A tool of visual management, originating from the Japanese word for ‘lamp’. Most commonly, andons are lights placed on machines or on production lines to indicate operation status. Andons are commonly color-coded green (normal operations), yellow (changeover or planned maintenance), and red (abnormal, machine down). Often combined with an audible s [..]

The informal way life is lived and the work is done, based on the values, beliefs, myths and stories played out in the organization. Over time, leaders shape the culture. (See KAIZEN Culture). Control Chart

The process in a manufacturing or service organization that produces the goods or services for external customers on which the organization depends for its survival. Cross-Functional Management

An end-user whom pays for the project or service delivered by a company, thus generating revenue for the company. The goal of world-class companies is to "continually delight" this customer, thus creating "an increasing affection" for its products and services. There may be several external customers, all of whom must be conside [..]

The total time elapsed from when raw material enters the production process until the finished product is ready for shipment to the customer. In service industries, the total time elapsed from when a customer expresses a need to when that need is satisfied. Deming Cycle

Refers to the Pareto principle, which suggests that most effects stem from relatively few causes; that is, eighty percent of the effects come from twenty percent of the causes. Five S (5S)

A way of managing person-power on the line such that when demand decreases, workers can be re-deployed to areas where needed, or when demand increases, they can be deployed to areas requiring additional support. Preferred to the system of maximizing machine efficiency, which pays no attention to customer demand and TAKT time. Foundation of KAIZEN

A Japanese word that literally means "the Real Place". Used in the context of KAIZEN, Gemba usually refers to the shop floor or to the place where the Core Process is going on. In a broader sense, Gemba refers to any place in a company where work is being performed; thus one may have an engineering gemba, a sales gemba, an accounting gemb [..]

Automatic parts ejection. Parts may be manually inserted into a machine, but when the cycle is complete the processed part is automatically ejected so the operator can simply insert the new work and move the ejected part on to the next process, thus reducing his/her cycle time. Just-in-Time (JIT)

A Japanese term meaning "change for the better". Applied to business organizations, it implies continuing improvement involving everyone that does not cost much, if any money. See: What is Kaizen. KAIZEN Culture