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Glossary

Term		Definition
5S (Sort, Straighten, Shine, Standardize, Sustain)		A method of creating a self-sustaining culture that perpetuates a neat, clean, efficient workplace.  A method for removing all excess materials and tools from the workplace and organizing the required items (using Visual Controls) such that they are easy to find, use and maintain.  The five Ss are defined as: Seiri, to sort, segregate and discard. Seiton, to identify, arrange and set in order. Seiso, to clean, shine, sanitize and inspect daily. Seiketsu, to standardize and revisit frequently, and Shitsuke, to motivate to sustain.
5 Why’s		The 5 Whys is a simple problem-solving technique that helps users to get to the root of the problem quickly.  The 5 why's typically refers to the practice of asking, five times, why the failure has occurred in order to get to the root cause/causes of the problem. There can be more than one cause to a problem as well. In an organizational context, generally root cause analysis is carried out by a team of persons related to the problem.
7 Tools of Quality		Tools used in understanding and improving production processes. Tool 1: Cause and effect diagram—visual representation of the main causes and sub-causes leading to an effect or symptom, also called fishbone diagram (after its shape) or Ishikawa diagram (after its inventor). Tool 2: Check sheet—data recording table (matrix) designed by the user to facilitate the recording and interpretation of test results. Tool 3: Control chart—visual representation of comparison between actual performance and pre-determined control limits; helps in detecting assignable causes of variation. Tool 4: Flowchart—visual representation of relationship between planned performance and actual performance over a period. Tool 5: Histogram—graph of side-by-side vertical bars representing a frequency distribution; it reveals patterns that remain hidden in tables of numbers, sometimes it is substituted or supplemented with a Gantt chart. Tool 6: Pareto chart—based on Pareto principle (a small percentage of the elements comprising a group accounts for the largest fraction of the value or the impact), it ranks causes from the most significant to the least significant. Tool 7: Scatter chart—graph that displays the relationship between two variables; the variable to be predicted (dependent variable) is plotted on the vertical ('Y') axis, and the variable used to make the prediction (independent variable) plotted on the horizontal ('X') axis.
Affinity chart (diagram)		Brainstorming tool used to gather large quantities of information from many people; ideas usually are put on sticky notes, then categorized into similar columns; columns are named giving an overall grouping of ideas.
Alpha Risk		The probability of accepting the alternate hypothesis when, in reality, the null hypothesis is true.  Probability of rejecting a lot when, in fact, the lot should have been accepted.  Also known as Producer’s Risk and Type I Error.
Alternative Hypothesis		A tentative explanation that indicates that an event does not follow a chance distribution; a contrast to the null hypothesis.
Analysis of Variance (ANOVA)		A statistical method for evaluating the effect that factors have on process mean and for evaluating the differences between the means of two or more normal distributions.
Analyze		DMAIC phase where process detail is scrutinized for improvement opportunities. Note that: 1. Data is investigated and verified to prove suspected root causes and substantiate the problem statement (see also Cause and Effect). 2. Process analysis includes reviewing process maps for value added/non-value-added activities. See also Process Map; Value- Adding Activities; Non-Value-Adding Activities.
Andon		Andon means ‘management by sight’ - visual management.  Japanese translation means “light”.  A visual and/or audible communication system used to indicate the current operating condition at a work site.
Assignable Cause		A process input variable that can be identified and that contributes in an observable manner to non-random shifts in process mean and/or standard deviation.
Attribute Data		Data that typically reflects the number of conforming or nonconforming units or the number of non-conformities per unit on a go/no go or accept/reject basis.  Generally, data that is ‘counted’.  Sometimes called ‘Discrete Data’.  See also Continuous Data.
Autonomation (Jidoka)		English translation of Jidoka. Imparting human intelligence to a machine so that it automatically stops when a problem arises. In other words, the automatic control of defects. It includes the practice of stopping machines when some deviation or variance is detected.
Average (Mean)		Sum of all measurements divided by the total number of measurements. Statistic that is used to estimate the population mean. Same as MEAN
Balanced scorecard		Categorizes ongoing measures into four significant areas: finance, process, people, and innovation. Used as a presentation tool to update sponsors, senior management, and others on the progress of a business or process; also useful for process owners
Baseline measures		Data signifying the level of process performance as it is/was operating at the initiation of an improvement project (prior to solutions).
Benchmarking		A process for identification of external best-in-class practices and standards for comparison against internal practices.  Measurement of the quality of a firm's policies, products, programs, strategies, etc., and their comparison with standard measurements, or similar measurements of the best-in-class firms. The objectives of this exercise are (1) to determine what and where improvements are called for, (2) how other firms achieve their high performance levels, and (3) use this information to improve the firm's performance.
Beta Risk		The probability of accepting the null hypothesis when, in reality, the alternate hypothesis is true.  Same as Customer’s Risk: Probability of accepting a lot when, in fact, the lot should have been rejected.  Also known as Type II Error.
Binomial Distribution		A statistical distribution associated with data that is one of two possible states such as Go -No Go or Pass-Fail.
Black Belt		A team leader, trained in the DMAIC process and facilitation skills, responsible for guiding an improvement project to completion.
Brainstorming		A team-oriented meeting used in problem solving to develop a list of possible causes that may be linked to an observed effect.
Breakdown (reactive) Maintenance		Repairs or replacements performed after equipment has failed to return to its functional state following a malfunction or shutdown.  A form of maintenance in which equipment and facilities are repaired in response to a breakdown or a fault. See also, corrective and preventive maintenance.
Business Process Improvement (BPI)		Improving quality, productivity, and response time of a business process, by removing non-value adding activities and costs through incremental enhancements. Also called functional process improvement.  Business Process Reengineering (BPR) is a more thorough rethinking of all business processes, job definitions, management systems, organizational structure, work flow, and underlying assumptions and beliefs, the main objective is to break away from old ways of working, and effect radical (not incremental) redesign of processes to achieve dramatic improvements in critical areas.
Capability		The total range of inherent variation in a stable process.  It is determined using data from control charts.
Capability Index		A calculated value used to compare process variation to a specification.  Examples are Cp, Cpk, Pp, and Ppk.  Can also be used to compare processes to each other.
Cause		That which produces an effect or brings about a change.
