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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 Fords 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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INTRODUCTION TO LEAN MANUFACTURING


From Wikipedia, the free encyclopedia Lean manufacturing is a management philosophy focusing on reduction of the 7 wastes (Over-production, Waiting time, Transportation, Processing, Inventory, Motion and Scrap) in manufactured products. By eliminating waste (muda), quality is improved, production time is reduced and cost is reduced. Lean "tools" include constant process analysis (kaizen), "pull" production (by means of kanban) and mistake-proofing (poka yoke). One crucial insight is that most costs are assigned when a product is designed. Often an engineer will specify familiar, safe materials and processes rather than inexpensive, efficient ones. This reduces project risk, that is, the cost to the engineer, while increasing financial risks, and decreasing profits. Good organizations develop and review checklists to review product designs. The key lean manufacturing principles: Perfect first-time quality - quest for zero defects, revealing & solving problems at the source Waste minimization eliminating all activities that do not add value & safety nets, maximize use of scarce resources (capital, people and land) Continuous improvement reducing costs, improving quality, increasing productivity and information sharing Pull processing: products are pulled from the consumer end, 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, cost sharing and information sharing arrangements.

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. History of Lean Manufacturing The basic principles of lean manufacturing date back to at least Benjamin Franklin. Poor Richard's Almanack says of wasted time (a basic principle of the Theory of Constraints), "He that idly loses 5s. [shillings] worth of time, loses 5s., and might as prudently throw 5s. into the river. He that loses 5s. not only loses that sum, but all the other advantages that might be made by turning it in dealing, which, by the time a young man becomes old, amounts to a comfortable bag of money." He added that avoiding unnecessary costs could be more profitable than increasing sales: "A penny saved is two pence clear. A pin a-day is a groat a-year. Save and have." Franklin's The Way to Wealth says the following about carrying unnecessary inventory, a concept that appeared two centuries later in Eliyahu Goldratt's The Goal. "You call them goods; but, if you do not take care, they will prove evils to some of you. You expect they will be sold cheap, and, perhaps, they may [be bought] for less than they cost; but, if you have no occasion for them, they must be dear to you. Remember what Poor Richard says, 'Buy what thou hast no need of, and ere long thou shalt sell thy necessaries.' And again, 'At a great penny worth pause a while:' He means, that perhaps the cheapest is apparent only, and not real; or the bargain, by straightening thee in the business [reducing your available cash, i.e. straightening your circumstances], may do thee more harm than good. For in another place he says, 'Many have been ruined by buying good penny worths'." Henry Ford cited Franklin as a major influence on his own business practices, which included Just-in-time manufacturing. The concept of waste being built into jobs and then taken for granted was noticed by motion efficiency expert Frank Gilbreth, who saw that masons bent over to pick up bricks from the ground. The bricklayer was therefore lowering and raising his entire upper body to get a 5 pound (2.3 kg) brick but this inefficiency had been built into the job through long practice. Introduction of a non-stooping scaffold, which delivered the bricks at waist level, allowed masons to work about three times as quickly, and with less effort. Frederick Winslow Taylor, the father of scientific management, introduced what are now called standardization and best practice deployment: "And whenever a workman proposes an improvement, it should be the policy of the management to make a careful analysis of the new method, and if necessary conduct a series of experiments to determine accurately the relative merit of the new suggestion and of the old standard. And whenever the new method is found to be markedly

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superior to the old, it should be adopted as the standard for the whole establishment" (Principles of Scientific Management, 1911). Taylor also warned explicitly against cutting piece rates (or, by implication, 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, 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, just doing what he is told] can prevent it." This is now a foundation of lean manufacturing, because it is obvious that workers will not drive improvements they think will put them out of work. Shigeo Shingo, the best-known exponent of single-minute exchange of die (SMED) and error-proofing or poka-yoke, cites Principles of Scientific Management as his inspiration (Andrew Dillon, translator, 1987. The Sayings of Shigeo Shingo: Key Strategies for Plant Improvement). American industrialists recognized the threat of cheap offshore labor to American workers during the 1910s, and what is now called lean manufacturing was explicitly regarded as a countermeasure. Henry Towne, past President of the American Society of Mechanical Engineers, wrote in the Foreword to Frederick Winslow Taylor's Shop Management (1911), "We are justly proud of the high wage rates which prevail throughout our country, and jealous of any interference with them by the products of the cheaper labor of other countries. To maintain this condition, to strengthen our control of home markets, and, above all, to broaden our opportunities in foreign markets where we must compete with the products of other industrial nations, we should welcome and encourage every influence tending to increase the efficiency of our productive processes." It was Henry Ford, however, who developed a comprehensive lean manufacturing system. "Ford's success has startled the country, almost the world, financially, industrially, mechanically. It exhibits in higher degree than most persons would have thought possible the seemingly contradictory requirements of true efficiency, which are: constant increase of quality, great increase of pay to the workers, repeated reduction in cost to the consumer. And with these appears, as at once cause and effect, an absolutely incredible enlargement of output reaching something like one hundred fold in less than ten years, and an enormous profit to the manufacturer" (Charles Buxton Going, preface to Arnold and Faurote, Ford Methods and the Ford Shops (1915)). Levinson (2002, 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." There is no doubt that Ford gave the country the forty-hour work week and, even during the First World War, a cartoonist for The Times recognized that "Henry Ford is the most powerful individual enemy the Kaiser has." As for the Second World War, Ford's production chief Charles Sorensen wrote, ""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, My Forty Years with Ford). Ford (1922, My Life and Work) provided a single-paragraph description that encompasses the entire concept of waste. "I believe that the average farmer puts to a really useful purpose only about 5 %. of the energy he expends. Not only is everything done by hand, 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. He will carry water for years instead of putting in a few lengths of pipe. His whole idea, when there is extra work to do, is to hire extra men. He thinks of putting money into improvements as an expense. It is waste motion waste effort that makes farm prices high and profits low." Poor arrangement of the workplace-- a major focus of the modern kaizen-- and doing a job inefficiently out of habit-- are major forms of waste even in modern workplaces. Ford also pointed out how easy it was to overlook material waste. As described by Harry Bennett (1951, Ford: We Never Called Him Henry), "One day when Mr. Ford and I were together he spotted some rust in the slag that ballasted the right of way of the D. T. & I [railroad]. This slag had been dumped there from our own furnaces. 'You know,' Mr. Ford said to me, 'there's iron in that slag. You make the crane crews who put it out there sort it over, and take it back to the plant.'" In other words, Ford saw the rust and realized that the steel plant was not recovering all of the iron. Design for Manufacture (DFM) also is a Ford concept. Per My Life and Work, "Start with an article that suits and then study to find some way of eliminating the entirely useless parts. This applies to everything a shoe, a dress, a house, a piece of machinery, a railroad, a steamship, an airplane. As we cut out useless parts and simplify necessary ones, we also cut down the cost of making. ...But also it is to be remembered that all the parts are designed so that they can be most easily made." The same reference describes Just in time manufacturing very explicitly. However, it was with Taiichi Ohno at Toyota, where the ideas and principles mentioned by Ford finally got in practice. Norman Bodek wrote the following in his foreword to a reprint of Ford's (1926) Today and Tomorrow: "I was first introduced
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to the concepts of just-in-time (JIT) and the Toyota production system in 1980. Subsequently I had the opportunity to witness its actual application at Toyota on one of our numerous Japanese study missions. There I met Mr. Taiichi Ohno, the system's creator. When bombarded with questions from our group on what inspired his thinking, he just laughed and said he learned it all from Henry Ford's book."

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A-Z OF LEAN

1B
10 COMMANDMENTS OF IMPROVEMENT: Commonly cited rules for improvement.

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10 COMMANDMENTS OF KAIKAKU: by Hiroyuki Hirano


1. 2. 3. 4. 5. 6. 7. 8. 9. 10. "Throw out the traditional concept of manufacturing methods." "Think of how the new method will work; not how it won't work." "Don't accept excuses. Totally deny the status quo." "Don't seek perfection. A 50% implementation rate is fine as long as it is done on the spot." "Correct mistakes the moment they are found." "Don't spend money on Kaikaku." "Problems give you a chance to use your brains." "Ask 'Why' five times." "Ten person's ideas are better than one person's knowledge." Kaikaku knows no limits.

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, Flow, Pull) and Jidoka. The 16 Catch Phrases are:
1. Production preparation should be lightning fast. Avoid over planning, use what you have, act now. 2. Build & layout equipment for smooth material flow. Flow like a river, not like a dam. 3. Use additive equipment. Buy many speedboats instead of one tanker. 4. Build equipment that is easy to set up. Design in the separation of internal and external tasks. 5. Make equipment easy to move. No roots, no vines, no pits. Put wheels on everything. 6. Use multi-purpose equipment. Simple, "just fast enough" machines that perform one function well. 7. Make operator work stations narrow. Town houses, not ranch houses. 8. Layout equipment for ease of operator movement. Remove obstruction to smooth human motion. 9. Eliminate wasted machine cycle time. Design out 'air cutting' and minimize machine movements. 10. Build equipment for small, swift flow lines. Enable Standard Work (Takt, Work Sequence, SWIP).
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11. Use short, vertical flow lines. Vertical = advancing process flow, horizontal = functional. 12. Build equipment for one-piece pull. Machine level. This is probably the most critical one. 13. Build in quick changeover. Design in SMED at the machine level. 14. Link machines for smooth loading and unloading. Line stops when WIP on the line is "full work". 15. Use multiple lines & rectified flows. 'Rectified' is an odd term, electrical engineers will get it. 16. Spiral upwards to jidoka. There are 5 steps to jidoka, which should be pursued a step at a time.

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20 KEYS TO WORKPLACE IMPROVEMENT: Iwao Kobayashis list of 20 items to gain focus for workplace improvement that can be used in manufacturing audits. It reads very much like a whos who of manufacturing innovations and hence makes a very useful checklist. This is a useful list, but of course it still does not include everything. A practical exercise is to take this and use it either to evaluate your current workplace or as a discussion forum, ensuring people understand it all and adding to it other areas that you need to add for your company. These are:
1. Clean and tidy. Everywhere and all of the time. 2. Participative management style. Working with all people to engage their minds and hearts into their work as well as their hands. 3. Teamwork on improvement. Focused on teamwork to involve everyone in enthusiastic improvements. 4. Reduced inventory and lead time. Addressing overproduction and reducing costs and timescales. 5. Changeover reduction. Reducing times to change dies and machines to enable more flexible working. 6. Continuous improvement in the workplace. Creating improvement as a way of life, constantly making work better and the workplace a better place to work. 7. Zero monitoring. Building systems that avoid the need for machine minders and instead have people who are working on maintaining a number of machines. 8. Process, cellular manufacturing. Creating interconnected cells where flow and pull are the order of the day. 9. Maintenance. Maintaining of machines by people who work on them, rather than external specialists. This allows constant adjustment and minimum downtime. 10. Disciplined, rhythmic working. Synchronised total systems where all the parts work together rather than being independently timed. 11. Defects. Management of defects, including defective parts and links into improvement. 12. Supplier partnerships. Working with suppliers, making them a part of the constantly-improving value chain, rather than fighting with them. 13. Waste. Constant identification and elimination of things that either do not add value or even destroy it. 14. Worker empowerment and training. Training workers to do the jobs of more highly skilled people, so they can increase the value they add on the job. 15. Cross-functional working. People working with others in different departments and even moving to gain experience in other areas too. 16. Scheduling. Timing of operations that creates flow and a steady stream of on-time, high-quality, low-cost products. 17. Efficiency. Balancing financial concerns with other areas which indirectly affect costs. 18. Technology. Using and teaching people about more complex technology so they can use and adapt to it, bringing in the latest machines and making them really work. 19. Conservation. Conserving energy and materials to avoid waste, both for the company and for the broader society and environment. 20. Site technology and Concurrent Engineering. Understanding and use at all levels of methods such as Concurrent Engineering and Taguchi methods.

