VARIOUS TERMS USED IN PRODUCTION MANAGEMENT

"5S"
was invented in Japan, and stands for five (5) Japanese words that start with the letter 'S': Seiri, Seiton, Seiso, Seiketsu, and Shitsuke. Table 1 shows what these individual words mean. An equivalent set of five 'S' words in English have likewise been adopted by many, to preserve the "5S" acronym in English usage. These are: Sort, Set (in place), Shine, Standardize, and Sustain. Some purists do not agree with these English words they argue that these words have lost the essence of the original 5 Japanese words.
Table 1. 5S Definitions Japanese Term English Equivalent Meaning in Japanese Context

Seiri Seiton Seiso Seiketsu Shitsuke Seiri

Tidiness Orderliness Cleanliness Standardization Discipline

Throw away all rubbish and unrelated materials in the workplace Set everything in proper place for quick retrieval and storage Clean the workplace; everyone should be a janitor Standardize the way of maintaining cleanliness Practice 'Five S' daily - make it a way of life; this also means 'commitment'

The first step of the "5S" process, seiri, refers to the act of throwing away all unwanted, unnecessary, and unrelated materials in the workplace. People involved in Seiri must not feel sorry about having to throw away things. The idea is to ensure that everything left in the workplace is related to work. Even the number of necessary items in the workplace must be kept to its absolute minimum. Because of seiri, simplification of tasks, effective use of space, and careful purchase of items follow. Seiton Seiton, or orderliness, is all about efficiency. This step consists of putting everything in an assigned place so that it can be accessed or retrieved quickly, as well as returned in that same place quickly. If everyone has quick access to an item or materials, work flow becomes efficient, and the worker becomes productive. The correct place, position, or holder for every tool, item, or material must be chosen carefully in relation to how the work will be performed and who will use them. Every single item must be allocated its own place for safekeeping, and each location must be labeled for easy identification of what it's for. Seiso

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Seiso, the third step in "5S", says that 'everyone is a janitor.' Seiso consists of cleaning up the workplace and giving it a 'shine'. Cleaning must be done by everyone in the organization, from operators to managers. It would be a good idea to have every area of the workplace assigned to a person or group of persons for cleaning. No area should be left uncleaned. Everyone should see the 'workplace' through the eyes of a visitor - always thinking if it is clean enough to make a good impression.

Seiketsu The fourth step of "5S", or seiketsu, more or less translates to 'standardized clean-up'. It consists of defining the standards by which personnel must measure and maintain 'cleanliness'. Seiketsu encompasses both personal and environmental cleanliness. Personnel must therefore practice 'seiketsu' starting with their personal tidiness. Visual management is an important ingredient of seiketsu. Color-coding and standardized coloration of surroundings are used for easier visual identification of anomalies in the surroundings. Personnel are trained to detect abnormalities using their five senses and to correct such abnormalities immediately. Shitsuke The last step of "5S", Shitsuke, means 'Discipline.' It denotes commitment to maintain orderliness and to practice the first 4 S as a way of life. The emphasis of shitsuke is elimination of bad habits and constant practice of good ones. Once true shitsuke is achieved, personnel voluntarily observe cleanliness and orderliness at all times, without having to be reminded by management.

******************************************************************************************************** Total Productive Maintenance (TPM)

refers to a management system for optimizing the productivity of manufacturing equipment through systematic equipment maintenance involving employees at all levels. Under TPM, everyone is involved in keeping the equipment in good working order to minimize production losses from equipment repairs, assists, set-ups, and the like. In the 1950s, equipment maintenance is not practiced to be preventive, and predominantly involves just the act of repairing a piece of equipment after it breaks down (breakdown maintenance). Factory managers eventually realized the importance of preventing equipment breakdowns in order to boost productivity. Thus, systems for subjecting equipment to scheduled maintenance activities in order to prevent unforeseen breakdowns (preventive maintenance) became popular. Under this scheme, equipment maintenance is the sole responsibility of technical personnel. In the 1970s, the concept of productive maintenance emerged, rolling into one system the following: preventive maintenance, equipment reliability engineering, equipment Page 2 of 17

