A 
ANOVA (ANalysis Of VAriance)
A calculation procedure to allocate the amount of variation in a process and determine if it is significant or is caused by random noise. A balanced ANOVA has equal numbers of measurements in each group/column. A stacked ANOVA: each factor has data in one column only and so does the response.
Availability
Proportion of a plant’s time used to manufacture product. Availability% = (Total Plant Hours – Planned and Unplanned Stoppage hours) / Total Plant Hours. (Stoppages include: Breakdowns, planned maintenance, changeovers, no manpower, no materials, no demand and any other measurable downtime. Minor stoppages and processing delays are usually measured as part of ‘Performance’). Total plant hours would typically exclude nights or weekends if these are intentionally unmanned.
B
Balanced Plant
A plant where capacity of all resources are balanced exactly with market demand.
Benchmarking
Structured process to compare operational performance within industry sector or best practise organisations. Benchmarking is used to identify performance gaps of an organisation and to highlight areas of potential improvements.
Best Practise
Any system, process or method which an organisation uses, which provides competitive advantage. Understanding and implementing best practise, or if you prefer, good practice, will help an organisation’s operational performance improve.
Bottleneck
Process which determines the maximum capacity available to an organisation. Improving p e rformance of this process will lead to increases in plant output capability.
C
Cellular Manufacturing
Method of organising manufacturing assets for similar product types to maximise operational efficiency and flexibility.
Change Management
Change Management is a systematic approach to dealing with change, both from the perspective of an organisation and on the individual level.
Changeover Time
Total downtime from end of last good production through until sustainable good production after process change. This time is lost available time.
CMMS
Computerised maintenance management system.
Constraint
Anything that limits a system from achieving higher performance, or throughput. Alternate: That bottleneck which most severely limit the organization's ability to achieve higher performance relative its purpose/goal.
Continuous Improvement
Where an organisation is constantly striving to improve performance through the involvement of its entire workforce.
Control Charts
A development of run charting to include either specification or statistical control limits. A process that is out of control or specification should be addressed to avoid poor quality or waste.
Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) is defined as the overall relationship of the corporation with all of its stakeholders. customers, employees, communities, owners/investors, government, suppliers and competitors are included. Elements of corporate social responsibility are investment in the community, employee relations, creation and maintenance of employment, environmental stewardship and financial performance.
Critical Path
Critical path is the minimum amount of time a process or project should take. Any delays to these activities will lead to a delay in the overall cycle or project time.
Cross Functional Teams
Teams made up of representatives of a variety of departments or areas affected by or who can influence an issue or improvement activity.
Culture
Culture is an integral component of organizations. It comprises not only patterns of interpretation, but also styles of action and work practices.
D
Decoupling Point (DP)
The point in the supply chain which provides a buffer between differing input and output rates.
Design for Manufacture
Method to improve the manufacturability of a product by reducing component parts or operations prior to introduction.
Design of Experiments
Statistical method of reducing the number of trials required to prove the relationships between process inputs and outputs.
Diversity Management
Diversity Management is the process of creating and maintaining a positive environment where the differences of all personnel are recognized, understood, and valued, so that all can reach their full potential and maximize their contributions.
DMAIC (Define, Measure, Analyse, Improve, Control)
The structured approach used in Process Excellence (6- Sigma) to improve operational p e rformance through reducing process variability.
Double-loop Learning
A double-loop learning organisation not only detects and corrects errors but is involved in the questioning and modification of existing norms, procedures, policies, and objectives.
E
EAM
Enterprise Asset Management
Enterprise Resource Planning Systems (ERP)
The definition of enterprise resource planning is, essentially, an integrated software solution used to manage a company’s resources.
Error Proofing (Poke Yoke)
Simple method of ensuring a defect or incorrect process cannot occur.
External set-up
All set-up tasks that can be done while the machine is still running. Examples are collecting tools, the next piece of material, preparing or fixtures. Moving set-up activities from internal to external in order to reduce machine down time is a central activity of set-up reduction and SMED
F
Five C / (Five S)
Five stage process to improve workplace organisation, the steps are Clear out (Seison),
Clean and Check (Sheiri), Configure Seiton), Conformity (Seiketsu)and Custom and Practise(Shitsuke.The Five C is considered to be the cornerstone of
continous impr.
Five Why
A method of questioning to establish root cause of a problem. By asking Why? 5 times the root cause of a problem can be established.
FMEA (Failure Mode Effect Analysis)
Method of ranking potential equipment failure modes based on severity, occurrence and
potential detection.
FMECA (Failure Mode Effect and Criticality Analysis)
Method of ranking potential failure modes of equipment based on Severity, occurrence
and equipment criticality. The ranking system can then be used to determine the
maintenance strategy for plant equipment.
