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

Francois de Villiers, 31 May 2006


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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 (

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

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

When bombarded with questions from our group on what inspired his thinking. There I met Mr. he just laughed and said he learned it all from Henry Ford's book. Taiichi Ohno. the system's creator. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 6 OF 107 .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." THE LEAN.


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

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


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

For lean enterprises to evolve beyond the current "tool age" focused on implementing individual methods such as valuestream mapping. 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. etc. Is everyone touching the value stream actively engaged in operating it correctly and continually improving it • • 4 4 CONDITIONS OF DELIVERY: Possible conditions are Scheduled Time. Flexible. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 12 OF 107 . Teiryou. and Leveling. to a new age focused on implementing lean management. Unscheduled Quantity. The key is to focus on the fundamental issues of Purpose. People (Partners). Futeiryou. Available. managers and executives must think differently about lean. and that all the steps are linked by Flow. Process. See Futeiki. 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. Pull. Adequate. Scheduled Quantity. Unscheduled Time. Process : means the organization assess each major value stream to make sure each step is Valuable. 4P’s OF THE TOYOTA WAY: Philosophy. Problem Solving THE LEAN. People. kanban. kaizen. Capable. Teike. Process.

measurement and environment. 5 5Cs: Alternate English translation used to describe the same stages of the 5Ss. method. understands the benefits and contributes to the improvement 5M COMPONENTS OF TECHNOLOGY: Technology consists of the following five elements. What. Manpower (engineers and skilled workers): M3 4. Cost and Delivery. materials. machines. machine. 1. material. best working environment to support sustainable Quality. Clear Out . Machines and equipment: M2 3.4 W's & 1H: Who. 5 C’s is a 5 step technique very similar to 5S to stabilise. Understanding these factors and the establishment of standards are key steps in strengthening the production processes. 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. Modern technology must have all of these elements to function properly. THE LEAN. Where. Management (technology management and management technology): M4 5. Raw materials and resources (including energy): M1 2. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 13 OF 107 . Ensures that the standard is maintained and improved Custom and Prctice . When and How. A useful tool to help develop an objective and a concise statement of the problem. 5M's and E: Methods. manpower. Also se PEMPEM. Manualy clean to spot abnormal conditions Conformity . and measurement. maintain and improve the safest. Everyone follows the rules. Markets for technology and its products: M5 5M OF PRODUCTION: A method for managing resources in gemba—specifically those known as "5M"—manpower. or what we may call the five Ms.Separate the essential from the non essential Configure . A place for everything and everything in its place Clean and Check .

and shitsuke (collective in Japanese “Go Esu”). the customer experience. safety. sweep. Derived from the Japanese words seiri.5S: The principle of waste elimination through workplace organization. In English the 5S are sort. 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. by anyone. standardize. straighten. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 14 OF 107 . throw it out” “A place for everything. cost. It doesn’t make sense to start by arranging things neatly. seiton. if most of those things are not needed. and enables World Class Performance. and self-discipline. 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 five ‘S’ words below are the steps of 5S. seiso. The discipline of 5S is a fundamental building block for Lean Manufacturing or the Lean Office. the better” THE LEAN. 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. Good 5S improves quality. seiketsu. It is easily applied to any business and any process.



Sort 5 4.5S KAIZEN RADAR CHART: Graphical representation of score out of 5 for each S of 5S.9 Standardize 0 Straighten 3.7 2. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 17 OF 107 .7 Sweep THE LEAN.4 Self.2.2 Discipline 1.

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). Causes: • Overloading the machine • Loose bolts and nuts • Excessive wear • Lack of oil • Contamination 2. Causes: • Manual error • Bad material THE LEAN. doing rework. Idling and Minor Stops Brief stoppages due to 'insignificant' problems. or changing the settings during a run. Set-up and Adjustments Time lost during changeover from the current product to the next product. Reduced Speed Loss when machine operates below design standard speeds. Breakdowns and Failures A loss of equipment function needed to perform a operation. TPM. 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. Also see PEMPEM. 6 6M: Same as 5M of Production with the addition of Mother Nature. These losses are the most common causes of lost time and efficiency of production equipment. surroundings. Defects Time lost to making scrap. See OEE. Other definitions: • • • • • • • • • • • • Machines Methods Materials Measurements Milieu (Mother Nature. or managing defective parts. Causes: • Remove tooling • Find tooling • Attaching new tooling • Adjust new settings 3. Causes: • Parts stuck in a chute • Removing chips • Malfunction of sensors • Program error 4. 1. Causes: • Machine wear • Human intervention • Tool wear • Overloading machine 5. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 18 OF 107 .

