Policy Deployment is the (usually) annual process of reviewing the strategic goals of an organization and aligning the company’s resources towards meeting those goals. Hoshin Kanri is the Japanese term that means roughly the same. The literal translation, like many foreign words, is open to interpretation, but many versions seem Read more…
An unlinked production environment is like an accordion. Some processes move faster than the average and some operate more slowly. As a result, parts move through the system at varying speeds, only to end up in piles of inventory scattered along the value stream. Even with a takt time in Read more…
At the heart of standardization is predictability. Standardization provides a predictable pace, predictable quality, and a predictable lead time. This predictability allows managers to make better plans. It allows marketers to make more accurate promises. And it allows employees to have a steady, reasonable pace throughout the day. Core Lean Read more…
A push system is one in which an upstream process sends work to a downstream process prior to the downstream process requesting it. Batch and queue systems in which large lots are sent to the next workstation to wait in line are push systems. Generally Lean systems attempt to move Read more…
“Point of use” is simply the practice of storing any inventory you have at the point where it will be used. This is in contrast to inventory that is stored in a warehouse, or at some other secondary location. In those cases, it can be difficult to see if there Read more…
Lean tools are relatively simple to implement. Setting up a management system is significantly more complicated, but it is still not the most challenging part of creating a robust continuous improvement culture. That title goes to understanding how improvement and change affects people. Lean psychology is hands-down the hardest aspect Read more…
The PDCA cycle is a structured problem-solving approach. It is also known as the Deming cycle, after Dr. W. Edwards Deming, the man credited with popularizing the Plan-Do-Check-Act cycle. The 4 Steps of the PDCA Cycle include: The plan step of the PDCA cycle entails setting objectives and gathering the Read more…
A pull system (or pull production) is one in which items are only made, transferred, shifted, withdrawn, etc., when there is demand from a downstream customer. This sharply contrasts from a push system in which the downstream actions have no impact on what the upstream process is producing. Pull systems Read more…
Precision is the state of having low variation. It is often incorrectly used synonymously with accuracy. Accuracy actually means being centered on the target, but can have a very wide spread. Precision is often much harder to achieve than accuracy. That is because variation can be much trickier to adjust Read more…
Processes are the bread and butter of continuous improvement. They are the series of linked actions (or steps, tasks, activities, operations, etc.) performed to reach a specific outcome. Processes take randomness and bring it to order. Imagine what would happen if nobody followed a process when driving. No process for Read more…
Profit is the pile of money that is left over after all the bills are paid and the costs are tallied. There are many different types of profit for accounting purposes (net profit, gross profit, EBITDA). The ultimate goal of any company is to make a profit. It is not Read more…