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List of Terms and Definitions

5 Whys: A problem-solving method that involves asking "Why?" five times (or as many times as needed) to drill down to the root cause of a problem.


5S (Sort, Set in order, Shine, Standardize, Sustain): A workplace organization method that helps create and maintain an orderly, clean, and disciplined work environment.


Affinity Diagram: A tool used to organize ideas, data, and insights into groups based on their natural relationships, often used in brainstorming and problem-solving sessions.


Andon: A visual aid (like a lighted signal) that indicates the status of a manufacturing process and highlights problems in real-time.


ANOVA (Analysis of Variance): A statistical method used to determine if there are any statistically significant differences between the means of three or more independent groups.


Attribute Data: Data that is counted for recording and analysis, based on the presence or absence of a characteristic or attribute in each of the items in a group of items being evaluated.


Autonomation (Jidoka): A quality control process that empowers machines to stop themselves when a defect is detected, enabling immediate attention to problems.


Availability: A measure of the degree to which a system or component is operational and accessible when required for use.


Balanced Scorecard: A strategic planning and management system used to align business activities to the vision and strategy of the organization by monitoring performance against strategic goals.


Baseline Data: Initial data collected before changes or improvements are implemented, used as a benchmark for measuring progress.


Batch Processing: A manufacturing process in which components or goods are produced in groups (batches) rather than in a continuous stream.


Benchmarking: The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.


Beta Risk: The risk of accepting a false null hypothesis (also known as Type II error), in other words, concluding that there is no effect when there actually is one.


Binomial Distribution: A probability distribution that summarizes the likelihood that a value will take one of two independent states and is used for experiments that have two possible outcomes (e.g., success or failure).


Black Belt: A person who has achieved a high level of competency in Lean Six Sigma methodologies, capable of leading complex projects and mentoring Green Belts.


Bottleneck Analysis: The process of identifying constraints (bottlenecks) that limit the throughput or performance of a process and then systematically improving those constraints to increase efficiency.


Box Plot: A graphical representation of data that shows the distribution, central value, and variability of a dataset; it highlights outliers and the interquartile range.


Brainstorming: A group creativity technique designed to generate a large number of ideas for the solution to a problem.


Business Process Mapping: The visual representation of the steps involved in a business process from start to finish, used to understand and analyze the process better.


Capability Analysis: A statistical technique to determine how well a process meets a set of specification limits, by comparing the output of an in-control process to the specification limits.


Cause and Effect Diagram (Fishbone or Ishikawa Diagram): A visual tool used to identify and organize the potential causes of a problem in order to identify its root causes.


Cellular Manufacturing: A manufacturing process that groups various machines into cells, each of which works on a similar set of tasks or a specific component, to improve efficiency and flexibility.


Central Limit Theorem: A statistical theory that states that the distribution of sample averages approximates a normal distribution as the sample size becomes larger, regardless of the population's distribution.


Change Management: The discipline that guides how we prepare, equip, and support individuals to successfully adopt change in order to drive organizational success and outcomes.


Charter: A formal document that defines the scope, objectives, and participants in a project. It authorizes the project's start and is a reference of authority for the future.


Check Sheet: An organized method for recording data; a generic tool that can be adapted for a wide variety of purposes, but mostly used to collect data in real time at the location where the data is generated.


Chi-square Test: A statistical test applied to sets of categorical data to evaluate how likely it is that any observed difference between the sets arose by chance.


CLT (Central Limit Theorem): Refer to Central Limit Theorem.


COGS (Cost of Goods Sold): Direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials and labor directly used to create the product.


Continuous Flow: A manufacturing strategy that involves producing items at a constant rate, allowing for products to move from one step to the next with minimal wait time.


Continuous Improvement (Kaizen): A long-term approach to work that systematically seeks to achieve small, incremental changes in processes in order to improve efficiency and quality.


Control Chart: A statistical tool used to monitor and control a process by regularly checking its performance and the quality of its output.


Control Charts: Plural of Control Chart, indicating the use of multiple charts to monitor various aspects of the process or different processes.


Control Limits: The boundaries within a control chart which indicate the acceptable range of process variability. They are based on the process data and are not the same as specification limits.


Control Plan: A detailed action plan designed to ensure that processes are controlled and that improvements are sustained over time.


COPQ (Cost of Poor Quality): The costs that would disappear if systems, processes, and products were perfect. COPQ includes costs such as rework, scrap, and warranty claims.