Cause and Effect diagram		Also known as a "Fishbone" or "Ishikawa Diagram"; categorical brainstorming tool used for determining root-cause hypothesis and potential causes (the bones of the fish) for a specific effect (the head of the fish)
Cause and Effect Matrix		Decision-making tool (spreadsheet) used when potential choices must be weighed (inputs) against requirements (outputs - e.g., cost, ease to implement, impact on customer). Encourages use of facts, data, and clear business objectives in decision-making.  By sorting the ratings, items can be ranked as to importance to requirements.  It is less subjective than the Fishbone diagram and more broadly focused.
Cell(ular) Manufacturing		The arrangement of people, machines, materials and methods such that processing steps are adjacent and in sequential order so that parts can be processed one at a time (or in some cases in a consistent small batch that is maintained through the process sequence).  Typically, in a U-shaped configuration where operators remain within the cell and materials are presented to them from outside of the cell. The purpose of a cell is to achieve and maintain efficient continuous flow.
Champion		An upper level business leader who facilitates the leadership, implementation, and deployment of the process quality initiative and breakthrough philosophies.
Charter		Team document defining the context, specifics, and plans of an improvement project; includes business case; problem and goal statements; constraints and assumptions; roles; preliminary plan; and scope. Periodic reviews with the sponsor ensure alignment with business strategies; review, revise, refine periodically throughout the DMAIC process based on data
Change Acceleration Program (CAP)		A process which helps accelerate stakeholder buy-in and implementation of new philosophies and processes within a business.
Change Over Time		The length of time from the last batch of one run to the first packaging of the next batch.  The time between batches is emphasized because it is a period of non-value added time (i.e. some of the equipment may be idle and not producing product).
Check sheet		Forms, tables, or worksheets facilitating data collection and compilation; allows for collection of stratified data. See also Stratification.
Chuku-Chuku		Japanese term for “load-load”.  Refers to a production line which has been raised to a level of efficiency that requires simply the loading of parts by the operator without any effort required for unloading or transporting material.
Common cause		Normal, everyday influences on a process; usually harder to eliminate and require changes to the process. Problems from common causes are referred to as "chronic pain." See also Control Charts; Run Chart or Time Plot; Special Cause; Variation.
Confidence Level		The probability that a randomly distributed variable "x" lies within a defined interval of a normal curve.
Confidence Interval		The two values that define the confidence interval.
Confounding		Allowing two or more variables to vary together so that it is impossible to separate their unique effects.
Constraint		Element, factor, or subsystem that works as a bottleneck.  It restricts an entity, project, or system (such as manufacturing or decision making process) from achieving its potential (or highest level of output) with regard to its goal.  See also Theory of Constraints.
Continuous data		Any variable measured on a continuum or scale that can be infinitely divided; primary types include time, dollars, size, weight, temperature, and speed; also referred to as “variable data." See also Attribute Data.
Continuous Flow		In its purest form, continuous flow means that items are processed and moved directly to the next process one piece at a time. Each processing step completes its work just before the next process needs the item, and the transfer batch size is one. Also known as one piece flow and “make one, move one”.
Continuous Improvement		A philosophy by which individuals within an organization look for ways to always do things better, usually based on an understanding and control of variation.  A pledge to every day, do or make something better than it was before.
Control		DMAIC phase C; once solutions have been implemented, ongoing measures track and verify the stability of the improvement and the predictability of the process. Often includes process management techniques and systems including process ownership, cockpit charts and/or process management charts, etc. See also Cockpit Charts; Process Management A statistical concept indicating that a process operating within an expected range of variation is being influenced mainly by "common cause" factors; processes operating in this state are referred to as "in control." See also Control Charts; Process Capability; Variation.
Control charts		Specialized time plot or run chart showing process performance, mean (average), and control limits; helps determine process influences of common (normal) or special (unusual, unique) cause variation.
Control Plan		A formal document that describes all of the elements required to control variations in a particular process.  Could apply to a complete product or family of products.
Corrective Maintenance		Activities undertaken to detect, isolate, and rectify a fault so that the failed equipment, can be restored to its normal operable state.  See also, breakdown and preventive maintenance.
Correlation		The relationship between two sets of data such that when one changes, the other is likely to make a corresponding change. Also, a statistical tool for determining the relationship between two sets of data.
Cost of Poor Quality, or COPQ		A dollar measures depicting the impact of problems (internal and external failures) in the process as it exists; include labor and material costs for handoffs, rework, inspection, and other non value adding activities.
Critical to Quality (CTQ)		A characteristic determined to be important for variability reduction based on a requirement from production, engineering, customer application, or regulatory agency.  Can also apply to transactional or service delivery processes.
Cross-Functional Management		Cross-functional Management is the overseeing of horizontal interdivisional activities.  It is used so that all aspects of the organization are well managed and have consistent, integrated quality efforts pertaining to scheduling, delivery, plans, etc.
Customer		Any internal or external person/organization who receives the output (product or service) of the process; understanding the impact of the process on both internal and external customers is key to process management and improvement.
Customer requirements		Defines the needs and expectations of the customer; translated into measurable terms and used in the process to ensure compliance with the customers' needs.
Cycle time		The time it takes an operator to complete one full repetition of work, including actual work time and wait time.  Globally, it is the time it takes before the cycle repeats itself.
Daily Control		The systems by which workers identify, simply and clearly, what they must do to fulfill their job function in a way that will enable the organization to run smoothly.  These items are usually concerned with the normal operation of a business.  Also a system in which these required actions are monitored by the employees themselves.
Data		Factual information used as a basis for reasoning, discussion, or calculation; often refers to quantitative information.
Defect		Any instance or occurrence where the product or service that falls outside of specification or fails to meet customer requirements.
Defects per Million Opportunities (DPMO)		Quality metric used in the Six Sigma process.  Calculated by the number of defects observed divided by the number of opportunities for defects normalized to 1 million units.
Defective		Any unit with one or more defects. See also Defects.
Define		First DMAIC phase defines the problem/opportunity, process, and customer requirements; because the DMAIC cycle is iterative, the process problem, flow, and requirements should be verified and updated for clarity, throughout the other phases. See also Charter, Customer Requirements, Process Map, VOC.
Design of Experiments (DOE)		A formal, proactive method of experimentation which identifies, with minimum testing, factors (key process input variables) and their optimum settings that affect the mean and variation of the key process output variable.  It is the plan for conducting the experiment and statistically evaluating the results.
