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Glossary
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electronic data interchange (EDI)  Electronic exchange of information between customers and suppliers instead of paper transactions.
inventory waste  Waste that consists of excess inventory over and above that which is necessary.
kanban  A system used to link production rate to demand.
lean  Manufacturing and service processes that have very low levels of waste.
overproduction waste  The waste caused by producing in excess of demand.
processing waste  The waste that results from steps in production processes that do not contribute value or that create costs that are greater than the value they create.
product defect waste  The waste of capacity, inventory, and labor resulting from products that do not meet customer specifications.
takt time  How often you must produce a product in order to meet demand.
transportation waste  The waste that results from excessive materials handling and movement.
unnecessary motion waste  The waste of human resources caused by unnecessary labor due to ineffective job design.
waiting time waste  The waste that results from customer orders, inventory, or completed products waiting in queue for a process to begin.







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