LEAN SIX SIGMA GLOSSARY OF TERMS WWW.LBSPARTNERS.IE
A A3 Analyse Andon Andon Board Autonomation B Balanced Production Line Batch-and-Queue Benchmarking Bottleneck Best-in-Class Blitz C Catch-Ball This is a problem solving methodology, visually displayed on A3 sized sheet of paper that captures the main elements to an issue/opportunity. It contains the problem statement, the current condition, the root causes, the suggested alternative solutions, the recommendations, the cost benefit analysis and the next steps on the path to perfection. The third step in the DMAIC process improvement methodology. During this step, the root causes of waste are identified and solutions or countermeasures are proposed to eliminate them. A visual display which communicates the current work condition. It is controlled by the operator and can be used to request help in abnormal conditions. A visual control device used in a production area to give the current production status. It alerts production support personnel that an abnormal condition has occurred threatening to stop the line if support is not received immediately. One of the two pillars of the Toyota House of Quality (also referred to as Right-First-Time or Jidoka). It is referred to as automation with a human touch or human intelligence, i.e. the machine stops automatically if the part produced is out of specification. The situation where the quantity and variety of work is evenly distributed across the available time, avoiding excess work in one area and underuse of available capacity in another. All operations or cells produce at the same cycle time. In a balanced system, the cell cycle time is less than takt time Batching is where an operation produces more than one item at a time (a batch), when transported to the downstream operation the item in the batch must wait in a queue to be processed. This increases the work-in-progress inventory. Measuri g a o pa s produ ts, ser i es, a d pra ti es agai st those of leading companies in an appropriate business sector with a view to learning from the exercise. Generally any resource where the available capacity is less than the demand placed on it. A best-known example of performance in a particular process or business sector. A fast and focused process for improving the performance for an operation (i.e. a product line, a machine, or a process). A crossfunctional team is usually deployed to identify problems and quickly solve them (also referred to as a Kaizen Blitz, a Kaizen Event or a Rapid-Improvement-Event). A subset of Hoshin Planning / Policy deployment, the objective is to guarantee that all the project activities are aligned to the 2
Cells Changeover Constraint Continuous Flow Production Control Current State Map Cycle Time D Defect Define DMAIC Downstream E Error Error-Proofing strategic goals of the operation. It takes the form of a series of meetings between managers and their employees; where data, ideas, and analysis are passed like a ball until the critical projects are identified and scoped. This promotes open and productive dialogue and builds commitment throughout the entire company. The optimum layout of machine and material and deployment of people, to facilitate single piece flow and eliminate the waste of transportation, inventory and motion. Cells may be laid out in different configurations, for example Pod, Straight line, U-shaped, L-shaped or a combination of different layouts. Changing any aspect of the production process to ensure that the correct product is produced to specification. For example this can range from changing the paint on a paint line to multiple tool changes across a cell. Setup and SMED can be regarded as subsets of a changeover. Any resource which limits a system from achieving higher performance/throughput. Items are produced and moved from one processing step to the next, one piece at a time. Also called "single-piece flow" or "onepiece flow." The fifth step in the DMAIC process improvement methodology. The purpose of control is to ensure that gains made are preserved, pending further process improvement efforts. An output from the Value Stream Mapping process which visualises the current process and helps identify sources of waste. The time required to complete one full cycle of an operation producing one part fit for the next operation. A defect is the result of an error; it is a deviation from the product specification that may lead to customer dissatisfaction. The first step in the DMAIC process improvement methodology. In this step improvement opportunities are identified, the team is formed and the project scope is agreed between the team and its sponsors. A standard process improvement model consisting of the steps: Define, Measure, Analyse, Improve and Control. Refers to process steps or activities after the current step. The downstream operation must be viewed as the customer of the current step. Is where a mistake occurs in an operation or process which gives rise to a defect. A structured process which seeks to prevent errors through robust product and process design, to eliminate or immediately detect defects as they occur (using Poka-Yoke). It ensures that defects are never passed to the next operation. 3