Correlation: A statistical measure that describes the extent to which two variables change together, indicating the strength and direction of this relationship.


Critical Path: The sequence of stages determining the minimum time to complete a project, calculated by identifying the longest stretch of dependent activities.


Critical to Quality (CTQ): Specific, measurable characteristics of a product or process whose performance standards or specification limits must be met in order to satisfy the customer.


Cross-functional Team: A group of people with different expertise working toward a common goal, often from various departments within a company, such as engineering, marketing, production, and finance.


CTQ Tree: A tool used to systematically break down customer needs into specific, measurable performance requirements. The "Critical To Quality" tree translates broad customer needs into concrete, actionable quality attributes.


CUSUM Chart: Cumulative Sum Control Chart, used for monitoring change detection. CUSUM charts plot the cumulative sum of deviations from a target value, helping to identify subtle shifts in the process mean.


Cycle Time: The total time from the beginning to the end of a process, as defined by the customer. It often includes process time, during which a unit is acted upon to bring it closer to an output, and delay time, during which a unit of work is waiting to take the next action.


Data Collection Plan: A detailed document or plan that outlines the type of data to be collected, the method of data collection, the timing of data collection, and who will collect the data. It ensures that data collected is relevant, accurate, and timely.


Defect: Any instance or occurrence where a product or service fails to meet the required specifications or customer expectations.


Defects Per Million Opportunities (DPMO): A metric used to quantify the number of defects in a process per one million opportunities. It allows for the comparison of the quality of different processes.


Defects Per Unit (DPU): The average number of defects identified in each unit of output. It's a straightforward measure of the quality of a process.


Demand Flow: A strategy that aligns production processes and resources with customer demand, ensuring that products are manufactured just in time to meet customer requirements.


Demand Pull: A production strategy where the production process is initiated by actual customer demand rather than forecasted demand. It is the basis of lean manufacturing philosophy.


Deming Cycle (PDCA): A continuous improvement model consisting of a logical sequence of four repetitive steps for continuous improvement and learning: Plan, Do, Check, Act.


Design for Six Sigma (DFSS): An approach used to design or redesign a product or service from the ground up with the goal of achieving six sigma levels of quality. It emphasizes defect prevention rather than defect detection.


Design of Experiments (DOE): A statistical method that helps identify the relationship between factors affecting a process and the output of that process. It is used to find cause-and-effect relationships and to optimize process parameters.


DMADV (Define, Measure, Analyze, Design, Verify): A data-driven quality strategy used to design new processes or products at Six Sigma quality levels. It consists of five phases: Define, Measure, Analyze, Design, and Verify.


DMAIC (Define, Measure, Analyze, Improve, Control): A systematic, data-driven methodology used for improving, optimizing, and stabilizing business processes and designs. The five phases are Define, Measure, Analyze, Improve, and Control.


Downtime: The period during which a system or equipment is not available for use or operation. It often refers to periods when a machine is not operational due to maintenance, breakdowns, or setup times.


DPMO (Defects Per Million Opportunities): A metric used in process improvement initiatives to calculate the number of defects in a process per one million chances or opportunities for a defect to occur. This measurement helps in understanding the level of quality in a process.


DPU (Defects Per Unit): This metric quantifies the average number of defects found in each unit of product produced. It serves as a critical measure for assessing the quality and performance of a manufacturing or production process.


Early Equipment Management: An approach in Total Productive Maintenance (TPM) focused on designing and deploying equipment to maximize its efficiency and effectiveness over the entire life cycle.


Efficiency: The ratio of the output gained from a process to the input used. Efficiency is often used to evaluate the effectiveness of resource utilization in producing the intended output.


Eight Wastes: In Lean philosophy, the eight wastes are defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, and extra-processing. Identifying and eliminating these wastes is key to improving efficiency and effectiveness in a process.


Error Proofing (Poka-yoke): A technique used to prevent or detect and reject errors or defects in a process automatically, typically through the use of simple, often mechanical, devices or modifications.


Escaped Defect: A defect that passes through the entire production process and reaches the customer, often leading to customer dissatisfaction and potential recalls or returns.


FIFO (First In, First Out): An inventory management and valuation method where goods produced or acquired first are sold, used, or disposed of first.


Fishbone Diagram (also known as Ishikawa or Cause and Effect Diagram): A visual tool used to systematically identify and present all possible causes of a problem to find its root causes, resembling the skeleton of a fish.


