Glossary Terms Archive

Management by Objectives

Management by Objectives (MBO) is a management strategy that involves setting clear, measurable goals for employees to achieve within a specific time frame. The approach encourages collaboration between managers and employees to establish these objectives, ensuring...

Incremental Cost: Definition, Formula, and Six Sigma Applications

Every decision in a process improvement project has a financial dimension. Should you add a second shift to meet demand? Accept a special order at a reduced price? Outsource a component rather than manufacture it in-house? Invest in new equipment to reduce defect...

Failure Mode Effects and Criticality analysis (FMECA)

What Is Failure Mode Effects and Criticality Analysis? FMECA is an approach to risk evaluation that can be done from the bottom up (Hardware) or from the top down (Functional). Inductive or data-driven analysis it links the following elements in a failure chain:...

Efficient Allocation of Resources in Lean Six Sigma

Efficient allocation of resources in Lean Six Sigma means assigning people, budget, and time to the improvement projects that deliver the greatest business impact relative to their cost. In practice, this means matching Black Belts, Green Belts, and budget to a...

Dispersion

Dispersion Dispersion refers to the spreading or scattering of something in various directions, typically involving the distribution of particles, waves, or data points. It is a fundamental concept in various fields, including physics, statistics, and optics, where it...