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Glossary of Manufacturing Terms

#  | A | B | C | D  | E  | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

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3 Elements of Lean: 1. Pace production to TAKT Time. 2. Create uninterrupted FLOW of products and services. See: JIT, Takt Time 3. GEN Principle: Is a guide for how to "behave" (especially if you are a Manager) in a Lean System.

3 "GEN’s": are derived from three Japanese phrases that capture the three recommended behaviors: 1. Gemba or "go to Gemba" meaning go always to where the work is being performed (do not sit behind your desk and read reports or charts since they represent "filtered" and distorted information). 2. GEMBUTSU Observe the actual product (production process) and 3. GENJITSU Get the real situation or "facts" yourself. ref: Gemba

3D’s: Work conditions that are "Dirty, Dangerous and Difficult".

3P: "Production Preparation Process" is a Lean System Tool that is intended as the basis of creating a new process that is waste free. It utilizes the "Seven Alternatives Matrix" and paper models of the layout of the new process.

5S: 5S is a methodology for simplifying, organizing, cleaning, developing, and sustaining a productive work environment. The methodology originated at Ford Motor Company and was elaborated by Toyota and is based on the simple idea that the foundation of a good production system is a clean and safe work environment. Translated from Japanese words that begin with an "s," the closest English equivalents are: Sort, Set in order, Shine Standardize, Sustain. (full: Five S; ref: Set in Order; ref: Shine; ref: Sort; ref: Standardize; ref: Sustain

5-S: (Lean Manufacturing) A systematic process of workplace organization.

6M’s of a Process: Man, Method, Machine, Materials, Measuring System and "Mother Nature" (also referred to as “Environment”).

8 Wastes: The eight forms of waste that exist in any process as originally defined by Taiichi Ohno at Toyota. Ohno’s version described "7 Wastes". The eighth was added in America: the waste of "human potential" to solve problems and find better work methods. The eight wastes are best captured by the acronym "DOWNTIME" where D = Defects, O = Overproduction, W = Waiting, N = Non-utilized Talent, T = Transportation, I = Inventory, M = Motion and E = Extra (or Excess) Processing.

A

A3 Report: Is a format for a Problem Solving or Corrective Action Report as used by Toyota. A3 is derived from the European Paper size "A3" that is approximately equivalent to 11 x 17". All the information for effectively communicating the solution to a problem should fit on this one page. If more space is required, that would indicate the likelihood that much unnecessary or superfluous information has been included. In the A3 Report format, there is great emphasis on accurate identification of the ROOT CAUSE of the problem.

ABC Classification: A method for prioritizing items based on the product of the annual demand and the unit cost. The high "annual dollar volume" items are classified as "a" item. The low annual dollar volume items are classified as "c" items. Based on Pareto’s law, the ABC classification system drives us to manage "a" items more carefully. This means that these item should be ordered more often, counted more often, located closer to the door, and be forecasted more carefully. Conversely, "c" items are not very important from an investment point of view, and therefore should be ordered rarely and not counted often. Some firms use other methods for defining the ABC classification -- such as the stockout cost or the medical criticality of the item. This has nothing to do with activity based costing. See Pareto’s law.

Abnormality: Any process or equipment condition that does not conform to the standard conditions required for the scheduled production and delivery of quality products and services.

Agile Manufacturing: A manufacturing approach with techniques designed to contribute to the flexibility of a process and thereby reduce the impact of changes in product mix and, to certain extent, volume.

Andon: A Japanese term that refers to the warning lights on an assembly line that light up when a defect occurs. When the lights go on, the assembly line is usually stopped until the problem is diagnosed and corrected.

Autonomation: (Lean Manufacturing) Stopping a line automatically when a defective part is detected. Same: Jidoka

Autonomous maintenance: A TPM principle of having each worker responsible for both maintaining and operating a machine. Maintenance activities include cleaning, lubricating, adjusting, inspecting, and repair.

B

Balanced Plant: (Lean Manufacturing) A plant where capacity of all resources are balanced exactly with market demand.

Batch-and-queue: Refers to the usual movement of part lots in mass-production practices. Typically, large lots of a part are made and sent as a batch to wait in queue for the next operation in the production process. Contrast with one-piece-flow.

Benchmarking: Comparing products and/or processes to a standard in order to evaluate and improve performance. Benchmarking can be done for either product or process performance. Internal process benchmarking sets the standard by comparing processes in the same firm (e.g., another department, region, machine, worker, etc.). External process benchmarking sets the standard based on a process from another firm. Competitive benchmarking sets the standard based on a competitor’s product or process.

Best Practices: This term is typically used in the context of a multi-divisional or multi-location firm that has similar processes in many locations. For example, Wells-Fargo buys banks, which all have similar teller policies. Clearly, it is in the best interest of the firm to find out which of the many banking subsidiaries has the "best practice" for this process, document the process with process maps and other documentation, and then implement that process throughout the system. This is really just an application and extension of internal benchmarking.

Bottleneck: (Lean Manufacturing) Any resource whose capacity is equal to, or less than the demand placed on it.

