Browse Glossary  
V W X Y Z #
The Complete Lean Shop
Glossary - L

Laboratory Scope - A record containing the specific tests, evaluations and calibrations a laboratory has the ability and competency to perform, the list of equipment it uses, and a list of the methods and standards to which it adheres to each of these.

Laboratory -
A test facility that can include chemical, metallurgical, dimensional, physical, electrical and reliability testing or test validation.

Last In First Out (L.I.F.O.) -
The opposite of "F.I.F.O." (First In First Out). With LIFO earlier orders are delayed in favor of newer orders which results in increased lead-time and unhappy customers regarding the earlier orders. and etc. Many advanced material handling systems, stacking systems, and simple KanBan methods can keep your inventory stocked in FIFO order to avoid the many pitfalls of LIFO failings. All that said, there are times when LIFO measures seem essential. If a customer who represents the majority of your sales requests something immediately it is very difficult to tell them they must wait their turn.

Last Off Part Comparison -
A comparison of the last part off a production run with a part off the next production run to verify that the quality level is equivalent.

Law of Averages
- Says that the average of independent observations of random variables that have the same probability distribution is increasingly likely to be close to the expected value of the random variables as the number of observations grows. More precisely, if x1, x2, x3, . . . , Are independent random variables with the same probability distribution, and e(x) is their common expected value, then for every number e > 0, p{|(x1 + x2 + . . . + Xn)/n ]]</strong> - e(x) | < e} converges to 100% as n grows. This is equivalent to saying that the sequence of sample means x1, (x1+x2)/2, (x1+x2+x3)/3, . . . Converges in probability to e(x).

Law of Diminishing Marginal Returns
- A law that stipulates that there is a point at which investment in quality improvement will become uneconomical.

Layout Inspection -
The complete measurement of all dimensions shown on a design record.

Lead Time -
The total time a customer must wait to receive a product after placing an order.

Leader Behaviour
- A view of leadership stating that leadership potential is related to the behaviours an individual exhibits.

Leader Skills
- A view of leadership stating that leadership potential is related to the skills possessed by an individual.

Leadership -
An essential part of a quality improvement effort. Organization leaders must establish a vision, communicate that vision to those in the organization and provide the tools and knowledge necessary to accomplish the vision. OR the process by which a leader influences a group to move toward the attainment of a group of superordinate goals.

- The power relationship between two or more individuals where the power is distributed unevenly.

Lead-Time Reduction -
Reducing inventory will decrease your lead-time. Excess inventory inherently presents a great deal of waste, not to mention quality issues (spoilage), storage requirements, investment of funds, limiting cash flow, among others.

Lead-Time -
The time required from receipt of order until products are shipped to a customer.

- An approach to producing products or services focusing on reducing Total Cycle Time and costs by reducing waste, improving flow, and striving for excellence.

Enterprise - Focusing on the identification and reduction of waste throughout the entire organization and involving both suppliers and customers in the effort.

Lean Enterprise (a.k.a. Lean Manufacturing) -
(1) An organization that is engaged in the endless pursuit of waste elimination in all of it’s' activities. Lean Enterprise focuses on all aspects of a company's system. Whereas Lean Manufacturing tends to focus on production activities, Lean Enterprises are diligently working to reduce waste in all of its many forms in every department and activity the organization engages in.  Lean Enterprises reduce or eliminate paperwork, improve supply chain agreements, enhance hiring and training processes, provide employee development opportunities, and many other such activities. (2) A manufacturing company organized to eliminate all unproductive effort and unnecessary investment, both on the shop floor and in office functions.

Lean Manufacturing
- (1) A manufacturing process involving tools such as value-stream mapping and workflow diagrams without considering either supplier or customer processes. The methodology used to implement the lean production philosophy. (2) Initiative focused on eliminating all waste in manufacturing processes.
Lean production is aimed at the elimination of waste in every area of production including customer relations, product design, supplier networks and factory management. Its goal is to incorporate less human effort, less inventory, less time to develop products, and less space to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible.'
Principles of Lean Enterprise:

Cut actual process times.

