28 June 2001
processes, including product and market definition, managing channels
of distribution, merchandising, advertising, and service. The sales
sub-process usually involves sales activities, requests for
quotations, quotes, order entry, and supplying the products and/or
services from the make process. That which is sold may be work-in-
process, inventory, or even waiting resources. The cycle time in the
order fulfillment process has a direct bearing on the amount of
resources which must be employed to be responsive to the customer, the
quality of that response, and the rate of improvement. The order
fulfillment process cycle time measurement is usually a roll up
combination of the processes within this scope that one deems to be
critical to competitiveness and can be effectively measured.
Paradigm shift: A pronounced change in how one sees at least one
aspect of the world, reflected by a change in behavior. It may stem
from the marketplace, costs, competition, regulations, technology,
information or other variables. (See: "Paradigm.")
Paradigm: The pattern, the rules and regulations, the principles, the
grand formula from which each individual views the world and behaves.
It is based on his/her makeup, experiences and perspective.
Pareto analysis: A tool for problem solving that involves ranking all
potential problem areas or sources. Typically, a few causes/barriers
account for most of the improvement potential, so problem solving
efforts are best prioritized to concentrate on the "vital few" causes,
temporarily ignoring the "trivial many." Named for Italian economist
Vilfredo Pareto (1848-1923).
Paycheck test: Since many barriers initially identified are only
symptoms of long cycle time, one can frequently awaken oneself to this
fact by applying the symptom test and then the paycheck test: "Would
you bet your paycheck that removing these barriers would make a XX%
reduction in cycle time during the next three months?" If from the
symptom test, it is a potential barrier and the answer is "Yes" to the
paycheck test, then the potential barrier is likely to be a root cause
Same as "Competitiveness gap".
Process map: A graphic representation of an overview of a process,
from the beginning to completion. Answers the following questions that
are appropriate: Who? What? When? Where? Why? How long? It is usually
constructed in different levels to maintain simplicity. (Synonym: A
cross-functional diagram displays functions responsible for the
process in one direction (usually vertically) and process steps in the
other direction (usually horizontally).
Process yield: The percent of products or services that are
acceptably completed through a given process, including those
resulting from remedial action and/or rework.