Lean Terminology from The Continuous Improvement Companion
When a process is said to be in control, statistically speaking, that means that all the variation can be attributed to common causes. All of the observed variation is just a function of the natural randomness built into a system or process. In a nutshell, an in control process is Read more…
A control, or control group is a tool used to confirm whether changes are actually having an effect. The control group is exposed to the same conditions as the test group with the exception of the variable that is being examined. For example, you may be experimenting whether increasing tire Read more…
Containment is an interim quality management step. When a problem is identified, the organization must take steps to prevent defects from escaping. Containment is a method of systematically identifying and quarantining all materials that are suspect until they can be confirmed not to contain defective items. Note that this is Read more…
A competitive advantage is a condition through which one organization has to spend fewer resources to get the same benefit as a competitor (or, of course, gets more benefit for spending the same amount of resources.) This advantage can be because of a perception of higher quality products, because of Read more…
Making changes can be a rather large challenge. This is especially true when you are committed to making improvements to the value stream as a whole rather than local ones for an individual process. It is common for disputes to occur, especially when a project team recognizes that there can Read more…
The central limit theorem, in layman’s terms, says that regardless of the shape of the distribution of a population, in most cases, the mean of random samples taken from that population will approximate a normal distribution. The larger the sample, or the larger the number of samples, the closer the Read more…
A Corrective Action Report (CAR) is a tool used to support a quality program. It is a written record of the investigation into the root cause of a problem and the actions that are required to permanently eliminate the underlying issue. A documented corrective action program is a requirement of Read more…
Calibration is the process of comparing the measuring or output capabilities of a piece of equipment to a known standard. This allows for one of two basic actions that make sure that the equipment can be used effectively. You can apply a correction factor to the instrument, much like “Kentucky Read more…
C-Level executives are the top individuals in an organization’s hierarchical structure. The most common are: CEO (Chief Executive Officer) CFO (Chief Financial Officer) COO (Chief Operating Officer) There are also frequently c-level executives in charge of marketing or information technology. Some organizations will even go further and assign a chief Read more…
Continuous data can have any value within a given range. Compare this to discrete data which is limited in the values it takes. For example, the number of dots on a pair of dice or the number of wheels on a car limit you to a finite set of values. Read more…
CRM stands for customer relationship management. It essentially is the practice of taking an active approach to understanding how a company interacts with its customers and creating a strategy to manage that relationship for both current and future customers. In practice, CRM is typically used to describe software systems, of Read more…
Capability simply means that a person or machine has the ability to perform a required task. It is a binary measure. That simply means that it is physically possible in the current state to do something, or it is not. Capability should not be confused with yield or effectiveness (how Read more…