Activity Based Costing, ABC An accounting system that assigns costs to a product based on the amount of resources used

d to design, order or make it. Andon Board - A visual control device in a production area, typically a lighted overhead display, giving the current status of the production system and alerting team members to emerging problems. (Andon is a Japanese word for light) Autonomation A form of automation in which machinery automatically inspects each item
after producing it, ceases production and notifies a human if an error is detected. Toyota expanded the meaning of jidohka to include the responsibility of all workers to function similarly that is to check every item produced and, if a defect is detected, make no more until the cause of the defect has been identified and corrected.

Balancing the line The process of evenly distributing both the quantity and variety of work
across available work time

Batch-and Queue Producing more than one piece or a small lot of parts/information and then moving to the next process before they are needed. Contrast with Single-piece Flow. Bottleneck Any resource whose capacity is equal to or less than the demand placed on it. Breakthrough Event See Kaizen Event Blitz Event See Kaizen Event Cells - The layout of machines of different types performing different operations in a tight sequence, cells can be any shape of the alphabet however most typical is a U, they allow small lot flow and flexible deployment of human effort by means of multi-machine working. Contrast with Process Villages. Change agent An individual from in or outside the organization who facilitate change but not
necessarily the initiator of the change

Changeover A process in which a production device is assigned to perform a different operation or a machine is set up to make a different part. Changeover time is calculated as last good piece to first good piece after the necessary changes. Constraint Anything that limits a system from achieving throughput or flow. Continuous flow A concept where parts or information are processed and moved directly from one process to the next with out piling up parts/ information between steps. Cycle Time - The time required to complete one cycle of an operation. Error Proofing a process used to prevent errors from occurring or to immediately point out a
defect as it occurs.

External Setup An activity that can take place while the machine is still running or information
being processed.

*Information was taken from Quality Progress, June 2005 issue to create this summary.

First Pass Yield (FPY) Also known as quality rate, the percentage of units that complete a process and meet quality guidelines without being scrapped, rerun, retested, returned or diverted offline to a repair areas. The calculation is the units entering the process minus the defective units divided by the total number of units entering the process. Five (5) S's - Five terms beginning with S utilized to create a workplace suited for visual control
and lean production. Seri means to Sort needed tools, parts, and instructions from unneeded materials and to remove the latter. Seiton means to neatly arrange (straighten) and identify parts and tools for ease of use. Seiso means to conduct a cleanup (shine) campaign. Seiketsu means to conduct Seri, Seiton, and Seiso at frequent intervals (standardize) to maintain a workplace in perfect condition. Shitsuke means to form the habit (sustain) of always following the first four S's.

Five Why's - A practice of asking "why" five times whenever a problem is encountered, in order
to identify the root cause of the problem so that effective countermeasures could be developed and implemented.

Flow- The progressive achievement of tasks along the Value Stream so that a product proceeds from design to launch, order to delivery, and raw materials into the hands of the customer with no stoppages or scrap. Heijunka - A Japanese term meaning level loading. It is a method to level production usually closest to the customer that enables just in time production. It involves averaging both the volume and sequence of different model types on a mixed model production line. Information Flow The task of taking information from the point of order entry to the point of delivery. This is shown on the top half of a value stream map. Internal Setup Steps that must be done while a process is stopped Jidohka-stopping a line automatically when a defective part is detected. Any necessary improvements can then be made by directing attention to the stopped equipment and the worked who stopped the operation. Just-In-Time - A system for producing and delivering the right items at the right time in the right amounts. Just-In-Time approaches Just-On-Time when upstream activities occur minutes or seconds before downstream activities, so single-piece flow is possible. The key elements of JustIn-Time are Flow, Pull , Standard work , and Takt time. Kaizen - Continuous, incremental improvement of an activity to create more Value and less
waste.

Kanban Japanese term for signal. Typically in the form of a card or tote. It helps regulate Pull
in the production system by signaling upstream production and delivery.

Kitting a process in which the worker is supplied with a box or contained grouping of all the
parts and tools they need for a specific task. This eliminates the motion to get materials.

Lead Time - The total time a customer must wait to receive a product after placing an order. Monument Any design, scheduling, or production technology with scale requirements requiring designs, orders and products to be brought to the machine and wait for processing. The opposite of a right sized machine.

*Information was taken from Quality Progress, June 2005 issue to create this summary.

Muda - Any activity that consumes resources but creates no Value. Also known as Waste. MRP A computerized system typically used to determine the quantity and timing requirements for production and delivery of items to both customers and suppliers. Many times the use of MRP can result in a push system based on the predetermined schedule which is an estimate of what is actually needed. Non-value added Activities or actions taken that add no real value to a product or service,
making such activities or actions a form of waste.

