| 3 Elements of Lean |
| 1. Pace production to TAKT Time. 2. Create uninterrupted FLOW
of products and services. 3. Wherever you cannot create FLOW today, implement some
form of a PULL system.
See: JIT, Takt Time |
| 3 GEN Principle |
| Is a guide for how to "behave" (especially if
you are a Manager) in a Lean System. The 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" A Lean System
Tool that is intended as the basis of creating a new process that is waste free.
It uses a "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 |
| A systematic process of workplace organization. |
| 6M’s of a Process |
| Main, 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. All healthcare
processes need to be examined for any of these eight forms of waste. |
| 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" items. 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. |
| 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.
Can also be applied to defects or emergencies in healthcare processes. |
| 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. |
| Balanced Facility |
| A facility where capacity of all resources is balanced
exactly with market demand. |
| Batch-and-queue |
| Refers to the usual movement of part lots in
mass-production practices or customers through a service process. 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 or one
step flow in a service process. |
| 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 |
| Any resource whose capacity is equal to, or less than the demand
placed on it. |
| Capacity Constraint Resources |
| 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
|
| CCR |
| Where a series of non-bottlenecks, based on the sequence
in which they perform their jobs, can act as a constraint.
Full: Capacity
Constraint Resources
Ref: Constraint |
| Chaku-Chaku |
| A method of conducting single-piece flow, where the operator
proceeds from machine to machine, taking the part from one machine and loading it
into the next.
Same: Load-Load |
| Constraint |
| Anything that limits a system from achieving higher
performance, or throughput. Alternate: That bottleneck which most severely
limits the organization's ability to achieve higher performance relative
its purpose/goal.
Ref: Bottleneck,
Throughput
|
| Covariance |
| The impact of one variable upon others in the same group. |
| Dependent Events |
| Events that occur only after a previous event. |
| 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 |
| Radical Improvement, usually applied only once within
a value stream.
Ref: Value Stream
Same: Kaikaku |
| Gemba |
| Japanese word of which the literal translation is
"the real place." In healthcare, Gemba means the hospital, where the
actual service is delivered, as contrasted to the office, where support
services are provided. |
| Hoshin Kanri |
| 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
|
| Information Management Task |
| The task of taking a specific service from order-taking
through detailed scheduling to delivery.
See: Value Stream
|
| Inventory |
| The money the system has invested in purchasing
things it intends to sell. |
| 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 |
| 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
|
| Kaizen |
| Continuous improvement through incremental improvements.
Same: Process Kaizen
|
| Lean |
| Producing the maximum sellable products or services
at the lowest operational cost, while optimizing inventory levels. |
| 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. |
| Non-Value Added |
| 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
|
| Operating Expenses |
| The money required for the system to convert
inventory into output.
Ref: Inventory,
Throughput
|
| Policy Deployment |
| 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 |
| The task of taking a specific product or service from
concept through design to launch.
See: Value Stream
|
| Process |
| A material flow or service flow in time and space.
The accumulation of sub-processes, or operations that transform material
from raw material to finished products or complete a service.
Ref: Operations,
Sub-Processes
|
| Process Kaizen |
| Continuous improvement through incremental improvements.
Same: Kaizen
|
| Quality |
| Meeting expectation and requirements, stated and
un-stated, of the customer. |
| Real Value |
| 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 |
| Using a resource regardless of whether throughput is increased.
Ref: Throughput
See: Resource Utilization
|
| Resource Utilization |
| Using a resource in a way that increases throughput.
Ref: Throughput
See: Resource Activation
|
| Sensei |
| An outside master or teacher that assists in implementing
lean practices. |
| Shine |
| clean the work area. |
| Sort |
| get rid of clutter. |
| Standard Work |
| 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 |
| Kinds of information that cannot be precisely predicted. |
| Sub-Optimization |
| 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 |
| A series of operations combined. Part of a process.
Ref: Operations,
Process
|
| Sustain |
| Maintain through empowerment, commitment, and discipline. |
| Takt Time |
| Daily throughput number required to meet current demand
divided into the number of working hours in the day. |
| Theory of Constraints (TOC) |
| A lean management philosophy that stresses removal of
constraints to increase throughput while decreasing inventory and operating expenses.
Ref: Constraint,
Inventory,
Operating Expenses,
Throughput
|
| Value Added |
| Activities or actions taken that add real value
to the product or service.
Ref: Real Value
See: Non-Value Added
|
| Value Analysis |
| Analyzing the value stream to identify value
added and non-value added activities.
Ref: Non-Value Added,
Value Added,
Value Stream
|
| Value Stream |
| The set of specific actions required from
initiation of a service to completion.
See: Information Management Task,
Physical Transformation Task,
Problem Solving Task
|
| Visual Controls |
| Displaying the status of an activity so every
employee can see it and take appropriate action. |
| Waste |
| Anything that uses resources, but does not
add real value to the product or service. |