AGILE AND WORLD CLASS MANUFACTURING

COOKBOOK
COMPILED BY FRANCOIS DE VILLIERS 2008-02-22

INTRODUCTION

A brave new world of least cost quality products and services awaits the adopters of Lean, Agile and World Class Manufacturing. However, these methodologies are often seen as daunting: a bewildering array of concepts and a healthy measure of Japanese philosophy and language is enough to scare off most casually interested people. Even the naming the basic concept seems troublesome, as Lean is often rightly or wrongly and interchangeably referred to as Toyota Production System, Pull Manufacturing, Just-In-Time, Lean Manufacturing, JIT/TQC/EI/TPM, Short Cycle Manufacturing, One-PieceFlow, Cellular Manufacturing, Demand Flow Manufacturing, Stockless Production, Focused Flow Manufacturing, Agility, Value Adding Manufacturing, Group Technology, Time Based Management, Synchronous Flow Manufacturing, End-Lining Operations, and Continuous Flow Manufacturing. Every consulting group or writer chooses a new name or catch phrase to describe the same collection of tools, techniques methodologies embodied in the basic lean philosophy. Confusing as all these different titles may seem, the underlying principles of lean is neither new nor complicated. The fact that lean is not new is clear from its history. Lean essentially stems from the work of a number of Japanese industrial engineers (most of them employed by Toyota at some stage, based on the concepts, techniques and writings of Henry Ford and the Ford Motor Company, which in turn was based on the foundations of lean penned by Benjamin Franklin more than a century before. Also, lean is not complicated: it is good old fashioned common sense. In Ford’s own words “The old American virtues of thrift and industry have no successors or substitutes. Business success is still a matter of making friends by service, and not a case of cornering necessitous people in such a way that they will have to come to you" (Ford, 1922a, 282-283). Lean is basically all about getting the right things, to the right place, at the right time, in the right quantity while minimizing waste and being flexible and open to change. It is a team based approach to identifying and eliminating waste (non-valueadding activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection. This book aims to demystify the basic (and some advanced) concepts of lean in an easy to read cross referenced dictionary style. It is hoped that the inclusion of Japanese terminology will show that, while the language is foreign, the principles are essentially simple and based on sound logic. Enough illustrations are included to make it an invaluable training resource too. While every effort has been made to make this guide as comprehensive as practical, it is not possible to distill all the work of the leading industrial engineers of the previous century to a few pages. The subject is worthy of much deeper and wider study. Therefore a comprehensive list of web references and suggested further reading is included at the back of the book.

Francois de Villiers, 31 May 2006

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ACKNOWLEDGEMENTS AND COPYRIGHT

This book was never intended for publication – it evolved from my needing to learn Lean Manufacturing concepts very quickly when I was appointed as Logistics Director at an international manufacturing company in 2006. What started as a glossary quickly grew to a fairly comprehensive resource on the key and supporting concepts of Lean Manufacturing. Realising the inherent value in these concepts, I presented the first copy of the book to my former employer as a farewell gift and kept on amending it for more than two years by liberally cutting and pasting from all over the www. As it stands now I believe this is a unique and valuable tool for all lean practitioners, too good not to share with others. Not contemplating publication at that time of compilation I did not keep meticulous records of my sources at the time of compilation. Much material came from the web-sites listed at the back of the book, but countless others were used. While I may be guilty of copyright infringement, this is entirely unintentional. In any event, the disjointed structure of this book makes it worthless without one of the recognized texts on the subject, also listed at the back of the book. So please support the authors and publishers who make a living out of their writing and books. As I publish this collection on Scribd it now enters the public domain. Please feel free to copy and share this work with others that may find it of value. However I retain copyright on this collection. Therefore please reproduce this document in its entirety only, including this notice.

Francois de Villiers (devilliers.fs@gmail.com)

PS. The document has never been proof-read in its entirety. Please contact me should there be any glaring errors or omissions.

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improving quality.' And again. which included Just-in-time manufacturing. For in another place he says. that perhaps the cheapest is apparent only. and with less effort. Transportation. to the right place. straightening your circumstances]. Lean "tools" include constant process analysis (kaizen). He that loses 5s. and not real. 'Buy what thou hast no need of. Processing. Often an engineer will specify familiar.INTRODUCTION TO LEAN MANUFACTURING From Wikipedia. The key lean manufacturing principles: • • Perfect first-time quality . and if necessary conduct a series of experiments to determine accurately the relative merit of the new suggestion and of the old standard. but all the other advantages that might be made by turning it in dealing. by straightening thee in the business [reducing your available cash. the free encyclopedia Lean manufacturing is a management philosophy focusing on reduction of the 7 wastes (Over-production. and decreasing profits. Motion and Scrap) in manufactured products. which delivered the bricks at waist level. "You call them goods." He added that avoiding unnecessary costs could be more profitable than increasing sales: "A penny saved is two pence clear. and might as prudently throw 5s. A pin a-day is a groat a-year. the father of scientific management. Poor Richard's Almanack says of wasted time (a basic principle of the Theory of Constraints). not pushed from the production end Flexibility – producing different mixes or greater diversity of products quickly. without sacrificing efficiency at lower volumes of production Building and maintaining a long term relationship with suppliers through collaborative risk sharing. a concept that appeared two centuries later in Eliyahu Goldratt's The Goal. safe materials and processes rather than inexpensive. production time is reduced and cost is reduced. You expect they will be sold cheap. by the time a young man becomes old.e." Franklin's The Way to Wealth says the following about carrying unnecessary inventory. The concept of waste being built into jobs and then taken for granted was noticed by motion efficiency expert Frank Gilbreth. it should be the policy of the management to make a careful analysis of the new method. in the right quantity while minimizing waste and being flexible and open to change. This reduces project risk. i. but. or the bargain. increasing productivity and information sharing Pull processing: products are pulled from the consumer end. they must be dear to you. [shillings] worth of time. History of Lean Manufacturing The basic principles of lean manufacturing date back to at least Benjamin Franklin. quality is improved.quest for zero defects. Save and have." Henry Ford cited Franklin as a major influence on his own business practices. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 4 OF 107 . 'At a great penny worth pause a while:' He means. and. may do thee more harm than good. loses 5s. if you have no occasion for them. at the right time. they will prove evils to some of you. "pull" production (by means of kanban) and mistake-proofing (poka yoke). perhaps. efficient ones. maximize use of scarce resources (capital. And whenever the new method is found to be markedly THE LEAN. cost sharing and information sharing arrangements. which. 'Many have been ruined by buying good penny worths'. into the river. Frederick Winslow Taylor. not only loses that sum. while increasing financial risks. people and land) Continuous improvement – reducing costs. Waiting time. By eliminating waste (muda). Good organizations develop and review checklists to review product designs. introduced what are now called standardization and best practice deployment: "And whenever a workman proposes an improvement. revealing & solving problems at the source Waste minimization – eliminating all activities that do not add value & safety nets. Remember what Poor Richard says. One crucial insight is that most costs are assigned when a product is designed. but.3 kg) brick but this inefficiency had been built into the job through long practice. who saw that masons bent over to pick up bricks from the ground. that is. • • • • Lean is basically all about getting the right things. allowed masons to work about three times as quickly. amounts to a comfortable bag of money. Introduction of a non-stooping scaffold. they may [be bought] for less than they cost. Inventory. The bricklayer was therefore lowering and raising his entire upper body to get a 5 pound (2. the cost to the engineer. if you do not take care. and ere long thou shalt sell thy necessaries.. "He that idly loses 5s.

is to hire extra men. a steamship. Norman Bodek wrote the following in his foreword to a reprint of Ford's (1926) Today and Tomorrow: "I was first introduced THE LEAN. because it is obvious that workers will not drive improvements they think will put them out of work. the best-known exponent of single-minute exchange of die (SMED) and error-proofing or poka-yoke. 1987. a dress. Ford also pointed out how easy it was to overlook material waste. an airplane. … It is waste motion— waste effort— that makes farm prices high and profits low." The same reference describes Just in time manufacturing very explicitly. Taylor also warned explicitly against cutting piece rates (or. This slag had been dumped there from our own furnaces.. great increase of pay to the workers. He will carry water for years instead of putting in a few lengths of pipe. as at once cause and effect. repeated reduction in cost to the consumer." As for the Second World War." There is no doubt that Ford gave the country the forty-hour work week and. a cartoonist for The Times recognized that "Henry Ford is the most powerful individual enemy the Kaiser has.. "I believe that the average farmer puts to a really useful purpose only about 5 %. cites Principles of Scientific Management as his inspiration (Andrew Dillon. Ford saw the rust and realized that the steel plant was not recovering all of the iron. Ford: We Never Called Him Henry). Per My Life and Work. however. "We are justly proud of the high wage rates which prevail throughout our country. Levinson (2002. it should be adopted as the standard for the whole establishment" (Principles of Scientific Management. where the ideas and principles mentioned by Ford finally got in practice. and an enormous profit to the manufacturer" (Charles Buxton Going. Ford and I were together he spotted some rust in the slag that ballasted the right of way of the D. You make the crane crews who put it out there sort it over. Ford's production chief Charles Sorensen wrote. However. even during the First World War. translator. it was with Taiichi Ohno at Toyota. financially. "Ford's success has startled the country. T. we also cut down the cost of making. Henry Towne. 1911). past President of the American Society of Mechanical Engineers. who developed a comprehensive lean manufacturing system.'" In other words. 'You know.are major forms of waste even in modern workplaces. cutting wages or discharging workers) when efficiency improvements reduce the need for raw labor: "…after a workman has had the price per piece of the work he is doing lowered two or three times as a result of his having worked harder and increased his output. mechanically. and jealous of any interference with them by the products of the cheaper labor of other countries. This applies to everything— a shoe. Ford Methods and the Ford Shops (1915)). ""The seeds of [Allied] victory in 1945 were sown in 1908 in the Piquette Avenue plant of Ford Motor Company when we experimented with a moving assembly line" (1956. a house. preface to Arnold and Faurote. and take it back to the plant. a railroad." Poor arrangement of the workplace-. by implication. he is likely entirely to lose sight of his employer's side of the case and become imbued with a grim determination to have no more cuts if soldiering [marking time. but seldom is a thought given to a logical arrangement. A farmer doing his chores will walk up and down a rickety ladder a dozen times. a piece of machinery. and.' Mr.superior to the old. when there is extra work to do. to strengthen our control of home markets. which are: constant increase of quality. industrially. above all." This is now a foundation of lean manufacturing. we should welcome and encourage every influence tending to increase the efficiency of our productive processes. He thinks of putting money into improvements as an expense.But also it is to be remembered that all the parts are designed so that they can be most easily made. As we cut out useless parts and simplify necessary ones. The Sayings of Shigeo Shingo: Key Strategies for Plant Improvement). To maintain this condition. My Forty Years with Ford). AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 5 OF 107 . My Life and Work) provided a single-paragraph description that encompasses the entire concept of waste. Henry Ford's Lean Vision: Enduring Principles from the First Ford Motor Plant) contends that Ford's lean enterprise system "was directly responsible for making the United States the wealthiest and most powerful country on earth.and doing a job inefficiently out of habit-.a major focus of the modern kaizen-. American industrialists recognized the threat of cheap offshore labor to American workers during the 1910s. As described by Harry Bennett (1951. almost the world. of the energy he expends. 'there's iron in that slag. It exhibits in higher degree than most persons would have thought possible the seemingly contradictory requirements of true efficiency." It was Henry Ford. … Not only is everything done by hand. wrote in the Foreword to Frederick Winslow Taylor's Shop Management (1911). just doing what he is told] can prevent it. Shigeo Shingo. . an absolutely incredible enlargement of output reaching something like one hundred fold in less than ten years. "Start with an article that suits and then study to find some way of eliminating the entirely useless parts. Ford said to me. His whole idea. to broaden our opportunities in foreign markets where we must compete with the products of other industrial nations. And with these appears. Ford (1922. "One day when Mr. Design for Manufacture (DFM) also is a Ford concept. and what is now called lean manufacturing was explicitly regarded as a countermeasure. & I [railroad].

to the concepts of just-in-time (JIT) and the Toyota production system in 1980." THE LEAN. There I met Mr. he just laughed and said he learned it all from Henry Ford's book. the system's creator. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 6 OF 107 . When bombarded with questions from our group on what inspired his thinking. Taiichi Ohno. Subsequently I had the opportunity to witness its actual application at Toyota on one of our numerous Japanese study missions.

AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 7 OF 107 . THE LEAN.A-Z OF LEAN 1B 10 COMMANDMENTS OF IMPROVEMENT: Commonly cited rules for improvement.

8. 9. 5.10 COMMANDMENTS OF KAIKAKU: by Hiroyuki Hirano 1. "Throw out the traditional concept of manufacturing methods. 4. 6. 9." "Problems give you a chance to use your brains. 8. 3." “Kaikaku knows no limits. 2. 4. No roots. 2." "Don't spend money on Kaikaku. Make operator work stations narrow. Design in the separation of internal and external tasks. 10.” 16 CATCH PHRASES OF 3P: The 16 Catch Phrases of 3P are used as guidelines for designing processes according to Lean manufacturing principles of JIT (Takt. Town houses. 6. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 8 OF 107 . Build equipment that is easy to set up. Design out 'air cutting' and minimize machine movements. Pull) and Jidoka. Build equipment for small." "Think of how the new method will work. 3. Layout equipment for ease of operator movement. swift flow lines. 7. Use additive equipment. Eliminate wasted machine cycle time. Avoid over planning. Buy many speedboats instead of one tanker. Flow like a river. Simple. no pits. The 16 Catch Phrases are: 1. "just fast enough" machines that perform one function well." "Don't seek perfection. act now. not ranch houses. THE LEAN. Enable Standard Work (Takt." "Correct mistakes the moment they are found." "Don't accept excuses. 7. Production preparation should be lightning fast. Work Sequence. Use multi-purpose equipment. Flow. not like a dam. Make equipment easy to move. SWIP). Build & layout equipment for smooth material flow. Put wheels on everything. not how it won't work. 10. use what you have. Totally deny the status quo. A 50% implementation rate is fine as long as it is done on the spot. Remove obstruction to smooth human motion. no vines." "Ask 'Why' five times." "Ten person's ideas are better than one person's knowledge. 5.

Conserving energy and materials to avoid waste. Scheduling. Vertical = advancing process flow. 17. 11. Cross-functional working. rather than external specialists. including defective parts and links into improvement. 'Rectified' is an odd term. 6. These are: 1. It reads very much like a ‘who’s who’ of manufacturing innovations and hence makes a very useful checklist. Continuous improvement in the workplace. 16. Balancing financial concerns with other areas which indirectly affect costs. bringing in the latest machines and making them really work. Teamwork on improvement. 13. 12. Constant identification and elimination of things that either do not add value or even destroy it. Process. 19. Reducing times to change dies and machines to enable more flexible working. low-cost products. Conservation. THE LEAN. 15. Maintenance. vertical flow lines. 13. People working with others in different departments and even moving to gain experience in other areas too. high-quality. constantly making work better and the workplace a better place to work. 2. 2 20 KEYS TO WORKPLACE IMPROVEMENT: Iwao Kobayashi’s list of 20 items to gain focus for workplace improvement that can be used in manufacturing audits. Participative management style. Training workers to do the jobs of more highly skilled people.11. Technology. Clean and tidy. Design in SMED at the machine level. 18. Zero monitoring. A practical exercise is to take this and use it either to evaluate your current workplace or as a discussion forum. Defects. Waste. Site technology and Concurrent Engineering. Spiral upwards to jidoka. 14. 3. 16. Supplier partnerships. Build in quick changeover. Build equipment for one-piece pull. Worker empowerment and training. This is a useful list. Everywhere and all of the time. Timing of operations that creates flow and a steady stream of on-time. 9. Understanding and use at all levels of methods such as Concurrent Engineering and Taguchi methods. 20. Synchronised total systems where all the parts work together rather than being independently timed. There are 5 steps to jidoka. Use multiple lines & rectified flows. Link machines for smooth loading and unloading. Changeover reduction. horizontal = functional. Use short. making them a part of the constantly-improving value chain. 8. Creating interconnected cells where flow and pull are the order of the day. Focused on teamwork to involve everyone in enthusiastic improvements. Addressing overproduction and reducing costs and timescales. Creating improvement as a ‘way of life’. Reduced inventory and lead time. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 9 OF 107 . 12. 14. Building systems that avoid the need for ‘machine minders’ and instead have people who are working on maintaining a number of machines. electrical engineers will get it. Using and teaching people about more complex technology so they can use and adapt to it. Management of defects. Line stops when WIP on the line is "full work". Disciplined. so they can increase the value they add on the job. 10. 7. cellular manufacturing. Efficiency. Machine level. This allows constant adjustment and minimum downtime. both for the company and for the broader society and environment. ensuring people understand it all and adding to it other areas that you need to add for your company. which should be pursued a step at a time. 4. rather than fighting with them. Working with all people to engage their minds and hearts into their work as well as their hands. Working with suppliers. 5. rhythmic working. but of course it still does not include everything. Maintaining of machines by people who work on them. This is probably the most critical one. 15.

THE LEAN. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 10 OF 107 .