C

Capacity Constraint Resources: (Lean Manufacturing) Where a series of non-bottlenecks, based on the sequence in which they perform their jobs can act as a constraint. Abb: CCR; Ref: Constraint; Ref: Constraint;

Chaku-Chaku: (Lean Manufacturing) A method of conducting single-piece flow, where the operator proceeds form machine to machine, taking the part from one machine and loading it into the next. Same: Load-Load

Change Agent: (Lean Manufacturing) The catalytic force moving firms and value streams out of the world of inward-looking batch-and-queue.

Constraint: (Lean Manufacturing) Anything that limits a system from achieving higher performance, or throughput. Alternate: That bottleneck which most severely limit the organization's ability to achieve higher performance relative its purpose/goal. Ref: Bottleneck, Throughput

Covariance: (Lean Manufacturing) The impact of one variable upon others in the same group.

D

Dependent Events: (Lean Manufacturing) Events that occur only after a previous event.

E

Evaporating Clouds: (Lean Manufacturing) A problem of method used in Theory of Constraints. Same as Conflict Resolution. Ref: Theory of Constraints (TOC)

External Setup (OED): (Lean Manufacturing) Die setup procedures that can be performed while machine is in motion. OED - "outer exchange of die"; See: Internal Setup (IED)

F

Five S: 5S is a methodology for simplifying, organizing, cleaning, developing, and sustaining a productive work environment. The methodology originated at Ford Motor Company and was elaborated by Toyota and is based on the simple idea that the foundation of a good production system is a clean and safe work environment. Translated from Japanese words that begin with an "s," the closest English equivalents are: Sort, Set in order, Shine Standardize, Sustain; abb: 5S; ref: Set in Order; ref: Shine; ref: Sort; ref: Standardize; ref: Sustain

Flow Kaizen: (Lean Manufacturing) Radical Improvement, usually applied only once within a value stream. Ref: Value Stream Same: Kaikaku

G

Gemba: Japanese word of which the literal translation is "the real place." In the manufacturing field, Gemba means the shop floor, where the actual product is being made, as contrasted to the office, where support services are provided.

H

Heijunka: (Lean Manufacturing) Keeping total manufacturing volume as constant as possible. Same: Production Smoothing

Hoshin Kanri: (Lean Manufacturing) The selection of goals, projects to achieve the goals, designation of people and resources for project completion, and establishment of project metrics. Same: Policy Deployment

I

Information Management Task: (Lean Manufacturing) The task of taking a specific product from order-taking through detailed scheduling to delivery. See: Value Stream

Informative Inspection: (Lean Manufacturing) A form of inspection used to determine non-conforming product. See: Inspection, Judgment Inspection

Inspection: (Lean Manufacturing) Comparing product, or component against specifications to determine if such product or component meets requirements.
See: Informative Inspection, Judgment Inspection

Internal Setup (IED): (Lean Manufacturing) Die setup procedures that must be performed while machine is in stopped. IED - "inner exchange of die"
See: External Setup (OED)

Inventory: (Lean Manufacturing) The money the system has invested in purchasing things it intends to sell.

J

Jidoka: (Lean Manufacturing) Stopping a line automatically when a defective part is detected. Same: Autonomation

JIT: A philosophy developed by Toyota in Japan that emphasizes delivery when needed of small lot sizes. The philosophy includes an emphasis on setup cost reduction, small lot sizes, pull systems, level production, and elimination of waste (Muda). full: Just-In-Time Manufacturing; ref: Muda

Judgment Inspection: (Lean Manufacturing) A form of inspection used to determine non-conforming product. See: Informative Inspection, Inspection

Just-In-Time Manufacturing: A philosophy developed by Toyota in Japan that emphasizes delivery when needed of small lot sizes. The philosophy includes an emphasis on setup cost reduction, small lot sizes, pull systems, level production, and elimination of waste (Muda). Abb: JIT; ref: Muda

K

Kaikaku: (Lean Manufacturing) Radical Improvement, usually applied only once within a value stream. Ref: Value Stream; Same: Flow Kaizen

Kaizen: (Lean Manufacturing) Continuous improvement through incremental improvements. Same: Process Kaizen

L

Lean: (Lean Manufacturing) Producing the maximum sellable products or services at the lowest operational cost, while optimizing inventory levels.

Load-Load: (Lean Manufacturing) A method of conducting single-piece flow, where the operator proceeds form machine to machine, taking the part form one machine and loading it into the next. Same: Chaku-Chaku

M

Muda: (Lean Manufacturing) Any human activity which absorbs resources, but creates no real value. Ref: Real Value; See: Waste; See: Non-Value Added

Muda: Japanese word for "waste." Any activity that does not add value (that which the customer is not prepared to pay for). Originally part of a trilogy of Mura (imbalance), Muri (overload), and Muda (waste or non-value-added). In more popular terminology, Muda is used for any type of waste. In common usage in Japanese, Muda means useless, futile or waste.

N

Nagara System: (Lean Manufacturing) A production system where seemingly unrelated tasks can be produced by the same operator simultaneously.

