“B” Entries From Our Lean Glossary, Part of The Continuous Improvement Companion
The concept of an order backlog is pretty simple. It is the queue of orders that are waiting to be fulfilled. This queue occurs when customer demand exceeds the ability to immediately supply items to the customer. Backlogs tend to be dynamic. That simply means that they grow and shrink Read more…
In good Lean operations, blame is never the goal of problem-solving efforts. It is sometimes a byproduct, as, on occasion, the facts lead you to a specific person. But even then, in most cases, their shortcomings are the result of either a poor process or poor training. True people problems Read more…
Breakthrough improvements are major changes in processes that yield business-altering results. Continuous improvement, on the other hand, is the relentless attack on waste that makes companies get better at a steady pace. A strong, improvement-oriented company will have both breakthrough improvements and a continuous improvement culture as part of its Read more…
A bimodal distribution is a distribution that has two separate and distinct peaks in it. A distribution of a data set describes the relative frequency of the occurrence of outcomes within each defined set of ranges. The term “bimodal” comes from the prefix “bi” meaning two. “Modal” comes from the Read more…
Baselines are essential to improvements. They are the starting point for a process to be changed or are reference points for ongoing processes. Baselines can be used in two main ways. First, they can be used to establish current conditions prior to a project. This is essential to knowing if Read more…
A baseline metric is a snapshot of the state of a process or operation prior to making improvements. In effect, it is the “before” measures of a process. It is important to know baseline metrics prior to making any changes. Without a clear understanding of your initial capabilities, you’ll be Read more…
Beta risk, statistically speaking, is the risk associated with accepting a null hypothesis when it is actually false. In other words, beta risk is a false negative in which a product is said to be free of defects when it actually has one. Beta risk is also known as a Read more…
A production buffer is a type of inventory allocated specifically as a hedge against variation. The root cause of the unpredictability may be due to the normal variation of a process, or any of a variety of types of special cause variation. The latter causes include things like supplier unreliability, Read more…
The break-even point is the point (number of units sold) where the company can “break-even” and start earning profit. When a product or service is sold to a customer, the company incurs both fixed and variable costs. Fixed costs are the same regardless of the number of units sold. Variable Read more…
Backflushing is an accounting method that applies costs to production but can also be used to manage inventory. It is also known as “postproduction issuing.” When an operation is completed, the appropriate materials and other resources are issued against the production order. The inventory levels in the system of all Read more…
“Bowling chart” is the nickname given to the tracking sheets used to monitor either KPIs or policy deployment objectives. Its name comes from the similarity to a bowling scorecard. You may also hear the term “bowler” used to describe these forms. The form compares the targets (plan) to actual performance Read more…
Most continuous improvement efforts, either directly or indirectly, are centered on improving flow. Flow is the condition where work moves from one process to the next without stopping. Improving flow means taking out all the efficiencies that keep that continuous movement smooth and direct. When flow doesn’t exist, it is Read more…