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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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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

see Retrograde scheduling

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)

BDU

Federal Association of German Management Consultants

Benchmarking

Definition according to Heib and Daneva: Benchmarking is a management tool for determining and delimiting organizational change. It is the continuous evaluation of one's own corporate objects by comparison with best-in-class or with quantified standards. Benchmarking aims at securing or regaining a company's own competitiveness.

Black box method

The black box method is used to make the complexity of systems manageable. The system is considered as a black box by ignoring its inner structure. The control mechanism within the object under consideration is built into the overall system as a black box, unless one knows how it works or it is opaque. By considering the logical and statistical relationships between the input information (input) and the output variables (output), one tries to draw conclusions about the opaque or invisible control within the black box. This leads to a reduction of the manifold conceivable behaviors to a small selection. (Source: GPM)

Bottleneck

Work areas or stations in manufacturing that reduce production throughput.

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