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Guidon Performance Solutions Blog: The Ascent

o Undercover Boss Waste Management Uncovers Waste

o Ron Wince on the Key to Improving Healthcare

o Using Lean Six Sigma for Fast Track SG&A Reductions

o Culture Trumps Reorganization Every Timeo Begin the Ascent

o Leadership Lessons from the Past

o Lean Six Sigma Can Help Agencies Manage Stimulus Funds

o Top 5 Leadership Characteristics for Process Improvement Success

o Stop Second Guessing About the Stimulus Package

o One Size Does Not Fit All With Lean Six Sigma

o Preparing to Manage the Stimulus

o Stimulus Is No Place For Pork!

o Government Efficiency: CPR for Our New CPO

o Carpe Diem

o Cash for Clunkers" Doesnt Have to Be a Lemono Stimulus Spending Needs Jidoka The Proof Is In the Pork

o Healthcare Embraces Lean Principles

o The WIIFM Factor with Lean Six Sigma
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blog/stimulus-is-no-place-for-porkhttp://www.guidonps.com/blog/government-efficiency-cpr-for-our-new-cpohttp://www.guidonps.com/blog/carpe-diemhttp://www.guidonps.com/blog/cash-for-clunkers-doesnt-have-to-be-a-lemonhttp://www.guidonps.com/blog/stimulus-spending-needs-jidoka-the-proof-is-in-the-porkhttp://www.guidonps.com/blog/healthcare-embraces-lean-principleshttp://www.guidonps.com/blog/the-2018wiifm2019-factor-with-lean-six-sigma


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Business Process Management Glossary

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3P

The production preparation process is a tool used for designing lean environments. It is a

highly disciplined, standardized model that results in the development of an improved

production process in which low waste levels are achieved at low capital cost.

5S

5S Workplace Organization Building Blocks for shop floor discipline and control;Used to create a workplace suited for visual control and lean processing.

Sort Segregate & Discard

Store Arrange & Identify

Shine Clean & Inspect Daily

Standardize Revisit Frequently

Sustain Motivate to Sustain
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A

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Affinity Diagram

A tool used to organize and present large amounts of data (ideas, issues, solutions,

problems) into logical categories based on user perceived relationships and conceptual

frame working.

Often used in form of "sticky notes" send up to front of room in brainstorming exercises,

and then grouped by facilitator and workers. Final diagram shows relationship between the

issue and the category. Then categories are ranked, and duplicate issues are combined tomake a simpler overview.

Andon

A visual device, usually a specialized light that operators use to call attention to an

abnormality. The use of this is to request immediate attention and action to the problem.

Andon Board

A production area visual control device, such as a lighted overhead display. Itcommunicates the status of the production system and alerts team members to emerging

problems (from andon, a Japanese word meaning light).

Automation

The use of machines working independently of manpower.

Autonomation

A form of automation in which machinery automatically inspects each item after producingit, ceases production and notifies humans if a defect is detected. Toyota expanded the

meaning of jidoka to include the responsibility of all workers to function similarlyto

check every item produced and, if a defect is detected, make no more until the cause of thedefect has been identified and corrected (see jidoka).

B

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Balanced Scorecard The balanced scorecard is a strategic management system used to

drive performance and accountability throughout the organization. The scorecard balances

traditional performance measures with more forward-looking indicators in four keydimensions:

Financial Integration/Operational Excellence

Employees Customers

The Balanced Scorecard is an organizational framework for implementing and managing

strategy at all levels of an enterprise by linking objectives, initiatives, and measures to anorganizations strategy. The scorecard provides an enterprise view of an organizations

overall performance. It integrates financial measures with other key performance indicators

around customer perspectives, internal business processes, and organizational growth,

learning, and innovation.

Batch and Queue

Producing more than one piece of an item and then moving those items forward to the next

operation before they are all actually needed there. Thus items need to wait in a queue.

Also called "Batch-and-Push." Contrast with continuous flow.

Bottleneck

Any resource whose capacity is equal to or less than the demand placed on it

Buffer and Safety Stock

Buffer Stock Stock made available between processes to meet takt time due to variations

in upstream or downstream cycle times

Safety Stock Goods made available to protect takt time while making process changes orimprovements. It is used to minimize impact to major internal failures.

Business Review

A periodic check on how the department, site, or line of business is performing. Review of

scorecard is part of the business review.

C

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Capacity
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Capacity is a function dependent on certain set of variables all working together: Resources

(R), Time (T), and Productivity (P). It is what processes volume.

Cause and Effect Diagram

A cause and effect diagram is a visual tool used to logically organize possible causes for aspecific problem or effect by graphically displaying them in increasing detail. It helps to

identify root causes and ensures common understanding of the causes. It is also called an

Ishikawa diagram.

Cause and Effect relationships govern everything that happens and as such are the path toeffective problem solving. By knowing the causes, we can find some that are within our

control and then change or modify them to meet our goals and objectives. By

understanding the nature of the cause and effect principle, we can build a diagram to helpus solve everyday problems every time.