2) Discuss but don’t decide. and 3) the downstream pull system. 3 ELEMENTS OF DEMAND: The three drivers of customer satisfaction are Quality. 2) the actual product (gembutsu). Cost. Rapidly designing production processes and equipment to ensure capability. and Takt-Flow-Pull. 2) flow production. the K's stand for kitanai. Then. An archetype first used by Collins. Countermeasure Problem solving approach. Countermeasure is installed to prevent recurrence. 3P (New): Purpose. Initial problem is defined and stated as a Concern. In Japanese “San Ke”. Muri 3P: Production Preparation Process. after route cause analysis with the problem solving cycle. 3 EVILS OF MEETINGS: 1) Meet but don’t discuss. and time. See 16 Catch Phrases of 3P. The Production Preparation Process minimizes resources needed such as capital. PDCA. 3MU: See Muda. tooling. built-in quality. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 11 OF 107 . dangerous. and Porras in Built to Last and popularized in the lean movement by by Jim Womack. 3Ds: Working conditions or jobs that are dirty. Mura.3 3C’s: Concern. sometimes referred to as 3C. James C. and 3) the facts (genjitsu). or difficult. kiken. Containment. working with the actual product and getting the facts. The key to successful kaizen is to going to the shop floor. 3) Decide but don’t do 3 GEN PRINCIPLE: The three principles are 1) shop floor (gemba). and Delivery. space. THE LEAN. inventory. and kitsue. Process. productivity. Containment action is taken to protect the customer (internal and/or external). People (sometimes also Data). 3 ELEMENTS OF JIT: The three elements of JIT are 1) takt time.

kanban. People (Partners). Scheduled Quantity. Process. Flexible. Unscheduled Quantity. Problem Solving THE LEAN. kaizen. Teike. Process. See Futeiki. according to Womack who led the MIT research team that coined the term "lean". People. Available. and Leveling. Is everyone touching the value stream actively engaged in operating it correctly and continually improving it • • 4 4 CONDITIONS OF DELIVERY: Possible conditions are Scheduled Time. Futeiryou. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 12 OF 107 . and that all the steps are linked by Flow. Teiryou. Pull. 4P’s OF THE TOYOTA WAY: Philosophy. managers and executives must think differently about lean. • Purpose: means the organization cost-effectively solves the customer's real problems so the enterprise can prosper. Unscheduled Time. to a new age focused on implementing lean management. The key is to focus on the fundamental issues of Purpose.For lean enterprises to evolve beyond the current "tool age" focused on implementing individual methods such as valuestream mapping. Process : means the organization assess each major value stream to make sure each step is Valuable. Adequate. Capable. People: means that every important process in the organization has someone responsible for continually evaluating that value stream in terms of business purpose and lean process. etc.

material. What. Where. maintain and improve the safest. materials. understands the benefits and contributes to the improvement 5M COMPONENTS OF TECHNOLOGY: Technology consists of the following five elements. 5 C’s is a 5 step technique very similar to 5S to stabilise. Raw materials and resources (including energy): M1 2. Modern technology must have all of these elements to function properly. THE LEAN. Cost and Delivery. Understanding these factors and the establishment of standards are key steps in strengthening the production processes. machines. and measurement. measurement and environment. Clear Out . 1. Manualy clean to spot abnormal conditions Conformity . 5M's and E: Methods. best working environment to support sustainable Quality.4 W's & 1H: Who. manpower. When and How. Markets for technology and its products: M5 5M OF PRODUCTION: A method for managing resources in gemba—specifically those known as "5M"—manpower. A place for everything and everything in its place Clean and Check . 5 PRINCIPLES OF LEAN THINKING: Lean thinking emphasises the elimination of waste and the adoption of the following five principles: * Specify what does and does not create value from the customer's viewpoint * Identify the whole value stream * Make information and products flow * Only make or supply what is pulled by the customer * In pursuit of perfection. Ensures that the standard is maintained and improved Custom and Prctice . method. or what we may call the five Ms. A useful tool to help develop an objective and a concise statement of the problem. machine. Management (technology management and management technology): M4 5. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 13 OF 107 . 5 5Cs: Alternate English translation used to describe the same stages of the 5Ss. Manpower (engineers and skilled workers): M3 4. Everyone follows the rules. Also se PEMPEM.Separate the essential from the non essential Configure . Machines and equipment: M2 3.

cost. In English the 5S are sort. seiso. by anyone. and shitsuke (collective in Japanese “Go Esu”). seiketsu. and everything in its place” “The best cleaning is to not need cleaning” Make routine and standard for what good looks “See and recognize what needs to be done” like Sustain by making 5S second nature “The less self-discipline you need. if most of those things are not needed. seiton. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 14 OF 107 . standardize. The five ‘S’ words below are the steps of 5S. The discipline of 5S is a fundamental building block for Lean Manufacturing or the Lean Office. sweep. the better” THE LEAN. It doesn’t make sense to start by arranging things neatly. and self-discipline. It is easily applied to any business and any process. There are many reasons to begin your Lean journey with 5S: • It can be done today • Everyone can participate • Waste is made visible • Has a wide area of impact o Improves set up times o Improves quality o Improves safety o Improves morale o Improves productivity There is an order and logic to how 5S is carried out. Derived from the Japanese words seiri. straighten. Good 5S improves quality. the customer experience. and enables World Class Performance. safety. throw it out” “A place for everything. Step 1 2 3 4 5 Name Sort Straighten Sweep Standardize Self-discipline Action Remove unnecessary items from the workplace Locate everything at the point of use Clean and eliminate the sources of filth Catch Phrase “When in doubt.5S: The principle of waste elimination through workplace organization.

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THE LEAN. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 16 OF 107 .

9 Standardize 0 Straighten 3.5S KAIZEN RADAR CHART: Graphical representation of score out of 5 for each S of 5S.7 Sweep THE LEAN.4 Self.2 Discipline 1. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 17 OF 107 .7 2.2. Sort 5 4.

Set-up and Adjustments Time lost during changeover from the current product to the next product. Reduced Speed Loss when machine operates below design standard speeds. See OEE. Causes: • Remove tooling • Find tooling • Attaching new tooling • Adjust new settings 3. Also see PEMPEM. surroundings. doing rework. Idling and Minor Stops Brief stoppages due to 'insignificant' problems. environment) Manpower (People/mainly physical work) Mindpower (Also people/mainly brain work) Management (separate from Manpower/People because it considers Tampering) Money Miscellaneous Markets (including Products) (the) Moon (so far unknown cause) 6 MAJOR LOSSES: OEE (Overall Equipment Effectiveness) is used to identify and attack what are called the Six Big Losses of TPM. Causes: • Manual error • Bad material THE LEAN. Causes: • Parts stuck in a chute • Removing chips • Malfunction of sensors • Program error 4.5 WHY: A simple but effective method of analyzing and solving problems by asking ‘why?’ five times (or as many times as needed to find the root cause). Other definitions: • • • • • • • • • • • • Machines Methods Materials Measurements Milieu (Mother Nature. TPM. or managing defective parts. 1. 6 6M: Same as 5M of Production with the addition of Mother Nature. These losses are the most common causes of lost time and efficiency of production equipment. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 18 OF 107 . Breakdowns and Failures A loss of equipment function needed to perform a operation. Defects Time lost to making scrap. Causes: • Machine wear • Human intervention • Tool wear • Overloading machine 5. or changing the settings during a run. Causes: • Overloading the machine • Loose bolts and nuts • Excessive wear • Lack of oil • Contamination 2.

startup or other early production. warm-up period. Ideal Run Rate or Nameplate Capacity).k. (Currently. Causes: • Slowly bringing machines up to speed • Raising ovens to set temperature • Running off excess material • Process related loss of material.) THE LEAN. Startup Rejects (Losses that Deteriorate Quality Rate) Rejects during warm-up.Tool breakage Program error 6. etc. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 19 OF 107 .a. JIPM identifies cutting blade losses as a seventh loss. May be due to improper setup. Quality Loss Production Rejects Rejects during steady-state production. Speed Loss Reduced Speed Anything that keeps the process from running at its theoretical maximum speed (a. cutting blade losses should be categorized as either performance or downtime losses for the purpose of calculating OEE. • • OEE Loss Category (Losses that Deteriorate Availability Rate) Six Big Loss Category Breakdowns Event Examples Comment There is flexibility on where to set the threshold between a Breakdown (Down Time Loss) and a Small Stop (Speed Loss). Since this is not a common loss to all machines. Down Time Loss • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Tooling Failures Unplanned Maintenance General Breakdowns Equipment Failure Setup/Changeover Material Shortages Operator Shortages Major Adjustments Warm-Up Time Obstructed Product Flow Component Jams Misfeeds Sensor Blocked Delivery Blocked Cleaning/Checking Rough Running Under Nameplate Capacity Under Design Capacity Equipment Wear Operator Inefficiency Scrap Rework In-Process Damage In-Process Expiration Incorrect Assembly Scrap Rework In-Process Damage In-Process Expiration Incorrect Assembly Setup and Adjustments This loss is often addressed through setup time reduction programs. Small Stops (Losses that Deteriorate Performance Rate) Typically only includes stops that are under five minutes and that do not require maintenance personnel. Startup and Yield Time it takes a machine to 'warm up' to full production after a period of downtime.

Reduce kanbans to identify problems and drive kaizen activity. These six rules help insure that habits of batch & queue push production do not interfere with smooth flow and pull. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 20 OF 107 . Built-in quality is a must. This must be avoided to have a smoothly flowing operation. If the supermarket is located at the consumer process (downstream) instead of the producer process (upstream) this is not a true pull system. even demand. A kanban system can be made to work where these problems exist but at higher inventory levels unless some of these problems are addressed. Kanban attachment to the actual part or actual container. Smoothing the schedule by averaging the volume and mix allows for lower safety factors in the kanban calculation. 2. 4. Heijunka scheduling. Zero defects passed on downstream. There must be a daily schedule based on monthly production requirements. Kanban works only if you have reliable equipment. this is push. Without this you may end up carrying more inventory. 6. If the producer process delivers finished materials downstream. a stable workforce. 6S: Same as 5S with the addition of Safety 7 THE LEAN. The kanban card must be attached to the actual part in order to promote visual management. 5.6 RULES OF KANBAN: A successful kanban implementation requires stable processes and a discipline of following procedures and rules. Defective materials passed downstream will create line stops and confusion. The actual quantity in the container must equal the kanban quantity total. Thee six prerequisites for using kanban are: 1. Downstream pull of material. rather than inspect-in quality or rework-in quality. Removing kanban cards from the system exposes part shortages. Kanban systems require training and awareness of the importance of following and maintaining the sequence dictated by Kanban. 3. This rule prevents overproduction. The upstream process only produces what the downstream process takes away. Calculating the kanban quantities means taking out the slack in the system. Upstream replenishmentof the quantity the customer process withdraws. No parts can be produced or moved without kanban providing the signal. and other problems that can help encourage further kaizen activity. The downstream process takes material when needed from the upstream process. line stoppages. and the practice of following standard and procedures. A kanban system only functions when you know what you will produce tomorrow. good quality.

3) process decision program charts. 6) Inventory. The seven types of waste are: • Overproduction • Transportation • Waiting • Motion • Processing • Inventory • Defects The 7 Wastes – Definition “Muda” OverProducing more than the production customer needs right now Examples Causes Forecasting Long set-ups “Just in case” for breakdowns Batch production Push production Storage Functional layout Countermeasures Pull system scheduling Heijunka – level loading Set-up reduction TPM Producing product to stock based on sales forecasts Producing more to avoid set-ups Batch process resulting in extra output Transportation Movement of product Moving parts in and out of storage that does not add value Moving material from one workstation to another Motion Movement of people that Searching for parts. Information. The 7 wastes are 1) Overproduction. Lacking fundamental knowledge. 4) histograms. Placing schedule considerations ahead of quality. Flow lines Pull system Value Stream organizations Kanban Workplace disorganization 5S Missing items Point of Use Storage PAGE 21 OF 107 THE LEAN. Pervasively believing in entitlement. 2) relationship diagrams. The activities that comprise work can be grouped in three categories: 1) Value-added work 2) Non value-added work 3) Waste Customers will pay for value-added work. Raw Material. 6) tree diagrams and 7) affinity diagrams. John Dew in ASQ Quality Journal. Use the acronym 'DOTWIMP' to remember the 7 Wastes of Lean. They are 1) matrix diagram. Engineering (& Tools). • • • • • • • Placing budgetary considerations ahead of quality. 4) activity network diagrams. 7 TOOLS OF QC: Ishikawa’s 7QC Tools which revolutionized Japan and the world in the 60’s and 70’s. 2) cause and effect diagrams. and sometimes the non value-added. 5) Processing. 5) graphs. Data gathering and analysis tools used for kaizen activities originally by QC Circles. resulting in "endullment. research or education. “All problems can be solved by looking at and understanding the 7 FLOWS” – Nakao 7 NEW TOOLS: Problem solving tools used for kaizen and Hoshin Kanri activities." 7 FLOWS: Man. 6) scatter diagrams. 3) Motion. Placing political considerations ahead of quality. They are 1) check sheets. The following seven categories or forms of waste easily remembered as COMMWIP: • • • • • • • Correction Over-production Movement of Material Motion (excess for people) Waiting Inventory Process/Procedure (lack or faulty) See Muda. and Finished Goods Inventory. Practicing autocratic behaviors. Machine. and 7) Defects. tools. 2) Transportation. 7 WASTES OF PRODUCTION: There are 7 types of waste that describe all wasteful activity in a production environment. and 7) broken line graphs (control charts). Being arrogant. Work-In-Process. Nanatsunomuda. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK .7 DEADLY SINS OF QUALITY (AND LEAN): Coined by Prof. Elimination of the 7 wastes leads to improved profits. does not add value etc. prints. 4) Waiting. Customers will not pay for waste. 5) radar charts. 3) Pareto diagrams.

Waiting for prints people. rework.Waiting Processing Sorting through materials Reaching for tools Lifting boxes of parts Idle time created when Waiting for parts material. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 22 OF 107 . information. or products on hand than the customer needs right now Raw materials Work in process Finished goods Consumable supplies Purchased components Scrap Rework Defects Correction Field failure Variation Missing parts Defects Work that contains errors. parts. mistakes or lacks something necessary Water Spider One-piece flow Workstation design Push production Downstream pull Work imbalance Takt time production Centralized inspection In-process gauging Order entry delays Jidoka Lack of priority Office Kaizen Lack of communication TPM Delay between processing Flow lines Push system One-piece pull Customer voice not Office Kaizen understood 3P Designs “thrown over the Lean Design wall” Supplier lead-times External kanban Lack of flow Supplier development Long set-ups One-piece flow lines Long lead-times Set-up reduction Paperwork in process Internal kanban Lack of ordering procedure Process failure Gemba Sigma Misloaded part Pokayoke Batch process One-piece pull Inspect-in quality Built-in quality Incapable machines 3P Jidoka THE LEAN. or equipment is Waiting for inspection not ready Waiting for machines Waiting for information Waiting for machine repair Effort that adds no value Multiple cleaning of parts from the customer’s Paperwork viewpoint Over-tight tolerances Awkward tool or part design Poor workstation design Unsafe work area Inventory More materials.

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Muda caused by inappropriate processing BAD GOOD PAGE 25 OF 107 . AGILE AND WORLDCLASS MANUFACTURING COOKBOOK 7. Muda caused by defects 1. Muda caused by unnecessary movement 2. Muda caused by overproduction 6. Muda caused by transport 5.THE LEAN. Muda caused by unnecessary stock 3. Muda caused by waiting 4.

Choose / Verify Permanent Corrective Action D#6 .Prevent Recurrence D#8 ..Recognize the Team THE LEAN. poor or non-existent training. organizational culture. etc. develop interim containment.8 8 WASTES: Same as 7 Wastes with the addition of Underutilized People – This includes underutilization of mental. recognize and reward the contributors. 8D (TOPS-8D): The 8D Process is a problem solving method for product and process improvement. D#3 .but that is the basics. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 26 OF 107 . This is often required in automotive industries. See 7 Wastes. different companies have their different twists on what they call the steps. and high employee turnover. establish a team. inadequate hiring practices. define & verify root cause. where non-Lean environments only recognize underutilization of physical attributes. implement corrective action.Define / Verify Root Cause D#5 . choose permanent corrective action.Develop an Interim Containment Action D#4 . The 8 basic steps are: Define the problem and prepare for process improvement. Muda.Implement / Validate Permanent Corrective Action D#7 . Some of the more common causes for this waste include – poor workflow. prevent recurrence. (First published approximately 1987) D#1 . 8 D is short for Eight Disciplines which Originated from the Ford TOPS (Team Oriented Problem Solving) program..Describe the problem. creative. and physical skills and abilities. Of course.Establish the Team D#2 . describe the problem. It is structured into 8 steps (the D's) and emphasizes team.

flow maps or other visual means of summarizing the current condition and future state. and corrective action planning tool.AB A3 REPORT: This "A3" sized (11 inches x 17 inches) form is used at Toyota as a one-sheet problem evaluation. root cause analysis. THE LEAN. graphics. It often includes sketches. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 27 OF 107 .

THE LEAN. both borrowed from practices of the Toyota Motor Company.The A3 problem-solving method and document. in combination with the value stream map (VSM). AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 28 OF 107 .¹ have shown their value in reducing waste and error. The A3 method offers a long-missing standardized approach to solving problems identified in higher-level value stream maps.

AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 29 OF 107 . See Ijo Kanri. B items the next 20-25% of items and 20-30% of dollar volume. yellow (changeover or planned maintenance). ACTIVITY BASED COSTING: A management accounting system that assigns cost to products based on the resources used to perform a process (design. etc.and strategic alliances -. andons are lights placed on machines or on production lines to indicate operation status. techniques. repeaters and strangers. order entry. and red (abnormal. See Fast and Flexible Manufacturing. production. labor.to respond rapidly to unforeseen shifts in the marketplace. ABC: See Activity Based Costing. THE LEAN. and initiatives that enable a plant or company to thrive under conditions of unpredictable change. etc. Machine A cannot feed machine B until it is empty or waiting for work. raw materials. ABNORMALITY MANAGEMENT: Being able to see and quickly take action to correct abnormalities (any straying from Standard Work). and C items as the bottom 60-70% of items and only 15-30% of the dollar volume.Classification system of items in decreasing order of annual sales value (price x projected volume). it includes the ability to react quickly to technical or environmental surprises. with A items accounting for the top 10-20% in terms of number of items and 60-70% of dollar volume. ANDON: A tool of visual management. Usually displays the Pareto 80:20 rule in that 80% of inventory value is held in 20% of the materials. in exception reporting and in selecting items for periodic inventory cycle counts (A items are counted the most frequently). Andons are commonly color-coded green (normal operations). In some instances. Often combined with an audible signal such as music or alarms.A-B CONTROL: A method used to regulate working relationships between a pair of operations such that overproduction is minimised. Agile manufacturing not only enables a plant to achieve rapid response to customer needs. and communication. ABC ANALYSIS: An inventory classification scheme that ranks items based on past (or projected) annual usage times cost or price. machine time. This is the goal of standardization and visual management. Most commonly. (with the tightest control over A items). machine down). In broad terms. organizational redesign and new marketing strategies. by managing complex inter and intra-firm relationships through innovations in technology. AGILE MANUFACTURING: Tools. ABC categories are often used in specifying the amount of attention and control paid to specific items. but also includes the ability to quickly reconfigure operations -. B and C class materials are planned differently and perhaps as runners. originating from the Japanese word for 'lamp'. information. it also incorporates "mass customization" concepts to satisfy unique customer requirements. A means of thriving in an environment of continuous change. It can be that A. A Class D is sometimes used for obsolete or non-moving items. energy.) These resources include floor space. Continuous waste elimination and problem solving through kaizen are only possible when the abnormalities are visible.