Startup Rejects (Losses that Deteriorate Quality Rate) Rejects during warm-up. cutting blade losses should be categorized as either performance or downtime losses for the purpose of calculating OEE. May be due to improper setup. Since this is not a common loss to all machines. etc. JIPM identifies cutting blade losses as a seventh loss. (Currently. warm-up period.Tool breakage Program error 6. Startup and Yield Time it takes a machine to 'warm up' to full production after a period of downtime. 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. Quality Loss Production Rejects Rejects during steady-state production. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 19 OF 107 . Causes: • Slowly bringing machines up to speed • Raising ovens to set temperature • Running off excess material • Process related loss of material. Ideal Run Rate or Nameplate Capacity).) THE LEAN.k. Speed Loss Reduced Speed Anything that keeps the process from running at its theoretical maximum speed (a. startup or other early production.a. • • 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).

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

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

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



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

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

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

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

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

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

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

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


when whole-system analysis is performed. CAUSE AND EFFECT DIAGRAM: A problem solving tool used to identify relationships between effects and multiple causes (also Fishbone Diagram. See 5S. CEDAC: Acronym for Cause and Effect Diagram with the Addition of Cards. cellular manufacturing has not taken into account waste elimination or Standard Work principles. THE LEAN. 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.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. A series of discussion between managers and their employees during which data. Neatness. CELLULAR MANUFACTURING: An alignment of processes and equipment in correct process sequence. CANDO is an industrial housekeeping program developed by Henry Ford.C-VARWIP: Circular . circa 1922. CANDO: Cleanup. Arranging. and therefore greater savings have not been realized. 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. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 34 OF 107 . where operators work within the cell and materials are presented to them from the outside of the cell. See Labour Linearity. Discipline and Ongoing Improvement . and analysis are thrown like a ball. Ishikawa Diagram). CEDAC is a method for involving team members in the problem solving process. This opens productive dialogue throughout the entire company. ideas. Often.A precursor to 5S.

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

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

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

e. Categories of cost include internal and external failure costs. or to combine material from different origins. Also see Kanban. Movement of parts shown in blue. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 38 OF 107 . or to sort material intended for different destinations. (i. circulation of release authorizations in green. Normally used when product must leave the cell for processing through equipment that cannot be put into the cell. This may be done to change type of conveyance.. and failure. Hybrid CONWIP/kanban control. 1990(CONstant Work In Process) production control system tries to maintain constant the maximum amount of work in process in the system. 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.CONTROL ELEMENT: Any specific process variable that must be controlled. One kanban card is attached to a job from the beginning of the line. 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. wave solder) Curtain quantities are established using the following formula: THE LEAN. Drum-Buffer-Rope. This control system is implemented by means of kanban cards. The origin of this idea came from the design of lathes and machine tools with the chucks on the left side. the attached card is released and is sent to the beginning of the line. and release authorizations in green. curing oven. COST OF POOR QUALITY: Costs associated with supplying a poor quality product. appraisal. The maximum work in process equals the total number of cards in the system. POLCA. See Cellular Manufacturing. CONWIP: A pull technique adopted to high-mix low volume environments. plating. The Conwip –Spearman et al. See Noritsugiunpan. where it will be attached to another job to be processed. or counterclockwise. Categories of cost include prevention. heat treat. When a part is shipped to the system. COST OF QUALITY: Costs associated with supplying a quality product. circulation of kanban in red. COUNTER MEASURES: Actions taken to bring less than expected results of a process back up to targeted levels. making it easier for right-handed people to load from right to left. Movement of parts shown in blue. The measurement of a control element indicates whether the process is operating under stable conditions. CONWIP control. CURTAIN EFFECT: A method that permits the uninterrupted flow of production regardless of external process location or cycle time.

