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Pacemaker

An unlinked production environment is like an accordion. Some processes move faster than the average and some operate more slowly. As a result, parts move through the system at varying speeds, only to end up in piles of inventory scattered along the value stream. Even with a takt time in Read more…

Pareto Chart

The Pareto Principle, also known as the 80/20 rule, comes from observations made by a 19th century Italian economist named Vilfredo Pareto. It simply says that just a small number of causes (the critical few), determines the majority of the effects. For example, several difficult clients might take up most Read more…

Pareto Principle

The Pareto principle is the result of the work of the 19th Century economist, Vilfredo Pareto. He realized that wealth in Italy was distributed unevenly, and mathematically proved his observation. Today, the Pareto principle is more commonly known as the 80-20 rule. Simply put, 80 percent of problems are the Read more…

Pareto, Vilfredo

Vilfredo Pareto (July 15, 1848 – August 19, 1923) was an Italian thinker who practiced many disciplines. He was an engineer and philosopher, but he is most well-known for his work in economics. It was his work in that field that led to the development of one of the most Read more…

Parkinson’s Law

Cyril Northcote Parkinson first published this idea in The Economist in 1955. In essence, the concept says that work expands to fill the time available. This is a particular problem in continuous improvement. By definition, there is always something more to do after the task that you are on. If Read more…

Patterns

A pattern is essentially a recurring “thing”. It could be behaviors, defects, markings, traffic, or anything else that can be observed or monitored. The relevance to Lean is that the pattern is caused by something. Pure randomness is actually surprisingly uncommon in nature, and even less common in the workplace. Read more…

Payback Period

Usually used in connection with a capital investment, a payback period is the length of time it will take to recoup the amount of money put into a project. The exact methodology for determining a payback period varies based on the way assumptions are made, and the formula used to Read more…

PDCA Cycle

The PDCA cycle is a structured problem-solving approach. It is also known as the Deming cycle, after Dr. W. Edwards Deming, the man credited with popularizing the Plan-Do-Check-Act cycle. The 4 Steps of the PDCA Cycle include: The plan step of the PDCA cycle entails setting objectives and gathering the Read more…

Peer Pressure

Just like any social group, there is pressure among coworkers to conform to the accepted group dynamic. This has a centering effect on a team. Groups have a tendency to pull individuals from extremes toward the center of a group. Under performing individuals are pressured to pull their own weight, Read more…

Perfection

The concept of perfection provides one of the great philosophical quandaries of Lean. Like most continuous improvement disciplines, Lean promotes the relentless pursuit of waste reduction. It also pushes the concept of zero defects. The problem though, is that perfection is unattainable. No matter how good an operation becomes there Read more…

Playbook, Production

A production playbook is basically a set of alternative options depending upon predictable situations. The most common playbook entries cover operating in unusual staffing or demand situations. One set of plays might clarify what is done when 1, 2, or 3 people are absent, and another set of plays might Read more…

Poka Yoke

A good definition of poka yoke is simply “mistake proofing”. Of note, the term is of Japanese origin and is one of the handful of the more commonly used Japanese terms that have become mainstream in Lean circles. Poka yokes keep processes from producing errors. Preventing errors obviously improves quality, Read more…

Policy Deployment

Policy Deployment is the (usually) annual process of reviewing the strategic goals of an organization and aligning the company’s resources towards meeting those goals. Hoshin Kanri is the Japanese term that means roughly the same. The literal translation, like many foreign words, is open to interpretation, but many versions seem Read more…

Practice

Practice is repeating a task in order to improve your skills. This doesn’t mean that it has to just be an exercise. You can practice doing good Pareto charts by finding opportunities to use them in real situations. Practice is characterized by purpose. That means identifying a gap in a Read more…

Precision

Precision is the state of having low variation. It is often incorrectly used synonymously with accuracy. Accuracy actually means being centered on the target, but can have a very wide spread. Precision is often much harder to achieve than accuracy. That is because variation can be much trickier to adjust Read more…

Predictability

At the heart of standardization is predictability. Standardization provides a predictable pace, predictable quality, and a predictable lead time. This predictability allows managers to make better plans. It allows marketers to make more accurate promises. And it allows employees to have a steady, reasonable pace throughout the day. Core Lean Read more…

Predictive Maintenance

Predictive maintenance is the practice of using data to try to anticipate and avoid machine failures. It differs from preventative maintenance in that it uses checks to identify abnormal conditions before the machine has a problem. Most failures in machines are not immediate, catastrophic failures. Electric motors might show changes Read more…