F Flow Functional Layout Future State Map G Gemba H Hansei Heijunka Hoshin Planning I Improve Inventory Inventory Turnover Rate J Jidoka One of the five Lean Principles and a main objective of the Lean production effort. Flow is one of the important concepts that passed directly from Henry Ford to Toyota. Ford recognized that, ideally, production should flow continuously all the way from raw material to the customer without interruption (including queuing, downtime and defects). The practice of grouping machines or activities by type of operation performed. It is an aspect of mass production and promotes batching. An output from the Value Stream Mapping process which envisions how the VSM will appear if the action plan is successfully implemented. It is a time bounded interim map usually requiring several iterations to bridge to the Ideal state. A Japanese term for the going to the location of the source of the problem. Utilise MBWA (Manage By Walking Around). It enco passes the Four A tual s:- Go to the Actual Work Place. Look at the Actual Process. Observe the Actual Problem, and collect the Actual Data. A ter used to des ri e self refle tio. The Che k part of PDCA. A necessary step toward continuous improvement A method of levelling production that makes Just-In-Time (JIT) production possible. This involves averaging both the volume and sequence of different model types on a mixed-model production line. Also referred to as Management by Policy or Strategy Deployment. It is a pro ess hi h a orga isatio s strategi pla is established, aligned and measured to ensure the plan is realised. Catch-ball is an integral part of this process ensuring the plan is communication, and owned by all levels of the organisation. The fourth step in the DMAIC process improvement methodology. The purpose of this step is to implement changes to the process to eliminate waste defined by the goals of the improvement project. One of the wastes defined by Lean; it could be for example, a build-up of completed work between process steps or raw materials held to avoid a shortage. In the service area it could be excess work queues for example The number of times an inventory cycles or turns over during the year. A frequently used method to compute inventory turnover is to divide average inventory level into annual material cost of sales. A pillar of the Toyota House-of-Quality. It refers to the philosophy of doi g it Right First ti e. It e apsulates the philosoph of quality ownership to the process that generates the error, thus 4
Just-in-Time (JIT) K Kaizen Kanban Kitting L Lead Time Lean Assessment Lean Manufacturing Lean Principles LEAN SIX SIGMA TERMS GLOSSARY ensuring resolution of the root cause. A pillar of the Toyota House-of-Quality. JIT is a system for producing and delivering the right items at the right time, in the right amounts. The key elements of Just-in-Time are Flow, Pull, Standard Work, and Takt Time. Continuous improvement of a system, a process or activity to create more value with less waste. System or flow kaizen focuses on the entire Value Stream while process or point kaizen focuses on a single process. Kaizen Blitz and Kaizen Events are accelerated focused workshops which seek to deliver process improvements normally over a 3-5 day period. A material management and replenishment system which depends on cards and boxes/containers to take parts from one workstation to another on a production line. The essence of the Kanban concept is that downstream process is the customer and must pull from the upstream process giving it permission to produce more parts, eli i ati g the aste of Inventory in the production area. The situation where operators are supplied with a kit of parts for each assembly task. This helps eliminate the waste of unnecessary movement and if implemented diligently can act as a poka-yoke reducing defects by ensuring that the exact number of parts that are issued, equals those that are consumed in the process, therefore ensuring the quality of the product. The total time a customer must wait to receive a product after placing an order. A business assessment to establish the level of adoption of Lean principles and approaches. The assessment covers Lean categories such as Leadership, Strategy, Quality, Process Control, Continuous, Improvement, People Development, Workplace Organisation, Scheduling/Loading, Flow, Inventory, Pull and Design. A philosophy which focuses on increasing the value add to customers by the elimination of waste (Muda), unevenness (Mura) and unreasonableness (Muri) from business processes and systems. VALUE - Al a s spe if alue fro the Custo er s perspe ti e VALUE STREAM - Map the sequence of processes from Raw Material to the Customer and eliminate waste CONTINUOUS FLOW - Create continuous flow, without interruption between processes PULL - Produce products and services ONLY when the Customer wants them PERFECTION - Improve continuously in pursuit of perfection M Mean (Arithmetic) The sum of n numbers divided by n. Measure The second step in the DMAIC process improvement methodology. 5