Cell

An arrangement of people, machines, materials and equipment in which the processing

steps are placed right next to each other in sequential order and through which parts areprocessed in a continuous flow. The most common cell layout is a U shape.

Cellular Layout

An arrangement of people, machines, materials and methods such that processing steps are

adjacent and in sequential order so that parts can be processed one at a time (or in some

cases in a constant small batch that is maintained through the process sequence). The

purpose of a cell is to achieve and maintain efficient continuous flow.

Central Tendency

The numerical average (e.g. mean, median or mode) of a process distribution. Can also be

displayed as the centerline of a process control chart.

An indication of the location or centrality of the data. The most common measures ofcentral tendency are: mean (numerical average), median (the midpoint of an order data set

such that half of the data points are above and half are below it) and the mode (the value

that occurs most frequently)

Chaku-Chaku

A method of conducting single-piece flow in which the operator proceeds from machine to

machine (in a counter-clockwise fashion), talking a part from the previous operation and

loading it in the next machine. Then taking the part just removed from that machine,checking it and loading it into the following machineetc,


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Change Agent

An individual from within or outside an organization who facilitates change within the

organization; may or may not be the initiator of the change effort.

Concurrent Engineering

The reorganization of product design, development, production planning and procurement

processes to take place to the extent possible in parallel (more or less at the same time),

utilizing multi-disciplinary project teams, electronic information management, and

improved communications.

Input is gathered and assimilated from all concerned parties, including manufacturing,

sales, procurement, customers, and etc. from project conception throughout development.

Constraint

Anything that limits a system from achieving higher performance or throughput; also, the

bottleneck that most severely limits the organizations ability to achieve higherperformance relative to its purpose / goal.

Continuous Flow

Each process (in the office or plant setting) makes or completes only the one piece that the

next process needs, and the batch size is one - single-piece flow or one-piece flow opposite of batch-and-queue.

Critical Chain

Critical Chain," in the largest sense, is the set of processes and practices for project

management developed by the application of the Theory of Constraints Thinking Processesto the difficulties faced in delivering projects with both speed and reliability. The "body of

knowledge" associated with Critical Chain centers on Critical Chain Scheduling and Buffer

Management for individual projects, and synchronization of efforts across projects in

multi-project organizations. (Critical Chain is also the title of a book, by Eliyahu M.Goldratt, that introduces the basic concepts of the approach.)

CTQ

CTQs (Critical to Quality) are the key measurable characteristics of a product or process

whose performance standards or specification limits must be met in order to satisfy thecustomer. They align improvement or design efforts with customer requirements.

CTQs are what the customer expects of a product... the spoken needs of the customer. The

customer may often express this in plain English, but it is up to us to convert them to

measurable terms using tools such as DFMEA, etc.


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Cycle Time

The total time required for a task to be complete. Cycle time is process specific, and many

cycle times will exist within an overall lead time of making a product. Cycle time is therate of the process

Cycles of Use

A three-stage process that sustains the Guidon High Performance Culture. In the first stage,

employees use their departments Performance Management Board to maintain and analyze

current production data. In the second stage, the team holds regular meetings (PMRs) attheir production management board to identify potential process improvements. In the third

stage, employees resolve the problems or develop the opportunities they have identified in

their PMRs. They use their knowledge, experience, and process improvement tools andtechniques to make these improvements.

D

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Defects

One of the 7 types of Waste. Rework / repair a product or service to meet customers

requirements.

Deming

Dr. W. Edwards Deming is known as the father of the Japanese post-war industrial revivaland was regarded by many as the leading quality guru in the United States.

DMAIC

The DMAIC process is the heart of Six Sigma. DMAIC refers to a data-driven quality

strategy for improving processes, and is an integral part of the company's Six SigmaQuality Initiative. DMAIC is an acronym for five interconnected phases: Define, Measure,

Analyze, Improve, and Control.

Downtime

Lost production time during which a piece of equipment is not operating correctly due to

breakdown, maintenance, power failures or similar events

E


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Excess Material or Information

One of the 7 types of Waste. Any supply in excess of customer requirements necessary to

produce services.

Excess Motion

One of the 7 types of Waste. Any movement of people or equipment that does not add

value to the product or services.

Excess Transportation

One of the 7 types of Waste. Any information, material, or patient movement that does not

directly add value to a product or service.

F

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First in First Out (FIFO)

Material produced by one process is used in the same order by the next process. A FIFO

queue is filled by the supplying process and emptied by the customer process; when a FIFOlane gets full, production is stopped until the next (internal) customer has used some of that

inventory.

First Pass Yield (FPY)

Also referred to as the quality rate, the percentage of units that complete a process andmeet quality guidelines without being scrapped, rerun, retested, returned or diverted into an

offline repair area. FPY is calculated by dividing the units entering the process minus the

defective units by the total number of units entering the process.

