Shoplogix Glossary: 30+ Lean Manufacturing Terms

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Understanding Lean can feel like learning a new language. That’s why we’ve created a concise glossary of 30+ essential Lean manufacturing terms. This guide is designed to make the Lean jargon more accessible and enable you to apply these principles in your own organization. So, whether you’re a Lean novice or just need a refresher, stay with us as we demystify Lean Manufacturing. 

Understanding Lean Manufacturing

Lean Manufacturing, a concept initially developed by Toyota, is all about reducing waste and enhancing productivity within manufacturing systems. It’s a strategic approach that prioritizes delivering value to customers, responding quickly to their inquiries, and constantly seeking process improvements.

In short, Lean Manufacturing is a set of principles and practices aimed at driving efficiency and profitability in manufacturing. It focuses on identifying customer values, minimizing waste, and promoting continuous improvement. By adopting these principles, businesses can significantly enhance their efficiency and reduce waste.

Related: Understanding Lean Manufacturing: Principles, Techniques, and Benefits

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30+ Lean Manufacturing Terms

5S

Full description

The 5S methodology is a systematic approach to workplace organization, originating from Japanese manufacturing practices. It focuses on creating and maintaining an organized, clean, efficient, and safe work environment. The method is named after five Japanese words – Seiri, Seiton, Seiso, Seiketsu, Shitsuke – which translates to:

  • Simplify (Seiri): This involves sorting and eliminating unnecessary items in the workspace. Only essential items required for the work process should be kept, enhancing efficiency and reducing clutter.
  • Straighten (Seiton): After sorting out necessary items, they should be logically organized for easy access. The goal is to minimize time spent searching for tools or materials, often following the principle of ‘a place for everything and everything in its place’.
  • Scrub (Seiso): Regular cleaning of the workspace is crucial. Not only does it maintain a hygienic environment, but it also enables workers to notice any irregularities or potential issues with equipment or processes early on.
  • Stabilize (Seiketsu): This step involves standardizing the first three steps. Processes are developed to ensure consistency in sorting, organizing, and cleaning. Additionally, personal orderliness and neatness are emphasized.
  • Sustain (Shitsuke): The final step is about maintaining and improving the established processes. It’s about creating a culture that values organization and cleanliness, encouraging everyone to adhere to the 5S standards routinely and consistently.

Related: What are the 5S in Lean manufacturing

Affinity Diagram

Full description

The Affinity Diagram is a way to sort out complex language data. You write different pieces of information on separate cards. Then, you group these cards if they are similar or related. “Header” cards summarize each group’s main idea or theme. This method makes it visually easier and more interactive to categorize and understand complicated language information.

Andon

Full description

An Andon is a visual aid, like a light or board, used in production lines to show work progress easily. It signals any abnormal situations quickly, allowing supervisors to fix problems right away. It can also guide workers by providing instructions for tasks such as quality checks or tool changes.

Autonomous Maintenance

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Autonomous Maintenance is a strategy from Total Productive Maintenance (TPM) that involves operators in basic upkeep tasks. These tasks can include cleaning, lubricating, and inspecting the machinery they use, promoting efficiency and preventing breakdowns.

Bottleneck Analysis

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Bottleneck Analysis is a way to find out which step in the manufacturing process slows down the overall production. The goal is to improve that specific part of the process, increasing the total output and efficiency.

Cellularization

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Cellularization is the process of arranging machines or processes in a specific order that matches their work sequence. This setup enhances flow production, creating a smoother and more efficient workflow.

Chaku-Chaku

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Chaku-Chaku, a Japanese term meaning “Load-Load”, refers to an extremely efficient production line. In this setup, the operator’s job is simply to load parts and then move on to the next operation, without needing to unload anything, making the process faster and more streamlined.

Continuous Flow

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Continuous Flow is a manufacturing method where ongoing work moves seamlessly through various stages of production. This process aims to eliminate or minimize pauses between steps, reducing the need for buffers and boosting overall efficiency.

Cycle Time

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Cycle Time refers to the overall time taken by a worker to finish one full cycle of their job tasks, which includes both their active working time and any time spent walking or moving between tasks. It’s a key measure in assessing efficiency and productivity in a work process.

Designed for Manufacture and Assembly (D.F.M.A.)

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Designed for Manufacture and Assembly (D.F.M.A.) is a principle that aims to enhance cost-effectiveness and worker safety by simplifying the production and assembly process. This is achieved by strategically designing products in a way that makes them easier and safer to manufacture and put together.

Drum-Buffer-Rope

Full description

Drum-Buffer-Rope is a strategy from the Theory of Constraints that aims to align production with the constraint, while keeping inventory and work-in-process to a minimum. In this process, the “Drum” represents the constraint or limiting factor in production. The “Buffer” refers to the necessary inventory kept on hand to ensure smooth production, and the “Rope” is a signal triggered when a certain amount of this inventory has been used up, indicating it’s time to produce more.

