Lean vocabulary: the dictionary for your organization's performance

Master the meaning of lean terms and concepts. Get clear definitions that turn the language of management into practical results in your day-to-day work.

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A

1 term

A-B Control

A way of regulating the working relationship between two machines or operators that controls overproduction and ensures the balanced use of resources.

See : Inventory, Overproduction.

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B

1 term

Batch and Queue

A mass-production approach to operations in which large lots of parts are processed and moved to the next process, regardless of actual need, where they wait in a queue. See : Continuous Flow, Lean Production, Overproduction, Push Production.

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C

2 terms

Changeover

The process of switching production from one product to another on a machine (for example, a press or an injection molding machine) or on a series of linked machines (an assembly line or cell) by changing parts, dies, fixtures, molds, etc. (Also known as setup.) Changeover time is measured as the time elapsed between the last part of the run just completed and the first good part after the changeover.

See : Single-Minute Exchange of Die - SMED.

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Continuous Flow

Producing and moving one item at a time (or a small batch of items) through a series of processing steps as continuously as possible, with each step making just what is requested by the next step.

See : One-Piece Flow, Batch and Queue, Flow Production.

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D

1 term

Demand Amplification

A tendency observed in multi-step processes, in which the production orders received by each upstream process are more erratic than the actual production or sales of the downstream steps. Also known as the Forrester Effect (after Jay Forrester of MIT, who first characterized this phenomenon mathematically in the 1950s) and the Bullwhip Effect.

See: Build to Order, Heijunka, Level Selling.

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E

1 term

Every Part Every Interval

The frequency with which each part is produced in a production process.

See: Heijunka.

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F

2 terms

First In, First Out (FIFO)

The principle and practice of maintaining precision in the sequence of production and material movement, ensuring that the first part to enter a process or storage location is also the first part to exit. This ensures that stored parts do not become obsolete and that quality problems are not hidden in inventory. FIFO is a necessary condition for implementing a pull system.

See: Kanban, Pull Production

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Flow Production

A production system introduced by Henry Ford at the Highland Park plant in Michigan in 1913. The aim of flow production was to drastically reduce product throughput time and human effort through a series of innovations. See : Continuous Flow.
Compare with : Mass Production.

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H

2 terms

Heijunka

Leveling the type and quantity of production over a fixed period of time. This enables production to efficiently meet customer demands while avoiding excess inventory and reducing costs, labor, and production lead time throughout the value stream.

See : Demand Amplification, Every Part Every Interval (EPEx), Just-in-Time (JIT), Muda, Mura, Muri, Single-Minute Exchange of Die - SMED.

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Heijunka Box

A tool used to level the mix and volume of production by distributing kanban at fixed intervals. Also known as a leveling box.

See: Every Part Every Interval (EPEx), Heijunka, Kanban, Material Handling, Paced Withdrawal, Pitch.

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I

2 terms

Inventory

Materials (and information) present along a value stream between processing steps.

Physical inventory is usually categorized by its position in the value stream and by its purpose. Raw materials, work-in-process and finished goods are terms used to describe the position of inventory in the production process. Buffer stock, safety stock and shipping stock are terms used to describe the purpose of inventory.

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Inventory Turns

A measure of how quickly materials are moving through a plant or through an entire value stream, calculated by dividing a given cost measure by the amount of inventory on hand.

See : Inventory.

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J

1 term

Just-in-Time (JIT) Production

A production system that makes and delivers only what is needed, when it is needed, and in the amount needed. JIT and Jidoka are the two pillars of the Toyota Production System. JIT relies on heijunka and is made up of three operating elements: the pull system, takt time, and continuous flow.

See : Continuous Flow, Heijunka, Jidoka, Pull Production, Takt Time, Toyota Production System.

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K

1 term

Kanban

A kanban is a signaling device that authorizes and gives instructions for the production or withdrawal of items in a pull system. The term means "signals" or "signal board" in Japanese. See : Heijunka, Heijunka Box, Just-in-Time (JIT) Production, Pull Production, Supermarket.

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L

4 terms

Lean Logistics

Lean logistics focuses on logistics activities and their connections, using the pull system and continuous flow to put the lean supply chain into practice. See : Cross-docking, heijunka, supply chain

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Lean Production/Lean Manufacturing

A business system for organizing and managing product development, operations, suppliers, and customer relations. Compared with mass production, lean production requires less human effort, less space, less capital, and less time to make products with fewer defects to precise customer desires. See : Toyota Production System.
Compare with : Mass Production.

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Level Production

See: Heijunka.

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Level Selling

An attitude toward customers which assumes that demand for many products is relatively stable but is often disrupted by the production and sales systems themselves.

See : Demand Amplification, Heijunka, Make-to-Order.