Five S (5S) - Sort, Set in Order, Shine, Standardize, Sustain: A systematic approach to workplace organization and standardization to improve efficiency, safety, and cleanliness. The five steps are Sort (eliminate that which is not needed), Set in Order (organize), Shine (clean), Standardize (create rules and standards), and Sustain (maintain the system).


Five Whys: A problem-solving technique that involves asking "why" repeatedly (typically five times) to drill down to the root cause of a problem.


Flowchart: A diagram that represents a process, showing the steps as boxes of various kinds, and their order by connecting them with arrows.


FMEA (Failure Mode and Effects Analysis): A systematic method for evaluating a process to identify where and how it might fail and to assess the relative impact of different failures, for the purpose of identifying the parts of the process that are most in need of change.


FTY (First Time Yield): The percentage of products produced that meet quality standards without requiring rework or correction.


Full Factorial Design: An experimental design technique that involves studying all possible combinations of factors and factor levels to investigate the effects on a response variable.


Gage R&R (Repeatability and Reproducibility): A statistical tool used to determine the amount of variation in the measurement system arising from the measurement device and the people taking the measurement.


Gemba (The Real Place): A Japanese term meaning the place where value is created; in the workplace, it refers to the shop floor or where the work is done.


Genchi Genbutsu (Go and See): A principle that suggests that to truly understand a situation, one needs to go to the 'real place' - where work is done.


Green Belt: A certification level within the Lean Six Sigma methodology, indicating an individual has been trained on improvement techniques and team leadership, typically part of a broader team led by a Black Belt.


Histogram: A graphical representation of the distribution of numerical data, showing the number of data points that fall within a range of values, arranged in consecutive, non-overlapping intervals.


Hoshin Kanri (Policy Deployment): A strategic planning method used to ensure that the strategic goals of a company are communicated throughout the company and then put into action.


House of Quality: A part of the Quality Function Deployment process that uses a matrix to help teams convert customer requirements into operating and engineering goals.


Hypothesis Testing: A statistical method used to make decisions about a population based on sample data. It involves making an assumption (hypothesis) about a population parameter and then using sample statistics to test the assumption.


Impact Matrix: A tool used to assess the potential impact and feasibility of changes, improvements, or new projects. It evaluates options based on criteria such as cost, benefits, and risk.


Lean Enterprise: An organization that applies lean principles across its entire operations, focusing on value creation for the customer while minimizing waste.


Lean Manufacturing: A systematic method for waste minimization within a manufacturing system without sacrificing productivity, which can include customer focus, continuous improvement, and process optimization.


Lean Six Sigma: A methodology that combines the waste reduction principles of Lean Manufacturing with the process improvement tools of Six Sigma to enhance performance by systematically removing waste and reducing variation.


Linearity and Bias: Assessment of a measurement system's accuracy across its entire operating range (linearity) and its ability to measure the true value without systematic error (bias).


Little's Law: A theorem in queueing theory that states the long-term average number of customers in a stable system L is equal to the long-term average effective arrival rate, λ, multiplied by the average time a customer spends in the system, W (L = λW).


Load Leveling: The process of distributing production load evenly across machines or production facilities to reduce bottlenecks and optimize capacity.


Local Optima: A solution that is optimal (either maximum or minimum) within a neighboring set of candidate solutions, but not necessarily the best possible solution overall.


Logical Data Model: An abstract model that organizes data elements and standardizes how the data elements relate to one another and to the properties of real-world entities.


Loss Function: A mathematical function that maps values of one or more variables onto a real number intuitively representing some "cost" associated with those values.


Lower Control Limit (LCL): The threshold in a control chart below which the process variation is considered to be in control but close to the lower specification limit.


Lower Specification Limit (LSL): The minimum acceptable value in a set of specifications. Values below the LSL are considered defective or unacceptable.


Machine Capability Index (Cmk): A measure of the capability of a machine to produce output within specified limits, considering both the accuracy and consistency of the machine.


Main Effects Plot: A graphical representation used in analysis of variance (ANOVA) and designed experiments to show the effect of changing levels of an independent variable on the response variable.


Maintainability: The ease with which a product or system can be maintained in order to correct defects or their cause, repair or replace faulty or worn-out components without having to replace still working parts, prevent unexpected working conditions, and maximize a product’s useful life.


Management by Fact: A management approach that emphasizes decision-making based on data and statistical analysis rather than intuition or personal experience.


Mapping: The visual representation of a process, system, or workflow to

understand, analyze, and improve the sequence of steps and activities involved.


