corrected (see “jidoka”).
Balanced Scorecard The balanced scorecard is a strategic management system used to drive performance and accountability throughout the organization. The scorecard balances traditional performance measures with more forward-looking indicators in four key dimensions:
- » Financial
- » Integration/Operational Excellence
- » Employees
- » Customers
The Balanced Scorecard is an organizational framework for implementing and managing strategy at all levels of an enterprise by linking objectives, initiatives, and measures to an organization’s strategy. The scorecard provides an enterprise view of an organization’s overall performance. It integrates financial measures with other key performance indicators around customer perspectives, internal business processes, and organizational growth, learning, and innovation.
Batch and Queue
Producing more than one piece of an item and then moving those items forward to the next operation before they are all actually needed there. Thus items need to wait in a queue. Also called "Batch-and-Push." Contrast with continuous flow.
Any resource whose capacity is equal to or less than the demand placed on it
Buffer and Safety Stock
Buffer Stock – Stock made available between processes to meet takt time due to variations in upstream or downstream cycle times
Safety Stock – Goods made available to protect takt time while making process changes or improvements. It is used to minimize impact to major internal failures.
A periodic check on how the department, site, or line of business is performing. Review of scorecard is part of the business review.
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Capacity is a function dependent on certain set of variables all working together: Resources (R), Time (T), and Productivity (P). It is what processes volume.
Cause and Effect Diagram
A cause and effect diagram is a visual tool used to logically organize possible causes for a specific problem or effect by graphically displaying them in increasing detail. It helps to identify root causes and ensures common understanding of the causes. It is also called an Ishikawa diagram.
Cause and Effect relationships govern everything that happens and as such are the path to effective problem solving. By knowing the causes, we can find some that are within our control and then change or modify them to meet our goals and objectives. By understanding the nature of the cause and effect principle, we can build a diagram to help us solve everyday problems every time.
An arrangement of people, machines, materials and equipment in which the processing steps are placed right next to each other in sequential order and through which parts are processed in a continuous flow. The most common cell layout is a U shape.
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.
The numerical average (e.g. mean, median or mode) of a process distribution. Can also be displayed as the centerline of a process control chart.
An indication of the location or centrality of the data. The most common measures of central tendency are: mean (numerical average), median (the midpoint of an order data set such that half of the data points are above and half are below it) and the mode (the value that occurs most frequently)
A method of conducting single-piece flow in which the operator proceeds from machine to machine (in a counter-clockwise fashion), talking a part from the previous operation and loading it in the next machine. Then taking the part just removed from that machine, checking it and loading it into the following machine…etc,…
An individual from within or outside an organization who facilitates change within the organization; may or may not be the initiator of the change effort.
The reorganization of product design, development, production planning and procurement processes to take place to the extent possible in parallel (more or less at the same time), utilizing multi-disciplinary project teams, electronic information management, and improved communications.
Input is gathered and assimilated from all concerned parties, including manufacturing, sales, procurement, customers, and etc. from project conception throughout development.
Anything that limits a system from achieving higher performance or throughput; also, the bottleneck that most severely limits the organization’s ability to achieve higher performance relative to its purpose / goal.
Each process (in the office or plant setting) makes or completes only the one piece that the next process needs, and the batch size is one - single-piece flow or one-piece flow – opposite of batch-and-queue.
Critical Chain," in the largest sense, is the set of processes and practices for project management developed by the application of the Theory of Constraints Thinking Processes to the difficulties faced in delivering projects with both speed and reliability. The "body of knowledge" associated with Critical Chain centers on Critical Chain Scheduling and Buffer Management for individual projects, and synchronization of efforts across projects in multi-project organizations. (Critical Chain is also the title of a book, by Eliyahu M. Goldratt, that introduces the basic concepts of the approach.)
CTQs (Critical to Quality) are the key measurable characteristics of a product or process whose performance standards or specification limits must be met in order to satisfy the customer. They align improvement or design efforts with customer requirements.
CTQs are what the customer expects of a product... the spoken needs of the customer. The customer may often express this in plain English, but it is up to us to convert them to measurable terms using tools such as DFMEA, etc.
