Manufacturing glossary of terms

Unlock the secrets of manufacturing with our glossary of terms developed over 40 years by George Donaldson, Shingo Prize recipient! Take a deep dive into industry jargon. Don't wait! Master your industry knowledge NOW!

The story of how this glossary was created and has evolved, in the words of author George Donaldson.

This glossary’s roots began in 2010 when I worked with Newsprinters Eurocentral Ltd. I noticed less emphasis on the practice and principles of Organisational Excellence in manufacturing and more on the language used to describe them.

Of course, people then became concerned about learning vast amounts of new words rather than paying attention to what they meant. Many terms also came about in the 1950s, and their original definitions weren’t applicable today. What we needed was a single reference point – a glossary. So, that’s what I created.

As I moved away from Newsprinters Eurocentral Ltd and worked with other businesses, I expanded the glossary to include all models and other tools and techniques. I was teaching courses in Continuous Improvement and realised manufacturing needed to be demystified; students were often overwhelmed with various acronyms.

Then, as manufacturing became about more than just improvement – and about leadership, management, and psychology too – the glossary grew once more. It now includes theories from the likes of Maslow, Herzberg, and McGregor, and even modern theorists such as Sinek. I’ve also included the GROW model to reflect manufacturing’s focus on developing people through coaching and mentoring.

Manufacturing is much more holistic today. And this glossary echoes that. Sitting at over 300 definitions, you’ll be able to find any term you need to achieve Organisational Excellence in the modern world.

Good luck on your journey.

Hawthorne Experiments

The Hawthorne Experiments (1924–1932) were commissioned studies (a series of experiments) at the Western Electric Hawthorne Factory. The experiments were designed to improve productivity of the workforce (48,000). The outcome of this study suggests that a worker’s performance improved due to being observed or there being an increased attention/focus on the worker. This is now known as the Hawthorne effect, or observer effect.

Heijunka

Heijunka is a Japanese word that means production levelling, also known as production smoothing. It is a technique for reducing the Mura, which in turn, reduces Muda. It was vital to the development of production efficiency in the Toyota production system and Lean manufacturing.

(See Mura - Muda - 7 Wastes)

Hersey and Blanchard
Situational Leadership

The Hersey-Blanchard Situational Leadership Theory was introduced in 1969. It has two pillars: leadership style and the maturity level of those being led. To Hersey and Blanchard, these leadership styles stem from four basic behaviours, designated with a letter-number combination:

S-1: Directing - telling.

S-2: Coaching - selling.

S-3: Supporting - participating.

S-4: Delegating.

Four maturity levels of the group are posited by Hersey and Blanchard, with letter designations:

M-1: basic incompetence or unwillingness in doing the task.

M-2: inability to do the task but willing to do so.

M-3: competent to do the task but do not think they can.

M-4: the group is ready, willing and able to do the task.

According to Hersey, ability level and willingness to do work can be cultivated by a good leader by raising the level of expectations. Blanchard overlays four permutations of competency-commitment, again with a letter designation:

D1: low competence and low commitment.

D2: low competence and high commitment.

D3: high competence and low/variable commitment.

D4: high competence and high commitment.

(See Blanchard’s ABCD Trust Model)

Herzberg (Frederick)

Frederick Herzberg (1923–2000) was an American psychologist who became one of the most influential names in business management. He is most famous for introducing job enrichment and the two-factor theory, or the motivation hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction.

(See Herzberg’s Two-Factor Motivation Theory - McGregor’s Theory X and Theory Y - Maslow’s Hierarchy of Human Needs - Motivation)

Herzberg’s Two Factor Theory

According to Herzberg’s Two Factor Theory, also known as the motivation hygiene theory, two different factors govern job dissatisfaction (the opposite being not dissatisfied) - which is related to intrinsic motivational factors - and job dissatisfaction (the opposite being not dissatisfied) - which is related to extrinsic factors or what Herzberg called hygiene factors.

Hygiene factors (extrinsic motivators) include:

Pay: the pay or salary structure should be appropriate and reasonable. Company and administrative policies: the company policies should not be too rigid - they should be fair and clear.

Company benefits: the employees should be offered family health care plans, employee help programmes.

Physical working conditions: the working conditions should be safe, clean and hygienic. Status: the employees’ status within the organisation should be familiar and retained.

Interpersonal relations: the relationship of the employee with their peers, superiors and subordinates should be respectable.

Job security: the organisation must provide job security to the employees.

Motivation factors include:

Recognition: the employees should be recognised for their accomplishments by their managers and leaders.

