APPENDIX
D
Definitions
5S
5S (Sort, Set in Order, Shine, Standardize, and Sustain) is a methodology for organizing, cleaning, developing, and sustaining a productive work environment. Improved ownership of work space, improved productivity, and improved maintenance are some of the benefits of a 5S program.
6S
6S takes the 5S methodology and adds safety to it making six words that start with S.
Adaptability Measurement
Adaptability measurement is the adaptability of a process to handle future, changing, customer expectation, and today’s individual special customer requirements. It is managing the process to meet today’s special needs and future requirements.
Benchmark
A benchmark is a specific number or point against which another measurement or point is compared.
Benchmarking
Benchmarking is a systematic way to identify, understand, and creatively evolve superior products, services, designs, equipment, processes, and practices to improve an organization’s real performance by studying other organizations’ items and adapting them to or adopting them into the organization.
Change
Change is a condition that disrupts the current state. Change activities disrupt the current state.
Effectiveness Measurement
Effectiveness measurement is the extent to which the output of a process or subprocess meets the needs and expectations of its customers. Quality is often thought of as a synonym for effectiveness, but effectiveness is a lot more.
Efficiency Measurement
Efficiency measurement is the extent to which a resource is minimized and waste is eliminated in the pursuit of effectiveness. Productivity is a measurement of efficiency.
Error Proofing (Poka Yoke)
Error proofing is a structured approach to ensure quality and an error-free manufacturing environment. Error proofing assures that defects will never be passed to the next operation.
Executive Improvement Team (EIT)
An Executive Improvement Team is a group of top managers that oversee the improvement efforts for the organization.
Future Reality Diagram
A future reality diagram is a sufficiency-based logic structure designed to reveal how changes to the status quo would affect reality—specifically to produce desired effects.
Future State
Future state is the point at which change initiatives are in place and integrated with the behavior patterns that are required by the change. The change goals and objectives have been achieved.
High-Impact Team (HIT)
The high impact team approach is a breakthrough strategy that focuses a group’s attention on the processes that are going on within a specific area. It realigns the work area to minimize the movement of output between activities, resulting in decreasing stock and shorter cycle time. A typical HIT activity will last for two weeks, and between 70 and 80 percent of the future-state solution will be implemented within the two-week time period.
Inventory Turnover Rate
Inventory turnover rate is the number of times an inventory cycles or turns over during the year. A frequently used method to compute inventory turnover is to divide the average inventory level into annual cost of sales.
Just-in-Time (JIT)
Just-in-Time is a philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity. It encompasses the successful execution of all manufacturing activities required to produce a final product.
Kaizen Blitz
Kaizen Blitz is the Japanese term for continuing improvement involving everyone—managers and workers. In manufacturing Kaizen relates to finding and eliminating waste in machinery, labor, or production methods.
Kanban
Kanban is a simple parts-movement system that depends on cards and boxes or containers to take parts from one workstation to another on a production line. The essence of the Kanban concept is that a supplier or the warehouse should only deliver components to the production line as and when they are needed, so that there is no storage in the production area.
Monte Carlo
Monte Carlo methods (or Monte Carlo experiments) are a class of computational algorithms that rely on repeated random sampling to compute their results. Monte Carlo methods are often used in simulating physical and mathematical systems. These methods are most suited to calculation by a computer. Monte Carlo methods are especially useful for simulating processes that have a lot of variation occurring randomly at many different parts of the process over time. They are used to model phenomena with significant uncertainty in inputs to the process and within the process that can result in changes in the process’ performance and business risk. (from Wikipedia, 2011)
One-Piece Flow
One-piece flow, or continuous flow processing, is a concept that means that items are processed and moved directly from one processing step to the next, one piece at a time. One-piece flow helps to maximize utilization of resources, shorten lead times, identify problems, and improve communication between operations.
Organizational Change Management (OCM)
Organizational Change Management is a comprehensive set of structured procedures for the decision-making, planning, execution, and evaluation phases of the change process.
Overall Equipment Effectiveness (OEE)
Overall equipment effectiveness measures the availability, performance efficiency, and quality rate of equipment. It is especially important to calculate OEE for the constrained operations.
