Chapter 1 Lean Terms

Taiichi Ohno

Born in Dalian, China in 1912 Production Engineer He did the most to structure the Toyota Production System as an integrated framework. In the late 1940s, he became the executive vice president at Toyota. tested several ways of setting up equipment to produce their products in a timely manner.

Shigeo Shingo

Born in Saga, Japan in 1909 He was a mechanical engineer In the 1950s, he was contacted by Toyota to update their Training Within Industry courses. Around 1970, he was contacted to do a class on quick changeover methods. This class helped improve the changeover of one of the last machines that were not yet improved

Total Quality Management

Can be defined as the management of initiatives and procedures that work to achieve the delivery and production of quality products and services. Is a system of maintaining and improving the integrity of production and quality systems through the use of machines, equipment, processes, employees and anything else that adds significant business value to an organization. seeks to improve quality and performance which will meet or exceed customer expectations. Quality inspectors were introduced on the production line to ensure that the level of failures due to quality was minimized. This principle has evolved from quality assurance methods that were first developed around WW1. The war effort led to large scale manufacturing efforts that many times would produce poor quality. takes into account all quality measures taken at all levels and involving all companies.

Current State Map

Diagram of what is actually happening in a specific process. It is not meant to represent how it is "supposed to work, or [how it] was designed to work" Is a snapshot of how an organization's' process is done Can be either a flowchart or a value stream map Shows how you produce or provide for your customer It's a key part of continuous improvement so you can see when and where to improve aspects of your business Useful in administrative and manufacturing roles

Gemba

Japanese word that literally means "the real place" refers to the workplace, where the value is created or added, such as a manufacturing area or workshop.

Kaikaku

Japanese word that means "radical change" In business, it is concerned with making fundamental and radical changes to a production system Improvement on a larger scale where lean production becomes a fundamental concept of how manufacturing processes occur An innovation that brings new concepts, new processes, new machines and new products This philosophy is all about rethinking the way things are done

7 Lean Wastes

Transportation-poor layouts, multiple storage locations Inventory-unbalanced workflow, large batch sizes, long changeovers, failure to follow first in first out Motion-poor layouts, poor organization Waiting -long changeovers, unreliable processes, poor time management Overproduction-large batch sizes, unstable schedules, inaccurate forecast Processing-no standardization of techniques, unclear specification Defects-inadequate training, unreliable suppliers, transportation

A3 Report

Typically are one page reports documenting the necessary information needed for progress reports Used to identify and convey the most important information of a project related to the improvement of the process. Makes it easier to make decisions that influence the rest of the process Structured problem solving and continuous improvement approach, often with the use of graphics Originally employed by Toyota and typically used for lean manufacturing

DMAIC Cycle

a data-driven quality strategy used to improve processes. It is an integral part of a Six Sigma initiative, but in general can be implemented as a standalone quality improvement procedure or as part of other process improvement initiatives such as lean. - 5 guidelines used to analyze and improve business performance - Characterized under the elements of a Lean Six Sigma project - Utilizes a "structured" and "systematic" approach to solve problems - Team oriented application which focuses on data-driven process performance - Helps organizations strengthen performance standards across industries DEFINE- Identify the problem and project focus for business leaders or customers MEASURE- Collect data to create detailed map of the process as a baseline for results ANALYZE- Explore the causes of the problem and work to find why it exists IMPROVE- Brainstorm and develop solutions to the problem that can be tested for measurable improvements CONTROL- Maintain and ensure the success of the process and be aware of any new inefficiencies

Andon Cord

a manufacturing term referring to a system to notify management, maintenance, and other workers of a quality or process problem. A subset of Jidoka, a concept that refers to detecting abnormalities and instantly stopping work Originally created by the Toyota Production System to alert others when there were mistakes in the production process The centerpiece is a device incorporating signal lights to indicate which workstation has the problem. The alert can be activated manually by a worker using a pull cord or button, or may be activated automatically by the production equipment itself

Spaghetti Diagram

a visual representation using a continuous flow line tracing the path of an item or activity through a process. The continuous flow line enables process teams to identify redundancies in the work flow and opportunities to expedite process flow."

