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CivcoRT
Continuous Improvement
| Term | Definition |
|---|---|
| A3 | A problem-solving methodology developed by Toyota that is structured around Plan-DoStudy-Adjust improvement cycles and is named after the size paper the report is created on (similar to 11” x 17” paper). |
| Activity Ratio (AR) | An indicator of process efficiency, equal to the sum of the Process Times for all the individual steps divided by Total Lead Time. |
| Barriers to Flow | Any barrier, physical or not, that prevents the passing of one unit of work directly to the next process without the work stopping. |
| Cause-and-Effect Diagram | Same as Fishbone Diagram. Visual root-cause analysis tool to brainstorm and document potential causes of an undesired effect. The primary causes often used are the “6Ms”, standing for: man, machine, materials, methods, metrics, and Mother Nature |
| Changeover | Set-up. Converting a process from performing one type of work to another. Changeover time is from when the last unit of a run is done until the first unit of the next run is done. Think of changing a fixture. Long changeovers cause batch processing. |
| Checklist | A form used as a reference to assure all of the key steps in a process have been completed. Checklists are often integrated into the standard work for an operation. |
| Check Sheet | A simple form used to tally information about the type & frequency of an occurrence. Often used to give direction for corrective actions or continuous improvement activities. Results from check sheets can provide data for creating Pareto Charts. |
| Countermeasure | A tool applied to improve a process or work area by reducing or eliminating the root cause of an undesired effect. |
| Critical Timeline Path | When parallel activities (work being performed simultaneously) occur in a process, the critical path is the sequence of activities along the path with the longest lead time through the process from request to delivery. |
| Cross-Functional Team | A team of people representing different functions or departments in a process. The team may be for a specific activity (a Kaizen Event), or may be more permanent (a cross trained, cross-functional team to support a specific product or customer). |
| Cross-Training. | Training individuals to perform a variety of tasks and skills. In a lean environment, the focus of cross-training should be to increase competence along the value stream in order to optimize performance of that value stream. |
| Current State (CS). | All of the steps that are performed to complete the work as it is operating in today’s environment (this is often quite different from how a written procedure states it should be done) as well as the issues and performance (metrics) of the process. |
| Cycle Time (CT). | The frequency, or interval, of work being completed. Compare to Process Time, contrast with Lead Time. |
| Downstream. | As viewed from a reference point, downstream processes are activities that take place after the reference point (e.g., transmitting a quote to the customer is a downstream process from writing the quote). Contrast with Upstream. |
| Effective. | Measure of quality. How well is it done? All processes must be both efficient and effective. Contrast with Efficient. |
| Efficient. | Measure of speed. How fast is it done? All processes must be both efficient and effective. Contrast with Effective. |
| Eighty (80%) Percent Rule. | Also Pareto Principle. The idea that most effects in a situation are caused by a few contributors. Wilfred Pareto noticed that 80% of the property in Italy was held by 20% of the people. It was later observed that this 80/20 relationship is very common. |
| First Pass Yield (FPY). | A quality metric that indicates process performance. First pass yield is expressed as a percentage and is calculated by dividing the number of “right the first time” units of work by the quantity of work entering the process. Similar to %C&A. |
| Fishbone Diagram. | Cause and Effect Diagram. Visual root-cause analysis tool to brainstorm and document potential causes of an undesired effect. The primary causes often used are the “6Ms”, standing for: man, machine, materials, methods, metrics, and Mother Nature. |
| Five Ss (5Ss). | Using workplace organization and visual controls to improve performance. Sort, set-in-order, shine, standardize, and sustain. Safety is often referred to as the sixth “S,” but in traditional 5S programs, safety is assumed to be predominant throughout. |
| Five Whys. | An analysis tool used to find the true root cause of a problem. The question “why” is asked a sufficient number of times to find the true reason for the problem. Once that is identified, a countermeasure can be designed & implemented to stop recurrence. |
| Flow. | The smooth, uninterrupted movement of a product or service through a series of process steps. In true flow, the work product (information, paperwork, material, etc.) passing through the series of steps never stops. |
| Flow Chart. | A schematic representation of a process, from start to finish, including inputs, outputs, paths, steps, and decision points. Traditional process maps are often depicted in flowchart form. Also referred to as a Process Flow Chart. |
| Freed Capacity (FC). | The amount of capacity created as a result of process improvements, typically expressed in number of full time equivalents (FTEs). |
