The flow of activities required to transform raw materials or information into a product or a service for customer use.
What is a value stream?
100
An activity that consumes resources but creates no value for the customer.
What is waste?
100
Eliminate waste, continuous improvement, and respect for people.
What are the three main goals of lean manufacturing?
100
The general guideline of how many employees should make up a value stream.
What is 25 to 150?
200
A group of machinery, tools and employees that produces a family of products.
What is a work cell (group)?
200
The percentage of products in a production run that fail to meet specifications, and thus can’t be sold at full price.
What is a scrap rate?
200
Value, value stream, flow and pull, empowerment, perfection.
What are the five principles of lean processes that provide a framework for the lean enterprise?
200
Under lean accounting, this method of costing was preferred.
What is market-based?
300
The one paged summary used to monitor their operational, capacity, and financial metrics.
What is a box score?
300
A system of cascading production and delivery instructions from downstream to upstream activities in which nothing is produced by the upstream supplier until the downstream customer signals a need.
What is a pull system?
300
Focus on efficiency and machine utilization, long run times, bloated inventories, and departmental set up.
What are characteristics of mass production?
300
The three main benefits realized from lean accounting.
What are better communication, reduced inventory, and improved decision making?
400
The amount of time a supplier requires to fill customer orders.
What is lead time?
400
The available production time divided by the rate of customer demand. It sets the pace of production to match the rate of customer demand and becomes the heart of any lean system.
These are replaced by very visual live hourly and daily operating reports that are reviewed and acted upon daily.
What are end-of-the-month variance reports?
500
The rate of return a company requires before it will invest in a product or operation.
What is the hurdle rate?
500
A mistake-proofing device or procedure to prevent a defect during order taking or manufacture.
What is poka-yoke?
500
Accurately pricing products, determining profitability, value streams do not include indirect costs for decision making analysis, and emphasizing speed and quality over costs
What are possible problems with lean accounting?
500
This measurement allowed buyers to focus on reducing inventory levels rather than placing orders and getting the best price.