ASSEMBLE TO ORDER: An environment where a product or service can be assembled or provided upon receipt of a customer’s’ order. See Pull System. etc. the Japanese expression for quality is atarimae hinshitsu. Japanese culture intrinsically values quality and appreciates the small details. Autonomation was pioneered by Sakichi Toyoda with the invention of automatic looms that stopped when a thread broke. AUTONOMATION: Machines are given ‘human intelligence’ and are able to detect and prevent defects. See Andon. allowing an operator to manage many looms without risk of producing large amounts of defective cloth. See Andon. ARUBEKISUGATA: The State Things Should Be In (the ideal) as defined by the principles of the Toyota Production System (Just in Time.ANDON BOODO: Andon Board (a board with sections that light up to advise the status of areas. ATOHOJUU: Replenish. Leveled Production. equipment. asking for help.).). etc. Machines stop autonomously when defects are made. One of four steps in TQM. processes. THE LEAN. The product will usually consist of a number of modules that are assembled to the highest level possible and stored such that when the order arrives. Pull and Replenish ATOKOUTEIHIKITORI: Pull. which can be roughly translated as "taken-for-granted quality" or “quality that is expected”. Pull System (literally “the next process pulls and takes”). In fact. Autonomation is a pillar of the Toyota Production System. it can be assembled quickly and to the customer’s specification. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 30 OF 107 . Quality in Station. See Monotojouhounonakarezu. One of the four steps of TQM. See Jidoka. See Material and Information Flow. ATARIMAE HINSHITSU: Focusing on intangible effects of processes and ways to optimize and reduce their effects. ANDON KOODO: Andon Cord (the cord operators pull when problem are discovered on a moving line). AUTO-EJECT DEVICE: See Hanedashi.

Machine Availability (100% is ideal because nothing should ever prevent a machine from being available for planned production) THE LEAN. Can be used to balance work for operators or machines in order to achieve improvements in flow. etc. as well as being prevented. Contrast Flow Production. BEKIDOURITSU. equipment. the term "poka-yoke" is sometimes referred to as a system where only a warning is provided. The aim of back flushing is to reduce the number of non value-added transactions.This illustration shows how a limit switch stops Operation #10 when the transfer conveyor has five pieces. BALANCE CHART: A bar chart or histogram that illustrates work content per operator. AUTOMATIC TIME: The time when a machine is running on auto cycle and a person does not needed to be there to operate the machine. Kadouritsu. BAKA-YOKE: A manufacturing technique of preventing mistakes by designing the manufacturing process. B BACK FLUSHING: A method of recording accounting transactions for labor and materials based on what was shipped rather than by using material issues or cards. AVAILABILITY: See Bekidouritsu. oven cycles. an attempt to perform incorrectly. is usually met with a warning signal of some sort. wash cycles. See Poka-Yoke. KADOURITSU: Operational Availability. and tools so that an operation literally cannot be performed incorrectly. Commonly used for NC machine cycles. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 31 OF 107 . BATCH AND QUEUE: Typical mass production method such that a part going through a system will be produced in large batches to maximise “efficiency” and then sit in a queue waiting for the next operation.

Bin count can be set high enough to preclude any chance of ever running out. Breakthroughs represent a significant change for the organization providing a significant competitive advantage. Being off the forecast/MRP system. The more expensive parts may incur some inventory carrying cost. BROWNFIELD: An existing and operating production facility that is set up for mass-production manufacturing and management methods. Contrast to Milk Run (collections). but that should be outweighed by savings in purchasing. thus avoiding work stoppages. The breadtruck parts are not so "attractive" as to create a significant pilferage problem. Of course. Contrast Greenfield. and almost any small. etc. materials overhead. BOTTLENECK: A process in any part of the enterprise (office. BREADTRUCK RESUPPLY: The "lowest hanging fruit" in material logistics is the breadtruck delivery system for small. Instead of counting on sales forecasts to trigger an MRP system to generate purchase orders. resistors. inexpensive parts. See Seiban.) that limits the throughput of the whole process. inexpensive part. BUILD TO ORDER: A production environment when a product or service can be made and assembled after receipt of a customers order. all the small. However. Manual reorders are not anticipated to occur. Visiting or interviewing peers to learn from what they have done. Many suppliers welcome such business and want to perform well. All the MRP/purchasing expense is eliminated and this type of delivery can assure a constant supply of parts. the supply of these parts can be assured for "forecast-less" operations such as Build-to-Order. capacitors. production. Criteria for Breadtruck Deliveries: • • • • • A reliable supplier can be contracted. expediting. sales. The factory could alert the supplier about any anticipated "spikes" in demand. and avoiding work stoppages. • BREAKTHROUGH OBJECTIVES: Objectives that are ‘stretch goals’ for the organization. THE LEAN. making breadtruck parts freely available for R&D prototypes and factory improvements may encourage innovation. part standardization helps here Parts are small enough and cheap enough so that sufficient parts will always be on hand. As companies become more agile. since they usually get all the business for their categories of parts and raw materials. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 32 OF 107 . inexpensive parts can be made available in bins at all the points of use. Establishing standards for improvement based on what others have been able to achieve. The supplier should be in a continuous improvement mode and be constantly adjusting bin count to correspond to prevailing demand. A local supplier is contracted to simply keep the bins full and bill the company monthly for what has been used. BULLWHIP EFFECT: Alternative name for demand amplification. companies do not correlate part consumption with product sales. Typical parts suitable for breadtruck deliveries are fasteners. Breakthrough goals are achieved through multi-functional teamwork. Parts are not likely to go obsolete or deteriorate while waiting to be used. much like the way bread is resupplied by the breadtruck in a small market. they may include slightly more expensive and slightly larger parts into the breadtruck system. Parts can be distributed at all points of use. since. generally.BENCHMARKING: Comparing key performance metrics with other organization in similar or relevant industries.

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where operators work within the cell and materials are presented to them from the outside of the cell. Often. Discipline and Ongoing Improvement . cellular manufacturing has not taken into account waste elimination or Standard Work principles. when whole-system analysis is performed. See Labour Linearity. CEDAC: Acronym for Cause and Effect Diagram with the Addition of Cards. Ishikawa Diagram). and analysis are thrown like a ball. ideas. CEDAC is a method for involving team members in the problem solving process. Arranging. circa 1922. See 5S. CELLULAR MANUFACTURING: An alignment of processes and equipment in correct process sequence. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 34 OF 107 . Neatness. A series of discussion between managers and their employees during which data.VARiable Work in Process (C-VARWIP) is the synthesis to both Push (first generation) and Pull (second generation) production control systems when the system is taken as unitary. CATCHBALL: A process used in Hoshin Planning to communicate vertically to obtain consensus on the Means that will be used to attain each Breakthrough Objective. CAUSE AND EFFECT DIAGRAM: A problem solving tool used to identify relationships between effects and multiple causes (also Fishbone Diagram.C-VARWIP: Circular . CANDO is an industrial housekeeping program developed by Henry Ford. CAPITAL LINEARITY: A philosophy linked to capital expenditure on machinery such that a small amount of additional capacity can be added by using a number of smaller machines rather than one great big and very expensive machine. CANDO: Cleanup. This opens productive dialogue throughout the entire company. THE LEAN. and therefore greater savings have not been realized.A precursor to 5S.

CFM: See Continuous Flow Manufacturing. batch and queue) to Future State (Lean Enterprise). See Dandorigae. preparing. warm up. CHANGE MANAGEMENT: The process of planning. Changeover time includes set up. CHANGE AGENT: Someone whose objective is to help cause the transformation from Current State (traditional manufacturing. etc. Materials .Reduce waste due to offcut. Labor . products. Idle Materials . and processes. and implementing of a cultural change in an organization.Look for ways to reduce power requirements. Muda. The machines eject the finished parts automatically using hanedashi. Time . AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 35 OF 107 . Overproduction . Defects . Junjidangae. See 7 Wastes.g.Continually reduce the amount of space required.Continually reduce the amount of labor required to perform tasks. resource allocating. THE LEAN. adjustment.Increase the quality of processes. first piece inspection. CLOSED MITT: An acronym to expand on the 7 classic wastes.Design complexity out of work systems. Dangae. Kuukinagashi. CHANGEOVER: The time from when the last good piece comes off of a machine or process until the first good piece of the next product is made. educating.Do not produce more than the customer demands. Energy .Keep materials moving through the system. Complexity . e. CHAKU-CHAKU LINE: A production line where the only human activity is to 'chaku' or 'load' the machines. trial run.Reduce the travel distance of materials from dock to dock.Increase throughput. Transportation . spoilage. Someone who leads the cultural change in an organization. so that the operators do not have to wait. Space .

The process is managed by a leadership team. and strategic master plans are developed and implemented for each operation. THE LEAN. manufacturing requirements. 4) Once the manufacturing network. To that extent it is a clever implementation of Kanban principles and Theory of Constraints. and calls for an ongoing examination and improvement efforts which ultimately requires integration of all elements of the production system.COMBINE. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 36 OF 107 . CFM is a process for developing improved workflow using team-based problem solving. an overall manufacturing network must be configured. the supporting information flow. a higher product quality. The information systems will drive the manufacturing continuous flow process and will interface with all of the organization's business systems. lower overall development cost and lower product or service unit cost. and measure the cultural and physical process. its production process. In its simplest form. Manufacturing that takes place in a work center that is organized according to similar manufacturing processes. the process of continuous improvement must be installed Continuous flow manufacturing (CFM) is a system's approach to total system improvement. and its delivery mechanism at the same time. Continuous flow manufacturing is the opposite of job shop manufacturing Continuous flow manufacturing encompasses four basic elements: 1) Based upon customer requirements. 2) Manufacturing requirements are identified. CONTINUOUS FLOW MANUFACTURING: Continuous Flow Manufacturing (CFM) was developed by the IBM Consulting and is a system that allows the management of bottlenecks of a line and implement a continuous improvement strategy aimed towards bottlenecks elimination. CONCURRENT ENGINEERING: Designing a product (or service). List sometimes also includes rearrange. These teams manage cultural change. and information and management systems are in place. 3) Information and management systems for the manufacturing process and operations are assessed. identify and implement process flow requirements. The benefits include shorter development time from concept to market. on-time and defect-free production. See Nagara. It is a manufacturing strategy that produces a part via a just-in-time and kanban production approach. which consists of three subteams. purchased and implemented. SIMPLIFY: Basic tools of method study and cornerstone of improvement operartons. The goal is an optimally balanced production line with little waste. defined. ELIMINATE. Often used interchangeably with Lean Manufacturing. usually by linking dissimilar machines. The entire organization is trained in process improvement and cultural change tools to facilitate the transition to a continuous flow manufacturing environment. Concurrent engineering requires up-front planning and dedicated resources early in the early stages of development. the lowest possible cost.

and greater value to society. CONTROL CHART: A statistical problem solving tool that indicates control of a process within established limits. CONSTRAINT: See Bottleneck. • CONTINUOUS IMPROVEMENT: The never-ending pursuit of waste elimination by creating a better workplace. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 37 OF 107 .Some advantages of continuous flow manufacturing: • • • • • • • • • Improved customer service Improved retention and reduced absenteeism Improved quality control and elimination of waste Improved materials handling practices and production process layout Improved scheduling and reduced flow time and costs Reduced in-process inventory and improved inventory control Increased utilization of capacity (decrease in machine maintenance) Reduced set-up times Elimination of non value-added tasks Improved safety practices. better products. THE LEAN.

POLCA. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 38 OF 107 . appraisal. Also see Kanban. (i. See Noritsugiunpan. plating. This may be done to change type of conveyance. circulation of kanban in red. The origin of this idea came from the design of lathes and machine tools with the chucks on the left side. Movement of parts shown in blue. curing oven. COUNTERCLOCKWISE FLOW: A basic principle of Lean manufacturing cell layout is that the flow of material and the motion of people should be from right to left. Categories of cost include prevention. CONWIP: A pull technique adopted to high-mix low volume environments. This control system is implemented by means of kanban cards. and failure. COST OF POOR QUALITY: Costs associated with supplying a poor quality product. or to sort material intended for different destinations. Movement of parts shown in blue. See Cellular Manufacturing. where it will be attached to another job to be processed. the attached card is released and is sent to the beginning of the line. CONWIP control. or to combine material from different origins. 1990(CONstant Work In Process) production control system tries to maintain constant the maximum amount of work in process in the system. When a part is shipped to the system.CONTROL ELEMENT: Any specific process variable that must be controlled. One kanban card is attached to a job from the beginning of the line. or counterclockwise. CURTAIN EFFECT: A method that permits the uninterrupted flow of production regardless of external process location or cycle time. Categories of cost include internal and external failure costs. COST OF QUALITY: Costs associated with supplying a quality product. wave solder) Curtain quantities are established using the following formula: THE LEAN.. making it easier for right-handed people to load from right to left. Normally used when product must leave the cell for processing through equipment that cannot be put into the cell. with little or no storage in between. Hybrid CONWIP/kanban control. CROSS DOCKING: A practice in logistics of unloading materials from an incoming semi-trailer or rail car and loading these materials in outbound trailers or rail cars. The maximum work in process equals the total number of cards in the system. and release authorizations in green. The measurement of a control element indicates whether the process is operating under stable conditions.e. Drum-Buffer-Rope. circulation of release authorizations in green. heat treat. The Conwip –Spearman et al. COUNTER MEASURES: Actions taken to bring less than expected results of a process back up to targeted levels.

etc. DEMAND LUMPING: A phenomenon in which an otherwise smooth flow of demand up a supply chain is grouped into larger chunks than is necessary to meet operational requirements. See Saikurutaimu. DESIGNED FOR MANUFACTURING AND ASSEMBLY (DFMA): A way of improving cost. See Nichijo Kanri. forward buying. Also referred to as touch time or hands-on time. BUFFER and ROPE are: • • DRUM . DATSU-CHAKU: Japanese term meaning “Unload/Load” used to tell the traditional way of component loading on a machine/equipment. See SMED. DbFM: See Demand-based Flow Manufacturing. DANDORIGAE. rather than forecast driven. Set-up Change (of tools. DEMAND-FLOW MANUFACTURING: Demand-flow manufacturing is customer-driven. a body of thought developed by Dr.A protection against Murphy. DRUM-BUFFER-ROPE: Drum-Buffer-Rope (DBR) scheduling is the manufacturing application of the Theory of Constraints. The root origin for DbFM is in the lean production methods first developed and remarkably well practiced by Toyota. DEMAND AMPLIFICATION: The tendency for fluctuations in demand to increase as they move up the supply chain. This is the time provided for parts to reach the protected area. It is known to be caused by batching. D DAILY MANAGEMENT: The day-to-day activities that are required to serve the customers and ensure that the business is generating profit. THE LEAN. DOWNSTREAM PULL SYSTEM: See Pull System. Eliyahu Goldratt. to enable the production of a variation of a product on the same machine or line). Instead of producing in long runs and large batches. the due-dates and the assemblies of constraint parts with non-constraint parts. demand-flow lines create a variety of items each day. keyed to direct customer orders. inventory and operating expenses.Per unit Cycle Time of Curtain Process ÷ TAKT Time = Curtain Quantity CYCLE TIME: Cycle time is the time it takes to do one repetition of any particular task. This terminology is usually compared with "Chaku-Chaku". DESIGN OF EXPERIMENT: Planning and conducting experiments and evaluating the results. DAYS SUPPLY OF INVENTORY: Total number of days (if the production level equals zero) that it would take to deplete finished goods inventory for the specified product line. DEMAND-BASED FLOW MANUFACTURING: Demand-based Flow Manufacturing (DbFM) has demonstrated its success as a high velocity order-to-delivery strategy and process. quality.A schedule for releasing raw materials to the floor. and safety of the manufacturing and assembly processes by design. The protected areas are the Drum. then storing products until they are sold. The Rope is derived according to the Drum and Buffers. and hoarding. The outcome of a design of experiment includes a mathematical equation predicting the interaction of the factors influencing a process and the relevant output characteristics of the process. Often used interchangeably with Lean Manufacturing. Demand lumping is a major contributor to demand amplification. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 39 OF 107 . 2) machine cycle time. BUFFER . Contrast Chaku-Chaku. and 3) auto cycle time.A schedule for the constraint. Cycle time can be categorized into 1) manual cycle time. DOE: See Design of Experiment. DBR controls the flow of materials through the plant in order to produce products in accordance with market demand with a minimum of manufacturing lead time (MLT). The DBR logistical system is a finite scheduling mechanism that balances the flow of the system. its mission is to ensure the proper subordination of the non-constraints. The definitions of DRUM. DANGAE: Changeover. Often referred to as the bullwhip effect in recent literature. • ROPE . dies.

