Lean and Agile Project Management by Stern

Lean and Agile Project Management by Stern is the book titled Lean and Agile Project Management: How to Make Any Project Better, Faster, and More Cost Effective authored by Terra Vanzant Stern, PhD and published by CRC Press, Taylor & Francis Group, Boca Raton, FL in 2017.

The copyright belongs to Terra Vanzant Stern.

• 4 Ms. Four-word categories used to provoke thought on an Ishikawa diagram (cause and effect diagram): material, method, machine, and man.
• 5 Whys. The practice of asking why five times when presented with a problem to try to identify potential root causes.
• 5S. A process and method for creating and maintaining an organized, clean, safe, and high-performing workplace. The steps are sort, set, shine, standardize, and sustain.
• A3 Report. A Toyota-developed standard report showing a problem, analysis, and corrective action plan on a single piece of paper, usually A3 size.
• A-B Control. A method used to regulate working relationships between a pair of operations such that overproduction is minimized. Machine A cannot feed machine B until it is empty or waiting for work.
• ABC Production Analysis. Volume-based groupings used to segment part numbers in order to define the inventory policy that they fall within.
• Abscissa. The horizontal axis of a graph.
• Acceptance Criteria. Specific criteria identified by the customer for each functional requirement. The acceptance criteria are written in simple terms and from the perspective of the customer.
• Acceptance Region. The region of values for which the null hypothesis is accepted.
• Acceptance Testing. Acceptance testing is a validation activity conducted to determine whether or not a system satisfies its acceptance criteria. It is the last phase of the software testing process.
• Affinity Diagram. Organizes brainstorming ideas into categories or themes. Useful when there are large amounts of information collected during a brainstorming session. It is also called the KJ method, after Kawakita Jiro (a Japanese anthropologist), who first developed the idea.
• Agile. A conceptual framework for undertaking software projects. Agile methods are a family of development processes, not a single approach to software development.
• Alpha Risk. The probability of accepting the alternate hypothesis when, in reality, the null hypothesis is true.
• Alternative Hypothesis. A tentative explanation that indicates that an event does not follow a chance distribution—a contrast to the null hypothesis.
• Andon. The Japanese word for a signal referring to a visual system that provides an indicator to supervision when abnormalities occur within processes.
• ANOVA. Analysis of variance. This is a statistical test done by comparing the variances around the means of the condition being compared. In the simplest form, ANOVA provides a statistical test of whether the means of several groups are all equal.
• ANOVA Gauge R&R. Measures the amount of variability induced in measure by the measurement system itself and compares it to the total variability observed to determine the viability of the measurement system.
• Assemble to Order. An environment in which a product or service can be assembled or provided upon receipt of a customer's order. The product will usually consist of a number of modules that are assembled to the highest level possible and stored such that, when the order arrives, it can be assembled quickly and to the customer's specifications.
• Assignable Cause. A source of variation that is nonrandom. A change in the source ("vital few" variables) will produce a significant change of some magnitude in the response (dependent variable), for example, a correlation exists. The change may be due to an intermittent in-phase effect or a constant cause system that may or may not be highly predictable. An assignable cause is often signaled by an excessive number of data points outside limits. An unnatural source of variation. Most often economical to eliminate.
• Assignable Variation. Variation in data that can be attributed to specific causes.
• Assumption. There may be external circumstances or events that must occur for the project to be successful (or that should happen to increase the chances of success). If it is believed that the probability of the event occurring is acceptable, it could be listed it as an assumption. An assumption has a probability between 0% and 100%. That is, it is not impossible that the event will occur (0%) and it is not a fact (100%). It is somewhere in between. Assumptions are important because they set the context in which the entire remainder of the project is defined. If an assumption doesn't come through, the estimate and the rest of the project definition may no longer be valid.
• Attribute. A characteristic that may take on only one value.
• Attribute Data. Numerical information at the nominal level; subdivision is not conceptually meaningful—data that represents the frequency of occurrence within some discrete category, for example, 42 solder shorts.
• Automatic Line Stop. Ensuring that processes production will stop whenever a defect or problem occurs.
• Autonomation. A term developed by Taiichi Ohno to describe "automation with human touch." Autonomated machines will stop when abnormalities occur so that they will not create large amounts of scrap and do not need an operator to watch the machine.
• Average. Also called the mean, it is the arithmetic average of all the sample values. It is calculated by adding all of the sample values together and dividing by the number of elements (n) in the sample.
• Background Variables. Variables that are of no experimental interest and are not held constant. The effects are often assumed insignificant or negligible or they are randomized to ensure that contamination of the primary response does not occur.
• Balance Chart. A bar chart or histogram that illustrates work content per operator. Can be used to balance work for operators or machines in order to achieve improvements in flow.
• Balanced Scorecard. A performance management approach that focuses on customer perspective, internal business processes, and learning and growth and financials. It was originated by Dr. Robert Kaplan (Harvard Business School) and Dr. David Norton as a performance measurement framework that added strategic nonfinancial performance measures to traditional financial metrics to give managers and executives a more "balanced" view of organizational performance.
• Batch and Queue. Typical mass production method such that a part going through a system will be produced in large batches to maximize "efficiency" and then sit in a queue waiting for the next operation.
• Behavior-Driven Development. Behavior-driven development (or BDD) is an agile software development technique that encourages collaboration between developers, QA, and nontechnical or business participants in a software project. BDD focuses on obtaining a clear understanding of desired software behavior through discussion with stakeholders. It extends TDD by writing test cases in a natural language that nonprogrammers can read.
• Benchmarking. A standard used to compare performance against best-inclass companies. It then uses the information gathered to improve its own performance. Subjects that can be benchmarked include strategies, products, programs, services, operations, processes, and procedures.
