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.

Browse the glossary using this index

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A

ASP

Application Service ProviderSoftware is offered for rent over the Internet.

Assessment Team

An assessment team decides on personnel issues such as hiring, promotion and salary changes. Since assessing a candidate is a complicated process due to the variety of human aspects that need to be taken into account, the decision is assigned to a homogeneous ad hoc team whose overall judgment (compilation of all individual statements) is more objective and meaningful than the opinion of an individual assessor. (Source: Schneider: Lexicon on Team and Teamwork)

Automatic machine running time

The time it takes a machine to produce a unit, excluding loading and unloading (Source: TBM Consulting Group http://www.tbmcg.com/de/about/ terminology.php)

Autonomation

Automation with a human touch or transferring human intelligence to a machine. This allows the machine to detect abnormalities or defects and stop the process when they are detected. (See also Jidoka).

B

Backflush

The process of automatically decrementing perpetual inventory records, based on the bill of materials of a given product. Normally triggered by shipment and invoicing to a customer, backflushing is used to eliminate wasteful inventory transactions.

Backward calculation


Balanced operation

A plant where all available capacity is precisely matched to demand. (Source: TBM Consulting Group http://www.tbmcg.com/de/about/ terminology.php)

Balanced Plant

A plant where all available capacity is precisely matched to demand. (Source: TBM Consulting Group http://www.tbmcg.com/de/about/ terminology.php)

Balanced Scorecard

The Balanced Scorecard is a management method.

A Balanced Scorecard summarizes that information of a company which is really important for the strategic development. That is why the term cockpit is often used for it.

The Balanced in the Scorecard means balance in three ways:

  1. in the presentation of the company,
  2. in the inclusion of all essential organizational units,
  3. in the communication with all employees.

With the Balanced Scorecard the following five intentions are pursued:

  1. To capture the complexity of business operations
  2. Transparently visualize the company's development in management
  3. To make these strategic goals accessible to every employee
  4. To anchor strategies in the company's daily routine (=> budget)
  5. To adapt strategies to changing circumstances

Source: Balanced Scorecard - LPMAcademy, Christian Bernert


Barrier

Barriers are limit values that may not be exceeded or fallen short of. They define, for example, how many resources are planned for a particular work package. Boundaries are also used for project time and project costs. (Source: GPM)


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