DEMAND AMPLIFICATION: The tendency for fluctuations in demand to increase as they move up the supply chain. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 39 OF 107 . See Saikurutaimu. DANGAE: Changeover. The protected areas are the Drum. Cycle time can be categorized into 1) manual cycle time. Set-up Change (of tools. 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. BUFFER and ROPE are: • • DRUM . 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. The DBR logistical system is a finite scheduling mechanism that balances the flow of the system. and safety of the manufacturing and assembly processes by design. • ROPE . BUFFER . to enable the production of a variation of a product on the same machine or line). DRUM-BUFFER-ROPE: Drum-Buffer-Rope (DBR) scheduling is the manufacturing application of the Theory of Constraints. then storing products until they are sold. dies. DATSU-CHAKU: Japanese term meaning “Unload/Load” used to tell the traditional way of component loading on a machine/equipment.A protection against Murphy.A schedule for releasing raw materials to the floor. Instead of producing in long runs and large batches. Contrast Chaku-Chaku. DESIGN OF EXPERIMENT: Planning and conducting experiments and evaluating the results. Often used interchangeably with Lean Manufacturing. DbFM: See Demand-based Flow Manufacturing. etc. and 3) auto cycle time. the due-dates and the assemblies of constraint parts with non-constraint parts. The Rope is derived according to the Drum and Buffers. rather than forecast driven. DESIGNED FOR MANUFACTURING AND ASSEMBLY (DFMA): A way of improving cost. DOWNSTREAM PULL SYSTEM: See Pull System. Eliyahu Goldratt. keyed to direct customer orders. The root origin for DbFM is in the lean production methods first developed and remarkably well practiced by Toyota. demand-flow lines create a variety of items each day. This terminology is usually compared with "Chaku-Chaku". The definitions of DRUM. This is the time provided for parts to reach the protected area. and hoarding. See SMED. forward buying. 2) machine cycle time. 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). DANDORIGAE. its mission is to ensure the proper subordination of the non-constraints. THE LEAN. a body of thought developed by Dr.A schedule for the constraint. 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.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. See Nichijo Kanri. Demand lumping is a major contributor to demand amplification. D DAILY MANAGEMENT: The day-to-day activities that are required to serve the customers and ensure that the business is generating profit. It is known to be caused by batching. Often referred to as the bullwhip effect in recent literature. DEMAND-FLOW MANUFACTURING: Demand-flow manufacturing is customer-driven. inventory and operating expenses. Also referred to as touch time or hands-on time. DOE: See Design of Experiment. quality. DEMAND-BASED FLOW MANUFACTURING: Demand-based Flow Manufacturing (DbFM) has demonstrated its success as a high velocity order-to-delivery strategy and process.

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

Base Stock. the next piece of material.EXTENDED KANBAN: An alternative to single Kanban in dynamic environments. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 41 OF 107 . The aim is to identify possible failures and implement corrective actions to prevent failures. the customer demand signal is instantaneously transferred to all stations. while in the latter it is a non-instantaneous process (Dallery and Liberopoulos. This system is also a hybrid combination of Kanban system and Base stock like the Generalized Kanban system. 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. EXTERNAL SET-UP: All set-up tasks that can be done while the machine is still running. The main difference between Extended Kanban and Generalized Kanban is that in the former. 2000). See Sotodandori. Drum-Buffer-Rope. THE LEAN. CONWIP. Also see Kanban. preparing or fixtures. Examples are collecting tools. 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 Teiichiteishihoushiki. The goal of FIFO is to prevent earlier orders from being delayed unfairly in favor of new orders. The flow (or lack thereof) becomes evident and the wastes and redundancies are identified. 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. FLEXIBLE WORKFORCE: See Shojinka.FAST AND FLEXIBLE MANUFACTURING: The concept of Fast and Flexible Manufacturing. FLOW: See Nagareka. FIFO: See First-in First-out. lots or mass processing. FLOW PRODUCTION: A way of doing things in small quantities in sequential steps. the production line will stop. a system of keeping track of the order in which information or materials need to be processed. quickest possible increment THE LEAN. Seen by some as the next major framework for world-class manufacturing. also referred to as Agile Manufacturing. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 42 OF 107 . Product (or service) moves (flows) from process to process in the smallest. rather than in large batches. FIRST IN FIRST OUT: Also known as FIFO. was introduced in 1991 by US government-sponsored research at Lehigh University. FLOW CHART: A problem solving tool that maps out the steps in a process visually. See Agile Manufacturing. 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.