Economic Value Added (E.V.A.)

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Economic Value Added (E.V.A.) is a financial metric that calculates the profit made after deducting the cost of capital from the net operating profits after taxes. It’s closely tied to shareholder value, serving as a key indicator of a company’s financial performance. Essentially, E.V.A. encourages managers to adopt an owner’s mindset in their decision-making, promoting actions that increase the company’s value.

Failure Mode and Effect Analysis (F.M.E.A.)

Full description

Failure Mode and Effect Analysis (F.M.E.A.) is a systematic method used to evaluate and identify possible failures in a process or product, and determine their potential impact. Once these potential failures are recognized, appropriate corrective measures are put into place to prevent these failures from happening, thereby enhancing the reliability and safety of the product or process.

Five Why’s

Full description

The Five Why’s is a straightforward problem-solving technique that involves asking “why” five times to dig deeper into a problem or situation. By consistently asking why, it helps peel back the layers of symptoms leading to the root cause of a problem. This method encourages critical thinking and helps identify the core issue that needs addressing.

Flexible Manpower Line

Full description

A Fixed Manpower Line refers to a production or operational setup where the number of workers remains constant, regardless of the level of production. Whether production levels rise or drop, the workforce size stays the same, meaning it can’t be adjusted to align with changes in production demand. It’s a type of staffing strategy commonly seen in isolated job sites or situations where workforce flexibility is limited.

Flow Chart

Full description

A flow chart is a visual tool used to depict the sequence of steps in a process, thereby simplifying complex procedures and making them understandable. It can represent the current (“as is”) process or an ideal (“should be”) process, allowing for easy comparison and identification of inefficiencies or waste. This aids in problem-solving by highlighting areas for improvement.

Gemba (The Real Place)

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Gemba is a philosophy that emphasizes the importance of experiencing the workplace first-hand, rather than managing from a distance. It encourages leaders to leave their offices and spend time on the plant floor or where the actual work happens, as it’s the place where real, meaningful insights can be gained about processes, problems, and potential improvements.

Genchi Genbutsu

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Genchi Genbutsu is a problem-solving approach that emphasizes the importance of personal observation. It encourages individuals to visit the actual site or location where an issue has arisen in order to gain a first-hand understanding, rather than relying on secondary or indirect information. This method ensures more accurate assessments and effective solutions.

Hanedashi

Full description

Hanedashi refers to an automated system that unloads a work piece from one process and prepares it for the next operation. This mechanism not only expedites the unloading process, but also ensures the work piece is correctly oriented for the subsequent procedure. This automatic unloading and orientation is a key feature of a “Chaku-Chaku” production line, which is designed for maximum efficiency.

Heijunka (Level Scheduling)

Full description

Heijunka is a production strategy that aims to even out the ups and downs in customer demand. It seeks to maintain a steady production volume and variety, thus reducing strain on resources and improving efficiency. This concept is closely related to Just-In-Time production, which focuses on producing only what is needed, when it’s needed, and in the exact amount needed.

Hoshin Kanri (Policy Deployment)

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Hoshin Kanri, also known as Policy Deployment, is a method that ensures all levels of an organization are working towards the same goals. It connects the company’s strategic objectives with the tactical plans of middle management and the actions carried out by workers on the plant floor. This ensures everyone in the company is aligned and working towards a common purpose.

Jidoka (Autonomation)

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Jidoka, also known as Autonomation, is a concept that involves partially automating the manufacturing process, which is usually more cost-effective than fully automating it. The unique aspect of Jidoka is that the machinery is designed to halt automatically when it detects any defects or irregularities, thereby preventing the production of faulty goods and maintaining quality control.

Jishuken

Full description

Jishuken is a management-led initiative in the Kaizen philosophy, which focuses on continuous improvement. In this process, members of management identify areas that could benefit from improvement and disseminate this information throughout the organization. This proactive approach stimulates further Kaizen activities, fostering a culture of ongoing improvement within the company.

Just-In-Time (JIT)

Full description

Just-In-Time (JIT) is a production strategy that focuses on creating products based on actual customer demand, rather than producing based on forecasted demand. This strategy utilizes several lean tools including Continuous Flow, Heijunka, Kanban, Standardized Work and Takt Time to streamline the production process, reduce waste, and increase efficiency. The result is that products are produced exactly at the time they are needed, minimizing inventory and enhancing productivity.

Kaikaku

Full description

Kaikaku is a Japanese term that refers to a radical, comprehensive change in a process or activity with the aim of eliminating all forms of waste, known as Muda. The ultimate goal of Kaikaku is to create significantly more value, often involving innovative and transformative changes that can lead to substantial improvements in efficiency and productivity.