Marginal Analysis: The process of analyzing the additional benefits of an activity compared to the additional costs incurred by that same activity.


Market Analysis: The quantitative and qualitative assessment of a market, looking into the size of the market both in volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation.


Master Black Belt: A Lean Six Sigma certification level indicating an individual who has achieved a high degree of mastery of Lean Six Sigma principles, tools, and practices and often leads strategic projects and mentors Black Belts and Green Belts.


Material Flow: The movement of physical materials through the supply chain from supplier to manufacturing to distribution and finally to the customer, optimized for efficiency and effectiveness.


Mean: The average of a set of numbers, calculated by adding them together and dividing by the count of the numbers.


Measure Phase: The second phase in the DMAIC (Define, Measure, Analyze, Improve, Control) process, focusing on data collection and the establishment of baseline measurements for the process being improved.


Measurement System Analysis (MSA): A collection of mathematical methods used to evaluate the accuracy and precision of measurement systems, assessing the amount of variation contributed by the measurement system itself.


Median: The middle value in a list of numbers, which separates the higher half from the lower half of the data set.


Metric: A standard of measurement used to assess the performance, effectiveness, and quality of processes, products, or services.


Mistake Proofing (Poka-Yoke): A technique used to prevent errors by designing processes, systems, or tools in a way that makes it impossible or at least significantly harder to make mistakes.


Mode: The value that appears most frequently in a data set.


Modified Process: A process that has been changed or altered from its original form to improve efficiency, effectiveness, or output quality.


Monitor Phase: A phase typically following the implementation of improvements or changes, during which the process or system is observed to ensure that the changes are effective and that performance remains stable over time.


Monte Carlo Simulation: A computational technique that uses random sampling to estimate mathematical functions and simulate the behavior of complex systems or processes.


Mood's Median Test: A non-parametric test that assesses whether two or more samples come from populations with the same median.


Moving Average: A calculation to analyze data points by creating a series of averages of different subsets of the full data set. It is commonly used in time series data to smooth out short-term fluctuations and highlight longer-term trends or cycles.


Moving Range: The difference between consecutive observations, used to monitor variability in processes over time.


Muda: The Japanese word for "waste," referring to any activity that consumes resources without adding value in a production process.


Muda (Waste): Refer to Muda above.


Multi-Vari Chart: A graphical tool used to display variation in a process or system, typically representing multiple variables to identify patterns or relationships.


Multivariate Analysis: A set of statistical techniques used to analyze data that arises from more than one variable. This type of analysis is especially useful when trying to understand complex relationships among several variables.


Mura: The Japanese word for "unevenness" or "inconsistency" in processes, leading to waste (muda) and strain (muri).


Mura (Unevenness): Refer to Mura above.


Muri: The Japanese term for "overburden" or "unreasonableness," referring to pushing machines, processes, or employees beyond their natural limits, which can lead to inefficiency and waste.


Muri (Overburden): Refers to the practice of imposing unreasonable workloads or pressure on employees, machines, and processes, leading to inefficiency, defects, and downtime.


Mutually Exclusive Events: Two or more events that cannot occur at the same time in any given experiment or observation.


Nominal Group Technique (NGT): A structured form of brainstorming that allows individuals to contribute ideas independently and anonymously, which are then discussed and ranked as a group.


Non-value Added Activities: Tasks or processes that take time, resources, or space but do not add any actual value to the product or service from the customer's perspective.


Non-Value-Added Activity: Refer to Non-value Added Activities above.


Normal Distribution: A bell-shaped distribution that is symmetrical about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.


Normality Test: A statistical test used to determine if a data set is well-modeled by a normal distribution.


Null Hypothesis: In statistical hypothesis testing, it is the hypothesis that there is no effect or no difference, and it is the assumption that the experiment seeks to disprove or reject.


OEE (Overall Equipment Effectiveness): A measure of how well equipment is utilized in the manufacturing process, combining availability, performance efficiency, and quality rates.


Operational Definitions: Clearly defined criteria or standards that specify how different variables or terms in a study or project will be measured and collected.


Opportunity: In the context of Lean Six Sigma, it refers to any instance where a process can produce a defect, used in calculating metrics like DPMO.


Opportunity Flow Diagram: A visual tool that maps out the steps in a process, highlighting where opportunities for defects or improvements exist.


Optimal Order Quantity: The most cost-efficient quantity of items to order, balancing the costs of ordering and holding inventory.


