encyclopedia of business excellence
DESCRIPTION
Encyclopedia of Business ExcellenceTRANSCRIPT
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Concise Encyclopedia of Business Excellence
Competitive EdgeManagement Consultants
A complete reference tool ofleading edge business concepts,
practices, tools& techniques.
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A B C D E F G H I J K L M N O
P Q R S T U V W X Z
Main Menu
Navigation: Click on the first letter of the word you want to know about
For example, if you want to know about A passion for business excellence - click on A.
Concise Encyclopedia of Business Excellence
Note:Before starting the slide show Click on slide show, sub option set up show, then loop until esc
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A
Affinity diagram
A Passion for business excellence
Activity chart
Accuracy
Action plan for excellence
Alignment
Analysis of variance
Appraisal cost
Arrow diagram
Assessment of excellence
Assignable cause
Audit of QMS
Discontent is the first step in the progress of a man or nation.Oscar Wilde
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The word passion means fire, thirst, obsession and craving. It isan Intense, high-wrought emotion that compels action.
Business excellence is a very dynamic term which aims atsuperior levels of performance in all areas of business viz- Businessresults, customer focus, leadership, people development,continuous learning, innovation and improvement, management byfacts and corporate social responsibility.
Business excellence is not a destination but a continuous journey.In order to achieve business excellence, one must first bepassionate about it.
A passion for business excellence
Click here for
additional links
Back to main menu
Back to beginning of chapter
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Accuracy
The characteristic of a measurement that tells how close anobserved value is to a true value.
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Action plan
A specific method or process to achieve the results called for by oneor more objectives. May be simpler version of a project plan.Clickon the above link to see the example of a Business excellenceaction plan.
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Activity chart
An activity chart lays out the tasks of a project in sequential orderand shows when each must take place.
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Affinity diagram
A management tool used to organize information (usually gatheredduring brainstorming activity).
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Alignment
The actions taken to ensure a process or activity supports theorganizationsstrategy, goals and objectives.
Note: See link on strategic planning also.
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Analysis of variance (ANOVA)
A basic statistical technique for analyzing experimental data. Itsubdivides the total variation of a data set into meaningfulcomponent parts associated with specific sources of variation inorder to test a hypothesis on the parameters of the model or toestimate variance components. There are three models: fixed,
random and mixed.
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Appraisal cost
The cost involved in ensuring an organization is continually strivingto conform to customers quality requirements.
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Arrow diagram
A planning tool to diagram a sequence of events or activities(nodes) and the interconnectivity of such nodes. It is used forscheduling and especially for determining the critical path throughnodes.
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Assessment
A systematic process of collecting and analyzing data to determinethe current, historical or projected status of an organization.
Click on the above links for assessment of business excellence.
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Assignable cause
A name for the source of variation in a process that is not due tochance and therefore can be identified and eliminated. Also calledspecialcause.
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Audit
The inspection and examination of a process or quality system toensure compliance to requirements. An audit can apply to an entireorganization or may be specific to a function, process or productionstep.Click on the above link for audit of Quality ManagementSystem.
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B
Balridge Award
Block diagram
Benchmarking
Business Excellence
Big Q, Little Q
Black belt (BB)
Breakthrough improvement
Business process reengineering
Best Practice
Brainstorming
Problems are only opportunities in work clothes.Henry J. Kaiser
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Balridge Award
The award was established by the U.S Congress in 1987 to raiseawareness of quality management and recognize U.S.Companiesthat have successfully implemented quality management. The UScommerce departments national institute of standards & technologymanages the award & American society for quality (ASQ)
administers it.
The Balridge award model is given on the next slide.
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Balridge Award Model
Management
of process quality (140)
Human Resource
development and
management (150)
Strategic
quality planning (60)
Information and
analysis (75)
System
Quality
& operational
results(180)
Customer
focus andsatisfaction(300)
Leadership (95)
Note: Figures in bracket indicate number of points kept for evaluation ( Total points = 1000 )
Results
Driver
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Benchmarking
An improvement process in which a company measures itsperformance against that of best in class companies, determineshow those companies achieved their performance levels and usesthe information to improve its own performance. The subjects thatcan be benchmarked include strategies, operations, processes and
procedures.
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Business Excellence
Business excellence is a very dynamic term which aims at superiorlevels of performance in all areas of business viz- Business results,customer focus, leadership, people development, continuouslearning, innovation and improvement, management by facts andcorporate social responsibility.
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Best practice
A superior method or innovative practice that contributes to theimproved performance of an organization. Usually recognized asbest by peer organizations.
Note:
FICCI also has an exclusive CD-ROM on Best practices for global competitiveness.
For more details contact [email protected]
FICCI C i i Ed
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Big Q, Little Q
A term used to contrast the difference between managing forquality in all business processes and products (big Q) and managingfor quality in a limited capacity - traditionally only in factor productsand processes (little Q).
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Black belt (BB)
Full-time team leader responsible for implementing processimprovement projects - define, measure, analyze, improve andcontrol (DMAIC) or define, measure, analyze, design and verify(DMADV) - within the business to drive up customer satisfactionlevels and business productivity.
