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Inventory or stock refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilisation.
Lean manufacturing is a production method aimed primarily at reducing times within the production system as well as response times from suppliers and to customers. It is closely related to another concept called just-in-time manufacturing. Just-in-time manufacturing tries to match production to demand by only supplying goods which have been ordered and focuses on efficiency, productivity and reduction of "wastes" for the producer and supplier of goods. Lean manufacturing adopts the just-in-time approach and additionally focuses on reducing cycle, flow and throughput times by further eliminating activities which do not add any value for the customer. Lean manufacturing also involves people who work outside of the manufacturing process, such as in marketing and customer service.
Six Sigma (6σ) is a set of techniques and tools for process improvement. It was introduced by American engineer Bill Smith while working at Motorola in 1986.
Kanban is a scheduling system for lean manufacturing. Taiichi Ohno, an industrial engineer at Toyota, developed kanban to improve manufacturing efficiency. The system takes its name from the cards that track production within a factory. Kanban is also known as the Toyota nameplate system in the automotive industry.
Design for Six Sigma (DFSS) is an Engineering design process, business process management method related to traditional Six Sigma. It is used in many industries, like finance, marketing, basic engineering, process industries, waste management, and electronics. It is based on the use of statistical tools like linear regression and enables empirical research similar to that performed in other fields, such as social science. While the tools and order used in Six Sigma require a process to be in place and functioning, DFSS has the objective of determining the needs of customers and the business, and driving those needs into the product solution so created. It is used for product or process design in contrast with process improvement. Measurement is the most important part of most Six Sigma or DFSS tools, but whereas in Six Sigma measurements are made from an existing process, DFSS focuses on gaining a deep insight into customer needs and using these to inform every design decision and trade-off.
Lean software development is a translation of lean manufacturing principles and practices to the software development domain. Adapted from the Toyota Production System, it is emerging with the support of a pro-lean subculture within the agile community. Lean offers a solid conceptual framework, values and principles, as well as good practices, derived from experience, that support agile organizations.
Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements.
Quality, cost, delivery (QCD), sometimes expanded to quality, cost, delivery, morale, safety (QCDMS), is a management approach originally developed by the British automotive industry. QCD assess different components of the production process and provides feedback in the form of facts and figures that help managers make logical decisions. By using the gathered data, it is easier for organizations to prioritize their future goals. QCD helps break down processes to organize and prioritize efforts before they grow overwhelming.
Muda is a Japanese word meaning "futility; uselessness; wastefulness", and is a key concept in lean process thinking, like the Toyota Production System (TPS) as one of the three types of deviation from optimal allocation of resources. Waste in this context refers to the wasting of time or resources rather than wasteful by-products and should not be confused with Waste reduction.
Ohno Taiichi was a Japanese industrial engineer and businessman. He is considered to be the father of the Toyota Production System, which inspired Lean Manufacturing in the U.S. He devised the seven wastes as part of this system. He wrote several books about the system, including Toyota Production System: Beyond Large-Scale Production.
Order fulfillment is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer. Sometimes, it describes the more narrow act of distribution or the logistics function. In the broader sense, it refers to the way firms respond to customer orders.
Continuous-flow manufacturing, or repetitive-flow manufacturing, is an approach to discrete manufacturing that contrasts with batch production. It is associated with a just-in-time and kanban production approach, and calls for an ongoing examination and improvement efforts which ultimately requires integration of all elements of the production system. The goal is an optimally balanced production line with little waste, the lowest possible cost, on-time and defect-free production.
Value-stream mapping, also known as "material- and information-flow mapping", is a lean-management method for analyzing the current state and designing a future state for the series of events that take a product or service from the beginning of the specific process until it reaches the customer. A value stream map is a visual tool that displays all critical steps in a specific process and easily quantifies the time and volume taken at each stage. Value stream maps show the flow of both materials and information as they progress through the process.
A lean laboratory is one which is focused on processes, procedures, and infrastructure that deliver results in the most efficient way in terms of cost, speed, or both. Lean laboratory is a management and organization process derived from the concept of lean manufacturing and the Toyota Production System (TPS). The goal of a lean laboratory is to reduce resource usage and costs while improving productivity, staff morale, and laboratory-driven outcomes.
Lean Six Sigma is a method that uses a collaborative team effort to improve performance by systematically removing waste and reducing variation. It combines lean manufacturing/lean enterprise and Six Sigma to eliminate the eight kinds of waste (muda).
Lean IT is the extension of lean manufacturing and lean services principles to the development and management of information technology (IT) products and services. Its central concern, applied in the context of IT, is the elimination of waste, where waste is work that adds no value to a product or service.
Lean startup is a methodology for developing businesses and products that aims to shorten product development cycles and rapidly discover if a proposed business model is viable; this is achieved by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and validated learning. Lean startup emphasizes customer feedback over intuition and flexibility over planning. This methodology enables recovery from failures more often than traditional ways of product development.
Lean enterprise is a practice focused on value creation for the end customer with minimal waste and processes. The term has historically been associated with lean manufacturing and Six Sigma due to lean principles being popularized by Toyota in the automobile manufacturing industry and subsequently the electronics and internet software industries. The three key core competencies of a lean enterprise are scaled agile framework, efficient processes, and customer focus.
Lean CFP Driven is a new approach which takes into account not only the widely implemented Lean manufacturing, but combines the principles of Lean with the Operating Curve, an approach based on the theoretical approach of Queuing Theory developed in academia in the 1970s. The goal of Lean CFP Driven is to eliminate waste in order to achieve higher quality, increase productivity and at the same time understand the relationship between utilization, lead time and variability in order to maximize performance within the semiconductor industry.
Operations management for services has the functional responsibility for producing the services of an organization and providing them directly to its customers. It specifically deals with decisions required by operations managers for simultaneous production and consumption of an intangible product. These decisions concern the process, people, information and the system that produces and delivers the service. It differs from operations management in general, since the processes of service organizations differ from those of manufacturing organizations.
References
- ↑ Ker, Jun-Ing; Wang, Yichuan; Hajli, M. Nick; Song, Jiahe; Ker, Cappi W. (2014). "Deploying lean in healthcare: Evaluating information technology effectiveness in U.S. hospital pharmacies" (PDF). International Journal of Information Management. Elsevier BV. 34 (4): 556–560. doi:10.1016/j.ijinfomgt.2014.03.003. ISSN 0268-4012.
- 1 2 Seddon, John; O'Donovan, Brendan; Zokaei, Keivan (2011). "Rethinking Lean Service". Service Design and Delivery (PDF). Boston, MA: Springer US. pp. 41–60. doi:10.1007/978-1-4419-8321-3_4. ISBN 978-1-4419-8320-6. ISSN 1865-4924.
- ↑ Levitt, Theodore (September 1972). "Production-Line Approach to Service". Harvard Business Review.
- ↑ Bicheno, John; Holweg, Matthias (2009). The Lean Toolbox. PICSIE. ISBN 978-0-9541244-5-8.
- ↑ Seddon, John (2003) Freedom from Command and Control: A Better Way to Make the Work Work, Vanguard Press.
- ↑ Shillingburg, 2011