Plan Do Check Act (PDCA)

can be defined as : An improvement cycle based on the method of proposing a change in a current process, implementing the change, evaluating the results, and taking proper action. A four step model for carrying out change. The ultimate goal for the cycle is continuous improvement and that happens through repetition.

Genchi Genbutsu

means "go and see for yourself," in the context of facing a problem - and the idea that anyone can make a better decision from seeing a problem for themselves rather than just looking at data. It suggests that in order to truly understand a situation, you need to go to the gemba or, the "real place," where the work is done Usually viewed as a management style where in order to make a good decisions, the managers need to go to the physical location where there is a problem Values practical experience over theoretical knowledge Places emphasis on the decision makers seeing, and getting to know the problems themselves

The 5 S's

1. Sort Organization: Keep just what is needed. Distinguish between what is needed to be kept and throwing away unwanted waste. 2. Set in Order Orderliness: Customize work area to improve efficiency. Have a place for everything and implement a system where everything is in its place. Organize it in a way that all necessary things are kept close at hand, and tools and other objects are easily accessible and can be returned to their proper place. Implement visual organization streamline workflow and improve efficiency. 3. Shine Cleanliness: This can be viewed as systematic clearing where everything is clean, inspected and maintained on a regular basis. 4. Standardize Standardization- Establish methods within the company to ensure the steps above are maintained. Assign tasks and create schedules so that everyone knows their responsibilities 5. Sustain Discipline- Set up systems in the organization that will sustain the five S process. Ensure all four steps above are maintained. ensure that improvements are a long term, company wide goal. Analyze results and hold frequent meetings with staff.

Muda, Mura, Muri

1. waste, 2. unevenness, and 3. overburden. 1. Main types of waste are defects, overproduction, waiting, non-utilized resources, transport, inventories, motion and excess processing. "Any activity that consumes resources without creating value for the customer." Type one ""—consisting of activities that cannot be eliminated immediately. Type two ""—activities that can be eliminated quickly through Kaizen. 2. Unevenness can be seen in the variation in customer demand. It can be minimized by creating openness in the supply chain, and creating standard work for users. "Unevenness in an operation." Can oftentimes be eliminated by managers through level scheduling and careful attention to the pace of work. 3. Overburden results from operators or machines are pushed through their natural limits "Overburdening equipment or operators by requiring them to run at a higher or harder pace with more force and effort for a longer period of time than equipment designs and appropriate workforce management allow."

Visual Cues/Visual Workplace

5S methodology helps organizations achieve more consistent operational results through maintaining an orderly workplace can be defined as a type of strategy/ concept using visual aids to improve upon communication skills among employees and improve how the facility operates. Any workplace with "" in order to help employees in the area with the task at hand by promoting a self regulating environment that operates with less downtime Benefits include: improved safety, more effective training, reduces defects, etc. are sensory cues that provide information on how information is perceived

The Theory of Constraints

A method that identifies the most limiting factor of the supply chain. It systematically improves that constraint or bottleneck, until it is no longer standing in the way of achieving a goal. Its primary focus is on removing or managing constraints to improve throughput, the amount of material or items passing through a system or process, while lean focuses on the identification and removal of waste to improve the flow of value. Both lean and "" emphasize improving the whole system rather than individual parts.