Discrete data		Any data that has a finite number of possible outcomes.  Data that can only be counted and cannot be further divided, such as pass and fail, yes and no, and counts of defects…etc.  Includes a count, proportion, or percentage of a characteristic or category (e.g., gender, loan type, department, location, etc); also referred to as "Attribute Data."
Distribution		Tendency of large numbers of observations to group themselves around some central value with a certain amount of variation or "scatter" on either side.
Downstream		Processes (activities) occurring after the task or activity in question.
DFSS		Acronym for "Design for Six Sigma." Describes the application of Six Sigma tools to product development and Process Design efforts with the goal of "designing in" Six Sigma performance capability.
DMAIC		Acronym for a Process Improvement/Management System which stands for Define, Measure, Analyze, Improve, and Control; lends structure to Process Improvement, Design or Redesign applications.
DPMO, or Defects per Million Opportunities		Calculation used in Six Sigma Process Improvement initiatives indicating the amount of defects in a process per one million opportunities; number of defects divided by (the number of units times the number of opportunities) = DPO, times 1 million = DPMO. See also DPO; Six Sigma; Defect Opportunity.
DPO, or Defects per Opportunity		Calculation used in Process Improvements to determine the amount of defects per opportunity; number of defects divided by (the number of units times the number of opportunities) = DPO. See also Defect; Defect Opportunity.
Drum, Buffer, Rope (DBR)		Drum – Considers the constraints in the system and set the pace for the entire system (and takt time is a part of this). Buffer – Protects the system from the disruptions inherent in any process (helps maintain flow).  Can be a product buffer or a time buffer.  Rope – The mechanism for synchronizing all resources in the system to the speed of the drum (provides the pull through the system).  The power of the DBR system lies in the concept of constraints and constraint management – and its focus on the global impact of decisions.
Effectiveness		Measures related to how well the process output(s) meets the needs of the customer (e.g., on-time delivery, adherence to specifications, service experience, accuracy, value-added features, customer satisfaction level); links primarily to customer satisfaction.
Efficiency		Measures related to the quantity of resources used in producing the output of a process (e.g., costs of the process, total cycle time, resources consumed, cost of defects, scrap, and/or waste); links primarily to company profitability.
Evolutionary Operations (EVOP)		A DOE process used to optimize the key process input variables in a production environment, is usually limited to two to three variables, is performed over a long period of time, and is non-disruptive to the process.
External failure		When defective units pass all the way through a process and are received by the customer.
Failure Modes & Effects Analysis (FMEA)		The FMEA is a proactive tool that is used pragmatically to identify potential failures and their effects, to numerically rate the combined risk associated with severity, probability of occurrence and detect ability, and to document appropriate plan for prevention. FMEAs can be applied to system, application, and product design and to manufacturing and non-manufacturing processes (i.e., services and transactional processes).
Feasibility		A determination that a process, design, procedure, or plan can be successfully accomplished in the required time frame.
First Pass Yield (FPY)		The percentage of products or services that are successfully completed on the first attempt without requiring remedial action or rework.
Fishbone Diagram (aka Ishikawa diagram)		The fishbone diagram is an analysis tool that provides a systematic way of looking at effects and the causes that create or contribute to those effects. Because of the function of the fishbone diagram, it may be referred to as a cause-and-effect diagram. The design of the diagram looks much like the skeleton of a fish. Therefore, it is often referred to as the fishbone diagram.  Whatever name you choose, remember that the value of the fishbone diagram is to assist teams in categorizing the many potential causes of problems or issues in an orderly way and in identifying root causes.  Dr. Kaoru Ishikawa, a Japanese quality control statistician, invented the fishbone diagram and it may be referred to as the Ishikawa diagram.
Flow		Movement of product or services along the value stream, from raw materials to the customer, without backflow, stoppages, or waste.
Force field analysis		Identifies forces/factors supporting or working against an idea; "restraining" factors listed on one side of the page, "driving forces" listed on the other; used to reinforce the strengths (positive ideas) and overcome the weaknesses or obstacles.
Gage Accuracy		The average difference observed between a gage under evaluation and a master gage when measuring the same parts over multiple readings.
Gantt Chart		Type of bar-chart that shows both the scheduled and completed work over a given period. A time-scale is given on the chart's horizontal axis and each activity is shown as a separate horizontal rectangle (bar) whose length is proportional to the time required (or taken) for the activity's completion. In project planning, these charts show start and finish dates, critical and non-critical activities, slack time, and predecessor-successor relationships. Also called chronogram, it was invented in 1917 by the US engineer and a scientific-management pioneer, Henry L. Gantt (1861-1919).
Gemba		The real place or the specific place, usually to mean the shop floor and other areas where work is done or value is created.
Goal statement		Description of the intended target or desired results of Process Improvement or Design/Redesign activities; usually included in a team charter and supported with actual numbers and details once data has been obtained.
Handoff		Any time in a process when one person (or job title) passes on the item moving through the process to another person; potential to add defects, time, and cost to a process.
Hanedashi		Device or means for automatic removal of work piece from one operation (or process) that provides proper state and orientation for the next operation (or process).  In manufacturing, a means for automatic unloading and orientation for the next operation (or process), generally a relatively simple device.  Crucial for a “Chuku-Chuku” line.
Heijunka		See Production Smoothing; Keeping total manufacturing volume as constant as possible by creating a build sequence that is determined by SKU average demand.
Histogram or Frequency Plot		Chart used to graphically represents the frequency, distribution and "centeredness" of a population.
Hoshin Kanri		In Japanese, Hoshin means “shining metal”, “compass” or “pointing in the direction”. Kanri means “control”.  Hoshin Kanri is a method devised to capture and concertize strategic goals as well as flashes of insight about the future and develop the means to bring these into reality.  It is one of the major systems that makes World Class Quality Management possible.  It helps control the direction of the company by orchestrating change within a company.  The system includes tools for continuous improvement, breakthroughs, and implementation.  The key to hoshin planning is that it brings the total organization into the strategic planning process, both top down and bottom up.  It ensures that the direction, goals, and objectives of the company are rationally developed, well defined, clearly communicated, monitored, and adapted based on system feedback.  It provides focus for the organization.  See also Policy Deployment.
Hypothesis		When used as a statistical term, it is a theory (proposed or postulated) for comparing means and standard deviations of two or more data sets. A "null" hypothesis states that the data sets are from the same statistical population, while the "alternate" hypothesis states that the data sets are not from the same statistical population.
