THE ECONOMIST SYSTEM MODULE 7  STANDARDS
OPEN CODE : DOS,WINDOWS,UNIX : ASCII ,TCP/IP, .XLS .MOD .WIN .HIS .REG .DOC ... 
INSTITUTIONAL CODE : SNA/UN, CIOU/UN,UNESCO,CEPAL,MF,
GLOSSARY
terms concept in detail
1 Acceptance sampling Refers to a sampling inspection (as opposed to 100% inspection) in wich decisions are made to accept or not accept a product or service  
2 Accuracy Is a characteristic of measurement which addresses how close an observed value is to the true value. It answers the question, "Is it right?"
3 Activity Is the work required to proceed from one event or point in time to another
4 Affinity diagram Is a management and planning tool used to organize ideas into natural groupings in a way taht simulates new, creative ideas.
5 ANN Artificial Neural Network
6 Analysis Is the first phase in the desing of instruction in which date are gathered to identify gaps between actual and desired organizational performance.
7 Antecedents Are reminders to workers of what they are espected to accomplish. For example, a cheklist may serve as a reminder to an employee of what is expected.
8 Appraisal costs.  APV Are costs incurred to determine the degree of conformance to quality requirements. APV Adjusted present value
9 Arrow Diagram Is a management and planning tool used to develop the best possible schedule and appropriate controls to accomplish the schedule; the critical path method and the program evalution review technique make use of arrow diagram.
10 ASQ . ASCII American Society of Quality . American Standard Code for Interchange Information 
 www.asq.org
11 Attribute data Are data which are contable, such as number of rejects or number of errors.
12 Attribute sampling plan Is a plan that allows users to count the number of conforming or non-conforming parts and look for defects. The four types or attribute plans include single, double, multiple, and sequential.
13 Auditing Is evaluating the conformance of operations to both desing documentation and standars
14 Award Is something given in recognition of performance or quality
15 B to B   Business to Business. 
16 Benchmarking Is a process for measuring and comparing a company´s performance 
against that of outstanding companies or best-in-class companies. 
A company determines how excellent companies achieve their 
performance levels and then uses the information to improve its 
own performance.
17 Bias Is a characteristic of measurement that refers to a systematic difference
18 Brainstorming Is a problem-solving tool taht teams use to generate as many ideas a
s possible related to a particular subject. Team members begin by 
offering all their ideas; the ideas are not discussed or reviewed until 
after the brainstorming session.
19 Breakthrough Is a method of solving chronic problems, which results from the 
effective execution of a strategy designed to reach the next level 
of quality. Such change often requires a paradigm shift within  
the organization.
20 Business market customer Are ather businesses involved with a company, such as retailers, 
original equipment manufactures, and distributors.
21 Business partnering Is the creation of cooperative business alliances between 
constituencies within an organizationor between an organization and 
its customers. Partnering occurs through a pooling of resources in a  
trusting atmosphere focused on conyinuous, mutual improvement.
22 Business processes Are processes that focus on what the organization does as a 
BUS business and how thay go about doing it. A business has fuctional 
processes (generating output within a single department) and 
cross-fuctional processes (generating output across several 
fuctions or departments)BUS : Business unit strategy
23 C to C Customer to Customer
24 Calibration Is a comparison of one measurement system or instrument not verified 
as accurate to another measurement system or instrument that 
is verified as accurate
25 Cause-and-effect diagram Is a basic tool for analyzing process dispersion that illustrates the 
main causes and subcauses leading to an effect or symptom
26 Checksheet Is a basic strustured form for recording data which is custom-designed 
the used and enable the user to readily record and analyze data.
27 Chronic problem Is a long-standing adverse situation which can be remedied by changing 
the status quo. For example, actions such as revising an unrealistic 
manufacturing process or addressing customer defections can change 
the status quo and remedy the situation  
28 Coaching Is a continuous improvement technique by which people receive 
one-to-one learning through demostration and practice and which is 
characterized by immediate feedback and correction
29 Commanding Is a decision-marking approach in which a facilitator makes a decision 
alone whitout consulting others.
30 Commercial/industrial market Refers to business market customers who are described by variables 
such as location, SIC code, buyer industry, technological sophistication,
purchasing process, size, ownership, and financial strenght
31 Common cause of variation Are causes that are inherent in any process all the time. A process 
that has only common causes of variation is said to be stable 
or predictable.