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Block diagram
A diagram that shows the operation, inter-relationships andinterdependencies of components in a system. Boxes or blocksrepresent the components; connecting lines between the blocksrepresent interfaces.
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Brainstorming
A technique to generate ideas on a subject, usually used forproblem solving.
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Breakthrough improvement
A dynamic, decisive movement to a new, higher level ofperformance.
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Business process reengineering (BPR)
The concentration on the improvement of business processes thatwill deliver outputs that will achieve results meeting the firmsobjectives, priorities and mission.
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CCause and effect diagram
Chain reaction
Change agent
Critical to Quality ( CTQ )
Charter
Checklist
Control Plan
Corrective action
Cost Management
Cost of poor quality
Critical processes
Creativity & Innovation
Culture change
Customer delight
CRM
Customer satisfaction
Common causes
Company culture
Competitive Edge
Conflict resolution
Corporate governance
Continuous improvement
Control chart
Customer supplier partnership
Cycle-time
Classification of defects
Customer Supplier model
Develop a healthy disrespect for the impossible.Gene Hoffman
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Cause and effect diagram
A tool for analyzing process dispersion. It is also referred to as theIshikawadiagram,because Kaoru Ishikawa developed it, and the fishbone diagram, because the complete diagram resembles afish skeleton. The diagram illustrates the main causes andsubcauses leading to an effect (symptom). The cause and effect
diagram is one of theseventools of quality.
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Chain reaction
A chain of events described by Edwards Deming -
Improve quality, decrease costs, improve productivity, increasemarket with better quality and lower price, stay in business, providejobs and provide more jobs.
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p g
Change agent
An individual from within or outside an organization who facilitateschange within the organization. May or may not be the initiator ofthe change effort.
Note:
FICCI also has an exclusive CD-ROM on .Managing Change in the new millennium.
For more details contact [email protected]
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p g
Critical to Quality ( CTQ )
CTQs (Critical to Quality) are the key measurable characteristics ofa product or process whose performance standards or specificationlimits must be met in order to satisfy the customer.
CTQs represent the product or service characteristics that are
defined by the customer (internal or external). A CTQ usually must be interpreted from a qualitative customer
statement to an actionable, quantitative business specification.
To put it in layman's terms, CTQs are what the customer expects ofa product... the spoken needs of the customer.
The customer may often express this in plain words, but it is up tous to convert them to measurable terms using tools such as QFD
etc.
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Charter
A written commitment approved by management stating the scopeof authority for an improvement project or team.
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Checklist
A tool used to ensure all important steps or actions in an operationhave been taken. Checklists contain items important or relevant toan issue or situation.
Click on the link above to see the example of a product designcheck list.
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Classification of defects
The listing of possible defects of a unit, classified according to theirseriousness. Commonly used classifications: class A, class B, classC, class D; or critical, major, minor and incidental; or critical, majorand minor. Definitions of these classifications require carefulpreparation and tailoring to the product(s) being sampled to enable
accurate assignment of a defect to the proper classification. Aseparate acceptance sampling plan is generally applied to eachclass of defects.
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Common causes
Causes of variation that are inherent in a process over time. Theyaffect every outcome of the process and everyone working in theprocess.
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Company culture
A system of values, beliefs and behaviors inherent in a company. Tooptimize business performance, top management must define andcreate the necessary culture.
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Competitive Edge
Edge over competition.
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Conflict resolution
The management of a conflict situation to arrive at a resolutionsatisfactory to all parties.
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Corporate governance
Corporate governance is about promoting corporate fairness,
transparency and accountability
Corporate governance is a topic recently conceived, as yet ill-defined, and consequently blurred at the edges.
corporate governance as a subject, as an objective, or as a regimeis to be followed for the good of shareholders, employees,
customers, bankers and indeed for the reputation and standing ofour nation and its economy
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Continuous improvement
A philosophy and attitude for analyzing capabilities and processesand improving them repeatedly to achieve the objective ofcustomer satisfaction.
Note:
FICCI also has an exclusive CD-ROM on Developing Continuous Improvement
as an organizational strategy.For more details contact [email protected]
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Control chart
A chart with upper and lower control limits on which values of somestatistical measure for series of samples or subgroups are plotted.The chart frequently shows a central line to help detect a trend ofplotted values toward either control limit.
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Control Plan (CP)
A document that describes the required characteristics for thequality of a product or service, including measures and controlmethods.
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Corrective action
The implementation of solutions resulting in the reduction orelimination of an identified problem.
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Cost Management
Activities that result in efficient management of overall costs in an
organization. The term should not be confused with cost cutting.
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Cost of poor quality (COPQ)
The costs associated with providing poor quality products or
services. There are four categories of costs:internal failure costs(costs associated with defects found before the customer receivesthe product or service). External failure costs (costs associated withdefects found after the customer receives the product or service),appraisal costs (costs incurred to determine the degree of
conformance to quality requirements) and prevention costs (costsincurred to keep failure and appraisal costs to a minimum).
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Creativity & Innovation
Processes that present serious potential dangers to human life,health and the environment or that risk the loss of every large sumsof money or customers.
