Six Sigma Acronyms

ABC

Activity Based Costing A form of cost accounting that focuses on the costs of performing specific functions (processes, activities, tasks, etc.) rather than on the costs of organizational units. ABC generates more accurate cost and performance information related to specific products and services than is available to managers through traditional cost accounting approaches.

ABM

Activity Based Management

ANOVA

Analysis Of Variances Analyze hypothesis to determine if a change is required. Analysis of variance is a statistical technique for analyzing data that tests for a difference between two or more means by comparing the variances *within* groups and variances *between* groups.

Transitional

Applying Six Sigma to services instead of hard products. Use tools to define and measure process steps.

BOK

Body of Knowledge

BPR

Business Process re-engineering

DPMO

Defects Per Million Opportunities

QFD

Quality Function Deployment Deployment of CTQs Quality function deployment (QFD) is a structured methodology and mathematical tool used to identify and quantify customers' requirements and translate them into key critical parameters. In Six Sigma, QFD helps you to prioritize actions to improve your process or product to meet customers' expectations.

Seiri 整理 (sort)

Remove unnecessary items and dispose of them properly Make work easier by eliminating obstacles Reduce chance of being disturbed with unnecessary items Prevent accumulation of unnecessary items Evaluate necessary items with regard to cost or other factors Remove all parts not in use Segregate unwanted material from the workplace

QS9000

Requires good products and/or services

RTY

Rolled Throughput Yield (RTY) is the probability that a single unit can pass through a series of process steps free of defects. If you will remember, the First Time Yield calculation we did (FTY) considered only what went into a process step and what went out. Rolled Throughput Yield adds the consideration of rework.

Seiketsu 清潔 (Standardize)

Standardize the best practices in the work area. Maintain high standards of housekeeping and workplace organization at all times. Maintain orderliness. Maintain everything in order and according to its standard. Everything in its right place.(Chilled totes in chilled area, Dry totes in dry area.) Every process has a standard

SPC

Statistical Process Control

SME

Subject Matter Expert

SIPOC

Supplier, Input, Process, Output, Customers. SIPOC diagrams are used to identify suppliers, customers, inputs, outputs, and the process(es).

5S

"sort", "straighten", "shine", "standardize", and "sustain" Other phases are sometimes included e.g. safety, security, and satisfaction. These however do not form a traditional set of "phases" as the additions of these extra steps are simply to clarify the benefits of 5S and not a different or more inclusive methodology

Seiton 整頓 (Systematic Arrangement)

Can also be translated as "set in order" or "streamline" Arrange all necessary items so they can be easily selected for use Prevent loss and waste of time Make it easy to find and pick up necessary items Ensure first-come-first-served basis Make workflow smooth and easy

Seiso 清掃 (Spic and Span)

Can also be translated as "sweep" or "sanitize" or "shine" Clean your workplace completely Use cleaning as inspection Prevent machinery and equipment deterioration Keep workplace safe and easy to work

Hidden Factory

Collection of processes, practices that negatively affect your production.

CQI

Continuous Quality Improvement. This is performed after the control phase of DMAIC

CCR

Critical Customer Requirements

CTQ

Critical to Quality CTQs (Critical to Quality) are the key measurable characteristics of a product or process whose performance standards or specification limits must be met in order to satisfy the customer. They align improvement or design efforts with customer requirements. CTQs represent the product or service characteristics that are defined by the customer (internal or external). They may include the upper and lower specification limits or any other factors related to the product or service. A CTQ usually must be interpreted from a qualitative customer statement to an actionable, quantitative business specification. To put it in layman's terms, CTQs are what the customer expects of a product... the spoken needs of the customer. The customer may often express this in plain English, but it is up to us to convert them to measurable terms using tools such as FMEA, etc.

Six Sigma

Customer focused, well defined problem solving methodology supported by a handful of powerful statistical tools. Six is the number of standard deviations.

DMADV [DMEDI]

Define, Measure, Analyze, Detail design, Verify Define the project goals and customer (internal and external) deliverables Measure and determine customer needs and specifications Analyze the process options to meet the customer needs Design (detailed) the process to meet the customer needs Verify the design performance and ability to meet customer needs When To Use DMADV The DMADV methodology, instead of the DMAIC methodology, should be used when: • A product or process is not in existence at your company and one needs to be developed • The existing product or process exists and has been optimized (using either DMAIC or not) and still doesn't meet the level of customer specification or six sigma level

DMAIC

Define, Measure, Analyze, Improve, Control The DMAIC methodology should be used when a product or process is in existence at your company but is not meeting customer specification or is not performing adequately. The DMAIC methodology is almost universally recognized and defined as comprising of the following five phases: Define the project goals and customer (internal and external) requirements. Measure the process to determine current performance. Analyze and determine the root cause(s) of the defects. Improve the process by eliminating defect root causes. Control future process performance. When To Use DMAIC The DMAIC methodology, instead of the DMADV methodology, should be used when: • A product or process is in existence at your company but is not meeting customer specification or is not performing adequately. The implementation process is done at the improvement cycle. Sometimes DMAIC is projected as D M A I2 C.