32 Competence Refers to a person´s ability to learn and perform a particular activity. 
Competence generally consists of skill, knowledge, aptitude, 
and temperament components.
33 Concurrente engineering Is a process in which an organization desings a product or service 
using input and evaluations from business units and functions early 
in the process, anticipating problems, and balancing the needs of all 
parties. The emphasis is on upstream prevention v/s downstream correction 
34 Conformance quality Occurs when a company focuses on conforming to requerements, doing 
things right the first time, and reducing scrap and rework.
35 Constancy of purpose Occurs when goals and objectives are properly aligned to the 
organizational vision and mission
36 Consulting Is a decision-marking approach in which a facilitator talks to others 
and considers their input before making a decision.
37 Consumer market customer Are end users of a product or service
38 Consumer´s risk For a sampling plan refers to the probability of acceptance of a lot. 
The quality of which has a designated numerical value representing a 
level that is seldom desirable. Usually the designated value wiil be 
the limiting quality level.
39 Continuous process improvement Includes the actions taken throughout an organization to increase the 
effectiveness and efficiency of activities and processes in order to 
provide added benefits to the cuatomer and organization. It is considered 
a subset of total quality management and operates according to 
the premise taht organizations can always make improvements.
40 Control chart Is a basic tool which consists of a chart whit upper and lower control 
limits on which values of some statistical measure for a series of samples 
or subgroups are plotted. It frequently shows a central line to help detect 
a trend of plotted values toward either control unit. It is used to monitor 
and analyze variation from a process to see whether the process is in 
statistical control.
41 Cost curve Is a model which shows how developments in new technology, automation, 
and other areas have resulted in the ability to achieve perfection 
at finite costs.
42 Critical path Refers to the sequence of tasks that takes the longest time and 
determines a project`s completation date
43 Critical Path Method (CPM) Is an activity-oriented porject management technique which uses 
arrow-diagramming techniques to demonstrate both the time and cost 
required to complete a project. It provides one time estimate -normail time.
44 Customer delight Is the result achieved when customer requirements are exceeded in  
ways the customer finds valuable
45 Customer orientation Refers to a tendency to see customers` needs in terms of services, 
value, or benefits they will derive from a product, not in terms of a product itself.
46 Customer satisfaction Is the result achieved when product features correspond to customer needs. 
47 Customer service Refers to quality activities after the sale is made.
48 Customer-supplier chain Is a series of inputs, added value, and outputs which occur as 
employees are both customers and suppliers to one another.
49 Customer value Is the market-perceived quality adjusted for the relative price of a product.
50 Cycle time reduction Means to speed up the time that it takes, from start to finish, 
to complete a particular business process.
51 Data Are facts presented in descriptive, numeric, or graphic form.
52 Delegation Is a decision-making approach in which a facilitator shifts 
the responsibility for making a decision to someone else.
53 Design Is the second phase in the desing of instruction in which decisions 
are made regarding course content, delivery methods, measurement, 
evaluation, and implementation. The outcome of this of this phase  
is a training plan.
54 Design of Experiments (DOE) Is a set of tools commonly used with quality function deployment and 
is a formal branch of applied statistics that focuses n planning, conducting, 
studying, and interpreting the results of controlled tests.
55 Desired quality Refers to the additional features and benefits a customer discovers when 
using a product or service which lead to increased customer satisfaction. 
If missing, a customer may become dissatisfied
56 Development Is the third phase in the design of instruction in which training materials 
are created, purchased, or modified to meet the needs of the trainees.
57 Discrete probability distribution Means that the measured process variable takes on a finite or limited 
number of alues; no other possible values exist.
58 Distribution Describes the amount of potencial variation in outputs of a process; it 
is usually described in terms of its shape, average, and standard deviation. 
59 DCF  .       DRM Discounted cash flow  .   Digital rights management
60 ECAAR EPS Economist allied for arms reduction  Economist for Peace and Security
www.ecaar.org     www.epsusa.org
www.ciberutem.cl/ecaar
61 Employee involvement Is a planned and orderly attempt to link the shared interests of the 
employee and the company toward their common aim.
62 End Users Are eternal customers who purchase products/services for their own 
use or receive products/services as gifts; they are not employees of 
the organization supplying the product or service.
63 Evaluation Is the final phase in the desing of instruction in which training results 
are measured and compared to the objectives identified earlier.
64 Evaluation (behavior level) Is the third level of training evaluation which measures whether training 
has changed the behaviors of employees. 