Fishbone Diagram

A problem-solving tool that uses a graphic description of the various process elements to

analyze potential sources of variation, or problems. The Diagram itself resembles(somewhat) the skeleton of a fish. Also called the Cause & Effect diagram and Ishikawa

diagram.

Five Whys

The Five Why's typically refers to the practice of asking, five times, why the failure has

occurred in order to get to the root cause/causes of the problem. There can be more than


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one cause to a problem as well. In an organizational context, generally root cause analysis

is carried out by a team of persons related to the problem. No special technique is required.

Flow

The main purpose of flow is to quickly and continuously identify and eliminate waste. Theprogressive achievement of tasks along the value stream so a product proceeds from design

to launch, order to

Delivery and raw to finished materials in the hands of the customer with no stoppages,

scrap or backflows.

FMEA

Failure Modes and Effects Analysis (FMEA)

A systematic/structured approach for determining the seriousness of potential failures andfor identifying the sources of each potential failure.

The goal of FMEA is to identify potential failures and implement corrective actions toprevent failures from occurring. "PFMEA" focuses on identifying and remediating process

failures.

Focus

See GuidonFocus

Force Field Analysis

Identifies force and factors, both restraining and driving, effect the solution of an issue orproblem so that the positives can be reinforced and/or negatives reduced or eliminated.

Functional Layout

The practice of grouping machines or activities by type of operation performed.

G

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Gemba

A Japanese term that means "Real Place" or "Where the action takes place." In Lean we

speak of GEMBA as being the place where "Value" is added to a product. See "ValueAdding"


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Guidon

The guidon dates back to the days of hand to hand combat when, in the heat of battle,

military leaders used a guidon, or flag, to communicate the direction of movement fortroops. Today business leaders leverage Guidon Performance Solutions and our proprietary

approach to developing strategy, creating alignment and improving performance to movetheir organizations forward toward a common and shared vision.

GuidonFocus

FOCUS is a time-sensitive, rapid-deployment approach that employs a collaborative, team-based methodology for executing problem solving and continuous improvement.

GuidonHPC

Guidon High Performance Culture links strategy and execution with a constant and

intensive focus on the customer using universally applied terminology, leadership practicesand tools. It is designed to provide consistent and repeatable results with a clear sense of

urgency.

GuidonHPC engages each level of an organization with energy, edge and the ability to

energize others.

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Hawthorn Effect

Improved process data that results from process operators who know their processperformance is being measured and exercise more care in the execution of the process than

would normally be done.

Heijunka (Leveling)

The process of level loading and sequencing the timing of customer demand for products or

services. A method of leveling production, usually at the final assembly line, that makesjust-in-time production possible. It involves averaging both the volume and sequence of

different model types on a mixed model production line.

Using this method avoids excessive batching of different types of product and volumefluctuations in the same product (see production smoothing).


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Histogram

A bar graph of a frequency distribution in which the widths of the bars are proportional to

the classes into which the variable has been divided and the heights of the bars areproportional to the class frequencies.

A histogram is a basic graphing tool that displays the relative frequency or occurrence of

continuous data values showing which values occur most and least frequently. A histogram

illustrates the shape, centering, and spread of data distribution and indicates whether thereare any outliers.

A graphic way to summarize data. Size is shown on the horizontal axis (in cells) and the

frequency of each size is shown on the vertical axis as a bar graph. The length of the bars is

proportional to the relative frequencies of the data falling into each cell and the width is therange of the cell. Data is variable measurements from a process.

Hoshin kanri

The selection of goals, projects to achieve the goals, designation of people and resources

for project completion and establishment of project metrics (see policy deployment).

Hoshin planning

Breakthrough planning; a Japanese strategic planning process in which a companydevelops up to four vision statements that indicate where the company should be in the

next five years.

Company goals and work plans are developed based on the vision statements. Periodicaudits are then conducted to monitor progress (see value stream).

HPC

See Guidon HPC

I

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Impact Difficulty Matrix

Prioritization method that looks looks at the impact (value to the organization) to

implement the change and how difficult it will be to implement. The intent is to have theteams focus on the High Impact / Low Difficulty items first when planning improvement

ideas.

Information Flow


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The task of disseminating information for taking a specific product from order entry

through detailed scheduling to delivery (see value stream).

Inventory

The money invested in purchasing things an organization intends to sell.

Inventory Turns

The number of times you can "Turn" (use and replace) your inventory/money over in a

year.

J

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JDI

Just do it a small scale process improvement that can be accomplished simply and

quickly by one or more persons.

Jidoka

Jidoka (Autonomation): One of the 3 main principles of Lean, it has 2 main elements: 1)

Stopping the process when an abnormality has been detected 2) Building human

intelligence into machines or software, giving automation the ability to make a decision toshut down automatically in the case of an abnormality in order to stop defective products

from flowing into the next process. Jidoka measures are incorporated in the assemblyprocess by use of Andons and Pin-Pan-Pon; stopping when abnormality is detected. Thejidoka system puts faith in the worker as a thinker and allows all workers the right to stop

the line on which they are working (see autonomation).

