| Lean Tool | Definition | Example |
|---|---|---|
| 5S | A workplace organization method (Sort, Set in order, Shine, Standardize, Sustain) to improve efficiency. | Organizing tools in a workstation using labels and visual controls. |
| Kaizen | A continuous improvement philosophy that involves employees in problem-solving and efficiency improvement. | Daily team meetings to suggest small process improvements. |
| Kanban | A visual system for managing workflow and inventory using cards or digital tools. | A board with "To Do," "In Progress," and "Done" sections for tracking tasks. |
| Value Stream Mapping (VSM) | A technique for analyzing the flow of materials and information to identify waste. | Mapping a production process to find bottlenecks and inefficiencies. |
| Just-in-Time (JIT) | Producing only what is needed, when it is needed, to minimize waste and inventory costs. | A car manufacturer receiving parts from suppliers exactly when they are required. |
| Heijunka | A method for leveling production to match demand and reduce fluctuations. | A bakery producing a consistent number of loaves daily instead of large batches. |
| Poka-Yoke | A mistake-proofing technique to prevent defects in processes. | A USB plug that fits only one way to prevent incorrect connections. |
| Takt Time | The available production time divided by customer demand, used to set the pace of work. | An assembly line producing one product every 60 seconds to meet demand. |
| Andon | A system that signals issues in production for immediate resolution. | A light indicator on a factory line that turns red when a machine malfunctions. |
| Gemba Walk | A practice where managers visit the actual worksite to observe and improve processes. | A factory supervisor regularly visiting the shop floor to identify inefficiencies. |
| Standardized Work | Defining the best current method for performing tasks to ensure consistency and efficiency. | Creating step-by-step instructions for assembling a product. |
| Hoshin Kanri | A strategic planning method that aligns company goals with daily operations. | Setting annual objectives and breaking them into monthly improvement projects. |
| SMED (Single-Minute Exchange of Die) | A method to reduce changeover time in production processes. | Reducing the time needed to switch a press machine from 45 minutes to 5 minutes. |
| Total Productive Maintenance (TPM) | A proactive maintenance approach that involves all employees in equipment upkeep. | Operators performing daily checks and minor maintenance on machines. |
| Jidoka (Autonomation) | The principle of building quality into processes by stopping defects at the source. | A sewing machine stopping automatically when a thread breaks. |
| Continuous Flow | Ensuring work moves smoothly through processes without delays or interruptions. | A factory arranging machines in sequence to eliminate waiting time. |
| Root Cause Analysis (5 Whys) | A problem-solving technique that identifies the root cause by asking "Why?" five times. | Investigating a machine breakdown by asking why multiple times to find the cause. |
| Visual Management | Using visual signals to communicate key information quickly and clearly. | A color-coded schedule for shift workers displayed on a board. |
| FIFO (First In, First Out) | A method for processing or storing inventory to ensure older items are used first. | A supermarket arranging milk cartons so older ones are sold first. |
| Cellular Manufacturing | Arranging workstations in a U-shape to improve workflow and reduce movement. | A smartphone assembly line set up in a cell instead of a linear line. |
| KPI (Key Performance Indicators) | Metrics used to measure process performance and effectiveness. | Tracking the number of defects per 1,000 units produced. |
| Mistake Proofing (Error Proofing) | Designing processes to prevent errors before they occur. | A washing machine that does not start if the door is open. |
| Load Balancing (Yamazumi Chart) | Ensuring workload is evenly distributed among workers and machines. | Rearranging tasks on an assembly line so no worker is overwhelmed. |
| Gemba Kaizen | On-site, real-time problem-solving using continuous improvement techniques. | A warehouse team redesigning shelving layout to speed up order picking. |
| IE Metric | Definition | Formula |
|---|---|---|
| Takt Time | The maximum time per unit to meet customer demand. | Takt Time = Available Production Time / Customer Demand |
| Cycle Time | The actual time taken to complete one unit of work. | Cycle Time = Total Time Taken / Number of Units Produced |
| Standard Allowed Minutes (SAM) | The time required to complete a task based on standard conditions. | SAM = (Basic Time + Allowances) * Performance Rating |
| Work Efficiency | The ratio of time spent productively to total time available. | Efficiency = (Standard Time / Actual Time) × 100 |
| Line Efficiency | The effectiveness of a production line in meeting standards. | Line Efficiency = (Total Output × SAM) / (Total Manpower × Total Time Available) × 100 |
| Utilization | The percentage of available time used for production. | Utilization = (Actual Time Worked / Available Time) × 100 |
| OEE (Overall Equipment Effectiveness) | A measure of how effectively a machine is utilized. | OEE = Availability × Performance × Quality |
| Availability | The percentage of time a machine is available for work. | Availability = (Operating Time / Planned Production Time) × 100 |
| Performance | How well a machine runs compared to its maximum speed. | Performance = (Total Output × Ideal Cycle Time) / Operating Time × 100 |