65 Evaluation (learning level) Is the second level of training evaluation which measures how well 
trainees learned knowledge, skills, and attitudes.
66 Evaluation (reaction level) Is the simples and most subjectives levelof training evaluation which 
measures how well people liked the training and the training environment.
67 Evaluation (results level) Is the fourth and highest level of training evaluation which measures the 
effect of training on organizational objectives and attempts to quantify 
results in terms of measures such as productivit, turnover, time, sales, or costs. 
68 Events Is a the starting or ending point for a group of tasks.
69 Excited quality Is the additional benefit a customer receives when a product or service 
goes beyond basic expectations. Excited quality "wows" the customer 
and separates the provider from the competition. If missing, the 
customer will still be satisfied.
70 Expected quality Also known as basic quality, is the minimum benefit a customer 
expects to receive from a product or service.
71 External Customers Are people or organizations who receive and pay for a product, 
a service, or information.
72 External failure costs Are costs associated with defects found after th customer receives 
the product or service.
73 Facilitator Is a team member who is responsible for creating favorable conditions 
that will enable a team to reach its purpose or achieve its goals by briging 
together necessary tools, information, and resources to get the job done.
74 Factor Analysis Is a statistical technique that examines the relationships between a 
single dependent variable and multiple independent variations. 
For example, it is used to determine which questios on a questionnaire 
are related to a specific questions such as, "Would you buy this product again?"
75 Feedback Is the return of information in interpersonal communication; it may be 
based on fact or feeling and helps the party who is receiving the 
information judge how well he/she is being understood by the other party.
76 Feedback and Feedforward Are terms defined by Feigenbaum to differentiate past quality traditions 
from today`s strategic approach. Feedback is more reactive and is centered 
around the progression of an unsatisfactory product. Feedforward is 
more proactive and fcuses on developing a satisfactory product in the first place.  
77 Flowchart Is a basic tool that graphically represents the steps in a process.
78 Force field analysis Is an analytical tool that identifies positive forces that support an action 
or situation and negative forces that try to prevent it.  
79 Formal communication  Is the officially sanctioned data within an organization, which includes 
publications, memoranda, training materials/events, public ralations 
information, and company meetings.
80 Gantt Chart Is a proyect management technique by which the activities of a proyect are displayed graphically and in sequential order and are plotted against time.
81 Gap analysis Is a technique that compares a company`s existing state to its desired state (as expressed by its long-term plans) and determines what needs to be done to remove or minimize the gap.
82 Goal  Is a nonquantitative statement of general intent, aim, or desire; it is the end point toward which management directs its efforts and resources.
83 Hierarchy structure Describes an organization which is organizational around functional departments/product lines or around customer/customer segments and is characterized by top-down management (also referred to as a bureaucratic model or pyramid structure)
84 High performance work Is defined by the MBNQA critria as work approaches systematically directed toward achieving ever higher levels of overall performance, including quality and productivity.
85 Histogram  Is a basic tool that provides a graphic summary of variation in a set of data that depics patterns that are difficult to see in a simple table of numbers.
86 Horizontal Structure Describes an organization which is organized along a process or value-added chain, eliminating hierarchy and fuctional boundaries (also referred to as a systems structure)
87 Hoshin planning Is a methodology for organizing and focusing an enterprise`s efforts on critical issues impacting its success. Hoshin is short for Hoshin Kanri, which is a Japanese term meaning Hoshin (plan, policy, aim) and Kanri (administration, management)
88 House of Quality Is a diagram (named for its house-shaped appearance) that clarifies the relationship between customer needs and product features. It helps correlate market or customer requirements and analysis of competitive products with higher level technical and product characteristics, and it makes it possible to bring several factors into a single figure.
89 IEEE International Electrical and Electronic Engineering 
www.ieee.org
90 Implementation Is the fourth phase in the desing of instruction in which training is delivered to the target audience.
91 Industrial engineering code: 2149, UN
92 Informal Communication Is the unofficial communication which takes place in an organization as people talk freely and easily; it includes phone communication, e-mail, impromput meetings, and personal conversations.
93 Information Is data transformed into an ordered format that makes it usable and allows one to draw conclusions.
94 Inspection Is the quality assurance process by which a company appraises output to see if it conforms to requirements or standars
95 Intermediate customers Are distributors, dealers, manufacturers, or brokers who make products and services available to the end user by repairing, repackaging, reselling, or creating finished goods from components or subassemblies.   