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3Cs: Concern, Containment, Countermeasure Problem solving approach, sometimes referred to as 3C. Initial problem is defined and stated as a Concern. Containment action is taken to protect the customer (internal and/or external). Then, after route cause analysis with the problem solving cycle, PDCA, Countermeasure is installed to prevent recurrence. 3Ds: Working conditions or jobs that are dirty, dangerous, or difficult. In Japanese San Ke, the K's stand for kitanai, kiken, and kitsue. 3 ELEMENTS OF DEMAND: The three drivers of customer satisfaction are Quality, Cost, and Delivery.

3 ELEMENTS OF JIT: The three elements of JIT are 1) takt time, 2) flow production, and 3) the downstream pull system.

3 EVILS OF MEETINGS: 1) Meet but dont discuss, 2) Discuss but dont decide, 3) Decide but dont do

3 GEN PRINCIPLE: The three principles are 1) shop floor (gemba), 2) the actual product (gembutsu), and 3) the facts (genjitsu). The key to successful kaizen is to going to the shop floor, working with the actual product and getting the facts. 3MU: See Muda, Mura, Muri 3P: Production Preparation Process. Rapidly designing production processes and equipment to ensure capability, built-in quality, productivity, and Takt-Flow-Pull. The Production Preparation Process minimizes resources needed such as capital, tooling, space, inventory, and time. See 16 Catch Phrases of 3P. 3P (New): Purpose, Process, People (sometimes also Data). An archetype first used by Collins, James C. and Porras in Built to Last and popularized in the lean movement by by Jim Womack.

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For lean enterprises to evolve beyond the current "tool age" focused on implementing individual methods such as valuestream mapping, kaizen, kanban, etc. to a new age focused on implementing lean management, managers and executives must think differently about lean. The key is to focus on the fundamental issues of Purpose, Process, People, according to Womack who led the MIT research team that coined the term "lean". Purpose: means the organization cost-effectively solves the customer's real problems so the enterprise can prosper. Process : means the organization assess each major value stream to make sure each step is Valuable, Capable, Available, Adequate, Flexible, and that all the steps are linked by Flow, Pull, and Leveling. 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. Is everyone touching the value stream actively engaged in operating it correctly and continually improving it

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4 CONDITIONS OF DELIVERY: Possible conditions are Scheduled Time, Unscheduled Time, Scheduled Quantity, Unscheduled Quantity. See Futeiki, Futeiryou, Teike, Teiryou. 4Ps OF THE TOYOTA WAY: Philosophy, Process, People (Partners), Problem Solving

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4 W's & 1H: Who, What, Where, When and How. A useful tool to help develop an objective and a concise statement of the problem.

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5Cs: Alternate English translation used to describe the same stages of the 5Ss. 5 Cs is a 5 step technique very similar to 5S to stabilise, maintain and improve the safest, best working environment to support sustainable Quality, Cost and Delivery.
Clear Out ;Separate the essential from the non essential Configure ; A place for everything and everything in its place Clean and Check ; Manualy clean to spot abnormal conditions Conformity ; Ensures that the standard is maintained and improved Custom and Prctice ; Everyone follows the rules, understands the benefits and contributes to the improvement

5M COMPONENTS OF TECHNOLOGY: Technology consists of the following five elements, or what we may call the five Ms. Modern technology must have all of these elements to function properly.
1. Raw materials and resources (including energy): M1 2. Machines and equipment: M2 3. Manpower (engineers and skilled workers): M3 4. Management (technology management and management technology): M4 5. Markets for technology and its products: M5

5M OF PRODUCTION: A method for managing resources in gembaspecifically those known as "5M"manpower, machine, material, method, and measurement. Understanding these factors and the establishment of standards are key steps in strengthening the production processes. 5M's and E: Methods, materials, manpower, machines, measurement and environment. Also se PEMPEM. 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.

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5S: The principle of waste elimination through workplace organization. Derived from the Japanese words seiri, seiton, seiso, seiketsu, and shitsuke (collective in Japanese Go Esu). In English the 5S are sort, straighten, sweep, standardize, and self-discipline.

The discipline of 5S is a fundamental building block for Lean Manufacturing or the Lean Office. Good 5S improves quality, cost, safety, the customer experience, and enables World Class Performance. It is easily applied to any business and any process, by anyone. 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. It doesnt make sense to start by arranging things neatly, if most of those things are not needed. The five S words below are the steps of 5S. 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, throw it out A place for everything, 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, the better

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5S KAIZEN RADAR CHART: Graphical representation of score out of 5 for each S of 5S.

Sort 5 4.4 Self- 2.2 Discipline 1.9 Standardize 0 Straighten 3.7 2.7 Sweep

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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).

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6M: Same as 5M of Production with the addition of Mother Nature. Also see PEMPEM. Other definitions:
Machines Methods Materials Measurements Milieu (Mother Nature, surroundings, 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. These losses are the most common causes of lost time and efficiency of production equipment. See OEE, TPM.
1. Breakdowns and Failures A loss of equipment function needed to perform a operation. Causes: Overloading the machine Loose bolts and nuts Excessive wear Lack of oil Contamination 2. Set-up and Adjustments Time lost during changeover from the current product to the next product, or changing the settings during a run. Causes: Remove tooling Find tooling Attaching new tooling Adjust new settings 3. Idling and Minor Stops Brief stoppages due to 'insignificant' problems. Causes: Parts stuck in a chute Removing chips Malfunction of sensors Program error 4. Reduced Speed Loss when machine operates below design standard speeds. Causes: Machine wear Human intervention Tool wear Overloading machine 5. Defects Time lost to making scrap, doing rework, or managing defective parts. Causes: Manual error Bad material
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Tool breakage Program error 6. Startup and Yield Time it takes a machine to 'warm up' to full production after a period of downtime. Causes: Slowly bringing machines up to speed Raising ovens to set temperature Running off excess material Process related loss of material.

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).

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.

Speed Loss

Reduced Speed

Anything that keeps the process from running at its theoretical maximum speed (a.k.a. Ideal Run Rate or Nameplate Capacity).

Startup Rejects (Losses that Deteriorate Quality Rate)

Rejects during warm-up, startup or other early production. May be due to improper setup, warm-up period, etc.

Quality Loss

Production Rejects

Rejects during steady-state production.

(Currently, JIPM identifies cutting blade losses as a seventh loss. Since this is not a common loss to all machines, cutting blade losses should be categorized as either performance or downtime losses for the purpose of calculating OEE.)

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

Kanban systems require training and awareness of the importance of following and maintaining the sequence dictated by Kanban. These six rules help insure that habits of batch & queue push production do not interfere with smooth flow and pull. 6S: Same as 5S with the addition of Safety

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7 DEADLY SINS OF QUALITY (AND LEAN): Coined by Prof. John Dew in ASQ Quality Journal.
Placing budgetary considerations ahead of quality. Placing schedule considerations ahead of quality. Placing political considerations ahead of quality. Being arrogant. Lacking fundamental knowledge, research or education. Pervasively believing in entitlement. Practicing autocratic behaviors, resulting in "endullment."

7 FLOWS: Man, Machine, Information, Engineering (& Tools), Raw Material, Work-In-Process, and Finished Goods Inventory. 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. They are 1) matrix diagram, 2) relationship diagrams, 3) process decision program charts, 4) activity network diagrams, 5) radar charts, 6) tree diagrams and 7) affinity diagrams. 7 TOOLS OF QC: Ishikawas 7QC Tools which revolutionized Japan and the world in the 60s and 70s. Data gathering and analysis tools used for kaizen activities originally by QC Circles. They are 1) check sheets, 2) cause and effect diagrams, 3) Pareto diagrams, 4) histograms, 5) graphs, 6) scatter diagrams, and 7) broken line graphs (control charts). 7 WASTES OF PRODUCTION: There are 7 types of waste that describe all wasteful activity in a production environment. Elimination of the 7 wastes leads to improved profits. The 7 wastes are 1) Overproduction, 2) Transportation, 3) Motion, 4) Waiting, 5) Processing, 6) Inventory, and 7) Defects. Use the acronym 'DOTWIMP' to remember the 7 Wastes of Lean. 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, Nanatsunomuda.


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, and sometimes the non value-added. Customers will not pay for waste. 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, tools, prints, does not add value etc.

Flow lines Pull system Value Stream organizations Kanban Workplace disorganization 5S Missing items Point of Use Storage
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Waiting

Processing

Sorting through materials Reaching for tools Lifting boxes of parts Idle time created when Waiting for parts material, information, Waiting for prints people, 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 customers Paperwork viewpoint Over-tight tolerances Awkward tool or part design

Poor workstation design Unsafe work area

Inventory

More materials, parts, 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, rework, 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

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7. Muda caused by overproduction

6. Muda caused by transport

5. Muda caused by waiting

4. Muda caused by unnecessary stock

3. Muda caused by unnecessary movement 2. Muda caused by defects

1. Muda caused by inappropriate processing

BAD GOOD

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

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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, and corrective action planning tool. It often includes sketches, graphics, flow maps or other visual means of summarizing the current condition and future state.

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The A3 problem-solving method and document, in combination with the value stream map (VSM), both borrowed from practices of the Toyota Motor Company, 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.

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

ANDON: A tool of visual management, originating from the Japanese word for 'lamp'. Most commonly, andons are lights placed on machines or on production lines to indicate operation status. Andons are commonly color-coded green (normal operations), yellow (changeover or planned maintenance), and red (abnormal, machine down). Often combined with an audible signal such as music or alarms.

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ANDON BOODO: Andon Board (a board with sections that light up to advise the status of areas, processes, equipment, etc.). See Andon.

ANDON KOODO: Andon Cord (the cord operators pull when problem are discovered on a moving line). See Andon. ARUBEKISUGATA: The State Things Should Be In (the ideal) as defined by the principles of the Toyota Production System (Just in Time, Quality in Station, Leveled Production, etc.). See Material and Information Flow. See Monotojouhounonakarezu. ASSEMBLE TO ORDER: An environment where a product or service can be assembled or provided upon receipt of a customers order. 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, it can be assembled quickly and to the customers specification. ATARIMAE HINSHITSU: Focusing on intangible effects of processes and ways to optimize and reduce their effects. One of the four steps of TQM. Japanese culture intrinsically values quality and appreciates the small details. In fact, the Japanese expression for quality is atarimae hinshitsu, which can be roughly translated as "taken-for-granted quality" or quality that is expected. One of four steps in TQM. ATOHOJUU: Replenish, Pull and Replenish ATOKOUTEIHIKITORI: Pull, Pull System (literally the next process pulls and takes). See Pull System. AUTO-EJECT DEVICE: See Hanedashi. AUTONOMATION: Machines are given human intelligence and are able to detect and prevent defects. Machines stop autonomously when defects are made, asking for help. Autonomation was pioneered by Sakichi Toyoda with the invention of automatic looms that stopped when a thread broke, allowing an operator to manage many looms without risk of producing large amounts of defective cloth. Autonomation is a pillar of the Toyota Production System. See Jidoka.

