Lean Manufacturing & Toyota Production System (TPS) Glossary of Terms

Lean Manufacturing is an improvement methodology developed to increase Toyota’s efficiency and respond to specific business needs. This methodology is also known as the Toyota Production System (TPS). The TPS consists of many practical techniques and statistical tools, the main purpose of which is to improve performance by identifying and eliminating waste.

On your lean journey, you will encounter many different terms. Understanding these concepts related to lean manufacturing will help you learn how to apply them when building a lean system. This glossary is designed to deepen your knowledge of Lean. Don’t forget to take a look at other sections of our website to better understand your Lean transformation.

Terms Frequently Used in Lean Manufacturing and Toyota Production System

4M Analysis

The 4M method is a technique used in the Lean Manufacturing system for troubleshooting and risk management. It groups the problems affecting the processes as materials, methods, machines and manpower.  Any factor within 4M (Man, Method, Material, Machine) can be the cause of errors or interruptions.

  1. Man: Lack of skills, inadequate training, lack of motivation, wrong habits, missing qualifications, etc.
  2. Method: Inadequate procedures, responsibilities, instructions, wrong process definition, bad practices, etc.
  3. Material: Defective semi-finished products, poor quality of raw materials, lack of materials, delays, etc.
  4. Machine: Insufficient lubrication, inspection, cleaning, improper assembly, inadequate machinery, etc.

7 Wastes of Lean Manufacturing

There are 7 types of waste in the lean manufacturing system.

  1. Inventory: Products held due to reasons such as overproduction, non-delivery, and waiting cause excess stock.
  2. Overproduction: Producing more than demand causes waste.
  3. Waiting: Interruption of work due to reasons such as material shortage, machine failure, and repair is waste.
  4. Motion: Extra movement of employees in a work environment that is not clean and orderly is waste.
  5. Transport: Unnecessary transportation of equipment or materials causes waste.
  6. Defects: Returning defective and faulty products and reworking them causes waste.
  7. Over-Processing: Any process that does not create value is waste.

Autonomous Maintenance

Autonomous maintenance is a maintenance strategy in which operators monitor, make adjustments, and perform minor maintenance on their equipment and machinery. Operators perform basic maintenance activities such as cleaning, inspection, and lubrication of their equipment. The goal of autonomous maintenance is to optimize equipment performance and keep the equipment as good as new.

Andon

Andon is a word of Japanese origin and means “indicator lamp, luminous sign”. Andon is a visual management tool that shows the status of processes in the production area and provides information with signals when abnormalities occur. Buttons or warning mechanisms placed on the production line help inform operators when a product defect is detected and stop production until the problem is resolved.

Bottleneck Analysis

Bottleneck analysis is a method used to identify constraints that adversely affect productivity in the production process. It helps to identify the steps that require the most resources and time and the root causes of inefficiencies.

Cell

“Cell” refers to a layout in Lean manufacturing where product processing steps are placed very close together. This layout allows parts and documents to be processed in a nearly continuous flow, either individually or in small batch sizes. The U-shaped cell layout reduces walking distance and allows operators to combine various work tasks. This approach allows the number of operators in the cell to be adjusted flexibly as demand changes.

Changeover Time

Type Changeover Time is the time required to perform changes such as producing a new version, changing a new mold, or launching a new product. This time aims to complete changeover operations with as little loss as possible. Optimizing Type Changeover Time greatly increases the efficiency of production processes and minimizes downtime.

Continuous Flow

Continuous flow is the uninterrupted flow of each step of the production process and the uninterrupted production. To ensure continuous flow, obstacles must be eliminated, unnecessary waiting must be reduced, and product design and work instructions must be standardized.

Control Chart

A Control Chart is a chart containing upper and lower control limits that show when a machine or process is “under control”. There is usually a center line between these two limits, which helps to detect trends. The graphical representation of important measurements allows you to determine when a machine or process is “out of control” and needs adjustment.

Customer Value

In lean manufacturing, the customer determines the value. Customer value is the elements that meet the customer’s needs and expectations, provide direct benefits to them, and are willing to pay for.

Cycle Time

Cycle time refers to the time it takes to complete a specific part of an operational process. In other words, it is the time from loading to the next loading.

Downtimes

Downtimes are planned or unplanned interruptions in the production line that prevent production from continuing.

Failure Mode and Effects Analysis (FMEA)

FMEA is used to assess the magnitude and impact of potential failures and to determine the cause of each potential failure. After finding and evaluating potential failures, teams identify and implement corrective actions to prevent their recurrence.

Flow Type Production

It is a production system that aims to minimise losses in the production line and maximise efficiency by keeping the working times of all stations on the production line equal. If work is done at the same speed at each station, stoppages and delays are reduced, so that the production process becomes more streamlined and efficient.

Gemba

Gemba means ‘real place’ in Japanese and is used as a problem solving technique in Lean Manufacturing. Gemba enables managers to see the problem at its source by going to the place where the work is done, to learn the causes of the problem by communicating with employees and to find solutions.

