Push System

A push system is one in which an upstream process sends work to a downstream process prior to the downstream process requesting it. Batch and queue systems in which large lots are sent to the next workstation to wait in line are push systems. Generally Lean systems attempt to move Read more…

Standards

A standard is a rule or principle that sets a minimum level of acceptable behavior. It is also something to which other things may be compared, such as a breed standard to evaluate dogs, or a measurement standard used to certify meters and testing devices. Standards in business are useful Read more…

Mean (Average)

The average or arithmetic mean (commonly just called the mean) is one of the most common measures of central tendency of a set of data. In layman’s terms, a measure of central tendency is simply a way of trying to describe the middle value of a set of data. The Read more…

Layouts

Facility layouts come in three basic flavors. Unplanned Layouts. Some facilities are not arranged by any master plan. As new machines are needed, they are placed where they will fit. It is fairly uncommon for this method to be used throughout an organization, but many will have a few machines Read more…

Law of Large Numbers

In statistical terms, the law of large numbers is a theorem that postulates that as the size of the sample of a random variable increases, its average will approach the theoretical average. In layman’s terms, the law of large numbers simply says that over time, the more times you roll Read more…

Investments in People

Investments trade current resources for future gains. The most common forms of investment include: Financial holdings designed to provide a return on investment (ROI) in the form of appreciation, dividends, or interest. Physical holdings intended to appreciate or generate income, such as real estate Physical items used to create other Read more…