Kaizen (Continuous Improvement)

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Kaizen is a Japanese concept that translates to “continuous improvement.” It’s based on the belief that our everyday activities should constantly improve, never accepting the status quo. This philosophy identifies that waste (Muda) exists everywhere—whether it’s connected to people, materials, facilities, or the production setup—and seeks to eliminate it.

Kaizen involves a series of activities where workers collaborate to identify and eliminate instances of waste one by one, usually at minimal cost. These activities aim to increase efficiency swiftly and predominantly focus on manual work operations rather than equipment, fostering a culture of constant improvement within the workforce.

Kanban (Inter-Process, Intra-Process, Parts Withdrawal, Signal, Supplier, Temporary, Delivery-Cycle)

Full description

Kanban is a Japanese term that translates to “signboard” or “billboard” and is used as a method for managing work and inventory. It’s a visual system used to signal when more products or services are needed, often used in production processes where one-piece flow isn’t possible.

Several types of Kanban exist, each serving a different purpose within the overall process. For example, Inter-Process Kanban triggers the movement of parts between processes, while Intra-Process Kanban initiates specific jobs within a larger process. There are also signal Kanbans, supplier Kanbans, and temporary Kanbans, each serving unique roles within the production and supply chain. The Kanban Cycle refers to the agreed delivery cycle indicating the frequency of deliveries and number of cycles required for parts delivery after a Kanban is issued.

KPIs (Key Performance Indicators)

Full description

A Key Performance Indicator, or KPI, is a measurable value that demonstrates how effectively a company or individual is achieving key business objectives. It’s a tool used to track and monitor progress towards specific goals, providing a clear snapshot of performance in various aspects of the business. KPIs can be used across different levels of an organization, aiding in decision-making and helping to focus attention on what matters most.

Lime Control

Full description

Line Control is a management strategy inspired by the Theory of Constraints, used to automatically manage machines on production lines. The goal of Line Control is to maximize throughput—the rate at which a system achieves its desired outputs—by focusing on the most restrictive element in the system (the constraint). This technique ensures that all parts of the production line work in harmony, thereby increasing overall efficiency and productivity.

Mixed Load Conveyance

Full description

Mixed Load Conveyance refers to the practice of loading a transport vehicle with various types of parts in a single trip. This method boosts delivery frequency without compromising conveyance efficiency, meaning it doesn’t increase the total number of deliveries needed. The advantages of Mixed Load Conveyance include reduced inventory at each process stage and greater flexibility in adjusting delivery schedules to accommodate production changes.

Mizu-Sumashi (Fixed Course Pick Up)

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Mizu-Sumashi, also known as “Water Spider”, is a system where a delivery worker follows a predetermined route within a factory to gather and transport parts to the production line. Coined by Taiichi Ohno, this method ensures efficient assembly by having a dedicated person move through the plant, much like a water spider skims across water, collecting necessary components for production.

Monozukuri

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Monozukuri is a Japanese concept that combines the passion for creating superior products with the skillset to continually enhance production systems and processes. It embodies both a commitment to excellence in product creation and a dedication to ongoing improvement in manufacturing methods.

Mu Jun

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Mu Jun is a principle from Kaizen philosophy that encourages proactive action in continuous improvement activities. As stated by Taiichi Ohno, it emphasizes the importance of first trying out ideas and then reflecting on them, suggesting that in Kaizen, taking action often holds more value than overthinking or theorizing.

Muda (Waste)

Full description

Muda, a Japanese term meaning “waste”, refers to any aspect of a process that consumes resources (like time, space, or materials) without adding value to the product or service being created for the customer. Waste can manifest in eight different types: overproduction, idle time, unnecessary transportation, inefficient processes, excess inventory, unnecessary motions, production of defective goods, and dysfunctional behaviors. These forms of waste do not contribute to the end product or service and only serve to increase costs, hence they are targeted for elimination in lean manufacturing or service delivery processes.

Mura

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Mura, a Japanese term meaning “unevenness”, refers to inconsistencies or fluctuations in a production process or schedule. This could be variations in the volume of parts produced, or for workers, it could mean workloads that deviate from the standard. Mura is a form of waste that lean manufacturing seeks to reduce for a more efficient and consistent production process.

Muri

Full description

Muri, a Japanese term meaning “unreasonableness”, refers to undue stress or burden placed on workers or machinery in a workplace. For workers, it could mean excessive mental or physical demands, while for machinery, it implies pushing equipment beyond its normal capabilities. Both instances of Muri can lead to inefficiency and are therefore avoided in lean manufacturing practices.

Nemawashi

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Nemawashi is a Japanese term referring to the process of gaining consensus or support for a proposed change or project by involving all relevant parties in early discussions. This preliminary work ensures everyone’s input and information is considered, fostering cooperation and smooth implementation of the proposal or change.

