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Business Colleagues

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.

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.

George Donaldson

Term:

Ohno (Taiichi)

Taiichi Ohno (aka the Father of the TPS), 1912–1990, was the key architect of the Toyota production system. The main concepts of the system were to remove or reduce all (seven) wastes and small batch sizes and to flow the product through the complete manufacturing process by:

  1. Right sizing machines for the actual volume needed.

  2. Introducing self-monitoring machines to ensure quality.

  3. Lining the machines up in process sequence.

  4. Quick set-ups enabling each machine to make small volumes of a variety of products (SMED - single minute exchange of dies) performed by operators.

  5. Having each process step notify the previous step of its current needs for materials (Kanban - card system for part delivery).

Ohno also introduced radical c.ell concepts, whereby:

  1. Teams were created with a designated team leader.

  2. Each team had a set of production tasks.

  3. Teams were given responsibility for housekeeping (5S), minor repairs (autonomous maintenance) and quality checks.

  4. Time was set aside for collective continuous improvement (Kaizen).

(See Toyota Production System (TPS) - Shegio Shingo)

Term:

One Point Lesson (OPL)

One Point Lesson is a simple process to clearly communicate an instruction or activity on one A4 page, it involves:

  1. A less than 15-minute lesson.

  2. Simple instructions.

  3. Using senses to describe condition.

  4. Visual Control.

(See Setting Standards - Visual Factory - Visual Controls - Andon)

Term:

Operational Excellence

Operational Excellence is how well people (employees, team members, associates) do the work to maintain or enhance business performance.

Term:

Optimisation

Optimisation is the act of making a process, activity, equipment, as effective and efficient as possible. 

(See Kaizen)

Term:

Organisation

A business organisation can be defined as a systemic approach to utilise a collection of resources (people, money, machines, material, methods, functions, departments, measurements) that are aligned to achieve a common purpose and deliver products and services to meet the customers’ requirements.


(See Organisational Alignment - Organisational Excellence - Organisational Types - Excellence)

Term:

Organisational
Alignment

Organisational Alignment is the process (concept) of creating unity from board room to shop floor (general manager or site director to associates or team members), where everyone in the organisation shares a common vision, values and aims (purpose) for the organisation. All work collaboratively and co-operatively to accomplish the aims and achieve the vision. 


(See Organisation - Strategy Deployment - Purpose - Vision - Values - Aims - Goals)

Term:

Organisational
Excellence

Organisational Excellence can be defined as how well all departments or functions are aligned and how their employees are engaged in improvement to consistently fulfil the organisation’s purpose, achieve superior and sustainable performance, and deliver the customer requirements - either through products or service. 

(See Organisation - Excellence - Organisational Alignment)

Term:

Organisational Chart

The origins of the Organisational Chart are said to have been introduced by George Whistler. An Organisational Chart is used to illustrate (visualise) the structure and hierarchy of the organisation, detailing the functions and/or departments, roles and responsibilities, and the direct and indirect reporting or relationship structures. They often include names, job titles and numbers of employees. 

(See Whistler (George) - Ford (Henry))

Term:

Organisational Types

There are basically six different types or categories of organisation, each is owned, operated, managed and governed differently. They are:

  1. Public limited company (PLC).

  2. Limited company (LTD).

  3. Partnerships.

  4. Sole traders.

  5. Public sector organisations.

  6. Third sector organisations.

Term:

Overall Equipment
Effectiveness (OEE)

Overall Equipment Effectiveness (OEE) is a ‘best practice’ way to monitor and improve the efficiency of your manufacturing processes. It takes the most common and important sources of manufacturing loss and places them into three categories: availability, performance and quality. 

(See Availability - Performance - Quality)

Term:

PDCA

The PDCA cycle (also known as the Deming cycle) is a problem-solving approach/tool to drive continuous improvement (CI). 

The four steps are:


Plan - determine current state, identify root cause, use seven basic quality tools, develop potential solutions and plan to resolve issue and address root cause. 

Do - implement plans and record all data and measurements. 

Check - analyse data and measure to ensure the plan achieved results. Act - if analysis (check) proves the plan as successful, implement standards and systemic changes to underpin improvement and prevent recurrence. If results are unsuccessful, re-do the PDCA cycle.

(See CI - Deming - DMAIC - Problem Solving - SMED)

Term:

PESTLE Analysis

PESTLE is a business analysis framework used to identify key factors that may impact, influence or add risk to the business. It is a mnemonic that denotes: political, economic, social, technological, legal and environmental. When used in the context of the organisation, this analysis tool allows us to take in the bigger picture to guide strategic decision making. 

(See SWOT Analysis)

Term:

Paired Comparison
Analysis

Paired Comparison Analysis is a simple decision-making technique that allows you to choose between several different options by comparing their relative importance.

Term:

Paradigms

Stephen Covey defines paradigms as a pattern, model or representation of the way we see things or the mental image you have in your mind of the way things are. This is our reality and is based or formed from our backgrounds, beliefs and experiences. 


(See Covey (Stephen) - Covey’s 7 Habits of Highly Effective People - Covey’s See - Do - Get Model)

Term:

Pareto Analysis

Vilfredo Pareto, an Italian economist, realised that the wealth in Italy was unevenly distributed and mathematically proved his concept. He identified that 80% of the wealth in Italy was held by 20% of the people. The purpose of a Pareto chart is to illustrate that 80% of our problems reside in 20% of our activities and forces us to focus on the ‘vital few as opposed to the trivial many’. 

The concept is commonly known as the 80-20 rule. (See 80-20 Rule - 7 Quality Tools)

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