The total time required for a task to be complete. Cycle time is process specific, and many cycle times will exist within an overall lead time of making a product. Cycle time is the rate of the process
Cycles of Use
A three-stage process that sustains the Guidon High Performance Culture. In the first stage, employees use their department’s Performance Management Board to maintain and analyze current production data. In the second stage, the team holds regular meetings (PMRs) at their production management board to identify potential process improvements. In the third stage, employees resolve the problems or develop the opportunities they have identified in their PMRs. They use their knowledge, experience, and process improvement tools and techniques to make these improvements.
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One of the 7 types of Waste. Rework / repair a product or service to meet customer’s requirements.
Dr. W. Edwards Deming is known as the father of the Japanese post-war industrial revival and was regarded by many as the leading quality guru in the United States.
The DMAIC process is the heart of Six Sigma. DMAIC refers to a data-driven quality strategy for improving processes, and is an integral part of the company's Six Sigma Quality Initiative. DMAIC is an acronym for five interconnected phases: Define, Measure, Analyze, Improve, and Control.
Lost production time during which a piece of equipment is not operating correctly due to breakdown, maintenance, power failures or similar events
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Excess Material or Information
One of the 7 types of Waste. Any supply in excess of customer requirements necessary to produce services.
One of the 7 types of Waste. Any movement of people or equipment that does not add value to the product or services.
One of the 7 types of Waste. Any information, material, or patient movement that does not directly add value to a product or service.
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First in First Out (FIFO)
Material produced by one process is used in the same order by the next process. A FIFO queue is filled by the supplying process and emptied by the customer process; when a FIFO lane gets full, production is stopped until the next (internal) customer has used some of that inventory.
First Pass Yield (FPY)
Also referred to as the quality rate, the percentage of units that complete a process and meet quality guidelines without being scrapped, rerun, retested, returned or diverted into an offline repair area. FPY is calculated by dividing the units entering the process minus the defective units by the total number of units entering the process.
A problem-solving tool that uses a graphic description of the various process elements to analyze potential sources of variation, or problems. The Diagram itself resembles (somewhat) the skeleton of a fish. Also called the Cause & Effect diagram and Ishikawa diagram.
The Five Why's typically refers to the practice of asking, five times, why the failure has occurred in order to get to the root cause/causes of the problem. There can be more than one cause to a problem as well. In an organizational context, generally root cause analysis is carried out by a team of persons related to the problem. No special technique is required.
The main purpose of flow is to quickly and continuously identify and eliminate waste. The progressive achievement of tasks along the value stream so a product proceeds from design to launch, order to
Delivery and raw to finished materials in the hands of the customer with no stoppages, scrap or backflows.
Failure Modes and Effects Analysis (FMEA)
A systematic/structured approach for determining the seriousness of potential failures and for identifying the sources of each potential failure.
The goal of FMEA is to identify potential failures and implement corrective actions to prevent failures from occurring. "PFMEA" focuses on identifying and remediating process failures.
Force Field Analysis
Identifies force and factors, both restraining and driving, effect the solution of an issue or problem so that the positives can be reinforced and/or negatives reduced or eliminated.
The practice of grouping machines or activities by type of operation performed.
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A Japanese term that means "Real Place" or "Where the action takes place." In Lean we speak of GEMBA as being the place where "Value" is added to a product. See "Value Adding"
The guidon dates back to the days of hand to hand combat when, in the heat of battle, military leaders used a guidon, or flag, to communicate the direction of movement for troops. Today business leaders leverage Guidon Performance Solutions and our proprietary approach to developing strategy, creating alignment and improving performance to move their organizations forward toward a common and shared vision.
FOCUS is a time-sensitive, rapid-deployment approach that employs a collaborative, team-based methodology for executing problem solving and continuous improvement.
Guidon High Performance Culture links strategy and execution with a constant and intensive focus on the customer using universally applied terminology, leadership practices and tools. It is designed to provide consistent and repeatable results with a clear sense of urgency.
GuidonHPC engages each level of an organization with energy, edge and the ability to energize others.
Improved process data that results from process operators who know their process performance is being measured and exercise more care in the execution of the process than would normally be done.