maintainability engineering, and equipment engineering economics. Under this system, the technical or engineering group still has the main responsibility for equipment maintenance. The concept of true TPM wherein everyone from the operator to top management owns equipment maintenance came about shortly after. TPM embraces various disciplines to create a manufacturing environment wherein everyone feels that it is his or her responsibility to keep the equipment running and productive. Under TPM, operators no longer limit themselves to simply using the machine and calling the technician when a breakdown occurs. Operators can inspect, clean, lubricate, adjust, and even perform simple calibrations on their respective equipment. This frees the technical workforce for higher-level preventive maintenance activities that require more of their technical expertise. Management should also show interest in data concerning equipment uptime, utilization, and efficiency. In short, everyone understands that zero breakdowns, maximum productivity, and zero defects are goals to be shared by everyone under TPM. Aside from eliminating equipment downtimes, improving equipment productivity, and zeroing out defects, TPM has the following goals: improvement of personnel effectiveness and sense of ownership, reduction of operational costs, reduction of throughput times, and customer satisfaction down the road. TPM can not be implemented overnight. Normally it takes an organization at least two years to set an effective TPM system in place. TPM activities are carried out in small teams with specific tasks. Every level in the over-all organization must be represented by a team or more. TPM has 8 key strategies: 1) Focused Improvements (Kaizen); 2) Autonomous Maintenance; 3) Planned Maintenance; 4) Technical Training; 5) Early Equipment Management; 6) Quality Maintenance; 7) Administrative and Support Functions Management; 8) Safety and Environmental Management. TPM eliminates 6 big losses: 1) Breakdowns, which can result in long, expensive repairs; 2) Set-ups, conversions, and changeovers; 3) Idling and minor stoppages; 4) Reduced equipment speed; 5) Defects and Rework; 6) Start-up Losses. TPM requires the mastery of 4 equipment maintenance techniques: 1) Preventive Maintenance to prevent breakdowns; 2) Corrective Maintenance to modify or improve an equipment for increased reliability and easier maintenance; 3) Maintenance Prevention to design and install equipment that are maintenance-free; and 4) Breakdown Maintenance to repair equipment quickly after they break down.

******************************************************************************************************** Poka Yoke

is a quality management concept developed by a Matsushita manufacturing engineer named Shigeo Shingo to prevent human errors from occurring in the production line. Poka yoke (pronounced poh-kah yoh-kay) comes from two Japanese words yokeru which means to Page 3 of 17

avoid, and poka which means inadvertent errors. Thus, poka yoke more or less translates to avoiding inadvertent errors. Poka yoke is sometimes referred to in English by some people as fool-proofing. However, this doesnt sound politically correct if applied to employees, so the English equivalent used by Shingo was "error avoidance." Other variants like mistake proofing or fail-safe operation have likewise become popular. The main objective of poke yoke is to achieve zero defects. In fact, it is just one of the many components of Shingos Zero Quality Control (ZQC) system, the goal of which is to eliminate defective products. Poka yoke is more of a concept than a procedure. Thus, its implementation is governed by what people think they can do to prevent errors in their workplace, and not by a set of step-bystep instructions on how they should do their job. Poka yoke is implemented by using simple objects like fixtures, jigs, gadgets, warning devices, paper systems, and the like to prevent people from committing mistakes, even if they try to! These objects, known as poka yoke devices, are usually used to stop the machine and alert the operator if something is about to go wrong. Anybody can and should practice poka yoke in the workplace. Poke yoke does not entail any rocket science - sometimes it just needs common sense and the appropriate poka yoke device. Poka yoke devices should have the following characteristics: 1) useable by all workers; 2) simple to install; 3) does not require continuous attention from the operator (ideally, it should work even if the operator is not aware of it); 4) low-cost; 5) provides instantaneous feedback, prevention, or correction. A lot of Shingo's poka yoke devices cost less than $50! Of course, error-proofing can be achieved by extensive automation and computerization. However, this approach is expensive and complicated, and may not be practical for small operations. Besides, it defeats the original purpose of poka yoke, which is to reduce defects from mistakes through the simplest and lowest-cost manner possible. Poka yoke is at its best when it prevents mistakes, not when it merely catches them. Since human errors usually stem from people who get distracted, tired, confused, or demotivated, a good poka yoke solution is one that requires no attention from the operator. Such a poka yoke device will prevent the occurrence of mistake even if the operator loses focus in what she is doing. Examples of 'attention-free' Poke Yoke solutions: 1) A jig that prevents a part from being misoriented during loading 2) Non-symmetrical screw hole locations that would prevent a plate from being screwed down incorrectly 3) Electrical plugs that can only be inserted into the correct outlets 4) Notches on boards that only allow correct insertion into edge connectors 5) A flip-type cover over a button that will prevent the button from being accidentally pressed Three levels of Poka-Yoke: Page 4 of 17