Order of Magnitude Estimate: A rough estimate of the size, length, or amount of something, typically within a factor of ten of the actual value.


Organizational Culture: The shared values, beliefs, and norms within an organization that shape its practices and behaviors.


Outlier: An observation point that is distant from other observations, which may indicate a variability in the measurement or a potential error in the data.


Overall Equipment Effectiveness (OEE): Refer to OEE (Overall Equipment Effectiveness) above.


P Chart: A type of control chart used for monitoring the proportion of defective units in a process over time.


P Value: In statistical hypothesis testing, it's the probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is correct.


Pareto Chart: A bar graph where factors are plotted in descending order of frequency or impact, combined with a cumulative percentage line, to highlight the most significant factors in a dataset.


Pareto Principle: Often referred to as the 80/20 rule, it is the idea that 80% of effects come from 20% of the causes. In business, it's used to identify the most important factors, problems, or opportunities.


Part-Part-Matrix: A tool used to analyze and display the relationship between different parts of a system or components of a project to identify how they interact with each other.


Part-To-Whole Diagram: A graphical representation that shows how different parts or components fit into a larger category or system, often used to illustrate the composition of a whole.


PDCA (Plan-Do-Check-Act): A four-step management method used in business for the control and continuous improvement of processes and products.


PDCA Cycle (Plan, Do, Check, Act): Refer to PDCA (Plan-Do-Check-Act) above.


Performance Board: A visual management tool that displays key performance indicators (KPIs) and metrics to track and communicate the status of performance against targets.


Performance Metrics: Quantifiable measures used to gauge a company's performance over time, including efficiency, effectiveness, and quality.


PERT (Program Evaluation and Review Technique): A project management tool used to schedule, organize, and coordinate tasks within a project, particularly useful in projects where the time required to complete tasks is uncertain.


Poka-Yoke (Error Proofing): A Japanese term for a process that helps an equipment operator avoid (yokeru) mistakes (poka). Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to human errors as they occur.


Poka-Yoke (Mistake Proofing): Refer to Poka-Yoke (Error Proofing) above.


Population: In statistics, the entire pool from which a statistical sample is drawn and about which inferences are made.


Positional, Cyclical, Temporal Variation: Variations in data or processes that are caused by different factors: positional (variation in different positions or conditions), cyclical (repeating patterns over time), and temporal (variation over time).


Postponeability: The ability to delay the final production or delivery of a product to minimize costs and maximize responsiveness to customer demand.


Potential Failure Mode and Effects Analysis (PFMEA): A systematic approach for evaluating a process to identify where and how it might fail and to assess the impact of different failures, for the purpose of identifying parts of the process that need change.


Pre-control Charts: A simplified control chart used to monitor the stability of a process and ensure that it operates within set control limits before and after adjustments.


Precision: The degree to which repeated measurements under unchanged conditions show the same results. It refers to the closeness of two or more measurements to each other.


Predictive Maintenance: Techniques designed to help determine the condition of in-service equipment in order to predict when maintenance should be performed, aiming to reduce downtime and maintenance costs.


Preventive Maintenance: Maintenance that is regularly performed on a piece of equipment to lessen the likelihood of it failing. It is performed while the equipment is still operational to prevent unexpected breakdowns.


Process: A series of actions or steps taken in order to achieve a particular end. In the context of Lean Six Sigma, it refers to the set of interrelated work activities characterized by a set of specific inputs and value-added tasks that make up a procedure for a set output.


Process Behavior Chart: A type of control chart used to determine if a process is in a state of statistical control by monitoring variation and detecting trends over time.


Process Capability: The ability of a process to produce output within specification limits, measured using statistical tools to assess the variability of the output compared to the specified range or limits.


Process Capability Index (Cpk): A statistical measure of a process's ability to produce output within specified limits, considering the process mean and variability. It shows how well the parts being produced fit into the range specified by the design limits.


Process Decision Program Chart (PDPC): A tool used to understand a goal in relation to the steps for getting to the goal. It helps teams anticipate the risks and outcomes of their decisions.


Process Flow Diagram: A graphical representation of a process, showing the sequence of process tasks, which is critical for analyzing how processes work and for modeling new processes.


Process Improvement: The proactive task of identifying, analyzing, and improving upon existing business processes within an organization for optimization and to meet new quotas or standards of quality.


Process Map: A detailed flowchart that is a visual representation of the process from start to finish, showing each step in the sequence.