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This illustration shows how a limit switch stops Operation #10 when the transfer conveyor has five pieces.

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. Commonly used for NC machine cycles, oven cycles, wash cycles, etc. AVAILABILITY: See Bekidouritsu, Kadouritsu.

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. The aim of back flushing is to reduce the number of non value-added transactions. BALANCE CHART: A bar chart or histogram that illustrates work content per operator. Can be used to balance work for operators or machines in order to achieve improvements in flow. 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. See Poka-Yoke. 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. Contrast Flow Production.

BEKIDOURITSU, KADOURITSU: Operational Availability, Machine Availability (100% is ideal because nothing should ever prevent a machine from being available for planned production)
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BENCHMARKING: Comparing key performance metrics with other organization in similar or relevant industries. Establishing standards for improvement based on what others have been able to achieve. Visiting or interviewing peers to learn from what they have done. BOTTLENECK: A process in any part of the enterprise (office, production, sales, etc.) that limits the throughput of the whole process. BREADTRUCK RESUPPLY: The "lowest hanging fruit" in material logistics is the breadtruck delivery system for small, inexpensive parts. Instead of counting on sales forecasts to trigger an MRP system to generate purchase orders, all the small, inexpensive parts can be made available in bins at all the points of use. A local supplier is contracted to simply keep the bins full and bill the company monthly for what has been used, much like the way bread is resupplied by the breadtruck in a small market. All the MRP/purchasing expense is eliminated and this type of delivery can assure a constant supply of parts, thus avoiding work stoppages. Being off the forecast/MRP system, the supply of these parts can be assured for "forecast-less" operations such as Build-to-Order. Typical parts suitable for breadtruck deliveries are fasteners, resistors, capacitors, and almost any small, inexpensive part. As companies become more agile, they may include slightly more expensive and slightly larger parts into the breadtruck system. The more expensive parts may incur some inventory carrying cost, but that should be outweighed by savings in purchasing, materials overhead, expediting, and avoiding work stoppages. Contrast to Milk Run (collections). Criteria for Breadtruck Deliveries:
A reliable supplier can be contracted. Many suppliers welcome such business and want to perform well, since they usually get all the business for their categories of parts and raw materials. Parts can be distributed at all points of use. Of course, part standardization helps here Parts are small enough and cheap enough so that sufficient parts will always be on hand. Bin count can be set high enough to preclude any chance of ever running out. Parts are not likely to go obsolete or deteriorate while waiting to be used. The breadtruck parts are not so "attractive" as to create a significant pilferage problem, since, generally, companies do not correlate part consumption with product sales. However, making breadtruck parts freely available for R&D prototypes and factory improvements may encourage innovation. Manual reorders are not anticipated to occur. The supplier should be in a continuous improvement mode and be constantly adjusting bin count to correspond to prevailing demand. The factory could alert the supplier about any anticipated "spikes" in demand.

BREAKTHROUGH OBJECTIVES: Objectives that are stretch goals for the organization. Breakthroughs represent a significant change for the organization providing a significant competitive advantage. Breakthrough goals are achieved through multi-functional teamwork. BROWNFIELD: An existing and operating production facility that is set up for mass-production manufacturing and management methods. Contrast Greenfield. BUILD TO ORDER: A production environment when a product or service can be made and assembled after receipt of a customers order. See Seiban. BULLWHIP EFFECT: Alternative name for demand amplification.

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C
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C-VARWIP: Circular - 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, when whole-system analysis is performed. CANDO: Cleanup, Arranging, Neatness, Discipline and Ongoing Improvement - A precursor to 5S, CANDO is an industrial housekeeping program developed by Henry Ford, circa 1922. See 5S. 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. See Labour Linearity. 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. A series of discussion between managers and their employees during which data, ideas, and analysis are thrown like a ball. This opens productive dialogue throughout the entire company. CAUSE AND EFFECT DIAGRAM: A problem solving tool used to identify relationships between effects and multiple causes (also Fishbone Diagram, Ishikawa Diagram).

CEDAC: Acronym for Cause and Effect Diagram with the Addition of Cards. CEDAC is a method for involving team members in the problem solving process. CELLULAR MANUFACTURING: An alignment of processes and equipment in correct process sequence, where operators work within the cell and materials are presented to them from the outside of the cell. Often, cellular manufacturing has not taken into account waste elimination or Standard Work principles, and therefore greater savings have not been realized.

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

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COMBINE, ELIMINATE, SIMPLIFY: Basic tools of method study and cornerstone of improvement operartons. List sometimes also includes rearrange. See Nagara. CONCURRENT ENGINEERING: Designing a product (or service), its production process, the supporting information flow, and its delivery mechanism at the same time. The benefits include shorter development time from concept to market, a higher product quality, lower overall development cost and lower product or service unit cost. Concurrent engineering requires up-front planning and dedicated resources early in the early stages of development. 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. To that extent it is a clever implementation of Kanban principles and Theory of Constraints. It is a manufacturing strategy that produces a part via a just-in-time and kanban production approach, and calls for an ongoing examination and improvement efforts which ultimately requires integration of all elements of the production system. The goal is an optimally balanced production line with little waste, the lowest possible cost, on-time and defect-free production. Often used interchangeably with Lean Manufacturing. Manufacturing that takes place in a work center that is organized according to similar manufacturing processes, usually by linking dissimilar machines. Continuous flow manufacturing is the opposite of job shop manufacturing Continuous flow manufacturing encompasses four basic elements:
1) Based upon customer requirements, an overall manufacturing network must be configured. 2) Manufacturing requirements are identified, and strategic master plans are developed and implemented for each operation. 3) Information and management systems for the manufacturing process and operations are assessed, defined, purchased and implemented. The information systems will drive the manufacturing continuous flow process and will interface with all of the organization's business systems. 4) Once the manufacturing network, manufacturing requirements, and information and management systems are in place, the process of continuous improvement must be installed

Continuous flow manufacturing (CFM) is a system's approach to total system improvement. In its simplest form, CFM is a process for developing improved workflow using team-based problem solving. The process is managed by a leadership team, which consists of three subteams. These teams manage cultural change, identify and implement process flow requirements, and measure the cultural and physical process. The entire organization is trained in process improvement and cultural change tools to facilitate the transition to a continuous flow manufacturing environment.
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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.

CONTINUOUS IMPROVEMENT: The never-ending pursuit of waste elimination by creating a better workplace, better products, and greater value to society.

CONSTRAINT: See Bottleneck. CONTROL CHART: A statistical problem solving tool that indicates control of a process within established limits.

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CONTROL ELEMENT: Any specific process variable that must be controlled. The measurement of a control element indicates whether the process is operating under stable conditions. CONWIP: A pull technique adopted to high-mix low volume environments. The Conwip Spearman et al., 1990(CONstant Work In Process) production control system tries to maintain constant the maximum amount of work in process in the system. This control system is implemented by means of kanban cards. One kanban card is attached to a job from the beginning of the line. The maximum work in process equals the total number of cards in the system. When a part is shipped to the system, the attached card is released and is sent to the beginning of the line, where it will be attached to another job to be processed. Also see Kanban, Drum-Buffer-Rope, POLCA.

CONWIP control. Movement of parts shown in blue, circulation of release authorizations in green.

Hybrid CONWIP/kanban control. Movement of parts shown in blue, circulation of kanban in red, and release authorizations in green.

COST OF POOR QUALITY: Costs associated with supplying a poor quality product. Categories of cost include internal and external failure costs. COST OF QUALITY: Costs associated with supplying a quality product. Categories of cost include prevention, appraisal, and failure.

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, or counterclockwise. The origin of this idea came from the design of lathes and machine tools with the chucks on the left side, making it easier for right-handed people to load from right to left. See Cellular Manufacturing. COUNTER MEASURES: Actions taken to bring less than expected results of a process back up to targeted levels. 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, with little or no storage in between. This may be done to change type of conveyance, or to sort material intended for different destinations, or to combine material from different origins. See Noritsugiunpan. CURTAIN EFFECT: A method that permits the uninterrupted flow of production regardless of external process location or cycle time. Normally used when product must leave the cell for processing through equipment that cannot be put into the cell. (i.e. heat treat, curing oven, plating, wave solder) Curtain quantities are established using the following formula:
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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. Cycle time can be categorized into 1) manual cycle time, 2) machine cycle time, and 3) auto cycle time. Also referred to as touch time or hands-on time. See Saikurutaimu.

D
DAILY MANAGEMENT: The day-to-day activities that are required to serve the customers and ensure that the business is generating profit. See Nichijo Kanri. DANDORIGAE, DANGAE: Changeover, Set-up Change (of tools, dies, etc. to enable the production of a variation of a product on the same machine or line). See SMED. DATSU-CHAKU: Japanese term meaning Unload/Load used to tell the traditional way of component loading on a machine/equipment. This terminology is usually compared with "Chaku-Chaku". Contrast Chaku-Chaku. 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. DbFM: See Demand-based Flow Manufacturing. DEMAND AMPLIFICATION: The tendency for fluctuations in demand to increase as they move up the supply chain. Often referred to as the bullwhip effect in recent literature. DEMAND-BASED FLOW MANUFACTURING: Demand-based Flow Manufacturing (DbFM) has demonstrated its success as a high velocity order-to-delivery strategy and process. The root origin for DbFM is in the lean production methods first developed and remarkably well practiced by Toyota. DEMAND-FLOW MANUFACTURING: Demand-flow manufacturing is customer-driven, rather than forecast driven. Instead of producing in long runs and large batches, then storing products until they are sold, demand-flow lines create a variety of items each day, keyed to direct customer orders. Often used interchangeably with Lean Manufacturing. 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. Demand lumping is a major contributor to demand amplification. It is known to be caused by batching, forward buying, and hoarding. DESIGNED FOR MANUFACTURING AND ASSEMBLY (DFMA): A way of improving cost, quality, and safety of the manufacturing and assembly processes by design. DESIGN OF EXPERIMENT: Planning and conducting experiments and evaluating the results. 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. DOE: See Design of Experiment. DOWNSTREAM PULL SYSTEM: See Pull System. DRUM-BUFFER-ROPE: Drum-Buffer-Rope (DBR) scheduling is the manufacturing application of the Theory of Constraints, a body of thought developed by Dr. Eliyahu Goldratt. The DBR logistical system is a finite scheduling mechanism that balances the flow of the system. 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), inventory and operating expenses. The definitions of DRUM, BUFFER and ROPE are:
DRUM - A schedule for the constraint. BUFFER - A protection against Murphy. This is the time provided for parts to reach the protected area. The protected areas are the Drum, the due-dates and the assemblies of constraint parts with non-constraint parts. ROPE - A schedule for releasing raw materials to the floor. The Rope is derived according to the Drum and Buffers; its mission is to ensure the proper subordination of the non-constraints.

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DSI: See Days Supply of Inventory.

