STATE OF MAINE

LEAN GLOSSARY
3P: Production Preparation Process. Rapidly designing processes and equipment to ensure
capability, built-in quality, productivity, and Takt-Flow-Pull. The 3P minimies resources
needed such as capital, tooling, space, inventory, and time.
3Ds: !orking conditions or "obs that are dirty, dangerous, or di##icult.
3 ELEMENTS OF DEMAND: The three drivers o# customer satis#action are $uality, %ost, and
&elivery.
3 GEN PRINCIPLES: The three principles are '( o##ice #loor )gemba(, *( the actual product
)gembutsu(, and 3( the #acts )gen"itsu(. The key to success#ul +aien is going to the worksite,
working with the actual product,process, and getting the #acts.
3 ELEMENTS OF JUST IN TIME (JIT): The three elements o# -.T are '( takt time, *( #low
production, and 3( the downstream pull system.
4 Ms: /an,!oman, /achine, /ethod, and /aterial.
5 S: The overall idea behind the Five Ss is that there is 0a place #or everything and everything
goes in its place.0 5S is a systematic process o# workplace organiation -- the principle o#
waste elimination through workplace organiation. 1very item that is used in a business
process is clearly labeled and easily accessible. &iscipline, simplicity, pride, standardiation
and repeatability, as emphasied in the Five Ss, are critical to the 2ean enterprise in general
and #low implementations speci#ically. The #ive terms, all beginning with S, are derived #rom
the -apanese words seiri, seiton, seiso, seiketsu, and shitsuke. .n 1nglish the 5Ss are sort,
set in order, shine, standardie, and sustain.
Five S
AMERICAN JAPANESE
SORT 1valuate and eliminate
everything not required #or
the current work, keeping
only the bare essentials.
Seiri
34ay-ree5
)6rganiation(
4eparate needed tools, parts, and
instructions #rom unneeded materials
7 instantly remove the latter
unnecessary things.
SET IN ORDER
)4traighten(
8rrange items in a way that
they are easily visible and
accessible.
Seito
34ay-ton5
)Tidiness(
Put things in order9 :eatly arrange
and identi#y materials 7
equipment,tools #or ease o# use
S!INE
)4weep(
.nspect, re#ine, and clean
everything and #ind ways to
keep it clean. /ake this a
part o# your everyday work.
Seiso
34ay-soo5
)Purity(
%onduct a cleanup campaign. %lean
to original condition. &o cleaning
work positively.
STANDARDI"E
)4ystematie(
%reate rules and procedures
by which the #irst 3 45s are
maintained. &ocument.
Sei#ets$
34ay-kit-sue5
)%leanliness(
%onduct the other 34s at #requent, in
#act daily, intervals to maintain a work
environment in per#ect condition.
Free #rom bad habits.
SUSTAIN
)4el#-discipline(
+eep the other ;4 activities
#rom unraveling.
S%its$#e
34hit-uk-ay5
)&iscipline(
<e disciplined. Form the habit o#
always #ollowing the #irst #our 4s.
/aintain what has been achieved. <e
well-mannered= use polite behavior.
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5 &!'s: 8 very simple but e##ective method o# analying and solving problems by asking
3whyB5 #ive times )or as many times as needed( to get to the root cause o# the problem. There
can be more than one root cause, and in an organiational setting, usually a team would carry
out a root cause analysis #or a problem. There is no special technique required #or this.
( NE& TOOLS: Problem-solving tools used #or +aien and Coshin +anri activities. They are
'( matriD diagram, *( relationship diagrams, 3( process decision program charts, ;( activity
network diagrams, E( radar charts, F( tree diagrams and ?( a##inity diagrams.
( TOOLS OF )C: &ata gathering and analysis tools used #or kaien activities originally by $%
%ircles. They are '( check sheets, *( cause and e##ect diagrams, 3( Pareto diagrams, ;(
histograms, E( graphs, F( scatter diagrams, and ?( broken line graphs.
( &ASTES: Taiichi 6hnoGs original enumeration o# the wastes commonly #ound in physical
production. These are overproduction ahead o# demand, waiting #or the neDt processing top,
unnecessary transport o# materials )#or eDample, between #unctional areas o# #acilities(, over-
processing o# parts due to poor tool and product design, inventories more than the absolute
minimum, unnecessary movement by employees during the course o# their work )looking #or
parts, tools, prints, help, etc.(, and production o# defective parts.
* &ASTES: There are H types o# waste that describe all waste#ul activity in a work
environment. 1limination o# the H wastes leads to improved results,outcomes. The H wastes
are '( 6verproduction, *( Transportation, 3( 1Dcess /otion, ;( !aiting, E( 6ver-processing, F(
.nventory, ?( 1rrors,&e#ects, and H( Inderutilied People.
A3 REPORT: This 0830 sied )'' inches D '? inches( #orm is used at Toyota as a one-sheet
problem evaluation, root cause analysis, and corrective action planning tool. .t o#ten includes
sketches, graphics, #low maps or other visual means o# summariing the process current
condition and #uture state. .t is evidence o# 83 thinking.
A3 T!IN+ING: 83 Thinking is not the same as the 83 Report. The 83 report is the evidence
o# 83 logical thinking based on the scienti#ic method o# problem-solving, on the Plan-&o-
%heck-8ct cycle. .ts power derives #rom the development and sustainment o# a dynamic
P&%8 cultural mindset and thought and dialogue process. The power o# the 83 report is its
re#lection o# the process leading to its development and management.
83 Thinking #acilitates ob"ective, logical, and systematic thinking= integrates and visualies
)visual communication( a concise, understandable learning #ramework= and requires alignment,
buy-in, and systems thinking through dialogue. .t is at its most power#ul when it becomes part
o# the management philosophy.
A,NORMALIT' MANAGEMENT: <eing able to see and quickly take action to correct
abnormalities )any straying #rom 4tandard !ork(. This is the goal o# standardiation and
visual management. %ontinuous waste elimination and problem solving through kaien are
only possible when the abnormalities are visible.
ACTI-IT'.,ASED COSTING (A,C): 8 management accounting system that assigns cost to
products based on the resources used to per#orm a process )design, order entry, production,
etc.( These resources include #loor space, raw materials, energy, machine time, labor, etc.
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ANDON: 8 type o# visual control that displays the current state o# work )i.e., abnormal
conditions, work instructions, and "ob progress in#ormation(. .t is one o# the main tools o#
-idoka.
8 tool o# visual management, originating #rom the -apanese word #or GlampG. .t is a
line,process stop. .n the manu#acturing world, sometimes a cord that a worker can pull to stop
the assembly line when he or she detects a de#ect. /ost commonly, andons are lights placed
on machines or on production lines to indicate operation status. 8ndons are o#ten color-coded
green )normal operations(, yellow )changeover or planned maintenance(, and red )abnormal,
machine down(. 6#ten combined with an audible signal such as music or alarms.
ANDON ,OARD: 8 visual control device in a work area )in a manu#acturing environment,
typically a lighted overhead display(, providing the current status o# the process system and
alerting team members to emerging problems.
AUTONOMATION: 4topping a line automatically when a de#ective part is detected. /achines
are given 3human intelligence5 and are able to detect and prevent de#ects. /achines stop
autonomously when de#ects are made, asking #or help. 8utonomation was pioneered by
4akichi Toyoda with the invention o# automatic looms that stopped when a thread broke,
allowing an operator to manage many looms without risk o# producing large amounts o#
de#ective cloth. 8utonomation is a pillar o# the Toyota Production 4ystem. J4ee also JidokaK
AUTOMATIC TIME: The time when a machine,equipment is running on auto cycle and a
person does not needed to be there to operate the machine. %ommonly used #or :% machine
cycles, oven cycles, wash cycles, copiers, etc.