• Beta Risk. The probability of accepting the null hypothesis when, in reality, the alternate hypothesis is true.
• Blocking Variables. A relatively homogenous set of conditions within which different conditions of the primary variables are compared. Used to ensure that background variables do not contaminate the evaluation of a primary variable.
• Bottleneck. A bottleneck is a sort of congestion in a system that occurs when workload arrives at a given point more quickly than that point can handle it. It is metaphorically derived from the flowing of water through a narrow-mouthed bottle in which the flow of water is constrained by the size of its neck.
• Breakthrough Improvement. A rate of improvement at or near 70% over baseline performance of the as-is process characteristics.
• Brownfield. A brownfield site is an existing facility that is usually managed in line with mass production methods.
• Bugs. A software bug is a problem causing a program to crash or produce invalid output. It is caused by insufficient or erroneous logic and can be an error, mistake, defect, or fault.
• Build to Order. A production environment in which a product or service can be made and assembled after receipt of a customer's order.
• Burn Down Chart. A burn down chart is a visual tool for measuring and displaying progress. Visually, a burn down chart is simply a line chart representing remaining work over time. Burn down charts are used to measure the progress of an agile project at both an iteration and project level.
• Capability. A measurement index that expresses the capability of the process by using a percentage.
• Capital Linearity. A philosophy linked to capital expenditure on machinery such that a small amount of additional capacity can be added by using a number of smaller machines rather than one big and very expensive machine.
• Causalty. The principle that every change implies the operation of a cause.
• Causative. Effective as a cause.
• Cause. That which produces an effect or brings about change.
• Cause and Effect Diagram. This is also called a fishbone diagram. This is a graph that places the issue being discussed in the head of the fish. The bones of the fish are categories of problems that could be a problem. The smaller bones are the possible root causes.
• Cell. A cell is a group of people, machines, materials, and methods arranged so that processing steps are located adjacent to each other and in sequential order. This allows parts to be processed one at a time or, in some cases, in a constant small batch that is maintained through the process sequence. The purpose of a cell is to achieve and maintain an efficient, continuous flow of work.
• Center Line. The line on a statistical process control chart that represents the characteristic's central tendency.
• Central Tendency. Data clustered around the middle. Mean, mode, and median are all examples of central tendency; numerical average, for example, mean, median, and mode; center line on a statistical process.
• Chaku-Chaku. One-piece flow ideal whereby machines automatically unload parts so that an operator can move a part from one machine to the next without stopping to unload parts.
• Champion. A person who supports the successful completion of the project.
• Characteristic. A process input or output that can be measured and monitored.
• Chief Engineer. The Toyota term used to describe the person who is totally responsible for the successful development of a product line.
• Classification. Differentiation of variables.
• Client/Customer. The person or group that is the direct beneficiary of a project or service is the client/customer. These are the people for whom the project is being undertaken (indirect beneficiaries are stakeholders). In many organizations, internal beneficiaries are called "clients" and external beneficiaries are called "customers," but this is not a hard and fast rule.
• Common Cause. See Random Cause.
• Common Causes of Variation. Sources of variability in a process that are truly random. These are generally inherent in the process itself and can be managed. This type of variation is usual, historical, and a quantifiable variation in a system.
• Complexity. The level of difficulty to build, solve, or understand something based on the number of inputs, interactions, and uncertainty involved.
• Confidence Level. The probability that a random variable x lies within a defined interval.
• Confidence Limits. The two values that define the confidence level.
• Confounding. Allowing two or more variables to vary together so that it is impossible to separate their unique effects.
• Constraints. Constraints are limitations that are outside the control of the project team and need to be managed around. They are not necessarily problems. However, the project manager should be aware of constraints because they represent limitations that the project must execute within. Date constraints, for instance, imply that certain events (perhaps the end of the project) must occur by certain dates. Resources are almost always a constraint because they are not available in an unlimited supply.
• Consumer Risk. The probability of accepting a lot when, in fact, the lot should have been rejected (see Beta Risk).
• Continuous Data. A set of observations usually associated with physical measurement that can take on any mathematical value within specified parameters.
• Continuous Flow. Each process, whether in an office or plant setting, makes or completes only the one piece that the next process needs; the batch size is one. Single-piece flow, or one-piece flow, is the opposite of a batch-and-queue process.
• Continuous Random Variable. A random variable that can assume any value continuously in some specified variable.
• Control Chart. The most powerful tool of statistical process control. It consists of a run chart, together with statistically determined upper and lower control limits and a centerline.
• Control Limits. Upper and lower bounds in a control chart that are determined by the process itself. They can be used to detect special or common causes of variation.
• Control Specifications. Specifications called for by the product being manufactured.
• Cost of Poor Quality (COPQ). The costs associated with any activity that is not doing the right thing right the first time.
• Critical Path. The series of consecutive activities that represent the longest time path through the process. The critical path is the sequence of activities that must be completed on schedule for the entire project to be completed on schedule. It is the longest duration path through the work plan. If an activity on the critical path is delayed by one day, the entire project will be delayed by one day (unless another activity on the critical path can be accelerated by one day).
• Critical to Quality (CTQ). Any activity or thought related to the successful outcomes of the project.
• Cross Dock. A facility that gathers and recombines a variety of inbound materials and parts from multiple suppliers to forward on to multiple customers.
• Cutoff Point. The point that partitions the acceptance region from the reject region.
• Cycle Efficiency (CE). CE is a measure of the relative efficiency in a production system. It represents the percentage of value added time of a product through the critical path versus the total cycle time (TCT).
• Cycle Time. The time a person needs to complete an assigned task or activity before starting again.