The process of level loading and sequencing the timing of customer demand for products or services. A method of leveling production, usually at the final assembly line, that makes just-in-time production possible. It involves averaging both the volume and sequence of different model types on a mixed model production line.
Using this method avoids excessive batching of different types of product and volume fluctuations in the same product (see “production smoothing”).
A bar graph of a frequency distribution in which the widths of the bars are proportional to the classes into which the variable has been divided and the heights of the bars are proportional to the class frequencies.
A histogram is a basic graphing tool that displays the relative frequency or occurrence of continuous data values showing which values occur most and least frequently. A histogram illustrates the shape, centering, and spread of data distribution and indicates whether there are any outliers.
A graphic way to summarize data. Size is shown on the horizontal axis (in cells) and the frequency of each size is shown on the vertical axis as a bar graph. The length of the bars is proportional to the relative frequencies of the data falling into each cell and the width is the range of the cell. Data is variable measurements from a process.
The selection of goals, projects to achieve the goals, designation of people and resources for project completion and establishment of project metrics (see “policy deployment”).
Breakthrough planning; a Japanese strategic planning process in which a company develops up to four vision statements that indicate where the company should be in the next five years.
Company goals and work plans are developed based on the vision statements. Periodic audits are then conducted to monitor progress (see “value stream”).
See Guidon HPC
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Impact Difficulty Matrix
Prioritization method that looks looks at the impact (value to the organization) to implement the change and how difficult it will be to implement. The intent is to have the teams focus on the High Impact / Low Difficulty items first when planning improvement ideas.
The task of disseminating information for taking a specific product from order entry through detailed scheduling to delivery (see “value stream”).
The money invested in purchasing things an organization intends to sell.
The number of times you can "Turn" (use and replace) your inventory/money over in a year.
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Just do it – a small scale process improvement that can be accomplished simply and quickly by one or more persons.
Jidoka (Autonomation): One of the 3 main principles of Lean, it has 2 main elements: 1) Stopping the process when an abnormality has been detected 2) Building “human intelligence” into machines or software, giving automation the ability to make a decision to shut down automatically in the case of an abnormality in order to stop defective products from flowing into the next process. Jidoka measures are incorporated in the assembly process by use of Andons and Pin-Pan-Pon; stopping when abnormality is detected. The jidoka system puts faith in the worker as a thinker and allows all workers the right to stop the line on which they are working (see “autonomation”).
(Just in time): One of the 3 main principles of Lean, it’s the philosophy of production characterized by 3 elements – each must be present to ensure JIT functions properly. (1) Single piece flow, (2) producing according to TAKT time, (3) pulling of material from upstream process. Producing or conveying only the items that are needed by the next process when they are needed and in the quantity needed. Can even be used between facilities or companies.
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Kaizen: A Japanese term meaning gradual unending improvement by doing little things better and setting and achieving increasingly higher standards. Masaaki Imai made the term well-known in his book Kaizen: The Key to Japan’s Competitive Success. Kaizen implies more than improvement in basic production processes. Kaizen represents a philosophy whereby an organization, and the individuals within it, undertake continual improvements of all aspects of organizational life. A hands-on process of short duration to develop iterative solutions, with each iteration an improvement on the last.
A signaling device that gives instruction for production or conveyance of items in a pull system. A communication tool in the just-in-time production and inventory control system that authorizes production or movement. Kanban, from a Japanese word for visible card or record, was developed by Taiichi Ohno at Toyota. It is a small card or signboard (or any other authorizing device) attached to boxes of specific parts in the production line signifying the delivery of a given quantity.
Grouping component parts used in a process or build for ease of assembly. (see material presentation)
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The total Time a customer must wait to receive a product after placing an order. The total time it takes the product to go from raw inventory to the finished product. Order to remittance lead time refers to the total time from when an order is placed until the finished product is shipped.
Lean is simply a thought process, not a tool, used to look at your business whether it is manufacturing, service or any other activity where you have a supplier and a customer/receiver. The key thought processes within Lean are identifying 'waste' from the customer perspective and then determining how to eliminate it. Waste is defined as the activity or activities that a customer would not want to pay for and/or that add no value to the product or service from the customer's perspective. Once waste has been identified in the Current State, a plan is formulated to reach the Future State in an effective manner that encompasses the entire system.