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

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

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

Contrast to Vertical Handling. It is often used to reveal the variations that any processes contain. Horizontal handling does not benefit flow. can mean “less than 10 seconds.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. HINSHITSU HOZEN: Quality Maintenance HISTOGRAM: A problem solving tool that displays data graphically in distribution. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 46 OF 107 . The process is self-correcting and encourages THE LEAN. HOSHIN KANRI: A method of policy deployment and strategic decision making that focuses and aligns the organization on a few vital “breakthrough” improvements.” 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. HITOKETA: Single Digit (referring to times measured with no more than single digit numbers. beneficial changes to the system until no further improvements appear to be possible. The objectives and means to achieve the objectives are cascaded down through the entire organization using a series of linked matrices.

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


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

The three elements to making Just-in-Time possible are Takt time. material. literally meaning “tour”. THE LEAN. See Milkrun. 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). and the Pull system. JUNJIDANGAE: Rolling Changeover.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). and machinery. Flow production. See Jasutointaimu. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 50 OF 107 . using minimal resources of manpower. 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. JUNKAI: Japanese for milkrun.


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

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

• • •

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


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

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

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

How can we increase value? How to waste less resources? How can we do both? THE LEAN. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 58 OF 107 .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.

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

Accounting and financial metrics often measure only the end result.LEAN METRICS: Lean metrics go beyond traditional financial and accounting measurements. The daily or weekly metric only needs to alert you that a problem exists. solve problems or motivate people. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK . Inventory. Quality. This is OK. PAGE 60 OF 107 THE LEAN. 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. People and Customers. They do not help control the process. The types of metrics and measurement appropriate for a Lean Manufacturing system include Material Handling.

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

(3) defining the "value stream" current and future. THE LEAN. A successful Lean Transformation should result in a Lean Enterprise. LEAN TRANSFORMATION: Developing a culture that is intolerant to waste in all of its forms. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 62 OF 107 .LEAN TRANSACTIONAL: The application of Lean to business processes such as paperwork flow through an office in accounts or marketing. (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. (2) communicating that need for change. an organization that is engaged in the endless pursuit of waste elimination. The transformation starts with (1) identifying the need for change.

reducing the fluctuation of customer demand with the eventual goal of being able to produce any product any day. Production leveling allows a consistent workflow.LESSONS LEARNT: See Hansei. not including the manual time to load and unload. M MACHINE AUTOMATIC TIME: The time it takes for a machine to produce one unit. This allows for improved flow of demand from the customer and improvements in anticipated demand. 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. Bullwhip Effect. See Heijunka. LEVELING: Smoothing out the production schedule by averaging out both the volume and mix of products. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 63 OF 107 . LOAD-LOAD: See Chaku Chaku. LEVEL SELLING: The elimination of sales spikes generated by end of month sales targets at dealers and so forth. THE LEAN. 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. See Demand Amplification.

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

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

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.

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)

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

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

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

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

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

Drum-Buffer-Rope. THE LEAN.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. while avoiding their drawbacks. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 75 OF 107 . Generic Kanban. Also see Kanban. POLCA was introduced by Suri (1998) as one component of the overall Quick Response Manufacturing (QRM) strategy. Extended Kanban. POLCA is a hybrid push-pull strategy that combines the best features of pull (Kanban) and push (MRP) systems. Quick Response Manufacturing. CONWIP.

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

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

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

THE LEAN. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 79 OF 107 . See POLCA.QUALITY FUNCTION DEPLOYMENT (QFD): A methodology involving a cross-functional team to reach consensus about final product specifications based on the wishes of the customer. as well as for companies making highly engineered products. POLCA is the suggested production control in such environments. QRM is most effective for companies making a large variety of products with variable demand. 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.