1) Elimination of spills, leaks, losses at the source or prevention of a mistake from being committed 2) Detection of a loss or mistake as it occurs, allowing correction before it becomes a problem 3) Detection of a loss or mistake after it has occurred, just in time before it blows up into a major issue (least effective)

******************************************************************************************************** Kaizen,
a Japanese term that basically translates to 'continuous improvement' or 'change to become good', is a management concept originated by the Japanese in order to continuously effect incremental changes for the better, involving everybody within the organization from workers to managers. Kaizen is aimed at producing more and more value with less and less wastes (higher efficiency), attaining better working environment, and developing stable processes by standardization. This never-ending process of achieving small improvements within the company everyday is in contrast to trying to achieve breakthrough results from a large improvement once in a while. Kaizen as a management technique is therefore more suitable for organizations with a collective culture that is trying to achieve long-term gains from a continuous supply of small and less radical contributions from its employees. Kaizen implementation is said to operate on the following principles: 1) that human resources are the company's most important asset; 2) that success can not be achieved by some occasional radical changes alone, but more so by incremental yet consistently arriving improvements; and 3) that improvements must be based on a statistical or quantitative study of the performance of the process. Thus, under Kaizen, everyone is a valued contributor to the company's success, and must therefore be given the necessary education and training in order to contribute in his or her own way on a continuous basis. Everyone in the organization must genuinely believe in the idea of Kaizen and strive to achieve one small goal at a time, each of which is considered a step towards the company's over-all success. Every person must therefore be willing to: 1) learn; 2) communicate; 3) be disciplined; 4) get involved; and 5) change in order to maximize gains from Kaizen. Management must also be able to support this Kaizen structure by aligning resources, metrics, rewards, and incentives to Kaizen principles, encouraging all employees to contribute in their own ways. Management programs that promote Kaizen include but are not limited to the following: 1) employee suggestion systems; 2) recognition systems for employees who exert effort for continuous improvement; 3) group-oriented suggestion or improvement systems like Quality Circles (small groups that perform quality improvement activities); 4) JIT; 5) 5-S; 6) Total Productive Maintenance; and 7) Total Quality Management. Kaizen's Business Tenets: Page 5 of 17

1) Not a single day should pass without any kind of improvement anywhere in the company. 2) Improvement strategies must be driven by customer requirements and satisfaction. 3) Quality must always take a higher priority over profits. 4) Employees must be encouraged to recognize problems and suggest improvements to address these problems. 5) Problems must be solved by a collaborative and systematic approach through crossfunctional teams. 6) Process-oriented thinking (as opposed to results-oriented thinking) must be practiced by everyone, so that every process gets continuously improved from time to time.

See Also: Lean Manufacturing; Just-In-Time (JIT); TPM; TQM; SPC; 6-Sigma; 5S Process; Poka-Yoke HOME Copyright 2003-2004 SiliconFarEast.com. All Rights Reserved.

******************************************************************************************************** Total Quality Management i

Is a structured system for managing the quality of products, processes, and resources of an organization in order to satisfy its internal and external customers, as well as its suppliers. Its main objective is sustained (if not progressive) customer satisfaction through continuous improvement, which is accomplished by systematic methods for problem solving, breakthrough achievement, and sustenance of good results (standardization). There is no standard or hard-line procedure for implementing TQM. Every company can practice TQM in a manner it sees best for its organization. However, a companys TQM program must always be structured and internally standardized, i.e., everyone within an organization must practice TQM in the structured manner set forth by management. Most companies today have chosen to adopt a TQM program thats patterned after an already established TQM model, e.g., the Deming Application Prize, the Malcolm Baldrige Criteria for Performance Excellence, the ISO Series of Standards, etc. TQM may be considered as a collection of principles and processes that have been proven to be effective in business quality management over time. It goes back to the teachings of Drucker, Juran, Deming, Ishikawa, etc, who each have studied and developed ideas for improving organizational management. Page 6 of 17

A very simple model of TQM consists of the following steps: 1) The company reviews the needs of its customers and if these are being delivered by the company; 2) The company plans the activities needed (both day-to-day and long-term activities) to meet these customer needs; 3) The company establishes and stabilizes the processes required to deliver the products and services needed by the customer; 4) The company implements systems to further improve its processes, products, and services. Note that Steps 1-4 above constitute a cycle, and may be iterated indefinitely for continuous improvement. Principles of TQM 1) Quality can and must be managed. 2) Everyone has a customer to delight. 3) Processes, not the people, are the problem. 4) Every employee is responsible for quality. 5) Problems must be prevented, not just fixed. 6) Quality must be measured so it can be controlled. 7) Quality improvements must be continuous. 8) Quality goals must be based on customer requirements

