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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Contractor needsContractor needs are: Efficient handling of projectsMaintenance of
standardsConsideration of overarching aspectsProfitabilitySee also:
Client needs | |
Control Chart | |
Control Element | |
Controlling | |
Core competenceCore competence is the summary of operational qualifications that form the basis for success in the market. | |
Cost managementDetermination of the costs for the individual work packages and
activities as well as for the overall project as a basis for financing,
budgeting and controlling of the
projects (source GPM) | |
Cost targets | |
Cost trend analysisCost trend analysis is a method of controlling project costs that
allows regular estimates to be made of the total cost of a project at the
expected completion date. The center of
the method is the determination of the completion value. The
estimated value of the total costs (SGK) is calculated from the
planned total costs (PGK) calculated in the project cost planning,
the periodically determined actual costs (AIK) and the current
completion value (AFW)
of the work packages, from which the following formula can be
derived: SGK= PGK (AIK/AFW). The AIK/AFW ratio represents a cost increase factor
that is applied to the estimate. The determined estimated value of
the total costs is graphically represented by the cost trend curve,
the values of which must be commented. In addition, comments on the
deviations from the planned costs are required and possible
corrective measures must be attached. The estimated value of the
total project costs is only
a trend assumption,
which assumes that the respective development will continue.
(Source: GPM, Mehrmann/Wirtz) | |
Cost valueThe cost value is an indicator of costs and finances, which can be
compared with the expenditure value of the resource accounting. It
reflects the ratio of costs to the work result: cost
value = costs/work result. (Source:
GPM) | |
Counter MeasuresImmediate actions taken to bring performance that is tracking below
expectations back into the proper trend. Requires root cause analysis. | |