JIT

(Just in time): One of the 3 main principles of Lean, its the philosophy of production

characterized by 3 elements each must be present to ensure JIT functions properly. (1)Single piece flow, (2) producing according to TAKT time, (3) pulling of material from

upstream process. Producing or conveying only the items that are needed by the next

process when they are needed and in the quantity needed. Can even be used betweenfacilities or companies.

K


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Kaizen

Kaizen: A Japanese term meaning gradual unending improvement by doing little things

better and setting and achieving increasingly higher standards. Masaaki Imai made the termwell-known in his book Kaizen: The Key to Japans Competitive Success. Kaizen implies

more than improvement in basic production processes. Kaizen represents a philosophywhereby an organization, and the individuals within it, undertake continual improvements

of all aspects of organizational life. A hands-on process of short duration to develop

iterative solutions, with each iteration an improvement on the last.

Kanban

A signaling device that gives instruction for production or conveyance of items in a pull

system. A communication tool in the just-in-time production and inventory control system

that authorizes production or movement. Kanban, from a Japanese word for visible card orrecord, was developed by Taiichi Ohno at Toyota. It is a small card or signboard (or any

other authorizing device) attached to boxes of specific parts in the production line

signifying the delivery of a given quantity.

Kitting

Grouping component parts used in a process or build for ease of assembly. (see materialpresentation)

L

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Lead Time

The total Time a customer must wait to receive a product after placing an order. The total

time it takes the product to go from raw inventory to the finished product. Order toremittance lead time refers to the total time from when an order is placed until the finished

product is shipped.

Lean

Lean is simply a thought process, not a tool, used to look at your business whether it is

manufacturing, service or any other activity where you have a supplier and acustomer/receiver. The key thought processes within Lean are identifying 'waste' from the

customer perspective and then determining how to eliminate it. Waste is defined as the

activity or activities that a customer would not want to pay for and/or that add no value tothe product or service from the customer's perspective. Once waste has been identified in


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the Current State, a plan is formulated to reach the Future State in an effective manner that

encompasses the entire system.

LeanSigma Capacity

LeanSigma Capacity is a methodology developed for the Service Industry that determinesthe efficient allocation and scheduling of resources in a highly complex, highly variable

environment to maximize customer service, while containing costs

LeanSigma Information Technology

LeanSigma Information Technology leverages the power of Lean and Six Sigma ininformation technology processes and functions. From development and deployment of

new information technologies to ongoing reliability, maintenance and operations of IT

infrastructure, LeanSigma Information Technology improves ROIC, accelerates

implementation and improves performance.

LeanSigma Process

The LeanSigma toolset streamlines and simplifies complex business processes to rapidly

pull dramatic new efficiencies to the bottom line.

LeanSigma Process is specifically designed for service-based companies and has proven

to achieve benefits forty to sixty percent faster than traditional Six-Sigma or Reengineeringprojects, leveraging a broader tool-suite and the FOCUS Methodology.

Level 1

GuidonHPC term Front Line employees

Level 2

GuidonHPC term Middle Managers

Level 3

GuidonHPC term Senior Managers

LIFO

Last In First Out (L.I.F.O.) The opposite of "F.I.F.O." (First In First Out). With LIFO

earlier orders are delayed in favor of newer orders which results in increased lead-time and

unhappy customers regarding the earlier orders.

Line Balancing


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A process in which work elements are evenly distributed and staffing is balanced to meet

takt time (see takt time).

Littles Law

Any Lean journey strives to minimize waste and increase speed. Increasing speed equatesto reducing lead time to your customers. Minimizing waste includes an analysis of

inventory on-hand and steps to reduce that inventory. Little's Law provides an equation for

relating Lead Time, Work-in-Process (WIP) and Average Completion Rate (ACR) for anyprocess. Named after the mathematician who proved the theory, Little's Law states:

Lead Time = WIP (units) / ACR (units per time period)

Knowing any two variables in the equation allows the calculation of the third. Reducing

WIP while maintaining the same ACR reduces lead time. Similarly, improving the process

to increase ACR while maintaining the same WIP also reduces Lead Time. This applies to

any process - manufacturing, transactional, service or design. If it is difficult to relate WIPto a given process, try using TIP instead (Things-in-Process).

Example: A quoting department can complete 4 quotes per day (ACR), and there are 20quotes (TIP) in various stages in the department. Applying Little's Law:

Lead Time = TIP/ACR = 20 quotes/4 quotes/day = 5 days.

Therefore, without changing the process, inventory or priorities - or accounting for

variation - any new quote coming into the department could reasonably be expected to be

completed in 5 days.

Load-Load

A method of conducting single-piece flow in which the operator proceeds from machine to

machine, taking the part from one machine and loading it into the next. The lines allow

different parts of a production process to be completed by one operator, eliminating theneed to move around large batches of work in progress inventory.