 

Heijunka (Production Levelling)

Heijunka is a Japanese term meaning production levelling. This concept refers to a stockless production system in which each model or variety is produced at regular intervals and sequentially, regardless of demand fluctuations. The aim of the Heijunka technique is to align production processes with customer demands, eliminate waste, optimise resource utilisation and reduce batch production

Hoshin Kanri

Hoshin Kanri is a management method that aligns the organization’s strategic goals, middle management plans, and operational actions. Hoshin Kanri aims to take measurable and timely steps to achieve the organization’s long-term goals by using resources effectively.

Just-in-Time Production

Just-in-Time Production (JIT) is a production system that aims to increase efficiency and reduce waste in production processes. JIT refers to a system in which the necessary materials and products are produced or supplied exactly when and in the amount they are needed. This system focuses on producing according to customer demand rather than producing according to forecasted demand. Companies can implement the Just-in-Time Production system with Lean tools such as Heijunka, Kanban, Takt Time and Continuous Flow.

Jidoka

Jidoka is a system that allows operators to detect an abnormal situation in a process and to immediately stop the work. The system ensures that production is stopped until the source of the problem is found and resolved. The purpose of Jidoka is to prevent the production of defective products and to increase quality.

Kanban

Kanban is a material requirements planning tool developed by Toyota and used in production and inventory control. Kanban, one of the central elements of lean production, is the most widely used system among Pull-based systems. “Kan” means card and “Ban” means signal. This system provides automatic replenishment using visual signals (via signal cards). Kanban regulates the flow of goods within the factory and with external suppliers. When more goods are needed, signal cards are activated, ensuring that materials are supplied on time and in the required quantity.

Lean Manufacturing

Lean manufacturing is an approach that focuses on minimizing waste in production processes and maximizing efficiency. According to the lean philosophy, every element that does not add value to the product or service is considered waste and should be eliminated. The main purpose of this idea is to eliminate waste and increase product quality and customer satisfaction, while also optimizing production speed and reducing costs.

Lean Thinking

Lean Thinking is a production system that first emerged in the Toyota production system and has spread all over the world thanks to its benefits. The system aims to increase efficiency by eliminating waste (losses) in production processes.

Lean Techniques (Lean Tools)

Lean tools are designed to reduce waste and increase quality in businesses. These techniques help eliminate processes that do not add value for lean manufacturing. Commonly used lean techniques include methods such as 5S, Andon, Gemba, Kaizen, Kanban, Value Stream Mapping, PDCA Cycle (PDCA Cycle) and Poka-Yoke.

Lean Manufacturing Software

Lean manufacturing solution offers management, monitoring and analysis by digitalising continuous improvement processes. It gathers modules such as Kaizen, 5S, Suggestion System, Near Miss, Action Management, Lesson Learned, Action Management, Digital on a single platform. It ensures that processes are carried out more easily and efficiently.

LIFO (Last In, First Out)

LIFO means last in, first out in Turkish. LIFO is an inventory management system that foresees that the last purchased material or product is sold first.

3M Waste_ Muda, Muri, Mura

Muda

Muda is a Japanese term meaning “waste, extravagance”. Muda, a part of Lean Manufacturing, refers to any activity in the production process that does not add value to the customer.

Mura

Mura means “disorder” or “imbalance”. Mura refers to imbalances that cause inefficiencies and waste in production processes. Fluctuations in work speed, material imbalances, planning and scheduling errors. It prevents the regular and stable progress of processes. Unbalanced distributions cause excessive pressure in areas of focus and disruptions in processes.

Muri

Muri is a Japanese term meaning overload. This concept refers to the waste that occurs when employees, machines or equipment in a company are used above their capacity. While excessive use of machines and equipment can lead to malfunctions, overworking employees can cause loss of productivity and accidents at work.

Order Lead Time

It refers to the time the customer must wait for the product, including production preparation, order processing, delays in ordering the order into production, and delays in cases where customer orders exceed production capacity.

Overall Equipment Effectiveness (OEE)

Overall Equipment Effectiveness (OEE) is a Lean Manufacturing tool used to measure and evaluate the performance and effectiveness of an equipment, production line or machine. The purpose of OEE is to understand and improve the efficiency levels of production facilities.     

Over Production

Overproduction refers to producing more, faster or earlier than required for the next process. Overproduction is one of the most serious types of waste in Lean Manufacturing as it causes waste such as excess stock, defects and transport.

Six Big Losses

The six major losses are terms that describe the performance and productivity losses that occur in the production process.

  1. Breakdowns
  2. Installation and Adjustments
  3. Planned and Unplanned Stops
  4. Reduced Speed
  5. Production rejects
  6. Initially Rejected

Poka – Yoke (Mistake Proofing)

Poka – Yoke is a technique used in the Lean Production System. It is an approach that focuses on preventing, correcting or eliminating human errors in production processes before they occur. The Poka – Yoke method consists of warning and control mechanisms. When these mechanisms detect an error, they prevent the next stage of the process until the appropriate conditions are met. In this way, it increases the efficiency in the production process and prevents faulty production.

