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Lean
Lexicon
a graphical glossary
for Lean Thinkers
Fourth Edition

Compiled by the Lean Enterprise Institute

Yokoten

115
115
Lean Lexicon
a graphical glossary
for Lean Thinkers

Compiled by the Lean Enterprise Institute

Edited by Chet Marchwinski, John Shook, and Alexis Schroeder
Foreword by Jose Ferro, Dan Jones, and Jim Womack

The Lean Enterprise Institute

Cambridge, MA, USA
lean.org

Fourth Edition, Version 4.0

March 2008
 With gratitude to Michael Brassard, Pascal Dennis, Dave Logozzo,
Robert Martichenko, Rachel Regan, Thomas Skehan, Art Smalley,
Durward Sobek, Tonya Vinas, Jim Womack, and Helen Zak for their
close review of the manuscript. The root cause of all remaining errors
resides with the LEI editors.

© Copyright 2008 The Lean Enterprise Institute, Inc.

One Cambridge Center, Cambridge, MA 02142 USA
Tel: 617-871-2900 • Fax: 617-871-2999 • lean.org

ISBN 0-9667843-6-7
All Rights Reserved.
Design by Off-Piste Design, Inc.
Printed in the USA
Fourth Edition, Version 4.0, March 2008
Contents

Foreword
by Jose Ferro, Dan Jones, and Jim Womack

Introduction
by Chet Marchwinski and John Shook

Lean Terms: A to Z

Appendix A: Value-Stream Mapping Icons

Appendix B: Lean Acronyms
Appendix C: Lean Japanese and German Terms
Appendix D: Pronunciation Guide to Japanese Words
Appendix E: Cited Works
Foreword

We receive many inquiries from members of the Lean Community

asking for definitions of the terms we commonly use, ranging from
A3 report to yokoten. In addition, as we attend events and visit
companies we frequently find widespread confusion and inconsistent
use of terms as simple and fundamental as takt time. (It’s often still
confused with cycle time.)
Chet Marchwinski, LEI’s director of communications, and John
Shook, an LEI senior advisor, have responded for several years now
by clarifying many matters of terminology in response to individual
requests and by placing these clarifications on the Community Page
of the LEI web site. However, many Lean Thinkers continue to ask
the meaning of lean terms and we have decided that the best course
is simply to write them all down in one place in this Lean Lexicon.
We have asked Chet and John, as veterans of the lean movement
with broad knowledge of lean terminology at Toyota and elsewhere,
to tackle this task.
Lexicon is just a fancy word for dictionary—one that conveniently
alliterates with “lean”—and like all dictionaries, there is a need for
upgrades as usage changes and new terms emerge. This is therefore
Version 4.0 of what we imagine will be a continuing effort to define
and sharpen our language as we all move toward future states and
ideal states. In this spirit, we hope to hear from Lean Community
members about additional terms to include in future versions and
about changing usage and changing business needs that may call
for revised definitions and additional examples.
As most Lean Thinkers know, precision is the key to lean performance:
A precise plan for every part. Precisely determined standardized work.
Precise takt image visible to everyone in a production process. Precise
calculation of standard inventory at every point inventories still are
needed. But to achieve precision on the gemba (see the definition on
page 25) we require precision in our language. The Lean Lexicon is
our effort to precisely meet this critical need.

Jose Ferro, Dan Jones, and Jim Womack

Sao Paulo, SP, Brazil
Ross-on-Wye, Herefordshire, UK
Cambridge, MA, USA
Introduction

Drawing up a comprehensive list of lean terms is not an easy task.

Many members of the Lean Community have gained their knowledge
from different sources and use terms in slightly different ways. And
many companies have developed their own “lean lingo” in an effort
to customize usage to their needs and to make their production
system unique. We therefore have devised two simple principles for
selecting terms. These are:
1. The term is important.
You really need it to successfully operate a lean system.
2. The term is in widespread use.
It’s not just “company speak,” but lives in the broader community.
We also have needed to develop a common approach to definitions.
As shown on the sample page at right, for each term we provide:
A simple definition. An example, often showing different types
of applications. Cross-references to related terms. An illustration,
whenever possible. Of course, many terms, like chief engineer and
greenfield, would be impossible to illustrate beyond photos of specific
individuals and facilities!

As editors, we are acutely aware that there will be some differences

within the Lean Community on definitions, and we have tried to
provide the most common usage. We are even more aware that
some important terms may have been left out. We therefore hope
to hear suggestions for additions and improvements (which should
be sent to: [email protected]). We will issue revisions of the
Lean Lexicon as appropriate.

Chet Marchwinski, John Shook, and Alexis Schroeder

Bethel, CT, USA
Ann Arbor, MI, USA
Somerville, MA, USA
 Andon
Term Andon
A visual management tool that highlights the status of the operations
in an area at a single glance and that signals whenever an
abnormality occurs.