M

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Material Presentation

Introducing material to the line or cell in a manner that is easy and effective for the

operator.

Measure


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A size or quantity found by measuring, e.g., 1 inch, 3 pounds, 6 complaints, 623 checks,

etc. By themselves, measures give us very limited information.

Metric

Two or more measures that are related in a meaningful way, e.g., miles per hour (speed),checks processed per hour (productivity), number of error free statements per month

(quality), etc.

MGSP

Multi Generational Strategic Plan imperatives for the business success that supportstrategic improvement needs typically around growth, margin, and infrastructure (people,

process, tech). Generally a 3 year horizon.

Mistake-Proofing

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

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. This is accomplished by making the

mixed model flow part perform as if it were a dedicated asset. Each product flows at therate of customer demand, even though mixed products are being made.

Monument

Any design, scheduling, or production technology with scale requirements requiring

designs, orders, and products to be brought to the machine to wait in line for processing.The opposite of a right sized machine.

Muda

Any type of waste elements that add no value to the product: i.e. Waiting, Transporting,

Over production, Excess Motion, Inventory Defects, Human Touches.

Multi-Functional Teams

Groups formed from people with varying skill-sets typically across departments to achievea business goal. Groups become "Teams" when they behave like teams. Using Multi

functional Teams can be of great benefit to most companies especially when they work

with complex issues that require expertise from numerous backgrounds.


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With many of our events we will create a team that includes operators form the area we are

working on, staff from "feeding" and "supplying" areas, a supervisor, a maintenance tech,

etc. Although Multi functional Teams generally refer to specific expertise and skill-sets,one should never overlook the benefits of having many pairs of "fresh eyes" on a problem

solving team.

Mura

The Japanese term for inconsistency

Muri

The Japanese term for strain

MWI

Most Wanted Improvement, a process change intended to reduce or eliminate a significantbusiness performance problem. Implementing an MWI should result in a measurable

improvement in one or more of the following areas: customer satisfaction, quality,productivity, and risk.

N

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Normal Distribution

Normal distribution is the spread of information (such as product performance ordemographics) where the most frequently occurring value is in the middle of the range andother probabilities tail off symmetrically in both directions. Normal distribution is

graphically categorized by a bell-shaped curve, also known as a Gaussian distribution. For

normally distributed data, the mean and median are very close and may be identical.

O

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Operating Plan

The Level 2 tool used in GuidonHPC to set goals. Operating Plans translate the PolicyDeployment into actual execution plans at all levels of the organization.

Overall Equipment Effectiveness (OEE)


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The product of a machines operational availability, performance efficiency and first-pass

yield.

Overproducing

One of the 7 types of Waste. Producing more then needed or producing faster than needed.

P

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Pacemaker Process

Using pull systems you will only need to schedule one point in the process flow. This point

is known as the pacemaker process. The control of this point will dictate the flow of the

whole process, if coupled with pull techniques. The pacemaker process is usually the most

downstream in the process. Using a pacemaker enables the flow to be controlled reliablyusing one simple point. This ensures that scheduling is made much simpler than trying to

co-ordinate many separate processes. It allows for local control rather than centralized

complex control which are often very slow to respond to the needs of the system.

Pareto Chart

A graphical tool for ranking causes of problems from most significant to least significant. It

is based on the Pareto principle, first defined by Juran, 1950. Pareto Charts suggest most

effects (or results), come from relatively few causes; that is, 80% of effects come from20% of the possible causes.

PDCA

PDCA (plan-do-check-act) at a macro level (for example, as in Hoshin kanri):

Plan. Senior management should use the visioning process in the context of its

business plan. The business plan is translated into action plans that are meaningfulto all levels of the organization.

Do. Implementation of action plans; answers what, how and who for the total

number of tiers in an organization, taking into account the fewer the number of

tiers, the better. This is the time to bring members of management together and

provide them with a basic understanding of the action plans. Check. On a periodic basis, review the measurements of the outputs, and note what

youve learned that can help in the future.

Act. Make the necessary adjustments to plans and priorities to ensure the success of

the strategy breakthroughs.

Performance Management Boards


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the tool at the heart of the continuous improvement process. The Performance Management

Board is a visual display of performance metrics that are developed and maintained by

front line employees. The metrics focus on six key areas: Customer Satisfaction, Quality,Productivity, Risk Management, Associate Satisfaction (Peoples Corner), and Making

Progress.

Performance Management Reviews

A business review conducted for a department or area that is held by the front-lineemployees using information on the Production Management Boards.

Pitch

Pitch: The pace and flow of a product. Pitch is the time elements to produce the pack

quantity for shipping. Pitch is the current best time for the lot size for material shipping. It

is the adjusted tack time to pull product throughout the value stream when the takt time is

too short.