Monument Motion Muda N Non-Value Adding Non-Value Adding but Current Necessary O One-piece Flow Overall Equipment Effectiveness (OEE) Overprocessing Overproduction P PDCA (Plan, Do, Check, Act) Cycle Perfection The purpose of this step is to collect process data, establish baselines upon which improvement projects will be based. Any aspect of the design process, scheduling process or element of production capability, which inhibits Flow and consumes resources. Monuments give raise to overproduction, batch and queue processes and while appearing to have a small direct cost, they drive significant indirect cost and overhead. The waste which describes unnecessary movement of people. For example walking to pick up material or tools. Wasted motion at the work place due to poor handling of Material, and workstation ergonomics A Japanese word which refers to non-value-add activities (waste), these are identified by the eight forms of waste (TIM WOODS). Any activities or actions which occur in the process but which add no real value to the product or service, these activities are considered to be a form of waste and should be eliminated immediately. A a ti it hi h a e defi ed as No -Value Addi g ut u der current conditions cannot be eliminated. Typical these activities are driven by regulatory obligation and batch oriented technology. One-piece flow or continuous flow processing is a concept which directs that items are processed and moved directly from one processing step to the next, one piece at a time. One-piece flow helps to maximise utilization of resources, shorten lead times, identify problems real time improving quality and improves communication between customer and supplier operations. OEE is a composite measure of a a hi e s effe ti e ess; it s determined by considering three aspects of the machines performance the availability, efficiency, and quality rate. Performing duplicate or redundant operations, completing additional work which is not required by the customer. Is the most profound of the eight wastes and occurs when production runs ahead of demand; items are produced in greater volume than required, sooner than required or faster than required. Generating the wastes of Inventory, Transport and Waiting. This is a scalable four step problem solving methodology. PLAN: Identify the problem, analyse the problem, set baseline and targets and define an action plan. DO: Execute the action plans CHECK: Validate the new condition versus the target ACT: Make the necessary adjustments to plans and priorities in order to sustain the gains. The Fifth Lean Principle dictates that continuous Improvement is a 6
Poka-Yoke Process Process Kaizen Processing Time Pull Push Q Queue Time R Right Sizing S 6S Sensei Setup Single Minute Exchange of Dies (SMED) Single Piece Flow perpetual journey of eliminating waste to enhance values for the customer. A Japanese word which refers to a mistake-proofing device or procedure that immediately identifies errors, preventing defects being passed to the internal or external customer. The flow of material in time and space. The accumulation of subprocesses or operations that transform material from a raw condition to finished product. Improvements made to an individual process or in a specific area, also known as "point kaizen". The time a product is actually being worked on in a machine or work area. The fourth Lean Principle, pull means producing only what has been consumed by downstream activities, the internal or external customers. Its application includes implementation of Kanban. Push means that the upstream process produces to forecast seeking to do so at the maximum speed, regardless of the actual customer demand. This behaviour promotes the eight wastes, causing unevenness with Inventory and unreasonableness with capital investment increasing the capability of the enterprise to overproduce. The time a product spends in a line waiting for the next process step. It applies to both manufacturing and service industries. Relates to the sizing of equipment so it is fit for function, compatible with the Takt time and TPM. Right sizing favours, where possible, the use of smaller, dedicated machines rather than large, multipurpose, batch processing machines. A Lean methodology used for workplace organisation and process improvement. The 6Ss are: Sort, Set-in-Order, Shine, Standardise, Sustain and Safety. 6S implementation engages the operators in process improvement and de o strates the a age e t s commitment. It is an essential first step in a Lean transformation. A master or teacher who assists in implementing lean practices. Their role is to facilitate the transformation, provide technical assistance, get quick results and maintain momentum. Relates to the change of tooling on a machine or production line where production is interrupted. As tools and fittings are replaced, adjustments are required to establish the normal operating conditions. Setup is an element of changeovers and closely associated with SMED. Is a methodology developed by Shigeo Shingo for reducing changeover /setup times to less than ten minutes with the longterm objective being zero or instantaneous changeovers. Where products flow, one piece at a time through processes 7
Standard Deviation Skills Standard Work System Kaizen Sub-Optimal T Takt Time Throughput Time Total Productive Maintenance (TPM) Toyota Production System (TPS) Transport Toyota House of Quality without interruptions, backflows or scrap A widely used measure of the variability or dispersion of a data population or data set, the average difference of the scores from the mean of distribution, how far they are away from the mean. Listed as the eighth waste defined as Failing to utilise the skills or capabilities of all the workforce A precise description of each job (work activity). It consists of three elements takt time, work sequence and standard work in process (material). It is the best combination of people, machine and material to do the job with the minimum waste. Improvement focused on improving the performance of the entire value stream. A condition that is created when a process is improved