Definition An andon can indicate production status (for example, which

machines are operating), an abnormality (for example, machine
downtime, a quality problem, tooling faults, operator delays, and
materials shortages), and needed actions, such as changeovers.
An andon also can be used to display the status of production in
terms of the number of units planned versus actual output.
Example A typical andon, which is the Japanese term for “lamp,” is an
overhead signboard with rows of numbers corresponding to
workstations or machines. A number lights when a problem is
detected by a machine sensor, which automatically trips the
appropriate light, or by an operator who pulls a cord or pushes
a button. The illuminated number summons a quick response
from the team leader. Colored lighting on top of machines to
signal problems (red) or normal operations (green) is another
type of andon.
Cross- See: Jidoka, Visual Management.
reference

Product
A 1 2 3 4
Illustration Product
B 1 2 3 4

Planned Production Actual Production

110 98

Simple andon. Complex andon.

3
Fourth Edition Highlights
• Dashboard
• LAMDA Cycle
• Lean Product and Process Development
• Trade-off Curves
• True North
• Useable Knowledge

Treatment of Foreign Terms

Our editorial North Star, The Chicago Manual of Style,
states that foreign words usually are set in italics if they are
likely to be unfamiliar to readers. And in many works on
lean production and lean thinking terms such as kaizen and
muda are italicized. However, in preparing this lexicon, our
objective is to bring all of these terms into common usage.
Plus, we have no way to know which terms are now familiar
and which are still novel across the Lean Community.
We therefore have decided to welcome the entire list of terms
into the English language and have set all of them in plain
type. To avoid any confusion, we have included a list of all
foreign words in Appendix C so readers may be sure of each
term’s point of origin.
 A3 Report
A3 Report
A Toyota-pioneered practice of getting the problem, the analysis,
the corrective actions, and the action plan down on a single sheet
of large (A3) paper, often with the use of graphics. At Toyota, A3
reports have evolved into a standard method for summarizing
problem-solving exercises, status reports, and planning exercises
like value-stream mapping.
A3 paper is the international term for paper 297 millimeters wide and
420 millimeters long. The closest U.S. paper size is the 11-by-17 inch
tabloid sheet.
See: Value-Stream Mapping (VSM).

1
A-B Control

A-B Control
A way to regulate the working relationships between two machines
or operations to control overproduction and ensure balanced use
of resources.
In the Illustration, neither of the machines nor the conveyor will cycle
unless three conditions are met: Machine A is full, the conveyor
contains the standard amount of work-in-process (in this case, one
piece), and Machine B is empty. When those conditions are met,
all three will cycle once and wait until the conditions are met again.
See: Inventory, Overproduction.

Signal

ABC Production Analysis

Segmenting part numbers into groups based on demand. Lean
Thinkers use this analysis to decide how much and for which
products to hold inventory. A items are high runners, B items are
medium runners, and C items are low runners. C items typically
include infrequent color and build combinations, special-edition
items, and replacement parts.
See: Flow Production, Pull Production.

2
 Andon
Andon
A visual management tool that highlights the status of operations
in an area at a single glance and that signals whenever an
abnormality occurs.
An andon can indicate production status (for example, which
machines are operating), an abnormality (for example, machine
downtime, a quality problem, tooling faults, operator delays, and
materials shortages), and needed actions, such as changeovers.
An andon also can be used to display the status of production in
terms of the number of units planned versus actual output.
A typical andon, which is the Japanese term for “lamp,” is an
overhead signboard with rows of numbers corresponding to
work- stations or machines. A number lights when a problem
is detected by a machine sensor, which automatically trips the
appropriate light, or by an operator who pulls a cord or pushes
a button. The illuminated number summons a quick response
from the team leader. Colored lighting on top of machines to
signal problems (red) or normal operations (green) is another
type of andon.
See: Jidoka, Visual Management.

Product
A 1 2 3 4

Product
B 1 2 3 4

Planned Production Actual Production

110 98

Simple andon. Complex andon.

3
Automatic Line Stop

Automatic Line Stop

Ensuring that a production process stops whenever a problem
or defect occurs.
For an automated line this usually involves the installation of sensors
and switches that automatically stop the line when an abnormality
is detected. For a manual line a fixed-position stop system often is
installed. This permits operators to pull an overhead cord or push
a button that stops the process at the end of a work cycle if the
problem encountered cannot be fixed during the cycle.
These examples illustrate the lean principle of jidoka, which prevents
defects from going to the next phase of production and avoids the
waste of making a series of defective items. Mass producers, by
contrast, will try to keep lines running to achieve high equipment
utilization, even when known defects occur repetitively and require
rework at the end of the process.
See: Error-Proofing, Fixed-Position Stop System, Jidoka.

Automatic line stop.

