Lean Terminology

Kaizen

Literally “change good” – used to describe a process improvement approach but more often an improvement “even” such as a workshop to solve a specific issue.

Poke yoke

Fail safe – design of a process such that you can’t move on without it being correct.

Value chain mapping

Process map showing the steps that add value for the customer.

JIT

Just in Time – receiving work at the precise moment that it can be worked on without delay

TPM

Literally Total Productive Maintenance – in practice it is ensuring that every piece of equipment is always available for use without breakdown through regular servicing and prediction of failure.

Kanban

Literally a card or signal – in practice an automated order that triggers the delivery of the next item to work on.

The seven wastes identify and classify resources which are commonly wasted.

Defects

Quality defects prevent the customers from accepting the product produced. The effort to create these defects is wasted.

Overproduction

The production or acquisition of items before they are actually required. It is the most dangerous waste of the organisation, because it hides the production problems. Overproduction must be stored, managed and protected.

Transportation

Each time a product (a form, paper etc)  is moved it stands the risk of being damaged, lost, delayed, etc. as well as being a cost for no added value. Transportation does not make any transformation to the product that the customer is disposed to pay for.

Waiting

Refers to both the time spent by staff waiting for resources to arrive, the queue for their products to empty as well as the capital sunk in goods and services that are not yet delivered to the customer. It is often the case that there are processes to manage this waiting.

Inventory

Be it in the form of Raw Materials, Work-In-Progress (WIP), or Finished Goods, represents a capital outlay that has not yet produced an income either by the producer or for the consumer. Any of these three items not being actively processed to add value is waste.

Motion

As compared to Transportation, Motion refers to the producer or worker or equipment rather than the product or service being worked on.

Overprocessing

Using a more expensive or otherwise valuable resource than is needed for the task or adding features that are designed in but unneeded by the customer. There is a particular problem with this item as regarding people. People may need to perform tasks that they are over qualified for so as to maintain their competency. This training cost can be used to offset the waste associated with over processing.

The five S's are:

Separating

Refers to the practice of going through all the equipment, materials, etc., in the work area and keeping only essential items. Everything else is stored or discarded. This leads to fewer hazards and less clutter to interfere with productive work.

Sorting

Focuses on the need for an orderly workplace. "Orderly" in this sense means arranging the tools and equipment in an order that promotes work flow. Tools and equipment should be kept where they will be used, and the process should be ordered in a manner that eliminates extra motion.

Cleaning (Scrubbing!)

Indicates the need to keep the workplace clean as well as neat. At the end of each day, the work area is cleaned up and everything is restored to its place. The key point is that maintaining cleanliness should be part of the daily work - not an occasional activity initiated when things get too messy.

Standardising

This refers to standardised work practices. This means operating in a consistent and standardised fashion. Everyone knows exactly what his or her responsibilities are.

Sustaining

Refers to maintaining standards. Once the previous 4S's have been established they become the new way to operate. Maintain the focus on this new way of operating, and do not allow a gradual decline back to the old ways of operating.