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The SDCA Cycle The Standardize-Do-Check-Act (SDCA) cycle is a popular model for establishing and stabilizing a process. A process needs to be stabilized through standardization to make it more measurable, predictable, and controllable. Improvements can not and must not be made to a process unless it is stable. As its name indicates, it has 4 distinct steps: 1) Standardization, which refers to the definition and documentation of operating procedures, process requirements, and other process specifications to ensure that the process is always executed in a standard and repeatable manner; 2) Doing, which refers to conformance to the defined standards; 3) Checking, which is the act of verifying if conformance to the standards results in process stability (high process Cpk); and 4) Action, which is the response appropriate for the observed effects of the standards. In step 4, if the process has become stable with implementation of the standards, then the standards are made permanent and even deployed more widely. If the effects on Page 7 of 17

process stability are negligible or even negative, the cycle is repeated using a different set of standard specifications.

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The PDCA Cycle The Plan-Do-Check-Act (PDCA) cycle, also known as the Shewhart Cycle or the Deming Cycle, is a popular model for continuous improvement. As the name indicates, it consists of 4 distinct steps: 1) Planning, which refers to the act of identifying opportunities for improvement and identifying ways of achieving these improvements; 2) Doing, which refers to the actual implementation of the actions needed to effect the change; 3) Checking, which refers to the act of verifying whether the implemented changes resulted in the desired improvements; and 4) Action, which is what one does in response to the effects observed. In step 4, if the effects observed are the desired improvements, then the actions implemented are made permanent and even deployed more widely. If the effects are negligible or even negative, the cycle is repeated using a different plan of action.

******************************************************************************************************** Cellular Manufacturing (CM)

Refers to a manufacturing system wherein the equipment and workstations are arranged in an efficient sequence that allows a continuous and smooth movement of inventories and materials to produce products from start to finish in a single process flow, while incurring minimal transport or waiting time, or any delay for that matter. CM is an important ingredient of lean manufacturing. In order to set up a single process flow (or single product flow) line, it is necessary to locate all the different equipment needed to manufacture the product together in the same production area. This is in contrast with the traditional 'batch and queue' set-up wherein only similar equipment is put in the same area. Under a 'batch and queue' set-up, products that need to undergo processing under a certain equipment need to be transported to the area where the equipment are located. There they are queued for processing in batches. Such a system sometimes results in transport and batching delays. In a single process flow set-up, the products simply transfer from one equipment to the next along the same production line in a free-flowing manner, avoiding transport and batching delays. The single process flow set-up described above is an example of a 'work cell'. A work cell is defined as a collection of equipment and workstations arranged in a single area that allows a product or group of similar products to be processed completely from start to finish. It is, in Page 8 of 17

essence, a self-contained mini-production line that caters to a group of products that undergo the same production process. Cellular manufacturing involves the use of work 'cells', which is how it got its name. Since differently-processed products need different work cells, a large company with diversified products needs to build several, different work cells if single process flows are desired. Given enough volume of products to work with, work cells have been proven by experience to be faster and more efficient in manufacturing than 'batch and queue' systems. Because of the free flow of materials in cellular manufacturing, it has the ability to produce products just in time. This means that every unit processed at one station will get processed in the next station. As such, no inventories that have already undergone processing at one station will be left unprocessed in another station. This prevents the build-up of non-moving inventories, which are products that have already incurred some production costs but can not generate revenues because they are stuck somewhere along the process. Aside from preventing non-moving inventories, process issues are immediately detected by just-in-time production, since defective products are seen earlier than if products are manufactured in large batches and queued. One technique that cellular manufacturing can use to achieve 'just-in-time' production is the 'pull system', wherein required inventories and materials are requested or 'pulled in' by each station from the station preceding it. This 'pull' can originate from the end customer itself, thereby ensuring that the products manufactured are only those needed to satisfy a customer order. This prevents wastes from products not being sold. It is not enough to simply arrange different equipment in sequence to make cellular manufacturing really work. Bottlenecks along the single process flow must be eliminated, usually by balancing the equipment capacities with each other. If bottlenecks exist, then the higher-capacity equipment within the line will be underutilized. Balancing equipment capacities may mean: 1) choosing 'right-sized' equipment that match each other; and/or 2) combining two or more smaller capacity equipment to match one larger-capacity equipment. If properly implemented, the benefits of cellular manufacturing include: 1) higher production efficiency; 2) elimination of waste; 3) reduced inventory levels; 4) optimized use of floor space; 5) shorter production cycle times; 6) higher effective manufacturing capacity; and 7) improved customer response time. As a result, the over-all production cost becomes lower and profits become greater.