LeanSigma® Capacity is a methodology developed for the Service Industry that determines the efficient allocation and scheduling of resources in a highly complex, highly variable environment to maximize customer service, while containing costs
LeanSigma Information Technology
LeanSigma® Information Technology leverages the power of Lean and Six Sigma in information technology processes and functions. From development and deployment of new information technologies to ongoing reliability, maintenance and operations of IT infrastructure, LeanSigma® Information Technology improves ROIC, accelerates implementation and improves performance.
The LeanSigma® toolset streamlines and simplifies complex business processes to rapidly pull dramatic new efficiencies to the bottom line.
LeanSigma® Process is specifically designed for service-based companies and has proven to achieve benefits forty to sixty percent faster than traditional Six-Sigma or Reengineering projects, leveraging a broader tool-suite and the FOCUS Methodology.
GuidonHPC term – Front Line employees
GuidonHPC term – Middle Managers
GuidonHPC term – Senior Managers
Last In First Out (L.I.F.O.) The opposite of "F.I.F.O." (First In First Out). With LIFO earlier orders are delayed in favor of newer orders which results in increased lead-time and unhappy customers regarding the earlier orders.
A process in which work elements are evenly distributed and staffing is balanced to meet takt time (see “takt time”).
Any Lean journey strives to minimize waste and increase speed. Increasing speed equates to reducing lead time to your customers. Minimizing waste includes an analysis of inventory on-hand and steps to reduce that inventory. Little's Law provides an equation for relating Lead Time, Work-in-Process (WIP) and Average Completion Rate (ACR) for any process. Named after the mathematician who proved the theory, Little's Law states:
Lead Time = WIP (units) / ACR (units per time period)
Knowing any two variables in the equation allows the calculation of the third. Reducing WIP while maintaining the same ACR reduces lead time. Similarly, improving the process to increase ACR while maintaining the same WIP also reduces Lead Time. This applies to any process - manufacturing, transactional, service or design. If it is difficult to relate WIP to a given process, try using TIP instead (Things-in-Process).
Example: A quoting department can complete 4 quotes per day (ACR), and there are 20 quotes (TIP) in various stages in the department. Applying Little's Law:
Lead Time = TIP/ACR = 20 quotes/4 quotes/day = 5 days.
Therefore, without changing the process, inventory or priorities - or accounting for variation - any new quote coming into the department could reasonably be expected to be completed in 5 days.
A method of conducting single-piece flow in which the operator proceeds from machine to machine, taking the part from one machine and loading it into the next. The lines allow different parts of a production process to be completed by one operator, eliminating the need to move around large batches of work in progress inventory.
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Introducing material to the line or cell in a manner that is easy and effective for the operator.
A size or quantity found by measuring, e.g., 1 inch, 3 pounds, 6 complaints, 623 checks, etc. By themselves, measures give us very limited information.
Two or more measures that are related in a meaningful way, e.g., miles per hour (speed), checks processed per hour (productivity), number of error free statements per month (quality), etc.
Multi Generational Strategic Plan imperatives for the business success that support strategic improvement needs typically around growth, margin, and infrastructure (people, process, tech). Generally a 3 year horizon.
Poka yoke: Japanese term that means mistake proofing. A poka yoke device is one that prevents incorrect parts from being made or assembled or easily identifies a flaw or error
Mixed Model flow is making value flow by taking out the waste in your value stream so that multiple products are made in each time period. This is accomplished by making the mixed model flow part perform as if it were a dedicated asset. Each product flows at the rate of customer demand, even though mixed products are being made.
Any design, scheduling, or production technology with scale requirements requiring designs, orders, and products to be brought to the machine to wait in line for processing. The opposite of a right sized machine.
Any type of waste elements that add no value to the product: i.e. Waiting, Transporting, Over production, Excess Motion, Inventory Defects, Human Touches.
Groups formed from people with varying skill-sets typically across departments to achieve a business goal. Groups become "Teams" when they behave like teams. Using Multi functional Teams can be of great benefit to most companies especially when they work with complex issues that require expertise from numerous backgrounds.
