Lean Terminology

Lean Terminology Simplified by AddValue
Compiled by
Nilesh R Arora
Founder-Director
Add Value Consulting Inc.,
1002, 10th
Floor, Safal Solitaire,
Makarba S.G Highway,
Ahmedabad- 380054
Gujarat, India
www.avci-lean.com
Email: info@avci-lean.com
Tel: +91 79 27497975

Lean Terminology
3 Gen Principle: The three principles are: Shop floor (Lean), the actual product (gembutsu) and
the facts (Gemjitsu)
3 Elements of JIT: The three elements of JIT are: Takt time ,Flow production & The
downstream pull system.
3P: Production Preparation Process: Rapidly designing production processes and equipment
to ensure capability, built-in quality, productivity, and Takt-Flow-Pull. The Production
Preparation Process minimizes resources needed such as capital, tooling, space, inventory and
time.
7 Wastes of Production: There are 7 types of waste that describe all wasteful activity in a
production environment. The 7 wastes are: Overproduction Transportation Motion Waiting
Processing Inventory and Defects
Andon: A visual signal, typically, a light mounted on a machine or line to indicate a potential
problem or work stoppage.
Ask “WHY” 5 times: An approach to determine the root cause of a problem.
Autonomation: English translation of Jidoka. Imparting human intelligence to a machine so that
it automatically stops when a problem arises. Autonomation reduces the supervisory cost.
Balanced Plant: A Plant where all available capacity is balanced exactly to market demand.
Benchmarking: Comparing key performance metrics with other organization in similar or
relevant industries. Establishing standards for improvement based on what other have been able
to achieve.
Cellular manufacturing: An alignment / grouping of machines in correct process sequence. In
cellular manufacturing operators remain and work from within the cell and materials are fed to
them from outside.
Chaku – Chaku Line: Meaning “Load-Load” in Japanese. A work cell where machines off-load
parts automatically so that operators can take a piece directly from one machine to the next
without waiting.
Changeover: The time from when the last good piece comes of a machine or process until the
first good piece of the next product is made. Changeover time includes set up, warm up, trial run,
adjustment, first piece- inspection etc.

Continuous Improvement: The commitment to creating a better product, work environment
and business. Cost of poor quality: Costs associated with supplying a poor quality product.
Categories of cost include internal and external failure costs.
Cost of Quality: Costs associated with supplying a quality product. Categories of cost include
prevention, appraisal, and failure.
Cycle time: The actual time taken by an operator to process a piece of product. (See takt time). It
is the time measured between the start of two similar processes.
Delivery: In the context of QCD, the word delivery refers to meeting the delivery: (a) on time –
as agreed (b) in full – with respect to volume (c) error free – without errors in documentation,
specifications normally termed as OT-IF-EF.
Downstream: A process/ operation that is subsequent to the last one. Move closer to the
customer.
Dual–Card Kanban: A demand-pull technique that uses a “move” and “produce”
communication method. It is typically used in machine-intensive manufacturing process,
dependent or independent cells where setups or long replenishment times are present.
Every part every: Measured in terms of time (hours, days, weeks, months, etc) ”Every
Product Every X” indicates the level of flexibility to produce whatever the customer needs. For
instance, Every Product Every day would indicate that changeovers for all products required can
be performed each day and the products can be supplied to the customer.
External Set-up: Elements of tooling set-up that can be performed safely while the machine is
still running.
Failure Tree Analysis: Failure Tree Analysis is used to analyze and avoid in advance any safety
and reliability problems by identifying a cause-and-effect relationships and probability of
problems by using the tree diagram.
First In First Out: Also known as FIFO, a system of keeping track of the order in which
information or materials need to be processed. The goal of FIFO is to prevent earlier orders from
being delayed unfairly in favor of new orders.
Five golden rules of Workplace Management:
 Go to the real workplace when problems arise
 Check the tangible objects
 Take temporary counter measures on the spot
 Find and eliminate the root cause and
 Standardize to present recurrence