******************************************************************************************************** Lean Manufacturing

, or Lean Production, refers to a business concept wherein the goal is to minimize the amount of time and resources used in the manufacturing processes and other activities of an enterprise, with emphasis on eliminating all forms of wastage. It is basically the fusion of various management philosophies designed to make operations as efficient as possible. Business philosophies invoked by lean manufacturing include Just-in-Time (JIT) Manufacturing, Kaizen, Total Quality Management (TQM), Total Productive Maintenance Page 9 of 17

(TPM), Cellular Manufacturing, and the like. The roots of lean manufacturing can be traced to Japan, or more specifically, Toyota. Lean manufacturing operates on three principles: 1) that 'muda', or waste, is bad; 2) that the manufacturing processes must be closely tied to the market's requirements; and 3) that a company should be seen as a continuous and uniform whole that includes its customers and suppliers, a concept known as 'value stream'. Lean manufacturing is not merely a tool - it is a way of life that all members of an organization must appreciate, and practice. The basic elements of lean manufacturing are: 1) just-in-time, higher efficiency manufacturing through the principle of 'continuous product flow' (also known as 'single piece workflow' ); 2) continuous improvement of processes along the entire value chain, primarily in terms of quality and cost; and 3) setting up of multi-functional and multi-skilled teams at all levels to achieve its goals. Lean manufacturing is, in essence, the 21st century's upgraded version of the 20th century's 'mass-production' philosophy. Among these elements, the most eye-catching is perhaps the 'continuous product flow', which entails the redesign of the production floor such that a product is manufactured progressively from one workstation to another with minimal waiting time and handling operations between stations. This may mean the dedication of an entire process line to a group of similar products, or a group of products that undergo similar processing. The equipment and worktables are arranged in a 'streamlined' lay-out that keeps production continuous and efficient. Such a manufacturing set-up is also known as 'cellular manufacturing'. Attention to machine maintenance, up-time, and utilization is also a 'must.' According to lean manufacturing, the following are forms of 'waste' and should be eliminated: 1) waiting; 2) staging of inventories; 3) transport of inventories; 4) overproduction; 5) overprocessing; 6) unnecessary motion; and 7) defective units. By adopting a production floor that conforms to continuous product flow, these wastes can be reduced. Another technique is through the practice of 'customer pull', which means that only products that are immediately needed by the customer (or the next station) must be produced. Thus, a station needing inventories to process should be the one to 'pull in' these inventories from the previous station. Kaizen, or the Japanese concept of 'continuous improvement', is a major influence on lean manufacturing. This is why lean manufacturing promotes teamwork among multi-skilled, multifunctional individuals at all levels to effect the continuous achievement of process improvements toward zero non-moving inventories, zero downtimes, zero paper, zero defects, and zero delays all throughout the organization. Benefits realized by companies that implemented lean manufacturing include: 1) waste reduction, and therefore, production cost reduction; 2) shorter manufacturing cycle times; 3) lower manpower requirements; 4) minimal inventories; 5) higher equipment utilization and manufacturing capacity; 6) improved cash flow; 7) higher product quality and reliability; and 8) better customer service. The profits of the company are, as expected, also increased because of these benefits.

