Terms from A-Z

The term Lean derives from the improvement methodologies developed, refined and applied to the specific business needs of Toyota. These methodologies are commonly referred to as the Toyota Production System (TPS) or the Toyota Business System. In its entirety, TPS has many techniques of implementation, methodologies for deployment and tools for tactical analysis. To be successful, all of the above must be supported by a management philosophy that creates a culture of continuous improvement. This combination of understanding, maturity and tactical skill, when developed and deployed properly, enables performance improvements through the identification and elimination of “waste”.

Simply Lean Management:

To improve your understanding of Lean terminology, this LPM Academy glossary serves.

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ABC analysis

The ABC analysis is an easy-to-use method of situation analysis for focus formation and priority setting. With it concentration relations can be conveyed graphically descriptive (Lorenzkurve). Original application was the determination of characteristic quantities with the income distribution by the American Lorenz. In the material economy the ABC analysis determines the cost portion of the different camp parts of the camp total costs. In manufacturing the materials with the highest cost portion of the product are of interest. In marketing and selling it applies to make the few articles out, which bring together a high turnover portion of the total turnover. (Source: GPM)

Abnormality Management

The ability to detect and correct a malfunction, i.e., any deviation from a standard operating procedure, in a timely manner.(Source: TBM Consulting Group http://www.tbmcg.com/de/about/ terminology.php)

Acceptance

Acceptance is the more or less approving attitude and stance of an individual or group towards an object, subject or other circumstance. (Source: GPM)

Activity node network

Definition according to DIN: The VKN is a network plan according to a procedure in which mainly activities are described and represented by arrows.

Activity-oriented network

Definition according to DIN: The VON is a network diagram that is characterized exclusively by the description of activities (regardless of the form of representation).

Ad hoc team

This team is entrusted with the solution of momentary individual problems and special tasks and works under a time limit. Under this designation fall e.g. the execution team, the evaluation team and under circumstances also the project team. (Source: Schneider: Encyclopedia on Team and Teamwork)

Affinity Diagram

A process to organize disparate language information by placing it on cards and grouping the cards that go together in a creative way. ‚ÄúHeader‚Äù cards are then used to summarize each group of car

Alibi Team

This term applies to a work group whose members, influenced by the hierarchy, submit to the rules and norms at their workplace. Individuality and independence are lost. The token team is not a real team, but a pseudo-team. (Source: Schneider: Lexicon on Team and Teamwork)

Ambiguity Tolerance

The ability to face ambiguous and confusing demands or to cope with an unknown situation. The ability to make rational decisions despite greater uncertainty.

Analogy method

The analogy method belongs to the methods of effort estimation. For this purpose, a comparison of the project to be estimated with similar, completed projects takes place. An analysis of the differences establishes similarities and differences between the projects with regard to the most important influencing factors (project organization, development environment, metrics, etc.). This is followed by an assessment of these in terms of effort and productivity. The estimation accuracy depends on how well one knows the project to be estimated (functional specification) and on the experience in the correct selection and estimation of the influencing factors in the deviation analysis. The basis of the analogy method is extensive experience with similar, completed projects.