• Cycle Time Interval. The frequency that a particular item is made during a set period of time (usually days).
• Daily Standup/Scrum. A daily standup is a whole team meeting that happens at the same time every day and usually lasts 15 minutes or less. The meeting is designed to allow the entire team to synchronize with each other and to understand the flow and challenges of the development process. Each team member should provide the following information]]. What did I do yesterday, what am I planning to do today, and what impediments do I currently have?
• Data. Factual information used as a basis for reasoning, discussion, or calculation; often refers to quantitative information.
• Defect. An output of a process that does not meet a defined specification, requirement, or desire such as time, length, color, finish, quantity, temperature, etc.
• Defective. A unit of product or service that contains at least one defect.
• Degrees of Freedom. The number of independent measurements available for estimating a population parameter.
• Deliverable. A deliverable is any tangible outcome that is produced by the project. All projects create deliverables. These can be documents, plans, computer systems, buildings, aircraft, etc. Internal deliverables are produced as a consequence of executing the project and are usually needed only by the project team. External deliverables are those that are created for clients and stakeholders. The project may create one or many deliverables.
• Demand. The usage of an item over a period of time. This also includes an understanding of the customer requirements for quality, lead time, and price.
• Density Function. The function that yields the probability that a particular random variable takes on any one of its possible values.
• Dependent Variable. A response variable, for example, y is the dependent or "response" variable where Y = f (XI … Xn) variable.
• Design for Six Sigma (DFSS). The use of six sigma thinking, tools, and methods applied to the design of products. Any Six Sigma model for managing a project that is not DMAIC is generally considered a DFSS.
• Design of Experiments (DOE). An efficient, structured, and proven approach to interrogating a process or system for the purpose of maximizing the gain in process or system knowledge.
• Discrete Random Variable. A random variable that can assume values only from a definite number of discrete variables.
• Distributions. The tendency of large numbers of observations to group themselves around some central value with a certain amount of variation or "scatter" on either side.
• Done. Also referred to as "Done Done," this term is used to describe all the various tasks that need to happen before a story is considered potentially releasable.
• DMAIC. This acronym stands for Define, Measure, Analyze, Improve, and Control. It is the heart of the Six Sigma process and refers to a datadriven quality strategy for improving processes. It is an integral part of any company's Six Sigma quality initiatives.
• DPMO. Defects per million opportunities. The total number of defects observed divided by the total number of opportunities, expressed in parts per million.
• DPU. Defects per unit. The total number of defects detected in some number of units divided by the total number of those units.
• Effect. That which was produced by a cause.
• Engineer to Order. Products whose customer's specifications are unique for each order; therefore, each product is engineered from scratch upon receipt of an order.
• Epic. A very large user story that is eventually broken down into smaller stories.
• Estimation. The process of agreeing on a size measurement for the stories as well as the tasks required to implement those stories in a product backlog.
• Exits. The amount of work completed over a given amount of time measured in dollars or units.
• Experiment. A test under defined conditions to determine an unknown effect, to illustrate or verify a known law, test or establish a hypothesis.
• Experimental Error. Variation in observation made under identical test conditions, also called residual error. The amount of variation that cannot be the variables included in the experiment.
• Factors. Independent variables.
• Failure Mode and Effects Analysis (FMEA). A procedure used to identify, assess, and mitigate risks associated with potential product, system, or process failure modes.
• Feature Creep. Feature creep occurs when software becomes complicated and difficult to use as a result of too many features.
• FIFO. A strategically sized inventory that keeps the sequence of the production uniform throughout the value stream, maintaining flow.
• Finish to Order. An environment such that products are built to as high a level as is possible and then configured to customers' requirements upon receipt of order.
• Fishbone Diagram. See cause and effect diagram.
• Fixed Effects Model. Experimental treatments are specifically selected by the researcher. Conclusion only applies to the factor levels considered in the analysis. Inferences are restricted to the experimental levels.
• Fixed-Position Stop System. A problem addressing method on continuously moving production lines such that if a problem is identified and not resolved before a fixed point, the production line will stop.
• Flowchart. A graphic model of the flow of activities, material, and/or information that occurs during a process.
• Fluctuations. Variances in data that are caused by a large number of minute variations or differences.
• Frequency Distribution. The pattern or shape formed by the group of measurements in a distribution.
• Functional Manager. The functional manager is the person reported to within the functional organization. Typically, this is the person who does performance review. The project manager may also be a functional manager, but he or she does not have to be. If the project manager is different from the functional manager, the organization is probably utilizing matrix management.
• Gage R&R. This is used in measurement systems analysis (MSA). A quantitative assessment of how much variation (repeatability and reproducibility) is in a measurement system compared to the total variation of the process or system.
• Gantt Chart. A Gantt chart is a bar chart that depicts activities as blocks over time. The beginning and end of the block correspond to the beginning and end date of the activity.
• Gemba. The Japanese term used to describe the "actual place" where value is added on the shop floor.
• Greenfield. A new production facility not restricted by practices of the past; therefore, it has a culture of adapting to change without resistance.
• Heijunka. Leveling the production by product and/or quantity over a fixed time period.
• High-Level Value Stream Map. A visual representation of the aggregated material and information flows within a company or business unit.
• Histogram. A bar chart that depicts the frequencies (by the height of the plotted bars) of numerical or measurement categories.
• Homogeneity of Variance. The variances of the groups being contrasted are equal (as defined by statistical test of significant differences).
• Hoshin. The Japanese word for planning; it is used throughout operational, financial, strategic, and project-based scenarios.
• Independent Variable. A controlled variable; a variable whose value is
• [[independent of the value of another variable.