With many of our events we will create a team that includes operators form the area we are working on, staff from "feeding" and "supplying" areas, a supervisor, a maintenance tech, etc. Although Multi functional Teams generally refer to specific expertise and skill-sets, one should never overlook the benefits of having many pairs of "fresh eyes" on a problem solving team.
The Japanese term for inconsistency
The Japanese term for strain
Most Wanted Improvement, a process change intended to reduce or eliminate a significant business performance problem. Implementing an MWI should result in a measurable improvement in one or more of the following areas: customer satisfaction, quality, productivity, and risk.
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Normal distribution is the spread of information (such as product performance or demographics) where the most frequently occurring value is in the middle of the range and other probabilities tail off symmetrically in both directions. Normal distribution is graphically categorized by a bell-shaped curve, also known as a Gaussian distribution. For normally distributed data, the mean and median are very close and may be identical.
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The Level 2 tool used in GuidonHPC to set goals. Operating Plans translate the Policy Deployment into actual execution plans at all levels of the organization.
Overall Equipment Effectiveness (OEE)
The product of a machine’s operational availability, performance efficiency and first-pass yield.
One of the 7 types of Waste. Producing more then needed or producing faster than needed.
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Using pull systems you will only need to schedule one point in the process flow. This point is known as the pacemaker process. The control of this point will dictate the flow of the whole process, if coupled with pull techniques. The pacemaker process is usually the most downstream in the process. Using a pacemaker enables the flow to be controlled reliably using one simple point. This ensures that scheduling is made much simpler than trying to co-ordinate many separate processes. It allows for local control rather than centralized complex control which are often very slow to respond to the needs of the system.
A graphical tool for ranking causes of problems from most significant to least significant. It is based on the Pareto principle, first defined by Juran, 1950. Pareto Charts suggest most effects (or results), come from relatively few causes; that is, 80% of effects come from 20% of the possible causes.
PDCA (plan-do-check-act) at a macro level (for example, as in Hoshin kanri):
- Plan. Senior management should use the visioning process in the context of its business plan. The business plan is translated into action plans that are meaningful to all levels of the organization.
- Do. Implementation of action plans; answers what, how and who for the total number of tiers in an organization, taking into account the fewer the number of tiers, the better. This is the time to bring members of management together and provide them with a basic understanding of the action plans.
- Check. On a periodic basis, review the measurements of the outputs, and note what you’ve learned that can help in the future.
- Act. Make the necessary adjustments to plans and priorities to ensure the success of the strategy breakthroughs.
Performance Management Boards
the tool at the heart of the continuous improvement process. The Performance Management Board is a visual display of performance metrics that are developed and maintained by front line employees. The metrics focus on six key areas: Customer Satisfaction, Quality, Productivity, Risk Management, Associate Satisfaction (People’s Corner), and Making Progress.
Performance Management Reviews
A business review conducted for a department or area that is held by the front-line employees using information on the Production Management Boards.
Pitch: The pace and flow of a product. Pitch is the time elements to produce the pack quantity for shipping. Pitch is the current best time for the lot size for material shipping. It is the adjusted tack time to pull product throughout the value stream when the takt time is too short.
Mistake proof: usually refers to the use of fail-safe devices in the process in order to prevent defects from occurring and insure quality. When this ingredient is added to automation will yield autonomation. ( see Jidoka )
The selection of goals and projects to achieve the goals, designation of people and resources for project completion and establishment of project metrics (see “Hoshin kanri”).
A result driven, formula based, set of activities that produces an outcome. Alternate Definition: A series of activities that collectively accomplish a distinct objective. A process is a recipe for how something is done. Processes are also closely scrutinized for improvement opportunities. Even making a peanut butter and jelly sandwich involves passing through a process. If all of the ingredients for your sandwich are located in your kitchen accept your jelly which is located in the Garage, then you would clearly have a process improvement opportunity.
Process Quantity Analysis
A study of the quantities demanded of different products produced at a work location. This picture of the volume and variety of products can be used to identify high impact areas to concentrate efforts or identify the need to use process razing to make products more similar.
Process Router Analysis
A study of the process and machine sequence for a group of similar parts. It can be used to standardize product flow for ease of cell implementations.