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

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EXTENDED KANBAN: An alternative to single Kanban in dynamic environments. This system is also a hybrid combination of Kanban system and Base stock like the Generalized Kanban system. The main difference between Extended Kanban and Generalized Kanban is that in the former, the customer demand signal is instantaneously transferred to all stations, while in the latter it is a non-instantaneous process (Dallery and Liberopoulos, 2000). Also see Kanban, Base Stock, CONWIP, Drum-Buffer-Rope. EXTERNAL SET-UP: All set-up tasks that can be done while the machine is still running. Examples are collecting tools, the next piece of material, preparing or fixtures. 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. See Sotodandori.

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. The aim is to identify possible failures and implement corrective actions to prevent failures.

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FAST AND FLEXIBLE MANUFACTURING: The concept of Fast and Flexible Manufacturing, also referred to as Agile Manufacturing, was introduced in 1991 by US government-sponsored research at Lehigh University. Seen by some as the next major framework for world-class manufacturing. See Agile Manufacturing. FIFO: See First-in First-out. 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. FIRST IN FIRST OUT: Also known as FIFO, a system of keeping track of the order in which information or materials need to be processed. The goal of FIFO is to prevent earlier orders from being delayed unfairly in favor of new orders.

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, the production line will stop. See Teiichiteishihoushiki. FLEXIBLE WORKFORCE: See Shojinka. FLOW: See Nagareka. FLOW CHART: A problem solving tool that maps out the steps in a process visually. The flow (or lack thereof) becomes evident and the wastes and redundancies are identified. FLOW PRODUCTION: A way of doing things in small quantities in sequential steps, rather than in large batches, lots or mass processing. Product (or service) moves (flows) from process to process in the smallest, quickest possible increment
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(one piece). Only acceptable quality products or services are accepted by the downstream customer. See One-Piece Flow.

FMEA: See Failure Modes and Effects Analysis. FREQUENT RUNS: See Takiumpan. FUNCTIONAL LAYOUT: Traditional plant layout grouping similar machines together.

FUTEIKI: Unscheduled Time (one of the 4 possible conditions of delivery, meaning that there is no attempt to create a fixed schedule for delivery runs). Contrast Teiki. FUTEIRYOU: Unscheduled Quantity (one of the 4 possible conditions of delivery, meaning that there is no attempt to define the quantity of material that is to be delivered on a run). Contrast Teiryou.

G
GEMBA: is a Japanese word meaning "actual place," or the place where you work to create value. In manufacturing this is the factory. In each industry, the Gemba will be a different place. Also spelled Genba. See 3 Gen Principle. GEMBUTSU: Japanese for 'actual thing' or 'actual product'. The tools, materials, machines, parts, and fixtures that are the focus of kaizen activity. Also spelt Genbutsu. See 3 Gen Principle.
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GENBA KANRI: Workplace management: the system by which standards for running the day-to-day business are established, maintained controlled and improved. Contrast with hoshin kanri. GENCHI GENBUTSU: Genchi genbutsu means see for yourself or go and see. The word is often used in a factory context. The basic idea is that as a decision-maker, you cant make a judgment about a situation before you have actually seen the conditions with your own eyes. Japanese managers are therefore encouraged to spend time on the factory floor, observing processes and interacting with workers. A manager should not remain sequestered in an office, relying on the reports of subordinates. The actual place and the actual thing (where something is or happens, and the actual things that are in question, 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, genbutsu is also spelled gembutsu. See 3 Gen Principle. GENERIC KANBAN / GENERALISED KANBAN: A kanban system designed for non-repetitive manufacturing environments. Kanbans have shown successful results in lowering inventory and shortening lead time in repetitive production systems. Unfortunately, such systems are not applicable to production environments with dynamic characteristics. Here a modified kanban system, the generic kanban system, is proposed for such dynamic environments. 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. Generalized Kanban (Buzacott, 1989, Zipkin, 1989 or Frein et al., 1995) is a hybrid combination of the Kanban system and Base Stock and results similar to Extended Kanban. Also see Kanban, CONWIP, POLCA & Drum-Buffer-Rope. GENJITSU: Japanese for 'the facts' or 'the reality'. The actual facts or the reality of what is happening on the shop floor and in the business. See 3 Gen Principle. GO ESU: Japanese for 5S. See 5S. GREENFIELD: A new production facility where lean principles are designed into manufacturing and management systems from the beginning. Contrast Brownfield. GRPI: GRPI stands for four critical and interrelated aspects of teamwork: goals, roles, processes, and interpersonal relationships, and it is a tool used to assess them. GROUP TECHNOLOGY: Group Technology examines products, parts and assemblies. It then groups similar items to simplify design, manufacturing, purchasing and other business processes. The figures below illustrate how an apparently random collection of items has surprising similarity. Also see Product Families.

Ungrouped Parts

Grouped Parts

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

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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, beneficial changes to the system until no further improvements appear to be possible. HINSHITSU HOZEN: Quality Maintenance HISTOGRAM: A problem solving tool that displays data graphically in distribution. It is often used to reveal the variations that any processes contain.

HITOKETA: Single Digit (referring to times measured with no more than single digit numbers, can mean less than 10 seconds, 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, this is called horizontal handling. Horizontal handling does not benefit flow. Contrast to Vertical Handling. HOSHIN KANRI: A method of policy deployment and strategic decision making that focuses and aligns the organization on a few vital breakthrough improvements. The objectives and means to achieve the objectives are cascaded down through the entire organization using a series of linked matrices. The process is self-correcting and encourages

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organizational learning and continuous improvement of the planning process itself. See Policy Deployment. Contrast Genba Kanri. HOURENSOU: Trusted advisor. Hourensou is a Japanese word made up of three parts: hou (houkoku -- to report), ren (renraku -- to give updates periodically, inform) and sou (soudan -- to consult or advise). To serve some of the genchi genbutsu functions, senior management uses hourensou, which is common within top Japanese companies. Hourensou forms the basis of good communication on the shop floor. It entails reporting what you do, or what you observe, give updates when e.g. arriving late at work (train, weather) or confirming appointments, and consulting with your superior or a colleague if something is not understood, about the next task, etc. Communication, discussion and learning process from management.

HYOUJUNSAGYOU: Standardized Work (work procedures posted on site that define the takt, the sequence of operation, and the standard in-process stock). See Standardized Work. HYOUJUNSAGYOU KUMIAWASEHYOU: Standardized Work Combination Chart (a Gantt chartlike tool which illustrates standardized work as a combination of manual task time, automated work time, walk time, and waiting time, all against the takt). See Standardized Work Combination Chart. HYOUJUNTEMOCHI: Standard In-Process Stock, Standard Work in Process (should be no more than 1, literally standard, onhand piece). See Standard Work in Process.

I
IJO-KANRI: See Abnormality Management. IKKONAGARE: 1 Piece Flow (each station of a line completes its work on only 1 piece at a time, there is no batching). See One Piece Flow. INTELLIGENT AUTOMATION: See Autonomation. INTERNAL SET-UP: Set-up tasks that can only be done when the machine is stopped. Examples are changing the fixture, changing the tools, or making adjustments. After as many of the internal tasks have been externalized as is possible, the remaining internal changeover time is reduced through use of quick-change mechanisms. See Uchidandori. INVENTORY: A major cost for most businesses, inventory is all raw materials, purchased parts, work-in-process components, and finished goods that are not yet sold to a customer. In some cases inventory may include consumable goods used in production.

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INVENTORY TURNS: The cost of goods sold divided by the average level of inventory on hand. This ratio measures how many times a company's inventory has been sold during a period of time. Operationally, inventory turns are measured as total throughput divided by average level of inventory for a given period. In business management, inventory turns (IT) measures the number of times capital invested in goods to be sold turns over in a year. An item whose inventory is sold (turns over) once a year has higher holding cost than one that turns over twice, or three times, or more in that time. The real purpose of inventory reduction campaigns is to increase inventory turns, for three reasons.
Increasing inventory turns reduces holding cost. The organization spends less money on rent, utilities, insurance, and other costs of maintaining a stock of good to be sold. Reducing holding cost increases net income and profitability as long as the revenue from selling the item remains constant. Items that turn over more quickly increase responsiveness to changes in customer requirements while allowing the replacement of obsolete items.

ISOLATED ISLANDS: The result of a common mistake of cherry-picking lean techniques, which leads to building isolated islands of improvement instead of improving the whole production flow to reap the biggest benefits. See Hanarekojima.

J
JASUTOINTAIMU: Just in Time, JIT (arrival of needed items only, only in the quantity needed (i.e. 1 at a time), and only at the time needed). See Just in Time. JIDOKA: See Autonomation. The five steps of Jidoka are:
5. Automatic unloading 4. Automatic return to home position 3. Automatic stop 2. Automatic feed 1. 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, but actual takt time is derived from calculations that factor in real-world issues). See Takt Time. JISHU HOZEN: Autonomous maintenance. JISHU KANRI: Self-management, or voluntary participation. JISHUKEN: Literally translates to a fresh set of eyes, which suggests that sometimes being too close to a problem prevents a person from objectively seeing what is wrong. When applied to TPS, it refers to developing a creative approach to problem solving, utilizing autonomous study groups. Kaizen with outside help - a "fresh pair of eyes" approach to kaizen to complement the improvement ideas of those carrying out production tasks day-by-day. Outsiders (for example, from a customer) help the production team to eliminate waste. Process improvement engineers going into suppliers are sometimes described as "jishuken teams". JIT: See Just-in-Time Production.
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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). JUNKAI: Japanese for milkrun, literally meaning tour. See Milkrun. JUNJIDANGAE: Rolling Changeover, 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). 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, using minimal resources of manpower, material, and machinery. The three elements to making Just-in-Time possible are Takt time, Flow production, and the Pull system. See Jasutointaimu.

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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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Source: ARC Strategies, October 2004

KANBAN CYCLE: See Kanban Saikuru. KANBANSAIKURU: Kanban Cycle (the delivery cycle for a given unit of material within a kanban system expressed by 3 numbers: days per cycle, deliveries per cycle, and number of deliveries by which a kanban card will return with its material). KANSEI: Examining the way the user applies the product leads to improvement in the product itself. Kansei Engineering is a method for translating feelings and impressions into product parameters. The method was invented in the 1970s by Professor Mitsuo Nagamachi. He recognized that companies often want to assess the customers impression of their
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products. Kansei Engineering can "measure" the feelings and shows the relationship to certain product properties. One of four steps in TQM. KANO TAXONOMY OF CUSTOMER NEEDS: Kano analysis is a quality measurement tool used to prioritize customer requirements based on their impact to customer satisfaction. Briefly, Kano (a Japanese researcher), stated that there are four types of customer needs, or reactions to product characteristics / attributes:
1. The 'Surprise & Delight' factors. These really make your product stand out from the others. Example, a passenger jet that could take off vertically. 2. The 'More is Better'. E.g. a jet airliner that uses a little less fuel than the competition. 3. The 'must be' things. Without this, you'll never sell the product. E.g. A jet airliner that cannot meet airport noise regulations. 4. Finally, there are the 'dissatisfiers', the things that cause your customers not to like your product. E.g. a jet airliner that is uncomfortable to ride in.