Overall Equipment Effectiveness (OEE)

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Overall Equipment Effectiveness (OEE) is a measure used to identify the efficiency of a manufacturing process by tracking potential productivity loss. It focuses on three key areas: Availability, which looks at downtime or periods when the machinery isn’t working; Performance, examining instances of slow cycles or less-than-optimal operation; and Quality, assessing the rate of rejects or substandard products. In simple terms, OEE helps manufacturers understand how well their equipment is being utilized.

PDCA (Plan, Do, Check, Act)

Full description

A continuous improvement method used in business. It starts with “Plan,” where a strategy is developed and outcomes are anticipated, followed by “Do,” where the plan is executed. “Check” involves evaluating whether the expected results were achieved, and “Act” is a review phase, where lessons are learned and the process starts over to drive further improvements.

Poka-Yoke (Error-Proofing)

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Poka-Yoke, also known as Baka-Yoke, is a Japanese concept that translates to “mistake-proofing.” It’s a strategy used in manufacturing and administrative processes to prevent errors by designing systems that inherently avoid mistakes. This could involve creating uniquely shaped fixtures that won’t accept improperly loaded parts or using different colors for credit and debit memos in administration. In essence, Poka-Yoke encourages thoughtful system design to anticipate possible errors and incorporate fail-safe measures.

Root Cause Analysis

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Root Cause Analysis is a strategy used to identify and address the fundamental issue that leads to a problem, rather than just treating the visible symptoms. It often involves asking “why” multiple times, typically five, to dig deeper into the problem. Each “why” brings you closer to the root cause, allowing for more effective solutions that prevent the problem from recurring.

Single Minute Exchange of Die (SMED)

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A technique that aims to cut down the setup or changeover time in a manufacturing process to under 10 minutes. It involves strategies like shifting setup tasks to be done while the process is still running, simplifying internal setup—for instance, swapping bolts for knobs and levers—eliminating unnecessary operations, and establishing standardized work instructions. This method increases efficiency by reducing downtime between different production runs.

Six Big Losses

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The Six Big Losses refer to the most common areas where productivity can decrease in a manufacturing process. These include breakdowns of machinery, time spent on setup and adjustments, minor stops in production, operating at reduced speed, rejects during startup, and rejects during regular production. Identifying and addressing these six areas can significantly improve efficiency and productivity in manufacturing.

SMART Goals

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SMART Goals are a goal-setting strategy that ensures your goals are clear and reachable. Each goal needs to be Specific (clearly defined), Measurable (able to be tracked), Attainable (realistic and achievable), Relevant (aligned with broader objectives), and Time-Specific (having a set deadline for completion). This approach increases the likelihood of achieving your goals by providing clear direction and a method for tracking progress.

Standardized Work

Full description

Standardized Work refers to the process of documenting and applying best practices for each task in a manufacturing process, including the time it takes to complete each one. This isn’t a static document; it’s a “living” guide that can and should be updated and modified as methods improve and evolve, ensuring that the manufacturing process remains efficient and effective.

Takt Time

Full description

Takt Time is a measure used in manufacturing to match the pace of production with customer demand. For example, if the Takt Time is 34 seconds, it means a product needs to be produced every 34 seconds to meet demand. It’s calculated by dividing the total planned production time by the expected demand from customers.

Total Productive Maintenance (TPM)

Full description

Total Productive Maintenance (TPM) is an all-encompassing approach to keeping equipment in top working condition, primarily through proactive and preventative maintenance measures. Instead of separating maintenance and production teams, TPM encourages operators to participate actively in maintaining their own equipment, thus boosting operational efficiency and minimizing downtime. It’s a strategy that emphasizes teamwork to maximize the lifespan and effectiveness of equipment.

Toyota Production System (TPS)

Full description

A method of manufacturing that Toyota Motor Corporation in Japan created and refined over many years. Central to TPS is the goal of completely eradicating waste from the manufacturing process. This strategy served as the foundation for what we now know as lean manufacturing, a widely adopted approach to increase efficiency and reduce waste.

Value Stream Mapping

Full description

Value Stream Mapping is a visual tool that illustrates the process of production from start to finish. It presents both the present state and potential future state of the processes, making it easier to identify areas that can be improved. Essentially, it’s like a roadmap that helps businesses find ways to become more efficient and productive.

Visual Factory

Concept where visual cues, such as signs, indicators, and displays, are used across a manufacturing plant to enhance the communication of information. These visual tools make it easier for workers to understand processes, track production status, and identify any issues, thereby improving efficiency and productivity in the factory.

Yokoten

Full description

Yokoten is a practice where information about incidents or improvements made in one part of a plant is shared across the entire plant and with other affiliated companies. For instance, if an injury happens at a specific location, the full details are spread throughout the plant. Then, supervisors examine their own areas to identify if similar risks exist and use the shared countermeasures to prevent potential injuries, enhancing overall safety and efficiency.

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