Lean Dictionary

Lean Tool What is it? How Does it Help?

Organize the work area: Sort (eliminate that which is not needed)
Set In Order (organize remaining items) Shine (clean and inspect Eliminates waste that results from a poorly organized
5S
work area) Standardize (write standards for above)Sustain work area (e.g. wasting time looking for a tool).
(regularly apply the standards)
Visual feedback system for the plant floor that indicates production Acts as a real-time communication tool for the plant floor
Andon status, alerts when assistance is needed, and empowers operators that brings immediate attention to problems as they occur
to stop the production process. – so they can be instantly addressed.
Identify which part of the manufacturing process limits the overall
Bottleneck Improves throughput by strengthening the weakest link in
throughput and improve the performance of that part of the
Analysis the manufacturing process.
process.
Manufacturing where work-in-process smoothly flows through
Eliminates many forms of waste (e.g. inventory, waiting
Continuous Flow production with minimal (or no) buffers between steps of the
time, and transport).
manufacturing process.
Improvement initiative that involves multiple subject matter experts
CI (Continuous Gathers process experts to drive positive cross-functional
of a process and cadenced team meetings to drive improvements.
Improvement) or departmental change (depending on the scope of the
The result is a "step change" in culture due to an improved
Project project).
processes and standards that define the way we work.
“First In First Out” – a method where the first part to enter a Helps ensure that stored parts do not become obsolete
FIFO
process or storage location is the first part to exit. and prevents the process from overproduction.
Promotes a deep and thorough understanding of real-
A management practice for grasping the current situation through
GEMBA Walk world manufacturing issues – by first-hand observation
direct observation and inquiry before taking action.
and by talking with plant floor employees.
A form of production scheduling that purposely manufactures in Reduces lead times (since each product or variant is
Heijunka (Level
much smaller batches by sequencing (mixing) product variants manufactured more frequently) and inventory (since
Scheduling)
within the same process. batches are smaller).
Ensures that progress towards strategic goals is
Hoshin Kanri Align the goals of the company (Strategy), with the plans of middle
consistent and thorough – eliminating the waste that
(Policy management (Tactics) and the work performed on the plant floor
comes from poor communication and inconsistent
Deployment) (Action).
direction.
A visual system for managing work as it moves through a process.
In Process Kanban Helps limit WIP. Product can be ‘pulled’ to the customer
An In Process Kanban activates material movement, creating a pull
(IPK) demand.
system for material flow.
Design equipment to partially automate the manufacturing process After Jidoka, workers can frequently monitor multiple
Jidoka
(partial automation is typically much less expensive than full stations (reducing labor costs) and many quality issues
(Autonomation)
automation) and to automatically stop when defects are detected. can be detected immediately (improving quality).
Pull parts through production based on customer demand instead
of pushing parts through production based on projected demand. Highly effective in reducing inventory levels. Improves
Just-In-Time (JIT)
Relies on many lean tools, such as Continuous Flow, Heijunka, cash flow and reduces space requirements.
Kanban, Standardized Work and Takt Time.
Kaizen Combines the collective talents of a company to create an
A strategy where employees work together proactively to achieve
(Continuous engine for continually eliminating waste from
regular, incremental improvements in the manufacturing process.
Improvement) manufacturing processes.
A method of regulating the flow of goods both within the factory Eliminates waste from inventory and overproduction. Can
Kanban (Pull and with outside suppliers and customers. Based on automatic eliminate the need for physical inventories (instead relying
System) replenishment through signal cards that indicate when more goods on signal cards to indicate when more goods need to be
are needed. ordered).
The best manufacturing KPIs: Are aligned with top-level
Metrics designed to track and encourage progress towards critical
KPI (Key strategic goals (thus helping to achieve those goals), Are
goals of the organization. Strongly promoted KPIs can be
Performance effective at exposing and quantifying waste (OEE is a
extremely powerful drivers of behavior – so it is important to
Indicator) good example), Are readily influenced by plant floor
carefully select KPIs that will drive desired behavior.
employees (so they can drive results)
Individual trained through the Generac Lean Academy on basic
Lean Bronze Trained problem solvers to contribute to departmental
problem solving skills & lean concepts in order to increase their
Contributor improvements through CI Projects and Kaizen events.
contribution while participating in CI projects and Kaizen events.