Preventive Maintenance

Preventive maintenance is an equipment service approach that performs regular maintenance activities to prevent unexpected failures that may occur in equipment due to use or time. The goal of preventive maintenance is to maintain equipment before it fails, reduce failures, and extend the life of the equipment. To achieve this goal, personnel have daily responsibilities such as checking the condition of the filter, the tightness of nuts and bolts.

Pull System

The pull system is an approach that focuses on preventing overproduction by producing as much as demand. In this system, the amount of stock is kept to a minimum or no stock is made. In this way, waste of resources is minimised, costs are reduced and time efficiency is increased.

Push System

A push production system is a system that uses market forecasts instead of customer demand to start production, in contrast to a pull production system.

Single-Minute Exchange of Die (SMED)

SMED is the abbreviation of the expression ‘Single-Minute Exchange of Die’ and means ‘Single Minute Exchange of Die’ in Turkish. The purpose of SMED is to reduce production stoppages caused by mold change and set-up times and to increase efficiency.

Root Cause Analysis

A problem-solving method that focuses on identifying the root causes of problems that arise in a process and solving them. By asking the question “why” five times, it allows you to reach the underlying cause of the problem each time.

Shigeo Shingo

Shigeo Shingo is a Japanese engineer who is an expert in the Toyota Production System and Lean manufacturing practices and the inventor of the Poka-Yoke application.

Shojinka

Shojinka is one of the concepts that emerged in the Toyota Production System. It is the ability to adjust the production line to accommodate changes in the number of employees and demand. It allows the workforce to work flexibly on different jobs. Thus, when demand decreases, the workforce can be directed to different areas where needed, or when demand increases, additional support can be directed.

Six Sigma

Six Sigma is a measure of quality that companies can use to eliminate defects and improve processes. It aims for a defect rate of 3.4 per million units. The Six Sigma technique is based on five main philosophies consisting of “define, measure, analyse, improve and control (DMAIC) steps. It emphasises using a statistical methodology and making data-driven decisions to eliminate defects and solve problems.

Six Sigma Principles

  • Customer orientation
  • Data-driven management
  • Proactive management
  • Co-operation
  • Focus on the process
  • A culture of learning from successes
  • Top-down training
  • Continuous improvement

Standardized Work

Standardized work is the precise rules that determine when and in what order the operator will perform their tasks in the production process. These rules are based on three basic elements.

  • Takt Time: It refers to the speed at which products must be produced to meet customer demand.
  • Work Sequence: The steps that the operator must complete within takt time and the order of these steps.
  • Standard Inventory: The amount of parts and materials needed to run the process.

Stock

In Lean Manufacturing, stock is one of the elements that does not add any added value to the final product and is considered waste. Excess stock is among the factors that significantly increase product costs. Therefore, keeping stocks at a minimum level is one of the basic principles of lean production in terms of efficiency.          

Takt Time

Takt time is one of the most basic concepts of Lean Manufacturing, which aims to eliminate waste and increase efficiency. Takt time is the speed at which a product must be completed to meet customer demand. Adjusting production speed according to customer demand prevents overproduction, reduces inventory costs, and increases efficiency.

Total Productive Maintenance (TPM)

Total Productive Maintenance (TPM) is a maintenance philosophy that aims to increase the efficiency of machines and equipment in production processes. TPM adopts autonomous maintenance and encourages the participation of all employees. It includes regular and predictive maintenance activities to prevent equipment failure, reduce unplanned downtime, and increase overall productivity.

Toyota Production System (TPS)

The Toyota Production System (TPS) is a production model developed by Toyota Motor Corporation to eliminate waste and provide the best quality, lowest cost and shortest delivery time.

Waste Elimination

Waste elimination is a business philosophy that aims to eliminate waste by categorising all materials used in the production process as necessary and unnecessary.

Value Stream

The value stream covers all the steps from the design stage of the product to the delivery to the customer. In this process, actions that create value and actions that do not create value are determined in line with customer demands. When actions that do not create value are eliminated, waste is reduced and productivity increases.

Value Stream Mapping

Value Stream Mapping (VSM) is a flowcharting method that shows, analyses and improves the steps required to deliver a product or service to the customer. This method, which is an important part of lean methodology, examines the flow of process steps and information from the starting point to the delivery to the customer. VSM is used especially to find and eliminate waste by depicting various business activities and information flows with symbols.

Visual Management

Visual management aims to inform all employees with boards with graphics and ratios so that businesses can see their performance and success. 

World Class Manufacturing

World class manufacturing is to produce in accordance with internationally recognised quality, efficiency and safety criteria. Its aim is to increase production performance by making continuous improvements, to provide operational excellence and to increase competitiveness.

Waste

Any activity that wastes resources and does not add value to the customer is waste.

Yokoten

Yokoten is a Japanese word meaning “spreading development, horizontal distribution.” Yokoten focuses on sharing product design ideas, best machine settings, work processes, successes or failures throughout the organization. Unifying work processes is key to creating a standardized and efficient process that is essential for reducing errors and maximizing efficiency.

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