96 Internal Customers Are employees or departments who receive output in the form of a product, a service, or information from other employees or departments within the organization.
97 Internal failure costs Are costs associated with defects found before the customer receives the product or service. 
98 Interrelationship digraph  Is a management and planning tool that displays the relationships between factors in a comlex situation. It identifies meaningful categories from a mass of ideas and is useful when relationship are dificult to determine.
99 Intervention Is an action taken by a leader to resolve an underlying conflict within a team or work group.
100 Intervention focus Refers to how an intervention is directed-toward a group or toward a specific individual
101 Intervention intensity Refers to the strength of the intervention by the intervening person; intensity is affected by words, voice inflection, and nonverbal behaviors. 
102 ISO International Estándar Organization 
www.iso.org
103 ISO 9000 ISO concerned with quality management
104 ISO 14000 Iso concerned with environmental management
105 Job description Is a narrative explanation of the work, the work process, the work setting, and the organizational culture.
106 Job specification Is a list of the important fuctional and quality attributes (knowledge, skills, aptitudes, and personal characteristics) needed to succeed in the job.
107 Juran Trilogy Is a graph that measures quality processes, quality improvement, and quality control in terms of time and cost.
108 Just-in-time training Is training that is offered to emplyees as it is needed, so that employees will be able to use their new skill immediately after training.
109 Kano model Is a representation of the three levels of customer satisfaction defined as dissatisfaction, neutrality, and delight.
110 Ladder of inference Is a mental model that explains how individuals have different interpretations about what happens is an organization. The model explains how people move beyond observable data and culturally understood meanings by adding their own meanings, assumptions, and theories.
111 Leader Is a person who sets in motion what needs to be done for the future to increase organizational and employee capabilities and make high performance and continuous improvement second nature.
112 Likert`s management styles Refers to four patterns of organizational management, interactions, and communication and considers superior-subordinate and peer-peer patterns as determined by management style.
113 Likert`s management styles (benevolent authoritative) Is a behavioral management pattern in which downward communication prevails. Upward communication from the subordinate to the manager is at the managr`s discretion; horizontal peer communication is discouraged.
114 Likert`s management style (consultative) Is a behavioral management pattern in which open communication is encouraged between manager and subordinates but is frowned upon between subordinates.
115 Likert`s management styles (exploitative authoritative) Is a behavioral management pattern in which one-way communication flows only from manager to subordinates; managers discouraged information transfer among peers.
116 Likert`s management style (participative) Is a behavioral management pattern in which managers and subordinates communicate openly and freely. The manager is a leader, facilitator, and coordinator; the group assumes responsibility for control, responsibilities, and authority.
117 Long-term goals Refers to goals thet an organization hopes to achieve in the future, usually in three to five years.
118 Macro processes Are broad, far-ranging processes taht often cross functional boundaries and are completed by more than one organization.
119 Management by policy Is the organizational infrastructure that ensures the right things and done at the right time.
120 Market-perceived quality Is the customer`s opinion of your products or services as compared to those of your competitors.
121 Materials review board (MRB) Is a quality control committee or team, usually employed in manufacturing or other materials-processing installations, which possesses the responsibility and authority to deal with items or materials that do not conform to fitness-for-use specifications.
122 Matrix chart Is a management and planning tool that shows the relationships among various groups of data; it yields information about the relationships and tha importance of task/method elements of the subjects.
123 Matrix structure. Matrix Input Output Describes an organization which is organized into a combination of functional and product departments; it brings together teams of people to work on proyects and is driven by project scope.MATRIX OF INPUT OUTPUT SEE SAM in SNA link
124 Mean Is ameasure of central tendency and is the arithmetic average of all scores in a data set.
125 Measurement Refers to the reference standard or sample used for the comparision of properties.
126 Median Is the middle number or center value of a set of data when all the data are arranged in an increasing sequence.
127 Micro processes Are narrow processes made up of detailed steps and activities which could be accomplished by a single person.
128 MID Modelling Industrial Dynamic
129 Mission statement Is an explanation of purpose or reasons for existing as an organization; it provides the focus for the organization and defines its scope of business.
130 Mode Is the score that occurs most frequently in a data set.
131 Multiple customers Refers to the fact that organizations can have more than one customer and more than one person or function that influences a buying decision.