Sense of achievement: the employees must have a sense of achievement.

Growth and promotional opportunities: there must be growth and advancement opportunities in an organisation to motivate the employees to perform well.

Responsibility: the employees must hold themselves responsible for the work - the managers should give them ownership of the work.

Meaningfulness of the work: the work itself should be meaningful, interesting and challenging for the employee to perform and be motivated by.

(See Herzberg (Frederick) - McGregor’s Theory X and Theory Y - Maslow’s Hierarchy of Human Needs - Motivation)

Hiatt’s ADKAR Change
Model

Prosci founder Jeff Hiatt is an entrepreneur and author who created the ADKAR model. It was derived from research he performed and additionally presented in his book ADKAR: A Model for Change in Business, Government and our Community. He also authored other books, such as Change Management: The People Side of Change, The Perfect Change and Survival Guide to Change.

The ADKAR Change Model was developed and introduced in 1998 by Hiatt after studying the change patterns of more than 700 organisations.

The model is founded on 2 basic ideas:

It is people who change, not organisations.
Successful change occurs when individual change matches the stages of organisational change.

For successful change to occur at the individual level, people need to move through each of these stages:

Awareness: of the need for change.

Desire: to make the change happen.

Knowledge: about how to change.

Ability: to implement new skills and behaviours.

Reinforcement: to retain the change once it has been made.

Hidden Factory

The Hidden Factory was a concept introduced in the 1970s by Armand Feigenbaum and primarily focused on the cost of poor quality and rework and all the additional activities or steps in the process that add costs and waste to the organisation. In many organisations, these activities are generally accepted as ‘part of doing the job’ and are not hidden from the business but the costs are unknown and this does not add value for the customer. Today, the Hidden Factory is the term generally used to describe any work activities and (sometimes) complete processes that are not part of the core business and are not paid for by the customer.

It does not mean that they are hidden from us but they are accepted by us as part of our business - ‘the way it’s always been’. They include:

Workarounds.
Rework.
Storage of defects.
Scheduling losses.
Equipment downtime.
Seven wastes.
Accidents.
Stock levels.
Unnecessary procedures.

(See 7 Wastes - Value Work Type)

High Performance
Teams Characteristics PERFORM

The PERFORM Characteristics of a High Performance Team model identifies seven characteristics:

Purpose and values: a high performing team shares a strong sense of purpose and a set of common values. They are clear about what their work is and why it is important. The purpose is what focuses energy and drives interdependence and performance.

Empowerment: policies, rules and procedures enable the team to do their work easily. The team has access to relevant information and resources. They have the skills necessary to succeed or at least know how to get them. The team’s decision-making practices, scope of authority and accountability strategies are clear. They have the autonomy, opportunity and ability to experience their personal and collective power.

Relationships and communication: this is the lifeblood of the team Team members feel like they can take risks and share their thoughts, opinions and feelings without fear. Listening is considered as important as speaking. Differences are truly valued and if differences lead to conflict, the team is skilled in dealing with it in a way that maintains human dignity. Trust and mutual respect are high. They care and depend on each other.

Flexibility: the team has the ability to adapt to constantly changing conditions and demands. Roles are shared and team members back one another up. Everyone shares in team development and leadership. Strengths are identified and used. The team engages in both hard work and fun. Feelings, as well as opinions, are valued.

Optimal productivity: a high performance team is committed to producing significant results. There is a commitment to high standards and quality. They take great pride in meeting deadlines, achieving goals and getting the job done. There is striving for continual improvement. They have effective decision and problem-solving methods to enhance creativity and participation. Everyone carries their weight and holds each other accountable. They take great pride in team accomplishment.

Recognition and appreciation: recognition and appreciation is the responsibility of all team members and the leader. The organisation recognises and values the team contribution. Individual and team accomplishments are recognised. Milestones are celebrated. Team members feel highly regarded in the team.

Morale: morale is the sense of pride and satisfaction that comes from belonging to the team and accomplishing its work. Team members are confident and enthusiastic. There is a sense of optimism about the future. Team spirit is high.

(See High Performance Teams - Team Dynamics - Belbin’s Nine Team Roles - Honey’s Five Team Roles - Team Maturity Continuum - High Performance Teams Characteristics SUCCEEDS)

High Performance
Teams Characteristics SUCCEEDS

The SUCCEEDS Characteristics of a High Performance Team model identifies eight characteristics:

Sense of purpose: HPTs are crystal clear about their shared purpose and goals. Understanding: each member understands their role and contribution and how the team contributes to the organisation.