• Input. A resource consumed, utilized, or added to a process or system. Synonymous with X, characteristic, and input variable.
• Inspection. Mass production would use inspectors outside of a process. Lean producers assign the responsibility of quality to the areas in which the processes are performed. Inspections are performed within the areas that own the assembly process.
• Instability. Unnaturally large fluctuations in a pattern.
• Interaction. The combined effect of two factors observed over and above the singular effect of each factor against the level of the other factor. A significant interaction indicates that the effect of each factor on the response changes depend on the value of the other factor.
• Interval. Numeric categories with equal units of measure but no absolute zero point, that is, quality scale or index.
• Inventory Turns. A measure to quantify the pace at which inventory rotates throughout a company. Inventory turns = annual cost of goods sold/average value of inventory during year.
• Issue. An issue is a major problem that will impede the progress of the project and that can't be resolved by the project manager and project team without outside help. Project managers should proactively deal with issues through a defined issues management process.
• Jidoka. Quality built into processes such that if a process is not capable of creating the required output then it will not operate until it can.
• Jishuken. A Japanese word used to describe a "hands-on learning workshop."
• JIT. Stands for "just in time." This means producing or conveying only the items that are needed by the next process when they are needed and in the quantity needed. This process can even be used between facilities or companies.
• Kaikaku. Radical improvement designed to quickly eliminate and/or add value to a value stream. Also described as breakthrough kaizen.
• Kaizen. An incremental change for the better. The organized use of common sense to improve cost, quality, delivery, safety, and responsiveness to customer needs.
• Kaizen Event. A rapid improvement event.
• Kanban. Kanban, pronounced /ˈkɑnˈbɑn/, is a method for developing products with an emphasis on just-in-time delivery and the optimization of flow of work on the team. It emphasizes that developers pull work from a queue, and the process, from definition of a task to its delivery to the customer, is displayed for participants to see.
• Kanban Post. A storage container for kanban cards pulling deliveries.
• Labor Linearity. A manning philosophy such that as demand increases or reduces, manpower is added one at a time as such manpower requirements are linear to production volume.
• Lead Time. The total time from the beginning of the supply chain to the time something needs to ship. The sum of the VA/NVA time for a product to move through the entire value stream.
• Lean. Lean software development is a translation of Lean manufacturing and Lean IT principles and practices to the software development domain. Adapted from the Toyota production system and is a set of techniques and principles for delivering more values with the same or fewer resources by eliminating waste across organizations and business processes.
• Lean Transactional. The application of Lean to business processes, such as paperwork flow through an office in accounts or marketing.
• Level Selling. The eliminating of sales spikes generated by end-of-month sales targets at dealers and so forth. This allows for improved flow of demand from the customer and improvements in anticipated demand.
• Life Cycle. Life Cycle refers to the process used to build the deliverables produced by the project. There are many models for a project life cycle. For software development, the entire life cycle might consist of planning, analysis, design, construct/test, implementation, and support. This is an example of a "waterfall" life cycle. Other life cycles include iterative development, package implementation, and research and development. Each of these life cycle models represents an approach to building the deliverables on the project.
• Line Charts. Charts used to track the performance without relationship to process capability of control limits.
• Linear Regression. Analyzes the relationship between two variables, X and Y.
• Long-Term Variation. The observed variation of an input or output characteristic that has had the opportunity to be observed over time.
• Lower Control Limit (LCL). Used in control charts to show the lower limit. Typically, three standard deviations below the central tendency.
• Machine Cycle Time. The amount of time the unit spends in the operational cycle of a machine.
• Mean. The statistical measure on a sample that is used as an estimate of the mean of the population from which the sample was drawn. Numerically, it equals the sum of scores divided by the number of samples.
• Measurement Accuracy. For a repeated measurement, it is a comparison of the average of the measurements compared to some known standard.
• Measurement Precision. For a repeated measurement, it is the amount of variation that exists in the measured values.
• Median. The middle value of a data set when the values are arranged in either ascending or descending order.
• Metric. A measure that is considered to be a key indicator of performance. It should be linked to goals or objectives and carefully monitored.
• Milestone. A milestone is a scheduling event that signifies the completion of a major deliverable or a set of related deliverables. A milestone, by definition, has duration of zero and no effort. There is no work associated with a milestone. It is a flag in the work plan to signify that some other work has been completed. Usually, a milestone is used as a project checkpoint to validate how the project is progressing. In many cases, there is a decision, such as validating that the project is ready to proceed further, that needs to be made at a milestone.
• Milk Run. Reducing transport costs and batch sizes by performing multiple pick up and drops at multiple suppliers using one truck.
• Mixed Effects Model. Contain elements of both the fixed and random effects models.
• Muda. The Japanese word for waste or non–value added activity.
• Mura. The Japanese word used to describe variation or fluctuation.
• Muri. The Japanese word used to describe overburdening or strain/stress.
• Nemawashi. A Japanese expression used to describe the practice of obtaining support and buy-in for change by presenting the idea and then planning with upper management and stakeholders. Directly translated, it means "preparing the ground for planting."
• Nominal. Unordered categories that indicate membership or nonmembership with no implication of quantity, that is, assembly area number one, part numbers, etc.
• Nonconforming Unit. A unit that does not conform to one more specifications, standards, and/or requirements.
• Nonconformity. A condition within a unit that does not conform to some specific specification, standard, and/or requirement, often referred to as a defect. Any given nonconforming unit can have the potential for more than one nonconformity.
• Non–Value Added (NVA). Any activity performed in producing a product or delivering a service that does not add value.
• Normal Distribution. The distribution characterized by the smooth, bellshaped curve.
