1. Cayman Business Systems 513 777-3394 --- Elsmar.com 3/2001 Rev F Page G-1 8-Disciplines Problem Solving Glossary Action Plan º This is a formal record of assignments, responsibilities and timing. Advanced Product Quality Planning º A cross functional approach that enables communication and feedback to flow throughout the organization for improved quality and productivity. APQP focuses on linking ‘Prevent Recurrence’ with: Defined product development process (event, timing, quality of event) G-Y-R (Green, Yellow, Red) program control process (macro view of critical path). Design Quality Review (DQR) or micro view of working documents. Engineering change management (Verification and Validation) Analytical Tools º These devices assist with ownership, analysis, verification, implementation, validation and prevention. Certification º Process to stop concern at every point in the material flow cycle. Champion º Someone who has authority but does not participate directly in the team’s problem solving activities. A supporter and persuader of the team’s actions. Common Cause º Process inputs and conditions that regularly contribute to the variability of process outputs. Because Common Causes are ‘regular’ contributors, the ‘Process’ or ‘System’ Variability is defined in terms of them. Containment Action º Verified action that immediately stops the Symptom from reaching the customer. Corrective Action º Action that permanently eliminates the Root Cause of a problem. Selected in D5 and implemented in D6. Decision Making º Process used to select the best Corrective Action. Assess impact and risks.

2. Cayman Business Systems 513 777-3394 --- Elsmar.com 3/2001 Rev F Page G-2 8-Disciplines Problem Solving Glossary Design Quality Reviews º A process that measures the Product Development Process. Examines information across the cross-functional Product Development Team in terms of: The ability of the design to meet customer needs and wants. Comparison with Best-In-Class (BIC) Ability to meet Affordable Targets (AFT) Level of robustness of both the process and the product. Things-Gone-Wrong / Things-Gone-Right in process (including Team functioning). Defining ‘Quality of the Event” for the engineering process. Design Verification Plan & Report º DVP&R - A document which serves to specify a Design Verification Plan and acts as a medium for reporting test results and monitoring engineering related program events. East-West 8D º EW8D - Working document and Management Review tool that facilitates the review of multiple problems. Eight Disciplines º Ford method of choice for standardized problem solving using a common language that facilitates implementation and management review. Empowerment º A proactive process, to delegate, authorize, or enable the Team members to have Ownership and to be responsible for changing the rules. Escape º Primary question in problem solving which explains how the problem reached the customer. Fault Tree Diagram º A tool which simplifies the difficulty of handling complex problems through the development of branches (problems that can be acted upon).

3. Cayman Business Systems 513 777-3394 --- Elsmar.com 3/2001 Rev F Page G-3 8-Disciplines Problem Solving Glossary Information Database º Is / Is Not º Difference º Changes º Decision Making º A tool for Root Cause Analysis that organizes all known data about a problem into four categories: What, Where, When and How Big by using Is / Is Not comparisons in D2. The database is analyzed for Differences and Changes leading to Root Cause in D4. Corrective actions are evaluated using Decision Making and Verification in d%. Actions are implemented in D6. Leader º The facilitator who guides the efforts and who is responsible for the actions of the team. Management Review º Jointly agreed to by Management and Team for periodic review of progress to objectives. This is the team’s opportunity to obtain management assistance where required. Managing Decision Making º The technique chosen by Ford to achieve structural changes to meet customer satisfaction. This approach consists of theory, methods and philosophy for extracting information from data, converting data into information that enables us to improve the quality of managerial decisions. Measurable º An indicator, quantified numerically, to gauge a specific element of a business. Occur º Occurrence - Primary question in problem solving which explains how the problem occurred. Ownership º Taking responsibility for success (or failure), being empowered.

4. Cayman Business Systems 513 777-3394 --- Elsmar.com 3/2001 Rev F Page G-4 8-Disciplines Problem Solving Glossary Pareto Chart º Type of bar chart used in problem description to quantify concerns / defects in descending order of importance. It works on the principle that 20% of the problems are responsible for 80% of the occurrences. Paynter Chart º Chart that identifies multiple problem descriptions and provides validation of containment and corrective actions over time. The chart consists of two-dimensional tracking of a specific number of problems along the Y axis and occurrences of failures in weeks or months along the X axis. Poka-Yoke º Error Proofing - Techniques use simple and inexpensive devices to prevent errors about to occur or detect errors and defects that have occurred. Policy Deployment º System focus providing direction and alignment focusing on process What’s and How’s to develop different measures at different organizational levels to achieve common policy and/or goal. Problem Description º Includes object, concern and quantification. Is used to determine Is / Is Not comparisons. Problem Description Analysis º Process to organize and gather appropriate information about the Symptom into a Problem Description through the use of Repeated WHY's and the Information database. Problem Improvement Methodology º Structured approach to ensure that our processes better met customer needs and wants over time, in an efficient manner, with a minimum of waste and error. The stages are: Identify the opportunity Define the scope Analyze the current process Envision future processes Pilot and Verify the proposed changes Implement changes Continually improve