Hypothesis Testing		A way of analyzing data to determine if observed results are statistically significant or due to random variation.
Improve		DMAIC phase where solutions and ideas are creatively generated and decided upon. Once a problem has been fully identified, measured, and analyzed, potential solutions can be determined to solve the problem in the problem statement and support the goal statement. See also Charter.
IMR Chart		Individuals and Moving Range chart; a type of variables control chart based on individual measurements.
Input		Any product, service, or piece of information that comes into the process from a supplier.
Input measures		Measures related to and describing the input into a process; predictors of output measures.
Institutionalization		Fundamental changes in daily behaviors, attitudes, and practices that make changes "permanent", cultural adaptation of changes implemented by Process Improvement, Design or Redesign-including complex business systems such as HR, MIS, Training, etc.
Interaction		The tendency of two or more variables to produce an effect, in combination, which neither variable would produce if acting alone.
Interrelationship Diagram		One of the seven management tools which assists in general planning.  This tool takes a central idea, issue, or problem and maps out the logical or sequential links among related items.  It is a creative process that shows every idea can be logically linked with more than one other idea at a time.  It allows for “multidirectional” rather than “linear” thinking to be used.
Inventory (as it relates to TOC)		The quantity of money tied up in materials the organization intends to sell.  It includes raw material, in-process, and finished product inventories.  Inventory equals the sum of purchased material (value of raw material), purchased parts, work-in-process, and finished goods inventories (in dollars).  Note: labor costs are not included.
ISO-9000		Standard and guideline used to certify organizations as competent in defining and adhering to documented processes; mostly associated with quality assurance systems, not quality improvement.
Jidoka (Autonomation)		Technological innovation that enables machines to work harmoniously with their operators by giving them the 'human touch.' It employs automatic and semi-automatic processes to reduce physical and mental load on the workers. Introduced by Sakichi Toyoda (1867-1930)—founder of Toyota Industries Corp.—around 1924 when he invented an automatic loom that stopped working if even a single thread breaks, thus allowing one operator to control several looms.
Just in Time (JIT) Manufacturing		A strategy that exposes that waste in an operation, makes continuous improvement a reality, and provides the opportunity to promote total employee involvement.  Concentrates on making what is needed , when it is needed, no sooner, no later.
KMaikaku		The Japanese word for Kaizen.  Generally referred to as a radical overhaul of an activity to eliminate all waste and create greater value, usually in a business process.
Kaizen		A combination of two Japanese words Kai (change) and Zen (good, for the better).  The vehicle Lean Thinking uses to take a system apart, understand it, and put it back together better.  The focus is to improve the process and the lives of those who interact with the process. See also Kaikaku.
Kanban		Japanese for a signboard or visual signal.  Designates a pull production means of communicating need for product or service.  Typically a small card, sign or signboard provides instructions to produce or supply something.  Essentially Kanban is a reorder card or other method of triggering the pull system, based on actual usage of material.  There are two types; production and withdrawal. The Kanban should be located at the point of manufacturing.  It was originally intended to communicate a change in demand or supply.  In application it is generally used to trigger the movement of material to or through a process.  Includes Electronic Kanban systems that are designed to automate many of the manual process associated with releasing or creating a Kanban order.
Key Process Input Variable (KPIV)		The vital few process input variables that have the greatest effect on the output variable(s) of interest.  They are called “X’s”, (normally 2 – 6)
Key Process Output Variable (KPOV)		The output variable(s) of interest.  They are called the “Y’s”, (usually 1).  May be process performance measures or product characteristics.
Lead Time		The amount of time required to produce a single product, from the time of customer order to shipping.
Lean Manufacturing		Using the minimum amount of total resources — man, materials, money, machines, etc. — to produce a product and deliver it on time.
Lean Thinking		A systematic approach to the elimination of Waste in a process.  The eight wastes include: Overproduction, Waiting, Transport, Over processing, Inventories, Movement, Defects, and Ingenuity of people.
Machine Automatic Time		The time is takes for a machine to produce one unit, exclusive of loading and unloading.
Machine Cycle Time		The time it takes for a machine to produce one unit, including the time it takes to load and unload.
Master Black Belt		A person who is an "expert" on Six Sigma techniques and on project implementation. Master Black Belts play a major role in training, coaching and in removing barriers to project execution in addition to overall promotion of the Six Sigma philosophy.
Mean (Average)		Sum of all measurements divided by the total number of measurements. Statistic that is used to estimate the population mean. Same as AVERAGE
Mean Time Between Failure (MTBF)		Average time to failure for a statistically significant population of a product operating in its normal environment.
Measure		1. DMAIC phase M, where key measures are identified, and data are collected, compiled, and displayed 2. A quantified evaluation of specific characteristics and/or level of performance based on observable data.
Measurement System		The complete process used to obtain measurements.  It consists of the collection of operations, procedures, gages and other equipment, software, and personnel used to assign a number or value to the characteristic being measured.
Measurement System Analysis (MSA)		Means of evaluating a continuous or discrete measurement system to quantify the amount of variation contributed by the measurement system.
Measure		1. DMAIC phase M, where key measures are identified, and data are collected, compiled, and displayed 2. A quantified evaluation of specific characteristics and/or level of performance based on observable data.
Median		The mid value in a group of measurements when ordered from low to high.
Minitab		Statistical software package that operates on Microsoft Windows with a spreadsheet format and has powerful statistical analysis ability.  Used frequently in Six Sigma projects.
Mistake Proofing		Mistake proofing is a proactive technique used to positively prevent errors from occurring (i.e. designing a potential failure, or cause of failure, out of a product or process).
Mu (µ), Sigma (σ)		Mu and Sigma, Greek letters denoting the population average and the population standard deviation.  These are measures of central tendency and variability.
Muda		Waste or any activity that adds to cost without adding to value of the product.
Mura		Variation or fluctuation in work, process quality, cost and delivery. A lean system seeks to reduce mura through heijunka.
Muri		Means difficult to do, unreasonableness.  Used when demand exceeds capacity.
Multi-Vari Study		A graphical and statistical method to depict variation in the KPOV as it relates to changes in multiple KPIVs.  Variables include noise variables potentially causing variability in the process.  The study of process inputs and outputs is completed in a passive mode (natural day-to-day process).
Multivoting		Narrowing and prioritization tool. Faced with a list of ideas, problems, causes, etc., each member a group is given a set number of "votes." Those receiving the most votes get further attention/consideration
Nagara System		Accomplishing two or more activities with one motion and at the same time.