,AC+ FLUS!ING: 8 method o# recording accounting transactions #or labor and materials
based on what was shipped rather than by using material issues or cards. The aim o# back
#lushing is to reduce the number o# non value-added transactions.
,ALANCED PLANT: 8n o##ice,program where the capacity o# all resources are balanced
eDactly with customer demand.
,ALANCED SCORECARD: The <alanced 4corecard is a strategic management system used
to drive per#ormance and accountability throughout the organiation. The scorecard balances
traditional per#ormance and,or #inancial measures with more #orward-looking indicators in #our
key dimensions9 Financial, .ntegration,6perational 1Dcellence, 1mployees, and %ustomers. .t
is an organiational #ramework #or implementing and managing strategy at all levels o# an
enterprise by linking ob"ectives, initiatives, and measures to an organiation5s strategy. The
scorecard provides an enterprise view o# an organiation5s overall per#ormance. .t integrates
#inancial measures with other key per#ormance indicators around customer perspectives,
internal business processes, and organiational growth, learning, and innovation.
The balanced scorecard was created by &r. Robert +aplan 7 &r. &avid :orton in the early
'AA@s.
,ATC!: /aking or doing activities in groups, lots, or batches in which each part or #inished
good in the batch is identical. %an happen in both o##ice,admin. and manu#acturing
environments. %reates GwasteG.
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,ATC!.AND.)UEUE: Producing more than one piece o# an item and then moving those
items #orward to the neDt operation be#ore they are all actually needed there. Thus items need
to wait in a queue. 8lso called 0<atch-and-Push.0 %ontrasted with continuous #low,Pull.
,ENC!MAR+ING: The process o# measuring products, services, and practices against those
o# leading organiations,entities. .t #ocuses on best practices and methods o# world class
leaders and compares key per#ormance practices and metrics with other organiations in
similar or relevant work, establishing standards #or improvement based on what others have
been able to achieve. .t is an improvement process in which a company or organiation
compares its per#ormance against best-in-class companies or organiations, determines how
those companies or organiations achieved their per#ormance levels, and uses the in#ormation
to improve its own per#ormance. The sub"ects that can be benchmarked include strategies,
products,programs,services, operations, processes, and procedures.
,EST.IN.CLASS: 8 best-known eDample o# per#ormance in a particular #ield,area, operation.
6ne needs to de#ine both the class and the operation to avoid using the term loosely.
,REA+T!ROUG! O,JECTI-ES: 6b"ectives that are 3stretch goals5 #or the organiation.
<reakthroughs represent a signi#icant change #or the organiation providing a signi#icant
competitive advantage. <reakthrough goals are achieved through multi-#unctional teamwork.
,RO&NFIELD: 8n eDisting and operating production #acility that is set up #or mass-production
manu#acturing and management methods.
,OTTLENEC+: 8 process in any part o# the enterprise )o##ice, production, sales, etc.( that
limits the throughput o# the whole process. 8ny resource whose capacity is equal to, or less
than the demand placed on it.
,UILD.TO.ORDER: &esigning, building, and delivering a service,product based on a
customer-speci#ic request. Pull is an important concept o# <uild-To-6rder. %ontrast to
repetitive manu#acturing.
CAPACIT' CONSTRAINT RESOURCES (CCR): !here a series o# non-bottlenecks, based
on the sequence in which they per#orm their "obs can act as a CONST!"NT.
CATC!,ALL: 8 process used in Coshin Planning to communicate vertically to obtain
consensus on the /eans that will be used to attain each <reakthrough 6b"ective. .t is a series
o# discussions between managers and their employees during which data, ideas, and analysis
are thrown like a ball-back, #orth, up, down, horiontally across the organiation. This opens a
productive dialogue throughout the entire organiation.
CAUSE AND EFFECT DIAGRAM: 8 problem solving tool used to identi#y relationships
between e##ects and multiple causes )also Fishbone &iagram, .shikawa &iagram(.
CELL: 8n arrangement,layout o# people, machines, materials and methods in which
processing steps are ad"acent and in sequential order so that work 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 o# a cell is to achieve and maintain e##icient continuous #low.
%ontrast with Functional 2ayout.
CELLULAR MANUFACTURING: 8n alignment o# processes and equipment in correct process
sequence, where operators work within the cell and materials are presented to them #rom the
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outside o# the cell. 6#ten, cellular manu#acturing has not taken into account waste elimination
or 4tandard !ork principles, and there#ore greater savings have not been realied.
C!A+U.C!A+U LINE: 8 method o# conducting single-piece #low, where the operator
proceeds #orm machine to machine, taking the part #rom one machine and loading it into the
neDt. 8 production line where the only human activity is to GchakuG or GloadG the machines. The
machines e"ect the #inished parts automatically using hanedashi, so that the operators do not
have to wait. J4ee #O!$-#O!$K
C!ANGE AGENT: 4omeone who will lead the organiation and its sta## #rom the traditional
mentality to becoming a 2ean 6rganiation -- who leads the cultural change in an
organiation. 4omeone whose ob"ective is to help cause the trans#ormation #rom %urrent
4tate )traditional processing, e.g. push, batch and queue( to Future 4tate )2ean 1nterprise(.
The catalytic #orce moving organiations and value streams out o# the world o# inward-looking
batch-and-queue.
C!ANGE MANAGEMENT: The process o# planning, preparing, educating, resource
allocating, and implementing o# a cultural change in an organiation.
C!ANGEO-ER: The time #rom when the last good piece comes o## o# a machine or process
until the #irst good piece o# the neDt product is made. %hangeover time includes set up, warm
up, trial run, ad"ustment, #irst piece inspection, etc. This includes preparation )getting ready to
make the change(, replacement )removing and replacing #iles, program, etc.(, positioning
)locate the materials in the correct location #or use #or the task,step(, and ad%ustment )#irst-item
inspection, materials,equipment tweaking, trial runs(.
CONCURRENT ENGINEERING: &esigning a product )or service(, its production process, the
supporting in#ormation #low, and its delivery mechanism at the same time. The bene#its
include shorter development time #rom concept to market, a higher product quality, lower
overall development cost and lower product or service unit cost. %oncurrent engineering
requires up-#ront planning and dedicated resources early in the early stages o# development.
CONSTRAINT: 8nything that limits a system #rom achieving higher per#ormance or
T&O'(&)'T. 8lternate9 That *OTT#+N+C, which most severely limit the organiationGs
ability to achieve higher per#ormance relative to its purpose,goal.

CONTINUOUS FLO&: 1ach step,process )in the o##ice or plant setting( makes or completes
only the one piece that the neDt step,process needs, and the batch sie is one - single-piece
#low or one-piece #low. This is the opposite o# batch-and-queue.
CONTINUOUS IMPRO-EMENT: The never-ending pursuit o# waste elimination by continually
creating a better workplace, better products, and greater value to society. The process is
never per#ect -- as the name implies, with continuous improvement you are never done= even
the improvement can be improved.
.t is to institutionalie the practice o# making many small improvements every day and improve
overall e##iciency. %ontinuous .mprovement re#ers to the idea that a large number o# small
improvements in processes are easier to implement than ma"or improvements and have a
large cumulative e##ect.
CONTROL C!ART: 8 statistical problem solving tool that indicates control o# a process within
established limits.
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CONTROL ELEMENT: 8ny speci#ic process variable that must be controlled. The
measurement o# a control element indicates whether the process is operating under stable
conditions.
COST OF POOR )UALIT': %osts associated with supplying a poor quality product.
%ategories o# cost include internal and eDternal #ailure costs.
COST OF )UALIT': %osts associated with supplying a quality product. %ategories o# cost
include prevention, appraisal, and #ailure.