132 NITS The National Institute of Standards and Technology
www.quality.nist.gov
133 Nominal group technique Is a problem-solving technique used to generate ideas related to a particular subject. Team members write down their ideas individually and share them one at a time. When all ideas are recorded, they are discussed and prioritized by the group. 
134 Non-value-added Refers to tasks or activities that can be eliminated with no deterioration in product or service functionality, performance, or quality in the eyes of the customer.
135 Objective Is a quantitative statement of future expectations and an indication of when the expectations should be achieved; it flows from goals and clarifies what people must accomplish.
136 Optimization Refers to achieving planned process results that meet the needs of the customer and supplier alike and minimize their combined costs.
137 P to P Partner to Partner
138 Parallel processes Are created when two or more people share the tasks in a primary process.
139 Parallel structure Describes an organizational module in which groups, such as quality circles or a quality council, exist in the organization in addition to and simultaneously with the line organization (also referred to as collateral structure)
140 Pareto chart Is a basic tool used to graphically rank causes from most significant to least significant. It utilizes a vertical bar graph in which the bar height reflects the frequency or impact of causes.
141 Performance appraisal Is a formal method of measuring employees` progress against performance standards and providing feedback to them.
142 Performance evaluation Refers to the screening and acceptance of suppliers based on requirements such as quality, price, and delivery.
143 Performance management system Is a system that supports and contributes to the creation of high performance work and work systems by translating behavioral principles into procedures.
144 Performance plan Is a performance management tool that describes desired performance and provides a way to assess the performance objectively.
145 Performance test Is a assessment device that requires candidates to complete an actual work task in a controlled situation.
146 Pert Project Evaluation Review Techniques
147 Phases of improvement Refers to the four phases of making changes that are part of process improvement: streamlining, preventing, correcting, and excelling. Organizations use a mixture of these phases as they pursue process improvement goals.
148 Plan-Do-Check-Act cycle Is a continuous improvement model that teaches that organizations should plan an action, do it, check to see how it conforms to plan expectations, and act on what has been learned.
149 Point estimate Is the single value used to estimate a population parameter. Point estimate are commonly referred to as tha points at which the interval estimates are centered; these estimates give information about how much uncertainty is associated with the estimate. 
150 Precision Is a characteristic of measurement which addresses the consistency or repeatability of a measurement system when the indentical item is measured a number of times.
151 Prevention costs Are costs incurred to keep internal and external failure costs and appraisal costs to a minimum.
152 Prioritization matrix Is a management and planning tool used to determine the highest-priority options or alternatives to accomplish an objective.
153 Primary Process refers to the basic steps or activities that will produce the output without the nice-to-haves.
154 Probability Refers to the likelihood of occurrence.
155 Probability distribution Is a mathematical formula which relates tha values of characteristics with their probability of occurrence in a population.
156 Process Is an activity or group of activities that takes an input, adds value to it, and provides an output to an internal or external customer.
157 Process capability Refers to the limits within which a tool or process operates, based upon minimum variabitily as governed by the prevailing circumstances.
158 Process decision program chart (PDPC) Is a management and planning tool that identifies all events that can go wrong and the appropriate countermeasures for these events. It graphically represents all sequences thet lead to a desirable affect.
159 Process effectiveness Refers to how well a process meets customer expectations and requirements.
160 Process efficiency Refers to how well resources are used to produce an output in a process. Efficiency measures are usually based on effort, cost, and time.
161 Process improvement Refers to the act of changing to reduce cycle time and make the process more effective, efficient, and adaptable. It focuses on the overall effectiveness of a cross-fuctional process and requires cutting across convectional organizational boundaries.
162 Process improvement team (PIT) Is a natural work group or cross-functional team whose responsibilityis to achieve needed improvements in exixting processes. The life span of the team is based on the completion of the team purpose and specific goals.
163 Process management Is the collection of practices used to implement and improve quality management and process effectivenses; it focuses on holding tha gains achieved through process improvement and assuring process integrity.
164 Process mapping Is the flowcharting of a work process.
165 Process owner Is the manager or leader who is responsible for ensuring that the total process is effective and efficient.
166 Producer`s risk For a sampling plan refers to the probability of not accepting a lot, the quality of which has a designated numerical value representing a level that is generally desirable. Usually the designated value will be the acceptable quality level. 
167 Product orientation Refers to a tendency to see customer`s needs in terms of a product they want to buy, not in terms of the services, value, or benefits the product will provide.
168 Professional development plan Is a career development tool created for an individual employee. Working together, the employee and his/her supervisor create a plan which matches the individual`s career needs and aspirations with organizational demands.
