All processes, areas and customers “downstream” of where we are.

Activities whose value to the customer greatly exceeds their cost.

An image of the Lean Production System, as illustrated in the book Lean Production Simplified (Productivity Press, New York 2007) by Pascal Dennis

Literally, “self-study”. A strategy-oriented management-driven improvement activity that typically involves autonomous study groups learning, practicing and sharing insights on the front line.

A way of thinking based on the principles of the Lean Business System. Lean thinkers seek to maximize customer value while minimizing waste. Lean thinking means creating more value for customers with fewer resources.

A lean organization understands customer value and focuses its key processes to continuously increase it. The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste. Lean thinking changes the focus of management from optimizing separate technologies, assets, and vertical departments to optimizing the flow of products and services through entire value streams that flow horizontally across technologies, assets, and departments to customers.

Non-value-adding work, or waste. Any activity for which the customer is not willing to pay.

“Hard to do” and can be caused by variations in production, poor job design or ergonomics, poor part fit, inadequate tools or jigs, unclear specifications, etc.

Normally, a spreadsheet or database that supports accurate and controlled inventory reduction. To create the PFEP, we need to gather essential information on every part number entering a plant or site, such as the part's specifications, supplier, location of supplier, rate of usage, storage locations, point of use, container size, as well as other key data. PFEP is the foundation for the continuous improvement of the material-handling system.

An image of the Lean problem solving process, as illustrated in the book Lean Production Simplified (Productivity Press, New York 2007) by Pascal Dennis

A method of investigation involving observation and theory to test scientific hypotheses. In the Lean Business System, the scientific method is expressed as PDCA, is a method for making hypotheses, testing them empirically, and drawing conclusions.

The quality of being firm and steadfast. Stability in a production or business process starts with standardized work, the 5 S system or workplace organization, and visual management. A core Lean principle is that improvement is impossible without stability in the 4M’s -- Manpower, Machinery, Materials and Methods.

The optimal combination of workers, machines and materials so as to meet our safety, quality and delivery objectives every time. Standardized work entails defining work content, sequence, timing and expected outcome.

A carefully managed amount of inventory within a value stream to support flow and pull.

Supermarkets comprise inventory buffers that can contain either finished items or work-in-process. They can be used to manage finished goods inventories, to connect processes that cannot flow because of differences in cycle time or geography, and to connect processes that are shared by multiple value streams.

The ability to think in terms of systems, and knowing how to lead systems.

Activity that the customer is willing to pay for. Anything that positively changes the form, fit or function of a product or service.

Shared, experiential learning across an organization.

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