Must Haves

More the Better

Delighters

KAROSHI: Death from overwork. 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. The keiretsu are groupings of Japanese firms with historic associations and cross-shareholdings, such that each firm maintains its operational independence but establishes permanent relations with other firms in its group. These groups emerged from the break-up of the holding companies which dominated Japan's pre-war economy. Keiretsu may involve firms in widely different industries or be vertically integrated, such as the Toyota Group. Typically they will include banking, insurance, construction, electronics, chemicals and engineering. In addition to Toyota Group, other important keiretsu are the Fuyo Group (Fuji Bank, Fuji Heavy Industries - owners of Subaru); Mitsui Group; the Dai-ichi Kangin Group (banking, insurance, steel); Sumitomo Group and the Mitsubishi Group (Bank of Tokyo-Mitsubishi, Mitsubishi Motors, Mitsubishi Heavy Industries). Much-needed consolidation and restructuring - particularly in the banking and insurance sector - is beginning to break up these close relationships, with cross-keiretsu mergers increasingly common. KENTOU: Period of project, in which many concept studies or designs are generated. KOBETSU KAIZEN: Literally: Focused Improvement. "Kobetsu" basically means individual or focused. This is a Kaizen driven for a very specific issue, in comparison to a broad approach that some Kaizen address. By breaking down Overall Equipment Effectiveness into it's key elements of Availability, Performance Efficiency and Quality Rate, we then begin to stratify each category to it's elements: Availability Issues - Breakdowns and Changeovers Performance Issues - Minor Stoppages and Speed Losses Quality Issues - Rejects and Start up Losses

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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). See Process Capacity Table. 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. See Capital Linearity. LAST IN FIRST OUT (LIFO): The result of a typical material or information flow system without FIFO, resulting in earlier orders being perpetually delayed by new orders arriving on top of them.

LEAD-TIME: The time it takes to produce a single product, from the time of customer order entry to shipment. The sum of the VA/NVA time for a product to move through the entire value stream. LEAN CONSUMPTION: Introduced by Womack and Jones in the book Lean Solutions. consumption are:
1. 2. 3. 4.

The six principles of lean

5. 6.

Solve the customer's problem completely by ensuring that all goods and services work, and work together Rather than providing patches for recurring problems, the focus should be on diagnosing and changing systemic issues at their source. Don't waste the customer's timeBy focusing on ways to get rid of non-value-added time for the customer, repeat business is much more likely and provider problems will be solved as well. Provide exactly what the customer wantsInstead of large orders based on centralized forecasts, the lean provider has a "rapid replenishment" system that quickly orders exactly what the customer has just pulled from the shelf. Provide what is wanted exactly where it is wantedMost customers buy the same things from a variety of formats (supermarket, warehouse store, convenience store, etc.) at different times. The authors provide an example of a European retailer (Tesco) that provides local convenience stores, midsized stores in town centers, supermarkets in the suburbs, hypermarkets on the periphery, and web-based shopping. The same items from the same suppliers are available at very similar prices. Provide what is wanted where it's wanted exactly when it is wanted"Most of us do plan ahead for large, 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." Continually aggregate solutions to reduce the customer's time and hassleAdvances in information technology will provide opportunities to connect bundled goods and services in a cost-effective manner.

From the consumer's perspective, the six principles of lean consumption are:
7. 8. 9. 10. 11. 12. Solve my problem completely. Don't waste my time (minimize my total cost of consumption, which is the price I pay plus my time and hassle). Provide exactly what I want. Deliver value where I want it. Supply value when I want it. Reduce the number of decisions I must make to solve my problems.

LEAN ENTERPRISE: A Lean Enterprise is an organization that is engaged in the endless pursuit of waste elimination. A Lean Enterprise has a culture that does not tolerate waste of any kind. LEAN LOGISTICS (LL, L2): Logistics systems which use the most direct and efficient means to supply, transport, distribute, maintain, and repair resources. LEAN MANUFACTURING: A business practice characterized by the endless pursuit of waste elimination. A manufacturer that is lean uses the minimum amount of manpower, materials, money, machines, space etc. to get the job done on time.
1) Focus on the customer.
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Who are the external customers? What is an internal customer? What is value to the customer? 2) Eliminate the 7 wastes of production. What are the 7 wastes? What causes waste? How do we eliminate waste? 3) Do more with less. How can we increase value? How to waste less resources? How can we do both?

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(1)Waste (2) Continuous improvement (3) Sequencing (4) Stop and notify of defects

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LEAN METRICS: Lean metrics go beyond traditional financial and accounting measurements. Accounting and financial metrics often measure only the end result. They do not help control the process, solve problems or motivate people. The types of metrics and measurement appropriate for a Lean Manufacturing system include Material Handling, Inventory, Quality, People and Customers. Here are some general principles for lean metrics:
Keep It Simple: Use metrics that are easy to compile and update. Complex calculations or metrics that require excessive work do not get updated or people get lazy and fake the data. Use Tripwires: Simple metrics may not reveal the problem source. This is OK. The daily or weekly metric only needs to alert you that a problem exists.
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Limit The Metrics: Each person or team should have 3-6 daily or weekly metrics. More than this and the metrics do not get monitored. These metrics do not have to contain all the information that the person or group will ever need; they should just signal an alert. Drill Down When Problems Arise: When a "tripwire" metric indicates a deviation, you can investigate further to find the source of the problem. This may require additional data that is not continually gathered, processed and analyzed.

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). The activity of creating processes which are highly responsive and flexible to customer demand requirements. Successful lean production is evident when processes are capable of consistently delivering the highest quality products and services, at the right location, at the right time, in response to customer demand and doing this in the most cost effective manner possible.

LEAN PROVISION: Introduced by Womack and Jones in the book Lean Solutions, lean provision "comprises all of the steps required to deliver the desired value from producer to customer, often running through a number of organizations." 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. The steps are:
1. 2. 3. 4. 5. Specify value (from the standpoint of the end customer). 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.) Let customers pull value (from the next upstream activity). Pursue perfection (by continuously removing wastes).

These can be further refined as: 1. 2. 3. 4. 5. Let the customer specify Value and only design what the customer wants. Create Value Stream Maps that show the flow material and information to produce a product. Create continuous one-piece flow wherever possible to continuously move material without any stoppages or backtracking. Only flow product when customers want it. Foster an environment of continuous improvement.

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LEAN TRANSACTIONAL: The application of Lean to business processes such as paperwork flow through an office in accounts or marketing. LEAN TRANSFORMATION: Developing a culture that is intolerant to waste in all of its forms. A successful Lean Transformation should result in a Lean Enterprise, an organization that is engaged in the endless pursuit of waste elimination. The transformation starts with (1) identifying the need for change, (2) communicating that need for change, (3) defining the "value stream" current and future, (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.

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LESSONS LEARNT: See Hansei. LEVELING: Smoothing out the production schedule by averaging out both the volume and mix of products. Production leveling allows a consistent workflow, reducing the fluctuation of customer demand with the eventual goal of being able to produce any product any day. See Heijunka. LEVEL SELLING: The elimination of sales spikes generated by end of month sales targets at dealers and so forth. This allows for improved flow of demand from the customer and improvements in anticipated demand. See Demand Amplification, Bullwhip Effect. 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, 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. LOAD-LOAD: See Chaku Chaku.

M
MACHINE AUTOMATIC TIME: The time it takes for a machine to produce one unit, not including the manual time to load and unload.
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MACHINE CYCLE TIME: The time it takes for a machine to produce one unit, including the manual time it takes to load and unload. MACHINE WORK: Work that is done by a machine. The time it takes to do machine work can overlap with manual work, if the machine is manually operated. MACRO PRODUCTION CONTROL: There are many methodologies ranging from simple and inflexible to complicated and very flexible. The best system is the simplest one. Where the process allows, Physical Link is the system of choice. Broadcast, Kanban, MRPand ROP follow in desirability. In practice Kanban offers a good choice. They can be a transition between MRP and ROP approaches and Physical Linkage.

MANUAL WORK: Work that is done by people, without the aid of machinery. The human tasks of operating or loading machines can also be called manual work. MATERIAL AND INFORMATION FLOW: See Monotojouhounonakarezu. MAZUME: Mazume is a Japanese word meaning "Gap Shrinking". This is used while doing a innovation in process lay out by shrinking the gap between equipment, thus saving the floor space and movement of operator / material. 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, shadow boards, taping footprint of items to designate where they are supposed to be placed, etc.). See Mieruka. MENASHINOSHOUJINKA: Designing for Minimal Staffing, Manning Flexibility (see Shoujinka, menashino refers to the kanji character for shou in which the symbol for eye is not used, thus changing shoujinka from its usual meaning of reducing personnel to few or minimum personnel) MIERUKA: Implementation of Visual Control. See Visual Control. MILK RUN: Reducing transport costs and batch sizes by performing multiple pick up and drops at multiple suppliers using one truck. The purchase of parts usually involves transporting the parts directly from the vendor to the purchasers
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manufacturing plant. The term milk run describes the method of making rounds to parts vendors to collect purchased parts. The exact number of parts needed only when they are needed are collected, thus reducing the number of trucks on the road and benefiting the environment. The term milk run was taken from the practice of making daily rounds to collect milk from dairy farms. Pickups of material at a geographically clustered set of suppliers. Also applies to deliveries to a geographically clustered set of Points of Use. Contrast to Breadtruck Deliveries. Also see Junkai.

MIRYOKUTEKI HINSHITSU: The charm of quality (i.e. measuring variables such as appearance, sound, and. touch that give personality to a product). What New Consumers are looking, or quality that fascinates. Broadens management concern beyond the immediate product. The fourth and final step of TQM. 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. This is accomplished by making the mixed model flow part perform as if it were a dedicated asset. Each product flows at the rate of customer demand, even though mixed products are being made. MIXED MODEL VALUE STREAM: An extention of value stream mapping for more complex environments. It goes beyond the basics of value stream mapping to create future states in the real manufacturing world of multiple products, varying cycle times and changing demand. MIZUSUMASHI: Fixed Course Pick-up, Water Spider, Water Strider (ongoing line-side material delivery and empty container and kanban pick-up, literally whirligig, although the allusion intended was to a water strider, the term water spider came from an attempt to translate into Chinese, 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, it has 3 versions: the Current State, the Target For Now State (see Toumennerau Sugata), and the Should Be State (see Arubekisugata), a variation of the Material and Information Flow has come to be known as the Value Stream Map). See Material and Information Flow. See Monotojouhounonakarezu. MOKERU: The Japanese term for the industrial engineering, more properly translated as "profit-making industrial engineering" MUDA, MURA, MURI: Waste (non value added tasks), Irregularity (inconsistency) and Overburden (excessive stress and strain). See San Mu.

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

Traditional batch production

One piece flow

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OPERATOR CYCLE TIME: The time it takes for a worker or machine operator to complete a sequence of operations, including loading and unloading, but not including waiting time. 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'. This saves space and improves communication between those performing related tasks and creates a sense of teamwork. See Obeya. OPERATION RATE: See Kadourisu. OTED: One Touch Exchange of Dies - OTED (frequently used to describe changeovers that do not require adjustments whether they involve dies or not) OVERALL EQUIPMENT EFFECTIVENESS: See OEE. OVERFLOW PARTS: See Hamidashihin.