Nonconformity		A condition within a unit which does not conform to some specific specification, standard, and/or requirement; often referred to as a defect; any given non-conforming unit can have the potential for more than one nonconformity.
Non-value-added activities		Any activity that absorbs or consumes resources (e.g. material, time, equipment, people, paper, space) without creating value for the external customer.  Examples of non-value-added work include rework, handoffs, inspection/control, wait/delays, etc.  Same as Muda.  See also Value-Adding Activities.
Normal Distribution		A continuous, symmetrical, bell shaped frequency distribution for variable data.
One Piece Flow		A manufacturing philosophy or concept which supports the movement of product from one workstation to the next, one unit at a time, without allowing inventory to build up in between.
Operational definition		A clear, precise description of the factor being measured or the term being used; ensures a clear understanding of terminology and the ability to operate a process or collect data consistently.
Operating Expense (as related to TOC)		The quantity of money spent by the firm to convert inventory into throughput (sales) over a specified period of time.  Operating Expense equals the actual spending to turn Inventory into Throughput.  It includes personnel related expense and other actual expenses (variances are not included).
Operator Cycle Time		The time it takes for a person to complete a predetermined sequence of operations, inclusive of loading and unloading, exclusive of time spent waiting.
Out of Control		Condition which applies to statistical process control chart where plot points fall outside of the control limits or fail an established run or trend criteria, all of which indicate that an assignable cause variation is present in the process.
Output		Any product, service, or piece of information coming out of, or resulting from, the activities in a process.
Output measures		Measures related to and describing the output of the process; total figures/overall measures.
Overall Equipment Effectiveness (OEE)		A measure of manufacturing equipment's productivity and efficiency, based on three primary parameters: 1) availability; 2) performance; and 3) quality (yield).  OEE is 1) a metric to immediately indicate the current status of a manufacturing process and 2) a complex tool allowing you to understand the effect of the various issues in the manufacturing process and how they affect the entire process. OEE is the product of the three components: Availability, Performance, and Quality.  OEE= Availability x Performance x Quality.  The OEE percentage is used for analysis and benchmarking.  Availability refers to equipment being available for production when it is scheduled to run. At the most basic level, when a process is running it is creating value for the end user. When a process is stopped, it's creating a cost with no associated value. Whether it's due to mechanical failure, raw materials or operator issues, equipment is either producing or not producing. By comparing scheduled run time to actual run time, the availability component of OEE allows for a determination of lost production due to down time. Performance is determined by how much waste is created through running at less than optimal speed. By comparing the actual cycle times against ideal cycle times, OEE allows for a determination of how much production was lost by cycles that did not meet the ideal cycle time. Quality focuses on identifying time that was wasted by producing a product that does not meet quality standards. By comparing the quantity of good to reject parts the percent of time actually adding value by producing good product is exposed.
Pacemaker		A technique for pacing a process to takt time.
Pareto Chart		Quality tool based on Pareto Principle; uses attribute data with columns arranged in descending order, with highest occurrences (highest bar) shown first; uses a cumulative line to track percentages of each category/bar, which distinguishes the 20 percent of items causing 80 percent of the problem.
Pareto Principle		The 80/20 rule; based on Vilfredo Pareto's research stating that the vital few (20 percent of causes have a greater impact than the trivial many (80 percent) causes with a lesser impact.
Plan-Do-Check-Act, or PDCA		Basic model or set of steps in continuous improvement; also referred to as "Shewhart Cycle" or "Deming Cycle."  In this cycle you determine what needs to be done, when, how, and by whom (plan); you take action accordingly (do); you check the result (check); and if the plan is not fulfilled, you analyze the cause and take further action by going back to the plan (action).
Pilot		Trial implementation of a solution, on a limited scale, to ensure its effectiveness and test its impact; an experiment verifying a root cause hypothesis.
Planned Maintenance		A type of preventive maintenance carried out according to a fixed plan or schedule.  See also corrective and preventive maintenance.
Poka Yoke		Japanese expression meaning “common or simple, mistake proof”.  A method of designing processes, either production or administrative, which will by their nature prevent errors.  This may involve designing fixtures that will not accept a defective part or something as simple as having a credit memo be a different color than a debit memo.  It requires that thought be put into the design of any system to anticipate what can go wrong and build in measures to prevent them.
Policy Deployment		Policy Deployment orchestrates continuous improvement in a way that fosters individual initiative and alignment.  It is a process of implementing the policies of an organization directly through line managers and indirectly through cross-functional organization.  It is a means of internalizing company policies throughout the organization, from highest to lowest level.  Top managers will articulate its annual goals which are then “deployed” down through lower levels of management.  The abstract goals of top management become more concrete and specific as they are deployed down through the organization.  Policy deployment is process oriented.  It is concerned with developing a process by which results become predictable.  If the goal is not realized, it is necessary to review and see if the implementation was faulty.  It is more important to determine what went wrong in the process that prevented the goal from being realized.  See also Hoshin Kanri.
Population		The universe of all possible numbers that can be considered the same in some sense.
Power (of an experiment)		The probability of rejecting the null hypothesis when it is false and accepting the alternate hypothesis when it is true.
Precision		The ability of the measurement to measure consistently. This links to the type of scale or detail of your operational definition, but it can have an impact on your sample size, too.
Precision to Tolerance Ratio (P/T)		A ratio used to express the portion of specification (customer requirements) consumed by the 99% confidence interval of measurement system repeatability and reproducibility error.
Predictive Maintenance		A type of preventive maintenance performed continuously or at intervals based on a monitoring and diagnosis of equipment condition. Predictive maintenance uses the techniques of surveillance, diagnosis, and remedy to manage the maintenance of equipment.  It is based on the premise that most equipment will give indications of impending failure well in advance of it actually happening.  Also called condition-based maintenance.  See also, preventive and planned maintenance.
Preliminary plan		Used when developing milestones for team activities related to process improvement; includes key tasks, target completion dates, responsibilities, potential problems, obstacles and contingencies, and communication strategies.
Prevention		The practice of eliminating unwanted variation before the fact (e.g., predicting a future condition from a control chart) and then applying corrective action before the predicted event transpires.