Autonomation
See: Jidoka.

4
 Build-to-Order
Batch-and-Queue
A mass production approach to operations in which large lots
(batches) of items are processed and moved to the next process
—regardless of whether they are actually needed—where they
wait in a line (a queue).
See: Continuous Flow, Lean Production, Overproduction,
Push Production.

Batch-and-queue production.

Brownfield
An existing production facility, usually managed in accordance with
mass production thinking.
Compare: Greenfield.

Buffer Stock
See: Inventory.

Building in Quality, Built-in Quality

See: Jidoka.

Build-to-Order
A situation in which production lead time and order lead time are
less than the time the customer is prepared to wait for the product,
and the producer builds products entirely to confirmed order rather
than to forecast.

5
Build-to-Order

This is a condition Lean Thinkers strive to achieve because it avoids

the demand amplification and waste inherently involved in building
products based on informed guesses about customer desires.
See: Demand Amplification, Heijunka, Level Selling.

Capital Linearity
A philosophy for designing and buying production machinery so
that small amounts of capacity can be added or subtracted as
demand changes. In this way, the amount of capital needed per
part produced can be very nearly level (linear).
For example, in capacitizing for 100,000 units of annual output, a
manufacturer might purchase a series of machines, each with an
annual capacity of 100,000 units, and link them in one continuous
flow production line (first alternative). Alternatively, the manufacturer
might buy 10 sets of smaller machines to install in 10 cells, with each
cell having annual capacity of 10,000 units (second alternative).
If the forecast of 100,000 units proved to be exactly correct, the single
line with 100,000 units might be the most capital efficient. But if real
demand is different, the second alternative offers distinct advantages:
• Whenever demand goes beyond 100,000 units, the
manufacturer can add either another line with 100,000
units of capacity or just the required number of cells,
each with 10,000 units of capacity, to satisfy the higher
demand. By adding cells, the capital investment per unit
of output would vary only slightly with changing demand.
It would be very nearly linear.
Whenever the real demand is less than 100,000 units, a more serious
problem arises. The first alternative makes it almost impossible to
decrease capacity and maintain efficiency at the current level. However,
the second alternative allows the manufacturer to subtract capacity
by shutting down as many cells as required.
See: Labor Linearity, Monument, Right-Sized Tools.

Catchball
See: Policy Deployment.

6
 Cell
Cell
The location of processing steps for a product immediately adjacent
to each other so that parts, documents, etc., can be processed in
very nearly continuous flow, either one at a time or in small batch
sizes that are maintained through the complete sequence of
processing steps.
A U shape (shown below) is common because it minimizes walking
distance and allows different combinations of work tasks for
operators. This is an important consideration in lean production
because the number of operators in a cell will change with changes
in demand. A U shape also facilitates performance of the first and
last steps in the process by the same operator, which is helpful in
maintaining work pace and smooth flow.
Many companies use the terms cell and line interchangeably.

Fer Ass
rul em
Hos es bly
II
es

ses
T. Ho es
Valv
Assembly I
1

Crimper
Material
Connectors
Flow

Tube Bender
out 2
(automatic)
load 1 tube load Te
at a time Operator (au ster
tom
Motion atic
)

Tubes

30 pcs./container
(finished goods)

Example of a U-shaped cell.

7
Cell

There is a school of thought that material should flow through cells

in a right-to-left direction relative to the operator, because more
people are right handed and it is more efficient and natural to work
from right to left. However, many efficient processes flow to the left
and many flow to the right. Simply evaluate on a case-by-case
basis whether a particular direction makes more sense.
See: Continuous Flow, Operator Balance Chart, Standardized Work.

Chaku-Chaku
A method of conducting one-piece flow in a cell where machines
unload parts automatically so that the operator (or operators) can
carry a part directly from one machine to the next without stopping
to unload the part, thus saving time and motion.
For instance, the first machine in a processing sequence automatically
ejects a part as soon as its cycle is completed. The operator takes the
part to the next machine in the sequence, which has just finished
cycling and ejected its part. The operator loads the new part, starts
the machine, and takes the ejected part to the next machine, which
has just finished cycling and ejected its part and so on around the
cell. The term literally means "load-load" in Japanese.
See: Cell, Continuous Flow.

Change Agent
The leader of a lean conversion who has the willpower and drive to
initiate fundamental change and make it stick.
The change agent—who often comes from outside the organization
—doesn’t need detailed lean knowledge at the beginning of the
conversion. The knowledge can come from a lean expert, but the
change agent absolutely needs the will to see that the knowledge
is applied and becomes the new way of working.
Compare: Sensei.