COUNTERCLOC+&ISE FLO&: 8 basic principle o# 2ean manu#acturing cell layout is that the
#low o# material and the motion o# people should be #rom right to le#t, or counterclockwise. The
origin o# this idea came #rom the design o# lathes and machine tools with the chucks on the le#t
side, making it easier #or right-handed people to load #rom right to le#t.
COUNTER MEASURES: 8ctions taken to bring less than eDpected results o# a process back
up to targeted levels.
CO-ARIANCE: The impact o# one variable upon others in the same group.
CUSTOMER: %ustomers are the requestors,receivers,LpayersM o# the service,output o# the
process. %ustomers can include clients, their #amilies and #riends, re#erral sources, providers,
payers, community, and other sta##. %ustomers can be internal )sta##, programs( to the
organiation or eDternal )clients, their #amilies, contractors, etc.( and both are key to the
success o# organiational change,improvement. >enerally, organiational sta## are viewed as
providers,suppliers and clients as customers but both can be either at di##erent steps in a
process.
C'CLE TIME: %ycle time is the time it takes to do one complete repetition o# any particular
task,step. %ycle time can be categoried into '( manual cycle time, *( machine cycle time, and
3( auto cycle time. 8lso re#erred to as touc- time or -ands-on time. .# cycle time #or every
step,operation in a complete process can be reduced to equal Takt Time, the service,product
can be made in 4ingle-Piece Flow.
DAIL' MANAGEMENT: The day-to-day activities that are required to serve the customers and
ensure that the business is generating pro#it.
DAS!,OARD: 8 visual tool used #or collecting and reporting in#ormation about vital customer
requirements and,or your businessG per#ormance #or key customers. &ashboards provide a
quick summary o# process and,or product per#ormance.
DA'S SUPPL' OF IN-ENTOR' (DSI): Total number o# days )i# the production level equals
ero( that it would take to deplete #inished goods inventory #or the speci#ied product line.
DEPENDENT E-ENTS: 1vents that occur only a#ter a previous event.
DESIGNED FOR MANUFACTURING AND ASSEM,L' (DFMA): 8 way o# improving cost,
quality, and sa#ety o# the manu#acturing and assembly processes by design.
DESIGN OF E/PERIMENT (DOE): Planning and conducting eDperiments and evaluating the
results. The outcome o# a design o# eDperiment includes a mathematical equation predicting
the interaction o# the #actors in#luencing a process and the relevant output characteristics o#
the process.
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DO&NSTREAM PULL S'STEM: 4ee )'## S.ST+/.

EIG!T &ASTES: J4ee 0 1!ST+SK
ELEMENTS OF &OR+: The elements o# work are '( value-added work, *( non value-added
work, and 3( waste. Thoroughly understanding the elements o# work is a key #irst step to 2ean
thinking.
ERROR.PROOFING: 8lso called /istake-Proo#ing. 8 system that addresses both the
work,product and the processes to detect errors be#ore they become de#ects. J4ee )oka-
.okeK
E/TERNAL SET.UP: 8ll set-up tasks that can be done while equipment is still running.
1Damples are collecting tools, the neDt piece o# material, preparing or #iDtures. /oving set-up
activities #rom internal to eDternal in order to reduce down time is a central activity o# set-up
reduction and 4/1&.
E-APORATING CLOUDS: 8 problem methodology used in TC16RN 6F %6:4TR8.:T4.
%on#lict Resolution.
E-ER' PART E-ER' (EPE): /easured in terms o# time )hours, days, weeks, months, etc.(
L1very Part 1very OM indicates the level o# #leDibility to produce whatever the customer needs.
For instance, 1very Part 1very day would indicate that changeovers #or all products required
can be per#ormed each day and the products can be supplied to the customer.

FAILURE MODES AND EFFECTS ANAL'SIS (FMEA): 8 structured approach to determining
the seriousness o# potential #ailures and #or identi#ying the sources o# each potential #ailure.
The aim is to identi#y possible #ailures and implement corrective actions to prevent #ailures.
FIRST IN FIRST OUT (FIFO): 8 system o# keeping track o# the order in which in#ormation or
materials need to be processed. The goal o# F.F6 is to prevent earlier orders #rom being
delayed un#airly in #avor o# new orders.
FI-E S: 4ee 5 S.
FI-E &!': 4ee 5 1&..

FLO&: .n its purest #orm continuous #low means that items are processed and moved directly
to the neDt process one piece at a time. 1ach processing step completes its work "ust be#ore
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the neDt process needs the item, and the trans#er batch is one. 8lso known as 0one-piece
#low0 and 0make one, move one0.
FLO& C!ART: 8 problem-solving tool that maps out the steps in a process visually. The #low
)or lack thereo#( becomes evident and the wastes and redundancies are identi#ied.
FLO& +AI"EN: Radical .mprovement, usually applied only once within a value stream. J4ame
as ,!",!,'K
FLO& PRODUCTION: 8 way o# doing things in small quantities in sequential steps, rather
than in large batches, lots or mass processing. Product )or service( moves )#lows( #rom
process to process in the smallest, quickest possible increment )one piece(. 6nly acceptable
quality products or services are accepted by the downstream customer. 4ee also ON+-)"+C+
F#O1.
FUNCTIONAL LA'OUT: The practice o# grouping activities,#unctions or machines by type o#
operation per#ormed. For eDample, service request-entry and copiers 7 shredders. %ontrast
with Cells.
GEM,A: .s a -apanese word meaning 0actual place0 or the place where you work to create
value. !ithin each organiation, the (emba can be a di##erent place.

GEM,A PRODUCTION S'STEM: 8 manu#acturing operations trans#ormation strategy based
on the Toyota Production 4ystem.
GEM,UTSU: -apanese #or Gactual thingG or Gactual productG. The tools, materials, machines,
parts, and #iDtures that are the #ocus o# kaien activity.
GENC!I GEN,UTSU: >o see= go to the real place and see what is actually happening. >o
see the problem. This is the belie# that practical eDperience is valued over only theoretical
knowledge. Nou must see the problem to know the problem. )6n 4ite, !ith the 8ctual Things(
GENJITSU: -apanese #or Gthe #actsG or Gthe realityG. The actual #acts or the reality o# what is
happening on the shop #loor and in the business.
GREENFIELD: 8 new #acility in which 2ean principles are designed into
processing,manu#acturing and management systems #rom the beginning.
!ANEDAS!I: 8uto-e"ect devices that unload the part #rom the machine once the cycle is
complete. This allows the operators to go #rom one machine to the neDt without waiting,
picking up and loading parts. Canedashi is a key component o# chaku-chaku lines.
!EIJUN+A: +eeping total production volume as constant as possible. The overall leveling, in
the production schedule, o# the volume and variety o# items produced in given time periods.
Cei"unka is a pre-requisite #or -ust-.n-Time delivery. J4ee #+2+#"N( 3 )O$'CT"ON
S/OOT&"N(4

!ISTOGRAM: 8 problem-solving tool that displays data graphically in distribution. .t is o#ten
used to reveal the variations that any processes contain.
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!ORI"ONTAL !ANDLING: !hen tasks are assigned to a person in such a way that the #ocus
is on maDimiing a certain skill set or use o# certain types equipment, this is called horiontal
handling. Coriontal handling does not bene#it #low. J%ontrast to 2+T"C!# &!N$#"N(4
!OS!IN: >oals )with targets( and the means #or achieving them in order to address business
priorities to move the organiation to a new level o# per#ormance= variable #rom year-to-year=
could also be multi-year= and is developed by eDecutive management.
