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Pareto Chart
A graph or chart, based on the Pareto Principle, that ranks occurrences from the most frequent to the least frequent. Pareto charts are often used to prioritize improvement activities. Check Sheets are a common input to creating a Pareto Chart.
Pareto Principle
The concept that most of the effects in a situation can be traced back to a small number of contributors. In the early 1900's Wilfred Pareto observed that 80% of the property in Italy was held by only 20% of the population. Joseph Juran later observed that this 80/20 relationship is in fact quite common, and coined this phenomenon as "The Pareto Principal."
PDCA
See Plan-Do-Check-Act.
Percent Complete and Accurate (%C & A)
A quality metric used to measure the degree to which work from an upstream supplier is determined by the downstream customer to be complete and accurate (or error free). In other words, to what degree does the downstream customer need to: 1) correct information that is incorrect; 2) add missing information that should have been supplied by an upstream supplier; and/or 3) clarify information provided. Out of 100 "things" passing to the downstream customer, what percentage of them are complete and accurate and do not require one of the three above actions before completing the task? The number is obtained by asking the immediate, or successive, downstream customer(s) what percentage of the time they receive work that is 100% complete and accurate.
Percent-value-adding
See Activity Ratio.
Plan-Do-Check-Act (PDCA)
The basic steps to be followed in making continuous incremental improvements (kaizen). This is also called the Shewhart cycle, named after Walter Shewhart and popularized by W. Edwards Deming.
Poka Yoke
See Mistake Proofing.
Process
An operation or group of operations that receives inputs, performs an activity and then provides outputs to an internal or external customer.
Process Flow Chart
See Flow Chart.
Process Time (PT)
The amount of time is takes to perform a task (or series of tasks) if one could work on it uninterrupted. For example, if one enters data for two minutes, places a call to obtain additional information and waits for ten minutes for the call to be returned, talks with the information supplier for three minutes and finishes data entering in one minute, the process time is six (6) minutes (2 + 3 + 1). Process Time plus wait time (or delays) = Lead Time. This time is related to Takt Time such that if every operation in a complete process has a Process Time equal to or less than the Takt Time, then the product or service can be made in One-piece Flow. Also referred to as Touch Time or Operator Cycle Time.
Product Family
A group of products or services that pass through similar process steps. In the service sector, product families are often referred to as Service Families.
Production Smoothing
See Level Loading.
PT
See Process Time.
Pull Production
A Work In Process (WIP) management approach whereby the downstream process authorizes upstream production through the consumption of work. Common pull systems include One-piece Flow, Kanban and FIFO Lanes.
Push Production
A system where an upstream process produces as much as it can without regard to the actual requirements of the next process and sends them to the next process whether they have capacity to begin work or not. Push Production typically results in queues of work building up, which result in delays.