A group of products that go through the same or similar downstream or "assembly" steps and equipment.
Keeping total manufacturing volume as constant as possible
A measurement of output for a given input. The ratio of measured outputs over measured inputs (i.e. - widgets produced per man-hour).
Refers to a matrix that helps determine which items or potential solutions are more important or 'better' than others. It is necessarily to be done after you capture VOC and before design which means after product planning QFD.
It is a scoring matrix used for concept selection, in which options are assigned scores relative to criteria. The selection is made based on the consolidated scores. Before you start your detailed design you must have many options so that you choose the best out of them.
This tool is also known as 'Criteria Based Matrix'
The Pugh matrix is a tool used to facilitate a disciplined, team-based process for concept generation and selection. Several concepts are evaluated according to their strengths and weaknesses against a reference concept called the datum (base concept). The datum is the best current concept at each iteration of the matrix.
The Pugh matrix allows you to
- 1. Compare different concepts
- 2. Create strong alternative concepts from weaker concepts
- 3. Arrive at an optimum concept that may be a hybrid or variant of the best of other concepts
The Pugh matrix encourages comparison of several different concepts against a base concept, creating stronger concepts and eliminating weaker ones until an optimal concept finally is reached. Also, the Pugh matrix is useful because it does not require a great amount of quantitative data on the design concepts, which generally is not available at this point in the process.
System of manufacturing in which each process withdraws the parts it needs from the preceding process when they need them, in the exact standardized amount needed. Used to avoid push
To produce or process an item without any real demand from the customer – usually creates inventory and all other 'wastes'.
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The time a part sits waiting to be worked on.
Quick Changeover is a process that allows a person to reduce the time to changeover a production process from making one part or product to another part or product. The process to reduce the time elapsed from the last good part A to the first good part B at the same station or process. Quick Changeover is also referred to as SMED or Single Minute Exchange of Die. This quick changeover process must take less than ten minutes (hence single minute).
Resources are defined as anything needed to process volume, such as People, Machines, or Work Stations. Limiting Resource is the maximum number of a resource that can be used at one time.
Matching tooling and equipment to the job and space requirements of lean production. Right sizing is a process that challenges the complexity of equipment by examining how equipment fits into an overall vision for workflow through the factory. When possible, right sizing favors smaller, dedicated machines rather than large, multipurpose batch processing machines
Root Cause Analysis
Study of original reason for nonconformance with a process. When the root cause is removed or corrected, the nonconformance will be eliminated
Lean tool used to improve flow in an organization. Its purpose is to reduce the number of unique routings, simplify the individual parts or information routings, and aid the development of standard work. A key component in the design of cells.
Also know as a Water Spider; A person on the production floor who paces the entire value stream through the pickup and delivery of materials through kanban usage (see “kanban”).
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Service, Cost, and Quality - major categories of metrics that are important to balance when doing LeanSigma Capacity
Machine changeover steps that are performed while the machine is processing parts or off-line from production time.
Machine changeover steps that are performed while the machine is stopped during production time.
Japanese term – Seiso; Conduct a cleanup campaign
A company founded by C. Nakao and K. Iwata, former employees of Taiichi Ohno, the creator of the Toyota Production System. The word Shingijutsu translates as “new technology” or “better way”.
Single Piece Flow
Production system in which only one part at a time is processed or assembled and the work is verified before being sent along the production line to follow processes. The 2 elements of SPF are 1) a “Do” and 2) a “Check” or verification that the “Do” was done correctly. This introduces a feedback loop into the system.
SIPOC stands for suppliers, inputs, process, output, and customers. You obtain inputs from suppliers, add value through your process, and provide an output that meets or exceeds your customer's requirements.
Supplier-Input-Process-Output-Customer: Method that helps you not to forget something when mapping processes.
A methodology that provides organizations tools to improve the capability of their business processes. This increase in performance and decrease in process variation lead to defect reduction and improvement in profits, employee morale and quality of products or services. Six Sigma quality is a term generally used to indicate a process is well controlled (±6 s from the centerline in a control chart).