• Null Hypothesis. A tentative explanation that indicates that a chance distribution is operating.
• Obeya. Translated as "big room." This is the expression used by the Japanese to describe the powerful project room concept also known as a "war room."
• Objective. An objective is a concrete statement that describes what the project is trying to achieve. The objective should be written at a low level, so that it can be evaluated at the conclusion of a project to
• [[see whether it was achieved. Project success is determined based on whether the project objectives were achieved. A technique for writing an objective is to make sure it is specific, measurable, attainable/achievable, realistic, and time bound (SMART).
• One Piece Flow. Making and moving only one piece or part at a time. See Continuous Flow.
• One-Sided Alternative. The value of a parameter that has an upper bound and a lower bound, but not both.
• Operator Cycle Time. The time it takes an operator to go through all of his or her work elements before repeating them.
• Order Interval. Represents the frequency (days) that a part is ordered.
• Ordinal. Ordered categories (ranking) with no information about distance between each category, that is, rank ordering of several measurements of an output parameter.
• Ordinate. The vertical axis of a graph.
• Overall Equipment Effectiveness (OEE). A total productive maintenance (TPM) measure of how effectively equipment is being used. OEE = availability rate × performance rate × quality rate.
• Overproduction. The process of producing more, sooner, or faster than is required by the next process or customer.
• P Charts. Charts used to plot percent of defectives in a sample.
• Pacemaker. The only point in the production process that is scheduled, and therefore, dictates the pace of production for a whole system of processes.
• Pacesetter. The point in the process that limits the output of the total process.
• Pair Programming. An agile software development technique in which two programmers work together at one workstation. One types in code while the other reviews each line of code as it is typed in. The person
• [[typing is called the driver. The person reviewing the code is called the observer (or navigator). The two programmers switch roles frequently.
• Parameter. A constant defining a particular property of the density function of a variable.
• Pareto Diagram. A chart that ranks, or places in order, common occurrences.
• Perturbation. A nonrandom disturbance.
• Pitch. The amount of time required by a production area to make one container of product. Takt time × pack-out qty = pitch.
• Plan for Every Part (PFEP). A comprehensive plan for each part consumed within a production process. This would take the form of a spreadsheet or simple table and contain such data as pack-out quantity, location of use and storage, order frequency, and so on. This provides one accurate source of information relating to parts.
• Plan, Do, Check, Act (PDCA). An improvement cycle introduced to the Japanese in the 1950s by W. Edwards Deming. Based upon proposing then implementing an improvement, then measuring the results and acting accordingly.
• Planning Poker. Also called scrum poker, is a consensus-based technique for estimating, mostly used to estimate effort or relative size of tasks in software development.
• Poka Yoke. Mistake-proof device or procedure designed to prevent a defect from occurring throughout the system or process. Error proofing is a manufacturing technique of preventing errors by designing the manufacturing process, equipment, and tools so that an operation literally cannot be performed incorrectly. Poka Yoke is the Japanese phrase for "do it right the first time."
• Population. A group of similar items from which a sample is drawn. Often referred to as the universe.
• Power of an Experiment. The probability of rejecting the null hypothesis when it is false and accepting the alternative hypothesis when it is true.
• Prevention. The practice of eliminating unwanted variations of priori (before the fact), for example, predicting a future condition from a control chart and when applying corrective action before the predicted event transpires.
• Primary Control Variables. The major independent variables in the experiment.
• Probability of an Event. The number of successful events divided by the total numbers of trials.
• Probability. The chance of something happening in percent or number of occurrences over a large number of trials.
• Problem. A deviation from a specified standard.
• Problem Solving. A process of solving problems, the isolation and control of those conditions that generate or facilitate the creation of undesirable symptoms.
• Process. A particular method of doing something, generally involving a number of steps or operations.
• Process Average. The central tendency of a given process characteristic across a given amount of time or a specific point in time.
• Process Control. See statistical process control.
• Process Control Chart. Any of a number of various types of graphs upon which data are plotted against specific control limits.
• Process Owner. They have the responsibility for process performance and resources. They provide support, resources, and functional expertise to Six Sigma projects. They are accountable for implementing developed Six Sigma solutions into their process.
• Process Spread. The range of values that a given process characteristic displays; this particular term most often applies to the range but may also encompass the variance. The spread may be based on a set of data collected at a specific point in time or may reflect the variability across a given amount of time.
• Producers Risk. Probability of rejecting a lot when, in fact, the lot should have been accepted. See Alpha Risk.
• Product Backlog. Acts as a repository for requirements targeted for release at some point. These are typically high-level requirements with highlevel estimates provided by the product stakeholders. The requirements are listed on the backlog in priority order and maintained by the product owner.
• Product Owner. A term commonly used in Scrum (Agile) denoting one of the project's key stakeholders. The product owner's responsibility includes envisioning what should be built or created and conveying that to the team.
• Production Kanban. A signal that specifies the type and quantity of product that an upstream process must produce.
• Program. A program is the umbrella structure established to manage a series of related projects. The program does not produce any project deliverables. The project teams produce them all. The purpose of the program is to provide overall direction and guidance, to make sure the related projects are communicating effectively, to provide a central point of contact and focus for the client and the project teams, and to determine how individual projects should be defined to ensure that all the work gets completed successfully.
• Program Manager. A program manager is the person with the authority to manage a program. (Note that this is a role. The program manager may also be responsible for one or more of the projects within the program.) The program manager leads the overall planning and management of the program. All project managers within the program report to the program manager.
• Project. A project is a temporary structure to organize and manage work and ultimately to build a specific defined deliverable or set of deliverables. By definition, all projects are unique, which is one reason it is difficult to compare different projects to one another. A problem usually calling for planned action.