Preventive Maintenance		Systematic inspection, detection, correction, and prevention of incipient failures, before they become actual or major failures.  The goal of preventive maintenance is to reduce equipment failure and the need for corrective maintenance. It can be performed at regular time intervals, after a specified amount of equipment use, when the opportunity arises, for example, at a factory's annual shutdown, or when certain preset conditions occur to trigger the need for action.  See also predictive and planned maintenance.
Probability		The chance of an event happening or a condition occurring in a random trial.
Problem/Opportunity statement		Description of the symptoms or the "pain" in the process; usually written in noun-verb structure: usually included in a team charter and supported with numbers and more detail once data have been obtained. See also Charter.
Process		The combination of people, equipment, materials, methods, and environment that produce output – a given product or service.  It is the particular way of doing something, generally involving a number of steps or operations.
Process capability		Determination of whether a process, with normal variation, is capable of meeting customer requirements; measure of the degree a process is/is not meeting customer requirements, compared to the distribution of the process. See also Control; Control Charts.
Process Capacity Table		A chart primarily used in a machining environment that compares machine load to available capacity.
Process Decision Program Chart (PDPC)		The Process Decision Program Chart (PDPC) is a method that maps out conceivable events and contingencies that can occur in any implementation plan.  It, in time, identifies feasible countermeasures in response to these problems.  This tool is used to plan each possible chain of events that need to occur when the problem or goal is an unfamiliar one.
Process design		Creation of an innovative process needed for newly introduced activities, systems, products, or services
Process improvement		Improvement approach focused on incremental changes/solutions to eliminate or reduce defects, costs or cycle time; leaves basic design and assumptions of a process intact. See also Process redesign.
Process management		Defined and documented processes, monitored on an ongoing basis, which ensure that measures are providing feedback on the flow/ function of a process; key measures include financial, process, people, and innovation. See also Control.
Process Flow Diagram (PFD)		Graphic display of the process flow that shows all activities, decision points, rework loops, and handoffs.
Process Map		A detailed step-by-step pictorial sequence of a process showing process inputs, potential or actual controllable and uncontrollable sources of variation, process outputs, cycle time, rework operations, and inspection points.
Process measures		Measures related to individual steps as well as to the total process; predictors of output measures.
Process redesign		Method of restructuring process flow elements eliminating handoffs, rework loops, inspection points, and other non-value-adding activities; typically means "clean slate" design of a business segment and accommodates major changes or yields exponential improvements (similar to reengineering).
Process Spread		The extent to which the distribution of individual values of the process characteristic (input or output variable) vary; often shown as the process average plus and minus some number of standard deviations.  Other related measures of spread include the range, and variance.
Production Smoothing		A method of production scheduling that, over a period of time, takes the fluctuation of customer demand out of manufacturing. “Produce every part, every day”.
Pull		Generation of production orders on the basis of actual demand (orders) for product.  It is the opposite of stocking product in inventory on the basis of projected sales.
Push		To produce an item irrespective of actual demand.  Creates the muda of overproduction, among others.
Project rationale or "Business Case"		Broad statement defining area of concern or opportunity, including impact/benefit of potential improvements, or risk of not improving a process; links to business strategies, the customer, and/or company values. Provided by business leaders to an improvement team and used to develop problem statement and Project Charter.
Quality		A broad concept and/or discipline involving degree of excellence; a distinguished attribute or nature; conformance to specifications; measurable standards of comparison so that applications can be consistently directed toward business goals.
Quality assurance, or QA		Discipline (or department) of maintaining product or service conformance to customer specifications; primary tools are inspection and SPC.
Quality at the Source		A method of quality analysis that emphasizes prevention over detection
Quality Circles		Quality Circles are an organizational tool that provide a team approach in which people get together to work on problems and to improve productivity.  Their primary objective is to foster team work and encourage employee involvement.
Quality Control Process Charts (QCPC)		A quality control program that focuses on collecting and analyzing defect data to improve the manufacturing process.  Actions taken are focused on eliminating rework, reprocessing, repair and scrap.
Quality Functional Deployment (QFD)		QFD is a disciplined matrix methodology used for documenting and transforming customer wants and needs - "the voice of the customer" - into operational "requirement" terms. It is an effective tool for determining critical-to-quality characteristics for transactional processes, services and products.
Quick Change-over		Method of increasing the amount of productive time available for a piece of machinery by minimizing the time needed to change from one model to another.  This greatly increases the flexibility of the operation and allows it to respond more quickly to changes in demand.  It also has the benefit of allowing an organization to greatly reduce the amount of inventory that it must carry because of improved response time.
R Chart		Plot of the difference between the highest and lowest in a sample. Normally associated with the range control portion of an X, R chart.
Random sampling		Method that ensures that each item to be measured is selected completely by chance.  Sampling in such a way that each item in the population has an equal chance of being selected (lack of predictability; without pattern).
Range		The difference between the highest and lowest values in a "subgroup" sample.
Regression		A statistical technique for determining the best mathematical expression that describes the functional relationship between one response and one or more independent variables.
Repeatability		Measurement stability concept in which a single person gets the same results each time he/she measures and collects data; necessary to ensure data consistency and stability. See also Reproducibility.
Replication		Repeat observations made under identical test conditions.
Reproducibility		Measurement stability concept in which different people get the same results when they measure and collect data using the same methods; necessary to ensure data consistency and stability. See also Repeatability.
Response Surface Methodology		A graphical (pictorial) analysis technique used in conjunction with DOE for determining optimum process parameter settings
Rework loop		Any instance in a process when the thing moving through the process has to be corrected by returning it to a previous step or person/organization in the process; adds time, costs, and potential for confusion and more defects. See also Non-Value-Adding Activities.
Robust		The condition or state in which a response parameter exhibits a high degree of resistance to external causes of a nonrandom nature; i.e., impervious to perturbing influence.
Rolled throughput yield or RTY		The cumulative calculation of defects through multiple steps in a process; total input units, less the number of errors in the first process step number of items "rolled through" that step; to get a percentage, take the number of items coming through the process correctly divided by the number of total units going into the process; repeat this for each step of the process to get an overall rolled-throughput percentage. See also Yield.
Run chart, or time plot		Measurement display tool showing variation in a factor over time; indicates trends, patterns, and instances of special causes of variation. See also Control Chart; Special Cause; Variation.
Sample		A portion of a population of data chosen to estimate some characteristic about the whole population. One or more observations drawn from a larger collection of observations or universe (population).