169 Program Evaluation and Review Technique (PERT) Is an event-oriented project management technique which utilizes an arrow diagram or road map to identify all major events and demonstrates the amount of time needed to complete a project. It provides three time estimates: optimistic, most likely, and pessimistic.
170 Project life cycle Refers to the four sequential phases of project management: conceptualization, planning, implementation, and completion.
171 Project plan Is the blueprint for process improvement and is the first step in changing a process. It includes a step-by-step description of how the process works, including current inputs, transformations, and outputs.
172 Quality Denotes an excellence in goods and service, especially to the degree they conform to requirements and satisfy customers.
173 Quality advisor Is a person who helps team members work together in quality processes and is a consultant to the team. The advisor is concerned about the process and how decisions are made rather than about which decisions are made.
174 Quality assurance Demonstrates that an entity will fulfill quality requirements. Internal quality assurance gives management confidence in its products and services, while external quality management provides confidence to customers.
175 Quality circle Is a problem-solving, morale-builiding method that uses group participation to prepare recommendations for management.
176 Quality control Is the operational techniques and activities that are used to fulfill requirements for quality and is aimed at both monitoring a process and eliminating causes of unsatisfactory process.
177 Quality cost reports Is a system of collecting quality costs that uses a spreadsheet to list tha elements of quality costs against a spread of the departments, areas, or projects where tha costs will occur and summarizes the data in exact accordance with plans for its use. The reports help organizations review prevention costs, appraisal costs, and internal and external failure costs.
178 Quality cost  Are those expenditures incurred by an organization to attain and ensure specified quality levels or the losses incurred when satisfactory quality is not achieved.
179 Quality engineering Is ensuring that initial plans and specifications for products, processes, and services have the capability to meet their desing intent.
180 Quality evidence audit Is the final part of the data-gathering phase of a quality assessment in which data ralated to quality improvements is compiled, divided into key areas, and rated. The objective is to collect easily quantifiable data that can be clarified by follow-up interviews with select personnel.
181 Quality function Is the entire collection of activities through which we achieve fitness for use, no matter where these activities are performed. 
182 Quality function deployment Is a process used to understand the voice of the customer and to tanslate customer expectations into technical design parameters for each stage of the product-development cycle.
183 Quality improvement Is changing systems so they more efficiently or effectively meet their goals.
184 Quality loop Is a conceptual model of interacting activities that influence quality at the various stages ranging from identification of needs to the assessment of whether these needs have been met (also referred to as a feedback loop)
185 Quality metric Are numerical measurements that give an organization tha ability to set goals and evaluate actual performance v/s plan.
186 Quality plan Is the document setting out the specific quality practices, resources, and sequence of activities relevant to a particular product, project, or contract.
187 Quality planning Is the activity of establishing quality goals and developing the processes and products required. 
188 Quality principles Are the rules or concepts that an organization believes in collectively. The principles have been formulated by senior management with input from others and are communicated and understood at every level of the organization.
189 Quality system Is the organizational structure, procedures, processes, and resources needed to implement quality management.
190 Random sampling Is a sampling method in which every element in the population has an equal chance of being included.
191 Ratio analysis  Is the process of relating isolated business numbers, such as sales, margins, expenses, and profits, to make them meaningfül.
192 Reinforcement  Is the process of ensuring that the right knowledge and skills are being used; it has been described as catching people doing things right.
193 Reliability  Refers to the ability of a feedback instrument to produce the same results over repeated administration. It is the ability of an instrument to measure consistently and with relative absence of error.
194 Reliability engineering  Is determining the probability that a product will be able to perform for a specified period of time.
195 Return on equity (ROE) Is the net profit after taxes, divided by last year's tangible stockholders' equity, and then multiplied by 100 to provide a percentage (also refered to as return on net worth),
196 Return on investment (ROI) Is an umbrella term for a variety of ratios measuring an organization's business performance and is calculated by dividing some measure of retum by a measure of investment and then multipiying by 100 to provide a percentage. In its most basic form, ROI indicates what remains from all money taken in after all expenses are paid.
197 Return on net assets (RONA) Is a measurement of the earning power of the firm's investment in assets and is calculated by dividing net profít after taxes by last year's tangible total assets and then multipiying by 100 to provide a percentage.
198 Root cause analysis Is a quality tool used to distinguish the source of defects or problems. It is a structured approach that focuses on the decisive or original cause of a probiem or condition.
