Profit and loss. The profitability of an enterprise. May refer to the profit and loss statement.

See also Income Statement


A device or technique used to set the pace of production and maintain takt time.

Pack-out Quantity

The quantity the internal or external customer wants packed in a container for conveyance and shipping. A customer shipment may be made up of a pallet of multiple containers at the pack-out quantity.

P Chart

A type of Control Chart designed to track the proportion that is defective for discrete data. P Charts require the total population and the count of defective units in order to plot the proportion.


The probability value of a statistical hypothesis.The P-value the probability of getting a value of the test statistic as extreme as or more extreme than that observed by chance alone.

Paced Withdrawal

The release production instructions to and the withdrawal of completed product from work areas at a frequent and fixed timing. Paced withdrawal is used to link material flows with information flow. Paced withdrawal functions to limit overproduction and quickly expose abnormalities through frequent movement of goods and associated information.

Parking Lot

A list or a physical place such as a flip chart, for storing ideas, issues or question that are important but off-topic, require additional time for discussion, or otherwise cannot be immediately addressed during a meeting or workshop. Typically

Pareto Chart

A bar chart of discrete data displaying the most significant categories in descending order. It is named after the Italian economist, Vilfredo Pareto, who discovered the “80/20 Rule” or Pareto Principle. Pareto Charts apply this rule to narrow the focus of attention to the 20% of categories that have 80% of the impact. Pareto Charts display both frequency of occurrences as a bar graph and the cumulative percentage of occurrences as a line graph on a single chart.

Pareto Principle

A general principle that the majority of effects come from a minority of causes, credited to Italian economist Vilfredo Pareto who observed that 80% of effects come from 20% of causes. Also known as the 80/20 rule.

PDCA cycle

The plan, do, check, act cycle of improvement and problem-solving. The Plan phase of the PDCA cycle involves understanding the current situation, investigating causes, setting objectives and identifying countermeasures and experiments. The Do phase involves taking actions to execute the plan to address the problem. The Check phase involves verification that the plan was followed, confirmation of the effectiveness of actions. The

Act phase involves capturing knowledge from the cycle, stabilizing the new process or solution, and identifying open action items or new themes for the next rotation of the PDCA cycle. The PDCA cycle was created by statistician Walter Shewhart as plan, do, study, act and popularized by his student Edwards Deming.

PDSA cycle

The plan, do, study, act cycle of improvement and problem-solving.

See also PDCA Cycle

Percent Complete & Accurate

A metric used in transactional value stream mapping to identify problems in incoming information accuracy or completeness at a process.

P-F Interval

The amount of time elapsed between the point when a condition leading to a potential failure can first be detected or P, and the time when deterioration has progressed into a functional failure or F.

  • P = possible first point of detection of condition leading to failure
  • F = failure

The P-F interval, or failure period, is used to set the frequency of Predictive Maintenance activities.

PICK Chart

A two-by-two prioritization matrix in which items are organized along an X-Y axis by impact and ease of doing. The four quadrants of the matrix are labeled Possible, Implement, Challenge, and Kill, shortened to PICK.


A limited test of a model, concept or solution. A pilot is typically more than an single experiment, but a series of connected experiments that are operated for a period of time to verify whether the solutions could work in practice.

Pitch (time)

The time needed in a production area to produce one container of products. The formula for pitch is:

Pitch = takt time x pack-out quantity 

For a process with a takt time of 3 minutes and a pack-out quantity of 20, the Pitch would be

3 minutes x 20 pieces = 60 minutes

The regular withdrawal of a pack-out quantity helps helps set the takt image.

See also takt image

See also pack-out quantity

See also takt time

Pitch (space)

The span of workspace, typically in a moving assembly line, defining where a person performs their cycle of work.

Pit Crew

A method of reducing changeover time in which multiple people work in rapid and coordinated fashion to minimize downtime. The term comes from the rapid changeover teams known as racing pit crews.

Plan, Do, Check, Act

Plan for Every Part

A document containing all relevant details for managing the materials for a process or series of processes. Abbreviated PFEP, this the plan includes the part number, its dimensions, the quantity used daily, the location of use, the location of storage, order frequency, the supplier, transit time from the supplier, pack-out quantity, container size and weight, and any other relevant information.

Planned Maintenance

A set of activities to build and establish a system of scheduled and proactive maintenance. One of the pillars of TPM. A goals of TPM is to shift the focus of the professional maintenance organization from reactive, or unplanned, and breakdown maintenance to more proactive, preventive and Planned Maintenance activities. Specific aims of Planned Maintenance include becoming less reactive and more proactive, improving equipment reliability and availability, increasing the Mean Time Between Failures (MTBF), reducing the Mean Time to Repair (MTTR), and upgrading maintenance capability.

See also Mean Time Between Failures

See also Mean Time to Repair

Planning Poker

A consensus-based, gamified estimation technique used in Agile. Planning Poker is primarily used to estimate effort or relative size of development goals. Also known as Scrum Poker.

Pluses and Deltas

An activity to debrief a project, workship, training session, meeting and so forth by asking participants to identify negatives or things to improve, known as deltas, and positives or things they like, or pluses. These are written down, without criticism or defense, on two columns of a whiteboard of flip chart. Although the name is "pluses and deltas" it is common to start with the deltas and finish with pluses, so that the meeting can end on a positive note.

P-M Analysis

A technique for addressing chronic losses by studying phenomena, or unwanted events, in terms of their causal mechanisms and underlying physical principles. The P stands for phenomena. This refers to an unwanted event such as an accident, breakdown or defect that can be observed in fact. The M stands for mechanism and refers to physical principles and other 4M inputs of machine, material, methods and manpower. While similar to 5 why and other root cause analysis methods, P-M analysis is more effective in addressing problems resulting from a complex interaction of causes.