5. Cayman Business Systems 513 777-3394 --- Elsmar.com 3/2001 Rev F Page G-5 8-Disciplines Problem Solving Glossary Process Measurables º Indicators identified and monitored on an ongoing basis that result in consistent product quality and greater customer satisfaction. Product Development Process º A group of events and processes that includes: System design specification Quality function deployment Technology reviews Risk assessment Quality road map Serviceability Design and process verification plan and report Design and process FMEA (Failure Modes Effects Analysis0 Critical, safety and significant characteristics Control plans and flow charts Process capability Initial sample review Process review Prototype º An initial or original model from which subsequent copies are made or improved models are developed. Quality Function Deployment º A planning tool used by multi-disciplinary teams for translating customer needs and expectations into appropriate system and component requirements. The output of QFD process is the identification of system and component significant characteristics as well as key process and production characteristics. Quality Operating System º Manufacturing plant - A data driven management process designed by Ford to get to the Root Cause of problems by employing the Prevent Recurrence methodology. A system format which includes and Executive Summary of key plant measurables, a Preventive Focus on performance of products during product development, a Customer focus group of measurables reflecting Voice of the Customer, and in internal Focus of process measurables.

6. Cayman Business Systems 513 777-3394 --- Elsmar.com 3/2001 Rev F Page G-6 8-Disciplines Problem Solving Glossary Recognize Gaps º Process of finding the distance between what should be happening and what is actually happening. Examples of gaps are Best-In-Class versus current performance, Customer Expectations versus what customer receives, Plan versus actual. Repeated WHY’s º Method for improved Problem Description that moves from the problem Symptom to the Problem Description by asking WHY to obtain better definition of object, concern and quantification. This question is asked repeatedly until a level is reached which can be acted upon. Results Measurables º Indicators identified and monitored on an ongoing basis that result in consistent product quality and greater customer satisfaction. Risk Analysis º Process of assessing the negative impact of selected alternatives to Verify choice of Corrective Action in D5. Root Cause º Verified reason that accounts for the described problem. Achieved in D4. Root Cause Analysis º Process to arrive at Root Cause for Occur and Escape paths. Select Measurables º The principle of Empowerment requires team champion and members to be proactive in identifying appropriate measurables and in agreeing to responsibility for success. Measurables are numerically quantifiable indicators to gauge a specific element of a business. Special Cause º Process inputs and conditions which SPORADICALLY contribute to the variability of process outputs. The variability due to one or more Special Causes can be identified by the use of control charts. The ‘process’ or ‘system’ variability is defined without them. Standard Questions º Proactive thought process to establish and recognize the Ownership of Business Plan measurables.

7. Cayman Business Systems 513 777-3394 --- Elsmar.com 3/2001 Rev F Page G-7 8-Disciplines Problem Solving Glossary Symptom º Circumstance, event or condition that indicates the existence of a problem through analysis of a trend chart. System Design Specification º A tool which utilizes QFD methodology to identify the need to add or revise engineering and test specifications to correspond to all specific customer requirements. The output of SDS is revised system and component engineering requirements and testing specifications (DVP&R). System Prevent Actions º Action that addresses the system that allowed the problem to Occur and / or Escape. It eliminates the possibility that this system could cause similar problems (used in D7). Trend Chart º Chart displays directional changes in performance over time. V-Loop º Process of Verifying Containment and Corrective Actions before implementation and Validating the actions over time after implementation. This process is performed by using the same indicator that demonstrated the problem. Validate º Proof developed AFTER implementation and over time. The action taken must do what is intended by providing before and after data comparison, and must not introduce a new problem. Proof must be developed by using the same indicator that demonstrated the problem and should be tracked on the Paynter chart. Verify º Proof developed BEFORE implementation that the action taken does what is intended by providing before and after data comparison, and does not introduce a new problem.