Poka-Yoke

Mistake proof: usually refers to the use of fail-safe devices in the process in order to

prevent defects from occurring and insure quality. When this ingredient is added toautomation will yield autonomation. ( see Jidoka )

Policy Deployment

The selection of goals and projects to achieve the goals, designation of people and

resources for project completion and establishment of project metrics (see Hoshin kanri).

Process

A result driven, formula based, set of activities that produces an outcome. Alternate

Definition: A series of activities that collectively accomplish a distinct objective. A process

is a recipe for how something is done. Processes are also closely scrutinized for

improvement opportunities. Even making a peanut butter and jelly sandwich involvespassing through a process. If all of the ingredients for your sandwich are located in your

kitchen accept your jelly which is located in the Garage, then you would clearly have a

process improvement opportunity.

Process Quantity Analysis

A study of the quantities demanded of different products produced at a work location. This

picture of the volume and variety of products can be used to identify high impact areas to

concentrate efforts or identify the need to use process razing to make products moresimilar.


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Process Router Analysis

A study of the process and machine sequence for a group of similar parts. It can be used to

standardize product flow for ease of cell implementations.

Product Family

A group of products that go through the same or similar downstream or "assembly" steps

and equipment.

Production Smoothing

Keeping total manufacturing volume as constant as possible

Productivity

A measurement of output for a given input. The ratio of measured outputs over measuredinputs (i.e. - widgets produced per man-hour).

Pugh Matrix

Pugh Matrix

Refers to a matrix that helps determine which items or potential solutions are more

important or 'better' than others. It is necessarily to be done after you capture VOC andbefore design which means after product planning QFD.

It is a scoring matrix used for concept selection, in which options are assigned scoresrelative to criteria. The selection is made based on the consolidated scores. Before you start

your detailed design you must have many options so that you choose the best out of them.

This tool is also known as 'Criteria Based Matrix'

The Pugh matrix is a tool used to facilitate a disciplined, team-based process for concept

generation and selection. Several concepts are evaluated according to their strengths and

weaknesses against a reference concept called the datum (base concept). The datum is thebest current concept at each iteration of the matrix.

The Pugh matrix allows you to

1. Compare different concepts

2. Create strong alternative concepts from weaker concepts

3. Arrive at an optimum concept that may be a hybrid or variant of the best of otherconcepts


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The Pugh matrix encourages comparison of several different concepts against a base

concept, creating stronger concepts and eliminating weaker ones until an optimal concept

finally is reached. Also, the Pugh matrix is useful because it does not require a greatamount of quantitative data on the design concepts, which generally is not available at this

point in the process.

Pull System

System of manufacturing in which each process withdraws the parts it needs from thepreceding process when they need them, in the exact standardized amount needed. Used to

avoid push

Push

To produce or process an item without any real demand from the customer usually

creates inventory and all other 'wastes'.

Q

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Queue Time

The time a part sits waiting to be worked on.

Quick Changeover

Quick Changeover is a process that allows a person to reduce the time to changeover aproduction process from making one part or product to another part or product. The processto reduce the time elapsed from the last good part A to the first good part B at the same

station or process. Quick Changeover is also referred to as SMED or Single Minute

Exchange of Die. This quick changeover process must take less than ten minutes (hence

single minute).

R

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Resources
http://www.guidonps.com/glossary#top%23tophttp://www.guidonps.com/glossary#tophttp://www.guidonps.com/glossary#top%23tophttp://www.guidonps.com/glossary#top


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Resources are defined as anything needed to process volume, such as People, Machines, or

Work Stations. Limiting Resource is the maximum number of a resource that can be used

at one time.

Right Size

Matching tooling and equipment to the job and space requirements of lean production.

Right sizing is a process that challenges the complexity of equipment by examining how

equipment fits into an overall vision for workflow through the factory. When possible,right sizing favors smaller, dedicated machines rather than large, multipurpose batch

processing machines

Root Cause Analysis

Study of original reason for nonconformance with a process. When the root cause is

removed or corrected, the nonconformance will be eliminated

Routing Standardization

Lean tool used to improve flow in an organization. Its purpose is to reduce the number of

unique routings, simplify the individual parts or information routings, and aid the

development of standard work. A key component in the design of cells.

Runner

Also know as a Water Spider; A person on the production floor who paces the entire value

stream through the pickup and delivery of materials through kanban usage (see kanban).

S

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SCQ

Service, Cost, and Quality - major categories of metrics that are important to balance when

doing LeanSigma Capacity

Set-Up, External

Machine changeover steps that are performed while the machine is processing parts or off-

line from production time.

Set-Up, Internal

Machine changeover steps that are performed while the machine is stopped duringproduction time.


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Shine

Japanese term Seiso; Conduct a cleanup campaign

Shingijutsu

A company founded by C. Nakao and K. Iwata, former employees of Taiichi Ohno, thecreator of the Toyota Production System. The word Shingijutsu translates as new

technology or better way.