P
PACEMAKER: A device or technique use to set the pace of production and maintain takt time. See Takt Time. PACEMAKER PROCESS: Any process along a value stream that sets the pace for the entire stream. (The pacemaker process should not be confused with a bottleneck process which necessarily constrains downstream processes due to a lack of capacity.) The pacemaker process is usually near the customer end of the value stream, often the final assembly cell. The process that corresponds to where master production scheduling is done. A basic concept of lean manufacturing is to schedule at only one point in the overall value stream. Scheduling at this one pointthe pacemakerresults in pulling work from upstream processes and flowing product to the customer through the subsequent processes. The planned volume and mix at the pacemaker process typically corresponds to what's known as the master schedule; the scheduled mix for the day's actual production, as defined by the heijunka box, corresponds to the finishing schedule. PACKING AND PRESENTATION: See Nisugata.

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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. A Pareto Chart focuses improvement activity on the vital few and not the trivial many. The 80/20 rules comes from the Pareto Principle, stating that 20% of the items account for 80% of the activity (problems, sales, defects, etc.).

PDCA: PDCA stands for 'Plan-Do-Check-Act'. This is a basic principle followed for effective problem solving during kaizen. Originally developed by by Walter Shewhart and later adopted by Deming (PDSA Cycle,S for Study)
PLAN: Senior management should use the visioning process in the context of it Business Plan. HP translates the Business Plans to action plans, meaningful to all levels of the organization. DO: Answer the whats, hows, and whos for the total number of tiers for your organization; remember, the fewer the number of tiers, the better. Also, this is the time to bring management together and provide them with a basic understanding of HP mechanics. CHECK: On a periodic basis, review the measurements and note what youve learned that can help in the future. ACT: Make the necessary adjustments to plans and priorities in order to ensure the success of the strategy breakthroughs.

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PERFECT PROCESS: In an article in 6L, a journal for Six Sigma and Lean Manufacturing professionals, Jim Womack states, "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." Womack defines a perfect process as one that is: 1. Valuable 2. Capable 3. Available 4. Adequate 5. Flexible

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The perfect process is valuable because it creates and adds value for customers. Start by drawing a Value-Stream Map to visualize the process. Then remove the non-value-adding steps. Don't begin by asking if a process step is valuable. First, see if the step is even needed. In other words, would the customer miss it? If the answer is "no", don't try to fix it, just eliminate it. A capable process performs the same way with the same result every time. Improving the capability of a process is the starting place of Six Sigma. An available process can be performed every time it needs to be performed and in the standard cycle time. Availability depends on equipment reliability and uptime; therefore, it is the starting place for Total Productive Maintenance. An adequate process has enough capacity to perform every time when it needs to be performed, without waiting. This is the concern of Theory of Constraints, Right-sized Tooling, and Lean Manufacturing System Design. A flexible process can change over quickly from one member of a product family to another one. Perfect processes have very low setup and changeover times. These flexible processes allow small amounts of parts for different products to be made frequently, resulting in high throughput and low inventory. This is the concern of the Toyota Production System. In addition to being valuable, capable, available, adequate, and flexible, a perfect process also has its steps linked and coordinated by: 1. Continuous flow, 2. Customer pull, and 3. Leveled production. Continuous flow is the quickest way to get materials from point A to point B, while allowing customers to pull products out of the value stream to prevent the waste of overproduction. 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. Womack says a perfect process is waste-free. Every step is completely valuable, perfectly capable, perfectly available, exactly adequate, and highly flexible. And, every step is connected by continuous flow, noiseless pull, and maximal leveling. PEMPEM: Plant, Equipment, Materials, People, Environment, Methods. Alternative acronym to 5M and E. PERFORMANCE MANAGEMENT BOARD: See Seisankanriban. PERFORMANCE MANAGEMENT: Using a set of tools and approaches to measure, improve, monitor and sustain the key indicators of a business. PICKUP AND SUPPLY SYSTEM: See Tsurubeshiki. PICK IN ORDER OF USE: See Junbiki. PITCH: The amount of time Takt time x pack-out qty = pitch required by a production area to make one container of products.

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 - the Plan for Every Part (PFEP). A comprehensive plan for each part consumed within a production process. This would take the form of a spreadsheet or simple table and contain such data as pack-out quantity, dimensions, location of use and storage, order frequency and so on. This provides one accurate source of information relating to parts. POINT OF USE STORAGE (POUS): Keeping all items needed for the job at the location of use in a neat and organized manner. POUS is on of the goals of 5S activity. POKAYOKE: Japanese for 'mistake-proofing'. Mistake-proofing and fool-proofing devices made by designing parts, processes, or procedures so that mistakes physically or procedurally cannot happen. Also see Baka Yoke.

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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. POLCA is a hybrid push-pull strategy that combines the best features of pull (Kanban) and push (MRP) systems, while avoiding their drawbacks. POLCA was introduced by Suri (1998) as one component of the overall Quick Response Manufacturing (QRM) strategy. Also see Kanban, CONWIP, Extended Kanban, Generic Kanban, Drum-Buffer-Rope, Quick Response Manufacturing.

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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: (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. See Hoshin Kanri. 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. PCQDSM: TPM goals of Productivity, Quality, Cost, Delivery, Safety, Morale. PQPR: Short for Product Quantity Process Routing Analysis. 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 PR (Process Routing) refers to the Parts-Process Matrix analysis to determine product families by grouping of products with similar process flows. 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. PROCESS CAPACITY TABLE: A chart primarily used in machining processes that compares set-up and machine load times to available capacity. Also Table of Production Capacity by Process. See Koutebetsu Nouryokuhyou. PROCESS / PRODUCT FLOW LAYOUT: Plant layout where location of machines are determined by the sequence of operations. Machines are typically closely spaced in cellular fashion (see Mazume). Contrast to Functional Layout.

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PROCESS MAP: Process Mapping is also known as Process Charting or Flow Charting. It is one of the oldest, simplest and most valuable techniques for streamlining work. A process map visually depicts the sequence of events to build a product or produce an outcome. It may include additional information such as cycle time, inventory, and equipment information. Several systems of conventions exist, but the original system invented by Frank Gilbreth in the early 1900's is still the most useful. The Gilbreth approach is highly visual and discriminates between waste and value-added activity. It is also simple, intuitive and easily used by untrained groups.

PRODUCT FAMILY: A group of products that go through the same or similar downstream or "assembly" steps and equipment. Useful for cellular layouts. Also see Group Technology. PRODUCT FAMILY MATRIX: A Product Family Matrix can be used to group products into families. To use the matrix, indicate which process steps are used by each product. Then, look for groupings of common process steps. The groupings are the product families. The process steps are arranged by flow order with downstream processes last. Downstream steps are those process steps that are closer to the customer. Many times, the major difference between product families is the use of downstream process steps. With product families, workflow layouts can be configured to accommodate small differences in the workflow by building in detours and planning for the use of portable equipment. Product families do not have to serve the same market. Think in terms of shared processes, not shared markets.

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PRODUCTION SMOOTHING: See Leveling. PRODUCTION PREPARATION PROCESS: See 3P. PRODUCTIVITY: See Nouritsu. PULL SYSTEM: One of the 3 Elements of JIT. The pull system enables the production of what is needed, based on a signal of what has just been sold. The downstream process takes the product they need and 'pulls' it from the producer. This 'customer pull' is a signal to the producer that the product is sold. The pull system links accurate information with the process to minimizes overproduction. See Atohojuu and Atokouteihikitori.

PUSH SYSTEM: In contrast to the pull system, product is pushed into a process, regardless of whether it is needed right now. The pushed product goes into inventory, and lacking a pull signal from the customer indicating that it has been bought, more of the same product could be overproduced and put in inventory.

Q
QCD: Quality, Cost, and Delivery are the key customer satisfaction metrics that determine if a company is competitive. Kaizen activity focuses on improving QCD metrics. See also 3 Elements of Demand. QCDSM: Quality, Cost, Delivery - Safety & Morale. A set of performance management measures that includes employee satisfaction (safety & morale) as well as customer satisfaction. Lean Transformation aims to eliminate waste, improve QCDSM metrics, and increase profitability. QDCI / QCDI: Competitive issues of Quality, Delivery, Cost and Innovation. QUALITY CONTROL CIRCLE (QCC): A QCC is a small group of staff working together to contribute to the improvement of the enterprise, to respect humanity and to build a cheerful workgroup through the development of the staff's infinite potential. A quality control circle (QCC) team of people usually coming from the same work area who voluntarily meet on a regular basis to identify, investigate, analyse and solve their work-related problems.
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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.

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. QRM is most effective for companies making a large variety of products with variable demand, as well as for companies making highly engineered products. POLCA is the suggested production control in such environments. See POLCA.

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R
REPLENISH: See Atohojuu. RINGI: Shared decision making process, which encourages open input, consensus and ownership. Achieved by input from people further down an organisation being circulated across management, without more senior management forcing upon others their own ideas, but providing thoughts and feedback based on principles. ROOT CAUSE: The most basic underlying reason for an event or condition. The root cause is where action must be taken to prevent recurrence. See 5 Whys. RUNNERS, REPEATERS AND STRANGERS: Based on P-Q Analysis (Part-Quantity) and in a way similar to ABC classification, dividing products into three bands where runners constitute products with high volume and low variability (HDLV), repeaters medium demand, medium variability (MDMV), and strangers low demand, high variability (LDHV). The P-Q curve can be deep (8:2) or flat (6:4).

S
SAIKURUTAIMU: Process Cycle Time (the time required to complete one cycle of manual or automatic work or a combination thereof)
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SAN KE: See 3D. SAN MU: The 3 Mus (See Muda, Muri, Mura) SDCA: Standardize, Do, Check, Action Cycle - a refinement of the PDCA Cycle wherein management decides first to establish the standard before performing the regular PDCA function. See PDCA. SELF-MANAGEMENT: See Jishu Kanri. 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. See Build to Order. SEISANKANRIBAN: Performance Analysis Board (so named because it shows planned units vs. 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). SENSEI: One who provides information; a teacher, instructor, or rabbi. SEQUENTIAL CHANGEOVER: Also sequential set-up. In a flow process, when changeover times are within Takt Time, changeovers can be performed one after another. Sequential changeover assures that the lost time for each process in the line is minimized to one 'Takt' beat. A set-up team or expert follows the operator, so that by the time the operator has made one round of the flow line (at Takt time), it has been completely changed over to the next product. SEQUENTIAL SET-UP: See Sequential Changeover. 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.

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. SGC PRODUCTION SYSTEM: Variation of Toyota Production System propagated by Shingijutsu Global Consulting.

SHIGOTO: True Work, Value-adding Work (activities that add value as opposed to activities that may be considered work but do not modify materials). See Value-added Work.

