IB Business Management 5.3 Lean Production and Quality Management Key Definitions

Comparing your organization’s processes or performance against industry leaders or best practices, then applying the lessons learned.

Substances that naturally decompose over time without harming the environment.

A reserve supply of materials or products kept as a precaution against unexpected shortages or supply chain disruptions.

The unique attributes or capabilities that allow a business to outperform its competitors. It enables a company to offer superior value to customers, whether through lower costs, differentiated products, superior quality, brand reputation, or innovation.

A sustainable approach where products are designed for complete reuse, recycling, or composting, ensuring zero waste.

Producing maximum output with minimum input.

A system where products are manufactured or stocked only when needed, preventing excess inventory and reducing storage costs.

A Japanese principle meaning continuous, gradual improvement, where small, consistent changes are made to processes to enhance productivity and eliminate inefficiencies.

A business approach aimed at reducing waste and improving efficiency, ensuring that resources are used effectively without unnecessary costs or delays.

Quality assurance is a proactive approach that embeds quality processes within production to prevent defects from occurring.

A quality circle is a small group of employees who voluntarily meet to identify, analyze, and solve work-related problems.

Quality control involves inspecting products at various stages of production to identify and fix defects.

A process used to ensure that products or services meet specified standards by identifying and correcting defects.

Obtaining raw materials in a way that preserves ecosystems and supports fair labor practices.

TQM is an organization-wide philosophy of continuous improvement, where every employee, from managers to front-line workers, focuses on improving processes and maximizing customer satisfaction.

Any unused materials, time, or resources that do not add value to the final product or service.