G
GA (Genetic Algorithm) / GP (Genetic Programming)
Programming/algorithmic model based on the ideas and terminology of biological evolution in which a number of possible programs compete and cross breed with others to approach the desired solution to a complex problem in which there are many variables. Qu
Applications:
Artifical intelligence
GANTT Charts
A graphical method of illustrating the time relationship between different steps in a
process or project.
Gemba
Gemba is the Japanese word for Workplace. The basis of the Toyota Production System
(TPS)is that ‘Management begins at the workplace’
Gross Margin
The difference between product sales price and the variable cost of manufacture. Used to calculate the potential benefit of improvement activity.
H
Heijunka
same as Production levelling or smoothing.
Hidden Plant
Unrealised capacity of bottleneck processes, which is highlighted through the use of OEE (Overall Equipment Effectiveness).
Human Resource Management (HRM)
Human Resource Management (HRM) can be described as a set of policies designed to maximise organisational integration, employee commitment, flexibility and quality of work.
I
Internal set-up
Set-up tasks that can only be done when the machine is stopped. Examples are changing the fixture, changing the tools, or making adjustments. After as many of the internal tasks have been externalized as is possible, the remaining internal changeover time is reduced through use of quick-change mechanisms.
ISO
The International Standards Organisation, responsible for ratifying all countries standard agencies (e.g. BSI)
ISO 9000
This is the ISO’s international quality standard. Accreditation to the standard implies that a company or organisation follow standard processes in its business practises.
J
JIT (Just in Time Manufacture)
To manufacture product at the time of need by an organisation’s customer. True JIT manufacture requires the full implementation of Lean principles.
K
Kaizen
Kaizen is the Japanese name for continuous improvement. Kaizen is used to describe team based improvement activities which are used to drive sustained incremental improvements within the workplace.
Kaizen Event
A concentrated effort, typically spanning 3 to 5 days, in which a team plans and implements a major process change or changes to quickly achieve a quantum improvement in performance. Participants generally represent various functions and perspectives, and may include non-plant personnel.
Kanban
The single to a process to start manufacture a given quantity of product. The Kanban method pull product through a manufacturing operation.
Knowledge Management (KM)
Knowledge Management (KM) is an emerging set of principles, processes, organisational structures, and technology applications that help people share and leverage their knowledge to meet their business objectives. KM is the process through which organisations generate value from their intellectual property and knowledge-based assets.
Link:
Knowledge Board – The European Knowledge Community
L
Lead Time
The total time a customer must wait to receive a product after placing an order.
Leadership
Leadership is path finding and aligning people.
Lean Manufacturing
A Lean organisation strives to reduce all types of waste to improve its operational p e rformance and flexibility. This is a continuous process of ongoing incremental improvoment.
Lean Sigma
The combination of lean principles and process excellence to improve operational performance.
Learning Company
Learning Company stands for an organization that facilitates the learning of all its members and consciously transforms itself and its context.
Learning Organisation
Learning organisations are organisations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together.
Loss Accounting
The process to identify, quantify and root cause performance losses. The ongoing process will help drive continuous improvement.
M Maintenance Strategy
An organisation’s approach to maintenance, ideally one which views maintenance as a reliability function rather than just a repair function.
Management Control and Reporting Systems (MCRS)
A structured approach to relate business objectives to performance measurement and review throughout the organisation. It systemises the management processes for ensuring adequate control, focus and improvement drive across day to day activities and the longer term.
Manufacturing Assessments
Structure method of assessing a manufacturing operation’s practices and culture to support the development of an improvement strategy.
Manufacturing Improvement Program
Longer term facilitated improvement program which will drive culture change and operational improvement, across a range of business functions and processes.
Masterclass
Structured medium term facilitated improvement program, where a cross functional team works on delivering improvement in a specific area. It is tailor made to drive
culture change, raise people’s skills and deliver significant tangible business benefits.
Measurement
Measurement is the basis of all improvement activity. Measurement will allow an
organisation to understand its current position and potential for improvement.
Mental Models
Mental models, or unearthing our internal pictures of the world and assumptions about how things work, and surfacing them for rigorous scrutiny. People act on their mental models and observe the world selectively based on their mental models; therefore, we need to be aware of what these are to develop insight. The ability to compare reality or personal vision with perceptions; reconciling both into a coherent understanding.
MUDA
Japanese word for waste. MUDA address all aspects of wasted effort, characterised
within the seven wastes; Waiting, Tr a n s p o rtation, Inappropriate processing, Inventory,
Bad Quality, Motion and Overproduction.
N
Non value added work
Activities that may be necessary but do not add value as defined by the customer. Examples are packaging, paperwork, and inspection. Non value-added tasks can create value if their function is to identify and eliminate waste.
Not Right First Time (NRFT)
Percentage of product manufactured that does not meet customer specification first
time. This measure includes all scrap and rework.