Six Sigma Performance
Six Sigma Performance
- Sigma 1: Defects per million = 690,000
- Sigma 2: Defects per million = 308,537
- Sigma 3: Defects per million = 66,807
- Sigma 4: Defects per million = 6,210
- Sigma 5: Defects per million = 233
- Sigma 6: Defects per million = 3.4
Single Minute Exchange Die (i.e., under 10 min) has become a title for the category of improvement devices used in manufacturing to allow for quick change over of machine/fixture set-ups.
Japanese term – Seiri; to separate needed tools, parts and instructions from unneeded materials and remove the latter.
A Lean tool used to show the path that a product takes along the process flow. It shows the geography of the department. Can be used to demonstrate the transportation waste in a process flow.
A statistic used to measure the variation in a distribution. Sample standard deviation is equal to the square root of (the sum of the squared deviations of the mean divided by the sample size minus 1). Where the whole population is known, the minus 1 "fudge factor" should be omitted.
Standard deviation is a measure of the spread of data in relation to the mean. It is the most common measure of the variability of a set of data. If the standard deviation is based on a sampling, it is referred to as 's.'
In formulae it is often represented by the letters SD or the symbol (Greek letter) sigma.
Although it is closely related to, and used in calculations for, the Sigma level of a process you need to be careful to distinguish the two meanings.
The combination of people and machines required to accomplish production in such a way as to minimize waste and variation by establishing only 1 way to perform the process
One of the three elements that make up standard work. It is the minimum quantity of parts always on hand for processing during and between sub processes. It allows workers to do their job continuously in a set sequence, repeating the same operation over and over in the same order (see “standard work”).
Minimum and standardized amount of work in process required to perform operations
A precise description of each work activity specifying cycle time, takt time, and the work sequence of specific tasks and the minimum inventory of parts on hand needed to conduct the activity. All jobs are organized around human motion to create an efficient sequence without waste. Work organized in such a way is called standard(ized) work (see “takt time,” “working sequence” and “standard in process stock,” which are the three elements that make up standard work).
Standard Work Combination Sheet
A table that clarifies how much time is spent doing manual work and traveling at each production process.
Standard Work Sheet
Shows the outline of work for each worker in a cell. Recorded on it are: Takt time, work sequence, standard WIP, quality checks, safety precautions, etc.
Japanese term – Seiketsu; to conduct Seiri, Seiton, and Seiso at frequent, indeed daily intervals to maintain a workplace in perfect condition.
Statistical Process Control (SPC)
Statistical process control (SPC) is the application of statistical methods to identify and control the special cause of variation in a process.
Statistical Process Control (SPC) is the equivalent of a histogram plotted on it's side over time. Every new point is statistically compared with previous points as well as with the distribution as a whole in order to assess likely considerations of process control (i.e. control, shifts, and trends). Forms with zones and rules are created and used to simplify plotting, monitoring, and decision making at the operator level. SPC separates special cause from common cause variation in a process at the confidence level built into the rules being followed (typically 99.73% or 3 sigma).
Stop the line authority
Power given to workers to stop the process when abnormalities
occur, allowing them to prevent the defect or variation from being passed along.
Japanese term – Seiton; Neatly arrange and identify parts and tools for ease of use
A condition in which gains made in one activity are offset by losses in another activity, or activities that are caused by the same actions that created gains in the first activity.
Subject Matter Expert (SME)
The Subject Matter Expert is that individual who exhibits the highest level of expertise in performing a specialized job, task, or skill within the organization.
An SME might be a software engineer, a helpdesk support operative, an accounts manager, a scientific researcher: in short, anybody with in-depth knowledge of the subject you are attempting to document. You need to talk to SMEs in the research phase of a documentation project (to get your facts straight) and you need to involve them in the technical validation of your drafts (to make sure that your interpretation of information matches theirs).
The storage locations of parts before they go on to the next operation. Supermarkets are managed by predetermined maximum and minimum inventory levels. Each item in the plant is at a designated location.
Japanese term – Shitsuke; Means to form the habit of always following the first 4 S’s. Collectively, they define an orderly, well inspected, clean, and efficient working environment.
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strength (S) or weaknesses (W), and that external to the firm can be classified as opportunity (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's resources and a capability to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection.