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SHIJIBIRA, 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, the spec manifest is attached to the unit in a visible place so as to inform each worker what the unit requires). SHINGIJUTSU CONSULTING CO.: Shingijutsu provides world wide consulting practices on manufacturing technology. The literal translation of shingijutsu in English means new technologies. Originally formed by the late Yoshiki Iwata, current President Chihiro Nakao, and Akira Takenaka in 1987, all whom had worked for top-level manufacturing companies, and had personal relationships with Ohno and Shingo. See SGC Production System. SHINNONOURITSU: True Efficiency (production of ordered goods only with minimum work and investment, as opposed to arbitrarily producing at full capacity) SHOUJINKA: Personnel (or Staff) Reduction (literally the move to savings through reduction of personnel). 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. See Menashinoshoujinka. Contrast Teiinsei. SHOUJINKA (MENASHINOSHOUJINKA): Designing for Minimal Staffing, Manning Flexibility (designing a process so that it can be run by only one person, thus allowing increase and decrease of personnel according to the demand). SHOURYOKUKA: Labor Saving (reducing the need for staff). SHUSA: The leader of the team who designs and engineers the product into production. SINGLE DIGIT: See Hitoketa. SIX SIGMA: A structured process improvement program for achieving virtually zero defects in manufacturing and business processes. The fundamental objective is customer satisfaction through continuous improvement in quality. Six Sigma is the goal, which means products and processes will experience only 3.4 defects per million opportunities or 99.99966 percent good. Six Sigma can be understood/perceived at three levels:
Metric: 3.4 Defects Per Million Opportunities and NOT Defects per million. DPMO allows you take complexity of product/process into account. Rule of thumb is to consider at least three opportunities for a physical part/component - one for form, one for fit and one for function, in absence of better considerations. Also you want to be Six Sigma in the Critical to Quality characteristics and not the whole unit/characteristics. Methodology: DMAIC/DFSS structured problem solving roadmap and tools. Philosophy: Reduce variation in your business and take customer-focused, data drive decisions.

Six Sigma is a methodology that provides businesses with the tools to improve the capability of their business processes. This increase in performance and decrease in process variation leads to defect reduction and vast improvement in profits, employee morale and quality of product. 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, 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.

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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, 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, broad-based training Learning by doing

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SMED: Single Minute Exchange of Dies. A system of set-up reduction and quick changeover pioneered and developed by Shigeo Shingo. See Sumeddo, Sotodandori, Uchidandori. 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

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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. Through implementations such as Quality Circles and Suggestion Schemes (see Teian), employees are encouraged to continuously think about improvement, and participate in and contribute to the continuous improvement process. SOTODANDORI: External Setup, Off-line Setup (preparation for set up changes that is performed without stopping the production process). SUGGESTION: See Teian. STANDARD WORK: Standard Work is the most efficient combination of man, machine, and material. The three elements of standard work are 1) takt time, 2) work sequence, and 3) standard work-in-process. Performing standard work allows for a clear and visible 'standard' operation. Deviation from standard work indicates an abnormality, which is then an opportunity for improvement. See Hyoujunsagyou. STANDARD WORK COMBINATION SHEET (SWCS): A document detailing the sequence of production steps assigned to a single worker performing Standard Work. This document outlines the best combination of worker and machine. See Hyoujunsagyou Kumiawasehyou. STANDARD WORK SHEET (SWS): A visual work instruction drawing for Standard Work. Shows the work sequence, takt time, standard working process, and layout of the cell or workstation. See Standard Work. STANDARD WORK IN PROCESS: Also Standard WIP, or SWIP. The minimum work-in-process needed to maintain standard work. Standard WIP parts are 1) parts completed and in the machine after auto cycle, 2) parts placed in equipment with cycle times exceeding Takt time, and 3) the parts currently being worked on or handled by the operators performing standard work. See Hyoujuntemochi. STOP-THE-LINE AUTHORITY: When workers are able stop the line to indicate a problem, this is stop-the-line authority. The production line or machine remains stopped until the supervisor, manager, engineer, maintenance personnel, support staff or president have identified the problem and taken corrective action. Type of jidoka (line-stop jidoka). STRATEGIC PLANNING: Developing short and long-term competitive strategies using tools such as SWOT Analysis to assess the current situation, develop missions and goals, and create an implementation plan. SUGGESTION SYSTEM: In a suggestion system workers are encouraged to identify wastes, safety, and environmental concerns and submit improvement ideas formally. Rewards are given for suggestions resulting in cost savings. These rewards are typically shared among the production line or by the kaizen team. See Teian. SUPPLY CHAIN EXECUTION (SCE): A business strategy to improve shareholder and customer value by optimizing the flow of products, services and related information from source 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. SUPPLY CHAIN MANAGEMENT (SCM): A business strategy to improve shareholder and customer value by optimizing the flow of products, services and related information from source 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. SUPPLY CHAIN PLANNING (SCP): A subset of Supply Chain Management, this is the process of coordinating assets to optimize the delivery of goods, services and information from supplier to customer, balancing supply and demand. A Supply Chain Planning suite overlays a transactional system to provide planning, what-if scenario analysis capabilities and real-time demand commitments. SUMEDDO: Single Minute Exchange of Dies SMED (frequently used to describe very fast changeovers whether dies are involved or not). See SMED. SUNK COST: Any expenditure that has already taken place and can not be undone. Decisions should not be made based on sunk costs. SUPERMARKET: The supermarket is a tool of the pull system that helps signal demand for the product. In a supermarket, a fixed amount of raw material, work in process, or finished material is kept as a buffer to schedule variability or an incapable process. A supermarket is typically located at the end of a production line (or the entrance of a u-shaped flow line).
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SWS: See Standard Work Sheet. SWCS: See Standard Work Combination Sheet.

T
TABLE OF PRODUCTION CAPACITY BY PROCESS: See Process Capacity Table. TADAIMOCHI: Tending Many Machines (to run more than one machine - refers to responsibilities assigned to a single person). 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, using an orthogonal array. The method provides an efficient technique to design product tests prior to entering the manufacturing phase. However, it can also be used as a trouble-shooting methodology to sort out pressing manufacturing problems. The technique is used to optimise complex production systems and is named after engineer Dr Genichi Taguchi. TAKAI: Production innovation or production flexibility, 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. Takai is also a common surname in Japan. TAKAIUMPAN: Frequent Runs (taking many trips instead of conveying an excess of material each time). TAKOUTEIMOCHI: Tending Many Processes (to run more than one process - refers to responsibilities assigned to a single person). See Multi-process Handling. TAKT TIME: Takt time is the pace at which the customer is buying a particular product or service. 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 cannot be reduced or increased except by changes in production demand or available time to work. Takt time is one of the 3 Elements of JIT. Takt is a German word for 'beat' or 'rhythm'. See Jikkoutakutotaimu, Takutotaimu.

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TAKUTOTAIMU: Takt Time (net working time divided by the number of units ordered for that time - original meaning in German is the beat of a musical composition to produce the units ordered, the cycle time of all jobs on the line must be under takt time). See Takt Time. TANOUKOU: Multi-skilled, Cross-trained (workers who are not limited to running only one type of equipment). TANOUKOUKA: Fostering of training to produce multi-skilled workers. TARGET COSTING: A way of establishing a cost goal for a product or service in the design phase. Target costing follows this formula: Sales price - Target Profit = Target Cost. TEBANARE: Japanese for 'hands-free'. 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. 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. See Soikufu. TEIICHITEISHIHOUSHIKI: Fixed Position Stop System (even if the andon cord is pulled to stop the line, the line will not stop until the moving work reaches a fixed point). See Andon, Fixed Position Stop System. TEIINSEI: Fixed Staffing, Fixed Manning (designing a line so that there must be a certain number of operators to begin operation). Contrast Shoujinka.
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TEIKI: Scheduled Time (one of the 4 possible conditions of delivery). Contrast Futeiki. TEIRYOU: Scheduled Quantity (one of the 4 possible conditions of delivery). Contrast Futeiryou. THEORY OF CONSTRAINTS: Theory of constraints (TOC) is an overall management philosophy that aims to continually achieve more of the goal of a system. If that system is a for-profit business, then the goal becomes one of making more money, in the present as well as in the future. According to TOC, 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). These constraints can be broadly classified as internal resource constraint, market constraint and policy constraint. In order to manage the performance of the system, these constraints must be identified and treated carefully. Theory of Constraints is based on the premise that the rate of revenue generation is limited by at least one constraining process (i.e. a bottleneck). Only by increasing throughput (production rate) at the bottleneck process can overall throughput be increased. The key steps in implementing an effective TOC approach are:
1. 2. 3. 4. 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, permanently increase bottleneck capacity) Rinse and repeat (after taking action, the bottleneck may have shifted or require further attention)

THROUGHPUT: The rate at which the entire system generates money. 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, inventory, and operating expense). Throughput accounting uses three measures of income and expense:
Throughput (T) is the rate at which the system produces "goal units." When the goal units are money (in for-profit businesses), throughput is sales revenues less the cost of the raw materials (T = S - RM). Note that T only exists when there is a sale of the product or service. Producing materials that sit in a warehouse does not count. ("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 - "variable" being defined according to the Marginal Costing philosophy.) Investment (I) is the money tied up in the system. This is money associated with inventory, machinery, buildings, and other assets and liabilities. In earlier TOC documentation, the "I" was interchanged between "Inventory" and "Investment." The preferred term is now only "investment." Note that TOC recommends inventory be valued strictly on totally variable cost associated with creating the inventory, not with additional cost allocations from overhead. Operating expense (OE) is the money the system spends in generating "goal units." For physical products, OE is all expenses except the cost of the raw materials. OE includes maintenance, utilities, rent, taxes, payroll, etc.

THULLA: Thulla is the term defined for the resource waste time during the processing due to the motivational reasons. This term is a management concern. TIM WOODS: Easy acronym to remember 8 wastes.
T - Transport - Moving people, products & information I - Inventory - Storing parts, pieces, documentation ahead of requirements M - Motion - Bending, turning, reaching, lifting W - Waiting - For parts, information, instructions, equipment O - Over production - Making more than is IMMEDIATELY required O - Over processing - Tighter tolerances or higher grade materials than are necessary D - Defects - Rework, scrap, incorrect documentation S - Skills - Under utilizing capabilities, delegating tasks with inadequate training

TIME-BASED STRATEGY: Driving improvement activity through focus on time and its relation to quality, cost, delivery, safety, and morale. Reduction in lead-time, set-up time, cycle time as a means of becoming more competitive. TOTAL CYCLE TIME (TCT): The time taken from work order release into a value stream until completion / movement of product into shipping / finished goods. Contrast Takt Time. 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
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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.) TOTAL QUALITY MANAGEMENT (TQM): Total Quality Management is a management strategy aimed at embedding awareness of quality in all organizational processes. TQM has been widely used in manufacturing, education, government, and service industries, as well as NASA space and science programs. As defined by ISO: "TQM is a management approach of an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." In Japanese, TQM comprises four process steps, namely:
Kaizen Focuses on Continuous Process Improvement, to make processes visible, repeatable and measureable. Atarimae Hinshitsu Focuses on intangible effects on processes and ways to optimize and reduce their effects. Kansei Examining the way the user applies the product leads to improvement in the product itself. Miryokuteki Hinshitsu Broadens management concern beyond the immediate product.

TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.