199 Run chart Is a form of trend analysis that uses a graph to show a measurement on a vertical access against time, with a reference line to show the average of the data. A trend is indicated when a series of points head up or down.
200 Sample Is a finite number of items of a similar type taken from a population for the purpose of examination to determine if all members of the population would conform to quality requirements or specifications.
201 Sample frame  Is a comprehensive list of key customers from which a survey sample may be drawn. Sample size refers to the number of units in a sample randomly chosen from the population. Sampling is the process of drawing conclusions about the population based on a part of the population.
202 Scatter diagram Is a basic tool that graphically portrays the relationship between two variables or process characteristics.
203 Scribe Is a person who records key subjects and main points that are discussed during team meetings, along with related action items assigned to specific team members.
204 Self-inspection Is the process by which employees inspect their own work according to specifíed rules.
205 Self-managed team  Is a team that requires little supervision and manages itself and the day-to-day work it does; self-directed teams are responsible for whole work processes with each individual performing multiple tasks.
206 Situational leadership  Is a leadership theory which maintains that leadership style should change based on the person and the situation, with the leader displaying varying degrees of directive and supportive behavior.
207 Slack time is the time an activity can be delayed without delaying the entire project; it is determined by calculating the difference between the latest allowable date and the earliest expected date.
208 SOCE  Society of Concurrent Engineering
www.soce.org
209 Special causes of variation Are the factors that disrupt the usual flow of work. Processes with special causes are unstable and unpredictable (also referred to as assignable causes).
210 Specifícation Is the engineering requirement forjudging the acceptability of a particular product/service based on product characteristics, such as appearance, performance, and size. In statistical analysis, specifications refer to the document that prescribes the requirements with which the product or service has to perform.
211 Sporadic problem Is a sudden adverse change in the status quo which can be remedied by restoring the status quo. For example, actions such as changing a worn part or handling an irate customer can restore the status quo.
212 Stages of team growth Refers to the four stages defined by Peter Scholtes: forming, storming, norming, and performing. The stages help team members accept the normal problems that occur on the path from forming a group to becoming a team.
213 Stakeholders  Are people, departments, and organizations that have an investment or interest in the success or actions taken by the organization, but are not directly involved in the customer-supplier chain.
214 Standard Is a statement, specification, or quantity of material against which measured outputs from a process may be judged as acceptable or unacceptable.
215 Standard deviation Is a measure of variability which shows how much the scores are spread out around the mean.
216 Statement of work (SOW) Is a description of the actual work to be accomplished. It is derived from the work breakdown structure and, when combined with the project specifications, becomes the basis for the contractual agreement on the project (also referred to as scope of work).
217 Statistical process control (SPC) Is the collection of statistical techniques used to measure and analyze the variation in processes.
218 Strategic fit review Is a process by which senior managers assess the future value of each project to a particular organization in terms of its ability to advance the mission and goals of that organization.
219 Strategic training plan Is a blueprint that ensures that training and education build the organization's capabilities and enable individuals to contribute to the organization's success.
220 Stratified sampling Is a sampling method that requires that data are taken within a strata. Each lot is sampled using random or systematic sampling.
221 Supplier Is any other-company provider of goods and services, whose goods and services may be used at any stage in the production, design, delivery and use of a company's products and services. Suppliers include businesses, such as distributors, dealers, warranty repair services, transportation contractors, and franchises; and service suppliers, such as health care, training, and education.
222 Supplier audits Aare reviews that are planned and carried out to verify the adequacy and effectiveness of a supplier's quality program, drive improvement, and increased value.
223 Supplier certification Is the process of evaluating the performance of a supplier with the intent of authorizing the supplier to self-certify shipments if such authorization is justified. It may also refer to an organization's willingness to provide training and certification procedures for its suppliers to increase their abilities to deliver quality products and services.
224 Supplier selection Is the act of reducing the number of suppliers for a specific product or service to guarantee increased business to selected suppliers because of their performances.
225 Supplier management Is ensuring that suppliers are able to meet the product and process requirements.
226 SWOT analysis Is an assessment of an organization's key strengths, weaknesses, opportunities, and threats. It considers factors such as the organization's industry, the competitive position, functional areas, and management.
227 System Is a network of connecting processes which work together to accomplish the aim of the system.Include input process  output & feedback
228 Systematic sampling Is a sampling method that requires that data be taken every Nth time. It treats each item as a sample size of one; a determination to accept, reject, or continue sampling is made after inspection of each item.