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 Lean Dictionary
Lean Tool What is it? How Does it Help?
Individual trained and certified through the Generac Lean Academy Skilled problem solvers trained in lean techniques to lead
Lean Silver
on advanced problem solving tools and lean techniques to lead CI departmental and cross-functional changes through CI
Practitioner
projects, cost reductions projects and facilitate Kaizen events. projects, cost reduction projects, and Kaizen events.
Individual trained and certified through the Generac Lean Academy Skilled facilitators to lead CI projects, strategy
Lean Gold on transformational problem solving tools and lean techniques to development and Kaizen events to drive departmental
Facilitator lead teams through CI projects, strategy development and Kaizen and cross-functional improvements throughout the
events. organization.
Anything in the manufacturing process that does not add value Eliminating Muda (waste) is the primary focus of lean
Muda (Waste)
from the customer's perspective. manufacturing.
By reducing and eliminating non value-added steps within
work processes, we can ensure that we continue to
Business Non-Value Add: Activities that must be performed for manufacture and deliver high-quality products and
legal or regulatory requirements (e.g. pay roll). services to customers. Ultimately, this will lead to higher
Non-Value Add
Waste Non-Value Add: Activities that the customer would be levels of customer satisfaction and continued positive
unwilling to pay for. customer experiences from those that are receiving the
products and services and for those that are receiving the
outputs of the internal work processes as inputs to theirs.
Provides a benchmark/baseline and a means to track
Framework for measuring productivity loss for a given
Overall Equipment progress in eliminating waste from a manufacturing
manufacturing process. Three categories of loss are tracked:
Effectiveness process. 100% OEE means perfect production
Availability (e.g. down time), Performance (e.g. slow cycles),
(OEE) (manufacturing only good parts, as fast as possible, with
Quality (e.g. rejects)
no down time).
An iterative methodology for implementing improvements: Plan
Applies a scientific approach to making improvements:
PDCA (Plan, Do, (establish plan and expected results), Do (implement plan), Check
Plan (develop a hypothesis)Do (run experiment)Check
Check, Act) (verify expected results achieved), Act (review and assess; do it
(evaluate results)Act (refine your experiment; try again)
again)
It is difficult (and expensive) to find all defects through
Poka-Yoke (Error Design error detection and prevention into production processes
inspection, and correcting defects typically gets
Proofing) with the goal of achieving zero defects.
significantly more expensive at each stage of production.
Labeling unneeded items for removal from a product or office area Provides a visual method to quickly classify items to be
Red Tagging
following a 5S exercise. evaluated or removed.
A problem solving methodology that focuses on resolving the
underlying problem instead of applying quick fixes that only treat Helps to ensure that a problem is truly eliminated by
Root Cause
immediate symptoms of the problem. A common approach is to applying corrective action to the “root cause” of the
Analysis
ask why five times – each time moving a step closer to discovering problem.
the true underlying problem.
A 2-5 day event involving process experts intended to understand
RPI (Rapid Process Improves a process within the organization by soliciting
the current state of the process and develop an action plan to
Improvement) buy-in and participation of representatives of all areas
achieve the future state step change. RPI events are facilitated by
Event related to the process.
a Lean Gold Facilitator (certified by the Generac Lean Academy)
Reduce setup (changeover) time to less than 10 minutes.
Single Minute Techniques include: Convert setup steps to be external (performed
Enables manufacturing in smaller lots, reduces inventory,
Exchange of Die while the process is running) Simplify internal setup (e.g. replace
and improves customer responsiveness.
(SMED) bolts with knobs and levers) Eliminate non-essential operations.
Create standardized work instructions.
Six categories of productivity loss that are almost universally
Provides a framework for attacking the most common
Six Big Losses experienced in manufacturing: Breakdowns, Setup/Adjustments,
causes of waste in manufacturing.
Small Stops, Reduced Speed, Startup Rejects, Production Rejects
Goals that are: Specific, Measurable, Attainable, Relevant, and
SMART Goals Helps to ensure that goals are effective.
Time-Specific.
Documented procedures that capture best practices (including the
Eliminates waste by consistently applying best practices.
Standardized Work time to complete each task). Must be “living” documentation that is
Forms a baseline for future improvement activities.
easy to change.

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 Lean Dictionary
Lean Tool What is it? How Does it Help?
Provides a simple, consistent and intuitive method of
The pace of production (e.g. manufacturing one piece every 34
pacing production. Is easily extended to provide an
Takt Time seconds) that aligns production with customer demand. Calculated
efficiency goal for the plant floor (Actual Pieces / Target
as Planned Production Time / Customer Demand.
Pieces).
A holistic approach to maintenance that focuses on proactive and Creates a shared responsibility for equipment that
preventative maintenance to maximize the operational time of encourages greater involvement by plant floor workers. In
Total Productive
equipment. TPM blurs the distinction between maintenance and the right environment this can be very effective in
Maintenance (TPM)
production by placing a strong emphasis on empowering operators improving productivity (increasing up time, reducing cycle
to help maintain their equipment. times, and eliminating defects).
Activities that the customer is willing to pay for and that change Focus on minimizing activities which are not creating
Value Add
form, fit, or function. customer value.
A tool used to visually map the flow of production. Shows the
Value Stream Exposes waste in the current processes and provides a
current and future state of processes in a way that highlights
Mapping roadmap for improvement through the future state.
opportunities for improvement.
Visual indicators, displays and controls used throughout Makes the state and condition of manufacturing
Visual Factory
manufacturing plants to improve communication of information. processes easily accessible and very clear – to everyone.
“Work In Progress” The goal is to limit WIP so ‘cash’ is not held up and
The cost of unfinished goods in the manufacturing process therefore can be used to in other areas and gain value. By
WIP
including labor, raw materials, and overhead (e.g. finished goods limiting WIP, it encourages the team to complete work at
awaiting completion). hand first before taking on new work.

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