TOUMENNERAU SUGATA: The Target State for Now (an improvement in the current state, but still short of the Should Be State). See Monotojouhounonakarezu. TOYOTASEISAN HOUSHIKI: The Toyota Production System (the system developed by the Toyota Motor group of companies to minimize investment and production volume, and maximize productivity and profit). See Toyota Production System. TOYOTA PRODUCTION SYSTEM (TPS): A methodology that resulted from over 50 years of Kaizen at Toyota, one of the most successful companies in the world. TPS is built on a foundation of Leveling, with the supporting pillars of Just-in-Time and Jidoka. Often copied and slightly changed by consulting firms.
TPS - 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. The aim of TPS is to eliminate all muri, mura, muda (overburden, unevenness, waste) from the operations. It is a system that uses the PDCA approach to involve everyone in solving problems and improving quality, cost, delivery, safety, and morale. The Toyota Production System 'house' structure was used because with a roof, pillars and foundation it represented a familiar shape that also represented stability. TPS continues to evolve today. Toyota people are beginning to call TPS the "Thinking People System" instead of the Toyota Production System. TPS is always improving . TPS is the Operational Blueprint for a Lean Enterprise The organizations that have implemented Lean most successfully have adopted TPS as their operational blueprint. They have studied and understood the system, renamed it to take ownership of it as their own system, and adopted as pure a form of TPS as possible

Make what the customer needs, when it is needed, in the right amount Minimize inventories
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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, 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. Left Pillar Just-in-Time (Takt-Flow-Pull) Eliminate the 7 Wastes of Production Create a smooth flow of product and information, minimize inventory and space Jidoka (Autonomation) Build quality into the process, separate man & machine using intelligent automation. Implement low-cost automation, error-proofing, equipment upgrades and reliability improvement. Heijunka (Leveling) Stabilize production schedule variability Reduce total Lead-time, coordinate sales, scheduling, and customer needs

Right Pillar

Foundation

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TOTAL PRODUCTIVE MAINTENANCE (TPM): Total productive maintenance aims at maximizing equipment effectiveness and uptime throughout the entire life of the equipment. See OEE.
The Five Pillars of TPM A World Class manufacturer requires that their production equipment runs reliably and safely, producing high quality products. Equipment breakdowns, unplanned maintenance, 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. TPM is a set of improvement system that incorporates and builds on Lean tools such as 5S, Visual Controls, SMED, Pokayoke, and others. The process is organized into several progressive steps, referred to as the "five pillars".

Pillar Autonomous Maintenance

Function Clean

Explanation Autonomous maintenance covers the operator performing initial cleaning, general inspection, and process inspection while establishing standards for cleaning, 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. Training of maintenance is in place to give them the knowledge of how to train operators as well as how to monitor, improve & correct design flaws and equipment restoration. The ultimate goal being that operators responsibilities would cover external while maintenance's responsibility would be for internal. A system developed to cover daily, weekly and monthly checks in conjunction with identifying symptoms of deterioration and implementing an equipment refurbishment program. A measure that categorizes production losses of availability, performance and quality for a piece of equipment. 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. The system has five major components: maintenance design standards, life cycle costing, maintenance database, maintenance and operator involvement in equipment planning & purchasing, and early warning diagnostics.

Maintenance Mindset & Training

To Detect

Planned Maintenance System Overall Equipment Effectiveness Early Equipment Management System

To Correct

To Perfect

To Protect

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TPM identifies the 16 types of waste (Muda) and then works systematically to eliminate them by making improvements (Kaizen). TPM has 8 pillars of activity, each being set to achieve a zero target. These pillars are:
1. 2. Focused improvement (Kobetsu-Kaizen): for eliminating waste Autonomous maintenance (Jishu-Hozen): in autonomous maintenance, the operator is the key player. It involves daily maintenance activities carried out by the operators themselves that prevent the deterioration of the equipment. 3. 4. 5. 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. Quality maintenance (Hinshitsu-Hozen): This is actually maintenance for quality. It includes the most effective quality tool of TPM: poka-yoke, which aims to achieve zero loss by taking necessary measures to prevent loss. 7. 8. Safety, hygiene, environment: for achieving zero work-related accidents and for protecting the environment. Office TPM: for involvement of all parties to TPM since office processes can be improved in a similar manner as well.

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TPM: See Total Productive Maintenance. The concept of Zero is an overriding aim of TPM. TPM tries to reduce all forms of waste in the process to as small as is economically possible or, ideally, Zero.

TSURUBE SYSTEM: A way to keep product flow continuous even when there are interruptions such as outside processing or batch operations. The tsurube system is often used when product leaves the flow line for processing through
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equipment that can not be placed into the cell (vendor operations, heat treat, plating, anodizing, etc.). 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. See Well Wheel System. TSURUBEHOUSHIKI: Pickup and Supply System (a shuttle delivery system that picks up empty containers and delivers materials or parts in the same run - 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. TWO-BIN SYSTEM: An example of both visual management and the pull system, whereby two bins or containers are used trigger reorder of parts or materials. Each bin contains enough parts to last during the delivery lead-time. When one bin is empty, it is time to reorder the two-bin quantity.

U
UCHIDANDORI: Internal Set-up, 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). See Internal Setup.

V
VALUE-ADDED WORK: Work that the customer is willing to pay for. A transformation of the shape or function of the material/information in a way that the customer will pay for. See Shigoto. 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. 3) The action must somehow change the product or service in some manner.

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VALUE STREAM: A value stream is a series of all actions required to fulfill a customer's request, both value added and not. A value stream contains a product or a family of products that have similar material and information flows. Value Streams are typically identified using a combination of Pareto Analysis and Process Routing analysis. 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, office, or hospital operation, and a process level map with a narrower scope and more detail. The 'Current State' is how the process works today and the 'Future State' map shows improvements towards a long-term 'ideal state'. See Monotojouhounonakarezu.

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

W
WASTE: An activity that that consumes valuable resources without creating customer value. See Muda.

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WELL WHEEL SYSTEM: See Tsurube System. WATERSPIDER: The waterspider is a skilled and well-trained person who makes the rounds supplying parts, assisting with changeover, providing tools and materials, and any additional help needed to maintain Standard Work and keep the flow going. The waterspider has a routine and knows all processes thoroughly enough to step in if needed. At Toyota, performing the waterspider role is a prerequisite for supervision and management positions. Named after the whirligig beetle that swims about quickly in the water. See Mizusumashi. WORK SEQUENCE: The defined steps and activities that need to be performed in order for the work to be completed. WORLD CLASS MANUFACTURING: WCM 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. The seven keys to WCM success, coined by MAPICS, in no particular order, 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; however, taken together, they describe the focus of the activities and attitudes that define world class.

XYZ
YAMAZUMI: A yamazumi board is a bar graph typically showing the balance of workloads as operator cycle times. The yamazumi can also be sued for load planning and scheduling. The word "yamazumi" literally means "to stack up". YARUKI: The attitude of "Can do" - everything is achievable. YOKOTEN: Yokoten encompasses the methods of documenting and distributing knowledge about what works and what doesn't. Yokoten is a form of knowledge management. At its most basic level, it can be the notebook that a team keeps of as a history of the group and problems encountered. Yokoten is the library of A3 problem reports that a team or work group maintains for all to access. As a knowledge management device, Yokoten makes knowledge organizational, not individual. In the process of dealing with problems Yokoten standardizes a solution and shares it. This typically happens
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at the work group level. Sharing of standard procedures across an organization is the ideal. Technology is often specific to a manufacturing process. Most standard work processes are place and process specific whereas a solution to a technical problem is not. YOOIDON HOUSHIKI: Simultaneous-start Time Study, 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, very much as the chaebol of South Korea have driven that country's growth over the last 25 years. Following the break-up of the zaibatsu, looser alliances called keiretsu emerged in which close trading relationships were cemented by crossshareholdings within the group.

APPENDIX A: LEAN RESOURCES ON THE WEB

Advanced Manufacturing

www.advancedmanufacturing.com/leanmanufacturing/leanmanufacturing.htm

Good collection of article in html and pdf formats from Advanced Manufacturing Magazine

EMS Consulting Group Inc.

www.emsstrategies.com/lean-resources.html

Lean Manufacturing Consulting and Training firms website with good articles.

Gemba Panta Rei

www.gembapantarei.com

A weblog about better ways to make things better.

Gemba Research

www.gemba.com

GembaTM has been a firm focused on delivering knowledge and results through kaizen since 1998. The site contains good training materials and articles.

iSixSigma

www.isixsigma.com/me/lean_manufacturing/

Comprehensive resource on Lean, Lean Six Sigma and Lean Manufacturing

Lean Advisers Inc.

www.leanadvisers.com

Lean consulting firm website with good collection of articles.

Lean Enterprise Academy UK

http://www.leanuk.org/Lean_community_articles.htm

Lean training consultancy with good information on their website.

Lean Enterprise Institute www.lean.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.

Lean Portal

http://membres.lycos.fr/hconline/engineer_us.htm

Valuable collection of training materials on Lean and related topics.

Northwest Lean Networks

www.nwlean.net/

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NWLEAN assists companies in implementing lean manufacturing and lean production systems The site contains good information, downloads and tools.

Strategos Inc.

www.strategosinc.com

Lean Manufacturing and Strategy is the primary focus of this website. Most of the content is educational, unique, wide-ranging and, above all, useful.

Superfactory

www.superfactory.com

Resources, tools, communities, events and books supporting lean manufacturing, enterprise excellence and best practices

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APPENDIX B: SUGGESTED READING

Lean Thinking: Banish Waste and Create Wealth in Your Corporation by James Womack and Daniel T. 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, 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. Womack, Daniel T. 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. Schonberger

The World Class Manufacturing: The Lessons of Simplicity Applied by Richard J. Schonberger

Learning to See Version 1.3: 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, Jorge L. Larco, Stephen H. Martin

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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

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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. Womack and Daniel T. 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. 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

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From the American System to Mass Production, 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

Whos 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. 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, Operations, and Engineering Professionals By Art Smalley 2005 Shingo Research Prize Recipient Creating Continuous Flow: An Action Guide for Managers, 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 Rick Harris, Chris Harris, and Earl Wilson 2005 Shingo Research Prize Recipient Seeing the Whole: Mapping the Extended Value Stream By James P. Womack and Daniel T. Jones 2003 Shingo Research Prize Recipient

Agile Manufacturing : Forging New Frontiers by Paul T. Kidd

Agile Manufacturing: The 21 Century Competitive Strategy by A. Gunasekaran (Ed.)

st

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Better Thinking, Better Results: Using the Power of Lean as a Total Business Solution by Bob Emiliani with David Stec, 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 Wemmerlv 2003 Shingo Research Prize Recipient

Collaborative Advantage: Winning Through Extended Enterprise Supplier Networks by Jeffrey H. 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), Pascal Dennis 2006 Shingo Research Prize Recipient

Breaking the Cost Barrier: A Proven Approach to Managing and Implementation Lean By Stephen A. Ruffa and Michael J. Perozziello 2001 Shingo Research Prize Recipient

Running Today's Factory: A Proven Strategy for Lean Manufacturing By C. Standard, D. Davis 2000 Shingo Research Prize Recipient

Becoming Lean: Inside Stories of U.S. Manufacturers by Jeffrey K. Liker, Editor 1998 Shingo Research Prize Recipient

World Class Manufacturing: The Next Decade by Richard J. Schonberger 1998 Shingo Research Prize Recipient

The Handbook for Productivity Measurement and Improvement By William F. Christopher and Carl G. Thor, ed. 1995 Shingo Research Prize Recipient

Mass Customization: The New Frontier in Business Competition By B. Joseph Pine II 1995 Shingo Research Prize Recipient

The Gold Mine: a Novel of Lean Turnaround by Freddy Ball and Michael Ball

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All I Need to Know About Manufacturing I Learned in Joe's Garage: World Class Manufacturing Made Simple by William B. 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, Effective Corporate Action With Hoshin Planning by Michael Cowley, Ellen Domb

JIT is Flow: Practice and Principles of Lean Manufacturing By Hiroyuki Hirano and Makoto Furuya

Better Thinking, 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

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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 - 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, 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

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