Lean Manufacturing / Production -
(1) A manufacturing/production system best characterized as relentlessly eliminating waste from all of it’s' activities and operations. (2) An initiative focused on eliminating all waste in manufacturing processes. Principles of lean manufacturing include zero waiting time, zero inventory, scheduling (internal customer pull instead of push system), batch to flow (cut batch sizes), line balancing and cutting actual process times. The production systems are characterized by optimum automation, just-in-time supplier delivery disciplines, quick changeover times, high levels of quality and continuous improvement.

Lean Migration -
The journey from traditional manufacturing methods to one in which all forms of waste are systematically eliminated.

Lean -
Producing the maximum sellable products or services at the lowest operational cost while optimizing inventory levels.

Learning Curve Effect
- A theoretical concept that suggests that the more you do something, the better you become at doing it.

Learning Organization
- From peter Senge's book the fifth discipline: the art and practice of the learning organization. Senge argues, that to excel in an increasingly complex and dynamic world, organizations will have to provide for and encourage individuals and teams in all levels of the organization to learn. He envisions "learning organizations...Where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together."

Level loading -
A technique for balancing production throughput over time. Life cycle stages: Design, manufacturing, assembly, installation, operation and shutdown periods of product development

Level-Loading & Mixed-Level-Loading (a.k.a. Heijunka, Balancing) -
A Technique used to balance production throughput according to the needs of customers (Demand).

- A method of reaching international markets that does not require the establishment of international supply chains or marketing arms.

Life Testing -
 A facet of reliability engineering that concerns itself with determining whether a product will fail under controlled conditions during a specified life.

Line Balancing - A process in which work elements are evenly distributed and staffing is balanced to meet takt time (see listing).

Linear Regression
- Fits a line to a scatter-plot in such a way as to minimize the sum of the squares of the residuals.

Line-Stop Authority -
 The approval authority to stop a production line whenever a problem is detected.

Listening Post -
An individual who, by virtue of his or her potential for having contact with customers, is designated to collect, document and transmit pertinent feedback to a central collection authority in the organization.

Load-Load -
A method of conducting single-piece flow in which the operator proceeds from machine to machine, taking the part from one machine and loading it into the next. The lines allow different parts of a production process to be completed by one operator, eliminating the need to move around large batches of work-in-progress inventory.

Logic Flow
- Often used to refer to the logical sequence of steps in a process.

Loss to Society -
 According to Taguchi, this occurs every time a dimension in a product varies from its target dimension. This is associated with Taguchi’s “ideal quality.”

Lost Customer Analysis -
Analysis conducted to determine why a customer or a class of customers was lost.

- A defined quantity of product accumulated under conditions that are considered uniform for sampling purposes

Quality - The value of percentage defective or of defects per hundred units in a lot.

Size (also referred to as N) - The number of units in a lot.

Lot Tolerance Percent Defective aka LTPD
- The maximum level of percent defective acceptable in production lots.

Lot tolerance Percent/Percentage Defective (LTPD) -
 (1) The maximum level of percent defective acceptable in production lots. (2) Expressed in percentage defective, the poorest quality in an individual lot that should be accepted. Note: LTPD is used as a basis for some inspection systems and is commonly associated with a small consumer risk.

, Batch - A definite quantity of some product manufactured under conditions of production that are considered uniform.

Lower Control Limit (LCL) -
(1) Control limit for points below the central line in a control chart. (2) A line on a control chart used as a basis for judging whether variation from the data on the chart is due to special or common causes. Any point beyond the lower control limit is an indication of a special cause occurring. This limit is calculated from data collected on the system, it is not a specification or limit set by customers or management. The symbol is LCL.

Lower Specification Limit (LSL) - The lower limit of a specification. This limit is set as an aim for a system or process, it is usually set by the customer of the process, engineering, or management. The symbol for the lower specification is LSL