Changeover
The process of switching from the production of one product or
part number to another in a machine (e.g., a stamping press or

8
 Chief Engineer
molding machine) or a series of linked machines (e.g., an assembly
line or cell) by changing parts, dies, molds, fixtures, etc. (Also called
a setup.) Changeover time is measured as the time elapsed between
the last piece in the run just completed and the first good piece from
the process after the changeover.
See: Single Minute Exchange of Die (SMED).

Chief Engineer
The term used at Toyota for the program manager with total
responsibility for the development of a product line; previously
known by the Japanese term shusa.
The chief engineer leads a small, dedicated team that creates the
product concept, develops the business case, leads the technical
design of the product, manages the development process, coordinates
with production engineering and sales/marketing, and takes the
product into production.
Chief engineers typically have strong technical skills that enable
them to effectively lead and coordinate the technical work of
engineers, designers, and other developers assigned to their
projects. Their most important responsibility is to integrate the
work of the development team around a coherent and compelling
vision for the product.
However, chief engineers do not directly supervise most of the
developers who work on their products. Most members of the
development team report to managers within their own functional
units (in Toyota’s case, body engineering, drive train engineering,
test engineering, purchasing, and so forth). The organizational
structure sets up a natural tension between the project leader (who
wants to realize his product vision) and the functional units (who
understand intimately what is possible).
This creative tension becomes a source of innovation as the project
leaders continually push the organization into new territory according
to market needs, even as the functional units try to keep the project
leaders true to the organization’s technological capabilities. Also
called an Entrepreneur System Designer or Deployment Leader.
See: Value-Stream Manager.

9
Continuous Flow

Continuous Flow
Producing and moving one item at a time (or a small and consistent
batch of items) through a series of processing steps as continuously
as possible, with each step making just what is requested by the
next step.
Continuous flow can be achieved in a number of ways, ranging from
moving assembly lines to manual cells. It also is called one-piece
flow, single-piece flow, and make one, move one.
See: Batch-and-Queue, Flow Production, One-Piece Flow.

Continuous flow processing.

Cross-Dock
A facility that sorts and recombines a variety of inbound items
from many suppliers for outbound shipment to many customers,
such as assembly plants, distributors, or retailers.
A common example is a facility operated by a manufacturer with
many plants in order to efficiently gather materials from many
suppliers. When a truck loaded with pallets of goods from suppliers
arrives on one side of the dock, the pallets are immediately unloaded,
and taken to several shipping lanes for loading onto outbound trucks
bound for different facilities (see illustration on p. 11).
A cross-dock is not a warehouse because it does not store goods.
Instead, goods are usually unloaded from inbound vehicles and
moved to shipping lanes for outbound vehicles in one step. If
outbound vehicles leave frequently, it may be possible to clear
the floor of the cross-dock every 24 hours.

10
 Cycle Time
Example of a Cross-Dock

inbound

cross-
dock

outbound

Current-State Map
See: Value-Stream Mapping (VSM).

Cycle Time
The time required to produce a part or complete a process, as timed
by actual measurement.

Cycle Time—Related Terms Involving Time

Effective Machine Cycle Time
Machine cycle time plus load and unload time, plus the result of
dividing changeover time by the number of pieces between change-
overs. For example, if a machine has a cycle time of 20 seconds, plus
a combined load and unload time of 30 seconds, and a changeover
time of 30 seconds divided by a minimum batch size of 30, the
Effective Machine Cycle Time is 20+30+(30/30) or 1 = 51 seconds.
Machine Cycle Time
The time a machine requires to complete all of its operations
on one piece.

11
Cycle Time

Nonvalue-Creating Time
The time spent on activities that add costs but no value to an item
from the customer’s perspective. Such activities typically include
storage, inspection, and rework.
Operator Cycle Time
The time it takes an operator to complete all the work elements at
a station before repeating them, as timed by direct observation.
Order Lead Time
Production lead time plus time expended downstream in getting
the product to the customer, including delays for processing orders
and entering them into production and delays when customer orders
exceed production capacity. In other words, the time the customer
must wait for the product.
Order-to-Cash Time
The amount of time that elapses from the receipt of a customer
order until the producer receives cash payment from the customer.
This can be more or less than order lead time, depending on
whether a producer is in a build-to-order or a ship-from-stock
mode, on terms of payment, etc.
Processing Time
The time a product actually is being worked on in design or production
and the time an order actually is being processed. Typically, processing
time is a small fraction of production lead time.
Production Lead Time (also Throughput Time and Total Product
Cycle Time)
The time required for a product to move all the way through a process
or a value stream from start to finish. At the plant level this often is
termed door-to-door time. The concept also can be applied to the
time required for a design to progress from start to finish in product
development or for a product to proceed from raw materials all the
way to the customer.
Value-Creating Time
The time of those work elements that actually transform the
product in a way that the customer is willing to pay for. Usually,
value-creating time is less than cycle time, which is less than
production lead time.
See: Value.