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

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

This increase in performance and decrease in process variation leads to defect reduction and vast improvement in profits. DPMO allows you take complexity of product/process into account. Six Sigma is the goal. which means products and processes will experience only 3.4 defects per million opportunities or 99. Manning Flexibility (designing a process so that it can be run by only one person. 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). THE LEAN. SHUSA: The leader of the team who designs and engineers the product into production. data drive decisions. all whom had worked for top-level manufacturing companies. • • Six Sigma is a methodology that provides businesses with the tools to improve the capability of their business processes. Contrast Teiinsei. SHINNONOURITSU: True Efficiency (production of ordered goods only with minimum work and investment. 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.99966 percent good. SINGLE DIGIT: See Hitoketa. Six Sigma can be understood/perceived at three levels: • Metric: 3.4 Defects Per Million Opportunities and NOT Defects per million. Originally formed by the late Yoshiki Iwata. Rule of thumb is to consider at least three opportunities for a physical part/component . The literal translation of ‘shingijutsu’ in English means ‘new technologies’. Philosophy: Reduce variation in your business and take customer-focused. that supports a variable number of workers performing the tasks in the layout. SHINGIJUTSU CONSULTING CO.: Shingijutsu provides world wide consulting practices on manufacturing technology. SHOURYOKUKA: Labor Saving (reducing the need for staff). and had personal relationships with Ohno and Shingo. as opposed to arbitrarily producing at full capacity) SHOUJINKA: Personnel (or Staff) Reduction (literally “the move to savings through reduction of personnel”). shojinka requires workers trained in multiple disciplines. employee morale and quality of product. current President Chihiro Nakao. SHOUJINKA (MENASHINOSHOUJINKA): Designing for Minimal Staffing.SHIJIBIRA. 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. in absence of better for form. work center layout. one for fit and one for function. thus allowing increase and decrease of personnel according to the demand). Methodology: DMAIC/DFSS structured problem solving roadmap and tools. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 82 OF 107 . The fundamental objective is customer satisfaction through continuous improvement in quality. SIX SIGMA: A structured process improvement program for achieving virtually zero defects in manufacturing and business processes. See SGC Production System. Also you want to be Six Sigma in the Critical to Quality characteristics and not the whole unit/characteristics. See Menashinoshoujinka. the capability to vary the manufacturing process as appropriate to fit the demand profile. Continually optimizing the number of workers in a work center to meet the type and volume of demand imposed on the work center. such as U-shaped or circular. and Akira Takenaka in 1987.

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. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 83 OF 107 . broad-based training Learning by doing THE LEAN.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.

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

SUGGESTION: See Teian. safety. a fixed amount of raw material. Decisions should not be made based on sunk costs. 2) work sequence. Off-line Setup (preparation for set up changes that is performed without stopping the production process). employees are encouraged to continuously think about improvement. Shows the work sequence. This document outlines the best combination of worker and machine. and create an implementation plan. services and related information from source to customer. engineer. work in process. Rewards are given for suggestions resulting in cost savings. A supermarket is typically located at the end of a production line (or the entrance of a u-shaped flow line). STOP-THE-LINE AUTHORITY: When workers are able stop the line to indicate a problem. SUPPLY CHAIN PLANNING (SCP): A subset of Supply Chain Management. The minimum work-in-process needed to maintain standard work. The three elements of standard work are 1) takt time. See Teian. See Hyoujuntemochi. standard working process. The production line or machine remains stopped until the supervisor. manager. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 85 OF 107 . SUPPLY CHAIN EXECUTION (SCE): A business strategy to improve shareholder and customer value by optimizing the flow of products. STANDARD WORK COMBINATION SHEET (SWCS): A document detailing the sequence of production steps assigned to a single worker performing Standard Work. services and related information from source to customer. support staff or president have identified the problem and taken corrective action. SUGGESTION SYSTEM: In a suggestion system workers are encouraged to identify wastes. develop missions and goals. this is the process of coordinating assets to optimize the delivery of goods. STRATEGIC PLANNING: Developing short and long-term competitive strategies using tools such as SWOT Analysis to assess the current situation. which is then an opportunity for improvement. STANDARD WORK IN PROCESS: Also Standard WIP. STANDARD WORK SHEET (SWS): A visual work instruction drawing for Standard Work.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. 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. or SWIP. THE LEAN. These rewards are typically shared among the production line or by the kaizen team. takt time. Deviation from standard work indicates an abnormality. what-if scenario analysis capabilities and real-time demand commitments. SUPPLY CHAIN MANAGEMENT (SCM): A business strategy to improve shareholder and customer value by optimizing the flow of products. See SMED. 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. and material. machine. and 3) the parts currently being worked on or handled by the operators performing standard work. balancing supply and demand. or finished material is kept as a buffer to schedule variability or an incapable process. Performing standard work allows for a clear and visible 'standard' operation. Type of jidoka (line-stop jidoka). In a supermarket. maintenance personnel. and layout of the cell or workstation. and environmental concerns and submit improvement ideas formally. See Hyoujunsagyou. See Hyoujunsagyou Kumiawasehyou. Standard WIP parts are 1) parts completed and in the machine after auto cycle. and participate in and contribute to the continuous improvement process. STANDARD WORK: Standard Work is the most efficient combination of man. SUMEDDO: Single Minute Exchange of Dies – SMED (frequently used to describe very fast changeovers whether dies are involved or not). Through implementations such as Quality Circles and Suggestion Schemes (see Teian). SUNK COST: Any expenditure that has already taken place and can not be undone. services and information from supplier to customer. See Standard Work. 2) parts placed in equipment with cycle times exceeding Takt time. this is stop-the-line authority. and 3) standard work-in-process. SUPERMARKET: The supermarket is a tool of the pull system that helps signal demand for the product. SOTODANDORI: External Setup. A Supply Chain Planning suite overlays a transactional system to provide planning.