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6-Sigma
refers to a quality improvement and business strategy concept started by Motorola in the United States in 1987. In statistical terms, 6-Sigma is the abbreviated form of 6 standard deviations from the mean, which mathematically translates to about 2 defects per billion. Thus, strictly speaking, your process is said to have achieved 6-sigma if it is producing no more than 2 defects per billion parts produced. No company is probably nearly perfect enough to achieve this quality level. Consequently, the term 6-Sigma in the industry has somehow taken on the equivalent defect rate of 3.4 ppm, which in reality corresponds to roughly 4.5 sigmas. Thus, in the industry today, a person speaking of 6-sigma is most likely referring to a quality level equivalent to 3.4 defects per million. Regardless of how one wishes to use the term 6-sigma, though, it is apparent that its purpose when its concept was first incepted is to make processes as consistent as possible in order to reduce the defect rates of their outputs. Consistency of meeting customer specifications as well as the probability of meeting them consistently in the future is the essence of 6-sigma. To see how the number of sigmas relates to the process Cpk and the process ppm level, please refer to the Cpk/ppm Table. 6-Sigma has evolved into a continuous, disciplined, and structured process of improving operations to make products that are consistently meeting customer requirements. In effect, 6Sigma no longer simply means excellent finished products, but more importantly, excellent processes, services, and administration. When Motorola started 6-Sigma in the 80's, it was applied to repetitive manufacturing processes. Presently, however, the use of 6-Sigma is wellestablished in almost all aspects of doing business in a wide range of industries. 6-Sigma encourages leanness, simplicity, and doing things right the first time, so that wastes and corresponding costs are avoided. Statistics-based problem solving, results-orientation, and quantifiable top and bottom-line returns are also ingredients of 6-Sigma. Lastly, 6-Sigma is driven by the voice of the customer. 6-Sigma has spawned several Project Management methods, the most widely-used of which are discussed below. Define, Measure, Analyze, Improve, and Control (DMAIC) 'DMAIC' stands for the following: 1) Define opportunities, i.e., project goals in relation to customer requirements; 2) Measure the current performance of the process; 3) Analyze the weakness of the process (such as sources of defects); this process weakness is also the opportunity for its improvement; 4) Improve the performance of the process by addressing its weaknesses; and Page 11 of 17

5) Control the performance of the improved process to sustain its gains. The DMAIC method is employed in situations wherein a product or process already exists but it is not meeting customer specifications.

Analytical Approach (to management improvement) - an approach based on learning

from the evaluation of past experience.

Andon - a system of flashing lights used to indicate production status in one or more work
centers; the number of lights and their possible colors can vary, even by work center within a plant; however, the traditional colors and their meanings are: green no problems yellow situation requires attention red production stopped; attention urgently needed

Autonomation (English translation of Jidohka) a form of automation in which

machinery automatically inspects each item after producing it, ceasing production and notifying humans if a defect is detected; Toyota expands the meaning of jidohka to include the responsibility of all workers to function similarly, i.e. to check every item produced and to make no more if a defect is detected, until the cause of the defect has been identified and corrected.

Baka-yoke a manufacturing technique of preventing mistakes by designing the

manufacturing process, equipment, and tools so that an operation literally cannot be performed incorrectly; an attempt to perform incorrectly, as well as being prevented, is usually met with a warning signal of some sort; the term "poka-yoke" is sometimes referred to as a system where only a warning is provided.

Check Points and Control Points used in measuring the progress of improvementrelated activities between different managerial levels. Check points represent processoriented criteria. Control points represent result-oriented criteria. What is the check point to a manager becomes a control point to the next-level manager. For this reason, check points and control points are also used in policy deployment.

Continuous Improvement Firm (CIF) a firm continuously improving on the value

that customers perceive in its products due to improvements in productivity initiated by the members of the general work force. Productivity in CIF is broadly defined to include all facets of product quality as well as output per worker. A basic operating principle of the CIF is that improvements in product quality often produce simultaneous reductions in costs. The ultimate competitive goal of the CIF is the ability to produce consumer goods on a custom basis for almost instantaneous delivery at costs lower than those featured by standard mass production firms. The flexible CIF ideally produces to customer demand. The key to achieving this flexibility and lower unit cost lies in generalization of the work force. (See also The 3 Basic Principles of Continuous Improvement)

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Cross-Functional Management the inter-departmental coordination required to

realize the policy goals of a Kaizen and Total Quality Control (TQC) program. After corporate strategy and planning are determined, top management sets objectives for crossfunctional efforts that cut laterally throughout the organization. Cross functional management is the major organizational tool for realizing TQC improvement goals. It is distinguished by an intensive focus on the follow-through to achieve the success of goals and measures.

Company-Wide Quality Control (CWQC) see "Total Quality Control (TQC)" Cycle Time - the normal time to complete an operation on a product. This in NOT the
same as takt time, which is the allowable time to produce one product at the rate customers are demanding it.

Deming Cycle the concept of continuously rotating wheel used by W. E. Deming to

emphasize the necessity of constant interaction among research, design, production, and sales so as to arrive at an improved quality that satisfies customers (see PDCA Cycle).

Design Approach (to management improvement) tries to build a better approach

through predetermined goals.