DSI: See Days Supply of Inventory. etc. ENGINEER TO ORDER: Products whose customers specifications are unique for each order therefore each product is engineered from scratch upon receipt of an order. Thoroughly understanding the elements of work is a key first step to lean thinking. For instance. EPEI is the lot size expressed in time. The calculations of takt time and the EPE Interval are the most important calculations involved in setting up a lean execution system. days. EVERY PART EVERY INTERVAL (EPEI): EPEI stands for Every Part Every Interval. ELEMENTS OF WORK: The elements of work are 1) value-added work. The EPE Interval determines how often each item can be produced without exceeding available capacity and with the smallest possible lot size.) “Every Part Every X” indicates the level of flexibility to produce whatever the customer needs. weeks. THE LEAN. EVERY PART EVERY: Measured in terms of time (hours. E EFFICIENCY: See Shinnonouritsu. Knowing the EPEI helps determine the manufacturing lot size and supermarket quantities for each part produced in a manufacturing process. months. The EPEI is the time it takes to run through every regular part produced in a process. Fundamental concept to lean manufacturing. EPE: See Every Part Every. and 3) waste. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 40 OF 107 . 2) non value-added work. Every Part Every day would indicate that changeovers for all products required can be performed each day and the products can be supplied to the customer. as well as the number of kanban cards in the replenishment loop.

This system is also a hybrid combination of Kanban system and Base stock like the Generalized Kanban system. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 41 OF 107 . Examples are collecting tools. The main difference between Extended Kanban and Generalized Kanban is that in the former. The aim is to identify possible failures and implement corrective actions to prevent failures. F FAILURE MODES AND EFFECTS ANALYSIS (FMEA): A structured approach to determining the seriousness of potential failures and for identifying the sources of each potential failure. Base Stock. Moving set-up activities from internal to external in order to reduce machine down time is a central activity of set-up reduction and SMED. the customer demand signal is instantaneously transferred to all stations. Drum-Buffer-Rope. the next piece of material. EXTERNAL SET-UP: All set-up tasks that can be done while the machine is still running.EXTENDED KANBAN: An alternative to single Kanban in dynamic environments. CONWIP. Also see Kanban. See Sotodandori. THE LEAN. while in the latter it is a non-instantaneous process (Dallery and Liberopoulos. 2000). preparing or fixtures.

FIRST IN FIRST OUT: Also known as FIFO. FLEXIBLE WORKFORCE: See Shojinka. See Teiichiteishihoushiki. FLOW CHART: A problem solving tool that maps out the steps in a process visually. was introduced in 1991 by US government-sponsored research at Lehigh University. FLOW: See Nagareka. See Agile Manufacturing. quickest possible increment THE LEAN. FIXED-POSITION STOP SYSTEM: A problem addressing method on continuously moving production lines such that if a problem is identified and not resolved before a fixed point. rather than in large batches. FIFO: See First-in First-out. lots or mass processing. Seen by some as the next major framework for world-class manufacturing. FINISH TO ORDER: An environment such that products are built to as higher level as is possible and then configured to customers requirements upon receipt of order. The goal of FIFO is to prevent earlier orders from being delayed unfairly in favor of new orders. a system of keeping track of the order in which information or materials need to be processed. the production line will stop. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 42 OF 107 . FLOW PRODUCTION: A way of doing things in small quantities in sequential steps. Product (or service) moves (flows) from process to process in the smallest. also referred to as Agile Manufacturing. The flow (or lack thereof) becomes evident and the wastes and redundancies are identified.FAST AND FLEXIBLE MANUFACTURING: The concept of Fast and Flexible Manufacturing.

FREQUENT RUNS: See Takiumpan. and fixtures that are the focus of kaizen activity." or the place where you work to create value. FUTEIKI: Unscheduled Time (one of the 4 possible conditions of delivery. In manufacturing this is the factory. The tools. FUTEIRYOU: Unscheduled Quantity (one of the 4 possible conditions of delivery. the Gemba will be a different place. See 3 Gen Principle. FUNCTIONAL LAYOUT: Traditional plant layout grouping similar machines together. FMEA: See Failure Modes and Effects Analysis. See 3 Gen Principle. Also spelt Genbutsu. meaning that there is no attempt to define the quantity of material that is to be delivered on a run). materials.(one piece). machines. Contrast Teiryou. THE LEAN. Contrast Teiki. See One-Piece Flow. meaning that there is no attempt to create a fixed schedule for delivery runs). parts. Also spelled Genba. Only acceptable quality products or services are accepted by the downstream customer. G GEMBA: is a Japanese word meaning "actual place. GEMBUTSU: Japanese for 'actual thing' or 'actual product'. In each industry. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 43 OF 107 .

such systems are not applicable to production environments with dynamic characteristics. and the actual things that are in question. and it is a tool used to assess them. Generalized Kanban (Buzacott. Kanbans have shown successful results in lowering inventory and shortening lead time in repetitive production systems. GRPI: GRPI stands for four critical and interrelated aspects of teamwork: goals. parts and assemblies. GENCHI GENBUTSU: Genchi genbutsu means “see for yourself” or “go and see”. The word is often used in a factory context. GREENFIELD: A new production facility where lean principles are designed into manufacturing and management systems from the beginning. genbutsu is also spelled “gembutsu”. Here a modified kanban system. and interpersonal relationships. 1995) is a hybrid combination of the Kanban system and Base Stock and results similar to Extended Kanban. A manager should not remain sequestered in an office. GO ESU: Japanese for 5S. Contrast with hoshin kanri. processes. 1989 or Frein et al. Also see Product Families. roles. manufacturing. It then groups similar items to simplify design. CONWIP. Ungrouped Parts Grouped Parts THE LEAN. See 3 Gen Principle.GENBA KANRI: Workplace management: the system by which standards for running the day-to-day business are established. POLCA & Drum-Buffer-Rope. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 44 OF 107 . maintained controlled and improved. See 5S. observing processes and interacting with workers. Japanese managers are therefore encouraged to spend time on the factory floor. GROUP TECHNOLOGY: Group Technology examines products. See 3 Gen Principle.. the fundamental attitude necessary for successful management and problem solving – ie All solutions lie in careful observation of actual materials and the actual conditions under which they are handled. The figures below illustrate how an apparently random collection of items has surprising similarity. is proposed for such dynamic environments. 1989. Zipkin. Contrast Brownfield. the generic kanban system. GENERIC KANBAN / GENERALISED KANBAN: A kanban system designed for non-repetitive manufacturing environments. The basic idea is that as a decision-maker. Also see Kanban. The actual place and the actual thing (where something is or happens. you can’t make a judgment about a situation before you have actually seen the conditions with your own eyes. The actual facts or the reality of what is happening on the shop floor and in the business. Unfortunately. relying on the reports of subordinates. The generic kanban system behaves similarly to the push system except that it is more flexible with respect to system performance and more robust as to the location of the bottleneck. GENJITSU: Japanese for 'the facts' or 'the reality'. purchasing and other business processes.

deep reflection. In a nutshell. See Leveling. the improvements are fed back into the organization and disseminated. hence the name “hire system”). this concept is about reflecting on mistakes/weaknesses and devising ways to improve.H HAIYAAHOUSHIKI: On Call Delivery (the delivery vehicle is stationed in a specified place and awaits a request for conveyance . As hansei is utilized.” as if the worker at such a site were marooned and cut off from normal factory activity). Without Hansei. Hansei is a concept that Toyota uses as a practical improvement tool like Kaizen. The third step in the PDCA Cycle. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 45 OF 107 . HANSEI: Relentless. See Isolated Island. HANEDASHI: Auto-eject devices that unload the part from the machine once the cycle is complete. THE LEAN. Frequent reviews at key milestones and after completing a project to openly identify all shortcomings of the project. Hanedashi is a key component of chaku-chaku lines. HANDS-FREE: See Tebanare. This allows the operators to go from one machine to the next without waiting. Toyota actually conducts Hansei events (like Kaizen events) to improve products and processes. A Japanese term that means to reflect on one's failings or misdeeds. picking up and loading parts. HEIJUNKA: Refers to keeping the total production volume and mix as constant as possible. with the idea that this self-reflection will cleanse the individual and result in self-rehabilitation. Then develop countermeasures to avoid the same mistakes again. you cannot have Kaizen.similar to a limousine for hire. HAMIDASHIHIN: Overflow Parts HANAREKOJIMA: Isolated Jobsite (original Japanese is analogous to the expression “deserted island. also referred to as “standardized worrying”.

beneficial changes to the system until no further improvements appear to be possible. It is often used to reveal the variations that any processes contain. Contrast to Vertical Handling. Horizontal handling does not benefit flow. HINSHITSU HOZEN: Quality Maintenance HISTOGRAM: A problem solving tool that displays data graphically in distribution. this is called horizontal handling. The objectives and means to achieve the objectives are cascaded down through the entire organization using a series of linked matrices.” or “less than 10 minutes”) HORIZONTAL HANDLING: When tasks are assigned to a person in such a way that the focus is on maximizing a certain skill set or use of certain types equipment. HITOKETA: Single Digit (referring to times measured with no more than single digit numbers. HOSHIN KANRI: A method of policy deployment and strategic decision making that focuses and aligns the organization on a few vital “breakthrough” improvements.HILL-CLIMBING: A technique used to search for a superior configuration of a system such as a supply chain by making a series of small. The process is self-correcting and encourages THE LEAN. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 46 OF 107 . can mean “less than 10 seconds.

HYOUJUNSAGYOU: Standardized Work (work procedures posted on site that define the takt. See Standardized Work Combination Chart. the sequence of operation. IKKONAGARE: 1 Piece Flow (each station of a line completes its work on only 1 piece at a time. weather) or confirming appointments. there is no batching). and finished goods that are not yet sold to a customer.g. etc. arriving late at work (train. Hourensou is a Japanese word made up of three parts: hou (houkoku -. INTERNAL SET-UP: Set-up tasks that can only be done when the machine is stopped. To serve some of the genchi genbutsu functions. Communication. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 47 OF 107 . Standard Work in Process (should be no more than 1. and waiting time. See One Piece Flow. and the standard in-process stock).to report). THE LEAN. See Uchidandori. purchased parts. which is common within top Japanese companies. HYOUJUNSAGYOU KUMIAWASEHYOU: Standardized Work Combination Chart (a Gantt chartlike tool which illustrates standardized work as a combination of manual task time. After as many of the internal tasks have been externalized as is possible.to give updates periodically. the remaining internal changeover time is reduced through use of quick-change mechanisms.to consult or advise). HYOUJUNTEMOCHI: Standard In-Process Stock. senior management uses hourensou. Contrast Genba Kanri. and consulting with your superior or a colleague if something is not understood. changing the tools. inventory is all raw materials. give updates when e. all against the takt). automated work time. INVENTORY: A major cost for most businesses. ren (renraku -. inform) and sou (soudan -.organizational learning and continuous improvement of the planning process itself. discussion and learning process from management. or making adjustments. In some cases inventory may include consumable goods used in production. literally “standard. I IJO-KANRI: See Abnormality Management. HOURENSOU: Trusted advisor. walk time. or what you observe. about the next task. See Standard Work in Process. See Policy Deployment. INTELLIGENT AUTOMATION: See Autonomation. work-in-process components. It entails reporting what you do. See Standardized Work. Examples are changing the fixture. onhand piece”). Hourensou forms the basis of good communication on the shop floor.

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it refers to developing a creative approach to problem solving. JISHU HOZEN: Autonomous maintenance. JIT: See Just-in-Time Production. which suggests that sometimes being too close to a problem prevents a person from objectively seeing what is wrong. only in the quantity needed (i. Automatic unloading 4. JISHUKEN: Literally translates to “a fresh set of eyes”.e. inventory turns are measured as total throughput divided by average level of inventory for a given period. This ratio measures how many times a company's inventory has been sold during a period of time. Reducing holding cost increases net income and profitability as long as the revenue from selling the item remains constant. and only at the time needed). The five steps of Jidoka are: 5. Process improvement engineers going into suppliers are sometimes described as "jishuken teams". JISHU KANRI: Self-management. When applied to TPS.a "fresh pair of eyes" approach to kaizen to complement the improvement ideas of those carrying out production tasks day-by-day. In business management. 1 at a time). utilities. The organization spends less money on rent. Outsiders (for example.INVENTORY TURNS: The cost of goods sold divided by the average level of inventory on hand. Automatic stop 2. An item whose inventory is sold (turns over) once a year has higher holding cost than one that turns over twice. The real purpose of inventory reduction campaigns is to increase inventory turns. utilizing autonomous study groups. which leads to building isolated islands of improvement instead of improving the whole production flow to reap the biggest benefits. JIDOKA: See Autonomation. or three times. Automatic return to home position 3. JIT (arrival of needed items only. or more in that time. but actual takt time is derived from calculations that factor in real-world issues). Automatic processing JIKKOUTAKUTOTAIMU: Actual Takt Time (takt time is derived strictly from net working time divided by the number of units ordered for that time. Automatic feed 1. J JASUTOINTAIMU: Just in Time. and other costs of maintaining a stock of good to be sold. Kaizen with outside help . THE LEAN. See Just in Time. See Hanarekojima. See Takt Time. insurance. inventory turns (IT) measures the number of times capital invested in goods to be sold turns over in a year. Items that turn over more quickly increase responsiveness to changes in customer requirements while allowing the replacement of obsolete items. for three reasons. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 49 OF 107 . • • Increasing inventory turns reduces holding cost. Operationally. from a customer) help the production team to eliminate waste. • ISOLATED ISLANDS: The result of a common mistake of cherry-picking lean techniques. or voluntary participation.

and machinery.JUNBIKI: Pick in Order of Use (as in material delivery systems that gather and deliver parts in consideration of the sequence in which they are to be used according to Standardized Work). JUNJIDANGAE: Rolling Changeover. literally meaning “tour”. See Milkrun. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 50 OF 107 . Rolling Set-up Change (changeovers of equipment along a production line performed in succession according to the sequence of the use of the equipment in production so as to minimize production line downtime). See Jasutointaimu. Flow production. using minimal resources of manpower. The three elements to making Just-in-Time possible are Takt time. JUNKAI: Japanese for milkrun. JUST-IN-TIME PRODUCTION (JIT): A production system to make what the customer needs when the customer needs it in the quantity the customer needs. and the Pull system. material. THE LEAN.

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JUTSU: The art of something (i.e., 'leanjutsu: the art of lean production').

K
KADOURITSU: Operation Rate, Utilization Rate (the time a machine is capable of working products divided by the time it actually works the products). KAI-AKU: The opposite of kaizen. Change for the worse. Bad change. Contrast Kaizen. KAIKAKU: Radical improvements or reform that affect the future value stream. Often these are changes in business practices of business systems. KAIKAKU HOZEN: Planned maintenance. KAIZEN: Japanese for 'change for the better' or 'improvement'. A business philosophy of continuous cost reduction, reduce quality problems, and delivery time reduction through rapid, team-based improvement activity. Kaizen means breaking apart the current situation, analyzing it, and quickly putting it back together to make it better. Contrast to Kai-aku. The Kaizen concept consists of four elements:
• • • • Quality Effort Willingness to improve Communication

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KAIZEN NEWSPAPER: A tool for visually managing continuous improvement suggestions. Based on the PDCA cycle and designed to manage input by the workforce in an organized way. KAMISHIBAI: Literally "Paper Drama" - Way of using cards to tell and track a story. Often cards in slots to show process status visually. KANBAN: A Japanese word for 'sign', cometimes spelled kamban, Kanbans are typically a re-order card or other method of triggering the pull system based on actual usage of material. Kanbans are attached to the actual product, at the point of use. Kanbans are cards that have information about the parts (name, part number, quantity, source, destination, etc.) but carts, boxes, and electronic signals are also used. Squares painted on the floor to indicate storage or incoming areas are frequently, but mistakenly, referred to as kanbans.
What is Kanban? The literal meaning of the word “kanban” in Japanese is “sign board” like you would see in front of a store or on an office building. In the narrow definition of kanban for Lean manufacturing it is a card that contains information about the lot size, the process, the quantity, the location, etc. of the material. Kanban are used to signal production and link disconnected processes. A kanban system is made up of a set of rules for calculation of kanban quantities, routes for withdrawal of kanban and delivery to kanban posts, the cycle of kanban collection and delivery, and the material replenishment lead-times to support production at minimum safe inventory levels. The Four Functions of Kanban Kanbans provide an “autonomous nervous system” for your factory. When kanban cards are withdrawn and cycle back to the production process this creates a flow of information, “parts sold”. When the production kanban is placed in the producing process it is the signal, “produce part”. Kanban cards themselves tell the process how much of which types need to be produced. A second function is to the limit overproduction. Only kanban can start production and the quantity produced is strictly regulated by the quantity on the cards. In a properly designed and functioning kanban system overproduction does not happen. The third function is visual management. In typical material flow and information flow in a factory, information arrives first and the material catches up later. In kanban systems the information (in the form of a kanban card) is attached to the actual parts or containers the cards are visual controls showing what is produced in what sequence. The fourth and most important function of a kanban system is kaizen through reduction of number of cards. Each card represents a certain number of pieces of inventory in the system. Each card removed forces you to connect processes, reduce changeovers and lot sizes, improve yields, etc. to reduce inventory. This continuous reduction of kanban cards can be a good measure of your progress in Lean. Removing kanban cards from the loop reduces inventory. This exposes problems such as part shortages and line stops because there is less safety stock to hide them. Many organizations implement kanban but do not continuously reduce changeover times and lot sizes, improve quality, and continuously take our cards from the system. This often results in increasing inventory over time, even the addition of extra cards. The Best Kanban is No Kanban Where you see kanban, there is inventory. Kanban by itself is not Lean. The goal of Lean is to reduce waste by connecting all processes one-to-one. When this is not possible, kanban is a method to link lot production and one-piece production. Kanban is an enabler of flow where processes are disconnected. The best kanban is no kanban. Kanban helps you replenish material in a logical and controlled way while giving you a method of challenging inventory levels and improving the production system continuously Rules of Kanban The rules for Kanban systems seem very are simple, but they are actually very strict: • • • • • • • • Operation - the consuming process should withdraw the necessary products/units from the supplying process in the necessary point in time using a Kanban signal. Kanban Cards - if used, always accompany containers from the supplier until removed from the Kanban staging area, thus ensuring visual control. Each Container must have a Kanban card, indicating part-number and description, consumer and producer location and quantity. The Parts should always be pulled by the succeeding process (Consumer). No Parts are produced without a Kanban signal. No Defective parts may be sent to the consuming process. The Producer can only produce the quantities withdrawn by the consuming process. The Numberof Kanbans should be properly calculated, minimized, monitored and reduced..

