Lean Six Sigma Glossary

Measurement Selection Matrix

Helps validate and choose key measures by assessing the strength of their relationship to customer requirements.

MSA - Continuous Data (aka Gage R&R - Continuous)

It is an experiment designed to assess various elements of continuous or variable data collection including the reliability of the "gage" being used such as a scale, a timer, an odometer etc. The tests also focus on whether or not the operators observe the measurements the same way. These tests determine the level of variation within the data collection process itself.

MSA - Discrete Data (aka Gage R&R - Discrete)

It is an experiment designed to assess various elements of discrete or attribute data collection including the definition of the "standard" or reference, i.e. "good," "pass" or "fail" and whether or not the operators interpret the standard the same way. These tests determine the level of defects and variation within the data collection process itself.

Takt Time

It is the average unit production time needed to meet customer demand. This is calculated by dividing the time available (minutes of work/day) by the customer demand (units required/day).

Root Cause Analysis

It is the method of finding the source of process problems by uncovering their origin or "root." This is in contrast to focusing on fixing the symptoms or effects of process issues. If a "root cause" is removed or neutralized then the undesirable effects will no longer impact the process in question.

Rework Loop

A situation where a step in a process is repeated in order to correct a defect; also known as backtracking.

Correlation Coefficient (aka Pearson Correlation)

A statistical concept expressed as the letter "r" that measures the strength and type of the relationship between two factors ('X' and 'Y').

Dispersion

A statistical concept that describes the variation between values in a data set.

Standard Deviation

A statistical measure that shows the average amount that values vary (aka "Dispersion") from the mean.

Stakeholder

Any individual who is affected by or can affect a process improvement project. In other words, anyone who has a "stake" in a project.

Supplier

Any person or organization that provides an Input to a Process.

Defect

Any process output, product, or service that does not meet customer requirements. One of the 8 Wastes.

Output

Any resource (product, service, data, labor, etc.) that is the result of a process.

Push

Type of system that refers to processes that rely on forecasting or the practice of creating excess goods and services to maintain a buffer.

Pull

Type of system that refers to the goal of having units moved through the process at the rate of customer demand.

Alternative Path

Used in process mapping, this method shows multiple ways of achieving the same result.

Management By Fact

Uses data and measurements in decision-making.

Checksheet

A simple tally sheet used to systematically collect data on the frequency of an occurrence (e.g., the frequency of defects).

Impact Effort Matrix

2 x 2 grid that helps you assess solutions for their relative benefit given the relative cause required.

Scope

A clear statement that defines what is included (and, by exclusion, what is not included) in a Lean Six Sigma process improvement project.

Problem Statement

A clear, concise statement about the symptoms of issues being encountered in a process.

Risk Management

A continual "look-ahead" process for minimizing the uncertainty and negative impacts of risks.

Gemba (aka Workplace)

A Japanese term that translates to the "real place" or where the work takes place.

Assumption Busting

A brainstorming and questioning technique that does two things: it identifies and challenges conventional thinking and eliminates obstacles to optimal solutions.

Force Field Analysis

A brainstorming method which pits "driving" (positive) and "restraining" (negative) forces that support or oppose an idea.

Process Analysis

A broad concept that entails the study of detailed process maps.

Business Case

A broad statement that helps sell or justify a specific improvement opportunity to the senior leadership or stakeholders in an organization.

Stop-Start-Continue

A change management tool that is an easy way to identify behaviors/actions that should stop or start, and behaviors/actions that organizations are already doing and should continue. This tool can be used anytime behavioral changes are desired. In order to create a blame-free environment, facilitate a discussion with the leadership team using this tool.

Weighted Criteria Matrix

A decision-making tool that evaluates potential options against a list of weighted factors.

Cost/Benefit Analysis

A decision-making tool to compare costs (negative results) vs. benefits (positive results) of a proposed change to a process.

Monitoring Plan

A detailed data collection plan that supports the Control Plan.

DOE - Fractional Factorial

A form of Design of Experiments that enables operators to observe the changes occurring in the output (Y Response,) of a process while changing more than one input (X Factors) without running every single potential treatment combination. This test highlights shifts in the average response or output associated with multiple factors with less time and effort than required for a full factorial experiment. It has a diminished ability to evaluate how factors in a process might interact. An example would be to test the cycle time (Y) to cook a pizza in different ovens (X1), at different temperatures (X2), and with different toppings (X3) without running every single combination of the three factors.

