Lean Terms from the Continuous Improvement Companion
Automated guided vehicles (sometimes called Automatic Guided Vehicles) are driverless vehicles that primarily perform transportation functions. In most cases, they support materials groups in distribution of raw materials and in movement of finished goods. These vehicles may either operate similar to a pallet jack, and carry the load, or as Read more…
Appreciation is the increase in value of an item over time. In most cases, physical things lose value over time. Clothing, electronic equipment, and most automobiles lose value from the moment they leave the factory. Some items, though, rise in value. One only has to look at an antique shop Read more…
In the generic definition, annual objectives are simply the company’s goals for a calendar year. In most cases these goals should target a degree of improvement. In a Lean organization, however, there’s a much more specific definition for annual objectives. It is a key component of policy deployment. Strategies are Read more…
One of the imperatives of any continuous improvement program is a commitment by the organization to protect jobs. If people don’t trust the company, they will be reluctant to do anything that will increase productivity. Obviously, if fewer people can do more, then there is a need for fewer people. Read more…
All data is not created equally. There are many different categories of ways to describe things. Interestingly, there seems to be little consensus on what the terminology means. The term “attribute data”, if searched for on the web, yields a variety of definitions. Further confusing the issue, some of the Read more…
What is A3 Thinking? A3 thinking is a philosophical approach to problem solving that centers on a well-communicated team approach to using the PDCA cycle. The tool used to apply this way of thinking is known as the A3 report. Download our Free A3 Report Template A3 Thinking Background Whether Read more…
An acceptable quality level (AQL) is the percentage of defects allowed for a lot before it is rejected by a customer. Due to the size of most lots and the costs of 100% inspections, the quality of an incoming lot is frequently assessed with a sampling plan. The AQL will Read more…
Automated Storage and Retrieval Systems are systems linked to a computerized control with an automated method of retrieving items from a designated storage location. The principle is that the machine rather than a person does the searching and retrieving. Most AS/RS units make significant use of vertical space, leading to Read more…
In accounting terms, an asset is an economic resource owned by a company or individual. Assets hold value because of the future benefit they can bring. An asset may fall into two categories—tangible and intangible. Tangible assets are what you would expect. Stuff you can touch—buildings, vehicles, machines, etc. Tangible Read more…
There are many different styles of management. One that works well in a Lean leader’s bag of tricks is abnormality management. In a nutshell, processes and systems are refined to highlight abnormalities. When abnormal conditions are highlighted, leaders and their teams can take action to return the situation to the Read more…
People crave appreciation for their performance. They put a significant amount of effort into their jobs, and most people closely associate their personal value with how they feel they are perceived at work. There are many ways leaders show that they appreciate their team. In some cases, they display their Read more…
This A3 template can be used to create an A3 report, the communication medium for A3 problem solving. The A3 report takes its name from the “A3” size of paper that the report is generally written or printed on. (A3 paper is an international designation similar to the ledger size Read more…