| Quality Rate | The percentage of good products made without defects. | Quality Rate = (Good Units / Total Units Produced) × 100 |
| Man to Machine Ratio (MMR) | The number of operators per machine. | MMR = Number of Operators / Number of Machines |
| Production per Hour | The number of units produced in one hour. | Production per Hour = (Total Output / Total Time) × 60 |
| Machine Utilization | The percentage of time a machine is actively used. | Machine Utilization = (Machine Running Time / Total Available Time) × 100 |
| Labor Productivity | The number of units produced per worker. | Labor Productivity = Total Output / Number of Workers |
| Lead Time | The total time taken from order to delivery. | Lead Time = Order Completion Date - Order Start Date |
| Work in Process (WIP) | The number of unfinished units in production. | WIP = Throughput × Lead Time |
| Throughput Time | The total time required to complete a process. | Throughput Time = Processing Time + Inspection Time + Move Time + Wait Time |
| Bottleneck Utilization | The percentage of time the slowest process is in use. | Bottleneck Utilization = (Bottleneck Operation Time / Total Operation Time) × 100 |
| First Pass Yield (FPY) | The percentage of products made correctly the first time. | FPY = (Number of Good Units / Total Units Produced) × 100 |
| Rolled Throughput Yield (RTY) | The probability of a unit passing through all stages defect-free. | RTY = FPY1 × FPY2 × FPY3 × ... × FPYn |
| Line Balancing Efficiency | The balance of work distribution across all stations. | Line Balancing Efficiency = (Total Work Content / (Number of Workstations × Cycle Time)) × 100 |
| Setup Time (Changeover Time) | The time taken to switch a machine from one job to another. | Setup Time = Time When First Good Part is Produced - Time When Last Good Part of Previous Batch Was Made |
| Inventory Turnover Ratio | The number of times inventory is used in a period. | Inventory Turnover = Cost of Goods Sold / Average Inventory |
| Rework Percentage | The percentage of products that need correction. | Rework % = (Reworked Units / Total Units Produced) × 100 |
| Demand Forecasting | Predicting future demand based on historical data. | Forecast = (Sum of Past Demand / Number of Periods) |
| Cost Per Unit | The total cost incurred to produce one unit. | Cost Per Unit = Total Production Cost / Total Output |
| Type of Allowance | Definition | Standard (Typical Range) |
|---|---|---|
| 1. Personal Allowance | Time given for personal needs like drinking water, restroom breaks, and stretching. | 3% to 5% of shift time |
| 2. Fatigue Allowance | Time added to compensate for physical and mental fatigue caused by work conditions. | 4% to 7% of shift time (higher for heavy work) |
| 3. Delay Allowance | Time given for unavoidable machine delays, supervisor instructions, or minor stoppages. | 3% to 5% of shift time |
| 4. Special Allowance | Time added for infrequent but necessary tasks like tool sharpening or cleaning. | Varies based on the specific task |
| 5. Policy Allowance | Time added based on management policy (e.g., training new workers, work incentives). | Case-specific (depends on company policy) |
| 6. Contingency Allowance | Time added for unexpected but necessary variations in the work process. | Around 5% of total time |
| 7. Worker's Relaxation Allowance | Time added for scheduled breaks to reduce stress in repetitive tasks. | Depends on job nature (10-15 min per 2 hours of work) |
Total Allowance (%) = Personal Allowance + Fatigue Allowance + Delay Allowance + Special Allowance
For example:
If Personal Allowance = 5%, Fatigue = 6%, and Delay = 4%, then:
Total Allowance = 5% + 6% + 4% = 15%
So, if basic time = 50 minutes, then:
Allowed Time = Basic Time × (1 + Allowance%)
= 50 × (1 + 0.15) = 57.5 minutes
This ensures a worker gets enough time to maintain efficiency.
In a production environment, allowances are added to ensure smooth workflow, efficiency, and worker well-being. These allowances account for factors like machine downtime, tool changes, operator fatigue, and unavoidable interruptions.
| Type of Allowance | Definition | Standard (Typical Range) |
|---|---|---|
| 1. Machine Allowance | Time given for machine warm-up, breakdowns, or maintenance. | 3% to 7% of machine running time |
| 2. Tool Change Allowance | Time for changing cutting tools, sharpening, or calibration. | Depends on tool life (e.g., after every 100 cycles) |
| 3. Setup Allowance | Time for setting up machines, fixtures, and workstations before production begins. | Varies (e.g., 10-30 min per shift or batch) |
| 4. Material Handling Allowance | Time given for loading/unloading materials, transporting raw materials, and moving finished goods. | 2% to 5% of total production time |
| 5. Inspection Allowance | Time for quality checks, first-piece inspection, and in-process testing. | 1% to 4% of total time |
| 6. Cleaning & Maintenance Allowance | Time for cleaning machines, workstations, and preventive maintenance. | 3% to 5% of total time |
| 7. Fatigue & Personal Allowance | Time given for worker breaks, restroom use, and reducing fatigue. | 5% to 10% of shift time |
| 8. Rework Allowance | Time added for fixing defects or repairing faulty products. | Depends on defect rate (e.g., 2% to 8%) |
| 9. Downtime Allowance | Time lost due to power failures, supply shortages, or unexpected stoppages. | 5% to 10% of total production time |
| 10. Contingency Allowance | Time given for unexpected variations, unplanned delays, or minor disruptions. | Around 5% of total time |