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


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

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

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

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

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

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

ideally. 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. TSURUBE SYSTEM: A way to keep product flow continuous even when there are interruptions such as outside processing or batch operations. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 94 OF 107 . The tsurube system is often used when product leaves the flow line for processing through THE LEAN. Zero.TPM: See Total Productive Maintenance.

2) It must be done right the first time. Each bin contains enough parts to last during the delivery that can not be placed into the cell (vendor operations. V VALUE-ADDED WORK: Work that the customer is willing to pay for. etc. See Well Wheel System. See Shigoto. it is time to reorder the two-bin quantity. A transformation of the shape or function of the material/information in a way that the customer will pay for. TSURUBEHOUSHIKI: Pickup and Supply System (a shuttle delivery system that picks up empty containers and delivers materials or parts in the same run . TWO-BIN SYSTEM: An example of both visual management and the pull system. Used to reduce hoarding during periods of limited availability. whereby two bins or containers are used trigger reorder of parts or materials.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. 3) The action must somehow change the product or service in some manner. heat treat. THE LEAN. plating. 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. anodizing. When one bin is empty. 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. 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). AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 95 OF 107 .). See Internal Setup.

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

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

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

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. Gemba Research GembaTM has been a firm focused on delivering knowledge and results through kaizen since the work group Comprehensive resource on Lean. Most standard work processes are place and process specific whereas a solution to a technical problem is not. www. Sharing of standard procedures across an organization is the ideal. Following the break-up of the zaibatsu. Technology is often specific to a manufacturing process. Lean Enterprise Institute Lean consulting firm website with good collection of articles.html Lean Manufacturing Consulting and Training firm’s website with good articles. Gemba Panta Rei www. Lean Enterprise Academy UK THE LEAN. The site contains good training materials and articles. very much as the chaebol of South Korea have driven that country's growth over the last 25 years.htm Lean training consultancy with good information on their iSixSigma AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 99 OF 107 . Lean Six Sigma and Lean Manufacturing Lean Advisers 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. Lean Portal http://membres. www. YOOIDON HOUSHIKI: Simultaneous-start Time Study.gemba. APPENDIX A: LEAN RESOURCES ON THE WEB Advanced Manufacturing www. looser alliances called keiretsu emerged in which close trading relationships were cemented by crossshareholdings within the group.lycos.nwlean.emsstrategies. Northwest Lean Networks A weblog about better ways to make things better.htm Valuable collection of training materials on Lean and related topics.htm Good collection of article in html and pdf formats from Advanced Manufacturing Magazine EMS Consulting Group Inc.leanadvisers.

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

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. Stephen H. 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.APPENDIX B: SUGGESTED READING Lean Thinking: Banish Waste and Create Wealth in Your Corporation by James Womack and Daniel T. Jorge L. Martin THE LEAN. 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. Larco. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 101 OF 107 . 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. Schonberger The World Class Manufacturing: The Lessons of Simplicity Applied by Richard J. Schonberger Learning to See Version 1. Henderson.

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

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 THE LEAN.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. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 103 OF 107 .

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

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

Effective Corporate Action With Hoshin Planning by Michael Cowley. 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. 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 THE LEAN.All I Need to Know About Manufacturing I Learned in Joe's Garage: World Class Manufacturing Made Simple by William B. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 106 OF 107 .

and Technology James Morgan and Jeff Liker 2007 Shingo Research Prize Recipient Hoshin Kanri for the Lean Enterprise: Developing Competitive Capabilities and Managing Profit by Thomas Jackson 2007 Shingo Research Prize Recipient The TWI Workbook: Essential Skills for Supervisors Patrick Graupp and Robert Wrona 2007 Shingo Research Prize Recipient Lean Production Simplified: A Plain-Language Guide to the World's Most Powerful Production System by Pascal Dennis and John Shook THE LEAN.The Idea Generator . 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.Practical Lean Techniques for Building to Demand by Kevin J. AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 107 OF 107 . Process.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 .

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