Definition of Terms

Communication lights: Used for many purposes; however, in a material replenishment system, this light is used to signal to material handlers that an order has been placed for more parts for a work area.

Defects: Mistakes made in the process requiring rework and creating material scrap and lost products.

Floor space: Performance measurement of how much factory space is being used to conduct value-added work. Often measured in profit per square foot or revenue per square foot.

In-process Kanban: A visual reordering system used to trigger the need to move or build WIP (work in process) through a factory.

Inventory: The measurement in quantity and cost of raw material, WIP, and finished goods. Higher than needed inventory levels ...

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