!OS!IN +ANRI: 8 method o# policy deployment and strategic decision-making that #ocuses
and aligns the organiation on a #ew vital LbreakthroughM improvements. The ob"ectives and
means to achieve the ob"ectives are cascaded down through the entire organiation using a
series o# linked matrices. The process is sel#-correcting and encourages organiational
learning and continuous improvement o# the planning process itsel#. .t is the selection o#
goals, pro"ects to achieve the goals, designation o# people and resources #or pro"ect
completion, and establishment o# pro"ect metrics9 the ship in a storm going in the right
direction= shining needle= strategic policy deployment= a power#ul strategic planning system.
&eveloped in -apan in the 'AF@Gs. J8lso known as )olic5 /anagement or )olic5 $eplo5ment,
&os-in )lanningK
.n Coshin +anri, organiational leadership identi#ies critical )3-E( breakthrough ob"ectives,goals
and subordinates all other goals or pro"ects to achieving those ob"ectives. Then a process
called catc- ball is used to assure that these ob"ectives are 4/8RT )4imple, /easurable,
8ttainable, Realistic, Time-based( and, most important, that resources are available. This
catc- ball goes on back and #orth between di##erent levels o# the organiation until there is
alignment and agreement that the breakthrough goals are not out o# sight.
!OS!IN PLANNING: 8lso known as /anagement by Policy or, alternatively, 4trategy
&eployment. 8 means by which goals are established and measures are created to ensure
progress toward those goals. CP keeps activities at all levels o# a company aligned with its
overarching strategic plans. Coshin Planning typically begins with the 0visioning process,0
which addresses the key questions9 !here do you want to be in the #utureB Cow do you want
to get thereB !hen do you want to achieve your goalB 8nd !ho will be involved in achieving
the goalsB CP then systematically eDplodes the whats, whens, whos and hows throughout the
entire organiation
IJO.+ANRI: J4ee !bnormalit5 /anagement4
INFORMATION MANAGEMENT TAS+: The task o# taking a speci#ic product #rom order-taking
through detailed scheduling to delivery. J4ee 2alue StreamK
INFORMATI-E INSPECTION: 8 #orm o# inspection used to determine non-con#orming
product. J4ee "nspection or Judgment "nspectionK
INSPECTION: %omparing product, or component against speci#ications to determine i# such
product or component meets requirements. J4ee Judgment "nspection or "nformative
"nspectionK
INTELLIGENT AUTOMATION: J4ee !utonomation4
INTERNAL SET.UP: 4et-up tasks that can only be done when the machine is stopped.
1Damples are changing the #iDture, changing the tools, or making ad"ustments. 8#ter as many
o# the internal tasks have been eDternalied as is possible, the remaining internal changeover
time is reduced through use o# quick-change mechanisms.
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IN-ENTOR': 8 ma"or cost #or most organiations,businesses= inventory is all raw materials,
purchased parts, work-in-process components, and #inished products that are not yet
provided,sold to a customer. .nventory may also include LconsumableM goods used in the
process,production itsel#.
JIDO+A: 4topping a process automatically when a de#ective product is detected.
8utomatically stopping abnormalities and immediately noti#ying the worker. The idea is to build
in quality by preventing any error #rom going to the neDt step,process. 1Dceptions are handled
in real time. 1Damples include the andon and poka5oke -- also known as Lautonomation with a
human touch.M .t is one o# the two main pillars o# TP4. J4ee !utonomation4
JIS!U+EN: /anagement driven kaien activity where management members identi#y areas in
need o# continuous improvement and spread in#ormation through the organiation to stimulate
kaien activity. Fresh eyes= an important concept in 6bservation-<ased 4a#ety.
JUDGMENT INSPECTION: 8 #orm o# inspection used to determine non-con#orming products.
J4ee "nspection or "nformative "nspectionK
JUST.IN.TIME (JIT): 8 system to make what the customer needs when the customer needs it
in the quantity the customer needs, using minimal resources o# manpower, material, and
machinery P :o /ore, :o 2ess. The three elements to making -ust-in-Time possible are Takt
Time, Flow production, and the Pull system, as well as 4tandard !ork. The opposite o# -ust-
.n-Time is L-ust-.n-%aseM -- avoid this temptation.
-.T requires waste elimination, process simpli#ication, set-up and batch-sie reduction, parallel
)rather than sequential( processing, and layout redesign. -ust-.n-Time approaches -ust-6n-
Time when upstream activities occur minutes or seconds be#ore down-stream activities, so that
single-piece #low is possible. -ust-.n-Time is one o# the two main pillars o# TP4.
+AI.A+U: The opposite o# kaien. %hange #or the worse. <ad change.
+AI+A+U: Radical improvements or re#orm that a##ect the #uture value stream. 6#ten these
are changes in business practices o# business systems. Isually applied only once within a
Qalue 4tream.
+AI"EN: The -apanese word #or Gchange #or the 3betterG or GimprovementG. +aien is an
improvement, continual improvement in personal li#e, home li#e, social li#e, and working li#e. .n
the workplace, +aien means continuing improvement involving everyone regardless o#
position. .t is a business philosophy o# continuous cost reduction, reduced quality problems,
and delivery time reduction through rapid, team-based improvement activity. %ontinuous
improvement through incremental improvements. +aien implies more than improvement in
basic processes. +aien represents a philosophy within which an organiation, and the
individuals within it, undertake continual improvements o# all aspects o# organiational li#e.
The key to success#ul +aien is going to the worksite, working with the actual product,process,
and getting the #acts.
+aien is a system o# incremental continuous improvement in which instances o# waste )/uda(
are eliminated one-by-one at minimal cost. This is per#ormed by all employees rather than by
"ust specialists. J4ame as )rocess ,ai6enK
+AN,AN: 8 -apanese word #or GsignG, +anbans are typically a card or other visual method o#
triggering the pull system based on actual usage o# material. .t is a central element o# a -ust in
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Time system. +anbans are attached to the actual work,item,product, at the point o# use.
+anbans are cards that have in#ormation about the parts )name, part number, quantity, source,
destination, etc.( but carts, boDes, and electronic signals are also used. 4quares painted on
the #loor to indicate storage or incoming areas are #requently, but mistakenly, re#erred to as
kanbans.
LAST IN FIRST OUT (LIFO): The result o# a typical material or in#ormation #low system
without F.F6, resulting in earlier orders being perpetually delayed by new orders arriving on
top o# them.
LEAD.TIME: The total time a customer must wait to receive a product or service a#ter placing
the request. !hen a scheduling and production system is running at or below capacity, 2ead
Time and Throughput Time are the same. !hen demand eDceeds the capacity o# a system,
there is additional waiting time and 2ead Time eDceeds Throughput Time.
LEAN: #ean is simply a thought process or approach, not a tool, used to look at your business
whether it is service, manu#acturing, or any other activity where you have a supplier and a
customer,receiver. The key thought processes within 2ean are identi#ying GwasteG #rom the
customer perspective and then determining how to eliminate it. !aste is de#ined as the
activity or activities that a customer would not want to LpayM #or and,or that add no value to the
product or service #rom the customerGs perspective. 6nce waste has been identi#ied in the
%urrent 4tate, a plan is #ormulated to reach the Future 4tate in an e##ective manner that
encompasses the entire system. The term 0lean0 was coined by -ames P. !omack and
&aniel T. -ones in their 'AAF classic #ean T-inking, based on the Toyota Production 4ystem
)TP4(.
LEAN MANUFACTURING: 8 business practice characteried by the endless pursuit o# waste
elimination. 8 manu#acturer that is lean uses the minimum amount o# manpower, materials,
money, machines, space etc. to get the "ob done on time.
LEAN ENTERPRISE: 8 2ean 1nterprise is an organiation that is engaged in the endless
pursuit o# waste elimination. 8 2ean 1nterprise has a culture that does not tolerate waste o#
any kind.