12
 Cycle Time
Cycle Time (CT)

Cycle Time (CT)

How often a part or product
actually is completed by a process,
as timed by observation. Also, the
time it takes an operator to go
through all work elements before
repeating them.
Value-Creating Time

Value-Creating Time (VCT)

Time of those work elements that
actually transform the product
in a way that the customer is
willing to pay for.

Production Lead Time

Production Lead Time (PLT)

The time it takes one piece to
move all the way through a
process or a value stream, from
start to finish. Envision timing a
marked part as it moves from
beginning to end.
or

Usually: VCT < CT < PLT

13
Dashboard

Dashboard
A one-page measurement tool comprising the critical few end-of-pipe
(downstream) and process (upstream) measures related to a strategy
or action plan (see illustration on p. 15). It helps a leader check and
adjust a plan and provides real-time measures for real-time feedback.
Value-stream maps and dashboards are complementary tools:
Maps raise critical questions to be addressed during the plan
phase of the plan-do-check-act cycle. Dashboards raise questions
for leaders to address during the check and act phases. (Adapted
from Dennis 2006, p. 62.)
See: Plan, Do, Check, Act (PDCA), Value-Stream Mapping

Demand Amplification
The tendency in any multistage process for production orders
received by each upstream process to be more erratic than actual
production or sales at the next downstream process. This also is
called the Forrester Effect (after Jay Forrester at MIT who first
characterized this phenomenon mathematically in the 1950s) and
the Bullwhip Effect.
The two main causes of demand amplification as orders move
upstream are: (a) The number of decision points where orders can
be adjusted; and (b) delays while orders wait to be processed and
passed on (such as waiting for the weekly run of the Material
Requirements Planning system). The longer the delays, the greater
the amplification as more production is determined by forecasts
(which become less accurate the longer the forecasting horizon)
and as more adjustments are made to the orders (by system
algorithms adding “just-in-case” amounts).
Lean Thinkers strive to use leveled pull systems with frequent
withdrawals for production and shipping instructions at each stage
of the value stream in order to minimize demand amplification.
The demand amplification chart on p. 16 shows a typical situation
in which the variation in demand at the customer end of the value
stream (Alpha) is modest, about +/-3% during a month. But as
orders travel back up the value stream through Beta and Gamma
they become very erratic until Gamma’s orders sent to its raw
materials supplier vary by +/-35% during a month.

14
 Dashboard

Example of a dashboard.

15
Demand Amplification

Demand Amplification Chart

% variation Demand Amplification

x
35
30
x
25 x
20
x
15
x
10
5 x

GAMMA GAMMA BETA BETA ALPHA ALPHA

ORDER PRODUCTION ORDER PRODUCTION ORDER PRODUCTION

The demand amplification chart is an excellent way to raise

consciousness about the degree of amplification present in a
production system. If demand amplification could be completely
eliminated, the variation in orders at every point along this value
stream would be +/-3%, reflecting the true variation in customer
demand.
See: Build-to-Order, Heijunka, Level Selling.

Design-In
Collaboration between a customer and a supplier to design both
a component and its manufacturing process.
Typically the customer provides cost and performance targets
(sometimes called an envelope) with the supplier doing detailed
design of the component and manufacturing process (tooling, layout,
quality, etc.). The supplier often stations a resident engineer at the
customer to ensure that the component will work properly with the
completed product to minimize total cost.
Design-in contrasts with work-to-print approaches in which the
supplier simply is given a complete design and told to tool and
produce it.
See: Resident Engineer.

16
 Efficiency
Downtime
Production time lost due to planned or unplanned stoppages.
Planned downtime includes scheduled stoppages for activities such
as beginning-of-the-shift production meetings, changeovers to
produce other products, and scheduled maintenance. Unplanned
downtime includes stoppages for breakdowns, machine adjustments,
materials shortages, and absenteeism.
See: Overall Equipment Effectiveness, Total Productive Maintenance.

Efficiency
Meeting exact customer requirements with the minimum amount
of resources.
Apparent Efficiency vs. True Efficiency
Taiichi Ohno illustrated the common confusion between apparent
efficiency and true efficiency with an example of 10 people producing
100 units daily. If improvements to the process boost output to 120
units daily, there is an apparent 20 percent gain in efficiency. But
this is true only if demand also increases by 20 percent. If demand
remains stable at 100 the only way to increase the efficiency of the
process is to figure out how to produce the same number of units
with less effort and capital. (Ohno 1988, p. 61.)

Current state — 10 operators 100 pieces

“But I only need
100 pieces!”

Apparent efficiency — 10 operators 120 pieces

customer

True efficiency — 8 operators 100 pieces

17
Efficiency

Total Efficiency vs. Local Efficiency

Toyota also commonly distinguishes between total efficiency,
involving the performance of an entire production process or value
stream, and local efficiency, involving the performance of one point
or step within a production process or value stream. It emphasizes
achieving efficiency in the former over the latter.
See: Overproduction, Seven Wastes.