DOE - Full Factorial

A form of Design of Experiments that enables operators to observe the changes occurring in the output (Y Response,) of a process while changing more than one input (X Factors). This test highlights shifts in the average response or output associated with multiple factors. It also evaluates how factors in a process might interact. An example would be to test the cycle time (Y) to cook a pizza in different ovens (X1) at different temperatures (X2).

Comparative Analysis

A form of deductive logic that makes an item-by-item comparison using data and facts.

ANOVA

A form of hypothesis testing that determines if there is a significant difference in the means of several different groups.

Alternative Hypothesis

A form of hypothesis that assumes there is a statistically significant difference between two or more data samples.

Brainstorming

A free-thinking group method for generating ideas to handle a challenging situation.

Box Plot (aka Box & Whisker Plot)

A graphical view of a data set which involves a center box containing 50% of the data and "whiskers" which each represent 25% of the data.

Control Plan

A guide to continued monitoring of the process, and the response plan for each of the measures being monitored.

Cockpit Chart (aka Dashboard)

A high level, at-a-glance display of key performance indicators that are regularly monitored.

Dashboard (aka Cockpit Chart)

A high level, at-a-glance display of key performance indicators that are regularly monitored.

One Proportion Test

A hypothesis test that can be used to determine whether a process is performing at the level of an established standard. It provides a way to determine if there is a statistically significant difference between the standard and a particular data set or whether the difference is due to random chance. An example would be testing if a vendor that has guaranteed 48 hour delivery is performing as promised.

Two Proportions Test

A hypothesis test that can be used to determine whether the proportion defective of one strata of a process is statistically different from the proportion defective (or yield) of another strata of a process. It is useful for determining whether a particular strata or group could provide insight into the root cause of process issues. An example would be testing if the product defect rates are truly different for two separate production lines or whether the difference is due to random chance.

One-Way ANOVA

A hypothesis test that determines whether a statistically significant difference (aka variance) exists between the averages of two or more independent sets of normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. An example would be if Assembly Line A products weigh an average of 10.4 pounds, Assembly Line B products weigh an average of 9.2 pounds and Assembly Line C products weigh an average of 11 pounds and you want to determine if any of the 3 lines truly has a different average from the others or if the difference is just due to random chance.

Chi-Square Test

A hypothesis test that determines whether a statistically significant difference (aka variance) exists between two independent groups of discrete data, ruling out chance.

One-Sample T-Test

A hypothesis test that determines whether a statistically significant difference exists between the average of a normally distributed continuous data set and a standard. It provides a way to determine if there is truly a difference between the standard and a particular data set mean or whether the difference is due to random chance. An example would be testing whether a supplier, that has guaranteed an average 12-ounce fill rate on their beverages, is performing as promised.

Two-Sample T-Test

A hypothesis test that determines whether a statistically significant difference exists between the averages of two independent sets of normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. An example would be if Location A has average sales of $3,567 per month whereas Location B has average sales of $3,843 per month and you want to determine if Location B truly has greater averages sales or the difference is just due to random chance.

One-Sample Sign Test

A hypothesis test that determines whether a statistically significant difference exists between the median of a non-normally distributed continuous data set and a standard. It provides a way to determine if there is truly a difference between the standard and a particular data set median or whether the difference is due to random chance. An example would be testing whether a call center, that has guaranteed a median hold-time of 1 minute, is performing as promised.

Mann-Whitney Test

A hypothesis test that determines whether a statistically significant difference exists between the medians of two independent sets of non-normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. An example would be if Pizza Delivery Person A has median delivery time of 15 minutes whereas Pizza Delivery Person B has median delivery time of 17 minutes and you want to determine if Person B is truly slower or if the difference is just due to random chance.

Mood's Median Test

A hypothesis test that determines whether a statistically significant difference exists between the medians of two or more independent sets of non-normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. An example would be if Assembly Line A products have a median production cycle time of 10.3 minutes, Assembly Line B products have a median production cycle time of 9 minutes and Assembly Line C have a median production cycle time of 11.5 minutes and you want to determine if any of the 3 lines truly have different median cycle times from the others or if the difference is just due to random chance.

F-Test (aka Test for Two Variances)

A hypothesis test that determines whether a statistically significant difference exists between the variance of two independent sets of normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. An example would be if Assembly Line A has product weights with a variance of 1 pound whereas Assembly Line B has product weights with a variance of 2 pounds and you want to determine if Line A truly has less variation or the difference is just due to random chance.