but the performance of the overall system is negatively impacted. This demonstrates a lack of vision and system thinking and can make for busy fools. Takt is a Ger a ord for pa e or eat. In the context of Lean Takt Time defines the rate of production to the rate of sales (customer demand). It is determined by dividing the total available production time by the customer demand rate. It can be worked out on a daily, weekly or monthly basis depending on the individual situation. Takt time sets the pace of production which drives the headcount and capacity plans; also it should dictate the sizing of equipment and scaling increment. The time required for a product to proceed from concept to launch, order to delivery, or raw materials into the hands of the customer. This includes both processing and queue time. Total Productive Maintenance (TPM) is a maintenance program aimed at minimising the impact of downtime on production and flow. The goal of TPM is to avoid emergency repairs and keep unscheduled maintenance to a minimum. The benefit of TPM is that every machine in a production process is always able to perform as required so production is never interrupted. A system developed by the Toyota Motor Corporation to provide the best quality, lowest cost and shortest lead time, the affect of this is to increased productivity and cost reduction. The ultimate aims of the TPS are to enhance value for the customer and reduce the cash conversion cycle for the company. The Lean waste which relates to the unnecessary movement of things, whether they are materials, files etc. Moving bits from one location to another unnecessarily. A graphical method of explaining the principles of the Toyota Production System. At its base is the principle of Stability, involving concepts such as Standard Work, TPM, and Work/Line balancing. The Customer is at the top of the house, the ultimate aim of the 8
U Upstream V Value Value-Added Analysis Value Stream Value Stream Mapping (VSM) Visual Control Visual Management Voice Of The Customer (VOC) W Waiting Waste system being to provide and enhance value to the customer in terms of highest quality, lowest cost, and shortest lead time. Its two pillars are Just-in-Time and Jidoka (Right-First-Time). The TPS is supported by a process of continuous improvement which is dependent on the skills and knowledge of the people within the organisation. Refers to process steps or activities before the current step Value must be defined in each case by the ultimate customer. It can only be created by the producer and consist of discrete attributes which are: 1. The customer must be willing to pay for it 2. Some transformation must occur 3. It must be done right first time All three attributes must be available for value to be created. With this activity, a process improvement team strips the process down to it essential elements. The team isolates the activities that in the eyes of the customer actually add value to the product or service. The remaining non-value adding activities ("waste" are targeted for elimination. The sequence of activities that delivers value to customers. The value stream transforms materials and information to meet the specific customer requirements. VSM is a graphical tool used to illustrate and understand the flow of the material and information used to transform the product as it proceeds through the value stream. It highlights the sources of waste and drives action plans to eliminate them. There are three map variants the Current State, the Future State, which is time bound and the Ideal State, which is the long term vision. Is the use of visual devices in the workplace that make it easy to see and maintain the desired operational condition. Examples include ahead and behind charts, shadow boards, andon lights, pallet location and max and min stock levels. Is the display of process specific information in the work area. This involves the collection and display of process performance data, problem identification, customer specifications, work instructions and capability information (such as Training Matrix, Holidays, Safety and Absenteeism). Its objective is to facilitate process improvement by promoting problem solving and ownership, amongst the operational team. The Custo er s eeds a d e pe tations that must be met to deliver customer satisfaction. Waiting for work from the upstream step occurs when you have an unbalanced process or assembly line Anything that uses resources, but does not add real value to the 9
product or service. Lean systemises waste under the headings derived from Taii hi Oh o s origi al list of those commonly found in physical production. 1. Unnecessary TRANSPORT of materials, 2. INVENTORY more than the absolute minimum, 3. Unnecessary MOVEMENT by employees during the course of their work, and production of defective parts. 4. WAITING for the next processing step, 5. OVERPRODUCTION ahead of demand, 6. OVERPROCESSING of parts due to poor tool and product design, 7. Production of DEFECTS/REJECT parts 8. Not usi g people s SKILLS or experience W Work in Process (WIP) Y Yield A useful mnemonic to help remember these wastes is TIM WOODS (T Transport, I Inventory, M Motion, W Waiting, O Overproduction, O Overprocessing, D Defects/rejects, S - Skills) Product or inventory in various stages of completion throughout the plant, from raw material to completed product Actual output of good product from a process as related to the planned output from that process. 10