Error-Proofing
Methods that help operators avoid mistakes in their work caused
by choosing the wrong part, leaving out a part, installing a part
backwards, etc. Also called mistake-proofing, poka-yoke (error-
proofing) and baka-yoke (fool-proofing).
Common examples of error-proofing include:
• Product designs with physical shapes that make it impossible
to install parts in any but the correct orientation.
• Photocells above parts containers to prevent a product from
moving to the next stage if the operator’s hands have not
broken the light to obtain necessary parts.

A contact-type error-proofing device.

18
 First In, First Out (FIFO)
• A more complex parts monitoring system, again using photocells,
but with additional logic to make sure the right combination of
parts was selected for the specific product being assembled.
See: Inspection, Jidoka.

Every Product Every Interval (EPEx)

The frequency with which different part numbers are produced in
a production process or system.
If a machine is changed over in a sequence so that every part
number assigned to it is produced every three days, then EPEx
is three days. In general, it is good for EPEx to be as small as
possible in order to produce small lots of each part number and
minimize inventories in the system. However, a machine’s EPEx
will depend on changeover times and the number of part numbers
assigned to the machine. A machine with long changeovers (and
large minimum batch sizes) running many part numbers will
inevitably have a large EPEx unless changeover times or the
number of part numbers can be reduced.
See: Heijunka.

Fill-Up System
A pull production system in which preceding (supplier) processes
produce only enough to replace—or fill up—product withdrawn by
following (customer) processes.
See: Kanban, Pull Production, Supermarket.

First In, First Out (FIFO)

The principle and practice of maintaining precise production and
conveyance sequence by ensuring that the first part to enter a
process or storage location is also the first part to exit. (This ensures
that stored parts do not become obsolete and that quality problems
are not buried in inventory.) FIFO is a necessary condition for pull
system implementation.

19
First In, First Out (FIFO)

STOP
! FULL?

max. 5 pieces Downstream

Upstream
Process Process

FIFO Lane

An example of a FIFO lane with five pieces in the lane.

The FIFO sequence often is maintained by a painted lane or physical

channel that holds a certain amount of inventory. The supplying
process fills the lane from the upstream end while the customer
process withdraws from the downstream end. If the lane fills up, the
supplying process must stop producing until the customer consumes
some of the inventory. This way the FIFO lane can prevent the
supplying process from overproducing even though the supplying
process is not linked to the consuming process by continuous flow
or a supermarket.
FIFO is one way to regulate a pull system between two decoupled
processes when it is not practical to maintain an inventory of all
possible part variations in a supermarket because the parts are
one-of-a-kind, have short shelf lives, or are very expensive but
required infrequently. In this application, the removal of the one
part in a FIFO lane by the consuming process automatically triggers
the production of one additional part by the supplying process.
See: Kanban, Pull Production, Supermarket.

20
 Five Ss
Five Ss
Five related terms, beginning with an S sound, describing workplace
practices conducive to visual control and lean production. The five
terms in Japanese are:
1. Seiri: Separate needed from unneeded items—tools, parts,
materials, paperwork—and discard the unneeded.
2. Seiton: Neatly arrange what is left—a place for everything
and everything in its place.
3. Seiso: Clean and wash.
4. Seiketsu: Cleanliness resulting from regular performance
of the first three Ss.
5. Shitsuke: Discipline, to perform the first four Ss.

The Five Ss often are translated into English as Sort, Straighten,

Shine, Standardize, and Sustain. Some lean practitioners add a
sixth S for Safety: Establish and practice safety procedures in the
workshop and office.

21
Five Ss

However, Toyota traditionally refers to just Four Ss:

1. Sifting (Seiri): Go through everything in the work area,
separating and eliminating what isn’t needed.
2. Sorting (Seiton): Arrange items that are needed in a neat and
easy-to-use manner.
3. Sweeping Clean (Seiso): Clean up the work area, equipment,
and tools.
4. Spic and Span (Seiketsu): The overall cleanliness and order that
result from disciplined practice of the first three Ss.

The last S—shitsuke (sustain)— is dropped because it becomes

redundant under Toyota’s system of daily, weekly, and monthly
audits to check standardized work. Whether four, five, or six Ss are
used, the key point to remember is that the effort is systematic and
organic to lean production, not a “bolt-on” stand-alone program.
See: Standardized Work.

Five Whys
The practice of asking why repeatedly whenever a problem is
encountered in order to get beyond the obvious symptoms to
discover the root cause.
For instance, Taiichi Ohno gives this example about a machine
that stopped working (Ohno 1988, p. 17):
1. Why did the machine stop?
There was an overload and the fuse blew.
2. Why was there an overload?
The bearing was not sufficiently lubricated.
3. Why was it not lubricated?
The lubrication pump was not pumping sufficiently.
4. Why was it not pumping sufficiently?
The shaft of the pump was worn and rattling.
5. Why was the shaft worn out?
There was no strainer attached and metal scraps got in.