Overall Equipment Effectiveness (OEE) The product of a machines operational availability, performance efficiency and first pass yield.

3P- The production preparation process is a tool used for designing lean manufacturing
environments. It is a highly disciplined, standardized model that results in the developments of an improved production process in which low waste levels are achieved at low capital cost.

PDCA Plan, DO, Check, Act process for continuous improvement. Point of Use A technique that ensures people have exactly what they need to do their jobsthe right work instructions, parts, tools and equipment where and when they need them. Poka yoke Japanese term that means mistake proofing. A poka yoke device is one that
prevents incorrect parts from being made or assembled or easily identifies a flaw or error.

Policy deployment The selection of goals and projects to achieve the goals, designation of people and resources for project completion and establish project metrics in a format that can be cascaded to all levels of the organization. Production reporting board A board at the area of work which usually tracks hourly
performance. Details around problems or abnormal conditions are recorded and management checks the board hourly to assist in preventing recurrence of the abnormalities. They also to monitor that any changes made during PDCA are having positive results.

Production smoothing Keeping total manufacturing volume as constant as possible. See

Productivity A measurement of output for a given amount of input. Product Family - A range of related products that can be produced interchangeably in a production cell. The term is often analogous to "Platforms". Pull system- A system of cascading production and delivery instructions from downstream to upstream activities in which nothing is produced by the upstream supplier until the downstream customer signals a need. The opposite of Push. This becomes an alternative to scheduling. Queue time The time a product spends in a line awaiting the next design, order processing or
process step.

Quick Changeover see SMED

*Information was taken from Quality Progress, June 2005 issue to create this summary.

Right sized A process to challenge the complexity of equipment by examining how equipment
fits into an overall vision for workflow through the factory.

Seven wastes- see Waste Shadow board A visual management tool painted to indicate what tool belongs where and
what tools are missing.

Simulation A 3-D technique used to balance a line. It involves usually using inexpensive
materials such as wood or cardboard to create full sized equipment mock ups that can be easily moved around to obtain an optimum layout.

Single Minute Exchange of Dies (SMED) - A series of techniques for changeovers of production equipment in less than 10 minutes. Some of the techniques include externalizing as many tasks as possible. The ultimate goal is zero minutes and happen instantaneous. Single-piece Flow - A situation in which products proceed, one complete product at a time,
through various operations in design, order-taking, and production, without interruptions, or scrap. Contrast with Batch-and Queue.

Spaghetti-Chart - A map of the path taken by a specific product/ person/ material as it travels
down the value stream, so-called because the product's route typically looks like a plate of spaghetti.

Standard Work - A precise description of each work activity specifying cycle time, takt time, the work sequence of specific tasks, and the minimum inventory of parts or materials on hand needed to conduct the activity. Supermarket The storage locations of parts before they go on to the next operation. Supermarkets are managed by predetermined maximum and minimum inventory levels. Each item in the plant is at a designated location based on a plant address system. TAKT time TAKT is a German word meaning frequency and is defined as the available
production time divided by the rate of customer demand. (Example - Customer demand is 240 units per day and the factory operates 480 minutes per day, Takt time is two minutes; If the customer wants two new products designed per month, Takt time is two weeks). Takt time sets the pace of production to match the rate of customer demand and becomes the heartbeat of a lean system.

Theory of Constraints A management philosophy that stresses removal of constraints to

Total Productive Maintenance (TPM) - A series of methods to ensure that every piece of
equipment in a production process is always able to perform its required tasks so that production is never interrupted. The method involves both manufacturing and maintenance working together.

Value added Activities that transform input into a customer usable output. The customer can be internal or external to the organization. Value Stream - The specific activities required to design, order, and provide a specific product,

*Information was taken from Quality Progress, June 2005 issue to create this summary.

from concept to launch, order to delivery, and raw materials into the hands of the customer.

Value Stream Mapping - Identification of all the specific activities occurring along a value stream for a product or product family usually done with paper and pencil. The second step is to create a future state map. Value Stream Loops segments of a value stream with boundaries broken into loops as a way to divide future state implementation into manageable pieces. Value Stream Manager- The person responsible for creating a future state map and leading door to door implementation of the future state for a particular product family. Visual Control - The placement of all tools, parts, materials, production activities, and
indicators of production system performance, so the status of the system can be understood at a glance by everyone involved in the process or auditors of the process.

Waste (7 Forms of Waste) Defects (example rework), Overproduction (making more than what is needed for the next process), Transportation (material movement), Waiting (this can be for material, equipment that is down or other people such as maintenance), Inventory (the result of overproduction), Motion (unnecessary operator movement), Processing

*Information was taken from Quality Progress, June 2005 issue to create this summary.