Flexible Manufacturing System (FMS) an integrated manufacturing capability to

produce small numbers of a great variety of items at low unit cost; an FMS is also characterized by low changeover time and rapid response time.

Heijunka a production scheduling / load leveling tool, essentially to distribute kamban

cards in an efficient manner.

Improvement as a part of a successful Kaizen strategy, "improvement" goes beyond

the dictionary definition of the word. Improvement is a mindset of maintaining and improving standards. In a still broader sense, improvement can be defined as Kaizen and Innovation, where a Kaizen strategy maintains and improves working standards through small, gradual improvements, and innovation calls for radical improvements as a result of large investments in technology, processes, and/or equipment. The Kaizen strategy clearly delineates responsibilities: workers are to maintain standards, and managers are to improve standards. The Japanese perception of management boils down to one precept: maintain and improve standards.

Jidohka see "Autonomation" Jishu Kanri self-management, or voluntary participation. Just-In-Time (JIT) a process broadly aimed at increasing value-added and eliminating
waste; a production scheduling and inventory control technique that calls for any item needed at a production operation - whether raw material, finished item, or anything in between, to be produced and available precisely when needed, neither a moment earlier nor a moment later. JIT was designed at Toyota specifically to cut waste in production.

Jutsu the art of something (i.e., 'leanjutsu: the art of lean production'). Kaikaku A rapid and radical change process, sometimes used as a precursor to Kaizen
activities. (See also 10 Kaikaku Commandments) Page 13 of 17

Kaizen the philosophy of continual improvement, that every process can and should be
continually evaluated and improved in terms of time required, resources used, resultant quality, and other aspects relevant to the process. When applied to the workplace, Kaizen means continuing improvement involving everyone managers and workers alike. Kaizen is not limited to manufacturing systems only. It also means continuing improvement in personal life, home life, social life, and working life. Implementing Kaizen: 7 Conditions Kaizen (25 PowerPoint slides by Factory Strategies Group LLC)

Kamban a communication tool in the "just-in-time" production and inventory control

system which authorizes production or movement. It was developed by Taiichi Ohno at Toyota. Kamban is a card or signboard ( or any other authorizing device) that is attached to specific parts in the production line signifying the delivery of a given quantity. The quantity authorized per individual kamban is minimal, ideally one. The number of circulating or available kamban for an item is determined by the demand rate for the item and the time required to produce or acquire more. This number generally is established and remains unchanged unless demand or other circumstances are altered dramatically; in this way inventory is kept under control while production is forced to keep pace with shipment volume. A routine exception to this rule is that managers and workers are continually exhorted to improve their processes and thereby reduce the number of kamban required. When fully implemented, kamban (the plural is the same as the singular) operates according to the following rules: All production and movement of parts and material take place only as required by a downstream operation, i.e. all manufacturing and procurement are ultimately driven by the requirements of final assembly or the equivalent. Kamban have various formats and content as appropriate for their usage; for example, a kamban for a vendor is different than a kamban for an internal machining operation.

Karoshi death from overwork. Lean Manufacturing or Lean Production the philosophy of continually reducing waste
in all areas and in all forms; an English phrase coined to summarize Japanese manufacturing techniques (specifically, the Toyota Production System).

Line Balancing equalizing cycle times [productive capacity, assuming 100% capacity
utilization] for relatively small units of the manufacturing process, through proper assignment of workers and machines; ensures smooth production flow.

Maintenance activities that are directed to maintaining current technological,

managerial, and operating standards.

Mixed-model production capability to produce a variety of models, that in fact differ

in labor and material content, on the same production line; allows for efficient utilization of resources while providing rapid response to marketplace demands.

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Mokeru the Japanese term for the industrial engineering, more properly translated as
"profit-making industrial engineering"

Muda (waste) activities and results to be eliminated; within manufacturing, categories

of 7 waste, according to Shigeo Shingo, include: 1. 2. 3. 4. 5. 6. 7. Overproduction excess production and early production Waiting waste time spent at the machine; delays Transportation waste involved in the movement and transportation of units Processing waste in processing; poor process design Inventory waste in taking inventory Motion actions of people or machinery that do not add value to the product Defective units production of an item that is scrapped or required rework

Mura inconsistency Muri unreasonableness Nagara smooth production flow, ideally one piece at a time, characterized by
synchronization [balancing] of production processes and maximum utilization of available time, including overlapping of operations where practical.