Process Mapping: The act of creating a process map, which involves documenting the steps involved in a process, the decisions made, and the flow of tasks or actions from start to finish.


Process Performance (Pp, Ppk): Statistical measures of process capability. Pp measures the process potential by comparing the overall spread of the process to the spread of the customer's requirements, while Ppk measures how centered the process is within the customer's requirements.


Process Sigma: A measure of process quality that indicates how many standard deviations a process deviates from perfection, based on the defect rate.


Process Stability: The extent to which a process operates in a predictable manner over time, indicating that the process is under control and produces consistent results.


Process Thinking: A mindset that focuses on process rather than outcome, emphasizing the importance of understanding how processes lead to outcomes and how they can be improved.


Product Family: A group of related products that satisfy a common customer need or function and are often produced using similar processes.


Production Kanban: A signaling system, part of the Kanban method, that triggers the production of a product or component. It's used to achieve Just-In-Time (JIT) production and reduce inventory levels.


Productivity: The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.


Project Charter: A document that authorizes the project, outlining objectives, scope, participants, and the roles and responsibilities of participants.


Project Management: The discipline of planning, organizing, securing, managing, leading, and controlling resources to achieve specific goals.


Project Scope: The part of project planning that involves determining and documenting a list of specific project goals, deliverables, tasks, costs, and deadlines.


Proportional, Integral, Derivative (PID) Control: A control loop feedback mechanism widely used in industrial control systems. A PID controller continuously calculates an error value as the difference between a desired setpoint and a measured process variable and applies a correction based on proportional, integral, and derivative terms.


Pull System: A method of controlling the flow of resources by replacing only what has been consumed. It is designed to reduce waste in the production process, typically part of Just-In-Time (JIT) systems.


Pulse Line: A manufacturing approach designed to improve productivity and efficiency by moving products through various processing stations at a constant rate, similar to an assembly line but often with the flexibility to adjust to changes in demand.


Push System: A production strategy where products are pushed through the manufacturing process to produce goods ahead of demand, leading to higher inventory levels.


QFD (Quality Function Deployment): A structured method used to transform customer needs into engineering characteristics for a product or service, ensuring that design reflects customer desires.


Quality: The degree to which a set of inherent characteristics fulfills requirements. It often refers to the excellence of a product or service in meeting customer expectations.


Quality Assurance (QA): A way of preventing mistakes and defects in manufactured products and avoiding problems when delivering solutions or services to customers; it's part of quality management focused on providing confidence that quality requirements will be fulfilled.


Quality Circle: A group of workers who perform similar duties and meet at intervals to discuss workplace improvements, focusing on the quality of their output as a means to improve the operations.


Quality Control (QC): The part of quality management focused on fulfilling quality requirements. This can involve testing units and determining if they are within the specifications for the final product.


Quality Function Deployment (QFD): Refer to QFD (Quality Function Deployment) above.


Quality Management System (QMS): A formalized system that documents processes, procedures, and responsibilities for achieving quality policies and objectives, helping coordinate and direct an organization's activities to meet customer and regulatory requirements and improve its effectiveness and efficiency on a continuous basis.


Quantitative Analysis: The process of using mathematical and statistical modeling, measurement, and research to understand behavior. Quantitative analysts aim to represent a given reality in terms of a numerical value.


Queue Time: The time a product spends waiting in line to be processed at the next machine or workstation, often a significant component of total lead time in manufacturing.


Quick Changeover: Techniques designed to reduce the time it takes to switch from producing one product or variant to another, thus lowering inventory levels and increasing responsiveness to customer demand.


Quick Wins: Small, easy improvements that can be implemented quickly to gain momentum or achieve immediate benefits in a process improvement project.


RACI Matrix (Responsible, Accountable, Consulted, Informed): A tool used to identify roles and responsibilities in cross-functional or departmental projects and processes, clarifying who is responsible, accountable, consulted, and informed for each task.


Random Variation: Variation in data, processes, or systems that is caused by factors that cannot reasonably be controlled, making the output unpredictable on a short-term basis.


Range: The difference between the highest and lowest values in a set of data. It provides a measure of the spread or dispersion of a set of data points.


Rater Bias: The presence of systematic errors that affect the accuracy of ratings in the assessment of performance or characteristics, often due to the subjective judgment of the evaluator.


Reengineering: The radical redesign of business processes for dramatic improvement in critical measures of performance such as cost, quality, service, and speed.


