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The Complete Lean Shop
Glossary - E

EDI - (See Electronic Data Interchange) - Using computers to share data between customers and suppliers.

Effect -
(1) The result of an action being taken; the expected or predicted impact when an action is to be taken or is proposed. (2) An effect is that which is produced by a cause; the impact a factor (X) has on a response variable (Y).

- Extent to which planned activities are realized and planned results achieved - acc to ISO 9000:2005 3.2.14. OR The state of having produced a decided on or desired effect.

- Relationship between the result achieved and the resources used - acc to ISO 9000:2005 3.2.15 OR The ratio of the output to the total input in a process.

Efficient -
A term describing a process that operates effectively while consuming minimal resources (such as labor and time).

Eight Disciplines Problem Solving
- 8D

Eight wastes -
Taiichi Ohno originally enumerated seven wastes (muda) and later added underutilized people as the eighth waste commonly found in physical production. The eight are: 1. overproduction ahead of demand; 2. waiting for the next process, worker, material or equipment; 3. unnecessary transport of materials (for example, between functional areas of facilities, or to or from a stockroom or warehouse); 4. over-processing of parts due to poor tool and product design; 5. inventories more than the absolute minimum; 6. unnecessary movement by employees during the course of their work (such as to look for parts, tools, prints or help); 7. production of defective parts; 8. under-utilization of employees’ brainpower, skills, experience and talents.

Eighty-Twenty (80-20) -
A term referring to the Pareto principle, which was first defined by J. M. Juran in 1950. The principle suggests most effects come from relatively few causes; that is, 80% of the effects come from 20% of the possible causes. Also see “Pareto chart.”

Electronic Data Interchange
- (EDI) - Using computers to share data between customers and suppliers.

- End-Of-Life Vehicles Directive - Forces car-manufacturers to improve their Recycling rates.

Empathy -
 A dimension of service quality that refers to the amount of caring and individualized attention exhibited by the service firm.

Empirical Law of Averages
- States that if one repeats a random experiment over and over, independently and under "identical" conditions, the fraction of trials that result in a given outcome converges to a limit as the number of trials grows without bound.

Empirical Method
- Relying upon or derived from observation or experiment (from Latin and Greek words meaning "experience")

Employee Involvement (EI) -
An organizational practice whereby employees regularly participate in making decisions on how their work areas operate, including suggestions for improvement, planning, goal setting and monitoring performance.

Empowerment -
(1) A condition in which employees have the authority to make decisions and take action in their work areas without prior approval. For example, an operator can stop a production process if he or she detects a problem, or a customer service representative can send out a replacement product if a customer calls with a problem. (2) Giving employees more responsibility, authority, and accountability for effecting the daily processes and improvements within their purview. "Empowered Teams" or "Self-Directed Work Teams "are an advanced framework for running a work area or department. Many of the best companies invest in the Empowered Teams strategy as a means for creating self-regulating entities that require little supervision and support. (3) A management initiative designed to move decision making to the lowest level in the ­organization. (4) In the strict sense: authorization or permission. In a broader sense: taking action or creating conditions in which another person's full potential may be better realized, e.g., By providing proper tools, good training, clear direction, effective processes and systems and an environment in which the employee can take pride and find joy in his/her work. This broader definition is also referred to as "enablement" or enabling an employee.

End User -
 The ultimate user of a product or service.

Engineering Analysis -
 The process of applying engineering concepts to the design of a product, including tests such as heat transfer analysis, stress analysis, or analysis of the dynamic behavior of the system being designed.

Capabilities - Capabilities that make firms unique and attractive to customers.

Enterprise Resource Planning (ERP) System -
 (1) A system that integrates financial, planning, and control systems into a single architecture. Examples include the SAP R/3 system and Oracle. (2) Taking the needs of an entire organization into account ERP is essentially an extension of "MRP" "Manufacturing Resources Planning" which attempts to ascertain needs and abilities of a company system.