• Project Definition (Charter). Before starting a project, it is important to know the overall objectives of the project as well as the scope, deliverables, risks, assumptions, project organization chart, etc. The project definition (or charter) is the document that holds this relevant information. The project manager is responsible for creating the project definition. The document should be approved by the sponsor to signify that the project manager and the sponsor are in agreement on these important aspects of the project.
• Project Manager. The project manager is the person with the authority to manage a project. The project manager is 100% responsible for the processes used to manage the project. He or she also has people management responsibilities for team members although this is shared with the team member's functional manager. The processes used to manage the project include defining the work, building the work plan and budget, managing the work plan and budget, scope management, issues management, risk management, etc.
• Project Phase. A phase is a major logical grouping of work on a project. It also represents the completion of a major deliverable or set of related deliverables. On an IT development project, logical phases might be planning, analysis, design, constructing (including testing), and implementation.
• Project Team. The project team consists of the full-time and part-time resources assigned to work on the deliverables of the project. They are responsible for understanding the work to be completed; completing assigned work within the budget, timeline, and quality expectations; informing the project manager of issues, scope changes, and risk and quality concerns; and proactively communicating status and managing expectations.
• Pull. Material flow triggered by actual customer need rather than a scheduled production forecast. Downstream processes signal to upstream processes exactly what is required and in what quantity.
• Push. The production of goods regardless of demands or downstream need, usually in large batches to ensure efficiency.
• Quality Function Deployment (QFD). A systematic process used to integrate customer requirements into every aspect of the design and delivery of products and services.
• R Charts. Plot of the difference between the highest and lowest in a sample range control chart.
• Random. Selecting a sample so each item in the population has an equal chance of being selected, lack of predictability.
• Random Cause. A source of variation that is random; a change in the source ("trivial many"), for example, a correlation does not exist, any individual source of variation results in a small amount of variation in the response, cannot be economically eliminated from a process, an inherent natural source of variations.
• Random Effects Model. Experimental treatments are a random sample from a larger population of treatments. Conclusion can be extended to the population. Interferences are not restricted to the experimental levels.
• Random Sample. One or more samples randomly selected from the universe (population).
• Random Variable. A variable that can assume any value of a set of possible values.
• Random Variations. Variations in data that result from causes that cannot be pinpointed or controlled.
• Randomness. A condition in which any individual event in a set of events has the same mathematical probability of occurrence as all other events within the specified set, that is, individual events are not predictable even though they may collectively belong to definable distribution.
• Range. The difference between the highest and lowest in a set of values or "subgroup."
• Ranks. Values assigned to items in a sample to determine their relative occurrence in a population.
• Ratio. A numeric scale that has an absolute zero point and equal units of measure through, that is, measurements of an output parameter, for example, amps.
• Regression Analysis. Includes any techniques for modeling and analyzing several variables. Linear regression was the first type of regression analysis to be studied rigorously and to be used extensively in practical applications.
• Reject Region. The region of values in which the alternative hypothesis is accepted.
• Repeatability (of a Measurement). The extent to which repeated measurements of a particular object with a particular instrument produce the same value.
• Replication. Observations made under identical test conditions.
• Representative Sample. A sample that accurately reflects a specific condition or set of conditions within the universe.
• Reproducibility (of a Measurement). The extent to which repeated measurements of a particular object with a particular individual produce the same value.
• Requirements. Requirements are descriptions of how a product or service should act, appear, or perform. Requirements generally refer to the features and functions of the deliverables that are building on the project. Requirements are considered to be a part of project scope. High-level scope is defined in the project definition (charter). The requirements form the detailed scope. After the requirements are approved, they can be changed through the scope change management process.
• Research. Critical and exhaustive investigation or experimentation having for its aim the revision of an accepted conclusion in the light of newly discovered facts.
• Residual Error. See Experimental Error.
• Response Time. The time that an order needs to be satisfied.
• Retrospective. A team meeting that happens at the end of every development iteration to review lessons learned and to discuss how the team can be more efficient in the future. It is based on the principles of applying the learning from the previous sprint to the upcoming sprint.
• Rework. Activity required to correct defects produced by a process.
• Risk. There may be potential external events that will have a negative impact on the project if they occur. Risk refers to the combination of the probability the event will occur and the impact on the project if the event occurs. If the combination of the probability of the occurrence and the impact to the project is too high, the potential event should be identified as a risk and a proactive plan should be put in place to manage the risk.
• Robust. The conditions or state in which a response parameter exhibits hermetic to external cause of a nonrandom nature, that is, impervious to perturbing influence.
• Safety Stock. Inventory held to compensate for variation in demand, quality, and downtime.
• Sample. One or more observations drawn from a larger collection of observations or universe (population).
• Scatter Diagrams. Charts that allow for the study of correlation, for example, the relationship between two variables.
• Scope. Scope is the way the boundaries of the project are described. It defines what the project will deliver and what it will not deliver. High-level scope is set in the project definition (charter) and includes all of the deliverables and the boundaries of the project. The detailed scope is identified through the business requirements. Any changes to the project deliverables, boundaries, or requirements would require approval through scope change management.
• Scope Change Management. The purpose of scope change management is to manage change that occurs to previously approved scope statements and requirements. Scope is defined and approved in the scope section of the project definition (charter) and the more detailed business requirements. If the scope or the business requirements change during the project (which usually means that the client wants additional items), the estimates for cost, effort, and duration may no longer be valid. If the sponsor agrees to include the new work in the project scope, the project manager has the right to expect that the current budget and deadline will be modified (usually increased) to reflect the additional work. This new estimated cost, effort, and duration now become the approved target. Sometimes the project manager thinks that scope management means having to tell the client "no." That makes the project manager nervous and uncomfortable. However, the good news is that managing scope is all about getting the sponsor to make the decisions that will result in changes to project scope.