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 Fixed-Position Stop System
Without repeatedly asking why, managers would simply replace
the fuse or pump and the failure would recur. The specific number
five is not the point. Rather it is to keep asking until the root cause
is reached and eliminated.
See: Kaizen; Plan, Do, Check, Act (PDCA).

Fixed-Position Stop System

A method of addressing problems on assembly lines by stopping
the line at the end of the work cycle—that is, at a fixed position—if
a problem is detected that cannot be solved during the work cycle.
In the fixed-position stop system, an operator discovering a problem
with parts, tools, materials supply, safety conditions, etc., pulls a
rope or pushes a button to signal the supervisor. The supervisor
assesses the situation and determines if the problem can be fixed
before the end of the current work cycle. If the problem can be
fixed, the supervisor resets the signal system so the line doesn’t
stop. If the problem can’t be corrected within the remainder of the
cycle time, the line stops at the end of the work cycle.

Fixed-position stop system.

23
Fixed-Position Stop System

The fixed-position stop system was pioneered by Toyota to solve

three problems: (1) The reluctance of production associates to pull
the signal cord if the entire line would be stopped immediately;
(2) unnecessary line stoppages to deal with minor problems that
could be resolved within one work cycle; and (3) the need to stop
the line at the end of a work cycle rather than mid-way through the
cycle to avoid the confusion—plus the quality and safety problems—
inherent in restarting work tasks part of the way through a cycle.
The fixed-position stop system is a method of jidoka, or building in
quality, on manual processes along moving assembly lines.
See: Andon, Automatic Line Stop, Jidoka.

Flow Production
The production system Henry Ford introduced at his Highland Park,
Michigan, plant in 1913.
The objective of flow production was to drastically reduce product
throughput time and human effort through a series of innovations.
These included consistently interchangeable parts so that cycle
times could be stable for every job along an extended line, the line
itself, the reconfiguration of part fabrication tasks so that machines
were lined up in process sequence with parts flowing quickly and
smoothly from machine to machine, and a production control
system insuring that the production rate in parts fabrication
matched the consumption rate of parts in final assembly.
See: Continuous Flow.
Compare: Mass Production.

Four Ms
The variables that a production system manipulates to produce
value for customers. The first three are resources, the fourth is the
way the resources are used.
In a lean system, the Four Ms mean:
1. Material—no defects or shortages.

24
 Gemba
2. Machine—no breakdowns, defects, or unplanned stoppages.
3. Man—good work habits, necessary skills, punctuality, and
no unscheduled absenteeism.
4. Method—standardized processes, maintenance, and
management.

Fulfillment Stream
A supply chain that embodies the principles of lean and therefore
flows collaboratively and smoothly like a stream rather than operating
as a group of connected links.
The lean fulfillment stream relentlessly focuses on lead-time
reduction by eliminating all nonvalue-creating activities (waste)
among suppliers and producers that collaboratively create a product.
This is accomplished through rigorous process discipline, inventory
reduction, and first-time quality. The lean fulfillment stream flows
to the demand of the customer; all supply stream activities are
triggered by pull. The goal of the lean fulfillment stream is to
deliver the highest value to the customer at the lowest total cost
to stakeholders. (Adapted from Martichenko and Von Grabe 2008.)

Future-State Map
See: Value-Stream Mapping (VSM).

Gemba
The Japanese term for “actual place,” often used for the shop
floor or any place where value-creating work actually occurs; also
spelled genba.
The term often is used to stress that real improvement requires a
shop-floor focus based on direct observation of current conditions
where work is done. For example, standardized work for a
machine operator cannot be written at a desk in the engineering
office, but must be defined and revised on the gemba.

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Genchi Genbutsu

Genchi Genbutsu
The Toyota practice of thoroughly understanding a condition by
confirming information or data through personal observation at
the source of the condition.
For example, a decision maker investigating a problem will go
to the shop floor to observe the process being investigated and
interact with workers to confirm data and understand the situation,
rather than relying solely on computer data or information from
others. The practice applies to executives as well as managers. In
Japanese, genchi genbutsu essentially means “go and see” but
translates directly as “actual place and actual thing.”
See: Gemba.

Greenfield
A new production facility providing the opportunity to introduce
lean working methods in a new work culture where the inertia of
the past is not a barrier.
Compare: Brownfield.