Point of Cause

The time and/or place where the problem occurrence is observed, where it likely near the location of the root cause and a beginning point for investigation.

Point of Use Storage

The placement of tools, materials, supplies or information directly at or within reach of where they are used. A common example is a tool attached directly to machines mere inches from where it is actually used.


Policy Deployment

Problem Solving

Structured activities to set targets, understand current conditions, identify gaps, explore causes for the gaps, and close the gaps by addressing the causes.

Preventive Maintenance

Maintenance work performed on equipment to reduce the likelihood of failures. Preventive maintenance activities are either time-based or condition-based.


Any gap between a target condition and the actual condition.

Problem Statement

A clear and concise description of the undesired condition. A problem statement should be factual and specific. It should not contain causes or solutions.


A combination of people, tools, information, materials, equipment, methods and other resources in which specified inputs are converted to specified outputs.

Process At A Glance

A visual tool used as part of the Production Preparation Process (3P) to identify seven alternatives for methods, tools, fixtures, quality and other elements for each process step.

See also Production Preparation Process

Process Capability

A statistical measure of the inherent process variability of a given characteristic.

Process Capability Index

See CpK

Process Capacity Table

A document used to calculate the capacity of each machine within a process or process series. The aim is to confirm true capacity by taking into account loading and unloading time, changeovers, and other routine time elements. The Process Capacity Table is one of the documents required for creating standard work.

Process Chart

A compact but detailed diagram to analyze a process by observing and recording actions as they happen. The Process Chart is used to record travel distance as well as time taken at each step. The Process Chart is best suited for analyzing processes that are not too complicated, mostly sequential, having few decision points or branching steps.

Process Confirmation

A systematic way to check that standards and control points for critical processes are being followed, using a simple, visual, and time-based activity. The purpose of Process Confirmation involves going to where the work is actually being done and confirming that it’s being done according to the agreed standard. It’s not a detailed audit of documentation, but a brief, structured and informal audit of our operational standards at the place of work. The ideal result is that process standards are being followed, but when this is not the case it’s an opportunity for live feedback and coaching.

Process Cycle Efficiency

The percentage of time during the overall process which adds value. Calculated as value-added time divided by total lead time.

Process Decision Program Chart

A visual tool for selecting the sequence of actions to produce the desired result from many possible outcomes. The PDPC can be used to plan various contingencies, get activities back on track, steer events in the required direction and find countermeasures.

Process Failure Modes & Effects Analysis

The application of FMEA to processes. See also Failure Modes & Effects Analysis

Process Improvement

The practice of evaluating the methods, steps, tools and equipment of a process to make it simpler and better.

Process Map

A visual representation of workflow through a series of processes. There are many types of process map in varying style and level of detail. The flowchart is also called a process map.

Process Mapping

The act of observing and analyzing a series of processes, creating a visual representations, planning and making improvements based on the findings of these activities.

Process Metric

Measurements to evaluate the performance of business processes.

See also Leading Indicators

Process Walk

Product Family

A group of product and its variants that go through the same or similar process steps and equipment. When processes and equipment is shared, product families are used as the basis for value stream analysis.

See also Product Quantity Product Routing Analysis

Product Quantity Product Routing Analysis

Product Quantity Process Routing Analysis. The PQ (Product Quantity) refers to Pareto analysis to determine the 80/20 rule of the top products or services that make up 80% of work volume. The PR (Process Routing) refers to the Parts-Process Matrix analysis to determine product families by grouping of products with similar process flows.

Production Analysis Board

Production Control Board

Production Kanban

A signal that informs a process what type and what quantity of products to produce. A Production Kanban card is typically attached to a container of parts. The production kanban for batch processes is known as a signal kanban and triggers production when a minimum quantity of containers is reached.

Production Leveling

See also Leveling

Production Preparation Process

Abbreviated 3P, it is a structured approach for designing production process according to lean manufacturing principles. 3P is used to develop processes and equipment for new products or to redesign the them for existing products. In the 3P approach involves a cross-functional team that evaluates seven or more alternatives for each process step against lean manufacturing criteria. The team then builds cardboard, wood, paper and other available materials to quickly mock up and walk through the process before investing in building equipment.

Production Smoothing


The effectiveness of productive effort. Productivity is the ratio of output to input. The basic equation is:

Productivity = Output / Input

Productivity is high when the output is high relative to the inputs.

Program Evaluation and Review Technique

A project management tool that provides a visualizes a project's timeline and breaks down individual tasks for analysis. PERT identify task dependencies and help identify when specific project task must be performed in sequence or can be in parallel.


Abbreviated 3P, it is a structured approach for designing production process according to lean manufacturing principles. 3P is used to develop processes and equipment for new products or to redesign them for existing products. In the 3P approach involves a cross-functional team that evaluates seven or more alternatives for each process step against lean manufacturing criteria. The team then builds cardboard, wood, paper and other available materials to quickly mock up and walk through the process before investing in building equipment.

Project Charter

A document stating the scope, objectives, budget, and participants and other planning details of a project.

Pull System

A system to control the release of material, information and instructions, in which a downstream process gives the signal to the upstream process. Because work is started or moved only based on actual need via a downstream pull, this eliminates overproduction. The pull system is one of the three elements of just-in-time.

Push System

In a push system, material or information is worked on or moved into a process, regardless of whether the customer need right now. The pushed product requires extra handling, documentation, storage as inventory,.