In statistical terms, the law of large numbers is a theorem that postulates that as the size of the sample of a random variable increases, its average will approach the theoretical average. In layman’s terms, the law of large numbers simply says that over time, the more times you roll Read more…
In accounting, last-in, first-out (LIFO) is a method of recording inventory. It is used to manage earnings in inflationary times. A last-in, first-out inventory system records the most recent price of materials as the cost, thereby making earnings reflect current prices. As a result, the older items, purchased earlier when Read more…
Accounting is a necessary part of any business. It is critical to know if the actions a company is taking are making it profitable, or if they are causing the business to bleed cash. Accounting in the best of situations has its challenges. But the advent of Lean has made Read more…
For many people, the term “Lean”, immediately brings to mind Lean manufacturing and images of the shop floor. While it is true that the origin of Lean certainly stems from these roots, continuous improvement principles have taken hold in the office, and are spreading at breakneck speed. The Lean office Read more…
Lean tools are the individual components of a Lean system. The most common Lean tools are: 5S Countermeasures Jidoka Kaizen Kanban Pareto (80/20) charts Process flow charts Poka yoke Pull /Just In Time Manufacturing Single Minute Exchange of Die (SMED) Standard Work Total Productive Maintenance Value stream maps Visual controls Read more…
In its original definition, Lean is a form of continuous improvement that springs from the Toyota Production System (TPS). The term “Lean” was popularized in the landmark book, Lean Thinking. It focuses on improving flow, with a heavy emphasis on reducing inventory. Nowadays, though, there is also a broader definition. Read more…
Level loading, also known as heijunka, is the practice of using demand estimates to establish an average production level. By smoothing the demand, Lean companies can standardize their processes better, and can match their capacity to the current needs of the customer. Level loading on a mixed-model production line balances Read more…
A line shift is a synchronized movement of all the production work on an assembly line. It can be done in several ways. Manually, in which each person pushes their work to the next station on a signal. On an indexed moving line, in which the line moves and then Read more…
A Lean implementation is the initial period of time when a company or organization is putting Lean in place. While most people look at it as a discrete event, in truth, there is often a long period where different parts of an organization are rolling out Lean. So, different departments Read more…
Lean Six Sigma is the combination of Lean and Six Sigma into a single business philosophy. Lean is commonly thought of as a way to improve process speed. Six Sigma is primarily considered a quality tool. In truth, though, the two both share a lot of the same tools, and Read more…
Lean manufacturing is the business philosophy of relentlessly eliminating waste to improve flow in a production environment. It has evolved into something far more widespread, and now Lean encompasses offices, construction, service, hospitals, and even government. While many people trace the roots of Lean manufacturing back to the Toyota Production Read more…
In short, leadership is the act of one person uniting and motivating others toward a common goal. Leadership is part natural (as in “natural-born”), but is greatly refined through training, practice, and constant learning. Confidence in oneself is a key component of leadership. While leadership is generally considered a positive Read more…