Levene's Test

A hypothesis test that determines whether a statistically significant difference exists between the variance of two or more independent sets of non-normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. An example would be if Assembly Line A has cycle times with a variance of 2 minutes where as Assembly Line B has cycle times with a variance of 3 minutes and you want to determine if Line A truly has less variation or if the difference is just due to random chance.

Multiple Regression Test

A hypothesis test that determines whether there is a correlation between two or more values of X and the output, Y, of continuous data. It is useful for determining the level to which changes in Y can be attributable to one or more Xs. It produces a "prediction equation" that estimates the value of Y that can be expected for given values of one or more X values within the range of the data set. An example would be to test if crop yield were correlated to both rainfall and fertilizer amount, and then to calculate approximately how much water and fertilizer are required to achieve the desired yield.

Regression Test

A hypothesis test that determines whether there is a correlation between two paired sets of continuous data. It is useful for determining if changes in Y can be attributable to a particular X. It produces a "prediction equation" that estimates the value of Y that can be expected for any given value of X within the range of the data set. An example would be to test if rainfall and crop yield were correlated and then to calculate approximately how much water is required to achieve the desired yield.

Pilot

A limited test of a Lean Six Sigma solution to a process. Performed during the Improve Phase, it is an opportunity to test Root Cause Hypotheses while minimizing risks and cost.

Wait Time

A measure of the time a unit or service is idle within a process.

Repeatability

A measurement concept where a single individual measures the same results each time. Closely linked with Reproducibility.

Reproducibility

A measurement concept where different individuals measure the same results each time. Closely linked with Repeatability.

Process Capability

A measurement of how well a Process' Outputs meet Customer Requirements.

Sampling

A measurement technique where smaller amounts of representative data can be used to understand the larger population.

Effectiveness

A measurement that refers to how well a process output meets customer requirements.

Survey

A method of collecting data from Customers by asking questions.

Process Walk Board (aka Gemba Board)

A method of collecting process issues and potential countermeasures that have been uncovered by the people working within the process. Once issues are surfaced they can be assigned to a person, a team or they may become the basis of a Rapid Improvement Event (aka Kaizen). They are also known as"Problem Boards," "Waste Boards" or "Idea Boards." The structure can differ but the underlying purpose is to surface and address process problems.

Value Stream Map

A method of mapping that includes data as well as process steps with the goal of identifying waste in the system.

DMADV

A methodology for designing new, non-existing processes. Stands for Define, Measure, Analyze, Design, and Verify.

DMAIC

A methodology for improving existing processes. Stands for Define, Measure, Analyze, Improve, and Control.

Defects per Opportunity (DPO)

A metric that indicates the number of defects in a process per opportunity. Calculated by the number of defects divided by the number of units times the number of opportunities.

Subject Matter Expert

A person who is an expert on a given topic or skill.

Preliminary Plan

A plan that lists goals and milestones for a process improvement project.

Swimlane Map (aka Deployment Map or Cross-Functional Chart)

A process map that separates process steps by function, department or individual. Each lane represents a different department or individual.

Cross Functional Flowchart (aka Deployment or Swimlane Map)

A process map that separates process steps by function, department or individual. This provides a visual that displays not just the steps in a process but also which individuals, group or department performs those steps.

Deployment Map (aka Cross-Functional Flow)

A process map that separates process steps by function, department or individual. This provides a visual that displays not just the steps in a process but also which individuals, group or department performs those steps.

Pareto Chart

A quality chart of discrete data that helps identify the most significant types of defect occurrences.

Statistical Process Control (SPC)

A quality control concept that uses statistical methods to monitor processes and uses Control Charts to gather and analyze data, and helps to determine if processes are "out of control."

Pareto Principle

A quality principle that asserts that the majority of effects come from a minority of causes. AKA the 80/20 rule, 80% of effects come from 20% of causes.

Storyboard

A ready-to-go project overview. They communicate a success story of process improvement projects and highlight the project as an example of real world application of Lean Six Sigma tools.

Input

A resource (product, service, data, labor, etc.) that is added to a Process by a Supplier.

Failure Modes & Effects Analysis (FMEA)

A risk management tool that identifies and quantifies the influence of potential failures in a system.

Process Redesign & Reengineering

A significant reworking of a Process that (optimally) yields significant, measurable improvement in Output. Best described as "wiping the slate clean" to allow for more creative, sweeping changes.

