Important Vocab Ch 14

Just-in-Time (JIT)

a way of managing inventory and production so that materials and products are made or delivered only when they are needed, not before.

Lean Operations

means running a business in a way that uses fewer resources (like time, money, or materials) while still delivering high-quality products or services.

Small lot sizes

mean producing or ordering a small number of items at a time instead of making or buying a large batch all at once.

push system

as soon as a worker finishes their part, the product is sent to the next step—whether it’s ready for it or not. If it's the last step, the product is sent straight to storage, even if no customer has ordered it yet.

pull system

is based on customer demand where each step only starts when it's needed, based on what the previous step produces. The final product is made when the customer wants it or based on a schedule.

Hidden Factory

Lean systems try to reduce hidden costs—these are things businesses do that don’t add value for the customer, but they still spend time and money on them. These costs are often called the ————— because they're like extra work behind the scenes.

Logical Transactions

Moving things around unnecessarily, like shipping parts back and forth that could be handled more efficiently.

Balancing Transactions

Adjusting work processes to keep everything moving, but not really improving the product or service.

Quality Transactions

Checking and re-checking products that might already be good, just because the system isn’t working perfectly.

Change Transactions

Making frequent changes that don’t add value, like changing product designs or processes over and over without improving customer satisfaction.

Six Sigma

focuses on making processes more consistent and accurate by reducing variations (or mistakes) in how things are done. It aims to make sure that things are done right every time.

Throughput

is the amount of work or product that a system can produce in a certain amount of time and measures how fast something gets done or produced

minimize

Lean Systems are designed to ———— inventory storage

Kanban

The card is an authorization for the next container of material to be produced

Andon

problem display board that communicates abnormailites

Jidoka

machines with built-in devices for monitoring performance and making judgments

Standardized Work Practice

means that everyone does a task the same way, using the best and most efficient method that’s been agreed upon.

If someone wants to make an improvement, they must test it carefully like a small experiment—using the scientific method (plan, test, check, and adjust).