Non-Value Added: (Lean Manufacturing) Activities or actions taken that add no real value to the product or service, making such activities or action a form of waste. Ref: Real Value, Waste; See: Value Added

O

One-Touch Exchange of Dies (OTED): (Lean Manufacturing) The reduction of die set-up where die setting is reduced to a single step. See: External Setup (OED), Internal Setup (IED), Single Minute Exchange of Dies (SMED)

Operating Expenses: (Lean Manufacturing) The money the required for the system to convert inventory into throughput. Ref: Inventory, Throughput

Operations: (Lean Manufacturing) Work or steps taken to transform material from raw materials to finished product. See: Process, Sub-Processes

P

Physical Transformation Task: (Lean Manufacturing) The task of taking a specific product from raw materials to a finished product in the hands of the customer. See: Value Stream

Pitch: (Lean Manufacturing) The pace and flow of a product.

Policy Deployment: (Lean Manufacturing) The selection of goals, projects to achieve the goals, designation of people and resources for project completion, and establishment of project metrics. Same: Hoshin Kanri

Problem Solving Task: (Lean Manufacturing) The task of taking a specific product from concept through detailed design and engineering to production launch. See: Value Stream

Process: (Lean Manufacturing) The flow of material in time and space. The accumulation of sub-processes, or operations that transform material from raw material to finished products. Ref: Operations, Sub-Processes

Process Kaizen: (Lean Manufacturing) Continuous improvement through incremental improvements. Same: Kaizen

Production Smoothing: (Lean Manufacturing) Keeping total manufacturing volume as constant as possible. Same: Heijunka

Q

Quality: (Lean Manufacturing) Meeting expectation and requirements, stated and un-stated, of the customer.

Quality Function Deployment (QFD):  (Lean Manufacturing) Using a cross-functional team to reach consensus that final engineering specification of a product are in accord with the voice of the customer.

Quick Changeover: (Lean Manufacturing) The ability to change tooling and fixtures rapidly (usually minutes), so multiple products can be run on the same machine.

R

Real Value: (Lean Manufacturing) Attributes and features of a product or service that, in the eyes of customers, are worth paying for. See: Non-Value Added, Value Added

Resource Activation: (Lean Manufacturing) Using a resource regardless of whether throughput is increased. Ref: Throughput; See: Resource Utilization

Resource Utilization: (Lean Manufacturing) Using a resource in a way that increases throughput. Ref: Throughput; See: Resource Activation

Right-size: (Lean Manufacturing) Matching tooling and equipment to the job and space requirements of lean production.

S

Sensi: (Lean Manufacturing) An outside master or teacher that assists in implementing lean practices.

Set in order: organize the work area (one author called this “storage”).

Shine: clean the work area.

Shusa: (Lean Manufacturing) The leader of the team whose job is to design and engineer a new product and it into production.

Single Minute Exchange of Dies (SMED): (Lean Manufacturing) The reduction in die set-up time. Set-up in a single minute is not required, but used as a reference. See: External Setup (OED), Internal Setup (IED), One-Touch Exchange of Dies (OTED)

Sort: get rid of clutter.

Standard Work: (Lean Manufacturing) Specifying tasks to the best way to get the job done in the amount of time available while ensuring the job is done right the first time, every time.

Standardize: use standard methods to keep sort, set in order, and shine at a high level.

Statistical Fluctuations: (Lean Manufacturing) Kinds of information that cannot be precisely predicted.

Sub-Optimization: (Lean Manufacturing) A condition where gains made in one activity are offset by losses in another activity or activities, created by the same actions creating gains in the first activity.

Sub-Processes: (Lean Manufacturing) A series of operations combined. Part of a process. Ref: Operations, Process

Sustain: maintain through empowerment, commitment, and discipline.

T

Takt Time: (Lean Manufacturing) Daily production number required to meet orders in hand divided into the number of working hours in the day.

Takt Time: Daily demand rate divided by the number of working hours in the day. This the time per part (unit) required to meet the Customer’s demand rate.

Theory of Constraints (TOC): (Lean Manufacturing) A lean management philosophy that stresses removal of constraints to increase throughput while decreasing inventory and operating expenses. Ref: Constraint, Inventory, Operating Expenses, Throughput

Throughput: (Lean Manufacturing) The rate the system generates money through sales.

U

V

Value Added: (Lean Manufacturing) Activities or actions taken that add real value to the product or service. Ref: Real Value; See: Non-Value Added

Value Analysis: (Lean Manufacturing) Analyzing the value stream to identify value added and non-value added activities. Ref: Non-Value Added, Value Added, Value Stream

Value Engineering: (Lean Manufacturing) Value Engineering

Value Stream: (Lean Manufacturing) The set of specific actions required to bring a specific product through three critical management tasks of any business: Problem-solving, Information management and physical transformation. See: Information Management Task, Physical Transformation Task, Problem Solving Task

Visual Controls: (Lean Manufacturing) Displaying the status of an activity so every employee can see it and take appropriate action.

W

Waste: (Lean Manufacturing) Anything that uses resources, but does not add real value to the product or service.

X

Y

Yield: (Lean Manufacturing) Produced product related to scheduled product.

Z