Definition of Lean Terms

3 Distinct Views of Lean: (Definition below)

1. Structural Change: One of the key principles of Lean is the 5S workplace.

2. Process Implementation: Lean seeks out wastes inhabiting the process we use to complete our tasks, manufacture our products, or provide our services.

3. Philosophical Mindset: The goal of any lean enterprise is to foster creativity and total employee involvement, on principles of employee empowerment.

5 Why's: A simple but effective method of analyzing and solving problems by asking ‘why?’ five times to find the root cause of a problem.

5S: (Definition below) Note: Efforts in 5S almost always improve workplace safety, operator morale, quality, and productivity. It can also be very impressive to visiting customers and prospective clients. Click HERE to view Lean 5S action poster.

1. Sort

2. Straighten

3. Sweep

4. Standardize

5. Sustain

 

6 Sigma: A scientific/data-driven approach for achieving 6 standard deviations between the mean and nearest specifications limit. Six Sigma methods can be applied to all aspects of manufacturing, transactional processes, and virtually any form of work or processing. Six Sigma basically, defines quality in degrees of sigma with six being the highest and defined as no more than 3.4 defects per one million opportunities.

7 Wastes: The 7 wastes are activities identified and categorized as non-value adding events or processes that limit profitability in a company. The 7 Wastes is also known as the 7 Deadly Wastes of Manufacturing or the 7 Sins of Manufacturing. The 7 Wastes are as follows:

1. Defects: Anything the customer doesn’t want.

2. Overproduction: To produce an item before it is actually required.

3. Transportation: Transporting product between process is a cost incursion that adds no value to the product.

4. Waiting: Whenever goods or services are not moving or being processed, the waste of waiting occurs.

5. Inventory: Excessive, unneeded, inventory increases lead times, consumes productive floor or warehouse space, delays the identification of problem areas, and inhibits communication.

6. Motion: This waste is related to ergonomics and is seen in all instances of bending, stretching, walking, lifting, and reaching.

7. Processing: Often termed as “using a sledgehammer to crack a nut,” many companies use expensive, often time-consuming, and laborious process where simpler tools or methods would serve the same purpose.

Activity Based Costing (ABC): A management costing system that assigns cost to products based on the resources used to perform a process.

FISH: The lean Fish Method is a basic model to assist Lean leaders in implementing, monitoring, maintaining, and promoting continuous improvements efforts in the organization.

· F – Focus

· I – Improve

· S – Sustain

· H – Honor

Kaizen: Is a Japanese term translated to mean continuous improvement. Kaizen can be described as the activities engaged in to foster continuous improvement and as the mentality needed to continually drive the Lean program.

 

RACI Chart: Responsibility charting is a technique often used in process improvement projects for indentifying functional areas, key activities, decision points where ambiguities may exist; differences can be brought into the open and resolved through team effort. The acronym stands for:

· R – Responsible

· A – Accountable

· C – Consult

· I – Inform

 

Value Stream: A value stream is a series of all actions required to fulfill a customer's request, both value added and not.

 

Value Stream Mapping: Value stream mapping is a paper and pencil tool that helps you to see and understand the low of material and information as a product or service makes its way through the value stream.

Work In Process (WIP): Materials that are in various stages of the completion process.