Voice of Customer

A process used to capture the requirements/feedback from the customer (internal or external) to provide the customers with the best in class service/product quality. It is the statement made by a customer on a specific product or service Gather information at the point the product was delivered Capture customer expectations, preferences and aversions Understand and utilize that feedback to make changes in your processes

Failure Mode and Effect Analysis (FMEA)

A qualitative and systematic tool, usually created within a spreadsheet, to help workers anticipate what might go wrong with a product or process. In addition to identifying how a product or process might fail and the effects of that failure. 1. Proactive reasoning (forward thinking) used in evaluating a process in manufacturing. Assess future failures that may occur during a process A) Failure mode (What could go wrong?) B) Failure causes (Why would the failure happen) C) Failure affects ( What would be the consequences of each failure) 2. Uses in field: A) Medical field ( discover failures in drug process before launch)

Total Cost of Quality

Allows an organization to determine the extent to which its resources are used for activities that prevent poor quality, that appraise the quality of the organization's products or services, and that result from internal and external failures. Sum of all costs associated with poor quality or product failure, including rework, scrap, and warranty costs and costs incurred in preventing or resolving quality problems. It does not include costs associated with maintenance and quality training.

Hoshin Kanri

Also called "Policy Deployment" refers to strategic planning or deployment A method for ensuring that the strategic goals of a company drive progress and action at every level within that company." Used to make every employee of a company strive for the same goal, or "pull in the same direction". This is done by aligning the goals of the company with the tactics of managers and the work done by employees. Eliminates waste that comes from inconsistent direction and poor communication Achieves by aligning goals of the company with the plans of middle management and the work performed by all employees

Supermarket Pull System

Also known as a fill up or replenishment system Each process has a store that holds an amount of each product it produces. Each process simply produces to replenish what is withdrawn from its supermarket. Made to stock Most basic widespread type of pull system Each process is responsible for the replenishment of its supermarket Kaizen opportunities are easily seen

Standing in Circle Exercise

Goal was to help organizations identify and deal with the Seven Wastes of Lean which are overproduction, waiting, transportation, over-processing, inventory, motion and correction The exercise is focused on getting the facts about what is being done, not what is supposed to be done according to the set procedure Then analyzing the procedure to find any problems that could be improved Was created in effort to help managers understand and "see" waste. This exercise is used to build awareness and to rewire your brain to see several small problems at the Gemba.This exercise is a part of the philosophy of genchi genbutsu, which emphasizes going to the actual place to observe and understand. During this exercise, members are directed to stand and observe an operation carefully, and to identify the waste within the operation and why that waste exists. Members are often left standing for several hours before the sensei (Guru) is satisfied that they have recognized all the waste. It takes hours to complete this exercise because there are multiple activities occurring at the gemba, and the mind is already consumed with several thoughts.

Overall Equipment Effectiveness (OEE)

Is a metric that identifies the percentage of planned production time that is truly productive: the rate between what a machine theoretically could produce and what it actually did Can be used as a benchmark to compare performance to industry standards, and as a baseline to track performance improvement Calculated by multiplying three factors; Availability, Performance, and Quality A score of 100% means that the company is operating with perfect production This means that only good parts are being manufactured, as fast as possible, with no down time

Quick Changeover or single minute exchange of die (SMED)

Is the process that reduces or eliminates activities in the set-up and teardown time This process allows companies to move quickly and efficiently from one product to another Helps companies reduce inventory and meet customers demands for "high quality, low cost" products With this process there is little to no excess inventory

Kanban

Japanese for "visual signal" or "card", signboard, or billboard Scheduling system for lean and JIT manufacturing Is an inventory control system used to schedule a business' production and transportation needs, utilizing lean management strategies to achieve just-in-time manufacturing (JIT). Designed to: Visualize what you do today Limit the amount of work in progress Enhance Flow Developed by Tachi Ohno; Toyota Industrial Engineer

Poka-Yoke

Methods that help operators avoid mistakes in their work caused by choosing the wrong part, leaving out a part, installing a part backwards, etc. Also called mistake-proofing, and error-proofing. A Japanese term meaning, "mistake proofing." This device forbids incorrect parts from being assembled as well as quickly identifying an error. Therefore, a visual or signal occurs when an error erupts. Also the first step in error-proofing a system. A fun way to remember this term is that the Japanese word means to avoid and means inadvertent errors. Side Note** (Error-Proofing is "a manufacturing technique of preventing errors by designing the manufacturing process, equipment, and tools so that an operation literally cannot be performed incorrectly.")