Types of Kanban
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• • •

Production Kanban: A signal that specifies the type and quantity of product that an upstream process must produce. Signal Kanban: A signal that triggers an upstream process to produce, when a minimum quantity is reached at the downstream process. Withdrawl Kanban: A signal that specifies the type and quantity of product that the downstream process may withdraw.

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KANSEI: Examining the way the user applies the product leads to improvement in the product itself. and number of deliveries by which a kanban card will return with its material). The method was invented in the 1970s by Professor Mitsuo Nagamachi. KANBANSAIKURU: Kanban Cycle (the delivery cycle for a given unit of material within a kanban system expressed by 3 numbers: days per cycle. Kansei Engineering is a method for translating feelings and impressions into product parameters.Source: ARC Strategies. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 55 OF 107 . He recognized that companies often want to assess the customer’s impression of their THE LEAN. October 2004 KANBAN CYCLE: See Kanban Saikuru. deliveries per cycle.

Mitsui Group. Mitsubishi Motors.Rejects and Start up Losses THE LEAN. Performance Efficiency and Quality Rate. By breaking down Overall Equipment Effectiveness into it's key elements of Availability. E.particularly in the banking and insurance sector .owners of Subaru). In addition to Toyota Group. construction. KANO TAXONOMY OF CUSTOMER NEEDS: Kano analysis is a quality measurement tool used to prioritize customer requirements based on their impact to customer satisfaction. These groups emerged from the break-up of the holding companies which dominated Japan's pre-war economy. or reactions to product characteristics / attributes: 1. E. 2. we then begin to stratify each category to it's elements: • Availability Issues . E. Fuji Heavy Industries . Finally. there are the 'dissatisfiers'. KOBETSU KAIZEN: Literally: Focused Improvement. 4. electronics. The 'must be' things. One of four steps in TQM. in which many concept studies or designs are generated. A jet airliner that cannot meet airport noise regulations.Minor Stoppages and Speed Losses • Quality Issues .g. such that each firm maintains its operational independence but establishes permanent relations with other firms in its group.is beginning to break up these close relationships. Without this. The 'More is Better'. stated that there are four types of customer needs. Briefly.g. KENTOU: Period of project. Sumitomo Group and the Mitsubishi Group (Bank of Tokyo-Mitsubishi. steel). the Dai-ichi Kangin Group (banking. The 'Surprise & Delight' factors. such as the Toyota Group. the things that cause your customers not to like your product. insurance.products. The keiretsu are groupings of Japanese firms with historic associations and cross-shareholdings. insurance. KEIRETSU: The Japanese term for a type of integration in which a manufacturing firm takes partial ownership positions in key suppliers and appoints its own personnel to some management positions. with cross-keiretsu mergers increasingly common. chemicals and engineering. Mitsubishi Heavy Industries). Typically they will include banking. 3. Keiretsu may involve firms in widely different industries or be vertically integrated. Must Have’s More the Better Delighters KAROSHI: Death from overwork. you'll never sell the product. This is a Kaizen driven for a very specific issue. "Kobetsu" basically means individual or focused. Much-needed consolidation and restructuring . These really make your product stand out from the others. Kano (a Japanese researcher). a passenger jet that could take off vertically.Breakdowns and Changeovers • Performance Issues . a jet airliner that is uncomfortable to ride in. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 56 OF 107 . other important keiretsu are the Fuyo Group (Fuji Bank. Example. in comparison to a broad approach that some Kaizen address. a jet airliner that uses a little less fuel than the competition. Kansei Engineering can "measure" the feelings and shows the relationship to certain product properties.g.

Provide exactly what I want. LEAN LOGISTICS (LL. 4. A Lean Enterprise has a culture that does not tolerate waste of any kind. See Process Capacity Table. money. the lean provider has a "rapid replenishment" system that quickly orders exactly what the customer has just pulled from the shelf. The authors provide an example of a European retailer (Tesco) that provides local convenience stores. transport. which is the price I pay plus my time and hassle). convenience store. 10.KOUTEIBETSU NOURYOKUHYOU: Process Capacity Sheet (a kaizen tool used to calculate if a process or machine has sufficient capacity to meet demand as expressed by takt time). Supply value when I want it. hypermarkets on the periphery. 12. THE LEAN. and repair resources. 1) Focus on the customer. warehouse store. from the time of customer order entry to shipment. 3. maintain. and web-based shopping. supermarkets in the suburbs. The same items from the same suppliers are available at very similar prices. durable purchases and would be willing to share our plans with the producer in return for getting exactly what we want at a future date with a discount. 6. Deliver value where I want it. materials. Provide what is wanted where it's wanted exactly when it is wanted—"Most of us do plan ahead for large. 9. Provide what is wanted exactly where it is wanted—Most customers buy the same things from a variety of formats (supermarket. LEAN MANUFACTURING: A business practice characterized by the endless pursuit of waste elimination. and work together— Rather than providing patches for recurring problems. Solve the customer's problem completely by ensuring that all goods and services work. Provide exactly what the customer wants—Instead of large orders based on centralized forecasts.) at different times. 11. L2): Logistics systems which use the most direct and efficient means to supply. machines. Solve my problem completely. LEAN ENTERPRISE: A Lean Enterprise is an organization that is engaged in the endless pursuit of waste elimination. the six principles of lean consumption are: 7. resulting in earlier orders being perpetually delayed by new orders arriving on top of them. 8." Continually aggregate solutions to reduce the customer's time and hassle—Advances in information technology will provide opportunities to connect bundled goods and services in a cost-effective manner. to get the job done on time. KUUKINAGASHI: Running Air (the capability to perform rolling changeovers in which the changeover of each separate machine is completed within takt time so that the production line fails to produce a product for only one beat of the takt time) L LABOUR LINEARITY: A manning philosophy such that as demand increases or reduces manpower is added one at a time as such manpower requirements are linear to production volume. etc. LEAN CONSUMPTION: Introduced by Womack and Jones in the book Lean Solutions. distribute. midsized stores in town centers. Don't waste my time (minimize my total cost of consumption. Don't waste the customer's time—By focusing on ways to get rid of non-value-added time for the customer. The six principles of lean 5. 2. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 57 OF 107 . From the consumer's perspective. See Capital Linearity. consumption are: 1. A manufacturer that is lean uses the minimum amount of manpower. LEAD-TIME: The time it takes to produce a single product. Reduce the number of decisions I must make to solve my problems. LAST IN FIRST OUT (LIFO): The result of a typical material or information flow system without FIFO. repeat business is much more likely and provider problems will be solved as well. the focus should be on diagnosing and changing systemic issues at their source. The sum of the VA/NVA time for a product to move through the entire value stream. space etc.

What are the 7 wastes? What causes waste? How do we eliminate waste? 3) Do more with less. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 58 OF 107 . How can we increase value? How to waste less resources? How can we do both? THE LEAN.Who are the external customers? What is an internal customer? What is value to the customer? 2) Eliminate the 7 wastes of production.

(1)Waste (2) Continuous improvement (3) Sequencing (4) Stop and notify of defects THE LEAN. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 59 OF 107 .

This is OK. Here are some general principles for lean metrics: • • Keep It Simple: Use metrics that are easy to compile and update. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK . People and Customers. Use Tripwires: Simple metrics may not reveal the problem source. Inventory. The daily or weekly metric only needs to alert you that a problem exists.LEAN METRICS: Lean metrics go beyond traditional financial and accounting measurements. solve problems or motivate people. Quality. They do not help control the process. PAGE 60 OF 107 THE LEAN. Complex calculations or metrics that require excessive work do not get updated or people get lazy and fake the data. Accounting and financial metrics often measure only the end result. The types of metrics and measurement appropriate for a Lean Manufacturing system include Material Handling.

4. Create continuous one-piece flow wherever possible to continuously move material without any stoppages or backtracking. Let the customer specify Value and only design what the customer wants." LEAN THINKING: A 5-step thought process proposed by James Womack and Dan Jones in their 1996 book Lean Thinking to guide managers through a lean transformation. at the right location. often running through a number of organizations. 3. Drill Down When Problems Arise: When a "tripwire" metric indicates a deviation. Only flow product when customers want it. LEAN PRODUCTION: The philosophy of continually reducing waste in all areas and in all forms. LEAN PROVISION: Introduced by Womack and Jones in the book Lean Solutions. Create Value Stream Maps that show the flow material and information to produce a product. Successful lean production is evident when processes are capable of consistently delivering the highest quality products and services. lean provision "comprises all of the steps required to deliver the desired value from producer to customer. they should just signal an alert. Foster an environment of continuous improvement. the Toyota Production System). The steps are: 1. 3.) Let customers pull value (from the next upstream activity). Pursue perfection (by continuously removing wastes). Specify value (from the standpoint of the end customer). processed and analyzed. This may require additional data that is not continually gathered. More than this and the metrics do not get monitored. an English phrase coined to summarize Japanese manufacturing techniques (specifically. 5. 2. 2. you can investigate further to find the source of the problem. The activity of creating processes which are highly responsive and flexible to customer demand requirements.• • Limit The Metrics: Each person or team should have 3-6 daily or weekly metrics. These metrics do not have to contain all the information that the person or group will ever need. These can be further refined as: 1. THE LEAN. 4. Map the flow of value (Identify all the steps in the value stream). Make value flow (Make the value creating steps flow toward the customer. in response to customer demand and doing this in the most cost effective manner possible. 5. at the right time. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 61 OF 107 .

(3) defining the "value stream" current and future.LEAN TRANSACTIONAL: The application of Lean to business processes such as paperwork flow through an office in accounts or marketing. (2) communicating that need for change. THE LEAN. an organization that is engaged in the endless pursuit of waste elimination. (4) identifying those changes which address the need for change and solve the situation at hand (5) developing change plans (6) measuring the results and (7) going back to 1 and starting over. A successful Lean Transformation should result in a Lean Enterprise. LEAN TRANSFORMATION: Developing a culture that is intolerant to waste in all of its forms. The transformation starts with (1) identifying the need for change. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 62 OF 107 .

LOAD-LOAD: See Chaku Chaku. Bullwhip Effect. See Demand Amplification.LESSONS LEARNT: See Hansei. M MACHINE AUTOMATIC TIME: The time it takes for a machine to produce one unit. See Heijunka. or to Commission plans that cause sales people to suggest substitutions that don't fit the strategic or production plans Performance measures that cause people to "finish it before the deadline" (even if we need to sacrifice quality or rework it later) LIFO: See Last In First Out. THE LEAN. This allows for improved flow of demand from the customer and improvements in anticipated demand. reducing the fluctuation of customer demand with the eventual goal of being able to produce any product any day. Level selling techniques help you identify and eliminate schedule-jerkers like: • • • • Sales promotions that accentuate demand cycles rather than smoothing them Commission plans that cause sales people to sell in spurts. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 63 OF 107 . Production leveling allows a consistent workflow. LEVELING: Smoothing out the production schedule by averaging out both the volume and mix of products. not including the manual time to load and unload. LEVEL SELLING: The elimination of sales spikes generated by end of month sales targets at dealers and so forth.

They can be a transition between MRP and ROP approaches and Physical Linkage. The purchase of parts usually involves transporting the parts directly from the vendor to the purchaser’s THE LEAN. The human tasks of operating or loading machines can also be called manual work. without the aid of machinery. MEDEMIRUKANRI: Visual Control (for example: the posting of Standardized Work in front of the operator instead of keeping it in a binder in a desk. In practice Kanban offers a good choice. MENASHINOSHOUJINKA: Designing for Minimal Staffing. Physical Link is the system of choice. The time it takes to do machine work can overlap with manual work. “menashino” refers to the kanji character for “shou” in which the symbol for “eye” is not used. MILK RUN: Reducing transport costs and batch sizes by performing multiple pick up and drops at multiple suppliers using one truck. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 64 OF 107 . The best system is the simplest one. Manning Flexibility (see Shoujinka. taping footprint of items to designate where they are supposed to be placed. Broadcast. MRPand ROP follow in desirability. including the manual time it takes to load and unload. This is used while doing a innovation in process lay out by shrinking the gap between equipment. thus changing “shoujinka” from its usual meaning of “reducing personnel” to “few” or “minimum personnel”) MIERUKA: Implementation of Visual Control.). if the machine is manually operated. See Visual Control. thus saving the floor space and movement of operator / material. Where the process allows.MACHINE CYCLE TIME: The time it takes for a machine to produce one unit. etc. MATERIAL AND INFORMATION FLOW: See Monotojouhounonakarezu. MAZUME: Mazume is a Japanese word meaning "Gap Shrinking". MACHINE WORK: Work that is done by a machine. Kanban. See Mieruka. MANUAL WORK: Work that is done by people. shadow boards. MACRO PRODUCTION CONTROL: There are many methodologies ranging from simple and inflexible to complicated and very flexible.

The exact number of parts needed only when they are needed are collected. What New Consumers are looking. or quality that fascinates. the Target For Now State (see Toumennerau Sugata). Also see Junkai. Also applies to deliveries to a geographically clustered set of Points of Use. more properly translated as "profit-making industrial engineering" MUDA. The fourth and final step of TQM. measuring variables such as appearance. touch that give personality to a product).” although the allusion intended was to a water strider. Contrast to Breadtruck Deliveries. The term “milk run” was taken from the practice of making daily rounds to collect milk from dairy farms. a variation of the Material and Information Flow has come to be known as the “Value Stream Map”). Each product flows at the rate of customer demand. THE LEAN. and the Should Be State (see Arubekisugata). it has 3 versions: the Current State. Broadens management concern beyond the immediate product. sound. See Material and Information Flow. even though mixed products are being made. MOKERU: The Japanese term for the industrial engineering. Pickups of material at a geographically clustered set of suppliers. thus reducing the number of trucks on the road and benefiting the environment. The term “milk run” describes the method of making rounds to parts vendors to collect purchased parts. the term “water spider” came from an attempt to translate into Chinese. MIXED MODEL: Mixed Model flow is making value flow by taking out the waste in your value stream so that multiple products are made in each time period. in which the term for water strider is written with the characters for water and spider) MONOTOJOUHOUNONAKAREZU: Material and Information Flow (a tool to identify the flows of material and information in an operation so as to find where the principles of kaizen are being violated.e. MURA. This is accomplished by making the mixed model flow part perform as if it were a dedicated asset. See San Mu. and. Water Spider. Irregularity (inconsistency) and Overburden (excessive stress and strain). It goes beyond the basics of value stream mapping to create future states in the real manufacturing world of multiple products. MIZUSUMASHI: Fixed Course Pick-up. MIXED MODEL VALUE STREAM: An extention of value stream mapping for more complex environments. literally “whirligig. Water Strider (ongoing line-side material delivery and empty container and kanban pick-up. MIRYOKUTEKI HINSHITSU: The charm of quality (i. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 65 OF 107 .manufacturing plant. varying cycle times and changing demand. MURI: Waste (non value added tasks). See Monotojouhounonakarezu.

MUDA: Japanese for 'waste'. Any activity that adds cost without adding value to the product. A Japanese term, it refers to non-value-added tasks, one of the 3 forms waste. Muda can be further broken down into 2 types:
• • Type I muda: Non-value-added tasks which are essential (see NVAE) under current conditions. Changing these business conditions is required to eliminate this type of waste. Type II muda: Non-value-added tasks which can be eliminated immediately.

MURA: Variations and variability (inconsistency, irregularity) in work method or the output of a process (refers to performing a task inconsistently). MURI: A Japanese term, it refers to excessive stress & strain required to perform a task. Tasks should be designed so that anyone can perform them, regardless of their size, strength, or dexterity. Exertion, overworking (a person or machine), unreasonableness. Overburden. Difficulty. MULTI-MACHINE HANDLING: When a machine operator is running more than one machine of a certain type, this is called multi-machine handling. See Tadaimochi. MULTI-PROCESS HANDLING: When a machine operator is doing tasks for multiple processes sequentially, and this is contributing to the flow of material, it is called multi-process handling. See Takouteimochi. MULTI-SKILLED: See Tanoukou, Tanoukouka.

N
NAGARA: Accomplishing more than one task in one motion or function. Japanese for 'while doing something'. NAGAREKA: Making (a process) Flow, Creating a Moving Line. See Flow Production. NANATSUNOMUDA: The 7 Types of Muda (7 categories of worthless, or non-value-adding activities: Stocking, Overproduction, Waiting, Conveyance, Overprocessing, Motion, Rework - Note that while in certain cases some of these activities may be unavoidable, they do not produce value. See 7 Wastes, Muda. NEMAWASHI: A Japanese expression used to describe the practice of obtaining support and buy-in for change by firstly the idea and then the plan with upper management and stakeholders. Directly translated means “preparing the ground for planting”. NICHIJO KANRI: Nichijo means ‘Daily’. Hence ‘Nichijo Kanri’ means ‘Daily Management’. It is the complement to Hoshin Kanri, covering all the other things. It is usually covered by Business Fundamentals and Implementation Plans. NINJUTSU: The art of invisibility (applies to management) NISUGATA: Packing and Presentation (literally “the state of the cargo,” considering such aspects as how the packed item will be removed and used, elimination of trash, etc.) NORITSUGIUNPAN: Truck Transfer System (a “pick up and drop off” system that allows loading and unloading to take place without forcing the truck or tugger to wait). Also called Cross-Docking. NON VALUE-ADDED WORK (NVA): Activities that may be necessary but do not add value as defined by the customer. Examples are packaging, paperwork, and inspection. Non value-added tasks can create value if their function is to identify and eliminate waste.