229 Systems approach to management Is a management theory which views the organization as a unified, purposeful combination of interrelated parts; managers must look at the organization as a whole and understand that activity in one part of the organization affects all parts of the organization (also known as systems thinking).
230 Tactical plans Are short-term plans, usually of one to two year durations, that describe actions the organization will take to meet its strategic business plan.
231 Tactics Are the strategies and processes that help an organization meet its objectives.
232 Teach Practice 7-21 Learning Cycle theory Is a learning theory which states that individuals must practice a new skill from 7-21 times before the skill becomes a part of their thinking processes and can be taught to others.
233 Team Is a set of two or more people who are equally accountable for the accomplishment of a purpose and specific performance goals; it is also defined as a small number of people with complementary skills who are committed to a common purpose.
234 Team-based structure Describes an organizational structure in which team members are organized around performing a specific function of the business, such as handling customer complaints or assembling an engine.
235 Theory of knowledge Is a belief that management is about prediction, and people learn not only from experience, but also from theory. When people study a process and develop a theory, they can compare their predictions with their observations; profound learning results.
236 Theory X and Theory Y Is a management theory developed by Douglas McGregor that maintains that there are two contrasting management styles, each of which is based on the manager's view of human nature. Theory X managers take a negative view of human nature and assume that most employees do not like work and try to avoid it. Theory Y managers take a positive view of human nature and believe that employees want to work, will seek and accept responsibility, and can offer creative solutions to organizational problems.
237 Theory Z Was coined by William G. Ouchi and refers to a Japanese style of management that is characterized by long-term employment, slow promotions, considerable job rotation, consensus-style decision making, and concern for the employee as a whole.
238 360-degree feedback process Is an evaluation method that provides feedback from the perspectives of self, peers, direct reports, customers, and suppliers.
239 Total quality management Is a strategic, integrated management system for achieving customer satisfaction, which involves all managers and employees and uses quantitative methods to continuously improve an organization's processes.
240 TQM Total Quality Management
241 Traditional organizations Are those organizations not driven by customers and quality policies.
242 Training Refers to the knowledge and skills that employees need to learn in order to perform or improve their performances of their current jobs or tasks.
243 Tree diagram Is a management and planning tool that shows the complete range of subtasks required to achieve an objective. A problem-solving method can be identified from this analysis.
244 Trend analysis Refers to the charting of data over time to identify a tendency or direction.
245 Tribology Science of Mainterance in Industrial Engineering. 
246 UVN2 University Venture Neural Network.
247 Validity Refers to the ability of a feedback instrument to measure what it was intended to measure.
248 Value-added Refers to tasks or activities that convert resources into products or services consistent with customer requirements.
249 Values Are statements that clarify the behaviors that the organization expects in order to move toward its vision and mission. Values reflect an organization's personality and culture.
250 Variable data Are those data which are measured, such as weight, time, temperature, and pressure.
251 Variable sampling plan Is a plan in which a sample is taken and a measurement of a specified quality characteristic is made on each unit. The measurements are summarized into a simple statistic, and the observed value is compared with an allowable value defined in the plan.
252 Variation Is a change in data, a characteristic, or a function that is caused by one of four factors: special causes, common causes, tampering, or structural variation. Analyzing the cause of a variation allows an organization to reduce the variation and create a stable process.
253 Virtual super team (VST) Is a team that functions as a facto small business and manages itself as a value center. It can be organized along business, product, process, or technology lines and requires excellent lateral teaming skills and constant reshaping.
254 Vision Is a statement that explains in measurable terms what the company wants to become and what it hopes to achieve.
255 Voice of the process  VOIP Is the actual output of the process in terms of variation, cost, and quality of products and services; improvements will not occur until the organization is able to improve the process.VOIP Voice on internet protocol
256 Voice of the customer Is a company's efforts to develop processes to capture customer feedback on the company's products or services and drive it back into the organization.
257 Work breakdown structure (WBS)  Is a project management technique by which a project is divided into tasks, subtasks, and units of work to be performed.
258 Work design  Refers to the manner in which employees are organized in formal or informal, temporary or long-term units
259 Work group Is composed of people from one functional area who work together on a daily basis and whose goal is to improve the processes of their function.
260 UN United Nations 
260 Universal TES code Universal The Economist System code
www.TheEconomistSystem.com  www.tes.cl  
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