Sensei

Not a boss. The role is to help only suggest, having no power. Job is to help the manager develop his or her own lean thinking Critical role in helping the manager to look up from immediate concerns and ask them thought provoking questions about where customers are going and how technology is evolving Role is to keep the manager exploring and in day-to-day issues A master of lean techniques Similar in experience to a Black Belt but in the Six Sigma methodology More focused on facilitation and teaching than on actual practice

One Piece Flow

Refers to the concept of moving one workpiece at a time between operations within a workcell. Focuses on completing the production of one piece to start to finish with as little work in process inventory between operations as possible One item is completed for each item started In simpler terms, one piece flow means that parts are moved through operations step by step with no work in progress in between either one piece at a time or a small batch at a time.

Jidoka

Synonym: Automation Providing machines and operators the ability to detect when an abnormal condition has occurred and immediately stop work. highlights the causes of problems because work stops immediately when a problem first occurs. This leads to improvements in the processes that build in quality by eliminating the root causes of defects. It gives equipment the ability to distinguish good parts from bad autonomously, without being monitored by an operator. This eliminates the need for operators to continuously watch machines and leads in turn to large productivity gains because one operator can handle several machines

The 5 Why's

Technique is used in the analyze phase of the Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control). The question "Why" is repeatedly asked in order identify symptoms and lead to the root cause of a particular problem. Most useful in situations involving daily business life or problems involving human factors or interactions. Even though it is called the "5 Why's", the question why may need to be asked more or less than five times to get to the root cause. Steps to completion of the 5 Why's Write down the specific problem at hand. Ask yourself why this problem is happening and write the answer below. If the answer is not the root cause, ask yourself why again and write that answer down. Continue doing this until the root cause of the problem is determined.

DPMO: Defects Per Million Opportunities

The average number of defects per unit observed during an average production run divided by the number of opportunities to make a defect on the product. Goal 3.4 Equation = (Defects/(Units*Opportunity to have a defect))*1,000,000

Heijunka

The japanese word for "leveling". Helps organizations meet demand while reducing wastes in production and interpersonal processes. Can't implement continuous flow without the workload being leveled. allows production to efficiently meet customer demand. Leveling production is about building consistency in output which allows continuous flow of information and materials. The goal is to produce goods at a constant rate so additional processing may be carried out at a constant and predictable rate as well. This ultimately eliminates waste.

Standardized Work

The most efficient method to produce a product (or perform a service) at a balanced flow to achieve a desired output rate. It breaks down the work into elements, which are sequenced, organized and repeatedly followed. Consists of three elements: -Takt time (the rate products must be made in a process to meet customer demands) -The work sequence in which an operator performs tasks within takt time -The standard inventory which includes units in machines, required to keep the process operating smoothly.

Takt Time

The rate at which a finished product needs to be completed in order to meet customer demand. Formula: Available production time/units a customer demands

Future State Map

This map generally projects 4 to 8 months out of the current state map, and is the guide for when all waste has been identified and removed Stage between Current State Map and Ideal (goal) State Map Identify changes you want to make in Current State Map Use Kaizen Burst to highlight these changes on the map Work back through to map starting at shipping (only producing what is demanded) Tell Finished Goods what is needed, they contact assembly, assembly contacts raw materials

Kaizen

a word taken from Japanese culture that means "continuous improvement" and it is an example of one of the many tools of lean manufacturing. continuous improvement - Making small incremental changes of improvement that hopefully in the long-run will make a big impact. has many important functions in the workplace from attempting to improve the processes of all the employees in a company from the assembly line to the CEO and everyone in-between to improving the processes involved with purchasing and logistics all the way through the supply chain. A long-term approach to work that aims to incrementally change processes in order to improve efficiency over an extended period of time. to work as needed it has to be integrated into the daily processes of everyone in the company and if it is done accurately there is a possibility that it can eliminate overly hard work which is a factor of muri from the 3m model. Muri is a form of waste reduction that reduces work processes to their simplest form.