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M

4 terms

Make-to-Order Production

A situation in which the production lead time and the order lead time are shorter than the time the customer is willing to wait for the product, so the manufacturer builds to confirmed orders rather than to a forecast.

See: Demand Amplification, Heijunka, Level Selling.

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Mass Production

A business system developed in the early 20th century to organize and manage product development, production operations, purchasing, and customer relations. See : Batch and Queue.
Compare with : Lean Production.

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Milk Run

A method for speeding the flow of materials between plants, in which vehicles follow a route to make multiple pickups and deliveries at many plants. See : Lean Logistics, Material Handling.

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Mura

Unevenness in an operation, such as ups and downs in the schedule caused not by end-customer demand but by the production system, or an uneven work pace in an operation, causing operators to hurry and then wait.

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O

3 terms

Ohno, Taiichi (1912-1990)

Toyota executive considered the chief architect of the Toyota Production System (TPS) and author of several important books on TPS.

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One-Piece Flow

Making and moving one piece at a time. See : Continuous Flow, Every Product Every Interval (EPEx), Single-Minute Exchange of Die - SMED.

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Overproduction

Producing more, sooner, or faster than is required by the next process. Ohno considered overproduction the most serious form of waste because it generates and hides other wastes, such as inventory, defects, and excess transportation.

See: Batch and Queue, Ohno, Seven Wastes.

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P

9 terms

Paced Withdrawal

The practice of releasing production orders to work areas and withdrawing finished goods from those areas at a fixed, frequent pace. This practice can be used as a way to link material flows to information flows.

See: Every Product Every Interval, Heijunka Box, Milk Run, Pull Production.

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Pacemaker Process

Any process in a value stream that sets the pace for the entire stream. (The pacemaker process should not be confused with a bottleneck process, which necessarily constrains downstream processes due to a lack of capacity.)

See: First In, First Out.

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Pack-Out Quantity

The number of items a customer (whether internal or external) wants packed and stored in a container for transport and shipping. Note that a pallet of a product may consist of numerous containers.

See : Pitch.

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Pitch

The amount of time needed in a production area to make one container of products. The formula for pitch is:

Takt time x pack-out quantity = pitch See : Heijunka Box, Paced Withdrawal, Pack-Out Quantity, Takt Time.

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Plan for Every Part

A detailed plan for each part used in a production process, showing every detail relevant to managing the process without errors or waste. It is a fundamental tool of the Toyota Production System.

See: Material Handling, Pack-Out Quantity.

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Production Control

The task of controlling and setting a pace for production so that products flow smoothly and quickly to meet customer requirements.

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Production Smoothing

See: Heijunka.

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Pull Production

A production control method in which downstream activities signal their needs to upstream activities. Pull production strives to eliminate overproduction and is one of the three major components of a complete Just-in-Time production system. See : Just-in-Time (JIT), Overproduction.
Compare with : Push Production.

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Push Production

Processing large batches of products at maximum speed, based on forecast demand, and moving them to the next downstream process or into storage, regardless of the actual pace of work in the next process. Batch and Queue, Production Control.

See : Batch and Queue, Production Control.
Compare with : Pull Production.

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R

1 term

Replenishment System

A pull production system in which upstream (supplier) processes produce only enough to replace or replenish the product withdrawn by downstream (customer) processes.

See: Kanban, Pull Production, Supermarket.

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S

2 terms

Standard Inventory

The amount of inventory needed before each processing step so that it flows smoothly. See: Inventory .

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Supply Chain

Lean Supply Chain is the right material, in the right quantity, at the right place, at the right time, with the right quality and in the correct packaging, without waste, focusing on problem solving and prevention through people, with a view to achieving high performance. See : Lean logistics

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T

2 terms

Toyoda, Kiichiro (1894-1952)

The son of Sakichi Toyoda, founder of the Toyota group, he led the company's effort to enter the automotive industry in the 1930s. Kiichiro believed it was possible to sustain the entire production process with just the needed stock of products if the preceding process simply responded to the exact needs of the next downstream process. He called this system Just-in-Time, which became one of the two pillars of the Toyota Production System.

See : Toyoda, Sakichi; Toyota Production System.

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Toyota Production System (TPS)

A production system developed by Toyota Motor Corporation to provide the best quality, the lowest cost and the shortest lead time through the elimination of waste. TPS is built on two pillars, Just-in-Time and Jidoka, and is usually illustrated by the "house" shown below. TPS is maintained and improved through iterations of standardized work and kaizen, following PDCA, or the scientific method.

See : Jidoka; Just-in-Time Production; Lean Production; Ohno, Taiichi.

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V

1 term

Value Stream Mapping

A simple diagram of every step involved in the material and information flows needed to serve customers, from order to delivery. See : Information Flow, Material Flow.

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