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Critical processes
Processes that present serious potential dangers to human life,health and the environment or that risk the loss of every large sumsof money or customers.
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Culture change
A major shift in the attitudes, norms, sentiments, beliefs, values,operating principles and behavior of an organization.
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Customer delight
The result of delivering a product or service that exceeds customerexpectations.
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Customer relationship management (CRM)
A strategy used to learn more about customers needs &behaviors to develop stronger relationships with them. It bringstogether information about customers, sales, marketingeffectiveness, responsiveness & market trends. It helpsbusinesses use technology & human resources to gain insightinto behavior of customers & the value of those customers.
Note:
FICCI also has an exclusive CD-ROM on Customer Relationship Management.
For more details contact [email protected]
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Customer satisfaction (CS)
The result of delivering a product or service that meets customerrequirements.
Click on the above links to know more about maximizingcustomer satisfaction.
Note:
FICCI also has an exclusive CD-ROM on Strategies for becoming a Customer
Driven Organization.For more details contact [email protected]
FICCI - Competitive Edge
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Customer Supplier model
A model depicting inputs flowing into a work process that, inturn, add value and produce outputs delivered to a customer.Also called customer- supplier methodology.
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Customer supplier partnership
A long term relationship between a buyer & supplier characterizedby team work & mutual confidence. The supplier is considered anextension of buyers organization. The partnership is based onseveral commitments. The buyer provides long-term contracts &uses fewer suppliers. The supplier implements quality assuranceprocesses in order to minimize incoming inspection. The supplieralso helps the buyer to reduce costs & improve the products &process designs.
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Cycle-time
The elapsed time between the start and completion of a task or an
entire process. For example in order processing it can be the timebetween receipt of the order and final delivery / collection ofpayments from the customers.
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D
Deming prize
Defectives - prevention
Deming cycle
Delighter
Deming - Quality Guru
Deployment
Design of experiments
Diagnosis
Diagnostic journey
Dissatisfiers
Distribution (statistical)
DMAIC
DMADV
Driving forces
What is now proved was once only imagined.William Blake
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Defective
A defective unit; a unit of product that contains one or more
defects with respect to the quality characteristic(s) underconsideration.
Click on the above links for defective prevention tools & techniques.
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Delighter
A feature of a product or service that a customer does not expectto receive but that gives pleasure to the customer when received.
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Deming - Quality Guru
A prominent consultant, author and teacher on the subject ofquality.Deming published more than 200 works including, Quality,Productivity, Competitive positionandOut of crisis.
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Deming cycle
Plan-Do-Check-Act ( PDCA Cycle ):- A four step process for qualityimprovement. In the first step (PLAN), A plan to effectimprovement is developed. In the Second step (DO), the plan iscarried out. In the third step ( CHECK), the effects of the plan areobserved. In the last step (ACT) ,Action is taken to carry out theplan after making necessary corrections. This is repeated till theoriginal plan is achieved.
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Deming prize
Award given annually to organizations that, according to the awardguidelines, have successfully applied company wide quality controlbased on statistical quality control and will keep up with it in future.Although the award is named in honor of W. Edwards Deming, itscriteria are not specifically related to Demingsteachings. There arethree separate divisions for the award: the Deming applicationprize for individuals and the Deming prize for overseas companies.
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Deployment
Dispersion, dissemination, broadcasting or spreading of acommunication throughout an organization, downward andlaterally.
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Design of experiments (DOE)
A brand of applied statistics dealing with planning, conducting,analyzing and interpreting controlled tests to evaluate the factorsthat control the value of a parameter or group of parameters.
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Diagnosis
The activity of discovering the cause(s) of quality deficiencies; theprocess of investigating symptoms, collecting and analyzing dataand conducting experiments to test theories to determine the rootcause(s) of deficiencies.
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Diagnostic journey and remedial journey
A two-phase investigation used by teams to solve chronic qualityproblems. In the first phase, the diagnostic journey, the teamjourneys from the symptom of a chronic problem to its cause. Inthe second phase, the remedial journey, the team journeys fromthe cause to its remedy.
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Dissatisfiers
The features or functions a customer expects that either are notpresent or are present but adequate; also pertains to employeesexpectations.
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Distribution (statistical)
The amount of potential variation in the outputs of a process,typically expressed by its shape, average or standard deviation.
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DMADV
A data driven quality strategy for designing products and processes,it is an integral part of a Six Sigma quality initiative. It consists offive interconnected phases: define, measure, analyze, design andverify.
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DMAIC
A data driven quality strategy for improving processes and anintegral part of a Six Sigma quality initiative. DMAIC is an acronymfor define, measure, analyze, improve and control.
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Driving forces
Forces that tend to change a situation in desirable ways.
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E
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E
Excellence
ERP
Empowerment
Emotional intelligence
Efficient processes
Employee attitude
Eighty-twenty (80-20)
Eliminating non value adding
activities
Expectations
Experimental design
External Customer
Ethics
Employee motivation
Employee recognition
Employee retention
Employees - theory of needs
Employees - Quality culture
European Quality award
Innovation is the relentless pursuit of perfection.Toyota Motor Sales
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Excellence
There are no absolutes whereExcellence is concerned. Excellence
is a comparative concept, and always will be dynamic. It iscontinuously striving to achieve superior levels of performance.
