Six Sigma is adata-driven methodologyaimed ateliminating defectsand reducing variation to improve quality and performance. Short cited terms: “data-driven,” “eliminate defects” (L5M7 Study Guide, p.110).

Non-critical itemsinvolve low value and low risk, usually managed viatransactional or arm’s-lengthrelationships where trust plays a minor role.

Short cited term: “non-critical = low trust required.” (L5M7 Study Guide, p. 221)

ANormal Distributionforms asymmetrical bell-shaped curve, representing probability distribution around a mean.

Short cited term: “normal distribution = bell-shaped curve.” (L5M7 Study Guide, p. 150)

TQMis along-term philosophydemanding sustained commitment; benefits emerge gradually through continuous improvement.

Short cited extract: “TQM is a long-term commitment where results may not be immediate.” (L5M7 Study Guide, p. 118)

According toMichael Porter’s Value Chain,primary activitiesincludeinbound logistics, operations, outbound logistics, marketing and sales, and service.Procurement and HRaresupport activities.

Short cited term: “primary activities – logistics, operations, marketing and sales” (L5M7 Study Guide, p. 76).

Understandingorganisational and national culturesupports collaboration, communication, and innovation across the chain. Cultural awareness enables smoother partnerships and shared values.

Short cited extract: “Cultural understanding assists collaboration and trust within supply-chain relationships.” (L5M7 Study Guide, pp. 58–59)

Cost-plus pricingis based onactual material and labour costs plus an agreed marginfor overheads and profit.

Short cited extract: “Cost-plus = actual cost + agreed mark-up for profit/overheads.” (L5M7 Study Guide, p.191)