DFSS

Design for Six Sigma Unlike the DMAIC methodology, the phases or steps of DFSS are not universally recognized or defined -- almost every company or training organization will define DFSS differently. Many times a company will implement DFSS to suit their business, industry and culture; other times they will implement the version of DFSS used by the consulting company assisting in the deployment. Because of this, DFSS is more of an approach than a defined methodology. Generally used when replacing a process.

ECN

Engineering Change Notice

FMEA (FMECA)

Failure Mode and Effects (Criticality) Analysis Failure mode and effects analysis (FMEA) is a disciplined approach used to identify possible failures of a product or service and then determine the frequency and impact of the failure. See the tool Failure Mode and Effects Analysis. A procedure and tools that help to identify every possible failure mode of a process or product, to determine its effect on other sub-items and on the required function of the product or process. The FMEA is also used to rank & prioritize the possible causes of failures as well as develop and implement preventative actions, with responsible persons assigned to carry out these actions.

FTY

First Time Yield calculation considered only what went into a process step and what went out. Process A = 100 units in and 90 out Process B = 90 in and 80 out Process C = 80 in and 75 out Process D = 75 in and 70 out.

Example of RTY

If you will remember, the First Time Yield calculation we did (FTY) considered only what went into a process step and what went out. Rolled Throughput Yield adds the consideration of rework. Using the previous example: Process A = 100 units in and 90 out Process B = 90 in and 80 out Process C = 80 in and 75 out Process D = 75 in and 70 out. If in order to get the yield out of each step we had to do some rework (which we probably did) then it really looks more like this: Process A = 100 units, 10 scrapped and 5 reworked to get the 90. The calculation becomes [100-(10+5)]/100 = 85/100 = .85 This is the true yield when you consider rework and scrap. Process B = 90 units in, 10 scrapped and 7 reworked to get the 80. [90-(10+7)]/90 = .81 Process C = 80 units in, 5 scrapped and 3 reworked to get the 75. [80-(5+3)]/80 = .9 Process D = 75 units in, 5 scrapped and 10 reworked to get the 70. [75-(5+10)]/75 = .8 Now to get the true Rolled Throughput Yield (Considering BOTH scrap and the rework necessary to attain what we thought was first time throughput yield) we find that the true yield has gone down significantly: .85*.81*.9*.8 = .49572 or Rounded to the nearest digit, 50% yield. A substantially worse and substantially truer measurement of the process capability. An Assumption is made in the preceeding example that there are no spilled opportunities after each process step.

LEAN

Initiative focused on eliminating all waste. The Production System Design Laboratory (PSD), Massachusetts Institute of Technology (MIT) http://lean2.mit.edu/ states that 'Lean production is aimed at the elimination of waste in every area of production including customer relations, product design, supplier networks and factory management. Its goal is to incorporate less human effort, less inventory, less time to develop products, and less space to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible.' Principles of Lean Enterprise: # Zero waiting time # Zero Inventory # Scheduling -- internal customer pull instead of push system # Batch to Flow -- cut batch sizes # Line Balancing # Cut actual process times

MUDA

Japanese word for Waste. also non-value-adding work. Waste is any activity that consumes time, resources, or space but does not add any value to the product or service.

JIT

Just in Time

MBML

Management by Massive Layoffs

MBO

Management by Objective

MBWA

Management by Walking Around

MSA

Measurement Statistical Analysis Measurement system analysis (MSA) is an experimental and mathematical method of determining how much the variation within the measurement process contributes to overall process variability. There are five parameters to investigate in an MSA: bias, linearity, stability, repeatability and reproducibility. According to AIAG (2002), a general rule of thumb for measurement system acceptability is: # Under 10 percent error is acceptable. # 10 percent to 30 percent error suggests that the system is acceptable depending on the importance of application, cost of measurement device, cost of repair, and other factors. # Over 30 percent error is considered unacceptable, and you should improve the measurement system.

MGPP

Multi-generated project plan. Change management process in Six Sigma

Value adding activities

The Value adding activities are simply only those things the customer is willing to pay for, everything else is waste, and should be eliminated, simplified, reduced, or integrated

TLA

Three Letter Acronym

Shitsuke 躾 (Sustain)

To keep in working order Also translates as "do without being told" (though this doesn't begin with S) Perform regular audits Training and Discipline

TQM

Total Quality Management

VOC

Voice of the Customer

VOE

Voice of the Employee. Employees not using tools because the tool(s) do not help.

VOP

Voice of the process

Waste

Waste is any activity that consumes time, resources, or space but does not add any value to the product or service. seven muda are: Transport (moving products that are not actually required to perform the processing) Inventory (all components, work in process, and finished product not being processed) Motion (people or equipment moving or walking more than is required to perform the processing) Waiting (waiting for the next production step, interruptions of production during shift change) Overproduction (production ahead of demand) Over Processing (resulting from poor tool or product design creating activity) Defects (the effort involved in inspecting for and fixing defects)[18] Taking the first letter of each waste, the acronym "TIMWOOD" is formed. manufacturing goods or services that do not meet customer demand or specifications. The waste associated with working to the wrong metrics or no metrics, the waste associated with not utilizing a complete worker by not allowing them to contribute ideas and suggestions and be part of Participative Management, the waste attributable to improper use of computers; not having the proper software, training on use and time spent surfing, playing games or just wasting time.

Muri

waste created through overburden

Mura

waste created through unevenness in work loads