GEMBA: A Japanese word meaning “real place” – now adapted to management terminology
to mean the “workplace” – or that place where value is added. In manufacturing, it usually
refers to the shop floor.
Gembutsu: The tangible objects found at the workplace such as work pieces, rejects, jigs and
tools, and machines etc.
Gemjitsu: Japanese for „the facts‟ or „the reality‟. The actual facts or the reality of what is
happening on the shop floor and in the business.
Go to the workplace: The first principle of LEAN. Whenever abnormality occurs, or
whenever a manager wishes to know the current state of operations, he or she should go to the
workplace right away, since the workplace is a source of all information.
Heijunka: Means Leveling /Production smoothing; creating a build / manufacturing sequence
by SKU average demand.
Hiyari KYT (kiken-yochi training): Hiyari KYT refers to the practice of anticipating danger
in advance and taking steps to avoid it.
Hoshin Planning: A method of strategic decision-making that focuses and aligns the
organization on a few vital few „breakthrough‟ improvements. The objectives are cascaded
down through the entire organization using a series of linked matrices. The process is self-
correcting and encourages organizational learning and continues improvement of the planning
process itself.
In-Process Kanban (IPK): An inventory or component material or in-process inventory that
is used to signal demand, assist in resolving imbalances, and indicate where / when to flex. An
In-Process Kanban (IPK) never has „part number‟ identify and is usually represented by the
letter “X” painted on the card, table, or floor and sized to the in-process product.
Internal set up: Elements of tooling set-up that must be performed while the machine is not
in motion. It contributes to changeover time.
Inventory: Usually the highest cost category, inventory is all raw materials, purchased parts,
work-in-progress and finished goods that are not yet sold to a customer.
Ishikawa (fishbone) diagram: A diagram originally developed by Professor Kaoru Ishikawa
to show causes (process) and the effect (result). The diagram is used to determine the real
cause(s) and is one of the seven basic tools of problem solving.
Jidhoka (automation): A device that stops a machine whenever a defective product is
produced. This device is essential in introducing JIT.
JIT (just-in-time): A system designed to achieve the best possible quality, cost, and delivery
of products and services by eliminating all kinds of waste (muda) in a company‟s internal
processes and deliver products just-in-time to meet customers‟ requirements. Originally

developed by Toyota Motor Company, it is also known asToyota Production System (TPS),
Lean Production System, Kanban System and World Class Manufacturing (WCM).
JK (Jishu Kanri): Jishu Kanri means autonomous management in Japanese, and refers to
workers‟ participation in kaizen activities as a part of their daily activities under the guidance
of the line manager, it is different from quality circle activities which are voluntary and are
carried out by workers‟ own wish.
Kai-AKU: The opposite of kaizen. Change for the worse Bad change.
Kaikadu: Radical improvement, usually in a business process, that affects the future value
stream.
Kaizen: A combination of two Japanese words Kai (change) and Zen (good), Usually defined
as “Continual Improvement”
Kaizen concepts: Major concepts that must be understood and practiced in implementing
kaizen.
 Kaizen and management
 Process versus result
 Following the PDCA/SDCA
 Putting quality first
 Speaking with data
 Treating the next process as the customer
Kaizen story: A standardized problem-solving procedure to be used at each level of
organization. Kaizen story has eight steps:
 Select a project
 Understand current situation and set objectives
 Analyze data to identify root causes
 Establish countermeasures
 Implement countermeasures
 Confirm the effect
 Standardize and
 Review the above process and work n the next steps.
Kanban: A kanban means a signboard in Japanese, is attached to a given number of parts or
products in the production line, instructing the delivery of a given quantity. When the parts
have all been used, the kanban is returned to its origin where it becomes an order to produce
more.
Lean Manufacturing: Using the minimum amount of total resources – man, materials,
money, machines, etc – to produce a product and deliver it on time and error free.
Leveling: Smoothing out the production schedule by averaging out both the volume and mix