Sampling		Using a smaller group to represent the whole; foundation of statistics that can save time, money, and effort; allows for more meaningful data; can improve accuracy of measurement system.
Sampling bias		When data can be prejudiced in one-way or another and do not represent the whole.
Scatter plot or diagram		Charts that allow the study of correlation, e.g., the relationship between two variables or data sets.
Scope		Defines the boundaries of the process or the Process Improvement project; clarifies specifically where opportunities for improvement reside (start- and end-points); defines where and what to measure and analyze; needs to be within the sphere of influence and control of the team working on the project-the broader the scope, the more complex and time-consuming the Process Improvement efforts will be.
Sensei		A revered master or teacher, literally, “one who has gone before”.
Set-up Reduction		An operating technique that systematically reduces and eliminates the skill level required to prepare or “set-up” a piece of operating equipment in order to produce small quantities of high quality parts at economical costs.
Short Term Capability		Determines variation in the process, assesses ability to meet specifications and permits short, intermediate and long-term goal setting. Requires about 30-50 observations.
Should-be process mapping		Process-mapping approach showing the design of a process the way it should be (e.g., without non-value-adding activities; with streamlined workflow and new solutions incorporated). Thus contrasts with the "As-Is" form of process mapping. See also Process Redesign, Value- Adding Activities; Non-Value-Adding Activities.
Single Minute Exchange of Dies (SMED)		Single Minute Exchange of Die (SMED) is one of the many lean production methods for reducing waste in a manufacturing process. It provides a rapid and efficient way of converting a manufacturing process from running the current product to running the next product. This rapid changeover is key to reducing production lot sizes and thereby improving flow which is a 'Lean' aim. It is also often referred to as Quick Changeover (QCO). Performing faster change-overs is important in manufacturing, or any process, because they make low cost flexible operations possible.  The phrase "single minute" does not mean that all changeovers and startups should take only one minute, but that they should take less than 10 minutes (in other words, "single digit minute"). Closely associated is a yet more challenging concept of One-Touch Exchange of Die, (OTED), which says changeovers can and should take less than 100 seconds.
SIPOC		Acronym for Suppliers, Inputs, Process, Outputs, and Customer; enables an "at-a-glance," high-level view of a process.
Six Sigma or 6 Sigma		A term coined by Motorola to express process capability in parts per million. A Six Sigma process generates a maximum defect probability of 3.4 parts per million (PPM) when the amount of process shifts and drifts are controlled over the long term to less than +1.5 standard deviations.  The term is used to describe Process Improvement initiatives using sigma-based process measures and/or striving for Six Sigma-level performance.
Skewed Distribution		A non-symmetrical distribution having a tail in either a positive or negative direction.
SPC		Statistical Process Control is use of data gathering and analysis to monitor processes, identify performance issues, and determine variability/ capability. See also Run Charts; Control Charts.
Special cause		Instance or event that impacts processes only under "special" circumstances -i.e., not part of the normal, daily operation of the process. See Common Cause; Variation.
Specification		The engineering requirement or customer requirement for judging acceptability of a particular characteristic.
Sponsor (or Champion)		Person who represents team issues to senior management and gives final approval on team recommendations; facilitates obtaining of team resources as needed; helps the Project Leader and team overcome obstacles; acts as a mentor for the Project Leader
Stable Process		A process that is free of assignable causes (see also Statistical Control).
Standard Deviation		A statistical index of variability that describes the process spread or width of a distribution.
Standard Work		Standard Work is a tool that defines the interaction of a person with tooling and equipment used in producing a product.  It shows the motion of the operator with regard to the process sequence and identifies the amount of work-in-process required to provide level flow.  Standard work establishes a routine/habit/pattern for repetitive tasks, makes managing (scheduling, resource allocation) easier, establishes the relationship between man and environment, provides a basis for improvement by defining the normal and highlighting the abnormal, and it inhibits backsliding.
Standard Work in Process (SWIP)		The MINIMUM amount of Work-In-Process needed to allow the operator continued performance of Standard Work, and thus obtain, a continuous flow of product.  The SWIP can be calculated by taking the Total Cycle Time and dividing it by Takt Time.  By analyzing the amount of Work-In-Process vs. SWIP, we can identify the causes of variation and find ways to reduce it.
Statistical Control		The condition describing a process from which all special/assignable causes of variation have been eliminated and only common/random causes remain.  Applies to both the mean (location) and standard deviation (spread).  Such a condition is most often evidenced on a control chart that displays an absence of nonrandom variation.
Statistical Process Control		The application of standardized statistical methods and procedures to a process for control purposes.
Storyboard		A pictorial display of all the components in the improvement process used by the team to arrive at a solution; used in presentations to Sponsor, senior management, and others.
Stratification		Looking at data in multiple layers of information such as what (types, complaints, etc.), when (month, day, year, etc.), where (region, city, state, etc.), and who (department, individual).
Stratified sampling		Dividing the larger population into subgroups, then taking your sample from each subgroup.
Sub-Optimization		Optimizing each piece of equipment to keeping all machines running, no matter the cost or consequence.  Typically this inflates the number-one cost of production -- material.
Supermarket		A controlled amount of items that are sorted, made ready for presentation and usage, usually located near a line-side upstream process.  It is used to make customer requirements visible and to schedule production at an upstream process in order to improve flow and better control levels of Work in Process (WIP).
Supplier		Any person or organization that feeds inputs (products, services, or information) into the process; in a service organization, many times the customer is also the supplier.
Systematic sampling		Sampling method in which elements are selected from the population at a uniform interval (e.g., every half-hour, every twentieth item); this is recommended for many Six Sigma measurement activities.
	TAKT Time		Takt time is the time in which product must be produced in order to match the rate of customer demand.  The pace of production synchronized with the rate of sales.  It can be calculated by taking the daily operating time (in seconds) and dividing by the daily customer demand (in logical units).
	Theory		A plausible or scientifically acceptable general principle offered to explain phenomena.
	Theory of Constraints (TOC)		A methodology aimed at achieving the most efficient flow of material in a plant through continuous process improvement.  Basically, TOC is a scheduling and inventory control philosophy.  It proposes that: A firm is a ‘chain’ of interdependent links (departments, functions, resources). Parts of the ‘chain’ have the potential for greater performance, but cannot realize it because of a weak link (internal or external bottleneck) also known as a constraint.  Every organization has at least one constraint.  The highest priority of management should be to maximize the firm’s throughput (defined in terms of rate of generation of revenue) and not just the output (rate of generation of goods or services). The primary goal of a firm is to realize higher net income – now and in the future. Ignorance or disregard of distinction between constrained factors and non-constrained factors inevitably leads to poor decision-making. The central idea in lean production is identification and removal of waste; in TOC it is identification and removal of constraints.