NRFT = (Total product manufactured which do not meet customer specification first time) / (Total product manufactured)
O
On Time and In Full (OTIF)
Percentage of customer orders that arrive on time and fully meet customer
requirements.
OTIF = (Number of customer orders delivered on time and in full) / (Total number of customer orders) x 100 %
Organisational Development(OD)
Organizational Development (OD) is a planned, systematic process of change that uses behavioural science knowledge and techniques to improve an organisation’s excellence. Organisational development is both: a step-by-step procedure to solve a specific problem and a process of fundamental change in the human and social systems of the organisation, including organisational culture.
Overall Equipment Effectiveness (OEE)
A measure which shows the proportion of time a piece of equipment manufactures
good quality product against its potential capacity.
OEE = %Availability x %Performance x %Quality (x %Yield). All data should be collated for the same period of time.
P
Participation
Participation it is a philosophy towards decision making and action. It is an attitude towards people which aims on implementing democratic processes into companies.
Performance
During the available time, the percentage of product manufactured against theoretical(or best demonstrated) rate.
Personal Mastery
Personal mastery, or continually clarifying and deepening one’s personal vision, focusing our energy, and personally achieving excellence. The ability to honestly and openly see reality as it exists.
Plan Do Check Act Cycle (PDCA)
Also known as the Demming Improvement Cycle or learning cycle. Check, this is where
the results of an improvement activity are checked against the expected outcome. Act, this is where further potential improvements are identified. Plan, this is where the implementation of practical improvement are agreed. Do the implementation of improvement activity.
Poke Yoke
Japanese term for error proofing
Policy Deployment
Structured process of aligning activities at all levels of the business to the overall business strategy. This is done through the cascading performance goals and objectives throughout the organisation. The goals and objectives are relevant to each level of the organisation.
Process Control
Method of controlling a manufacturing process to maintain specified conditions.
Process Excellence (6 Sigma)
A structured method to improve operational performance. The approach utilises a series of statistical tools to reduce process variability.
Process Mapping
A graphical method to represent the steps or stages of a process and certain of their attributes such as those involved.
Production levelling or smoothing
Production levelling allows a consistent workflow, reducing the fluctuation of customer demand with the eventual goal of being able to produce any product any day.
Applications:
The main benefits related to production smoothing are:
- reduced costs,
- maximised resource utilisation,
- reduced inventory,
- reduced lead time,
- increased on time orders, etc
Production Preparation Process (3P)
3P seeks to meet customer requirements by starting with a clean product development slate to rapidly create and test potential product and process designs that require the least time, material, and capital resources.
Applications:
Main benefits are:
- elimination of non value-added production steps,
- reduced tooling and equipment cost,
- clearer work instructions and process requirements,
- smoother transition from start-up to volume production.
Pull System
One of the 3 Elements of JIT. The pull system enables the production of what is needed, based on a signal of what has just been sold. The downstream process takes the product they need and 'pulls' it from the producer. This 'customer pull' is a signal to the producer that the product is sold. The pull system links accurate information with the process to minimizes overproduction.
Push System
In contrast to the pull system, product is pushed into a process, regardless of whether it is needed right now. The pushed product goes into inventory, and lacking a pull signal from the customer indicating that it has been bought, more of the same product could be overproduced and put in inventory.
Q
Quality (OEE Calculation)
Percentage of product manufactured which meets customer specification. Quality = (Good Quality product manufactured in time period)/(Total product manufactured in time period)x 10 0 %
R
Red Tags
Simple visual system to identify production area or equipment defects or areas of potential improvement.
Root Cause Problemsolving
The means of identifying what fundamental factors need to be addressed to prevent the problem occurring ever again. Effective problem solving should be structured and there are many practical techniques for this.
S
Schedule Adherence
A measure of an organisations ability to meet it’s manufacturing schedule or plan. Schedule Adherence = (Planned orders manufactured in planned period)/(Total Planned orders to be manufactured in planned period)x 100 %
Shared Vision
Shared vision, or developing shared pictures of our future to foster genuine commitment and enrolment rather than compliance in the organisation. The ability of a group of individuals to hold a shared picture of a mutually desirable future.
Single Piece Flow
The optimum method of manufacturing where only one unit of product is made at a time when requested by a process’s customer
Single-loop Learning
Organisational learning at that level becomes evident when errors are detected and corrected. Companies carry on with their present policies and goals.
Six Sigma
It is a disciplined process that focuses on developing and delivering near-perfect products and services. Basic pillars are process measurement, analysis, reengineering and stabilisation. It follows the Define, Measure, Analyse, Improve and Control cycle.
Applications:
Main benefits are:
- understand the main variables that destabilise processes
- reduce variability
- best use of available data to reduce quality cost
- rapidly design, test and implement solutions
- set up process controls enabling <6σ defects.
SMED (Single Minute Exchange of Dies)
A structured approached to reduce changeover times (or indeed the duration of any critical activity) through the use of cross functional teams.