• Scrum. Scrum is a framework within which people can address complex adaptive problems while productively and creatively delivering products of the highest possible value. It is based on the adaptive and iterative methodology of software development.
• Scrum Master. Scrum is accountable for removing impediments to the ability of the team to deliver the sprint goal/deliverables. The scrum master is not the team leader but acts as a buffer between the team and any distracting influences. The scrum master ensures that the scrum process is used as intended. The scrum master is the enforcer of rules. A key part of the scrum master's role is to protect the team and keep them focused on the tasks at hand. The role has also been referred to as servant-leader to reinforce these dual perspectives.
• Scrumban. Scrumban is a mix between scrum and kanban, which supposedly contains the best features of both methods.
• Sensei. Japanese word for "teacher" and denotes mastery within their field of knowledge. A sensei should be a wise and easily understood mentor that guides thinking with his subjects rather than dictates the point so as to promote learning.
• Setup Time. The amount of time required to changeover a process after
• [[producing the last part of one product to the first good part of the next product.
• Short Term Variation. The amount of variation observed in a characteristic that has not had the opportunity to experience all the sources of variation from the inputs acting on it.
• Signal Kanban. A signal that triggers an upstream process to produce when a minimum quantity is reached at the downstream process.
• Single Minute Exchange of Die (SMED). A technique to reduce setup or changeover times to eliminate the need to build in batches.
• Spaghetti Chart. A visual chart showing the path taken by a product or person during a process to highlight excessive motion.
• Special Cause. See Assignable Cause.
• Special Cause Variation. Nonrandom causes of variation, sometimes outside the project manager's control.
• Specification Limits. The boundaries of acceptable performance.
• Spike. A short, time-boxed piece of research, usually technical, on a single story that is intended to provide just enough information that the team can estimate the size of the story.
• Sponsor (Executive Sponsor and Project Sponsor). The sponsor is the person who has ultimate authority over the project. The executive sponsor provides project funding, resolves issues and scope changes, approves major deliverables, and provides high-level direction. He or she also champions the project within the organization. Depending on the project and the organizational level of the executive sponsor, he or she may delegate day-to-day tactical management to a project sponsor. If assigned, the project sponsor represents the executive sponsor on a day-to-day basis and makes most of the decisions requiring sponsor approval. If the decision is large enough, the project sponsor will take it to the executive sponsor.
• Sprint/Iteration. A fixed duration period of time in which user stories are chosen to work on. The term sprint comes from the scrum methodology and is analogous to the term iteration. A sprint is defined as a two- to four-week increment of software development activities that deliver working software at the end of the increment. External influences are not allowed to change the requirements of the stories being worked on.
• Sprint Backlog. At the beginning of each sprint, the team has sprint planning with an end result being a backlog of work that the team anticipates completing at the end of the sprint. These are the items that the team will deliver against throughout the duration of the sprint.
• Sprint Planning. This is a presprint planning meeting attended by the core agile team. During the meeting, the product owner describes the highest priority features to the team as described on the product backlog. The team then agrees on the number of features that can be accomplished in the sprint and plans out the tasks required to achieve delivery of those features. The planning group works the features into user stories and assigns acceptance criteria to each story.
• Sprint Review. Each sprint is followed by a sprint review. During this review, the software developed in the previous sprint is reviewed and, if necessary, new backlog items are added.
• Stable Process. A process that is free of assignable causes, for example, in statistical control.
• Stakeholder. Specific people or groups who have a stake in the outcome of the project are stakeholders. Normally, stakeholders are from within the company and may include internal clients, management, employees, administrators, etc. A project can also have external stakeholders, including suppliers, investors, community groups, and government organizations.
• Standard Deviation. One of the most common measures of variability in a data set or in a population. It is the square root of the variance.
• Standardized Work. A defined work method that describes the proper workstation and tools, work required, quality, standard inventory knacks and sequence of operations.
• Statistical Control. A quantitative condition that describes a process that is free of assignable/special causes of variation, for example, variation in the central tendency and variance. Such a condition is most often evidence on a control chart, that is, a control chart that displays an absence of nonrandom variation.
• Statistical Process Control (SPC). The use of basic graphical and statistical methods for measuring, analyzing, and controlling the variation of a process for the purpose of continuously improving the process.
• Steering Committee. A steering committee is usually a group of high-level stakeholders who are responsible for providing guidance on overall strategic direction. They don't take the place of a sponsor but help spread the strategic input and buy-in to a larger portion of the organization. The steering committee is especially valuable if the project has an impact in multiple organizations as it allows input from those organizations into decisions that affect them.
• Story Points. Unit of estimation measuring complexity and size.
• Subgroup. A logical grouping of objects or events that display only random event-to-event variations, for example, the objects or events are grouped to create homogenous groups free of assignable or special causes. By virtue of the minimum within group variability, any change in the central tendency or variance of the universe will be reflected in the subgroup-to-subgroup variability.
• Supermarket. A strategically controlled store of parts used by downstream processes.
• Supplier. A vendor or entity responsible for providing an input to a process in the form of resources or information.
• Symptom. That which serves as evidence of something not seen.
• System. That which is connected according to a scheme.
• Systematic Variables. A pattern that displays predictable tendencies.
• Takt Time. Rate of demand from customer. It is the available operating time for the requirement.
• Task. A user story that can be broken down into one or more tasks. Tasks are estimated daily in hours (or story points) remaining by the developer working on them.