LEAN TRANSFORMATION: &eveloping a culture that is intolerant to waste in all o# its #orms.
8 success#ul 2ean Trans#ormation should result in a 2ean 1nterprise, an organiation that is
engaged in the endless pursuit o# waste elimination
.
LE-ELING: 4moothing out the production schedule by averaging out both the volume and
miD o# products. Production leveling allows a consistent work#low, reducing the #luctuation o#
customer demand with the eventual goal o# being able to produce any product any day.
2eveling is the #oundation o# a >emba Production 4ystem.
LOAD.LOAD: 8 method o# conducting single-piece #low, where the operator proceeds #orm
machine to machine, taking the part #orm one machine and loading it into the neDt. J4ame as
%haku-%hakuK
MAC!INE AUTOMATIC TIME: The time it takes #or a machine to produce one unit, not
including the manual time to load and unload.
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MAC!INE C'CLE TIME: The time it takes #or a machine to produce one unit, including the
manual time it takes to load and unload.
MAC!INE &OR+: !ork that is done by a machine. The time it takes to do machine work can
overlap with manual work, i# the machine is manually operated.
MANAGEMENT ,' O,JECTI-ES (M,O): The precursor to Coshin planning. /<6 was
introduced by Peter &rucker in his 'AE; book, T-e )ractice of /anagement.
MANUAL &OR+: !ork that is done by people, without the aid o# machinery. The human
tasks o# operating or loading machines can also be called manual work.
MUDA: The -apanese word #or Gwaste.G 8ny activity that adds cost without adding value to
the product. 8ny human activity which absorbs resources, but creates no real value #or the
customer. J4ee Non-2alue-!dded, 1asteK
MURA: Qariations and variability in work method or the output o# a process= unevenness in
operations.
MURI: 6verworking, overburdening o# people and equipment= unreasonableness= eDertion=.
MULTI.MAC!INE !ANDLING: !hen a machine operator is running more than one machine
o# a certain type, this is called multi-machine handling.
MULTI.PROCESS !ANDLING: !hen a machine operator is doing tasks #or multiple
processes sequentially, and this is contributing to the #low o# material, it is called multi-process
handling.
NAGARA: 8ccomplishing more than one task in one motion or #unction. 8 system where
seemingly unrelated tasks can be produced by the same worker simultaneously. -apanese #or
Gwhile doing somethingG.
NAGARA S'STEM9 8 production system where seemingly unrelated tasks can be produced
by the same operator simultaneously.
NEMA&AS!I: To prepare a tree #or transplanting P this term re#ers to the #ormal and in#ormal
method o# gaining consensus prior to the implementation o# a Coshin or plan. Preliminary
work to involve other sections,departments in discussions to seek input, in#ormation, and,or
support #or a proposal or change )policy, etc.( that would a##ect them.

NON.-ALUE.ADDED &OR+: 8ctivities or actions that may or may not be necessary but do
not add real value as de#ined by the customer, making such activities or action a #orm o#
waste.. 1Damples are packaging, paperwork, travel, and inspection. :on-value-added tasks
can create value i# their #unction is to identi#y and eliminate waste.
OEE: 4hort #or 6verall 1quipment 1##ectiveness, 611 is calculated based on 8vailability D
Per#ormance D $uality to determine how much o# the time a piece o# equipment is being used
while it is actually making good parts at an appropriate speed. 611 is one o# the E pillars o#
TP/.
ONE.PIECE FLO&: /oving the work,product through each step,operation as a single part,
never handled in batches. 6ne-piece #low processing is when the work,item,product is made
one at a time and passed on to the neDt process. 8mong the bene#its o# one-piece #low are '(
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the quick detection o# de#ects to prevent a large batch o# de#ects, *( short lead-times o#
processing, 3( reduced material and inventory costs, and ;( design o# workstations and
equipment o# the right sie and design. .t #orces near-per#ect balance and coordination.
OPERATOR C'CLE TIME: The time it takes #or a worker or machine operator to complete a
sequence o# operations, including loading and unloading, but not including waiting time.
OPEN ROOM EFFECT: This common practice in -apanese o##ices involves taking down the
walls and cubicles o# an o##ice and laying all o# the desks out into one big Gopen roomG. This
saves space and improves communication between those per#orming related tasks and
creates a sense o# teamwork.
OPERATING E/PENSES: The money required #or the system to convert inventory into
throughput.
OPERATIONS: !ork or steps taken to trans#orm material #rom raw materials to #inished
product. J4ee )rocessK
O-ERALL E)UIPMENT EFFECTI-ENESS: J4ee O++4
PACEMA+ER: 8ny process point along a value stream that sets the pace #or the entire
stream -- a device or technique use to set the pace o# production and maintain Takt time.
PARADIGM S!IFT: %hanging one5s concept o# what was believed to be correct. For
eDample9
6ne o# the ma"or #unctions o# management is to make decisions about how work
should be done )belie#9 workers are not capable o# this(. P T6 P The People who do,
are closest, to the work know it the best and how it can be done better.
.t is valuable and important to conduct reviews and inspections to assure the quality o#
work being done,produced. PT6-- Reviews and inspections in themselves are really a
waste o# people and time because the work should be done right the #irst time and that
should be the #ocus.
PARETO C!ART: 8 problem solving tool in the #orm o# a vertical bar graph showing the bars
in descending order o# signi#icance #rom le#t to right. 8 Pareto %hart #ocuses improvement
activity on the Lvital #ewM and not the trivial many. The H@,*@ Rule comes #rom the Pareto
Principle, stating that *@R o# the items account #or H@R o# the activity )problems, sales,
de#ects, etc.(
.
PDCA: P&%8 stands #or GPlan-&o-%heck-8ctG )see below(. This is a basic principle #or
e##ective problem-solving during kaien.
PERFORMANCE MANAGEMENT: Ising a set o# tools and approaches to measure, improve,
monitor and sustain the key indicators o# a business.
P!'SICAL TRANSFORMATION TAS+: The task o# taking a speci#ic product #rom raw
materials to a #inished product in the hands o# the customer. J4ee 2alue StreamK
PITC!: The pace and #low o# a product.
PLAN0 DO0 C!EC+0 ACT (PDCA): The Plan, &o, %heck, 8ct cycle developed by !alter
4hewhart in the 'A3@Gs and re#ined by !. 1dwards &eming. .t is, simply, de#ining the
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problem,waste and generating solutions,changes, implementing the solutions,changes,
evaluating the solutions,changes, and acting on what you5ve learned P as a result, the cycle
starts all over again.
PLAN0 DO0 C!EC+0 ACT
P12
The visioning process in the conteDt o# the <usiness Plan,8ction Plan, meaning#ul to
all levels o# the process,organiation
Do 8nswer the what5s, how5s, and who5s #or your process,organiation
C%e3
#
6n a periodic basis, review the measurements and note what you5ve learned that can
help in the #uture
A3t
/ake the necessary ad"ustments to processes, plans, and priorities in order to ensure
the success o# the strategy breakthroughs
POINT OF USE STORAGE (POUS): +eeping all items needed #or the "ob at the location o#
use in a neat and organied manner. P6I4 is one o# the goals o# 5S activity.
PO+A.'O+E: -apanese #or Gmistake-proo#ingG. /istake-proo#ing and #ool-proo#ing devices
made by designing parts, processes, or procedures so that mistakes physically or procedurally
cannot happen. Poka-yoke workers are not blamed #or the errors, but instead #ind ways to
keep errors #rom becoming de#ects. 8 service request-taking eDample is a screening #or
request input developed #rom traditional request patterns that question requests #alling outside
the pattern. The LoutlyingM requests are then eDamined, o#ten leading to the discovery o#
inputting errors or action based on misin#ormation. 8 poka-5oke is sometimes called a baka-
5oke. J8lso called 1rror-Proo#ing, /istake-Proo#ing or Sero $uality %ontrol )S$%(K.