Click on the above link to know more about business Excellence.
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ERP ( Enterprise Resource Planning )
ERPDescribes software systems designed to manage most or allaspects of a manufacturing or distribution enterprise (an expandedversion of MRP systems). ERP systems are usually broken down into
modules such as Financials, Sales, Purchasing, InventoryManagement, Manufacturing, MRP, DRP. The modules are designedto work seamlessly with the rest of the system and should provide aconsistent user interface between them. These systems usuallyhave extensive set-up options that allow you to customize theirfunctionality to your specific business needs.
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Emotional Intelligence
The ability to accurately interpret & appropriately manageemotional dynamics in oneself & others . . . in ways that enhancewell-being & success.
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Efficient process
A term describing a process that operates effectively whileconsuming the minimum amount of resources (such as labor, timeand money).
See link above for process improvement model
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Eighty-twenty (80-20)
A term referring to the Pareto principle, which was first defined byJ.M. Juran in 1950. The principle suggests most effect come fromrelatively few causes; that is 80% of the effects come from 20% ofthe possible causes.
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Eliminating non value adding activities
Activities that do not add any value to customers or business.
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Employee attitude
Attitude means a settled opinion or way of thinking and actingunder various circumstances.
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Employee motivation
Set of activities that stimulate the interest of employees andencourages them to give their best.
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Employee recognition
Activities that acknowledge and appreciate the good work of theemployees.
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Employee retention
The ability of retaining talent within the organization.
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Employees - theory of needs
This represents Maslowstheory of 5 human needs
1. Physiological
2.Safety
3. Social
4. Self-esteem
5. Actualization
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Employees - Quality culture
A common set of values, beliefs, attitudes, perceptions andaccepted behaviors shared by individuals within an organization
that produce quality results.
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European Quality award
In 1988, fourteen chief executives of leading European countriesformed the European foundation for quality management (EFQM)with the aim of enhancing the competitive position of Europeancountries in the world market. The key thrust for the EFQM isaround the area of recognition and it is this thrust which has lead tothe creation of European quality award.
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Empowerment
A condition whereby employees have the authority to makedecisions and take action in their work areas without prior approval.For example, an operator can stop a production process if he or shedetects a problem, or a customer service representative can sendout a replacement product if a customer calls with a problem.
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Ethics
The practice of applying a code of conduct based on moral
principles to day to day actions to balance what is fair to individualsor organizations and what is right for the society.
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Expectations
Customer perceptions about how an organizations products andservices will meet heir specific needs and requirements.
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Experimental design
A formal plan that details the specifics for conducting anexperiment, such as which responses, factors, levels, blocks,treatments and tools are to be used.
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External customer
A person or organization that receives a product, service or
information but is not the part of the organization supplying it.
See Customersatisfactionsection under C for more details
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F
Facilitator
Failure
Five S
Failure cost
Failure mode effects analysis
Fitness for use
FMECA
Feedback
Five whys
Flowchart
Focus group
Force field analysis
14 points of quality
Frequency distribution
Function
Funnel experiment
The best way to predict the future is to create it.Peter Drucker
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Facilitator
A specifically trained person who functions as a teacher, coach andmoderator for a group, team or organization.
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Failure
The inability of an item, product or service to perform requiredfunctions on demand due to one or more defects.
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Failure cost
The cost resulting from the occurrence of defects.
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Failure mode effects analysis (FMEA)
A procedure in which each potential failure mode in every subitemof an item is analyzed to determine its effect on other subitems andon the required function of the item.
FICCI - Competitive Edge
Failure mode effects and criticality analysis
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(FMECA)
A procedure that is performed after a failure mode effects analysisto classify each potential failure effect according to its severity andprobability of occurrence.
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Feedback
Communication from customers about how delivered products orservices compare with customer expectations.
Click on the above link for feedback forms for various industries.
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Fitness for use
A term used to indicate that a product or service fits the customersdefined purpose for that product or service.
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Five Ss
Five terms beginning with Sutilized to create a workplace suitedfor visual control and lean production. Seiri means to separate
needed tools, parts and instructions from unneeded materials and toremove the latter. Seitonmeans to neatly arrange and identify partsand tools for ease of use. Seiso means to conduct a cleanupcampaign. Seiketsu means to conduct seiri, seiton and seiso atfrequent, indeed daily, intervals to maintain a workplace in perfect
condition.Shitsuke means to form the habit of always following thefirst four Ss.
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Five whys
A technique for discovering the root causes of a problem andshowing the relationship of causes by repeatedly asking thequestion,Why?.
FICCI - Competitive Edge
Fl h
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Flowchart
A graphical representation of the steps in a process. Flowcharts aredrawn are to better understand processes. The flowchart is one oftheseventools of quality.
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F
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Focus group
A group, usually of 8 to 10 persons, that is invited to discuss anexisting or planned product, service or process.
