Lean Thinking: The dynamic, knowledge-driven, and customer-focused process through which all

people in a defined enterprise continuously eliminate waste and create value.

Sigma: The standard deviation of a distribution of data.
Six sigma: a data driven philosophy and methodology to eliminate variation from all enterprise processes,
named after sigma, the term for standard deviation.
5 Lean Thinking Fundamentals: specify value, identify value stream, make value flow continuously
(batch process: hundred of products and then pass them, pull system: one by one continues), let customers
pull value and pursue perfection.
Specify Value: Value Added Activity (transforms or shapes material or information, done right the first
time, the customer pays for it). Non Value Added Activity: Necessary Waste (no value is created but cant
be eliminated) or Pure Waste (consumes resources but creates no value in the eyes of the customer.
Specify Value Stream: manufacturing flows material, design and services flow information and human
services flow people. Muda: pure waste (Useless). Muri: overburden of people or equipment
(Impossible). Mura: Unevenness, irregular or fluctuation production (Irregularity)
8 types of waste: Overproduction, excess inventory, transportation, delays, defective products, over-
processing, wasted motions and waste of human talent.
Gemba: or Waste Muda walk is a basic tenet of lean thinking, go to the place where work is being done
and observe first hand the process in action.
Genchi genbutsu: The act of going to the gemba to observe the actual work being done and talking to the
actual people doing the work.
Flow: focus on what is flowing through the process. Do not be limited by organizational boundaries.
Eliminate bottlenecks, minimize buffers.
Flow chart: A diagram representing a process or algorithm, showing each process step in a {box, triangle,
diamond, bubble…} connected to other {boxes…} with lines showing flow of {material, information}.
Incoming {material, information} is from “suppliers” while outgoing {material,
Bottleneck: The activity with the greatest utilization or load. In a balanced work process, there are no
bottlenecks
Wait time: the time Work In Progress (WIP) is idle in queues, buffers or storage.
Cycle time: The time required to execute all the activities in a process. Other names include lead time or
span time or throughput time. Cycle time includes processing time and wait time.
Processing time: the time that activities are being performed on WIP. Processing time may consist of
Value Added Time (VAT) and Non Value Added Time (NVAT). Touch time (TT), In Process Time (IPT),
Response Time (RT), Activity Time.
Batch and queue: The practice of a given work station processing multiple units at one time (a batch),
placing the outputs into a buffer (a queue) for the next step in the workflow
Push System: A system where an upstream activity delivers output as completed into a buffer or
inventory for the next downstream activity
Pull System: each activity delivers its output just as the next activity. Creating Pull consists of the
costumer is the beginning and we go backwards; and if cycle time is equal or less the customer
expectation time.
Kanban: it is a tool to help inventory to balance the system.
Kaizen: The Japanese word for continuous improvement. It means constant improvement in an unending
series of small steps.
Kitting: Combining all relevant material, parts, and/or information into a single package that can be
delivered to the point-of-use in a process to reduce unnecessary movement.
Takt time: or stroke time, is the time that takes to do a stroke. The formula is available time divided by
customer demand rate for available time.
Littles Law: A conservation law for process flow expressed as WIP = (throughput rate) x (cycle time) =
(cycle time)/(takt time). average values of work in progress (WIP) cycle time and takt time satisfy Little´s
product
Law. L=λ∗W . L: average number in Line, λ : arrival rate (person∨ ), W: average
hr
waiting time per customer.
Standard Work: best process currently known, tomorrow it can be better based on continuous
improvement.
Single Piece Flow: processing one unit at a time through all the steps to completion. Low inventory
levels, defects immediately found. Batch and Queue (method to achieve single piece flow)
Visual Control: helps identify the status process at a glance.
Spaghetti chart: A plot that traces the movement of a person or object throughout a work cycle.
Andon: specific visual control to supervise each step of the workflow. usually a set of redyellow-green
lights, to show the current status of a process station.
Pursue Perfection: let customers demand pull value through the value stream. Eliminate waste
continuously in the process. 5 Whys help to achieve perfection to look the root cause. Different
people may arrive at different root causes.
Cause and effect diagram: A root cause analysis tool to help identify the cause(s) of a particular event.
The event is put at the “head” of the fishbone and the spines are used to group possible causes into
categories.
Process Mapping: a flow chart which gives a pictorial representation of the process as it really is.
Various levels of detail are used to described what influences the process.
Symbols: rectangle: denotes a task in the process, diamond: denotes a decision to be made in the process,
oval: used to show materials, information or actions to start the process or to show the result at the end.
Triangle: denotes inventory.
Value Stream Mapping: it is a tool used to improve a process by identifying added value and eliminating
waste.
Castle wall: A graphical technique used on value stream maps that has alternating high and low flats,
thereby looking like a rampart. Touch times for an activity are put on the low or high flat and wait times
between activities on the other flat.
Poka-Yoke: means to mistake proof the process by elimination of error prove components, amplification
of human senses and redundancy in design. It is important to reduce costs.
Steps to Poka-Yoke: 1.Quality 2.Utilize a Team Environment 3.Elimination of Errors 4.Eliminate the
Root Cause of the Errors 5.Do it right the first time 6.Eliminate Nonvalue Added Decisions 7.Implement
an Incremental Continual Improvement Approach.
Key Elements of Zero Defect Quality: point of origin inspection(proactive approach) and informative
inspection (Reactive Approach).
Poka-Yoke system Approaches: 1. Control Approach, shuts down the process when an error occurs 2.
Warning Approach, signal the operator to stop the process and correct the problem
5S (Housekeeping): 1.Seiri (proper management or sort) 2.Seiton (orderliness or straighten), 3.Seiso
(personal cleanliness or scrub/shine), 4.Seiketsu (standardization or standardize), 5.Shitsuke (personal
disciplines or sustain) 6: Safety
Visual Management: is a technique for creating a workplace embracing visual communication and
control throughout the workplace. It is aim to achieve identification, information, instruction and
planning. There are 2 types displays and controls. The benefits are supports elimination of waste,
promotes improvement, exposes abnormalities and enables quick response and recovery. Promotes safety.
Examples floor outlines, color coding, production board.