Commitment: the team receives regular feedback on its progress, is aware that its contribution is valued and therefore, feels motivated and encouraged to contribute.

Collaborative: the team supports and collaborates with each other, sharing knowledge and ideas. Team members work flexibly to complete tasks.

Empowered: team members have the necessary information, resources and skills required to complete their work. They are empowered within defined limits to make decisions and take actions as required.

Experiences: team members are skilled and knowledgeable, prepared to share experiences and actively participate in solving issues and promoting good practice.

Developing: high performing teams are receptive to new ideas and seek to develop their working practices.

Success: the team is proud of its successes and ensures that credit is shared.

(See High Performance Teams - Team Dynamics

High Performance Teams

A High Performance Team can be defined as a group of people with specific roles and complementary talents and skills, aligned with and committed to a common purpose.

They demonstrate high levels of trust, collaboration and innovation and consistently deliver their objectives.

(See High Performance Teams Characteristics PERFORM - High Performance Teams Characteristics SUCCEEDS - Lencioni’s Five Dysfunctions of a High Performance Team)

Histogram

A histogram is a form of bar chart where measurements are grouped together into bins (buckets) and arranged in order of magnitude. The histogram is used to illustrate the frequency distribution (shape) of data.

Honey and Mumford’s Learning Styles

Based on their research, Peter Honey and Alan Mumford introduced their Learning Styles model in 1986. The model identified that there are four different styles that people use to learn something new:

Activists: individuals who learn by doing.

Reflectors: individuals who learn by watching and contemplating what happened.

Theorists: these learners get a kick out of the chance to comprehend the hypothesis behind the activities.

Pragmatists: these individuals have the capacity to perceive how to put the learning into practice in their present reality.

Honey’s Five Team Roles

Peter Honey is a psychologist, management consultant, and author. He has worked with Ford Motor Company and British Airways. Honey and Alan Mumford collaborated to create the learning styles.

Honey suggests that there are Five Team Roles:

The leader: who ensures that the team has clear objectives and makes sure everyone is involved and committed.
The challenger: who questions effectiveness and presses for improvement and results.
The doer: who urges the team to get on with the job in hand and does practical tasks.
The thinker: who produces carefully considered ideas and weighs up and improves ideas from others.
The supporter: who eases tension and maintains team harmony.

(See Honey and Mumford’s Learning Styles - Belbin’s Nine Team Roles)

Hoshin Kanri

Hoshin Kanri is the Japanese term used for policy deployment or strategic planning. This process visually shows how a company’s strategic objectives are passed down through all levels of the business and how all staff and resources are aligned to meet these objectives. (See Policy Deployment)

ISO

International Standards Organisation.

(See IBMS – ISO 9001 – ISO 14001 – ISO 18001)

ISO 14001

ISO 14001:2015 is the environmental management system.

In general terms, the planning element of this standard looks at how what we produce or the service we provide impacts on the environment. Or, how the aspects of our work impact on the environment and how we meet the legal and other requirements and auditing against those requirements.

(See ISO – IBMS - Audit)

ISO 45001

ISO 45001: 2018 replaced the old BS OHSAS 18001:2007 health and safety management system.

In general terms, the planning element of this standard looks at how/what we produce or the service we provide impacts on our health, safety and wellbeing. Or, how the aspects of our work impact on our health and safety and ensures that we have taken steps to eliminate or reduce potential risks and how we meet the legal and other requirements and auditing against those requirements.

(See ISO - IBMS - Audit)

ISO 9001

ISO 9001:2015 is the quality management system.

In general terms, the planning element of this standard looks at documenting the minimum requirement to deliver what we produce or the service we provide. It involves documenting what we do, doing what we document and then auditing against those requirements. (See ISO - IBMS - Audit)

Industrial Revolutions

The Industrial Revolution takes us from farms to factories and craftsman to machines. The first revolution was said to have started in Great Britain in the 18th century and was predominantly in the textile industries.

1st Revolution (mechanisation) - the introduction of powered machines (steam engines). Energy: water, coal and steam.

2nd Revolution (mass production) - the introduction of the internal.

combustion engine (cars and planes). Energy: electricity, gas and oil.

3rd Revolution (automation) - the introduction of electronics, computers and robots (rockets). Energy: nuclear.

4th Revolution (cyber physical) - the introduction of the Internet. Energy: renewable sources.

Integrated Business
Management System (IBMS)

The Integrated Business Management System (or Business Management System) is the management system that integrates all three ISO standards (9001,14001 & 18001).