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F fi ld l i
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Force field analysis
A technique for analyzing the forces that aid or hinder an
organization in reaching an objective. An arrow pointing to anobjective is drawn down the middle of a piece of paper. The factorsthat will aid the objectives achievement, called the driving forces,are listed on the left side of the arrow. The factors that will hinder itsachievement, called the restraining forces are listed on the right side
of the arrow.
FICCI - Competitive Edge
14 i t f lit W Ed d D i
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14 points of quality - W. Edwards Deming
1. Create consistency of purpose with a plan.
2. Adapt the new philosophy of quality.
3. Cease dependence on mass inspection.
4. End the practice of choosing suppliers solely on price.
5. Identify problems and work continuously to improve the system.
6. Adopt modern methods of training on the job
7. Change the focus from production numbers ( quantity ) to quality
Contd...
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14 i t f lit td
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14 points of quality contd
8. Drive out fear
9. Break down barriers between departments
10. Stop requesting improved quality without providing methods to
achieve it.
11. Eliminate work standards that prescribe numerical quotas
12. Remove barriers to pride of workmanship
13. Institute vigorous education and training
14. Create structure in top management that will emphasize thepreceding thirteen points every day.
FICCI - Competitive Edge
F di t ib ti ( t ti ti l)
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Frequency distribution (statistical)
A table that graphically presents a large volume of data so thecentral tendency (such as the average or mean) and distribution areclearly displayed.
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F ti
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Function
A group of related actions contributing to a larger action.
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F l i t
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Funnel experiment
An experiment that demonstrates the effects of tampering. Marbles
are dropped through a funnel in an attempt to hit a flat surfacedtarget below. The experiment shows that adjusting a stable processto compensate for an undesirable result or an extraordinarily goodresult will produce output that is worse than if the process had beenleft alone.
FICCI - Competitive Edge
G
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G
Gain sharing
Gantt chart
Gap analysis
Goal
Green belt (GB)
Group dynamic
Leaders need not be world-famous to be world-class.Chang, Labovitz and Rosansky
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Gain sharing
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Gain sharing
A reward system that shares the monetary results of productivitygains among owners and employees.
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Gantt chart
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Gantt chart
A type of activity bar chart used in process planning and control todisplay planned work and finished work in relation to time.
FICCI - Competitive Edge
Gap analysis
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Gap analysis
The comparison of a current condition to the desired state.
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Goal
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Goal
A broad statement describing a desired future condition orachievement without being specified about how much and when.
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Green belt (GB)
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Green belt (GB)
A business team leader responsible for managing projects and
implementing improvement in his or her organization. An employeeof an organization who has been trained on the improvementmethodology of Six Sigma and will lead a process improvement orquality improvement team as part of his or her full-time job.
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Group dynamic
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Group dynamic
The interaction (behavior) of individuals within a team meeting.
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H
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H
Hawthorne effect
HACCP
Hoshin planning
HALT
Histogram
HASA
HASS
House of quality
There is only one valid definition of business purpose:to create a customer.
Peter Drucker
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Hawthorne effect
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Hawthorne effect
An increase in worker productivity produced by the psychologicalstimulus of being singled out and made to feel important.
FICCI - Competitive Edge
Hazard analysis and critical control point ( HACCP)
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y p ( )
A quality management system for effectively and efficiently ensuringfarm to table food safety in the united states. HACCP regulations forvarious sectors are established by the United States Dept ofAgriculture and the Food and Drug Administration.
FICCI - Competitive Edge
Highly accelerated life test (HALT)
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Highly accelerated life test (HALT)
A process developed to uncover design defects and weaknesses in
electronic and mechanical assemblies using a vibration systemcombined with rapid high and low temperature changes. Thepurpose of HALT is to optimize product reliability by identifying thefunctional and destructive limits of a product. HALT addressesreliability issues at an early stage in product development.
FICCI - Competitive Edge
Highly accelerated stress audits (HASA)
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A technique in which a sample of parts is taken and subjected to
stresses similar to the levels and duration for HALT. In monitoringthe production process, the intent of HASA is to detect slight shifts inthe attributes of the product so corrective actions can be taken andimplemented before the performance of outgoing productapproaches the specifications.
Highly accelerated stress audits (HASA)
FICCI - Competitive Edge
Highly accelerated stress screening (HASS)
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A technique for production screening that rapidly exposes process or
production screening that rapidly exposes process or productionflaws in products. Its purpose is to expose a product to optimizedproduction screens without affecting product reliability. Unlike HALT,HASS uses nondestructive stresses of extreme temperatures andtemperature change rates with vibration.
Highly accelerated stress screening (HASS)
FICCI - Competitive Edge
Histogram
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Histogram
A graphic summary of variation in a set of data. The pictorial nature
of the histogram lets people see patterns that are difficult to detectin a simple table of numbers. The histogram is one of the seventools of quality.
FICCI - Competitive Edge
Hoshin planning
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Hoshin planning
Breakthrough planning. A Japanese strategic planning process in
which a company develops up to four vision statements that indicatewhere the company should be in the next five years. Company goalsand work plans are developed based on the vision statements.Periodic audits are then conducted to monitor progress. Hoshinplanning is also referred to policy deployment.