Present State
Present state, current state, as-is state, and status quo all refer to a state in which individual expectations are being fulfilled. It’s a predictable state—the normal routine.
Problem
A problem, according to Webster’s Collegiate Dictionary (11th edition), can be defined as a question proposed for a solution or as a state of difficulty that needs to be resolved. These two definitions suggest two important characteristics:
• Having a problem is by nature a state of affairs that is plagued by some difficulty or undesired condition.
• A problem presents a challenge that needs to be solved in order to establish more desirable conditions.
Process
A process is any activity or series of activities that takes an input, adds value to it, and provides an output to a customer.
Process Flow Animation
Process flow animation is a process model that pictorially shows the movement of transactions within the process and how variability and dynamics affect process performance.
Process Improvement Team (PIT)
A Process Improvement Team is a group of people who will be responsible to create a redesign process over a 2- to 3-month period. The team is usually made up of 6 to 10 people who represent the key departments involved in the process being redesigned and some key technical experts. The members of the PIT will typically devote about 50 percent of their time to redesigning the assigned process.
Process Owner
The process owner is the individual(s) responsible for process design and performance. The process owner is also responsible for sustaining the gains and identifying future improvement opportunities in the process.
Process Variation Analysis
Process variation analysis is a way of combining the variation that occurs at each task or activity in a process so that a realistic prediction of the total variation for the entire process can be made.
Quick Changeover (Single-Minute Exchange of Dies)
Quick changeover is a technique to analyze and reduce the resources needed for equipment setup, including exchange of tools and dies. Single-minute exchange of dies (SMED) is an approach to reduce output and quality losses due to changeovers.
Standard Rate of Work
Standard rate of work is the length of time that should be required to set up a given machine or operation and run one part, assembly, batch, or end product through that operation. This time is used in determining machine requirements and labor requirements.
Takt Time
Takt time is the time required between the completion of successive units of the end product. Takt time is used to pace lines in the production environments.
Theory of Constraints (TOC)
The theory of constraints is a management philosophy that can be viewed as three separate but interrelated areas—logistics, performance measurement, and logical thinking. TOC focuses the organization’s scarce resources on improving the performance of the true constraint and therefore on improving the bottom line of the organization.
Tollgates
Tollgates are process checkpoints where deliverables are reviewed and measured and readiness to move forward is addressed.
Total Productive Maintenance (TPM)
Total Productive Maintenance is a maintenance program concept that brings maintenance into focus in order to minimize downtimes and maximize equipment usage. The goal of TPM is to avoid emergency repairs and keep unscheduled maintenance to a minimum.
Transition State
A transition state is the point in the change process at which people break away from the status quo. They no longer behave as they’ve done in the past, and yet they still haven’t thoroughly established the “new way” of operating. The transition state begins when the solutions disrupt individuals’ expectations and they must start to change the way they work.
Transition Tree
A transition tree is a cause-and-effect logic tree designed to provide step-by-step progress from initiation to completion of a course of action or change. It is an implementation tool.
Value Proposition
Value proposition is an analysis and quantified review of the benefits, costs, and value that an organization can deliver to customers and other constituent groups within and outside the organization. It is also a positioning of value, where value = benefits − cost (cost includes risk) (from Wikipedia, 2011).
Value Stream Costing
Value stream costing methodology simplifies the accounting process to give everyone real information in a basic, understandable format. By isolating all fixed costs along with direct labor, we can easily apply manufacturing resources as a value per square footage utilized by a particular cell or value stream. This methodology of factoring gives a true picture of cellular consumption to value-added throughput for each value stream companywide. Now you can easily focus improvement Kaizen events where actual problems exist for faster calculated benefits and sustainability.
Value Stream Mapping
Value stream mapping is a graphical tool that helps you to see and understand the flow of the material and information as a product makes its way through the value stream. It ties together Lean concepts and techniques.
Visual Management
Visual management is a set of techniques that makes operation standards visible so that workers can follow them more easily. These techniques expose waste so that it can be prevented and eliminated.
Work Flow Diagram
A work flow diagram shows the movement of material, identifying areas of waste. The diagram aids teams in planning future improvements, such as one-piece flow and work cells.
Work Flow Monitoring
Work flow monitoring is an online computer program that is used to track individual transactions as they move through the process to minimize process variation.