of products. Production leveling allows a consistent workflow, reducing the fluctuation of
customer demand with the eventual goal of being able to produce any product any day.
Leveling is the foundation of Lean Production System.
Main Line: The process (es) that most if not all of the products go through. Provides the basis
for the line design.
Mixed Model Line: A primary goal of Lean manufacturing is to design flow lines to produce
families of similar products. The mixed-model line has the ability to build a range of volumes
of any product, any day, based upon the direction of actual customer demand. Quality is
designed into the line and executed through lean operation sheets.
Morning Market: A daily routine at workplace that involves examining rejects (gembutsu)
made the previous day before the work begins so that counter measures can be adopted as
soon as possible.
Move: Work indicated on the SOE/SSOE of advancing the product in the flow facility,
always non-value-added in the eyes of the customer.
MRP I: Material requirements planning: A set of techniques that uses bills of material,
inventory data, and the master production schedule to calculate requirements for materials. It
makes recommendations to release orders for material.
Muda: The Japanese word meaning, “waste” which, when applied to management of the
workplace, refers to a wide range of non-value-added activities.
Mura: Japanese word meaning irregularity or variability.
Muri: Japanese word meaning strain and difficulty.
Nagara: Accomplishing more than one task in one motion or function. In Japanese it is „while
doing something‟.
Non – Replenishable Kanban: A type of material kanban that is not replenished when
emptied. This type of Kanban must be managed and will typically be used for custom
products, one-time customer orders, for very infrequent material demands, seasonality / cyclic
demand variations, and engineering change activity.
One-Piece Flow: Only one work piece is allowed to flow from process to process to
minimize muda in a just-in-time production system.
Pacemaker: A technique of pacing a process to takt time.
PDCA: Plan-Do-Check-Act- the basic steps to be following in making continual
improvement (kaizen).

Policy Development: Matching the strategic business goals of an organization to its available
resources. Communicating those goals throughout the organization and linking to the same
objectives.
Poka Yoke: A Japanese word for mistake proofing. A Poka Yoke device prevents a human
error from affecting a machine or process; prevents operator mistakes from becoming defects.
Point Kaizen: An improvement activity intensely directed at a single workstation, performed
quickly by two or three specialists. Typically follows a full-blown kaizen event.
Point-of-usage re-supply (POUR): Physical locations where raw materials, purchased and
machined components are kept until signaled for replenishment. The Kanban pull chain
defines the pull sequences of material usage and re-supply.
Pull Production: One of the basic requirements of a just-in-time production system. The
previous produces only as many products as are consumed by the following process.
Push Production: The opposite of pull production. The previous process produces as much
as it can without regard to the actual requirements of the next process and sends them to the
next process whether there is a need or not.
QFD: (Quality Function Deployment): A management approach to identify customer
requirements first, and then work back through the stages of design, engineering, production,
sales, and after-service of products.
Quick Count: A methodology to replenish material Kanbans that uses approximate quantities
(e.g. handful, fill-to-line, cup-full, pallet, etc.) This method is used within the aggregate RIP
inventory location when no special need exists to count the material precisely.
SDCA: Standardize-Do-Check-Act-the basic steps to be followed to maintain the current
status.
Set-Up Time Reduction: Reducing the amount of downtime during changeover from the
last good piece to the first good piece of the next order.
Sequencing: The method of proactively determining the order of work release to a Lean
line/cell; also a balancing tool.
Six Sigma: A methodology and set of tools used to improve quality more than 3.4 defects
per million or better.
Single Minute Exchange of Dies (SMED): From the last good part of the good part on the
new set-up accomplished in anything less than 10 minutes – AKA “Single-Digit-Set-Up‟.
Standard Work Combination Sheet: A document detailing the sequence of production
steps assigned to a single worker Standard Work. This document outlines the best

combination of worker and machine.
Standard Work Sheet: A visual work instruction drawing for Standard work. Shows the
work sequence, takt time, standard working process, and layout of the cell or workstation.
Super Market: A shop floor, line – side location where parts are sorted and made ready
for presentation to operators.
Takt-Time: The theoretical time it takes to produce a piece of product ordered by the
customer – as determined by dividing the total production time by the number of units to
be produced.
Tebanare: Japanese for „hands-free‟. The goal of 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.
Three K’s (3K): The Japanese words referring to conventional perception of gemba –
kiken (dangerous), kitanai (dirty), and kitsui (stressful) – in direct contrast to the idea of
Lean being the place where real value is added and the source of ideas for achieving QCD.
Three M’s (3M): Muda (waste), Mura (irregularity), and Muri (strain). These thee words
are used as Lean checkpoints to help workers and management to identify the areas for
improvement.
Throughput: The rate at which the entire system generates money.
Toyota Production System: Based on some of the first principles of Henry Ford, this
describes the philosophies of one of the world‟s most successful companies. The
foundation of TPS is production smoothing; the supports are just in time and jidoka.

Lean Terminology

More Related Content

Similar to Lean Terminology

More from ADD VALUE CONSULTING Inc

Recently uploaded

Lean Terminology