	Throughput (as it relates to TOC)		The quantity of money generated by the firm through sales over a specified period of time.  (dollars from sales)  Simply put, it is the rate at which the entire system generates money.  Throughput equals Sales revenue per unit minus Purchased material cost per unit (in dollars)  Alternate definition is that throughput equals Sales revenue minus all of the truly variable costs (roughly equivalent to contribution margin).
	Total Productive Maintenance (TPM)		A Japanese approach to maximizing the effectiveness of equipment and facilities used within a business.  An integrated set of activities aimed at maximizing equipment effectiveness by involving everyone in all departments at all levels, typically, through small group activities.  The methodology is designed to ensure that every machine in a production process always performs its required task and its output rate is never disrupted.  Total productive maintenance aims to improve the condition and performance of particular facilities through a standard set of maintenance activities.  This usually entails implementing the 5S system, measuring the six big losses, prioritizing problems, and applying problem solving with the goal of achieving zero breakdowns.
	Transforming Data		A mathematical technique used to create a near normally distributed data set out of a non-normal (skewed) data set.
	UCL, LCL		Upper Control Limit, Lower Control Limit;  limits determined by the process beyond which we rarely expect to see data if the process is operated on target and in control.  Usually these are set ±3s about the process target.  For normally distributed data these limits include 99.7% of the observations.
	USL, LSL		Upper Specification Limit, Lower Specification Limit;  limits set by the downstream customer, internal or external, beyond which we should not operate the process.
	Upstream		Processes (tasks, activities) occurring prior to the task or activity in question.
	Utilization		Proportion of the available time that an equipment or system is actually operating.  It is calculated by taking the Operating hours and dividing it by the available hours (and is usually expressed as a percentage).
	Value		That which the customer is willing to pay for.
	Value-adding activities		Any activity that transforms a product or service to meet the customer need.  Steps/tasks in a process that meet all three criteria defining value as perceived by the external customer: 1) the customer cares; 2) the thing (information or product) moving through the process changes (form, fit, or function) or quality is improved; and 3) the step is done right the first time.
	Value Analysis		Evaluating the total lead-time and value-added time to identify the percentage spent in value added activities.
	Value-enabling activities		Steps/tasks in a process enabling work to move forward and add value to the customer but not meeting all three of the value-adding criteria; should still be scrutinized for time and best practices-can it be done better?
	Value Stream		All steps, both Value Added and Non Value Added, required to bring the product or service from raw material to the customer.  The Value Stream starts with raw materials, initial information, or initial requirements from the customer and ends with the end-customer’s requirements being satisfied.  A company, or company site, can have multiple value streams.
	Value Stream Map		A map that uses Lean symbols to represent the value stream.  The flow of product goes across the bottom of the map from left to right.  The flow of information goes across the top of the map from right to left.  Data on the various steps in the value stream is indicated on the map.  The purpose of the map is to review the map and data, looking for opportunities to reduce waste or variation.  It includes calculations of total cycle time and value-added time. Typically written for the current state of the value chain and the future, to indicate where the business is going.
	Variation		Change or fluctuation of a specific characteristic that determines how stable or predictable the process may be; affected by environment, people, machinery/equipment, methods/procedures, measurements, and materials; any Process Improvement should reduce or eliminate variation. See also Common Cause; Special Cause.
	Variation:  Common Cause		Variability introduced to a process that may not be controllable by the operator and may require outside assistance to reduce in size.
	Variation:  Special Cause		Variability introduced to a process that should be controllable by the operator of the process.
	Visual Controls		Creating standards in the workplace that make it obvious if anything is out of order and by displaying the status of an activity so every employee can see it and take appropriate action.
	Visual Management		The use of visual media in the organization and general administration of a business.  This would include the use of color, signs, and a clear span of sight in a work area.  These visuals should clearly designate what things are and where they belong.  They should provide immediate feedback as to the work being done and its pace.  The other function served by Visual Management is to provide access to information needed in the operation of a business.  This would include charts and graphs which allow the business status to be determined through their review.  This review should be capable of being performed at a glance.
	Visual Work Place		When Anyone Can Walk Into a Workplace and, in 90 seconds or less, Visually understand the current situation (Self-explaining), including 1) the work process (Self-Ordering), 2) if you are ahead, behind or on schedule (Self-Regulating), and 3) when there is an abnormality (Self-Improving).
	Voice of the Customer, (VOC)		Data (complaints, surveys, comments, market research, etc.) representing the views/needs of a company's customers; should be translated into measurable requirements for the process.
	Voice of the Process (VOP)		Statistical data that is feedback to the people in the process to make decisions about the process stability and/or capability as a tool for continual improvement.
	Waste (8 Wastes)		The focus of Lean Thinking is removal of waste from the process.  The eight wastes include: Overproduction, Waiting, Transport, Over processing, Inventories, Movement, Defects, and Ingenuity of people.
	Work in Process (WIP)		Items waiting between operation steps to be processed.
	Work Out		GE Work-Out is a process for involving large numbers of people simultaneously in process improvement. The GE Work-Out Process captures the collective creativity of an organization on critical business issues and translates those ideas into action. Work-Outs can be simple, focusing on eliminating bureaucracy and rework or rigorous, using advanced analytical tools. GE invented Work-Out in the late 80s, primarily to eliminate red tape and to encourage employees to get involved and take action. Increasingly, the focus of GE Work-Out shifted to business processes, then to customers and suppliers, then to change acceleration. By the late 1990s, GE Work-Out had become the basis for the company’s push into Six Sigma and has since served as the foundation for GE’s work on digitization and e-business.
	Work Sequence		The correct steps the operator takes, in the order in which they should be taken. See Standard Work.
	X or Input		Variable used to signify factors or measures in the Input or Process segments of a business process or system.
	Y or Output		Variable used to signify factors or measures at the Output of a business process or system. Equivalent to "results." A key principle of Six Sigma is that Y is a function of upstream factors; or Y = f(x).
	Yield		Total number of units handled correctly through the process step(s).
	Yokoten		The term Toyota uses for the horizontal transfer of information and knowledge across an organization.