SPC (Statistical Process Control)
Statistical process control is the application of statistical methods to identify and control the special cause of variation in a process.
Standard Operation Procedures
Simple operation procedures (which often include pictures and process maps) that are located at the workplace to assist with consistency of operation and operator training.
Standard Work
It is defined as the most effective combination of manpower, material, and machinery. It means to produce quality safely and less expensively trough efficient rules and methods of arranging people, products and machines.
Applications:
Benefits are:
- process consistency,
- reduced operator-introduced variation,
- methods continuously improved and documented for efficiency,
- quality improvement,
- cost reduction,
- identification of minimum work in process,
- simpler processes.
Standards
The setting and adherence of operational standards in manufacturing is fundamental to deliver consistent manufacturing performance.
Stock Turns
A calculation to determine how an organisation is utilising its working capital Stock Turns = (Annual Turnover) / (Value of Raw Materials + Work in Progress + Finished Goods Stock)
Supply Chain (Management)
The complete network from raw material suppliers to end users involved in product manufacture and supply. (Management of...)
Supply Chain Management Systems (SCM)
SCM software tools are aimed to provide information and to support decision along the entire supply chain, from acquiring raw materials to manufacturing products, to distributing finished goods to the consumer.
Applications:
Supply Chain Management.
With SCP systems, companies can
- increase visibility,
- reduce lead-times,
- provide unprecedented levels of customer-delivery performance,
- minimise inventory,
- minimise expediting costs, etc.
Systems Thinking
Systems thinking is the ability to see interrelationships rather than linear cause-effect; the ability to think in context and appreciate the consequences of actions on other parts of the system.
T
Takt time
The time required between completion of successive units of end product.
Applications:
It is used to pace lines in the production environments.
Team Learning
Team learning, or how to get a team to develop, learn, and achieve synergy in its results. The ability of a group of individuals to suspend personal assumptions about each other and engage in "dialogue" rather than "discussion”.
Throughput Time
The time required for a product to proceed from concept to launch, order to delivery, or raw material into the hands of the customer. This includes both processing and queue time.
TOC (Theory of Constraints)
A lean management philosophy that stresses removal of constraints to increase throughput while decreasing inventory and operating expenses.
Total Quality Management (TQM)
Total Quality Management (TQM) is a comprehensive and large-scale intervention that focuses all organisation systems on the continuous improvement of quality.
Toyota Production System
The basis for all lean manufacturing and improvement tools and techniques.
TPM (Total Productive Maintenance)
A method to improve equipment reliability through measurement, improved maintenance practice and operator involvement and ownership.
U
V
Value added work
Work that the customer is willing to pay for.
A transformation of the shape or function of the material/information in a way that the customer will pay fo
Value Stream
A group of products, customers or processes that have similar characteristics.
Value Stream Mapping
A structured method for identifying the information and material flows for a Value stream from customer to supplier. This includes measurement of Value Added time vs Lead time and inventory levels in relation to demand in days. This allows identification of waste in the overall process that can be eliminated.
Visual Control
A method to improve operational control through the use of visual cues. Visual Control examples include colour coded gauges and visible oil level indicators.
Visual Display
The display of operational performance indicators that inform and enable the involvement of all members of the organisation.
Visual Management
The concept of establishing an intuitive understanding of how things work, of highlighting issues and enhancing information flow throughout the organisation through the use of Visual Control and Display techniques.
VTT Research Centre of Finland
VTT is an impartial expert organisation that carries out technical and technoeconomic research and development work. VTT offers also information services.
Applications:
VTT Electronics
VTT Information Technology
VTT Industrial Systems
VTT Processes
VTT Biotechnology
VTT Building and Transport
W
Waste
Waste is considered as any activity which consumes resources or creates costs without producing any offsetting value stream, this means the use of resources over or above what is required to produce the product as defined by the customer.
World Class Manufacturing
The concept of applying a full set of best practices to give excellent performance.
X
Y
Yield
A measure of the efficiency of conversion of raw materials into product compared to ideal (the best possible conversion rate)
Z
Other
5S
This method is a structured program to implement workplace organisation and standardisation. - Seiri: Sorting Out.- Seiton: Systematic Arrangement- Seiso: Cleaning- Seiketsu: Standardising- Shitsuke: Self-discipline
Applications:
Main benefits are:-reduced time wasted looking for tools and equipment-improved quality-achieve work standardisation-decreased changeover time-improved safety-reduced space requirements-reduced machine down time-improved employee moral
7 wastes
Taiichi Ohno defined the 7 wastes that do not add value to the customer and should be reduced or eliminated.
- Overproduction
- Waiting
- Transporting
- Inappropriate processing
- Unnecessary inventory
- Unnecessary motion
- Defect
Applications:
Lean manufacturing
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