This glossary for IEE business management provides a definition for terms used in the Integrated Enterprise Excellence (IEE) enhanced business management system.

IEE addresses the common-place business scorecard and process improvement issues that are prevalent in businesses, as described in a one-minute video:


glossary for IEE business management video


Glossary for IEE Business Management Terms


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  • 30,000 Foot-Level: A Six Sigma KPOV, CTQ, or Y variable response that is used in S4/IEE to describe a high level project or operation metric that has infrequent subgrouping/sampling such that short-term variations, which might be cause by KPIVs, will result in charts that view these perturbations as common cause issues. A 30,000-Foot-Level XmR or individuals chart can reduce the amount of fire fighting in an organization when used to report operational metrics.
  • BPIE: Business Process Improvement Events (BPIE) is a Smarter Solutions developed system that captures and manages the completion of projects that are identified by all levels of the organization. Identified projects can be simple just-do-it projects or projects that involve the DMAIC/DMADV project execution roadmaps.
  • Common Cause: A term developed by Deming, where faults of the system are considered common causes of trouble, and faults from fleeting events as special cause.
  • Control Charts: A time series chart that has upper and lower control limits which are mathematically created and are independent of any specification limits.
  • Crosby, Philip: Wrote the best-selling Quality is Free. He was an American who promoted the phrases “zero defects” and “right first time”.
  • CTQ: Critical to Quality, see KPOV


  • Deming, W. Edwards: is known as fathering the Japanese post-war industrial revival. Many have regarded Deming as the leading United States quality guru.
  • DFIEE: Design for IEE. The DFSS equivalent in the IEE system
  • DFSS: Design for Six Sigma is a system that is to reduce defects and cycle time for product development, process development, or IT projects.
  • e-DMAIC: Define-Measure-Analyze-Improve-Control Six Sigma roadmap at the enterprise level.
  • p-DMAIC: Define-Measure-Analyze-Improve-Control Six Sigma roadmap at the project level.
  • DMADV: Define-Measure-Analyze-Design-Verify DFSS roadmap.
  • FMEA: Failure mode and effects analysis can be used to identify and eliminate design, process, or system risks.
  • Firefighting: Organizations firefight when they react on a regular basis to recently encountered problems. These problem resolutions typically do not lead to a long-term solution. Firefighting often treats common cause variation as though it were special cause.
  • Hammer, Michael: Considered to be the originator of reengineering
  • IEE: Integrated Enterprise Excellence is a management and improvement system developed by Smarter Solutions that takes Lean Six Sigma and the Balanced Scorecard to its next level.
  • Infrequent subgrouping/sampling: Traditionally, rational subgrouping issues involve the selection of samples that yield relatively homogeneous conditions within the subgroup for a small region of time or space, perhaps five in a row. For an and R control chart, the within-subgroup variation defines the limits of the control chart on how much variation should exist between the subgroups. For a given situation, differing subgrouping methodologies can dramatically affect the measured variation within subgroups, which in turn affects the width of the control limits. For the high-level metrics of S4/IEE we want infrequent subgrouping/sampling so that short-term variations caused by KPIV perturbations are viewed as common cause issues. A 30,000-foot-level XmR or individuals chart created with infrequent subgrouping/sampling can reduce the amount of fire fighting in an organization. However, this does not mean a problem does not exist within the process.
  • Individuals chart: An individuals control chart is often designated by an X chart or I chart, where the variability between subgroups affect the control limits.
  • IT: Information technology (IT) describes systems that create, convert, or duplicate data or information.


  • Juran, Joseph: has been a noted authority on quality concepts. He worked for Western Electric in the 1920s. His Quality Control Handbook was published in 1951.
  • Kaizen event: An accelerated approach to improve a specific area, which is considered a focused event, rather than an ongoing process.
  • KPIV: Key process input variable, which in IEE can be a 50-foot-level or 30,000-foot-level metric from another process.
  • KPOV: Key process output variable (KPOV) in IEE are often described as a 30,000-foot-level metric.
  • Lean: Lean considers improving operations and the supply chain with an emphasis for the reduction of wasteful activities like waiting, transportation, material hand-offs, inventory, and overproduction.
  • Mean: The mean of a sample is the sum of all responses divided by the sample size. In a random population sample, represents the sample mean, which is an estimate for the population mean, µ.
  • Normal distribution: A bell-shaped distribution that is often useful to describe various physical, mechanical, electrical, and chemical properties.
  • P&L: Profit and loss
  • Pareto chart: A graphical technique used to quantify problems so that effort can be expended in fixing the “vital few” causes, as opposed to the “trivial many.” Named after Vilfredo Pareto, an Italian economist.
  • Process capability/performance metric: A best estimate prediction of what a predictable process is expected to produce in the future if nothing changes. This Smarter Solutions’ term does not require a specification and is written in a no-nonsense language that is easy-to-understand.


  • Satellite-Level: Used to describe a high level business metric that has infrequent subgrouping/sampling such that short-term variations, which might be cause by KPIVs, will result in charts that view these perturbations as common cause issues.
  • Special Cause: See Common Cause.
  • Standard Deviation: A mathematical quantity that describes the variability of a population. When data follow a normal distribution, the following population percentages fall within the noted number of standard deviations from the mean: 68.26% within 1 standard deviation, 95.46% within 2 standard deviations, and 99.73% within 3 standard deviations. In a random population sample, s represents standard deviation, which is an estimate for the population mean, σ.
  • Subgrouping: Subgrouping addresses the x-axis interval frequency on control charts.
  • TOC: Theory of Constraints (TOC) considers system output is a function of the whole system, as opposed to individual processes alone. When the system is viewed as a whole, it is realized that the output is a function of the weakest link. The weakest link of the system is the constraint.
  • Value Chain: Describes what the business does and the accomplishment of tasks. Within IEE, includes procedural flowchart drill-downs, procedural document attachments, and reported metrics.
  • Variance (statistical): Variance is the square of standard deviation.
  • Variance (business): The difference between budgeted and actual work. Calculations can address both time and cost differences.
  • Welch, Jack: CEO of GE between 1981 and 2001 and in the mid 1990’s deployed Six Sigma within the company. Because of his innovative management strategies and style of leadership, he has been highly regarded in the business community.
  • XmR: An individuals control chart (X chart/I chart) in conjunction with a moving range control chart that directly tracks change between the subgroups.
  • Y = f(x): Y is a function of x; i.e., the output of a process (Y) is a function of the input levels in a process (x’s).


Contact Us to set up a time to discuss with Forrest Breyfogle how your organization might gain much from an Integrated Enterprise Excellence (IEE) Business Process Management System and its Enterprise Performance Reporting System (EPRS) software.