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NOURITSU: Productivity (normally translated as “efficiency,” but in the context of kaizen the emphasis is on production of goods that the customer wants and not efficiency for the sake of an isolated process). NVAE: Non-Value Added, but Essential - NVA tasks that must be performed because:
• • • • Current processes or systems require the tasks to be performed Processes or systems require re-design before the tasks can be eliminated There is a specific regulatory requirement There is a specific customer requirement (such as a required inspection)

O
OBEYA: In Japanese means simply “big room.” At Toyota it has become a major project management tool, used especially in product development, to enhance effective and timely communication. Similar in concept to traditional “war rooms,” an Obeya will contain highly visual charts and graphs depicting program timing, milestones and progress to date and countermeasures to existing timing or technical problems. Project leaders will have desks in the Obeya as will others at appropriate points in the program timing. The purpose is to ensure project success and shorten the plan-do-check-act cycle. See Open Room Effect. OEE: Short for Overall Equipment Effectiveness, OEE is calculated based on Availability x Performance x Quality to determine how much of the time a piece of equipment is being used while it is actually making good parts at an appropriate speed. OEE is one of the 5 pillars of TPM. World class OEE is 85%. See TPM.
OEE Factor Availability Performance Quality Overall OEE World Class 90.0% 95.0% 99.9% 85.0%

Overall Equipment Effectiveness Total Production Maintenance (TPM) helps maximize output while minimizing input, through Overall Equipment Effectiveness (OEE). The World Class benchmark for OEE is 85%. Most companies are shocked at how low their OEE truly is. OEE = Availability x Performance x Quality Most organizations measure only Availability as "uptime". When an "uptime" of 85% is multiplied by a performance of 95% (reduced speed) and quality of 95% (scrap) your OEE is quickly reduced to 76.7%. There is the opportunity!

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By establishing optimal machine operating conditions, OEE develops a baseline for root cause analysis of the “6 Major Losses” losses. Availability: Down Time • Equipment failure & breakdowns • Set-up & adjustment Performance: Speed Losses • Idling & minor stops • Reduced speed Quality: Defects • Scrap & quality defects • Startup and Yield

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AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 69 OF 107 .THE LEAN.

ON-CALL DELIVERY: See Haiyaahoushiki. Among the benefits of one-piece flow are 1) the quick detection of defects to prevent a large batch of defects. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 70 OF 107 . Traditional batch production One piece flow THE LEAN. See Nagareka. 3) reduced material and inventory costs. and 4) design of equipment and workstations of minimal size. 2) short lead-times of production. Ikkonagare. ONE-PIECE FLOW: One-piece flow production is when parts are made one at a time and passed on to the next process.

including loading and unloading. See Obeya. often the final assembly cell.) The pacemaker process is usually near the customer end of the value stream. Scheduling at this one point—the pacemaker—results in pulling work from upstream processes and flowing product to the customer through the subsequent processes. PACKING AND PRESENTATION: See Nisugata.OPERATOR CYCLE TIME: The time it takes for a worker or machine operator to complete a sequence of operations. OTED: One Touch Exchange of Dies . AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 71 OF 107 . but not including waiting time. OPERATION RATE: See Kadourisu. the scheduled mix for the day's actual production. A basic concept of lean manufacturing is to schedule at only one point in the overall value stream. This saves space and improves communication between those performing related tasks and creates a sense of teamwork. OPEN ROOM EFFECT: This common practice in Japanese offices involves taking down the walls and cubicles of an office and laying all of the desks out into one big 'open room'. as defined by the heijunka box. corresponds to the finishing schedule. P PACEMAKER: A device or technique use to set the pace of production and maintain takt time. OVERFLOW PARTS: See Hamidashihin. (The pacemaker process should not be confused with a bottleneck process which necessarily constrains downstream processes due to a lack of capacity. PACEMAKER PROCESS: Any process along a value stream that sets the pace for the entire stream. See Takt Time. The planned volume and mix at the pacemaker process typically corresponds to what's known as the master schedule. The process that corresponds to where master production scheduling is done.OTED (frequently used to describe changeovers that do not require adjustments whether they involve dies or not) OVERALL EQUIPMENT EFFECTIVENESS: See OEE. THE LEAN.

remember. stating that 20% of the items account for 80% of the activity (problems.PARETO CHART: A problem solving tool in the form of a vertical bar graph showing the bars in descending order of significance from left to right. DO: Answer the whats. The 80/20 rules comes from the Pareto Principle. etc. HP translates the Business Plans to action plans. This is a basic principle followed for effective problem solving during kaizen. CHECK: On a periodic basis. this is the time to bring management together and provide them with a basic understanding of HP mechanics. meaningful to all levels of the organization. Originally developed by by Walter Shewhart and later adopted by Deming (PDSA Cycle.). ACT: Make the necessary adjustments to plans and priorities in order to ensure the success of the strategy breakthroughs. Also. sales. the fewer the number of tiers. PDCA: PDCA stands for 'Plan-Do-Check-Act'. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 72 OF 107 . the better.S for Study) • • PLAN: Senior management should use the visioning process in the context of it Business Plan. A Pareto Chart focuses improvement activity on the “vital few” and not the trivial many. and whos for the total number of tiers for your organization. defects. review the measurements and note what you´ve learned that can help in the future. hows. • • THE LEAN.

Capable 3. Jim Womack states. Available 4.PERFECT PROCESS: In an article in 6L. a journal for Six Sigma and Lean Manufacturing professionals. "Unless you have defined from the customer's perspective what specific value is required. it is premature to begin thinking about building or improving processes to deliver it. Flexible THE LEAN. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 73 OF 107 . Adequate 5. Valuable 2." Womack defines a perfect process as one that is: 1.

Every step is completely valuable. PICK IN ORDER OF USE: See Junbiki. PLAN FOR EVERY PART (PFEP): The first step in creating a lean material-handling system for purchased parts is to collect all of the necessary parts information in one place . don't try to fix it. Improving the capability of a process is the starting place of Six Sigma. This would take the form of a spreadsheet or simple table and contain such data as pack-out quantity. and 3. POKAYOKE: Japanese for 'mistake-proofing'. perfectly capable. Equipment. This is the concern of Theory of Constraints. Methods. Availability depends on equipment reliability and uptime. exactly adequate. resulting in high throughput and low inventory. noiseless pull. Womack says a perfect process is waste-free. POUS is on of the goals of 5S activity. These flexible processes allow small amounts of parts for different products to be made frequently. improve. Continuous flow. POINT OF USE STORAGE (POUS): Keeping all items needed for the job at the location of use in a neat and organized manner. An available process can be performed every time it needs to be performed and in the standard cycle time. Start by drawing a Value-Stream Map to visualize the process. A capable process performs the same way with the same result every time. Mistake-proofing and fool-proofing devices made by designing parts. capable. see if the step is even needed. A flexible process can change over quickly from one member of a product family to another one. Also see Baka Yoke. Leveled production. THE LEAN.The perfect process is valuable because it creates and adds value for customers. or procedures so that mistakes physically or procedurally cannot happen. PITCH: The amount of time Takt time x pack-out qty = pitch required by a production area to make one container of products. just eliminate it. dimensions. 2. would the customer miss it? If the answer is "no". Customer pull. monitor and sustain the key indicators of a business. therefore. An adequate process has enough capacity to perform every time when it needs to be performed. In other words. Right-sized Tooling. Then remove the non-value-adding steps. In addition to being valuable. adequate. it is the starting place for Total Productive Maintenance. Alternative acronym to 5M and E. perfectly available. This provides one accurate source of information relating to parts. location of use and storage. PICKUP AND SUPPLY SYSTEM: See Tsurubeshiki. without waiting. Continuous flow is the quickest way to get materials from point A to point B. and maximal leveling. while allowing customers to pull products out of the value stream to prevent the waste of overproduction. order frequency and so on. Leveling the volume and mix of product flow through the process permits a steady consumption of resources and minimizes the work-in-process inventories associated with batchand-queue production. and highly flexible. Don't begin by asking if a process step is valuable. PERFORMANCE MANAGEMENT BOARD: See Seisankanriban. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 74 OF 107 . a perfect process also has its steps linked and coordinated by: 1. and Lean Manufacturing System Design. PEMPEM: Plant. This is the concern of the Toyota Production System. every step is connected by continuous flow. Environment. and flexible.the Plan for Every Part (PFEP). processes. PERFORMANCE MANAGEMENT: Using a set of tools and approaches to measure. A comprehensive plan for each part consumed within a production process. available. First. People. Perfect processes have very low setup and changeover times. Materials. And.

Also see Kanban. while avoiding their drawbacks. Drum-Buffer-Rope. POLCA is a hybrid push-pull strategy that combines the best features of pull (Kanban) and push (MRP) systems. Extended Kanban. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 75 OF 107 .POLCA: POLCA (Paired-cell Overlapping Loops of Cards with Authorization) is an effective material control system for manufacturing environments with high-variety or custom-engineered products. CONWIP. POLCA was introduced by Suri (1998) as one component of the overall Quick Response Manufacturing (QRM) strategy. THE LEAN. Quick Response Manufacturing. Generic Kanban.

PROCESS / PRODUCT FLOW LAYOUT: Plant layout where location of machines are determined by the sequence of operations.and medium-range management orientations as well as annual goals or targets. Delivery. are the specific action programs to achieve these goals. Goals are usually quantitative figures established by top management. Morale. See Koutebetsu Nouryokuhyou. THE LEAN. eventually becoming precise quantitative values. Measures. on the other hand. POLICY: (in Japanese management) – describes long. Top management's policy statement must be restated at all management levels in increasingly specific and action oriented goals. Machines are typically closely spaced in cellular fashion (see Mazume). and market share targets. See Hoshin Kanri. A goal that is not expressed in terms of such specific measures is merely a slogan. PROCESS CAPACITY TABLE: A chart primarily used in machining processes that compares set-up and machine load times to available capacity. Cost. Safety. The result of a correct PQPR results in a definition of value streams and sufficient process flow data to begin designing one-piece flow cells. It is imperative that top management determine both the goals and the measures and then "deploy" them down throughout the organization. Quality. profit. PQPR: Short for Product Quantity Process Routing Analysis. such as sales. Contrast to Functional Layout. Also Table of Production Capacity by Process. Another aspect of policy is that it is composed of both goals and measures.The POLCA system uses production cards circulating between overlapping pairs of workcenters to make most efficent use of production equipment in companies manufacturing custom-engineered and high-variety products. POLICY PRIORITIZATION: A technique to ensure maximum utilization of resources at all levels of management in the process of policy deployment. POLICY DEPLOYMENT: The process of implementing the policies of a Kaizen program directly through line managers and indirectly through cross-functional organization. The PR (Process Routing) refers to the Parts-Process Matrix analysis to determine product families by grouping of products with similar process flows. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 76 OF 107 . PCQDSM: TPM goals of Productivity. The PQ (Product Quantity) refers to Pareto analysis to determine the 80/20 rule of the top products or services that make up 80% of work volume.

THE LEAN. Then. The Gilbreth approach is highly visual and discriminates between waste and value-added activity. indicate which process steps are used by each product. the major difference between product families is the use of downstream process steps.PROCESS MAP: Process Mapping is also known as Process Charting or Flow Charting. PRODUCT FAMILY: A group of products that go through the same or similar downstream or "assembly" steps and equipment. The process steps are arranged by flow order with downstream processes last. Product families do not have to serve the same market. look for groupings of common process steps. A process map visually depicts the sequence of events to build a product or produce an outcome. To use the matrix. It is one of the oldest. With product families. Several systems of conventions exist. PRODUCT FAMILY MATRIX: A Product Family Matrix can be used to group products into families. not shared markets. workflow layouts can be configured to accommodate small differences in the workflow by building in detours and planning for the use of portable equipment. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 77 OF 107 . The groupings are the product families. Also see Group Technology. It may include additional information such as cycle time. Think in terms of shared processes. intuitive and easily used by untrained groups. Useful for cellular layouts. but the original system invented by Frank Gilbreth in the early 1900's is still the most useful. inventory. Many times. and equipment information. It is also simple. simplest and most valuable techniques for streamlining work. Downstream steps are those process steps that are closer to the customer.

Lean Transformation aims to eliminate waste. Kaizen activity focuses on improving QCD metrics. QDCI / QCDI: Competitive issues of Quality. The downstream process takes the product they need and 'pulls' it from the producer. and lacking a pull signal from the customer indicating that it has been bought. Delivery. The pull system links accurate information with the process to minimizes overproduction. more of the same product could be overproduced and put in inventory. QUALITY CONTROL CIRCLE (QCC): A QCC is a small group of staff working together to contribute to the improvement of the enterprise. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 78 OF 107 . PRODUCTION PREPARATION PROCESS: See 3P.PRODUCTION SMOOTHING: See Leveling. investigate. Delivery . THE LEAN. The pushed product goes into inventory. This 'customer pull' is a signal to the producer that the product is sold. improve QCDSM metrics. regardless of whether it is needed right now. The pull system enables the production of what is needed. Cost. PUSH SYSTEM: In contrast to the pull system. Q QCD: Quality. Cost. PULL SYSTEM: One of the 3 Elements of JIT. See also 3 Elements of Demand.Safety & Morale. A quality control circle (QCC) team of people usually coming from the same work area who voluntarily meet on a regular basis to identify. See Atohojuu and Atokouteihikitori. analyse and solve their work-related problems. to respect humanity and to build a cheerful workgroup through the development of the staff's infinite potential. and increase profitability. QCDSM: Quality. based on a signal of what has just been sold. PRODUCTIVITY: See Nouritsu. A set of performance management measures that includes employee satisfaction (safety & morale) as well as customer satisfaction. product is pushed into a process. and Delivery are the key customer satisfaction metrics that determine if a company is competitive. Cost and Innovation.

QRM is most effective for companies making a large variety of products with variable demand. THE LEAN. POLCA is the suggested production control in such environments.QUALITY FUNCTION DEPLOYMENT (QFD): A methodology involving a cross-functional team to reach consensus about final product specifications based on the wishes of the customer. as well as for companies making highly engineered products. QUICK RESPONSE MANUFACTURING (QRM): Quick Response Manufacturing (QRM) is a company-wide strategy that pursues the relentless reduction of lead time — all QRM principles stem from this singular driving concern. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 79 OF 107 . See POLCA.

S SAIKURUTAIMU: Process Cycle Time (the time required to complete one cycle of manual or automatic work or a combination thereof) THE LEAN. Achieved by input from people further down an organisation being circulated across management. repeaters medium demand. which encourages open input. without more senior management forcing upon others their own ideas. dividing products into three bands where runners constitute products with high volume and low variability (HDLV). The root cause is where action must be taken to prevent recurrence. high variability (LDHV). See 5 Why’s. but providing thoughts and feedback based on principles. RINGI: Shared decision making process.R REPLENISH: See Atohojuu. RUNNERS. ROOT CAUSE: The most basic underlying reason for an event or condition. and strangers low demand. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 80 OF 107 . consensus and ownership. medium variability (MDMV). The P-Q curve can be deep (8:2) or flat (6:4). REPEATERS AND STRANGERS: Based on P-Q Analysis (Part-Quantity) and in a way similar to ABC classification.

SEISANKANRIBAN: Performance Analysis Board (so named because it shows planned units vs. Value-adding Work (activities that add value as opposed to activities that may be considered work but do not modify materials). SHIGOTO: True Work. Muri. Action Cycle . so that by the time the operator has made one round of the flow line (at Takt time). See Value-added Work. A set-up team or expert follows the operator. project. SENSEI: One who provides information. and purchase orders associated with a particular customer job. THE LEAN. can be divided into two types: 1. SEQUENTIAL SET-UP: See Sequential Changeover. it has been completely changed over to the next product. instructor. internal: setup work that can be done only when the machine or process is not actively engaged in production. SELF-MANAGEMENT: See Jishu Kanri. This enables a manufacturer to track everything related with a particular product. SET-UP REDUCTION: Reducing the amount of time a machine or a process is down during changeover from the last good piece to the first good piece of the next product. Check. Do. SEIBAN: The name of a Japanese management practice taken from the Japanese words "sei". and "ban". or customer. which means number. Mura) SDCA: Standardize. SGC PRODUCTION SYSTEM: Variation of Toyota Production System propagated by Shingijutsu Global Consulting. See Build to Order. SETUP TIME: Work required to change over a machine or process from one item or operation to the next item or operation. or rabbi. A Seiban number is assigned to all parts. a teacher. materials. or with a project. That makes it great for project and build-to-order manufacturing.a refinement of the PDCA Cycle wherein management decides first to establish the standard before performing the regular PDCA function. In a flow process. which means manufacturing. changeovers can be performed one after another. when changeover times are within Takt Time. See PDCA. or anything else. actual completed units on a real time basis in a visible place so that all on the line can remain aware of whether the line is meeting takt time or not). Sequential changeover assures that the lost time for each process in the line is minimized to one 'Takt' beat.SAN KE: See 3D. 2. SAN MU: The 3 Mu’s (See Muda. OR external: setup work that can be done concurrently with the machine or process performing production duties. It also facilitates setting aside inventory for specific projects or priorities. SEQUENTIAL CHANGEOVER: Also sequential set-up. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 81 OF 107 .

current President Chihiro Nakao. See Menashinoshoujinka. one for fit and one for function. Six Sigma is the goal. SIX SIGMA: A structured process improvement program for achieving virtually zero defects in manufacturing and business processes. Contrast Teiinsei. and had personal relationships with Ohno and Shingo. SHOURYOKUKA: Labor Saving (reducing the need for staff). See SGC Production System. the spec manifest is attached to the unit in a visible place so as to inform each worker what the unit requires). and Akira Takenaka in 1987. Philosophy: Reduce variation in your business and take customer-focused. This increase in performance and decrease in process variation leads to defect reduction and vast improvement in profits. the capability to vary the manufacturing process as appropriate to fit the demand profile. work center layout. which means products and processes will experience only 3. Methodology: DMAIC/DFSS structured problem solving roadmap and tools. SHINGIJUTSU CONSULTING CO. all whom had worked for top-level manufacturing companies. Manning Flexibility (designing a process so that it can be run by only one person.99966 percent good. shojinka requires workers trained in multiple disciplines.4 defects per million opportunities or 99. • • Six Sigma is a methodology that provides businesses with the tools to improve the capability of their business processes. THE LEAN. as opposed to arbitrarily producing at full capacity) SHOUJINKA: Personnel (or Staff) Reduction (literally “the move to savings through reduction of personnel”). SHUSA: The leader of the team who designs and engineers the product into production. thus allowing increase and decrease of personnel according to the demand). in absence of better considerations. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 82 OF 107 . SHOUJINKA (MENASHINOSHOUJINKA): Designing for Minimal Staffing. The fundamental objective is customer satisfaction through continuous improvement in quality. Rule of thumb is to consider at least three opportunities for a physical part/component . such as U-shaped or circular. Six Sigma can be understood/perceived at three levels: • Metric: 3. Also you want to be Six Sigma in the Critical to Quality characteristics and not the whole unit/characteristics.4 Defects Per Million Opportunities and NOT Defects per million. SEISANSHIJIBIRA: Specifications Manifest (on a mixed line where there is no guarantee that the following unit will have the same specifications as the one preceding it. SHINNONOURITSU: True Efficiency (production of ordered goods only with minimum work and investment.one for form. practices and systems by identifying and preventing 'defects' in manufacturing and service-related processes in order to anticipate and exceed expectations of all stakeholders to accomplish effectiveness. Continually optimizing the number of workers in a work center to meet the type and volume of demand imposed on the work center. SINGLE DIGIT: See Hitoketa. The literal translation of ‘shingijutsu’ in English means ‘new technologies’. that supports a variable number of workers performing the tasks in the layout. DPMO allows you take complexity of product/process into account. Originally formed by the late Yoshiki Iwata. data drive decisions.SHIJIBIRA.: Shingijutsu provides world wide consulting practices on manufacturing technology. Six Sigma is a rigorous and a systematic methodology that utilizes information (management by facts) and statistical analysis to measure and improve a company's operational performance. employee morale and quality of product.

AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 83 OF 107 . no or little formal training Learning by doing Six Sigma Improve process capability and eliminate variation All business processes style" Teaching a generic problem-solving approach relying on statistics Various approaches 2 to 6 months Dedicated resources.Integrating Lean And Six Sigma Roadmap Comparing Lean And Six Sigma Lean Goal Application Approach Project Selection Length Of Projects Infrastructure Training Create flow and eliminate waste Primarily manufacturing processes Teaching principles and "cookbook implementation based on best practice Driven by Value Stream Map 1 week to 3 months Mostly ad-hoc. broad-based training Learning by doing THE LEAN.

AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 84 OF 107 . A system of set-up reduction and quick changeover pioneered and developed by Shigeo Shingo.SMED: Single Minute Exchange of Dies. See Sumeddo. Sotodandori. The eight principles of SMED are: 1) 2) 3) 4) 5) 6) 7) 8) Separate Internal from External Setup Operations Convert Internal to External Setup Standardize Functionality Promote clamps over fasteners Use Intermediate Jigs Adopt Parallel Operations Eliminate Adjustments Mechanize Elements THE LEAN. Uchidandori.

work in process. and layout of the cell or workstation. 2) parts placed in equipment with cycle times exceeding Takt time. employees are encouraged to continuously think about improvement. develop missions and goals. SUPERMARKET: The supermarket is a tool of the pull system that helps signal demand for the product. See SMED. The three elements of standard work are 1) takt time. a fixed amount of raw material. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 85 OF 107 . Decisions should not be made based on sunk costs. SUPPLY CHAIN PLANNING (SCP): A subset of Supply Chain Management. services and related information from source to customer.SOIKUFU: Soikufu (creative thinking or inventive ideas) is a framework for harnessing the creative abilities of employees and a recognition of the fact that no one appreciates a task better than the person who performs it day in day out. engineer. See Hyoujunsagyou Kumiawasehyou. Shows the work sequence. See Standard Work. which is then an opportunity for improvement. A Supply Chain Planning suite overlays a transactional system to provide planning. See Teian. Rewards are given for suggestions resulting in cost savings. and material. SOTODANDORI: External Setup. services and information from supplier to customer. Supply Chain Management encompasses the processes of creating and fulfilling the market's demand for goods and services and involves a trading partner community engaged in a common goal of satisfying the end customer. STANDARD WORK IN PROCESS: Also Standard WIP. standard working process. SUNK COST: Any expenditure that has already taken place and can not be undone. STRATEGIC PLANNING: Developing short and long-term competitive strategies using tools such as SWOT Analysis to assess the current situation. Through implementations such as Quality Circles and Suggestion Schemes (see Teian). SUPPLY CHAIN MANAGEMENT (SCM): A business strategy to improve shareholder and customer value by optimizing the flow of products. safety. machine. Supply Chain Management encompasses the processes of creating and fulfilling the market's demand for goods and services and involves a trading partner community engaged in a common goal of satisfying the end customer. See Hyoujunsagyou. See Hyoujuntemochi. STANDARD WORK: Standard Work is the most efficient combination of man. this is stop-the-line authority. this is the process of coordinating assets to optimize the delivery of goods. THE LEAN. STOP-THE-LINE AUTHORITY: When workers are able stop the line to indicate a problem. 2) work sequence. SUPPLY CHAIN EXECUTION (SCE): A business strategy to improve shareholder and customer value by optimizing the flow of products. Deviation from standard work indicates an abnormality. The minimum work-in-process needed to maintain standard work. SUMEDDO: Single Minute Exchange of Dies – SMED (frequently used to describe very fast changeovers whether dies are involved or not). A supermarket is typically located at the end of a production line (or the entrance of a u-shaped flow line). SUGGESTION SYSTEM: In a suggestion system workers are encouraged to identify wastes. and environmental concerns and submit improvement ideas formally. These rewards are typically shared among the production line or by the kaizen team. SUGGESTION: See Teian. Standard WIP parts are 1) parts completed and in the machine after auto cycle. Off-line Setup (preparation for set up changes that is performed without stopping the production process). takt time. Performing standard work allows for a clear and visible 'standard' operation. and participate in and contribute to the continuous improvement process. support staff or president have identified the problem and taken corrective action. or finished material is kept as a buffer to schedule variability or an incapable process. and 3) standard work-in-process. or SWIP. and 3) the parts currently being worked on or handled by the operators performing standard work. This document outlines the best combination of worker and machine. In a supermarket. maintenance personnel. balancing supply and demand. Type of jidoka (line-stop jidoka). services and related information from source to customer. what-if scenario analysis capabilities and real-time demand commitments. and create an implementation plan. STANDARD WORK COMBINATION SHEET (SWCS): A document detailing the sequence of production steps assigned to a single worker performing Standard Work. STANDARD WORK SHEET (SWS): A visual work instruction drawing for Standard Work. manager. The production line or machine remains stopped until the supervisor.

TAKAIUMPAN: Frequent Runs (taking many trips instead of conveying an excess of material each time).refers to responsibilities assigned to a single person). SWCS: See Standard Work Combination Sheet. Takai is also a common surname in Japan. using an orthogonal array. TAKT TIME: Takt time is the pace at which the customer is buying a particular product or service. See Multi-machine Handling. TAGUCHI TECHNIQUE: An experimental design method that allows the optimum condition for a large number of variables to be reached efficiently. Takutotaimu. TADAIMOCHI: Tending Many Machines (to run more than one machine . TAKOUTEIMOCHI: Tending Many Processes (to run more than one process . See Multi-process Handling. See Jikkoutakutotaimu. Takt time cannot be reduced or increased except by changes in production demand or available time to work. TAKAI: Production innovation or production flexibility. THE LEAN.SWS: See Standard Work Sheet. However.refers to responsibilities assigned to a single person). The method provides an efficient technique to design product tests prior to entering the manufacturing phase. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 86 OF 107 . for example the ability to build different car models on the same line or to mix different trim levels and body configurations with total flexibility to meet customer demand. The technique is used to optimise complex production systems and is named after engineer Dr Genichi Taguchi. Takt time is the total net daily operating time divided by the total daily customer demand. Takt time is not how long it takes to perform a task. Takt time is one of the 3 Elements of JIT. Takt is a German word for 'beat' or 'rhythm'. T TABLE OF PRODUCTION CAPACITY BY PROCESS: See Process Capacity Table. it can also be used as a trouble-shooting methodology to sort out pressing manufacturing problems.

AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 87 OF 107 .THE LEAN.

TANOUKOU: Multi-skilled.TAKUTOTAIMU: Takt Time (net working time divided by the number of units ordered for that time . Fixed Position Stop System. THE LEAN. TEBANARE: Japanese for 'hands-free'.original meaning in German is the “beat” of a musical composition – to produce the units ordered. TEIICHITEISHIHOUSHIKI: Fixed Position Stop System (even if the andon cord is pulled to stop the line. Fixed Manning (designing a line so that there must be a certain number of operators to begin operation). See Takt Time. See Andon. A teian system can be likened to a system which allows and encourages workers to actively propose process and product improvements. See Soikufu. Target costing follows this formula: Sales price . proposition. the line will not stop until the moving work reaches a fixed point). TEIINSEI: Fixed Staffing. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 88 OF 107 . TANOUKOUKA: Fostering of training to produce multi-skilled workers. TEIAN: A proposal. Cross-trained (workers who are not limited to running only one type of equipment). or suggestion. Contrast Shoujinka.Target Profit = Target Cost. the cycle time of all jobs on the line must be under takt time). 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. TARGET COSTING: A way of establishing a cost goal for a product or service in the design phase.

and other assets and liabilities. utilities. Contrast Futeiryou. then the goal becomes one of making more money. buildings." When the goal units are money (in for-profit businesses). these constraints must be identified and treated carefully. Contrast Takt Time."variable" being defined according to the Marginal Costing philosophy. a bottleneck). cycle time as a means of becoming more competitive. rent. market constraint and policy constraint.TEIKI: Scheduled Time (one of the 4 possible conditions of delivery). not with additional cost allocations from overhead.Rework.Skills . If that system is a for-profit business. machinery. THEORY OF CONSTRAINTS: Theory of constraints (TOC) is an overall management philosophy that aims to continually achieve more of the goal of a system. OE is all expenses except the cost of the raw materials. ("Throughput" is sometimes referred to as "Throughput Contribution" and has similarities to the concept of "Contribution" in Marginal Costing which is sales revenues less "variable" costs . inventory. 4.RM). cost. Only by increasing throughput (production rate) at the bottleneck process can overall throughput be increased. scrap. delivery." The preferred term is now only "investment. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 89 OF 107 . the "I" was interchanged between "Inventory" and "Investment. taxes.Transport .Over production . These constraints can be broadly classified as internal resource constraint.in a totally integrated effort toward improving performance at every level.Motion . information. This improved performance is directed THE LEAN. throughput is sales revenues less the cost of the raw materials (T = S .Defects .Inventory . every profit making organization has at least one constraint which prevents the system from achieving a higher performance relative to its goal (Liebig's Law of the Minimum). The key steps in implementing an effective TOC approach are: 1. lifting W . products & information I . • • • • • • • • T . set-up time. 3. Reduction in lead-time.Tighter tolerances or higher grade materials than are necessary D . THULLA: Thulla is the term defined for the resource waste time during the processing due to the motivational reasons. turning.e. 5. Identify the constraint (bottlenecks are identified by inventory pooling before the process) Exploit the constraint (increase its utilisation and efficiency) Subordinate all other processes to the constraint process (other processes serve the bottleneck) Elevate the constraint (if required. in the present as well as in the future.Waiting . payroll. In order to manage the performance of the system.Bending. the bottleneck may have shifted or require further attention) THROUGHPUT: The rate at which the entire system generates money.Over processing . and morale. etc. Note that T only exists when there is a sale of the product or service. safety.For parts. 2." Note that TOC recommends inventory be valued strictly on totally variable cost associated with creating the inventory.) • Investment (I) is the money tied up in the system. This is money associated with inventory. documentation ahead of requirements M . permanently increase bottleneck capacity) Rinse and repeat (after taking action. Contrast Futeiki. TEIRYOU: Scheduled Quantity (one of the 4 possible conditions of delivery). According to TOC.managers and workers . instructions. incorrect documentation S . equipment O . Producing materials that sit in a warehouse does not count.Storing parts. OE includes maintenance. Throughput accounting uses three measures of income and expense: • Throughput (T) is the rate at which the system produces "goal units. Theory of Constraints is based on the premise that the rate of revenue generation is limited by at least one constraining process (i. delegating tasks with inadequate training TIME-BASED STRATEGY: Driving improvement activity through focus on time and its relation to quality. reaching. and operating expense). THROUGHPUT ACCOUNTING: Throughput accounting improves profit performance with better management decisions by using measurements that more closely reflect the effect of decisions on three critical monetary variables (throughput. TOTAL QUALITY CONTROL (TQC): Organized Kaizen activities involving everyone in the company . • Operating expense (OE) is the money the system spends in generating "goal units." For physical products. In earlier TOC documentation. This term is a management concern. TOTAL CYCLE TIME (TCT): The time taken from work order release into a value stream until completion / movement of product into shipping / finished goods.Making more than is IMMEDIATELY required O . TIM WOODS: Easy acronym to remember 8 wastes.Under utilizing capabilities. pieces.Moving people.

muda (overburden." In Japanese. waste) from the operations. manpower development. based on the participation of all its members and aiming at long-term success through customer satisfaction. The aim of TPS is to eliminate all muri. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations. See Monotojouhounonakarezu. mura. delivery. As defined by ISO: "TQM is a management approach of an organization. It is a system that uses the PDCA approach to involve everyone in solving problems and improving quality. cost.toward satisfying such cross-functional goals as quality. pillars and foundation it represented a familiar shape that also represented stability. and maximize productivity and profit). when it is needed. centered on quality. and new product development.) TOTAL QUALITY MANAGEMENT (TQM): Total Quality Management is a management strategy aimed at embedding awareness of quality in all organizational processes. TOYOTA PRODUCTION SYSTEM (TPS): A methodology that resulted from over 50 years of Kaizen at Toyota. and morale. Often copied and slightly changed by consulting firms. government. The Toyota Production System 'house' structure was used because with a roof. TQM comprises four process steps. repeatable and measureable. Toyota people are beginning to call TPS the "Thinking People System" instead of the Toyota Production System. They have studied and understood the system. in the right amount • Minimize inventories THE LEAN. TOYOTASEISAN HOUSHIKI: The Toyota Production System (the system developed by the Toyota Motor group of companies to minimize investment and production volume. TPS is always improving . It is assumed that these activities ultimately lead to increased customer satisfaction. namely: Kaizen – Focuses on Continuous Process Improvement.Toyota Production System or Thinking People System The TPS House was developed by Taiichi Ohno and Eiji Toyoda to make it possible to explain Toyota's evolving system to employees and suppliers. and benefits to all members of the organization and to society. TPS is the Operational Blueprint for a Lean Enterprise The organizations that have implemented Lean most successfully have adopted TPS as their operational blueprint. Atarimae Hinshitsu – Focuses on intangible effects on processes and ways to optimize and reduce their effects. scheduling. to make processes visible. Kansei – Examining the way the user applies the product leads to improvement in the product itself. TQM requires that the company maintain this quality standard in all aspects of its business. Miryokuteki Hinshitsu – Broadens management concern beyond the immediate product. TPS is built on a foundation of Leveling. and adopted as pure a form of TPS as possible • Make what the customer needs. TOUMENNERAU SUGATA: The Target State for Now (an improvement in the current state. safety. TPS . AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 90 OF 107 . See Toyota Production System. TQM has been widely used in manufacturing. but still short of the “Should Be” State). as well as NASA space and science programs. (Also referred to as CWQC – Company-Wide Quality Control. unevenness. with the supporting pillars of Just-in-Time and Jidoka. renamed it to take ownership of it as their own system. and service industries. cost. one of the most successful companies in the world. TPS continues to evolve today. education.

Implement low-cost automation. Heijunka (Leveling) Stabilize production schedule variability Reduce total Lead-time. separate man & machine using intelligent automation. scheduling. Left Pillar Just-in-Time (Takt-Flow-Pull) Eliminate the 7 Wastes of Production Create a smooth flow of product and information. and customer needs Right Pillar Foundation THE LEAN. minimize inventory and space Jidoka (Autonomation) Build quality into the process. error-proofing.• • • • Separate machine work from human work and fully utilize both Build quality into the process and prevent errors from happening Reduce lead-times to allow for rapid. coordinate sales. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 91 OF 107 . flexible scheduling Produce a high mix of low volume products efficiently The TPS house shows how to build a World Class production system that continuously improves by eliminating waste. equipment upgrades and reliability improvement.

maintenance and operator involvement in equipment planning & purchasing. performance and quality for a piece of equipment. Maintenance Mindset & Training To Detect Planned Maintenance System Overall Equipment Effectiveness Early Equipment Management System To Correct To Perfect To Protect THE LEAN. lubricating and inspecting. Training of operators is in place to give them the knowledge of what daily maintenance is needed as well as what the optimal operating conditions as well.TOTAL PRODUCTIVE MAINTENANCE (TPM): Total productive maintenance aims at maximizing equipment effectiveness and uptime throughout the entire life of the equipment. The ultimate goal being that operators responsibilities would cover external while maintenance's responsibility would be for internal. A system developed to cover daily. SMED. and others. life cycle costing. referred to as the "five pillars". Visual Controls. The system has five major components: maintenance design standards. general inspection. See OEE. A measure that categorizes production losses of availability. maintenance database. The process is organized into several progressive steps. and process inspection while establishing standards for cleaning. producing high quality products. TPM is a set of improvement system that incorporates and builds on Lean tools such as 5S. The Five Pillars of TPM A World Class manufacturer requires that their production equipment runs reliably and safely. Training of maintenance is in place to give them the knowledge of how to train operators as well as how to monitor. unplanned maintenance. and early warning diagnostics. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 92 OF 107 . Equipment breakdowns. Pillar Autonomous Maintenance Function Clean Explanation Autonomous maintenance covers the operator performing initial cleaning. improve & correct design flaws and equipment restoration. A base line can then be developed which enables identification of the six major losses for a given piece of equipment so that there can be improvement. reduced speeds and frequent minor stops for adjustments are all factors that must be addressed for defect-free one-piece flow production to be possible. Pokayoke. weekly and monthly checks in conjunction with identifying symptoms of deterioration and implementing an equipment refurbishment program.