• Task Board/Storyboard. A wall chart with cards and sticky notes that represents all the work for in a given sprint. The notes are moved across the board to show progress.
• Team. The team is responsible for delivering the product. A team is typically made up of five to nine people with cross-functional skills who do the actual work (analyze, design, develop, test, technical communication, document, etc.). It is recommended that the team be self-organizing and self-led, but often work with some form of project or team management.
• Test-Driven Development. Test-driven development (TDD) is a software development process that relies on the repetition of a very short development cycle: First, the developer writes a failing automated test case that defines a desired improvement or new function; then produces code to pass that test and finally refactors the new code to acceptable standards.
• Test of Significance. A procedure to determine whether a quantity subjected to random variation differs from postulated value by an amount greater than that due to random variation alone.
• Theory. A plausible or scientifically acceptable general principle offered to explain phenomena.
• Theory of Constraints. Theory of constraints describes the methods used to maximize operating income when an organization is faced with bottleneck operations. This theory also deals with how to handle the unknown.
• Time Boxing. Time boxing is a planning technique common in planning projects (typically for software development) in which the schedule is divided into a number of separate time periods (time boxes, normally two to six weeks long) with each part having its own deliverables, deadline, and budget.
• Total Cycle Time (TCT). The time taken from work order release into value stream until completion/movement of the product into shipping/finished goods.
• Total Productive Maintenance. A means of maximizing production system efficiency by analyzing and eliminating downtime through upfront maintenance of equipment.
• Toyota Production System. The production system developed and used by the Toyota Motor Company that focuses on the elimination of waste throughout the value stream.
• Trend. A gradual, systematic change over time or some other variable.
• Two-Sided Alternative. The value of a parameter that designates an upper and lower bound.
• Type I Error. See Alpha Risk.
• Type II Error. See Beta Risk.
• Unnatural Pattern. Any pattern in which a significant number of the measurements do not group themselves around a center line; when the pattern is unnatural it means that outside disturbances are present and are affecting the process.
• User Persona. Personas are a description of the typical users of a given software. A persona description should include skills, background, and goals.
• User Story. A user story is a very high-level definition of a requirement, containing just enough information so that the developers can produce a reasonable estimate of the effort to implement it. A user story is one or more sentences that capture what the users want to achieve. A user story is also a placeholder for conversation between the users and the team. The user stories should be written by or for the customers for a software project and are the main instrument to influence the development of the software. User stories could also be written by developers to express nonfunctional requirements (security, performance, quality, etc.).
• Upper Control Limit. A horizontal line on a control chart (usually dotted) that represents the upper limits of process capability.
• Value. This term refers to a product or service capability that is provided to a customer at the right time and at an appropriate price.
• Value Added Activity. Any activity that changes the product in terms of fit, form, or function toward something that a customer is willing to pay for.
• Value Added Time. The time expanded in value-added activity to produce a unit. Time for those work elements that transform the product in a way that the customer is willing to pay for.
• Value Stream. All activities, both value added and non–value added, that are required to bring a product, group, or service from the point of order to the hands of a customer and a design from concept to launch to production to delivery.
• Value Stream Map. A visual representation of a process showing flow of information and material through all steps from the supplier to the customer.
• Variable. A characteristic that may take on different values.
• Variables Data. Numerical measurement made at the interval or ratio level; quantitative data, for example, ohms, voltage, diameter, or subdivision of the measure scale are conceptually meaningful, for example, I.6478 volts.
• Variation. Any quantifiable difference between individual measurements; such differences can be classified as being due to common causes (random) or special causes (assignable).
• Variation Research. Procedures, techniques, and methods used to isolate one type of variation from another (for example, separating product variation from test variation).
• Velocity. A relative number that describes how much work the team can get done over a period of time.
• Visualization. The design of a workplace such that problems and issues can be identified without timely and in depth investigation. Truly visual workplaces should be capable of assessment in less than three seconds.
• VOB (Voice of Business). The voice of the business is derived from financial information and data. Voice of the business represents the needs of the business and the key stakeholders of the business. It is usually items such as profitability, revenue, growth, market share, etc.
• VOC (Voice of Customer). Voice of the customer represents the expressed and nonexpressed needs, wants, and desires of the recipient of a process output, a product, or a service. It is usually expressed as specifications, requirements, or expectations.
• VOE (Voice of Employee). Voice of the employee represents the expressed and nonexpressed needs, wants, and desires of what the employee needs to be successful.
• VOP (Voice of Process). Voice of the process represents the performance and capability of a process to achieve both business and customer needs.
• Waste (Muda). Includes anything that does not add value to a final product or service, an activity that consumes valuable resources without creating customer value.
• WIP (Work in Process). These are items—material or information -- that are between machines, processes, or activities waiting to be processed, any inventory between raw materials and finished goods.
• Withdrawal Kanban. A signal that specifies the type and quantity of product that the downstream process may withdraw.
• Work Cells. An arrangement of people, machines, materials, and methods such that processing steps are adjacent and in sequential order, thus parts can be processed one at a time.
• Work Plan (Schedule). The project work plan describes how the project will be completed. It describes the activities required, the sequence of the work, who is assigned to the work, an estimate of how much effort is required, when the work is due, and other information of interest to the project manager. The work plan allows the project manager to identify the work required to complete the project and also allows the project manager to monitor the work to determine whether the project is on schedule.
• X. Input
• X&R Charts. A control chart that is a representation of process capability over time, displays variability in the process average and range across time.
• XP. A software development methodology that is intended to improve software quality and responsiveness to changing requirements. As a type of agile software development, it advocates frequent "releases" in short development cycles (time boxing), which is intended to improve productivity and introduce checkpoints at which new customer requirements can be adopted.
• Y. Output