Like many other areas that lean is applied to a company's supply chain or "extended value stream" is a tightly linked set of processes. These processes extend beyond one's organization and connect the entire system together.
2 Comments
Opportunity costs are the opportunities that you may have missed out on as a result of a purchase you made. In other words it is the return on your investment that could have occurred had you chosen to invest in something else.
ABC inventory classification is one of the most fundamental concepts of inventory management. Many organizations use ABC inventory classification to assist with inventory management, sales of inventory and purchasing of inventory. This classification system works by placing inventory into different categories.
Poka-yoke (ポカヨケ) is a Japanese term that means "mistake-proofing". It is derived from poka o yokeru (ポカを除ける), a term in shogi and igo referring to avoiding an unthinkably bad move.
Zero Quality Control is a method/approach for achieving zero defects in an organization. Zero gives reference to the objective of ZQC which is to produce products/services with zero defects.
The DMAIC Method is a problem solving methodology used within a six sigma strategy. The methodology focuses on improving business processes, specifically through the improvement of quality and reducing variation. It is an Integral part of six sigma.
Single minute exchange of die is a concept developed by Shigeo Shingo which seeks to perform all setup/changeover times under ten minutes (single minute).
The standard deviation is a statistic that tells you how tight or loose the range/spread of data is in relation to the mean or average of the data. Typically when a data range is clustered tightly the "bell curve" will be tall/steep. When the data is range is spread far apart the "bell" will appear flat or short and wide.
Visual management is a way to visually communicate and manage various standards, metrics, improvements, safety requirements and expectations. All forms of visual management should be clearly displayed and understood with no explanation other than visual analysis by everyone.
Manufacturing lead time is different than lead time. Manufacturing or production lead time is the total amount of time it takes to "manufacture" or "produce" an item.
Engineer to Order, also known as design to order refers to products or services whose customer specifications/requirements contain significant customization, unique designs or innovative and new purchased materials.
Standard work in process is the minimum necessary level of items or materials needed to maintain the proper flow in a production environment.
Organizational design is the formation of an organization's structure.
One of the most important components of standard work is understanding what the cycle time of a process is. Cycle time is sometimes referred to as standard cycle time. Cycle time is the amount of time it takes to complete an individual operation or task from start to finish. In other words, the amount of time required to process one part. This includes processing time on a machine, any manual work that may be required, waiting, inspection, walking and any other activities involved in processing the one part.
A problem statement describes what, where, how big and when the problem occurs. The statement is intended to be very clear and concise, focusing only on the issue or opportunity that was initially discovered.
The degree or process by which a multinational organization standardizes, integrates or combines activities around the world so that they use the same methods, no matter where the activity or method is being performed.
The Project charter is an informal contract between the organization and the team. A project charter will define the focus of a project, the problem, the goal, the scope, team and metrics linking the team's objectives together. The project charter often is revised multiple times throughout a project.
Assets is an accounting term that is used for items and resources that a company already owns. The term is used on a balance sheet to classify these items. Assets on hand are not the same as liabilities. The APICS Dictionary defines the term Assets as:
"Batching" or batch production is a technique used in both office and manufacturing environments. This type of production creates the object or activity over a series of workstations one stage at a time. The objects are created in "groups" or "batches."
The ©STUDY activity was inspired by Mr. Taiichi Ohno's famous stand in the circle training method.
Continuous improvement is the act of making incremental and regular improvements, which is often referred to as kaizen.
Jidoka is a term that describes one of the key pillars of the Toyota Production System. Sakichi Toyoda first invented Jidoka or Autonomation back in the mid 1890's.
Six Sigma is a strategy that gives organizations a structured means to improve business processes and solve problems. In other words, it is a methodology that uses different improvement tools in an effort to continuously improve business processes. The main focus or intention of Six Sigma is to decrease process variation and improve the quality of products and services. The result of improved business processes leads to increased performance, reduced defects, reduced variation, improved use of capital and resources and more stable and consistent results/outputs.
A spaghetti diagram is a tool used to track the amount of movement or distance traveled by a worker or materials. You can then use a spaghetti diagram to analyze what you tracked and improve the flow. As a tool that is used in the analysis of process flows, a spaghetti diagram reveals redundancy in processes and helps users to identify various forms of waste. The name comes from the reference of laying spaghetti noodles out to show the flow of materials or workers.
|
GlossarySubscribe below and receive lean, six sigma, operations, supply chain, logistics, distribution and business terms in your mailbox.
CLICK HERE TO SUBSCRIBE Archives
April 2024
|