- In common usage: the tendency of systems to deteriorate toward a disordered state.

Equipment Availability -
The percentage of time during which a process (or equipment) is available to run. This can sometimes be called uptime. To calculate operational availability, divide the machine’s operating time during the process by the net available time.

Error & Mistake-Proofing a.k.a. Poka-Yoke (Japanese) -
(1) Lean tool for making products correctly the first time. When thoroughly implemented Error & Mistake-Proofing create improvements on many different levels. Even the products themselves may be redesigned to minimize errors in their manufacture. (2) Error and Mistake-Proofing (also known as "Poka Yoke") is one of the powerful Lean tools used to ensure products and processes are completed correctly the first time. The goal is to reduce scrap, rework, and eliminate production losses due to inconsistent processes, methods, materials, etc. Improved quality and cycle-times are nearly always achieved.

Error Detection -
A hybrid form of error proofing. It means a bad part can be made but will be caught immediately, and corrective action will be taken to prevent another bad part from being produced. A device is used to detect and stop the process when a bad part is made. This is used when error proofing is too expensive or not easily implemented.

Error Proofing -
Use of process or design features to prevent the acceptance or further processing of nonconforming products. Also known as “mistake proofing.”

Estimated Sigma - This is an estimate of the standard deviation calculated by dividing the average range by the tabular constant d2 (R-bar/d2).

Ethics -
The practice of applying a code of conduct based on moral principles to day-to-day actions to balance what is fair to individuals or organizations with what is right for society.

- Assessment of how relevant resources and capabilities are to generic strategies in generic internal assessment.

Evaluation Assessment -
of how relevant resources and capabilities are to generic strategies in generic internal assessment.

Evaporating Cloud
- A term used to describe a methodology developed by goldratt (theory of constraints) to resolve conflicts in a "win-win" manner. Name relates to the idea that conflicts, like clouds, are often indistinct i.e., People are unable to articulate the real reasons for the conflict.

Exogenous Factors
- A term borrowed from biology: derived or developed from external causes. In this case referring to external factors influencing the process or system.

Expectations -
Customer perceptions about how an organization’s products and services will meet their specific needs and requirements.

Experiential Training Techniques -
 Training that is hands-on and provides the recipients of training the oppor­tunity to experience in some manner the concepts that are being taught.

Experimental Design -
A formal plan that details the specifics for conducting an experiment, such as which responses, factors, levels, blocks, treatments and tools are to be used.

Expert System
- A term used to identify systems or software that are developed with "expertise" built in. Presented to users as "ready for use". Users should seek information by which to judge the underlying assumptions on which the system is designed, the quality of the data used, and whether all relevant factors were included in the design.

Exporter -
 A firm that sells its product in another country.

External Customer -
A person or organization that receives a product, service or information but is not part of the organization supplying it. OR The ultimate consumers of the goods that an organization produces.

External Events
- a term used in fault tree analysis. An external event is an event that is normally expected to occur and thus is not considered a fault when it occurs by itself.

External Failure Costs
- (1) These are monetary losses associated with product failure after the customer has possession of the product. These may include warranty or field repair costs. (2) Costs associated with defects found after the customer receives the product or service

External Failure -
Nonconformance identified by the external customers.

External Services
- Service that are provided by companies other than yours.

External Setup Steps
- (1) Procedures that can be performed while a machine is still operating that facilitate the SMED "Single Minute Exchange of Die" process. The most powerful technique used in many SMED applications is converting all "Internal Setup" (procedures that can only be completed while a machine is not operating) to "External Setup" procedures. Typically this one step will reduce setup/changeover times by + or - 50%!. (2) Die setup procedures that can be performed safely while the machine is in motion. Also known as outer exchange of die. Also see “internal setup.”

External Validation -
 Using benchmarking as a way to ensure that a firm’s current practices are comparable to those being used by benchmark firms.

Extrinsic Motivation
- Action taken because of external factors, such as pay, bonus, threatened consequences, coercion, etc.