Lean Terms from the Continuous Improvement Companion
Using an “action date” is a proactive approach to managing your workload. Whenever a task is unfinished, there is a next step. Frequently, that step is passively managed. Usually this means waiting for something to happen to allow work to continue. It could be waiting for a part to arrive, Read more…
A company has to know whether what they are doing makes money, right? The people who know how to figure this out are the accountants. In the US, accounting is done according to Generally Accepted Accounting Principles (GAAP). This provides a standard method of accounting so that when one company Read more…
An ad hoc query is simply a one-time request for information from a database. (Ad hoc is Latin for “for this purpose”.) Many database reports are standardized and are used repeatedly. They cover the vast majority of typical operations management needs. Ad hoc queries, though, play a big role in Read more…
One of the more unusually named Lean tools, the affinity diagram is not really a diagram at all. It is more of a sorting and grouping process to organize ideas into manageable chunks. The process is simple: Collect ideas, whether through brainstorming, VOC (voice of the customer) or some other Read more…
The A3 process is a methodology for getting to the root cause of a problem and addressing it in a way that will permanently eliminate it. Following the A3 process entails a large amount of back-and-forth between managers and their teams. For that reason, the A3 process is well-matched to Read more…
A3 problem solving is a structured approach to resolving problems. It was popularized by Toyota but is now in widespread use. A3 problem solving is hard to replicate because it requires discipline to use it and persistence to go through the iterative steps of coming up with a resolution. It Read more…
A3 management is a structured way of running a business. A3 management focuses on using a scientific approach to problem solving that creates a learning organization. The key to A3 management is that there must be management problem solving processes in place. This means that there is a specific way Read more…
The A3 report is the communication medium of A3 management. The A3 report takes its name from the size of the paper, “A3” or 11 x 17 inch, that it is generally written or printed on. The large size of the A3 report lets users see, at a glance, a Read more…
Automatic machine cycle time, sometimes referred to as automatic machine time, is the time a machine spends processing a single part without an operator’s interaction. Automatic machine cycle time is critical to the concept of jidoka, or separating people from machines. The productivity benefits of automation are obvious. An operator Read more…
An andon light is one of the most common forms of visual management that is used in Lean. It is a staple in the bag of Lean tools because it is highly effective at keeping operations running smoothly. In Lean, the term “andon” most often refers to a signaling system Read more…
The definition of Activity-Based Costing: a means of attempting to accurately apply costs of running a business to a specific product or service. It entails identifying the “cost drivers”, or the things that drive the consumption of shared resources and using them to apply a logical proportion of overhead costs Read more…
Authority is a formally granted power to make decisions. Authority is generally bestowed upon a position rather than a person. It is different than accountability. For example, a police officer has legal authority while he holds that job. His authority ends when he retires. Authority differs from leadership in that Read more…