Chapter 12 - Inventory Management

Just-in-time (JIT)

A system that produces only what is needed, when it is needed, and in the amount needed.

Lean production

A philosophy focused on eliminating waste and improving flow throughout production.

Waste

Anything that does not add value to the product or service in the eyes of the customer.

Overproduction

Making more than is needed or before it is needed.

Waiting

Time lost when materials, people, or machines are idle.

Transportation

Unnecessary movement of products or materials.

Processing

Performing unnecessary steps in production.

Inventory

Holding more materials or products than needed.

Motion

Unnecessary movement of people or equipment.

Defects

Products or services that do not meet quality standards.

5S

A workplace organization method: Sort, Set in order, Shine, Standardize, Sustain.

Sort

Remove unnecessary items from the workplace.

Set in order

Organize tools and materials for easy access.

Shine

Clean the work area to identify problems early.

Standardize

Establish consistent practices and procedures.

Sustain

Maintain and review standards over time.

Pull system

A system where downstream operations signal their needs to upstream operations.

Kanban

A visual signal used to trigger production or movement of items in a pull system.

Takt time

The pace of production needed to meet customer demand.

Kaizen

A philosophy of continuous improvement involving all employees.

Poka-yoke

A mistake-proofing method used to prevent or detect errors.

Setup time

Time required to prepare equipment or processes for production.

SMED (Single-Minute Exchange of Dies)

A method for reducing setup times to less than 10 minutes.

Heijunka

Level scheduling; the practice of smoothing production to reduce waste.

Andon

A visual signal to alert operators and supervisors of problems.

Jidoka

Automation with a human touch — stopping processes when issues occur.

Total Productive Maintenance (TPM)

A system to maintain and improve equipment reliability.

Value stream

The set of all activities that add value to the customer, from raw materials to finished goods.

Value stream mapping

A tool used to analyze and improve the flow of materials and information.