Lean Manufacturing Terminology

Lean Terminology

• Andon lights / boards: A visual control device in a production area.
• Autonomation: automation with a human touch. Refers to semi-automatic processes where the operator and machine work together. Autonomation allows man-machine separation. Also referred to as Jidoka.
• Balanced production: all operations or cells produce at the same cycle time. In a balanced system, the cell cycle time is less than takt time.
• Error-proofing: designing a potential failure or cause of failure out of a product or process.
• Flow manufacturing: a manufacturing methodology that pulls items from suppliers through a synchronized manufacturing process to the end product. The principle goal is faster response to customer demand.
• Hoshin Kanri: A strategic planning approach that integrates the practices of leadership with the practices of management.
• Kaizen: Japanese term for incremental improvement. A team approach to quickly tear down and rebuild a process layout to function more efficiently.
• Kanban: techniques named after the Japanese word for card or communication. Stocking technique using containers, cards and electronic signals to make production systems respond to real needs and not predictions and forecasts.
• Just-in-Time (JIT): manufacturing method where downstream operations pull required parts needed from upstream operations at the required time. Implementing JIT requires most features of lean manufacturing.
• Mistake-proofing: any change to an operation that helps the operator reduce or eliminate mistakes.
• Muda: Anything that interrupts the flow of products and services through the value stream and out to the customer is designated muda - or waste.
• One piece flow: Producing one unit at a time, as opposed to producing in large lots.
• Poka-Yoke: Techniques to mistake-proof a process.
• 6 Sigma: A structured process improvement program for achieving virtually zero defects (3.4 parts per million) in manufacturing and business processes.
• Standard operations: Clearly defined operations and standardized steps for both workers and machines.
• Takt time: Takt is German for pace. Takt time defines the manufacturing line speed and the cycle times for all manufacturing operations. Takt time is computed as: Available work time per day / daily required demand (parts/day).
• Value Stream Mapping: A process to determine the value added to a product as it goes through a manufacturing process.

Transitory JIT at Proton Cars, Malaysia

Case study: transitory JIT at Proton Cars, Malaysia

This paper investigates the application and adaptability of just-in-time (JIT) in
the largest Malaysian automobile manufacturing company (Proton). The main
objective of this paper is to develop an understanding of a Malaysian version of
JIT in its automobile industry and to examine the concept of JIT in a Malaysian
manufacturing setting. This is especially interesting and important since
Malaysia has not gone through the usual stages of a craft era (labour intensive,
highly-skilled workers) followed by Fordism (mass production of single
products, semi-skilled workers) and post-Fordism (mass customisation, multiskilled
workers) (see Wilson, 1992). Although, some might argue that they have
actually gone through these stages but over a very short time, thus giving scope
to manufacturing management for a variety of approaches (Womack et al.,
1990). There are other ways of looking at the development of manufacturing
and operations management (Monks, 1987; Sykes et al., 1997). For example,
Monks (1987) suggests a framework based on US experiences with a Handicraft
era (circa 1700-1800), Industrial Revolution (circa 1800-1890), Scientific
Management era (1890-1940) and Operations Research and Computerised
Systems era (1940-present). However, these ideas seem even less applicable to
developments at Proton.
The secondary objectives of this paper are to:
• Determine the amount of JIT activity in the company.
• Look at the structure of the buyer-supplier relationships that support the
JIT system.
• Draw out the factors that support and hinder the successful
implementation of JIT in the company.
• Identify where the Malaysian version of JIT differs, if indeed it does, from
the conventional Japanese form of JIT.

Mike Simpson, Geoff Sykes and Adini Abdullah
Sheffield University Management School, Sheffield, UK



To save document

Henzer 10 Critical Decision Area for OM

10 Critical Decision areas of operation management

I. Goods and service design. According to Henzer (2004), design of goods and design defines much of the transformation process. The factors of cost, quality and human resources must be made during the stage. Operation management of product and services is also different because due to different characteristic and tangible / intangible feature.

II. Quality. Customer has a very high quality standard nowadays and operation management decision in quality must be clear and strict for its members to understand and comply. It must set a quality, standard and operating procedure to meet customers’ high expectation.

III. Process and capacity design. Manufacturing of physical products may have higher importance on process and capacity design than services operation. Operation management (product) should decide what process it, what type of technology and to what extent, human resources, quality and maintenance that determines its basic cost structure. Services operation decision on this area is much simpler and it can determine by customers who directly involved in the process. For example, customer will ask tailor to design specific fashion clothes. Capacity design issue is critical for services because it will try to reduce waiting time and avoid lost of sales due to insufficient capacity. For manufacturing capacity design is based on firms financial capability, forecast for future and market demand.

IV. Location can be an area for operation management to decide and with globalization of business, operation managers too must think global. For physical goods, location selection can be determined by pools of qualified human resources, technology, raw material, access to market and government policy. For services as it is direct to customers, the location is determined by market accessibility or near to customer as possible.

V. Layout design. Material flow, process selection technology used, capacity needs, workers needs, inventory requirement, and capital will influence the decision for layout design. For services such as hotels, beside capacity needs layout also will enhance its attributes and features to the customers.

VI. Human Resources and Job Design – Employees is the integral part in the total system design. Operation management must set a policy to set labor standards to ease transition of skills, improvement of knowledge, skills and abilities (KSA), build a balance work and life quality in an effective cost target. For services one extra area operation management should touch, which is customers relationship that they are dealing directly.

VII. Supply Chain Management – Decisions that have to take place of what to produce, what material to buy, from where, how is the cost and how is the delivery from supplier to the final end customers in on-time delivery and minimum cost possible. It is more critical in production of goods than services.

VIII. Inventory – Decisions on how and where the inventory level to keep long term customers satisfaction, suppliers, material availability for not to disrupt the production, human resources needed for this purpose and important the holding cost from financial perspective. Goods production are more concern because manufacturer may kept raw material, in progress work order and final goods while services is not critical as it is directly produce and consume simultaneously.

IX. Scheduling – Efficient way of allocation, control and management of materials, capital goods and human resources to efficiently produce the final goods from the input available. Schedules are more formal in goods production with short, medium and long term planning to accommodate customers demand. For services the demand is more direct and volatile and often concern on human resources and KSA availability to meet current customers needs.

X. Maintenance – Decision must be made regarding the desired level of reliability, stability and systems must be established by management to maintain that reliability and stability.