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Glossary of Lean Terms

5S- A 5-step process for organizing and standardizing the workplace, summarized by five words or
phrases beginning with S: Sort, Set in order, Shine, Standardize and Sustain. It is a methodology for
creating a clean, safe, orderly, high performance work environment.

A3 - Refers to a 11x17" piece of paper and is a problem-solving tool that captures an entire issue on
one piece of paper by following the DMAIC principle.

Continuous improvement - The act of improving customer satisfaction through continuous and
incremental improvements to processes by removing unnecessary steps or activities.

Cycle time - The time that it takes to complete one operation. For example, the time that it takes to
process one purchase request.

DMAIC (Define, Measure, Analyze, Improve, Control) - Is a Six Sigma methodology that aims to
remove defects.

Kaizen event - An event that identifies waste in a given business process and rapidly implements
improvements to that process. Kaizen is Japanese for, "change for the better."

Kanban - A "pull" visual management system for coordinating production orders by indicating when an
item needs replenishment.

Lead Time- The time that elapses between when a product or service is requested and when the
service or product is delivered to the customer.

Non-value added activities - Any activity on a service that does not add value for the customer; also
referred to as “muda,” the Japanese term for waste. Multiple handoffs and reviews that could have
been prevented through error-proofing are examples of non-value-added activities.

PDCA (Plan-Do-Check-Act) - A four-step cycle for continuous process improvement.

Red Tag - A visual method used to easily identify unnecessary items in a workplace. Items that are not
needed for completing a job are moved to a holding area, sorted, and then stored or discarded
depending on their determined need for completing a job.

Seven wastes - Overproduction, Waiting, Transportation, Processing (Over-processing), Inventory

(Storing), Motion and Defects. The seven wastes are common steps within any operation that add no
value for the customer.

SIPOC diagram - The SIPOC (supplier-input-process-output-customer) diagram is a tool used in the Six
Sigma methodology to identify all relevant elements of a process improvement project and to narrow
the scope of a complex project before the work begins.

Six Sigma - Is a set of data-derived problem-solving tools and methods that are used to improve
performances and decrease process variation. It also refers to a training process for black- and green-
belt level practitioners.

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Standard work - Step-by-step procedures written by staff members working within a given process on
the best way to perform the work. Standard work maximizes value-added activities and is practiced by
all employees within a given work unit to minimize mistakes (waste). To foster continuous
improvement, standard work is always evolving to make the process better and more efficient

Swim Lane Map - A map used to study a process that involves more than three functions and illustrates
“who does what” in a given process. The swim lane map is a useful tool for effectively showing
interruptions to a process due to handoffs between functions, transportation, queues and rework
involved in a process.

Takt time - The average rate at which the customer consumes or requires the product or service (i.e.
#/day or #/hour).

Value-added activities - Activities within a process that add value to the customer.

Visual control - A system of visual clues that quickly let workers know what and how work should be
done.

Visual management - A technique that expresses information publicly and is easily understood by
everyone in a work area.

http://www.lean.state.mn.us/resources.htm 

http://www.ruskwig.com/transformation/5s.htm 

http://www.graphicproducts.com/tutorials/kaizen/index.php 

http://www.incitoconsultants.com/solutions.php 

http://www.allianceindia.co.in/newsite/eseminar.aspx 

http://www.allianceindia.co.in/newsite/viewvideos.aspx?tid=7 

http://www.allianceindia.co.in/newsite/viewvideos.aspx?tid=9 

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