FICCI - Competitive Edge
House of quality
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House of quality
A product planning matrix, somewhat resembling a house, that is
developed during quality function deployment and shows therelationship of customer requirements to the means of achievingthese requirements.
FICCI - Competitive Edge
I
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I
Inspection
Improvement
In-control process
International marketing
Incremental improvement
Indicators
Inspection cost
Internal customer
Internal failure
ISO
ISO 14000
ISO 9000 series standards
I failed my way to success.
Thomas Edison
FICCI - Competitive Edge
Improvement
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Improvement
The positive effect of a process change effort.
FICCI - Competitive Edge
In-control process
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In control process
A process in which the statistical measure being evaluated is in a
state of statistical control; in other words, the variations among theobserved sampling results can be attributed to a constant system ofchance causes.
FICCI - Competitive Edge
Incremental improvement
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Incremental improvement
Improvements that are implemented on a continual basis.
FICCI - Competitive Edge
Indicators
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Indicators
Established measures used to determine how well an organization ismeeting its customers needs as well as other operational andfinancial performance expectations.
FICCI - Competitive Edge
International marketing
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te at o a a et g
There are some fundamental and vitally important questions whichcompanies seeking to expand internationally must address if they are
to be successful.
Click on the link above to see the questions.
FICCI - Competitive Edge
Inspection
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p
Measuring, examining, testing and gauging one or more
characteristics of a product or service and comparing the results withspecified requirements to determine whether conformity is achievedfor each characteristic.
FICCI - Competitive Edge
Inspection cost
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p
The cost associated with inspecting a product to ensure it meets theinternal or external customersneeds and requirements; an appraisalcost.
FICCI - Competitive Edge
Internal customer
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The recipient (person or department) within an organization of
another persons or departments output (product, service orinformation).
FICCI - Competitive Edge
Internal failure
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A product failure that occurs before the product is delivered to
external customers.
FICCI - Competitive Edge
International organization for standardisation,
known as ISO
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A network of national standards institutes from 140 countries
working in partnership with international organizations,governments, industry, business and consumer representatives todevelop and publish international standards. Acts as a bridgebetween public and private sectors.
FICCI - Competitive Edge
ISO 14000
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An environmental management standard related to what
organizations do that affects their physical surroundings. In theprocess of being made compatible with ISO 9000.
Note:
FICCI also has an exclusive CD-ROM on Environment Management Systems.
For more details contact [email protected]
FICCI - Competitive Edge
ISO 9000 series standards
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A set of international standards on quality management and qualityassurance developed to help companies effectively document thequality system elements to be implemented to maintain an efficient
quality system. The standards, initially published in 1987, are notspecific to any particular industry, product or service. The standardswere developed by the International Organization for Standardisation,known as ISO, a specialised international agency for standardisationcomposed of the national standards bodies of 91 countries. The
standards underwent major revision in the year 2000.
Note:
FICCI also has an exclusive CD-ROM on .Application of process approach for
implementing ISO 9000 : 2000.For more details contact [email protected]
FICCI - Competitive Edge
J
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Juran trilogy
Just-in-time
If I have seen further - it is standing on the shoulders of giants.
Isaac Newton
FICCI - Competitive Edge
Juran trilogy
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Three managerial processes identified by J.M Juran for use in
managing for quality: quality planning, quality control and qualityimprovement.
FICCI - Competitive Edge
Just-in-time (JIT) manufacturing
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An optimal material requirement planning system for a
manufacturing process in which there is little or no manufacturingmaterial inventory on hand at the manufacturing site and little or noincoming inspection.
FICCI - Competitive Edge
K
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Kaizen
Key process
Key results area
Kanban
If you have a horse and a wagon you have three things: a horse, a wagonand a horse-wagon.
Chinese proverb
FICCI - Competitive Edge
Kaizen
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A Japanese term that means gradual unending improvement by
doing little things better and setting and achieving increasinglyhigher standards. Masaaki Imai made the term famous in his book,Kaizen: The key to Japanscompetitive success.
FICCI - Competitive Edge
Kanban
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A Japanese term for one of the primary tools of a just-in-time
system. It maintains an orderly and efficient flow of materialsthrough out the entire manufacturing process. It is usually a printedcard that contains specific information such as part name,description & quantity.
FICCI - Competitive Edge
Key process
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A major system level process that supports the mission and satisfies
major consumer requirements.
FICCI - Competitive Edge
Key results area
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A major category of customer requirements that is critical for the
organizations success.
FICCI - Competitive Edge
L
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Leader
Leadership
Life cycle stages
Listening post
Lost customer analysis
Lean Manufacturing
An eye to the future, an ear to the ground.
General motors
FICCI - Competitive Edge
Leader
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An individual who is recognized by others as a person they willfollow.
FICCI - Competitive Edge
Leadership
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An essential part of a quality improvement effort. Organization
leaders must establish a vision, communicate that vision to those inthe organization and provide the tools and knowledge necessary toaccomplish the vision.
FICCI - Competitive Edge
Lean manufacturing
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Lean manufacturing is an initiative focussed on eliminating all waste
in a manufacturing process. Principles of lean include zero waitingtime, zero inventory, scheduling (internal customer pull instead ofpush system), batch to flow (cut batch sizes), line balancing &cutting actual process times.
