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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P

Pacemaker

A technique used to match a process to cycle time.(Source: TBM Consulting Group http://www.tbmcg.com/de/about/ terminology.php)

Pacemaker

This is a tool that informs the shop worker, foreman, and/or supervisor whether work operations are ahead of or behind schedule.

Pareto Chart

A vertical bar graph showing the bars in descending order of significance, ordered from left to right. Helps to focus on the vital few problems rather than the trivial many. An extension of the Pareto Principle suggests that the significant items in a given group normally constitute a relatively small portion of the items in the total group. Conversely, a majority of the items will be relatively minor in significance, (i.e. the 80/20 rule).

Partial optimization

Machines run at full capacity without interruption, without regard to cost or consequences. In general, this leads to a significant increase in the largest cost item in manufacturing: materials.(Source: TBM Consulting Group http://www.tbmcg.com/de/about/ terminology.php)

Percentage of completion

Definition according to DIN: The percentage of completion is the ratio of the work performed on a given date to the total work performed on an operation or project.

Performance Analysis Board

A board located at the job site on which hourly production targets are recorded along with the actual production achieved. Details concerning problems and abnormal conditions can also be recorded. The supervisor checks the board hourly, takes steps to prevent the re-occurrence of abnormalities, and confirms the positive effects of job site improvements that have been introduced. (See also Visual Management).

Performance Management

Task planning: Recording and evaluation of the planned individual services regarding quantities and qualities in relation to the project definition (specifications) Sequence planning and controlling: Consideration of the technological conditions when determining an optimal sequence of tasks (source GPM)

PERT

PERT - Program Evaluation and Review Technique In the Program Evaluation and Review Technique (PERT), an optimistic, a probable and a pessimistic time estimate are given for each event. This network method is designed as an event node network (EKN) and was developed in 1958 by the US Navy together with the companies Boots and Hamilton and Lockhead. (Source: Mehrmann/ Wirtz)

Pessimistic update

The pessimistic update of a network is based on the formula: No confirmations = No work progress. Before recalculation, the confirmation dates of all started activities are moved to the update date, while the percentage of completion remains unchanged. All open work is postponed behind the update date. Unnecessary shifts occur when an operation has been processed but not confirmed for a long time. (Source: GPM)

Phase Acceptance Report

The result protocol of the phase acceptance meeting is called phase acceptance report. It documents the review of the completed phase with an overview of the phase results and statements on compliance with the phase objectives. It also includes the release of the subsequent phase. This report, for which a specified form is used, must be signed by the decision-making authority/client. (Source: GPM)


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