Regression Analysis: A statistical method for estimating the relationships among variables, often used to determine how the typical value of a dependent variable changes when any one of the independent variables is varied.


Repeatability: The degree to which measurements or observations can be duplicated under the same conditions. It is a measure of the precision of a measurement system.


Reproducibility: The ability of an entire experiment or study to be duplicated, either by the same researcher or by someone else working independently, to achieve the same results.


Return on Investment (ROI): A financial metric used to evaluate the efficiency of an investment or compare the efficiency of several investments, calculated as the net profit of the investment divided by the cost of the investment.


Risk Analysis: The process of identifying and analyzing potential issues that could negatively impact key business initiatives or projects.


Risk Management: The process of identifying, assessing, and controlling threats to an organization's capital and earnings. These risks could stem from a variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents, and natural disasters.


Root Cause Analysis: A method of problem-solving used for identifying the root causes of faults or problems. A factor is considered a root cause if its removal from the problem fault-sequence prevents the final undesirable event from recurring.


Run Chart: A graph that displays observed data in a time sequence. Often, the data displayed represent some aspect of the output or performance of a manufacturing or other business process.


Sample: A set of data or a group of items selected from a larger population and analyzed to estimate or improve the understanding of the population's characteristics.


Sampling Bias: A bias in which a sample is collected in such a way that some members of the intended population are less likely to be included than others, resulting in a biased sample.


Scatter Diagram: A type of plot or mathematical diagram using Cartesian coordinates to display values for typically two variables for a set of data. The data are displayed as a collection of points, each having the value of one variable determining the position on the horizontal axis and the value of the other variable determining the position on the vertical axis.


SIPOC (Suppliers, Inputs, Process, Outputs, Customers): A tool used by teams to identify all relevant elements of a process improvement project before work begins. It helps define a complex project that may not be well scoped, and it's typically employed at the Measure phase of the Six Sigma DMAIC methodology.


Six Sigma: A set of techniques and tools for process improvement. It was introduced by engineer Bill Smith while working at Motorola in 1986. Jack Welch made it central to his business strategy at General Electric in 1995. It seeks to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes.


SMART Goals: A mnemonic acronym, giving criteria to guide in the setting of objectives, for example in project management, employee-performance management, and personal development. The letters S and M usually mean specific and measurable. The remaining letters referring to achievable (or attainable), relevant, and time-bound.


SMED (Single-Minute Exchange of Dies): A series of techniques designed to reduce the time it takes to change from one product or batch to another to below ten minutes, thereby enabling flexible manufacturing and reducing wastage from the need to produce large batches.


SOP (Standard Operating Procedure): A set of step-by-step instructions compiled by an organization to help workers carry out complex routine operations. SOPs aim to achieve efficiency, quality output, and uniformity of performance while reducing miscommunication and failure to comply with industry regulations.


Special Cause Variation: Variation in a process that can be traced to a specific reason. The presence of special cause variation is used to signal the need for investigation and corrective action in the process.


Specification Limit: Defined values within which a system or component must operate to be considered acceptable for use or sale. They represent the maximum and minimum values within which a product or process must lie to meet customer requirements.


Stakeholder: Any individual, group, or organization that can affect, be affected by, or perceive themselves to be affected by a decision, activity, or outcome of a project.


Stakeholder Analysis: A process of systematically gathering and analyzing qualitative information to determine whose interests should be taken into account when developing and/or implementing a project or policy.


Standard Deviation: A measure of the amount of variation or dispersion of a set of values. A low standard deviation indicates that the values tend to be close to the mean of the set, while a high standard deviation indicates that the values are spread out over a wider range.


Statistical Process Control (SPC): A method of quality control which employs statistical methods to monitor and control a process. This helps ensure that the process operates efficiently, producing more specification-conforming products with less waste (rework or scrap).


Statistical Significance: A measure of the likelihood that an observed difference or relationship exists due to chance. It helps determine if the results of a study or experiment can be attributed to the intervention or whether they occurred by random chance.


Stratification: A technique used in statistics and quality management to analyze and interpret data by dividing it into smaller groups, or strata, based on specific attributes or characteristics to identify patterns.


Streamlining: The process of simplifying or eliminating unnecessary steps in a process to improve efficiency and productivity.


Strengths, Weaknesses, Opportunities, Threats (SWOT) Analysis: A strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.


Supplier Input Process Output Customer (SIPOC): A tool used in process improvement that summarizes the inputs and outputs of one or more processes in table form, effectively defining a process from start to finish.


