Lean Glossary
From OEE to Value Stream Mapping: The most important process optimization terms at a glance.
OEE (Overall Equipment Effectiveness)
OEE is the key metric for machine and equipment productivity. It combines availability, performance, and quality into a single percentage value.
Learn more →Takt Time
Takt time is the pace at which a product must be completed to meet customer demand. It is determined by the market, not by the machine.
Learn more →Cycle Time
Cycle time measures how long a single process step actually takes -- from start to finished result. It is the foundation of every process analysis.
Learn more →Lead Time
Lead time measures the total duration from order receipt to delivery -- including all waiting, storage, and transport times. It determines delivery capability.
Learn more →SMED (Single Minute Exchange of Die)
SMED is a method for drastically reducing setup times. Goal: Every changeover in under 10 minutes -- in the single-digit minute range.
Learn more →5S Method
5S is a systematic method for workplace organization and cleanliness. The five steps: Sort, Set in Order, Shine, Standardize, Sustain.
Learn more →Kaizen
Kaizen means 'change for the better' and describes the philosophy of continuous, incremental improvement by all employees -- every day, everywhere.
Learn more →PDCA Cycle
PDCA (Plan-Do-Check-Act) is the fundamental improvement cycle: Plan, Execute, Verify, Standardize. It structures every improvement process into four clear phases.
Learn more →Gemba Walk
Gemba Walk means: Go to the actual place to observe processes with your own eyes. Don't optimize from a desk, but where value creation happens.
Learn more →Value Stream Mapping (VSM)
Value Stream Mapping visualizes the entire material and information flow of a product -- from raw material to customer. It makes waste and bottlenecks visible at a glance.
Learn more →Kanban
Kanban is a visual pull system that controls the flow of work and materials using signal cards. It limits work in process and ensures that production only happens when there is actual demand.
Learn more →Poka-Yoke (Error Proofing)
Poka-Yoke is a design approach that makes errors impossible or immediately detectable. It builds quality into the process rather than relying on inspection after the fact.
Learn more →Andon (Visual Management)
Andon is a visual signaling system that immediately alerts the team when an abnormality occurs. It empowers every worker to stop and fix problems before they escalate.
Learn more →Jidoka (Autonomation)
Jidoka means 'automation with a human touch' -- machines detect abnormalities and stop automatically. It separates human work from machine work and builds quality into the process.
Learn more →Heijunka (Production Leveling)
Heijunka smooths production volume and mix over time to eliminate peaks and valleys. It creates a steady, predictable flow that reduces waste and stress throughout the value stream.
Learn more →Standard Work / Standardized Work
Standard Work documents the current best-known way to perform a task. It defines the sequence, timing, and inventory needed to produce consistent results safely and efficiently.
Learn more →SWIP (Standard Work in Process)
SWIP defines the minimum inventory needed within a process to maintain smooth, uninterrupted flow. It prevents both starvation and overproduction between workstations.
Learn more →Bottleneck Analysis
Bottleneck analysis identifies the process step that limits the throughput of the entire system. The bottleneck determines maximum output -- improving anything else first is waste.
Learn more →Ishikawa / Fishbone Diagram
The Ishikawa diagram organizes potential causes of a problem into categories along a fish-bone structure. It ensures systematic root cause analysis instead of jumping to conclusions.
Learn more →5-Why Analysis
5-Why is a root cause analysis technique that asks 'Why?' repeatedly until the fundamental cause of a problem is uncovered. Simple, fast, and effective for most process problems.
Learn more →Pareto Analysis (80/20 Rule)
Pareto analysis uses the 80/20 principle to identify the vital few causes that create the majority of problems. It ensures improvement efforts focus where they deliver the greatest impact.
Learn more →REFA Time Study
REFA time study is a systematic method for measuring and analyzing work times. It breaks operations into elements and establishes standard times as the basis for planning and improvement.
Learn more →DMAIC (Six Sigma)
DMAIC is the structured problem-solving methodology of Six Sigma. Its five phases -- Define, Measure, Analyze, Improve, Control -- systematically reduce variation and defects in processes.
Learn more →Changeover Time / Setup Time
Changeover time is the duration from the last good part of the previous product to the first good part of the next product. It directly impacts batch sizes, flexibility, and OEE.
Learn more →Downtime
Downtime is any period when a machine or process is not producing although it is scheduled to. It is the primary driver of availability losses in OEE.
Learn more →Throughput
Throughput is the rate at which a system produces finished output. It measures actual productive capacity and is limited by the bottleneck of the process.
Learn more →First Pass Yield (FPY)
First Pass Yield measures the percentage of units that pass through a process correctly the first time, without any rework, repair, or rejection. It reveals the true quality of a process.
Learn more →Scrap Rate / Rejection Rate
Scrap rate measures the percentage of production that is irreparably defective and must be discarded. It directly impacts material cost, OEE quality factor, and environmental waste.
Learn more →Capacity Utilization
Capacity utilization measures the percentage of available production capacity that is actually used. It reveals how well resources are deployed but must be balanced against flexibility.
Learn more →One-Piece Flow
One-Piece Flow means processing and passing one unit at a time through all process steps without batching or waiting between stations. It is the ideal state for minimizing lead time and waste.
Learn more →Ready for better processes?
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