These are low-cost, highly reliable devices, used in the "idoka system, that will stop processes
in order to prevent the production o# de#ective parts.
POLIC' DEPLO'MENT: The selection o# goals, pro"ects to achieve the goals, designation o#
people, and resources #or pro"ect completion, and establishment o# pro"ect metrics. J4ee
&OS&"N ,!N"4
POLIC' MANAGEMENT: 8 power#ul strategic planning system developed in -apan in the
'AF@Gs. The 0nervous system0 o# 2ean Production. J8lso known as )olic5 $eplo5ment and
&os-in )lanningK

PRO,LEM: Problems in a process are the discrepancies between actual and desired
per#ormance. For eDample, a client has to wait too long #or a service to be provided, work has
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STATE OF MAINE
to be done over again, work is reviewed multiple times at various stages o# the process,
services do not match or meet the needs o# the client,customer, etc. Problems are solved by
making changes that close these discrepancies. )4ee /uda71aste(
PROCESS: The #low o# material in time and space. The accumulation o# sub-processes or
operations that trans#orm material #rom raw material,input to #inished products. Processes are
the series o# action steps taken to convert inputs into outcomes. 8ll processes have inputs,
steps, and outcomes. /easurements can be made, data collected, and changes made and
tested #or improvements to these.
6rganiations eDist to serve customers. %ustomers are served by processes. The
overwhelming ma"ority o# problems that organiations eDperience in serving clients are caused
by their processes. There#ore, i# the organiation is to improve its client service, it must solve
the problems in its processes.

PROCESS CAPACIT' TA,LE: 8 chart primarily used in machining processes that compares
set-up and machine load times to available capacity. J8lso Table of )roduction Capacit5 b5
)rocessK.
PROCESS +AI"EN: %ontinuous improvement through incremental improvements. J4ame as
,ai6enK
PRODUCT )UANTIT' PROCESS ROUTING ANAL'SIS (P)PR): The P$ )Product $uantity(
re#ers to Pareto analysis to determine the H@,*@ rule o# the top products or services that make
up H@R o# work volume. The PR )Process Routing( re#ers to the Parts-Process /atriD analysis
to determine product #amilies by grouping o# products with similar process #lows. The result o#
a correct P$PR results in a de#inition o# value streams and su##icient process #low data to
begin designing one-piece #low cells.
PRODUCTION PREPARATION PROCESS (3P): Rapidly designing production processes and
equipment to ensure capability, built-in quality, productivity, and Takt-Flow-Pull. The
Production Preparation Process minimies resources needed such as capital, tooling, space,
inventory, and time.
PRODUCTION SMOOT!ING: +eeping total manu#acturing volume as constant as possible.
J4ame as &ei%unka. 4ee #evelingK
PRODUCTION PREPARATION PROCESS: J4ee 8)K
PULL S'STEM: To produce or process an item only when the customer needs it and has
requested it9 Ise 6ne= /ake 6ne. The customer can be internal or eDternal. 8n essential
part o# any *uild-To-Order strategy. Caving set up the #ramework #or Flow, the neDt step is to
only produce what the customer needs. )ull means that no one upstream should produce
goods or services until the customer downstream asks #or it. %ontrast this concept to )us-.
6ne o# the 3 1lements o# Just-"n-Time. The pull system enables the production o# what is
needed, based on a signal o# what has "ust been Lsold.M The downstream process takes the
product they need and GpullsG it #rom the producer. This Gcustomer pullG is a signal to the
producer that the product is sold. The pull system links accurate in#ormation with the process
to minimies overproduction.
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PUS! S'STEM: To produce or process an item without any real demand #rom the customer P
usually creates inventory and all other GwastesG. .n contrast to the )ull system, the
service,product is pushed into a process, regardless o# whether it is needed right now. The
pushed product goes into inventory, and lacking a pull signal #rom the customer indicating that
it has been used,bought,, more o# the same service,product could be overproduced and put in
inventory. .n a )us- 4ystem, creating,producing more o# an item or service is based on the
anticipation o# its use. 8 Push system attempts to predict when the item,service,material will
be needed and will launch its processing in anticipation o# this need.
) SE-EN AND T!E NE& SE-EN: The seven statistical tools, and the seven additional tools
that have been the cornerstone o# problem solving in the #ield o# quality. J4ee 9 TOO#S
aboveK
)UALIT': /eeting eDpectation and requirements, stated and un-stated, o# the customer.
$%& )$uality, %ost, and &elivery(9 8lso the 3 1lements o# &emand9 $uality, %ost, and &elivery
are the key customer satis#action metrics that determine i# a company is competitive. +aien
activity #ocuses on improving $%& metrics.
)CDSM ()$21it40 Cost0 De1iver4 . S25et4 6 Mor21e): 8 set o# per#ormance management
measures that includes employee satis#action )sa#ety 7 morale( as well as customer
satis#action. 2ean Trans#ormation aims to eliminate waste, improve $%&4/ metrics, and
increase pro#itability.
)UALIT' FUNCTION DEPLO'MENT ()FD): 8 methodology involving a cross-#unctional
team to reach consensus that the #inal product speci#ications are based on the wishes,voice o#
the customer. .t is a visual decision-making procedure #or multi-skilled pro"ect teams which
develops a common understanding o# the voice o# the customer and a consensus on the #inal
speci#ications o# the service or product that has the commitment o# the entire team. .t
integrates the perspectives o# team members #rom di##erent disciplines, ensures that their
e##orts are #ocused on resolving key trade-o##s in a consistent manner against measurable
per#ormance targets #or the product, and deploys these decisions through successive levels o#
detail. The use o# $F& eliminates eDpensive back#lows and rework as pro"ects near launch.
)UEUE TIME: The time an item,work,product spends in a line awaiting the neDt design,
request-processing, or processing step
)UIC+ C!ANGEO-ER: The ability to change tooling and #iDtures rapidly )usually minutes(, so
multiple products can be run on the same machine.
REAL -ALUE: 8ttributes and #eatures o# a product or service that, in the eyes o# customers,
are worth paying #or. J4ee 2alue-!dded, Non-2alue-!ddedK
REENGINEERING: The engine that drives Time-<ased %ompetition. To gain speed,
organiations must apply the principles o# reengineering to rethink and redesign every process
and move it closer to the customer.
RESOURCE ACTI-ATION: Ising a resource regardless o# whether Throughput is increased.
J4ee esource 'tili6ationK
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RESOURCE UTILI"ATION: Ising a resource in a way that increases Throughput. J4ee
esource !ctivationK
RIG!T.SI"E: /atching human, #inancial, and equipment,supply resources to the )2ean(
process requirements.
ROOT CAUSE: The most basic underlying reason #or an event or condition. The root cause
is where action must be taken to prevent recurrence.
SENSI: The -apanese word #or teacher -- an outside master or teacher that assists in
implementing 2ean practices. .n acquiring 2ean +nowledge, the 4ensi o#ten is directly
involved with the student.
SE)UENTIAL C!ANGEO-ER: 8lso sequential set-up. .n a #low process, when changeover
times are within Takt Time, changeovers can be per#ormed one a#ter another. 4equential
changeover assures that the lost time #or each process in the line is minimied to one GTaktG
beat. 8 set-up team or eDpert #ollows the operator, so that by the time the operator has made
one round o# the #low line )at Takt time(, it has been completely changed over to the neDt
product.