Sustainability: The ability to maintain or improve systems and processes in a way that avoids the depletion of natural resources, ensures long-term environmental quality, and promotes a balanced approach to economic activity, environmental responsibility, and social progress.


Takt Time: The rate at which a finished product needs to be completed to meet customer demand. It is calculated as the available production time divided by the customer demand.


Target Process Capability: A goal set for the process capability index, indicating what the process is capable of producing under optimal conditions in terms of product specifications or customer requirements.


Theory of Constraints (TOC): A management philosophy that focuses on identifying and removing constraints or 'bottlenecks' that prevent a system from achieving its goals, thereby improving system performance.


Throughput: The rate at which a system generates its product or service, often considered in terms of units produced over a period of time.


Time Study: A work measurement technique for recording the times of performing a certain specific job or its elements carried out under specified conditions and analyzing the data so as to obtain the time necessary for an operator to carry it out at a defined rate of performance.


Time Value Map: A visual tool used in lean management to analyze and display the amount of value-added and non-value-added time in a process.


Total Productive Maintenance (TPM): A holistic approach to maintenance that focuses on proactive and preventive maintenance to maximize the operational efficiency of equipment.


Total Quality Management (TQM): A management approach to long-term success through customer satisfaction, focusing on the continuous improvement of processes, products, and services.


Tree Diagram: A graphical representation of a hierarchical structure, showing the relationship between different levels of information or the steps in a process.


Trend Analysis: The practice of collecting information and attempting to spot a pattern, or trend, in the information, often used for forecasting future events or performance.


TRIZ (Theory of Inventive Problem Solving): A problem-solving, analysis, and forecasting tool derived from the study of patterns of invention in the global patent literature. It offers a systematic framework for understanding and solving inventive problems.


U Chart: A type of control chart used to monitor the count of defects per unit of a process over time when the number of units is variable.


Unbiased Estimate: A statistical estimate that is expected to be equal to the population parameter, meaning it is not systematically higher or lower than the true value.


Upper Control Limit (UCL): The threshold in a control chart above which the process variation is considered to be out of control, indicating the presence of special cause variation that needs to be addressed.


Upper Specification Limit (USL): The maximum acceptable value for a characteristic or parameter. Products or services exceeding this limit are considered defective.


Utilization: The degree to which a resource (e.g., equipment, labor) is being used compared to its full potential or capacity.


Value Stream: The series of activities required to design, produce, and deliver a good or service to a customer, focusing on value addition and waste elimination.


Value Stream Mapping: A lean-management method for analyzing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer.


Variance: A statistical measure of the dispersion or spread in a set of data, indicating how much the numbers in the data set differ from the mean.


Variation: The differences in quality or characteristics among units in a batch or production run, often attributed to different causes, including random and assignable causes.


Visual Management: The use of visual signals to communicate information about a process or system quickly and effectively to those who need to know.


Voice of the Business (VOB): The needs and requirements of a business, often in terms of financial performance, operational efficiency, and market competitiveness.


Voice of the Customer (VOC): The process of capturing customers' requirements, preferences, feedback, and expectations to guide product or service development and improvement.


Voice of the Employee (VOE): The process of listening to employees' opinions, ideas, and feedback to improve engagement, satisfaction, and productivity.


Voice of the Process (VOP): The data and metrics that represent the performance of a process, indicating whether the process is stable and capable of meeting customer requirements.


Waste: Any activity that consumes resources but does not add value from the customer's perspective, often categorized into seven types in lean manufacturing (defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, and extra-processing).


WIP (Work In Process): Items in a manufacturing process that are no longer raw materials but have not yet become finished products.


Work Breakdown Structure (WBS): A hierarchical decomposition of a project into smaller components or tasks, making project management and control more manageable.


Work-in-Progress (WIP): Refer to WIP (Work In Process) above.


X-bar and R Chart: A pair of control charts used together to monitor the process mean (X-bar chart) and the process variability (R chart, or range chart) over time.


X-bar Chart: A type of control chart used for monitoring the mean values of a process over time, indicating shifts in the process average.


Y = f(x) (Output is the function of input): A fundamental principle in process improvement and design, indicating that the output (Y) is determined by the inputs (x) through a specific function (f).


Yield: The percentage of products that are manufactured correctly and without defects the first time through the manufacturing process.


Z-Score: A statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.


Zero Defects: A quality management philosophy that aims for the complete elimination of defects or errors in a product or service to improve quality and customer satisfaction.

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