Group Leaders
At Toyota, these are the front-line supervisors who typically lead a
group of four teams or 20 workers; called kumicho in Japanese
(see illustration on p. 27).
A group leader’s duties, among others, include planning
production, reporting results, coordinating improvement activities,
scheduling vacation and manpower, developing team members,
testing process changes, and performing daily audits of team
leaders to make sure they have done their standard work audits of
team members. They also do a weekly Five S audit of their teams’
work areas.
See: Five Ss, Team Leader.

26
 Hansei
Location of Group Leaders in Typical Chain of Responsibility

Operators

Group Leaders

Supervisor

Area
Manager

Plant
Manager

Hansei
The continuous improvement practice of looking back and thinking
about how a process or personal shortcoming can be improved;
the Japanese term for “self-reflection.”
In the Toyota Production System, hansei or reflection meetings
typically are held at key milestones and at the end of a project to
identify problems, develop countermeasures, and communicate the
improvements to the rest of the organization so mistakes aren’t
repeated. Thus, hansei is a critical part of organizational learning
along with kaizen and standardized work. It sometimes is
compared to “check” in the plan-do-check-act improvement cycle.
See: Kaizen; Plan, Do, Check, Act; Standardized Work; Toyota
Production System (TPS).

27
Heijunka

Heijunka
Leveling the type and quantity of production over a fixed period of
time. This enables production to efficiently meet customer demands
while avoiding batching and results in minimum inventories, capital
costs, manpower, and production lead time through the whole
value stream.
With regard to level production by quantity of items, suppose that
a producer routinely received orders for 500 items per week, but
with significant variation by day: 200 arrive on Monday, 100 on
Tuesday, 50 on Wednesday, 100 on Thursday, and 50 on Friday.
To level production, the producer might place a small buffer of
finished goods near shipping, to respond to Monday’s high level
of demand, and level production at 100 units per day through the
week. By keeping a small stock of finished goods at the very end of
the value stream, this producer can level demand to its plant and
to its suppliers, making for more efficient utilization of assets along
the entire value stream while meeting customer requirements.
With regard to leveling production by type of item, as illustrated on
the next page, suppose that a shirt company offers Models A, B, C,
and D to the public and that weekly demand for shirts is five of
Model A, three of Model B, and two each of Models C and D. A
mass producer, seeking economies of scale and wishing to
minimize changeovers between products, would probably build
these products in the weekly sequence A A A A A B B B C C D D.
A lean producer, mindful—in addition to the benefits outlined
above—of the effect of sending large, infrequent batches of orders
upstream to suppliers, would strive to build in the repeating
sequence A A B C D A A B C D A B, making appropriate production
system improvements, such as reducing changeover times. This
sequence would be adjusted periodically according to changing
customer orders.
In Japanese, the word heijunka means, roughly, “levelization.”
See: Demand Amplification; Every Product Every Interval (EPEx);
Just-in-Time (JIT); Muda, Mura, Muri; SMED.

28
 Heijunka Box
Heijunka by Product Type

PRODUCT
Customer demand per week
Model A
plain t-shirt

Model B
t-shirt with pocket

Model C
t-shirt with v-neck

Model D
t-shirt with v-neck
and pocket
PRODUCTION
SEQUENCE

Mass producer A A A A A B B B C C D D

Lean producer A A B C D A A B C D A B

(Note that this example does not address heijunka by production quantity.)

Heijunka Box
A tool used to level the mix and volume of production by distributing
kanban within a facility at fixed intervals. Also called a leveling box.
In the illustration of a typical heijunka box (see p. 30), each horizontal
row is for one type of product (one part number). Each vertical
column represents identical time intervals for paced withdrawal of
kanban. The shift starts at 7:00 a.m. and the kanban withdrawal
interval is every 20 minutes. This is the frequency with which the
material handler withdraws kanban from the box and distributes
them to production processes in the facility.

29
Heijunka Box

Whereas the slots represent the material and information flow timing,
the kanban in the slots each represent one pitch of production for
one product type. (Pitch is the takt time multiplied by the pack-out
quantity.) In the case of Product A, the pitch is 20 minutes and
there is one kanban in the slot for each time interval. However, the
pitch for Product B is 10 minutes, so there are two kanban in each
slot. Product C has a pitch of 40 minutes, so there are kanban in
every other slot. Products D and E share a production process with
a pitch of 20 minutes and a ratio of demand for Product D versus
Product E of 2:1. Therefore, there is a kanban for Product D in the
first two intervals of the shift and a kanban for Product E in the
third interval, and so on in the same sequence.
Used as illustrated, the heijunka box consistently levels demand by
short time increments (instead of releasing a shift, day, or week’s
worth of demand to the floor) and levels demand by mix (for example,
by ensuring that Product D and Product E are produced in a steady
ratio with small batch sizes).
See: Every Product Every Interval (EPEx), Heijunka, Kanban, Material
Handling, Paced Withdrawal, Pitch.

700 720 740 800 820 840 900 920

one row per

product type

kanban
Example of a heijunka box.

30