LEAN TERMS

Andon
A signaling device to show a process issue. Most commonly seen as a red light that comes on when a
machine comes to a stop.
Cell
A cell typically is any group of processes that can be done at near one piece flow efficiency.
Changeover
This is the measure of time it takes when switching from one product to another in a process. It will vary
from setup in that there are typically less adjustments in a product changeover.
Continuous Flow
This is the ultimate goal in producing a product. Continuous flow is where the product moves from one
value added process to another in as near one piece batches as possible.
Cycle Time
This is the time it takes for a product to move through a specific process.
Demand Amplification
Also called the bullwhip effect. This is the exaggerated adjustment made between processes or plants to
adjust to just in case scenarios of product demand fluctuations.
Downstream
This is typically used to discuss which way a product or process is moving. Downstream takes you closer
to the consumer.
FIFO Lane
Theses are used to regulate processes that cannot be converted to a pull environment. FIFO lanes
ensure that only a certain number of parts are passed to the next (or Downstream) process.
Five Whys
This is a root cause process to help determine the cause of what is seen as a symptom. Asking why five
times will typically get you close to root cause.
Gemba
This is the term for where value added work takes place, most commonly a production floor.
Heijunka
A term for level loading a process by product type and quantity to meet takt time.
Inventory
Materials in the value stream that will eventually become finished goods.
Inventory Turns
I have seen this calculated in two different methods. The most common is annual sales divided by
average inventory value. A second method is to use annual cost of goods sold divided by average
inventory value.
Jidoka
The concept of having a process stop when an abnormality or bad part is detected.
Kaizen
The focused improvement of a value stream (system Kaizen) or individual process (point Kaize).
Kanban
A signaling device used in pull systems. It can be visual cards, signs or simply empty space.
Milk Run
Setting up frequent multi stop pickup and drop-offs of materials.
Mistake Proofing
Setting up a process to make it near impossible to complete wrong.
Monument
Typically something within a process that causes all other elements of the process to work around it. Not
to be confused with a pacemaker which controls production flow. This item is more like a machine so
large that it is more practical to design the cell around it than to move it.
Muda
The Japanese term for waste.
OEE (also known as overall equipment efficiency)
A measurement tool to determine how effectively equipment is being utilized. The basic calculation is
available time x performance rate x quality rate.

Pacemaker
The pacemaker is the process selected to pace the flow of production. It is typically the single scheduling
point in the value stream. The pacemaker is not a bottleneck, simply the position in the flow that is most
appropriate to schedule from.
PDCA
Plan, Do, Check, Act. The four stages of managing change in a process. Also known as the Deming
cycle.
POUS
Point of Use Storage. Storing necessary parts as close to the point of consumption as possible.
Poka-Yoke
Setting up a process to make it near impossible to complete wrong. Also known as mistake-proofing.
Push
Typically associated with batch production. Where products are made and pushed to the next process
with no regard to need and ideal batch sizes.
Seven Wastes
Overproduction: Making more than the customers requirements.
Wait time: Time spent sitting still between processes.
Transport: Handling the part not related to value added activity.
Inventory: Having materials just in case vs. just in time.
Non Value Added processes (NVA):
Motion: Operator movements not related to value adding.
Defects: Waste created from the effort of rework or scrap.
SMED
Single Minute Exchange of Dies, also referred to as quick changeover. The process of reducing any setup
and changeover processes to minimize loss of available machine time.
Standard Work
The process of setting up a standardized process to eliminate variability and create a documented
benchmark.
Supermarket
An inventory staging location established to supply a downstream consumer that cannot be balanced with
the upstream producer in a flow situation. These are typically set up with a kanban system for
replenishment.
Takt Time
This is available production time divided by consumer demand. This is the pace at which work must be
completed to get the customer what they want when they want it.
TPM
Total Productive Maintenance. An extensive set of processes or techniques to ensure that machine
uptime is maximized.
Value Stream
A value stream is the combination of all actions and activities required to deliver a product to the
customer.
Waterspider
A common term for material handler or line supplier