FICCI - Competitive Edge
Life cycle stages
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Design, manufacturing, assembly, installation, operation and
shutdown of product.
FICCI - Competitive Edge
Listening post
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An individual who, by virtue of his or her potential for having contact
with customers, is designated to collect, document and transmitpertinent feedback to a central collection authority within theorganization.
FICCI - Competitive Edge
Lost customer analysis
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Analysis conducted to determine why a customer or a class of
customers, was lost.
FICCI - Competitive Edge
M
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Management review
Measures of Business Excellence
Master Black Belt
Mean time between failures
Mean
Measurement
Mission
Muda
Mistake proofing
The secret of success is constancy to purpose.
Benjamin Disraeli
FICCI - Competitive Edge
Management review
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A periodic meeting of management at which it reviews the statusand effectiveness of the organizations quality management system.
FICCI - Competitive Edge
Master Black Belt (MBB)
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Six Sigma or quality experts responsible for strategic
implementations within the business. The Master Black Belt isqualified to teach other Six Sigma facilitators the methodologies,tools and applications in all functions and levels of the company andis a resource for utilizing statistical process control within processes.
FICCI - Competitive Edge
Mean
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A measure of central tendency; the arithmetic average of allmeasurements in a data set.
FICCI - Competitive Edge
Mean time between failures (MTBF)
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The average time interval between failures for repairable product fora defined unit of measure; for example, operating hours, cycles andmiles.
FICCI - Competitive Edge
Measure
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The criteria, metric or means to which a comparison is made withoutput.
Click on the above link to see theMeasuresof business excellence
FICCI - Competitive Edge
Measurement
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The act or process of quantitatively comparing results withrequirements.
FICCI - Competitive Edge
Mistake proofing
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Mistake proofing is a scientific technique for improvement of
operating systems including materials, machines and methods withan aim of preventing problems due to human error.
FICCI - Competitive Edge
Mission
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An organizationspurpose.
FICCI - Competitive Edge
Muda
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Muda is a Japanese term for waste. Any activity that consumesresources but does not add any for the customers is termed asMuda.
FICCI - Competitive Edge
N
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New Product development
Next operation as customer
Norm (behavioral)
Niche Marketing
Nonconformity
Nonvalue added
NDT
Nonparametric tests
Normal distribution
Who has begun has half done.
HoraceFICCI - Competitive Edge
New Product Development
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Activities that must be performed in a systematic manner to ensure
the success of the product in the market.
FICCI - Competitive Edge
Next operation as customer
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The concept of internal customers in which every operation is both areceiver and a provider.
FICCI - Competitive Edge
Niche Marketing
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Marketing Activities that help organizations to obtain comfortablemarket share and gives them a clear edge over their competitors.
FICCI - Competitive Edge
Nonconformity
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The nonfulfillment of a specified requirement.
FICCI - Competitive Edge
Nondestructive testing and evaluation (NDT,
NDE)
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Testing and evaluation methods that do not damage or destroy theproduct being tested.
FICCI - Competitive Edge
Nonparametric tests
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Nonparametric tests are often used in place of their parametriccounterparts when certain assumptions about underlying populationare questionable. For example, when comparing two independentsamples, the Wilcoxon Mann-Whiney test does not assume thedifference between the samples is normally distributed, whereas itsparametric counterpart, the two-sample t-test, does. Nonparametrictests may be, and often are, more powerful in detecting populationdifferences when certain assumptions are not satisfied. All testsinvolving ranked data ( data that can be put in order) arenonparametric.
FICCI - Competitive Edge
Nonvalue added
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A term that describes a process step or function that is not required
for the direct achievement of process output. This step or function isidentified and examined for potential elimination.
FICCI - Competitive Edge
Norm (behavioral)
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Expectations of how a person or persons will behave in a given
situation based on established protocols, rules of conduct oraccepted social practices.
FICCI - Competitive Edge
Normal distribution (statistical)
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The charting of a data set in which most of the data points areconcentrated around the average (mean), thus forming a bell shapedcurve.
FICCI - Competitive Edge
O
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Objective
Organizational internal health assessment
Out-of-control process
Out of spec
Organizational change - role of CEO
Great works are performed not by strength, but by perseverance.
Samuel JohnsonFICCI - Competitive Edge
Objective
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A specific statement of a desired short-term condition orachievement; includes measurable end results to be accomplished byspecific teams or individuals within time limits.
FICCI - Competitive Edge
Organizational internal health assessment
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Click on the above link for assessment of internal health of yourorganization.
Note: It is extremely important to score very well on thisassessment in order to satisfy your external customers.
FICCI - Competitive Edge
Out-of-control process
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A process in which the statistical measure being evaluated is not in astate of statistical control. In other words, the variations among theobserved sampling results can be attributed to a constant system ofchance causes.
FICCI - Competitive Edge
Out of spec
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A term that indicates a unit does not meet a given requirement.
FICCI - Competitive Edge
Organizational Change - Role of a CEO
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Change management is the process, tools and techniques to managethe people-side of business change to achieve the required business
outcome.A CEO plays the most important role in any organizationschange management.