| Full Time Equivalent (FTE). | Number of resources (usually people) required to run a process or series of processes if they were employed full time on that activity. For people, the number is usually based on 2,080 hours per year (i.e., 2,080 hours of work = one FTE) or 40 hours per w |
| Future State (FS). | A plan for how a process should be running at a point in the future. Serves as the primary input for developing an implementation plan. Future state value stream maps are usually developed looking 3 to 12 mos into the future. Also called Ideal State. |
| Gemba. | A Japanese word for the “real place” or the place where the work actual occurs. To understand the real issues that affect a process, it is critical to go to the gemba and see what is actually happening. |
| Genchi Genbutsu. | Japanese term that refers to seeing for yourself. Genchi genbutsu is the act of going to the gemba. |
| Hansei. | The act of reflection to acknowledge one’s mistakes and pledge improvement. To stop hansei means to stop learning. Hansei also means greeting success with modesty and humility. |
| Just-in-Time (JIT). | A process management system utilizing the concept of flow to produce goods and provide services only when needed and only in the quantity needed. |
| Kaikaku. | Radical process improvement over a short period of time — innovation. Changes of theses type are often implemented during the course of a Kaizen Event. |
| Kaizen. | A philosophy where continuous, incremental improvement occurs over a long period of time. Creates more value & less waste, increased speed, lower costs, and improved quality. Involves everyone - Sr. leadership, middle management, & frontline workers. |
| Kaizen Event. | Structured, team-based, problem-solving activity to improve processes. Includes: team training, current state analysis, future state design, prioritization of improvements, training new process, implementing improvements. 1 to 5 days with 100% focus. |
| Kanban. | A type of Pull Production system whereby the downstream process signals the upstream process to replenish what has been consumed. When quantity falls below a set point, production is queued to make more. Kanbans typically pull by part number. |
| Lead Time (LT). | Time for a product to go through the system, from first to last operation. Includes processing, delays, & movement. When work is received until it is delivered. Lead time = Process Time plus Wait Time (delays). Throughput or Turnaround Time. |
| Lean. | Defining value from customer’s viewpoint; mapping value streams; creating flow; working at the pull of the customer; and pursuit of perfection. Efficient processes, improved work environment, including everyone, & focusing on customer needs. |
| Level Loading. | The leveling of quantities and types of products/services produced for the customer. Also referred to as Production Smoothing. |
| Metrics-Based Process Mapping (MBPM). | A visual, micro-level process mapping technique that separates tasks into separate rows based on who the person or functional area is that is performing the tasks. These rows are sometimes referred to as swim lanes. The tasks are depicted in a sequential |
| Mistake Proofing. | A device or procedure designed to prevent the generation of defects. |
| Multi-Functional Workers. | Individuals trained and qualified to perform a variety of tasks. In a lean operation, workers are typically cross-trained on operations upstream and downstream of their primary work, so they can support the value stream should problems occur. |
| Mura. | A Japanese word for inconsistencies in the system and variation in how work is performed. |
| Muri. | A Japanese word for physical strain or other types of over-burden on employees. |
| Necessary Non-Value-Adding. | Activities that add no value from the customer’s perspective but are required in order to operate the business. This could include legal and regulatory requirements, as well as certain internal business processes, which would put the business at risk if e |
| Non-Value-Adding (NVA). | A task that the customer does not care about and would be unwilling to pay for if he/she knew the incremental cost of that task. The attribute of a task or activities that can be eliminated from a process without deterioration of the function, performance |
| Operation. | An activity performed on a product or service by a single resource. An operation is a component of Process. Also referred to as Task. |
| Overall Equipment Effectiveness (OEE). | A measure of how effectively equipment is utilized during scheduled operating time. OEE = (% time available)5(% of designed output rate)5(% First Pass Yield). OEE is particularly useful when assessing how well critical equipment is utilized. Examples incl |
| PACE Chart. | A graphic used to help quickly prioritize a list of improvement ideas based on ease of implementation and anticipated benefit. |
| Pareto Principle. | Same as Eighty (80%) Percent Rule. The concept that most of the effects in a situation can be traced back to a small number of contributors. In the early 1900’s Wilfred Pareto observed that 80% of the property in Italy was held by only 20% of the populati |
| Pareto Chart. | A graph or chart, based on the Pareto Principle, that ranks occurrences from the most frequent to the least frequent. Pareto charts are often used to prioritize improvement activities. Check Sheets are a common input to creating a Pareto Chart. |