Single Piece Flow

Production system in which only one part at a time is processed or assembled and the work

is verified before being sent along the production line to follow processes. The 2 elementsof SPF are 1) a Do and 2) a Check or verification that the Do was done correctly.

This introduces a feedback loop into the system.

SIPOC

SIPOC stands for suppliers, inputs, process, output, and customers. You obtain inputs fromsuppliers, add value through your process, and provide an output that meets or exceeds

your customer's requirements.

Supplier-Input-Process-Output-Customer: Method that helps you not to forget something

when mapping processes.

Six Sigma

A methodology that provides organizations tools to improve the capability of their business

processes. This increase in performance and decrease in process variation lead to defect

reduction and improvement in profits, employee morale and quality of products or services.Six Sigma quality is a term generally used to indicate a process is well controlled (6 s

from the centerline in a control chart).

Six Sigma Performance

Six Sigma Performance

Sigma 1: Defects per million = 690,000 Sigma 2: Defects per million = 308,537

Sigma 3: Defects per million = 66,807

Sigma 4: Defects per million = 6,210

Sigma 5: Defects per million = 233

Sigma 6: Defects per million = 3.4

SMED


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Single Minute Exchange Die (i.e., under 10 min) has become a title for the category of

improvement devices used in manufacturing to allow for quick change over of

machine/fixture set-ups.

Sort

Japanese term Seiri; to separate needed tools, parts and instructions from unneeded

materials and remove the latter.

Spaghetti Diagram

A Lean tool used to show the path that a product takes along the process flow. It shows thegeography of the department. Can be used to demonstrate the transportation waste in a

process flow.

Standard Deviation

A statistic used to measure the variation in a distribution. Sample standard deviation is

equal to the square root of (the sum of the squared deviations of the mean divided by thesample size minus 1). Where the whole population is known, the minus 1 "fudge factor"

should be omitted.

Standard deviation is a measure of the spread of data in relation to the mean. It is the most

common measure of the variability of a set of data. If the standard deviation is based on asampling, it is referred to as 's.'

In formulae it is often represented by the letters SD or the symbol (Greek letter) sigma.

Although it is closely related to, and used in calculations for, the Sigma level of a process

you need to be careful to distinguish the two meanings.

Standard Operations

The combination of people and machines required to accomplish production in such a way

as to minimize waste and variation by establishing only 1 way to perform the process

Standard WIP

One of the three elements that make up standard work. It is the minimum quantity of partsalways on hand for processing during and between sub processes. It allows workers to do

their job continuously in a set sequence, repeating the same operation over and over in the

same order (see standard work).

Standard WIP

Minimum and standardized amount of work in process required to perform operations


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Standard Work

A precise description of each work activity specifying cycle time, takt time, and the work

sequence of specific tasks and the minimum inventory of parts on hand needed to conductthe activity. All jobs are organized around human motion to create an efficient sequence

without waste. Work organized in such a way is called standard(ized) work (see takttime, working sequence and standard in process stock, which are the three elements

that make up standard work).

Standard Work Combination Sheet

A table that clarifies how much time is spent doing manual work and traveling at each

production process.

Standard Work Sheet

Shows the outline of work for each worker in a cell. Recorded on it are: Takt time, worksequence, standard WIP, quality checks, safety precautions, etc.

Standardize

Japanese term Seiketsu; to conduct Seiri, Seiton, and Seiso at frequent, indeed daily

intervals to maintain a workplace in perfect condition.

Statistical Process Control (SPC)

Statistical process control (SPC) is the application of statistical methods to identify and

control the special cause of variation in a process.

Statistical Process Control (SPC) is the equivalent of a histogram plotted on it's side over

time. Every new point is statistically compared with previous points as well as with thedistribution as a whole in order to assess likely considerations of process control (i.e.

control, shifts, and trends). Forms with zones and rules are created and used to simplify

plotting, monitoring, and decision making at the operator level. SPC separates special

cause from common cause variation in a process at the confidence level built into the rulesbeing followed (typically 99.73% or 3 sigma).

Stop the line authority

Power given to workers to stop the process when abnormalities

occur, allowing them to prevent the defect or variation from being passed along.

Store

Japanese term Seiton; Neatly arrange and identify parts and tools for ease of use


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Sub- Optimization

A condition in which gains made in one activity are offset by losses in another activity, or

activities that are caused by the same actions that created gains in the first activity.

Subject Matter Expert (SME)

The Subject Matter Expert is that individual who exhibits the highest level of expertise in

performing a specialized job, task, or skill within the organization.

An SME might be a software engineer, a helpdesk support operative, an accounts manager,

a scientific researcher: in short, anybody with in-depth knowledge of the subject you areattempting to document. You need to talk to SMEs in the research phase of a

documentation project (to get your facts straight) and you need to involve them in the

technical validation of your drafts (to make sure that your interpretation of information

matches theirs).

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.

Sustain

Japanese term Shitsuke; Means to form the habit of always following the first 4 Ss.

Collectively, they define an orderly, well inspected, clean, and efficient working

environment.