SE)UENTIAL SET.UP: J4ee se:uential c-angeover4
SET.UP REDUCTION: Reducing the amount o# time a machine or a step,process is down
during changeover #rom the last good piece to the #irst good piece o# the neDt product.
SE-EN &ASTES: Taiichi 6hnoGs original enumeration o# the wastes commonly #ound in
physical production. These are overproduction ahead o# demand, waiting #or the neDt
processing top, unnecessary transport o# materials )#or eDample, between #unctional areas o#
#acilities(, over-processing o# parts due to poor tool and product design, inventories more than
the absolute minimum, unnecessary movement by employees during the course o# their work
)looking #or parts, tools, prints, help, etc.(, and production o# defective parts.
S!USA: The leader o# the team whose "ob is to design and engineer a new product and put it
into production.
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SI/ SIGMA: 8 methodology and set o# tools used to improve quality to less than 3.; de#ects
per million or better. 4iD 4igma is a statistical term that equates to 3.; de#ects per one million
opportunities. Typical organiations,manu#acturers operate at around three sigma, or F?,@@@
de#ects per million. 4iD 4igma can achieve dramatic improvement in business per#ormance
through a precise understanding o# customer requirements and the elimination o# de#ects #rom
eDisting processes, products and services. +ey tenets o# 4iD 4igma9 &e#ine, /easure,
8nalye, .mprove, %ontrol. To #ully embrace 4iD 4igma, an organiation must work intimately
with all internal disciplines in addition to eDternal suppliers and customers.
SMED: )4ingle /inute 1Dchange o# &ies.( 8 system o# a series o# techniques pioneered and
developed by 4higeo 4hingo #or set-up reduction and quick changeovers. The long-term
ob"ective is always Sero 4etup, in which changeovers are instantaneous and do not inter#ere in
any way with continuous #low.
STANDARDS: These involve comparison with accepted norms, such as are set by regulatory
bodies. 1Damples include the standards #or road,highway development and repair, #or
program and individual licensure, #or conducting health 7 environmental tests, etc.
STANDARD &OR+: 4peci#ying tasks to the best way to get the "ob done in the amount o#
time available while ensuring the "ob is done right the #irst time, every time. 4tandard !ork is
the most e##icient, optimum combination o# man, machine, and material. The three elements o#
standard work are '( Takt Time, *( !ork 4equence, and 3( 4tand !ork-in-Process.
Per#orming standard work allows #or a clear and visible GstandardG operation. &eviation #rom
standard work indicates an abnormality, which is then an opportunity #or improvement.
4tandardied work is organied around human motion and creates an e##icient production
sequence without any waste. .t consists o# three elements9 Takt-Time, !orking 4equence,
and 4tandard .n-Process 4tock.
STANDARD IN.PROCESS STOC+: This is the minimum quantity o# parts,items always on
hand #or processing on and between sub-processes. .t allows the worker to do his,her "ob
continuously in a set sequence o# sub-processes, repeating the same operation over and over
in the same order.
STANDARD &OR+ COM,INATION S!EET (S&CS): 8 document detailing the sequence o#
production steps assigned to a single worker per#orming 4tandard !ork. This document
outlines the best combination o# worker and machine.
STANDARD &OR+ S!EET (S&S): 8 visual work instruction drawing #or 4tandard !ork.
4hows the work sequence, takt time, standard working process, and layout o# the cell or
workstation.
STANDARD &OR+ IN PROCESS: 8lso 4tandard !.P, or 4!.P. The minimum work-in-
process needed to maintain standard work. 4tandard !.P parts are '( parts completed and in
the machine a#ter auto cycle, *( parts placed in equipment with cycle times eDceeding Takt
time, and 3( the parts currently being worked on or handled by the operators per#orming
standard work.
STATISTICAL FLUCTUATIONS: +inds o# in#ormation that cannot be precisely predicted.
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STOP.T!E.LINE AUT!ORIT': !hen workers are able stop the line to indicate a problem,
this is stop-the-line authority. The production line or machine remains stopped until the
supervisor, manager, engineer, maintenance personnel, support sta## or president have
identi#ied the problem and taken corrective action.
STRATEGIC PLANNING: &eveloping short and long-term competitive strategies using tools
such as 4!6T 8nalysis to assess the current situation, develop missions and goals, and
create an implementation plan.
SU,.OPTIMI"ATION: 8 condition where gains made in one activity are o##set by losses in
another activity or activities, created by the same actions creating gains in the #irst activity.
4ub-Processes9 8 series o# operations combined. Part o# a process.
SUGGESTION S'STEM: .n a suggestion system workers are encouraged to identi#y wastes,
sa#ety, and environmental concerns and submit improvement ideas #ormally. Rewards are
given #or suggestions resulting in cost savings. These rewards are typically shared among the
production line or by the kaien team.
SUN+ COST: 8ny eDpenditure that has already taken place and can not be undone.
&ecisions should not be made based on sunk costs.
SUPERMAR+ET9 8 supermarket is a tightly managed amount o# inventory within the value
stream to allow #or a pull system. .t is a tool o# the pull system that helps signal demand #or the
product. .n a supermarket, a #iDed amount o# raw material, work in process, or #inished material
is kept as a bu##er to schedule variability or an incapable process. 8 supermarket is typically
located at the end o# a production line )or the entrance o# a u-shaped #low line(.
SUPPL' C!AIN E/ECUTION (SCE): 8 business strategy to improve stakeholder and
customer value by optimiing the #low o# products, services, and related in#ormation #rom
source to customer.

SUPPL' C!AIN MANAGEMENT (SCM): 4upply %hain /anagement encompasses the
processes o# creating and #ul#illing the demand #or goods and services and involves a trading
partner community engaged in a common goal o# satis#ying the end customer. .t is business
strategy to improve shareholder and customer value by optimiing the #low o# products,
services and related in#ormation #rom source to customer.
SUPPL' C!AIN PLANNING (SCP): 8 subset o# 4upply %hain /anagement, this is the
process o# coordinating assets to optimie the delivery o# goods, services, and in#ormation
#rom supplier to customer, balancing supply and demand. 8 4upply %hain Planning suite
overlays a transactional system to provide planning, what-i# scenario analysis capabilities, and
real-time demand commitments.
TA,LE OF PRODUCTION CAPACIT' ,' PROCESS: J4ee )rocess Capacit5 Table4
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TA+T TIME: Takt time is the pace at which the customer is buying a particular product or
service. Takt time is the total net daily available LoperatingM time divided by the total daily
customer demand. Takt time is not how long it takes to per#orm a task. Takt time cannot be
reduced or increased eDcept by changes in production demand or available time to work. Ised
in 2ean as the rhythm o# the process, i.e., i# the customer wants a service every hour, the
program,o##ice should #eel the heartbeat o# producing a service every hour. Takt is a >erman
word #or 3pace,5 Gbeat,G or GrhythmG. Takt time is one o# the 3 1lements o# -.T.
T8+T T./1: Total available processing time )minus all planned activities such as
breaks, check-ins, sa#ety meetings, etc. not available( divided by the customer5s
requirement,demand.
For 1Dample9
)'( H Cour 4hi#t T ;H@ /inutes minus )*( '@ /inute <reaks T ;F@
/inutes available time
'H;@ %laims,&ay %ustomer &emand,Requirements
T8+T Time T .*E minute or 'E seconds )One claim would -ave to be
processed ; at ever5 step -- ever5 <5 seconds in order to meet t-e
customer demand.(
TARGET COSTING: 8 way o# establishing a cost goal #or a product or service in the design
phase. Target costing #ollows this #ormula9 4ales price - Target Pro#it T Target %ost.
TE,ANARE: -apanese #or Ghands-#reeG. The goal o# tebanare is to use low cost automation on
manual machines to allow people to do work that is more valuable that only a person can do.