| Percent Complete and Accurate (%C&A). | A quality metric used to measure the degree to which work from an upstream supplier is determined by the downstream customer to be complete and accurate (or error free). In other words, to what degree does the downstream customer need to: 1) correct infor |
| Plan–Do–Check–Act (PDCA). | The basic steps to be followed in making continuous incremental improvements (kaizen). Sometimes called Demming cycle (named aftger teh man who adapted PDCA from an older version, PDSA Cycle. That was Plan, Do, Study, Adjust. While not identical, for o |
| Process. | An operation or group of operations that receives inputs, performs an activity, and then provides outputs to an internal or external customer. |
| Process Time (PT). | The amount of time is takes to perform a task (or series of tasks) if one could work uninterrupted. For example, if one enters data for 2 minutes, places a call to obtain additional information, and waits for 10 minutes for the call to be returned, talks |
| Product Family. | A group of products or services that pass through similar process steps. |
| Queue Time. | The amount of time that product, people, information, or material waits to be worked on. Also referred to as “wait time.” |
| Reliability. | The ability of a process to produce the same results (product or service) over repeated cycles. |
| Rolled First Pass Yield (RFPY). | A quality metric for determining the percentage of work going through a series of process steps that is error free. RFPY is the product of the % yield (or %C&A) of all of the process steps. For example, in a three-step process, if the %C&A is 80% at the f |
| Root-Cause Analysis (RCA). | A problem-solving approach whereby the underlying cause of a problem is first identified and only then is the corrective action or solution designed. The intent of RCA is to reduce or eliminate recurrence of the same problem. RCA tools include Five Whys, |
| Spaghetti Diagram. | A diagram representing the physical path taken by a product (or service) as it travels through all the steps required to transform a requirement into a deliverable. This can also be used to draw the path walked by those involved in completing the required |
| Stakeholder. | Anyone who has an interest in a process, typically as supplier, customer, or one who actually performs the work. |
| Standard Work. | Documentation of the best known method for completing a task or activity. This becomes the way for everyone working on that process to perform the work. This also becomes the baseline for future work. In the words of Taichii Ohno, “Where there is no stand |
| Takt Time (TT). | The pace at which work must be completed to meet customer demand. To calculate, divide the available work time by the customer demand for that period. For example, if a call center receives 900 calls per shift, and there are 27,000 seconds of available wo |
| Total Quality Management (TQM). | A management approach which evolved out of the work of quality pioneers including Deming, Juran, Ishikawa and Shewart. TQM focuses on the delivery of quality product and quality services to achieve customer satisfaction, concepts that provided the foundat |
| Upstream. | As viewed from a reference point, upstream processes are activities that take place prior to the reference point (e.g., receiving a request for a quote from the customer is upstream to writing the quote). Contrast with Downstream. |
| Unnecessary Non-Value-Adding. | Activities that add no value from the customer’s perspective nor are they necessary to properly run the business. These activities are often legacy in nature (“we’ve always done it that way”). Unnecessary non-value-adding activities are sometimes referred |
| Value. | A customer-defined desired feature or attribute provided at the right time and at an appropriate price. |
| Value-Adding (VA). | Any activity which, from the ultimate customer’s perspective is of value, such that the customer is willing to pay for that activity, or that that activity is a condition of doing business with that customer. |
| Value Stream. | The specific activities required to design, order, and provide a specific product or service from the point of product (or service) concept, through launch, ordering raw materials, production, and placing the product (or service) in the hands of the custo |
| Value Steam Map (VSM). | A high-level, visual representation of all of the process steps (both VA and NVA) required to transform a customer requirement into a delivered good or service. A VSM shows the connection between information flow and product flow, as well as the major pro |
| Waste. | Any activity that consumes resources, but does not provide value as defined by the customer. Also referred to as muda or non-value-adding activities. The eight common types of waste are: Overproduction, over-processing, Inventory, Motion (people), Waitin |
| Work Balancing. | Designing processes so that the Process Time for each person is equal or slightly less than the Takt Time that is required to meet customer demand. Also referred to as Line Balancing. |
| Work-in-Process (WIP). | Work that has been made available to be worked on, has been initiated, or has been completed but has not yet been released to the downstream customer. |
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