Preventive Maintenance

Preventive maintenance is the set of steps taken to avoid breakdowns in machines. These steps may include minor activities such as topping off fluids, inspection, lubrication, filter changes, and tightening as needed. It may also include more significant actions such as overhauls, rebuilds, and component replacement. In between those extremes Read more…

Priority Matrix

A priority matrix is a decision-making tool that helps, as the name implies, with prioritization. A common matrix will include the importance of an action (or problem) and the urgency of it. The goal is to work on the tasks that will deliver the biggest bang for the buck first. Read more…

Problem Solving

To understand problem solving, one must first have a clear definition of what a problem actually is. A problem is simply a gap between an expectation and reality. The most common way people look at this relationship is that they focus on a change in performance, meaning that the reality Read more…

Problems

A problem is an unwelcome situation that has a potentially adverse effect. Another way of looking at this is that a problem is a gap between what you think things should be and the reality of what they are. But problems, unfortunately, can mask themselves. Some are simply not obvious. Read more…

Procedures

The generally accepted definition of procedure in a Lean company is that it is the “how” of an operation. It is closely related to the term “process”. A process would be the series of steps required to complete the operation, or the “what”. Think of the acronym SOP, which is Read more…

Process

Processes are the bread and butter of continuous improvement. They are the series of linked actions (or steps, tasks, activities, operations, etc.) performed to reach a specific outcome. Processes take randomness and bring it to order. Imagine what would happen if nobody followed a process when driving. No process for Read more…

Process Flow Chart

A process flow chart is a staple of Lean and other continuous improvement methods. It takes a process and transforms it into a visual representation of the flow of work. This makes it easy to highlight waste, and subsequently eliminate the things that don’t add value. A process flow chart Read more…

Process Improvement

Process improvement is the act of reviewing a specific process to make it Process improvement is the act of reviewing a specific process to make it better. The degree of formality can be minimal, such as an immediate decision to change a method on the fly. This might include moving Read more…

Process Map

A process map is a visual representation of how work flows through an operation. In practical Lean applications, it is often used synonymously with the term process flow chart. The truth though, is that “process map” is a generic term. A process flowchart is just one specific type of process Read more…

Process Metrics

Metrics come in two basic flavors. One option is to measure the results of a process. This confirms that you did the right things and that you are on track. The problem, though, is that results metrics are lagging indicators. The activities that led to these results happened in the Read more…

Producer’s Risk

Producer’s risk is the chance that a good product or batch will be rejected by an inspection. It is also known as Type I error, or alpha error. It is the probability that a batch with quality that exceeds your designated acceptable quality level will actually be rejected. In technical Read more…

Product Family

For the purposes of continuous improvement, a product family is a group of products that follows a similar series of process steps. The value in this type of organization is that it supports flow. Similar products can be combined onto a mixed model production line. Generally speaking, the higher the Read more…

Production Plan

A production plan must answer four basic questions: What are we going to make? What does it take to make it? What do we have? What do we need? The answers to these four questions form the basis of a production plan. 1 A production plan prioritizes the production needs Read more…

Productivity

Productivity is the ratio of output to input. The basic equation is: Productivity = Output / Input When the output is high relative to the inputs, the process is thought of as productive. While there are some standard productivity metrics, such as parts per labor hour, the choice is really Read more…

Profit

Profit is the pile of money that is left over after all the bills are paid and the costs are tallied. There are many different types of profit for accounting purposes (net profit, gross profit, EBITDA). The ultimate goal of any company is to make a profit. It is not Read more…

Projects

A project is a set of interconnected tasks intended to achieve a specific goal. It is characterized by having a fixed end. Projects can be either individual or collaborative in nature. They are often limited by some constraint, usually cost. The practice of running a project is known as project Read more…

Psychology of Lean

Lean tools are relatively simple to implement. Setting up a management system is significantly more complicated, but it is still not the most challenging part of creating a robust continuous improvement culture. That title goes to understanding how improvement and change affects people. Lean psychology is hands-down the hardest aspect Read more…

Pull System

A pull system (or pull production) is one in which items are only made, transferred, shifted, withdrawn, etc., when there is demand from a downstream customer. This sharply contrasts from a push system in which the downstream actions have no impact on what the upstream process is producing. Pull systems Read more…

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…