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The pace that is set for the system to operate at. Customers establish Takt Time…the following equation is used to establish it: Available production time / required production (fcst & act demand)..must be like units; e.g.,
1 shift = 1980 min/wk 1980 = 10 mim = Takt Time
fcst = 198 units/wk 198
Theory of Constraints (TOC)
Also called constraints management, TOC is a management philosophy that stresses removal of constraints to increase throughput while decreasing inventory and operating expenses. TOC’s set of tools examine the entire system for continuous improvement. The current reality tree, conflict resolution diagram, future reality tree, prerequisite tree and transition tree are the five tools used in TOC’s ongoing improvement process.
Time Based Competition
The belief that the originator or first producer/vendor of a product has a significant market advantage over other companies. See also "Time to Market"
A bi-product of this "race to market" is that competing companies must adapt their organizations in ways to minimize the time it takes to develop a product to exploit the "First on the scene" advantage.
Time to Market
The length of time it takes to develop a new product from inception until its' first market sales.
Total Cycle Time
The Rate of completion of a process of operation. You calculate this number by adding together all individual cycle times in a given process.
Toyota Production System
The production system developed by Toyota Motor Corp. to provide best quality, lowest cost and shortest lead time through the elimination of waste. TPS is based on two pillars: just-in-time and jidoka. TPS is maintained and improved through iterations of standardized work and kaizen (see “jidoka” “just-in-time” and “kaizen”).
Total Productive Maintenance is the total involvement of all employees in a cell to improve the process.
Total Quality Management A systematic customer focused approach to continuous performance improvement. A philosophy and set of guiding principles which represent the foundation for continuously improving the organization through employee involvement. The application of quantitative methods and human resources to improve the materials and services supplied to and by an organization and all the processes within the organization and the degree to which the needs of the customer are met. The integration of fundamental management techniques, existing improvement efforts, and technical tools, under a disciplined approach to focus on continuous improvement.
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One of the 7 types of Waste. Effort which adds no value to a product or service.
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See Work, Value Added
The specific activities required to design, order, and provide a product from concept to launch – order to delivery – raw materials to finished goods.
Value Stream Mapping
The process of detailing the process of converting raw material to finished goods. This is typically mapped with the 7 flows (info, people, equipment, raw material, sub-assembly, assembly, and engineering) one at a time, or in a combination.
Any difference(s) that exist between design specifications and actual output.
Any devices that help operators quickly and accurately gauge production status at a glance. Progress indicators and problem indicators help assemblers see when production is ahead, behind or on schedule. They allow everyone to instantly see the group’s performance and increase the sense of ownership in the area
Refers to the means by which anyone can tell at a glance if production activities are proceeding normally or not. A communication, discipline and pacing tool.
Derived from the pareto chart, the term indicates that many defects come from relatively few causes (the 80/20 rule). For example, 20% of the people in the country make up 80% of the wealth of the country. Vital Few: These are the few (20%) independent variables (X's) which contribute to maximum (80%) of the total variation. These are identified through Pareto Charts and Design of Experiments
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One of the 7 types of Waste. Idle time that is produced when two processes are not synchronized.
The time that a worker is idle when no work is available.
Muda in Japanese. Anything that does not add value to the final product or service, in the eyes of the customer. An activity the customer wouldn't want to pay for if they knew it was happening. There are 7 Types of Waste:
- 1) Defects
- 2) Excess Motion
- 3) Overproducing
- 4) Unnecessary Processing
- 5) Excess Material or Information
- 6) Excess Transportation
- 7) Waiting
Work In Process Inventory - Items (material or information) between machines or processes or activities waiting to be processed. inventory of materials that has been already started processing.
One of the 3 elements of standard work refers to the sequence of operations in a single process that leads a worker to produce quality goods in the most efficient way
Work, Non-Value Added
Rework, set-ups, inspection, repair processing, transportation, unnecessary work to complete the manufacture of a product. Anything that isn’t directly changing the form fit or function of the part.
Work, Value Added
Only necessary direct work to manufacture a product. Anything that the customer is willing to pay for or an operation that changes the form, fit, or function of the part. In order to value added, it must meet 3 criteria: 1) Something customer is willing to pay for; 2) Transform something; 3) Done right the first time