Click on the above link for CEOsrole in change management.
FICCI - Competitive Edge
P
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Pareto chart
Partnership/alliance
Prevention cost
PDCA
Performance standard
Preventative action
Policy
Precision
Probability (statistical)
Problem solving
Procedure
Process
Process capability
Process capability index
Process control
Process management
Process improvement
Process map
Process owner
Process quality
Product design - checklist
Product or service liability
Product warranty
Profound knowledge
Project management
Project team
Pull System
Process reengineering
Pokayoke
Every difficulty yields to the enterprising - G HolmanFICCI - Competitive Edge
Pareto chart
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A graphical tool for ranking causes from most significant to leastsignificant. It is based on the Pareto principle, which was first definedby J.M. Juran in 1950. The principle, named after 19th centuryeconomist Vilfredo Pareto, suggests most effects come from 20% ofthe possible causes. The Pareto chart is one of the seven tools ofquality.
FICCI - Competitive Edge
Partnership/alliance
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Both a strategy and a formal relationship between a supplier and acustomer that promotes cooperation for the benefit of both parties.
FICCI - Competitive Edge
PDCA
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Plan-Do-Check-Act ( PDCA Cycle ):- A four step process for qualityimprovement. In the first step (PLAN), A plan to effect improvement
is developed. In the Second step (DO), the plan is carried out. In thethird step ( CHECK), the effects of the plan are observed. In thelast step (ACT) ,Action is taken to carry out the plan after makingnecessary corrections. This is repeated till the original plan isachieved.
FICCI - Competitive Edge
Performance standard
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The metric against which a complete action is compared.
FICCI - Competitive Edge
Policy
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An overarching plan (direction) for achieving organizations goals.
FICCI - Competitive Edge
Pokayoke
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Poka-Yoke is a Japanese term which means Mistake proofing. A Poka-Yoke device or system is one that prevents incorrect parts from beingmade or assembled or easily identifies any flaw or error.
FICCI - Competitive Edge
Precision
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The aspect of measurement that addresses repeatedly or consistencywhen an identical item is measured several times.
FICCI - Competitive Edge
Preventative action
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Action taken to remove or improve a process to prevent potentialfuture occurrences of nonconformance.
FICCI - Competitive Edge
Prevention cost
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The cost incurred by actions taken to prevent a nonconformancefrom occurring.
FICCI - Competitive Edge
Probability (statistical)
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A term referring to the likelihood of occurrence of an event, action oritem.
FICCI - Competitive Edge
Problem solving
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The act of defining a problem; identifying, prioritizing and selectingalternatives for a solution; and implementing a solution.
FICCI - Competitive Edge
Procedure
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The steps in a process and how these steps are to be performed forthe process to fulfill customersrequirements.
FICCI - Competitive Edge
Process
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A set of interrelated work activities characterized by a set of specificinputs and value added tasks that make up a procedure for a set ofspecific outputs.
FICCI - Competitive Edge
Process capability
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A statistical measure of the inherent process variability for a givencharacteristic. The most widely accepted formula for processcapability is Six Sigma.
FICCI - Competitive Edge
Process capability index
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The value of the tolerance specified for the characteristic divided bythe process capability. The several types of process capability indexesinclude the widely used Cpkand Cp.
FICCI - Competitive Edge
Process control
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The methodology for keeping a process within boundaries;minimizing the variation of a process.
FICCI - Competitive Edge
Process improvement
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The application of the plan-do-Check-act (PDCA) philosophy toprocesses to produce positive improvement and better meet theneeds and expectations of customers.
FICCI - Competitive Edge
Process management
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The pertinent techniques and tools applied to a process to implementand improve process effectiveness, hold the gains and ensure processintegrity in fulfillment customer requirements.
FICCI - Competitive Edge
Process map
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A type of flowchart depicting the steps in a process, withidentification of responsibility of responsibility for each step and thekey measures.
FICCI - Competitive Edge
Process owner
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The person / Dept. who co-ordinates the various functions and workactivities at all levels of a process, has the authority or ability to makechanges in the process as required and manages the entire processcycle to ensure performance effectiveness.
FICCI - Competitive Edge
Process quality
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The value of percentage defective or of defects per hundred units inproduct from a given process. Note: The symbols p and c arecommonly used to represent the true process average in fractiondefective or defects per unit; and100pand100cthe true processaverage in percentage defective or in defects per hundred units.
FICCI - Competitive Edge
Process reengineering
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A strategy directed toward major rethinking and restructuring of aprocess; often referred to as thecleansheet of paperapproach.
FICCI - Competitive Edge
Product design checklist
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Check list to be taken into consideration by the designers whiledesigning products.
FICCI - Competitive Edge
Product or service liability
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The obligation of a company to make restitution for loss related topersonal injury, property damage or other harm caused by its productor service.
FICCI - Competitive Edge
Product warranty
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An organizationsstated policy that it will replace, repair or reimbursea buyer for a product in the event a product defect occurs undercertain conditions and within a stated period of time.
FICCI - Competitive Edge
Profound knowledge, system of
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