Ninjutsu the art of invisibility (applies to management) PDCA Cycle (plan, do, check, action) an adaptation of the Deming wheel. While the
Deming wheel stresses the need for constant interaction among research, design, production, and sales, the PDCA Cycle asserts that every managerial action can be improved by careful application of the sequence: plan, do, check, action. Later Deming modified PDCA to "Plan, Do, Study, Act" (PDSA) so as to better describe the nature of continuous improvement. (see also SDCA Cycle).

Poka-Yoke a defect warning system Policy (in Japanese management) describes long- and medium-range management
orientations as well as annual goals or targets. Another aspect of policy is that it is composed of both goals and measures. Goals are usually quantitative figures established by top management, such as sales, profit, and market share targets. Measures, on the other hand, are the specific action programs to achieve these goals. A goal that is not expressed in terms of such specific measures is merely a slogan. It is imperative that top management determine both the goals and the measures and then "deploy" them down throughout the organization.

Policy Deployment the process of implementing the policies of a Kaizen program

directly through line managers and indirectly through cross-functional organization.

Policy Prioritization a technique to ensure maximum utilization of resources at all

levels of management in the process of policy deployment. Top management's policy statement must be restated at all management levels in increasingly specific and action oriented goals, eventually becoming precise quantitative values.

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Pull System a process for production by reducing inventories; a manufacturing

planning system based on communication of actual real-time needs from downstream operations ultimately final assembly or the equivalent as opposed to a push system which schedules upstream operations according to theoretical downstream results based on a plan which may not be current.

SDCA Cycle (standardize, do, check, action) - a refinement of the PDCA Cycle wherein
management decides first to establish the standard before performing the regular PDCA function.

Seiban - the name of a Japanese management practice taken from the Japanese words
"sei", which means manufacturing, and "ban", which means number. A Seiban number is assigned to all parts, materials, and purchase orders associated with a particular customer job, or with a project, or anything else. This enables a manufacturer to track everything related with a particular product, project, or customer. It also facilitates setting aside inventory for specific projects or priorities. That makes it great for project and build-to-order manufacturing.

Sensei - one who provides information; a teacher, instructor, or rabbi. Setup Time - work required to change over a machine or process from one item or
operation to the next item or operation; can be divided into two types: 1. 2. Internal: setup work that can be done only when the machine or process is not actively engaged in production; OR External: setup work that can be done concurrently with the machine or process performing production duties.

Setup-Time Reduction a process for improving production by reducing inventories Shojinka - continually optimizing the number of workers in a work center to meet the type
and volume of demand imposed on the work center; shojinka requires workers trained in multiple disciplines; work center layout, such as U-shaped or circular, that supports a variable number of workers performing the tasks in the layout; the capability to vary the manufacturing process as appropriate to fit the demand profile.

Single Minute Exchange of Die (SMED) literally, changing a die on a forming or

stamping machine in a minute or less; broadly, the ability to perform any setup activity in a minute or less of machine or process downtime; the key to doing this is frequently the capability to convert internal setup time to external setup time; variations on SMED include: Single-digit setup performing a setup activity in a single-digit number of minutes, i.e. fewer than ten. One touch exchange of die (OTED) literally, changing a die with one physical motion such as pushing a button; broadly, an extremely simple procedure for performing a setup activity.

Takt Time takt, is a German term for rhythm. Takt time is the allowable time to
produce one product at the rate customers are demanding it . This is NOT the same as cycle time, which is the normal time to complete an operation on a product (which should be less than or equal to takt time). Page 16 of 17

Teian a proposal, proposition, or suggestion. A teian system can be likened to a system

which allows and encourages workers to actively propose process and product improvements.

Total Quality Control (TQC) - organized Kaizen activities involving everyone in the
company - managers and workers - in a totally integrated effort toward improving performance at every level. This improved performance is directed toward satisfying such cross-functional goals as quality, cost, scheduling, manpower development, and new product development. It is assumed that these activities ultimately lead to increased customer satisfaction. (Also referred to as CWQC Company-Wide Quality Control.)

Toyota changed from the true form, Toyoda, meaning abundant rice field, by the Toyota
marketing department. Toyoda is the family name of the founders of the Toyota Motor Company. Toyota Production System see "Lean Production"

WCM world class manufacturing is the philosophy of being the best, the fastest, and the
lowest cost producer of a product or service. It implies the constant improvement of products , processes, and services to remain an industry leader and provide the best choice for customers, regardless of where they are in the process.

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