T!EOR' OF CONSTRAINTS (TOC): 8 lean management philosophy that stresses removal
o# constraints to increase throughput while decreasing inventory and operating eDpenses.
T!ROUG!PUT TIME: The time required #or an item,work to proceed #rom concept to launch,
request to delivery, or LrawM materials into the hands o# the customer. This includes both
processing and queue time. %ontrast with Processing Time and 2ead Time.
TIME.,ASED STRATEG': &riving improvement activity through #ocus on time and its relation
to quality, cost, delivery, sa#ety, and morale. Reduction in lead-time, set-up time, cycle time as
a means o# becoming more competitive.
TO'OTA PRODUCTION S'STEM (TPS): 8 methodology that resulted #rom over E@ years o#
+aien at Toyota, one o# the most success#ul companies in the world. TP4 is built on a
#oundation o# 2eveling, with the supporting pillars o# -ust-in-Time and -idoka. J4ee also
(emba )roduction S5stemK
TOTAL PRODUCTI-E MAINTENANCE (TPM): Total productive maintenance aims at
maDimiing equipment e##ectiveness and uptime throughout the entire li#e o# the equipment. .t
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is an integrated set o# activities aimed at maDimiing equipment e##ectiveness by involving
everyone in all departments at all levels, typically through small group activities. TP/ usually
entails implementing the E 4 4ystem, measuring the siD big losses, prioritiing problems, and
applying problem-solving with the goal o# achieving Sero breakdowns. .t is a series o#
methods, originally pioneered by :ippondenso )a member o# the Toyota group(, to ensure that
every piece o# equipment in a process is always able to per#orm its required tasks so that
processing,work is never interrupted.
TSURU,E S'STEM: 8 way to keep product #low continuous even when there are
interruptions such as outside processing or batch operations. The tsurube system is o#ten
used when the work,product leaves the #low line #or processing through equipment that can
not be placed into the cell )vendor operations, heat treat, plating, anodiing, etc.(. 8lso called
the L!ell !heel 4ystemM because o# the similarity to how water is drawn out o# a well using
two buckets and a pulley wheel.
T&O.,IN S'STEM: 8n eDample o# both visual management and the pull system, whereby
two bins or containers are used trigger reorder o# parts or materials. 1ach bin contains enough
parts to last during the delivery lead-time. !hen one bin is empty, it is time to reorder the two-
bin quantity.
UPTIME: The time a person, program, printer, copier, etc. is available compared to the time
each is eDpected to be available,run #or the step,task. For eDample, the time a supervisor is
available #or signatures, the time a copier works and is available. Isually eDpressed as an
percentage, uptime is the ratio o# the availability time to the actual work,production time.
-ALUE: 8 product or serviceGs capability provided to a customer at the right time, at an
appropriate cost,price, as de#ined in each case by the customer. !hat does and does not
create value is to be speci#ied #rom the customerGs perspective and not #rom the perspective o#
individual organiations, #unctions, and departments.

-ALUE.ADDED ANAL'SIS: !ith this activity, a process improvement team strips the process
down to its essential elements. The team isolates the activities that, in the eyes o# the
customer, actually add value to the service or product. The remaining non-value-adding
activities )0waste0( are targeted #or improvement or eDtinction.
-ALUE.ADDED &OR+: 8ctivities or work essential to ensure a product or service meets the
needs o# the customer -- work that the customer is willing to pay #or. 8 trans#ormation o# the
shape or #unction o# the material,in#ormation in a way that the customer will pay #or. 8ctivities
or actions taken that add real value to the product or service. J4ee Non-2alue-!ddedK
-ALUE STREAM: 8ll activities, both value-added and non-value-added, required to bring a
product or service #rom request,order to the hands o# the customer, and a design #rom concept
to launch to production to delivery. <y locating the value-creating processes neDt to one
another and by processing one unit o# work at a time, work #lows smoothly #rom one step to
another and #inally to the customer. This chain o# value-creating processes is called a value
stream. 8 value stream is simply all the things done to create value #or the customer. .t is a
series o# all actions required to #ul#ill a customerGs request, both value-added and not.

-ALUE STREAM MAPPING (-SM): 8 Q4/ is a 2ean tool used to visualie the value stream
o# a process, department, or organiation. %reating a picture o# the complete material and
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in#ormation #low #rom customer request through order #ul#illment #or an operation. Qalue
4tream /apping can be done at an enterprise level )showing customer-supplier relationships
as well as distributors(, a door to door level showing the #low o# material and in#ormation
primarily within a #actory, o##ice, or hospital operation, and a process level map with a narrower
scope and more detail. The G%urrent 4tateG is how the process works today and the GFuture
4tateG map shows improvements towards a long-term Gideal stateG.
.t is a hands-on, pencil-and-paper tool used9 a( to #ollow a product or in#ormation )or both(
activity path #rom beginning to end and draw a visual representation o# every process )value
and non-value( in the material and in#ormation #lows= b( then to design a #uture state map
which has waste removed and creates more #low= and c( to end up with a detailed
implementation plan #or the #uture state.
-ERTICAL !ANDLING: !hen tasks are assigned in such a way that the materials processes
are being progressively worked towards completion, this is vertical handling. This in contrast
to horiontal handling which only #ocuses on the output o# a speci#ic process
-ISUAL CONTROLS: &isplaying the status o# an activity so every employee can see it and
take appropriate action. .t is the placement in plain view o# all tools, parts, processing
activities, and indicators o# process system per#ormance, so everyone involved can understand
the status o# the system at a glance. Qarious tools o# visual management such as color-
coding, charts, andons, schedule boards, labels and markings on the #loor. Ised
synonymously with Transparency.
-ISUAL MANAGEMENT: !hen the normal state and abnormal state can be clearly and
visually de#ined, visual management is possible. .n visual management, simple visual tools are
used to identi#y the target state, and any deviance is met with corrective action
&ASTE: 8nything that uses resources, but does not add real value to the product or service.
8nything that does not add value to the #inal product or service, in the eyes o# the customer.
8n activity the customer wouldnGt want to pay #or i# they knew it was happening. The 3 #orms
o# waste are muda )non-value-added tasks(, mura )inconsistency(, and muri )eDcessive stress
7 strain(. J4ee the muda 0 1astesK
&ELL &!EEL S'STEM: J4ee Tsurube S5stemK
&ATERSPIDER: The waterspider is a skilled and well-trained person who makes the rounds
supplying parts, assisting with changeover, providing tools and materials, and any additional
help needed to maintain 4tandard !ork and keep the #low going. The waterspider has a
routine and knows all processes thoroughly enough to step in i# needed. 8t Toyota, per#orming
the waterspider role is a prerequisite #or supervision and management positions. :amed a#ter
the whirligig beetle that swims about quickly in the water.
&OR+ IN PROCESS: .tems )people, material, or in#ormation( between steps or processes or
activities waiting to be processed.
&OR+ SE)UENCE: The de#ined steps and activities that need to be per#ormed in order #or
the work to be completed. !orking 4equence re#ers to the sequence o# operations in a single
process which leads a worker to produce quality goods,services e##iciently and in a manner
which reduces overburden and minimies the threat o# in"ury or illness.
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'AMA"UME: 8 yamaumi board is a bar graph typically showing the balance o# workloads as
operator cycle times. The yamaumi can also be sued #or load planning and scheduling. The
word 0yamaumi0 literally means 0to stack up0.
'IELD: Produced product related to scheduled product.
'O+OTEN: .n#ormation sharing= sharing o# common activities, countermeasures, and ideas.
8cross everywhere. )8ctivities and,or countermeasures that are communicated organiation-
wide and with other organiation a##iliates(.
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