4. each being set to achieve a “zero” target. 5. Office TPM: for involvement of all parties to TPM since office processes can be improved in a similar manner as well. TPM has 8 pillars of activity. Planned maintenance: for achieving zero breakdowns Education and training: for increasing productivity Early equipment/product management: to reduce waste occurring during the im-plementation of a new machine or the production of a new product 6. Focused improvement (Kobetsu-Kaizen): for eliminating waste Autonomous maintenance (Jishu-Hozen): in autonomous maintenance. 3. the operator is the key player. 8. Safety. Quality maintenance (Hinshitsu-Hozen): This is actually “maintenance for quality”.TPM identifies the 16 types of waste (Muda) and then works systematically to eliminate them by making improvements (Kaizen). 2. which aims to achieve zero loss by taking necessary measures to prevent loss. These pillars are: 1. It includes the most effective quality tool of TPM: “poka-yoke”. hygiene. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 93 OF 107 . It involves daily maintenance activities carried out by the operators themselves that prevent the deterioration of the equipment. 7. environment: for achieving zero work-related accidents and for protecting the environment. THE LEAN.

ideally. The tsurube system is often used when product leaves the flow line for processing through THE LEAN. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 94 OF 107 . TPM tries to reduce all forms of ‘waste’ in the process to as small as is economically possible or. TSURUBE SYSTEM: A way to keep product flow continuous even when there are interruptions such as outside processing or batch operations. The concept of Zero is an overriding aim of TPM. Zero.TPM: See Total Productive Maintenance.

equipment that can not be placed into the cell (vendor operations. To be a value added action the action must meet all three of the following criteria: 1) The customer is willing to pay for this activity. 2) It must be done right the first time. On-line Setup (activities in a setup change that require the production line to stop – If these take less time than takt time then “running air” becomes possible). Each bin contains enough parts to last during the delivery lead-time. TSURUBEHOUSHIKI: Pickup and Supply System (a shuttle delivery system that picks up empty containers and delivers materials or parts in the same run . See Well Wheel System. heat treat. plating. U UCHIDANDORI: Internal Set-up. THE LEAN.original Japanese word refers to a double bucket and pulley arrangement for drawing water from a well) TURN-AND-EARN SYSTEM: A policy in which suppliers limit customer purchases to the quantity of goods they “turn” by shipping them out as finished goods to their own customers. Used to reduce hoarding during periods of limited availability. 3) The action must somehow change the product or service in some manner. whereby two bins or containers are used trigger reorder of parts or materials. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 95 OF 107 . A transformation of the shape or function of the material/information in a way that the customer will pay for.). V VALUE-ADDED WORK: Work that the customer is willing to pay for. Also called the “Well Wheel System” because of the similarity to how water is drawn out of a well using two buckets and a pulley wheel. When one bin is empty. anodizing. it is time to reorder the two-bin quantity. See Internal Setup. TWO-BIN SYSTEM: An example of both visual management and the pull system. See Shigoto. etc.

and a process level map with a narrower scope and more detail. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 96 OF 107 . The 'Current State' is how the process works today and the 'Future State' map shows improvements towards a long-term 'ideal state'. Value Streams are typically identified using a combination of Pareto Analysis and Process Routing analysis. both value added and not. A value stream contains a product or a family of products that have similar material and information flows. or hospital operation. See Monotojouhounonakarezu. THE LEAN.VALUE STREAM: A value stream is a series of all actions required to fulfill a customer's request. office. VALUE STREAM MAPPING (VSM): Creating a picture of the complete material and information flow from customer request through order fulfillment for an operation. Value Stream Mapping can be done at an enterprise level (showing customer-supplier relationships as well as distributors). a door to door level showing the flow of material and information primarily within a factory.

See Medemirukukanri. VISUAL MANAGEMENT: When the normal state and abnormal state can be clearly and visually defined. THE LEAN. W WASTE: An activity that that consumes valuable resources without creating customer value. VISUAL CONTROLS: Various tools of visual management such as color-coding. In visual management. labels and markings on the floor. visual management is possible. charts. See Muda. this is vertical handling. VISUALISATION: The design of a workplace such that problems and issues can be identified without timely and in depth investigation.VERTICAL HANDLING: When tasks are assigned in such a way that the materials processes are being progressively worked towards completion. Truly visual work-places should be capable of assessment in less than 3 seconds. schedule boards. and any deviance is met with corrective action. See Medemirukukanri. This in contrast to horizontal handling which only focuses on the output of a specific process. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 97 OF 107 . simple visual tools are used to identify the target state. andons.

WORLD CLASS MANUFACTURING: WCM is the philosophy of being the best. The yamazumi can also be sued for load planning and scheduling. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 98 OF 107 . YARUKI: The attitude of "Can do" . however. Yokoten makes knowledge organizational. not individual. XYZ YAMAZUMI: A yamazumi board is a bar graph typically showing the balance of workloads as operator cycle times. In the process of dealing with problems Yokoten standardizes a solution and shares it. As a knowledge management device. At its most basic level. WORK SEQUENCE: The defined steps and activities that need to be performed in order for the work to be completed. assisting with changeover.everything is achievable. in no particular order. and services to remain an industry leader and provide the best choice for customers. regardless of where they are in the process. The seven keys to WCM success. and any additional help needed to maintain Standard Work and keep the flow going. are: • • • • • • • Reduce Lead Times Cut Operations Costs Improve Business Performance Visibility Speed Time-to-Market Exceed Customer Expectations Streamline Outsourcing Processes Manage Global Operations Each of these objectives is important in and of itself. WATERSPIDER: The waterspider is a skilled and well-trained person who makes the rounds supplying parts. providing tools and materials. processes. YOKOTEN: Yokoten encompasses the methods of documenting and distributing knowledge about what works and what doesn't. coined by MAPICS. it can be the notebook that a team keeps of as a history of the group and problems encountered. and the lowest cost producer of a product or service. they describe the focus of the activities and attitudes that define world class. See Mizusumashi. the fastest.WELL WHEEL SYSTEM: See Tsurube System. performing the waterspider role is a prerequisite for supervision and management positions. It implies the constant improvement of products. Named after the whirligig beetle that swims about quickly in the water. Yokoten is the library of A3 problem reports that a team or work group maintains for all to access. The word "yamazumi" literally means "to stack up". This typically happens THE LEAN. At Toyota. taken together. The waterspider has a routine and knows all processes thoroughly enough to step in if needed. Yokoten is a form of knowledge management.

gembapantarei.leanuk.com/lean-resources.gemba. Sharing of standard procedures across an organization is the ideal.net/ THE LEAN. Lean Enterprise Academy UK http://www.isixsigma.emsstrategies. Most standard work processes are place and process specific whereas a solution to a technical problem is not.lycos. looser alliances called keiretsu emerged in which close trading relationships were cemented by crossshareholdings within the group. Lean Six Sigma and Lean Manufacturing Lean Advisers Inc. Following the break-up of the zaibatsu.com/me/lean_manufacturing/ Comprehensive resource on Lean.leanadvisers. Gemba Research www.htm Good collection of article in html and pdf formats from Advanced Manufacturing Magazine EMS Consulting Group Inc. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 99 OF 107 .com/leanmanufacturing/leanmanufacturing. Lean Enterprise Institute www. Ready Set Go Time Study (it is desirable to time any process while it is being performed together with the rest of the processes of the same line so before using the stopwatch the timer will call out “yooi don!” which means “ready go!” so that all operators can begin their operations at the same time and the times will be more accurate) ZAIBATSU: The zaibatsu were large holding companies which dominated the Japanese economy until the 1950s. Northwest Lean Networks www.htm Valuable collection of training materials on Lean and related topics.advancedmanufacturing. www.com A weblog about better ways to make things better.html Lean Manufacturing Consulting and Training firm’s website with good articles.lean.fr/hconline/engineer_us.com Lean consulting firm website with good collection of articles. iSixSigma www. www.nwlean. YOOIDON HOUSHIKI: Simultaneous-start Time Study. APPENDIX A: LEAN RESOURCES ON THE WEB Advanced Manufacturing www.org The Lean Enterprise Institute (LEI) is a nonprofit education and research organization founded by James Womack Daniel Jones and others in 1997 to promote and advance the principles of lean thinking in every aspect of business and across a wide range of industries. very much as the chaebol of South Korea have driven that country's growth over the last 25 years.com GembaTM has been a firm focused on delivering knowledge and results through kaizen since 1998. The site contains good training materials and articles. Technology is often specific to a manufacturing process.htm Lean training consultancy with good information on their website.at the work group level. Gemba Panta Rei www.org/Lean_community_articles. Lean Portal http://membres.

strategosinc. tools. wide-ranging and.superfactory. events and books supporting lean manufacturing. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 100 OF 107 . above all. www. unique. Superfactory www.NWLEAN assists companies in implementing lean manufacturing and lean production systems The site contains good information. communities. useful. downloads and tools.com Resources.com Lean Manufacturing and Strategy is the primary focus of this website. enterprise excellence and best practices THE LEAN. Strategos Inc. Most of the content is educational.

Jones 1998 Shingo Research Prize Recipient Kaizen: The Key to Japan's Competitive Success by Masaaki Imai The New Manufacturing Challenge: Techniques for Continuous Improvement by Kiyoshi Suzaki The Sayings of Shigeo Shingo: Key Strategies for Plant Improvement (Japanese Management) by Shigeo Shingo Gemba Kaizen: A Common Sense.APPENDIX B: SUGGESTED READING Lean Thinking: Banish Waste and Create Wealth in Your Corporation by James Womack and Daniel T. Martin THE LEAN. Womack. Schonberger Learning to See Version 1. Low-Cost Approach to Management by Masaaki Imai Toyota Production System: Beyond Large-Scale Production by Taiichi Ohno The Machine That Changed the World : The Story of Lean Production by James P. Stephen H. Schonberger The World Class Manufacturing: The Lessons of Simplicity Applied by Richard J. Jorge L.3: Value Stream Mapping to Create Value and Eliminate Muda by Mike Rother and John Shook 1999 Shingo Research Prize Recipient Lean Transformation: How to Change Your Business into a Lean Enterprise by Bruce A. Henderson. Daniel T. Larco. Jones and Daniel Roos 1994 Shingo Research Prize Recipient A Study of the Toyota Production System from an Industrial Engineering Viewpoint by Shigeo Shingo Japanese Manufacturing Techniques : Nine Hidden Lessons in Simplicity by Richard J. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 101 OF 107 .

The Lean Manufacturing Pocket Handbook by Kenneth Dailey The Toyota Way: 14 Management Principles From The World's Greatest Manufacturer by Jeffrey Liker 2005 Shingo Research Prize Recipient The Toyota Way Fieldbook by Jeffrey Liker and David Meier The Lean Pocket Guide : Tools for the Elimination of Waste by MCS Media TPM for Every Operator byJapan Institute of Plant Maintenance 5S for Operators: 5 Pillars of the Visual Workplace (For Your Organization!) by Hiroyuki Hirano Quick Changeover for Operators: The SMED System by Shigeo Shingo Pull Production for the Shopfloor by Productivity Press Development Team Kanban for the Shop Floor: The Productivity Press Development Team by Productivity Press Development Team Just-In-Time for Operators by Productivity Press Development Team Kaizen for the Shopfloor by The Productivity Press Development Team THE LEAN. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 102 OF 107 .

Womack and Daniel T.Identifying Waste on the Shopfloor by Productivity Development Team Standard Work for the Shopfloor by Productivity Press Development Team Mistake-Proofing for Operators: The ZQC System by Productivity Press Development Team Cellular Manufacturing: OnePiece Flow for Workteams by Productivity Press Development Team Focused Equipment Improvement for TPM Teams by Japan Institute of Plant Maintenance OEE for Operators: Overall Equipment Effectiveness by Productivity Press Development Team Lean Solutions: How Companies and Customers can Create Value and Wealth Together by James P. Macinnes Memory Jogger II: a Pocket Guide of Tools for Continuous Improvement by Michael Brassard The Toyota Production System: An Integrated Approach to Just-in-Time By Yosuhiro Monden The Evolution of a Production System at Toyota By Takahiro Fujimoto 2000 Shingo Research Prize Recipient THE LEAN. Jones Creating a Lean Culture: Tools to Sustain Lean Conversions by David Mann The Lean Enterprise Memory Jogger: Create Value and Eliminate Waste Throughout Your Company by Richard L. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 103 OF 107 .

Jones 2003 Shingo Research Prize Recipient Agile Manufacturing : Forging New Frontiers by Paul T. 1800-1932: The Development of Manufacturing Technology in the United States By David Hounshell Kaikaku: The Power and Magic of Lean By Norman Bodek 2005 Shingo Research Prize Recipient Who’s Counting? A Lean Accounting and Manufacturing Business Novel By Jerrold M. Solomon 2005 Shingo Research Prize Recipient Real Numbers: Management Accounting in a Lean Organization by Jean E. Cunningham and Orest J. and Engineering Professionals By Rick Harris. Kidd Agile Manufacturing: The 21 Century Competitive Strategy by A. Chris Harris. Operations. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 104 OF 107 . Womack and Daniel T. and Earl Wilson 2005 Shingo Research Prize Recipient Seeing the Whole: Mapping the Extended Value Stream By James P. Gunasekaran (Ed.From the American System to Mass Production. Fiume with Emily Adams 2004 Shingo Research Prize Recipient The Complete Lean Enterprise: Value Stream Mapping for Administrative and Office Processes By Beau Keyte and Drew Locher 2005 Shingo Research Prize Recipient Lean Lexicon: A Graphical Glossary for Lean Thinkers By The Lean Enterprise Institute Creating Level Pull: A Lean Production-System Improvement Guide for Production-Control. Engineers and Production Associates By Mike Rother & Rick Harris 2003 Shingo Research Prize Recipient Making Materials Flow: A Lean Material-Handling Guide for Operations. Production-Control. and Engineering Professionals By Art Smalley 2005 Shingo Research Prize Recipient Creating Continuous Flow: An Action Guide for Managers.) st THE LEAN.

Davis 2000 Shingo Research Prize Recipient Becoming Lean: Inside Stories of U. Liker. ed. Perozziello 2001 Shingo Research Prize Recipient Running Today's Factory: A Proven Strategy for Lean Manufacturing By C. Christopher and Carl G. Pascal Dennis 2006 Shingo Research Prize Recipient Breaking the Cost Barrier: A Proven Approach to Managing and Implementation Lean By Stephen A. Manufacturers by Jeffrey K.Better Thinking. Standard. D. Joseph Pine II 1995 Shingo Research Prize Recipient The Gold Mine: a Novel of Lean Turnaround by Freddy Ballé and Michael Ballé THE LEAN. Better Results: Using the Power of Lean as a Total Business Solution by Bob Emiliani with David Stec. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 105 OF 107 .S. Thor. Editor 1998 Shingo Research Prize Recipient World Class Manufacturing: The Next Decade by Richard J. 1995 Shingo Research Prize Recipient Mass Customization: The New Frontier in Business Competition By B. Schonberger 1998 Shingo Research Prize Recipient The Handbook for Productivity Measurement and Improvement By William F. Lawrence Grasso and James Stodder 2003 Shingo Research Prize Recipient Henry Ford: Today and Tomorrow – Commemorative Edition of Ford's 1926 Classic by Henry Ford 2003 Shingo Research Prize Recipient Reorganizing the Factory: Competing Through Cellular Manufacturing by Nancy Lea Hyer and Urban Wemmerlöv 2003 Shingo Research Prize Recipient Collaborative Advantage: Winning Through Extended Enterprise Supplier Networks by Jeffrey H. Ruffa and Michael J. Dyer 2002 Shingo Research Prize Recipient Lean Production Simplified: A Plain-Language Guide to the World's Most Powerful Production System by John Shook (Foreword).

Miller A Revolution in Manufacturing: The SMED System by Shigeo Shingo 5 Pillars of the Visual WorkPlace: The SourceBook for 5S Implementation by Hiroyuki Hirano The Visual Factory: Building Participation through Shared Information by Michel Greif Zero Quality Control: Source Inspection and the Poka-Yoke System by Shigeo Shingo Poka-Yoke: Improving Product Quality by Preventing Defects by Hiroyuki Hirano TPM for the Lean Factory: Innovative Methods and Worksheets for Equipment Management by Kenichi Sekine and Keisuke Arai Hoshin Handbook: Focus and Link Activities Throughout the Organization by Pete Babich Beyond Strategic Vision. Better Results: Using the Power of Lean as a Total Business Solution By Bob Emiliani Lean Machines: Learning From The Leaders Of The Next Industrial Revolution THE LEAN. Ellen Domb JIT is Flow: Practice and Principles of Lean Manufacturing By Hiroyuki Hirano and Makoto Furuya Better Thinking.All I Need to Know About Manufacturing I Learned in Joe's Garage: World Class Manufacturing Made Simple by William B. Effective Corporate Action With Hoshin Planning by Michael Cowley. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 106 OF 107 .

and Technology James Morgan and Jeff Liker 2007 Shingo Research Prize Recipient Hoshin Kanri for the Lean Enterprise: Developing Competitive Capabilities and Managing Profit by Thomas Jackson 2007 Shingo Research Prize Recipient The TWI Workbook: Essential Skills for Supervisors Patrick Graupp and Robert Wrona 2007 Shingo Research Prize Recipient Lean Production Simplified: A Plain-Language Guide to the World's Most Powerful Production System by Pascal Dennis and John Shook THE LEAN.The Idea Generator .Quick & Easy Kaizen by Bunji Tozawa and Norman Bodek The Idea Generator: Quick & Easy Kaizen (Workbook) By Bunji Tozawa and Norman Bodek Creating Mixed Model Value Streams . AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 107 OF 107 .Practical Lean Techniques for Building to Demand by Kevin J. Duggan Lean Lexicon: a graphical glossary for Lean Thinkers Inside the Mind of Toyota: Management Principles for Enduring Growth by Satoshi Hino 2007 Shingo Research Prize Recipient The Toyota Product Development System: Integrating People. Process.