Commonly used LEAN and LOGISTICS terms and practices include
3PL
Third party logistics provider; a 3PL is a firm that provides outsourced or third-party logistics services to companies for some portion of their supply chain.
4PL
Fourth party logistics provider; a 3PL that is non-asset-based
5S
Workplace organization systems; stands for separating, sorting, setting in order (or cleaning), standardizing, and sustaining.
5 Whys
This method, which involves five iterations of question-asking, is used to determine the root cause of a defect or problem; five iterations are usually sufficient.
genchi genbutsu
In Japanese, the term means: “Go and see for yourself"; one must see the problem to know the problem.
hansei
This term, which translates as “relentless reflection,” is a core idea in Japanese culture; it means to acknowledge one’s mistake and to pledge improvement.
heijunka
The term means "level flow" in Japanese. It is a goal of lean practice to make the material flows throughout the system level to help ensure steady production that optimizes productivity and cost-effectiveness, while minimizing waste of time and other resources.
jidoka
The term, which means “intelligent automation” in Japanese, is one of two main pillars of the Toyota Production System (TPS). It refers to the ability to stop a production line if there are problems such as equipment malfunction, quality issues, or late work. It helps prevent the passing on of defects, helps identify and correct problem areas, and enables the building of quality into the production process. It is a quality control process that detects an abnormality, stops, corrects the condition, investigates the root cause, and installs a countermeasure.
JIT
Just in Time; an inventory control method that brings stock into a production process, warehouse, or customer right before it's needed, reducing excess inventory. Each operation is closely synchronized with subsequent operations.
kaizen
A system of continuous improvement in which muda (waste) is eliminated by all employees.
kanban
A small sign that is the key control for the JIT production. It is a visual control tool to check for overproduction and detect irregular processing speeds, instruction for production / conveyance, and tool to perform kaizen.
KPI
Key Performance Indicator that measures a process or function; metric.
LLP
Lead logistics provider; a 3PL that is usually non-asset-based.
Lean
Lean is an enabler to identify optimal value for the customer and each product's value stream. Lean focuses on eliminating wasteful activities and creating smooth product and process flow, enabling an effective pull system. As a mindset, culture, and toolkit, lean is applicable to all organizational areas. A lean environment requires all team members' dedication and is focused on ongoing continuous improvement.
Logistics
The planning, execution, and control of the movement / placement of goods and / or people, and the related, supporting activities, all within a system designed to achieve specific objectives.
LTL
Less Than Truckload (multiple suppliers shipping to multiple customers).
muda
The term, which means “waste” in Japanese, can involve overproduction, waiting, conveyance, processing, inventory, motion, and / or correction.
nemawashi
In Japanese, it means “going around the roots.” It is preliminary work with other areas within an organization to seek input, information, and / or support for a proposal or change that would affect them.
PDCA
An improvement cycle containing plan, do, check, and act steps.
poka-yoke
The Japanese word means “mistake-proofing” by applying low cost, reliable devices used in the jidoka system; it stops processes to prevent the production of defective parts.
pull system
A system of manufacturing in which production processes draw output from preceding processes.
standardized work
The result of organized and defined worker movement, outlining efficient, safe work methods.
Total Logistics Cost models
The goal is to reduce total logistics systems costs by analyzing alll costs (transportation, warehousing, order processing, lot quantity, and inventory carrying cost) and cost tradeoffs.
value stream mapping
A technique used to analyze the flow of materials and information required for a product / service to reach a consumer.
XY Matrix
A tool used to compare two separate criteria by plotting them on an X / Y grid.
yokoten
In Japanese, it means “across everywhere.” Countermeasures and / or plant-related activities that are communicated plant wide and with other company affiliates.