9.6 Key Terms
Key Terms
- Defects: Products that fail to meet customer requirements, rendering the effort to create them wasted and necessitating additional waste management processes.
- Inventory: Raw materials, work-in-progress, or finished goods representing capital outlay that has not yet generated income, with any non-value-adding inventory considered waste.
- Just-in-time (JIT) focuses on producing goods or services to meet customer demand only when they are needed.
- Kaizen : a incremental improvements in process that might be small, but contribute to continuous improvement.
- Kanban : a tool used in different forms (card, bin, etc.) that prompts the flow of work at the time it is needed to increase efficiency and reduce work in progress.
- Lean control is a refined example of nonfinancial controls in action aimed at enhancing product and service quality while reducing waste.
- Lean manufacturing refers to the elimination of waste in the manufacturing process.
- Motion: Unnecessary movements by workers or equipment that can lead to damage, wear, and safety issues, as well as incurring fixed assets and expenses.
- Over-processing: Using more expensive or valuable resources than necessary or adding features that are unneeded by customers, potentially leading to waste, particularly in terms of overqualified personnel performing tasks below their competency level.
- Overproduction: Producing or acquiring items before they are actually required, leading to excess inventory that must be stored, managed, and protected, often masking underlying production problems.
- Push System : Traditional manufacturing system that emphasizes maximizing machine and labour utilization, assuming that keeping workers and machines constantly busy will lead to productivity and efficiency.Pull System : a production system where work flows to a work centre only when that centre needs more work (Just-In-Time).
- Transportation: Moving products without adding value, incurring costs, and risking damage, loss, or delays.
- Value Strem Mapping (VSM): the process of analyzing processes, identifying value-adding activities, and eliminating non-value-adding activities or waste in order to increase productivity.
- Waiting: Idle time spent by workers or capital tied up in goods and services not yet delivered to customers, often requiring additional processes to manage.
- Waste: any activity that does not add value for the customer, but is associated with use of resources at a cost.