SWOT Analysis

A scan of the internal and external environment is an important part of the strategic

planning process. Environmental factors internal to the firm usually can be classified as

strength (S) or weaknesses (W), and that external to the firm can be classified as

opportunity (O) or threats (T). Such an analysis of the strategic environment is referred toas a SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firm's resources

and a capability to the competitive environment in which it operates. As such, it isinstrumental in strategy formulation and selection.

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Takt Time


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The pace that is set for the system to operate at. Customers establish Takt Timethe

following equation is used to establish it: Available production time / required production

(fcst & act demand)..must be like units; e.g.,

1 shift = 1980 min/wk 1980 = 10 mim = Takt Time

fcst = 198 units/wk 198

Theory of Constraints (TOC)

Also called constraints management, TOC is a management philosophy that stresses

removal of constraints to increase throughput while decreasing inventory and operatingexpenses. TOCs set of tools examine the entire system for continuous improvement. The

current reality tree, conflict resolution diagram, future reality tree, prerequisite tree and

transition tree are the five tools used in TOCs ongoing improvement process.

Time Based Competition

The belief that the originator or first producer/vendor of a product has a significant marketadvantage over other companies. See also "Time to Market"

A bi-product of this "race to market" is that competing companies must adapt their

organizations in ways to minimize the time it takes to develop a product to exploit the

"First on the scene" advantage.

Time to Market

The length of time it takes to develop a new product from inception until its' first marketsales.

Total Cycle Time

The Rate of completion of a process of operation. You calculate this number by addingtogether all individual cycle times in a given process.

Toyota Production System

The production system developed by Toyota Motor Corp. to provide best quality, lowest

cost and shortest lead time through the elimination of waste. TPS is based on two pillars:just-in-time and jidoka. TPS is maintained and improved through iterations of standardized

work and kaizen (see jidoka just-in-time and kaizen).

TPM

Total Productive Maintenance is the total involvement of all employees in a cell to improve

the process.


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TQM

Total Quality Management A systematic customer focused approach to continuous

performance improvement. A philosophy and set of guiding principles which represent thefoundation for continuously improving the organization through employee involvement.

The application of quantitative methods and human resources to improve the materials andservices supplied to and by an organization and all the processes within the organization

and the degree to which the needs of the customer are met. The integration of fundamentalmanagement techniques, existing improvement efforts, and technical tools, under a

disciplined approach to focus on continuous improvement.

U

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Unnecessary Processing

One of the 7 types of Waste. Effort which adds no value to a product or service.

V

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Value Added

See Work, Value Added

Value Stream

The specific activities required to design, order, and provide a product from concept to

launch order to delivery raw materials to finished goods.

Value Stream Mapping

The process of detailing the process of converting raw material to finished goods. This istypically mapped with the 7 flows (info, people, equipment, raw material, sub-assembly,

assembly, and engineering) one at a time, or in a combination.

Variation

Any difference(s) that exist between design specifications and actual output.

Visual Controls


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Any devices that help operators quickly and accurately gauge production status at a glance.

Progress indicators and problem indicators help assemblers see when production is ahead,

behind or on schedule. They allow everyone to instantly see the groups performance andincrease the sense of ownership in the area

Visual Management

Refers to the means by which anyone can tell at a glance if production activities are

proceeding normally or not. A communication, discipline and pacing tool.

Vital Few

Derived from the pareto chart, the term indicates that many defects come from relatively

few causes (the 80/20 rule). For example, 20% of the people in the country make up 80%

of the wealth of the country. Vital Few: These are the few (20%) independent variables

(X's) which contribute to maximum (80%) of the total variation. These are identified

through Pareto Charts and Design of Experiments

W

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Waiting

One of the 7 types of Waste. Idle time that is produced when two processes are not

synchronized.

Waiting Time

The time that a worker is idle when no work is available.

Waste

Muda in Japanese. Anything that does not add value to the final product or service, in the

eyes of the customer. An activity the customer wouldn't want to pay for if they knew it was

happening. There are 7 Types of Waste:

1) Defects

2) Excess Motion 3) Overproducing

4) Unnecessary Processing

5) Excess Material or Information

6) Excess Transportation

7) Waiting

WIP


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Work In Process Inventory - Items (material or information) between machines or

processes or activities waiting to be processed. inventory of materials that has been already

started processing.

Work Sequence

One of the 3 elements of standard work refers to the sequence of operations in a single

process that leads a worker to produce quality goods in the most efficient way

Work, Non-Value Added

Rework, set-ups, inspection, repair processing, transportation, unnecessary work tocomplete the manufacture of a product. Anything that isnt directly changing the form fit or

function of the part.

Work, Value Added

Only necessary direct work to manufacture a product. Anything that the customer is willing

to pay for or an operation that changes the form, fit, or function of the part. In order tovalue added, it must meet 3 criteria: 1) Something customer is willing to pay for; 2)

Transform something; 3) Done right the first time

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