Threats & Opportunities Matrix

A simple 2 x 2 grid that captures the downsides of not implementing a proposed solution and, conversely, the potential upsides if the solution is accepted.

5 Whys

A simple but effective method of analyzing and solving problems by asking "why" five times, or as many times as needed in order to move past symptoms and determine root cause.

Gemba Walk Interview Sheet (aka Process Walk Interview Sheet)

A simple data collection form, designed for transactional processes. It is used to ask pertinent questions during a Gemba or Process Walk.

Process Walk Interview Sheet (aka Gemba Walk Interview Sheet)

A simple data collection form, designed for transactional processes. It is used to ask pertinent questions during a Gemba or Process Walk.

Anderson-Darling Test for Normality (aka Normality Test)

A statistical test that determines whether or not a data set is normally distributed. A normal distribution is often referred to as a "Bell Curve." Whether a distribution is normal or not determines which tests or functions can be used with a particular data set.

Bottleneck

A step in the process where your process is limited in the volume it can handle. It is often the result of specialization, task imbalance or other constraints on capacity.

Process Map

A step-by-step diagram that shows the activities needed to complete a process.

Flow Chart (aka Process Map)

A step-by-step diagram that shows the activities needed to complete a process. Creating this is one of the first steps in a Lean Six Sigma process improvement project.

Process

A stepwise combination of people, tools, materials, and methods where an Input is converted into an Output.

Cause and Effect Diagram

A structured brainstorming tool designed to assist an improvement team in listing potential causes of a specific effect.

Fishbone Diagram

A structured brainstorming tool designed to assist an improvement team in listing potential causes of a specific effect.

Just-In-Time (aka JIT)

A system for producing and delivering the right items, at the right time, in the right place, and in the right amounts. This concept is integral to the idea of a Pull system.

Kano Model

A technique that categorizes customer requirements into three types: 1. Delighters 2. Satisfiers 3. Dissatisfiers.

Customer Value

A term that underlies the fact that the value of any given process step or output is defined by the groups or individuals who receive the the goods and services of the process.

Water Beetle (aka Water Spider)

A term used to describe the person responsible for maintaining correct inventories on the production line so that line employees have no need to stop working.

Tree Diagram

A type of chart where a concept is successively broken down into subconcepts with increasingly higher levels of detail.

Common Cause Variation

A type of variation which is natural and inherent to a process. These causes act randomly and independently of each other, are difficult to eliminate, and often require changes to a process or system.

Rolled Throughout Yield

A type of yield that measures how many units "roll through" a process, first pass, without defects.

Histogram

A visual display of the spread of variation in a process which shows the frequency of each value in the data set.

Multi-Voting

A voting/brainstorming technique that prioritizes ideas.

5S

A workplace organization technique composed of 5 primary phases: Sort, Set In Order, Shine, Standardize, and Sustain

Leader Standard Work (aka LSW)

Actions, behaviors and tools that leaders use to build and sustain a Lean Culture.

Value Enabling Activities

Activities that do not directly add value to a customer, but must be performed to allow Value Adding Activities later on.

Perfection

Aligns with the philosophy that process improvement is never finished. The pursuit of constant updating and improving of all processes.

Standardize (aka Seiketsu)

Also known as "Seiketsu", is the fourth step in the 5S method.

Sort (aka Seiri)

Also known as "Seiri", is the first step in the 5S method.

Shine (aka Seiso)

Also known as "Seiso", is the third step in the 5S method.

Set in Order (aka Seiton)

Also known as "Seiton", is the second step in the 5S method.

Sustain (aka Shitsuke)

Also known as "Shitsuke", is the fifth step in the 5S method.

Andon

An alert system that can be visual or audible, facilitating quick response to any problems in the process or system.

Hypothesis Statement

An educated guess about the suspected cause (or causes) of defects in a process.

Root Cause Hypothesis

An educated guess as to the cause of a problem in a process.

Customer Focus

An emphasis on understanding the needs of those who receive the goods and services of the process.

Measurement Systems Analysis (aka MSA, aka Gage R&R)

An experiment designed to assess various elements of data collection including the procedures of data collection, the measuring device or "gage" being used, the understanding of the operators and any factors that might cause variation. The goal is to reduce defects and variation within the data collection process itself.

Process Walk (aka Gemba Walk)

An informational tour of the area where the work is taking place.

Gemba Walk (aka Process Walk)

An informational tour of the area where the work is taking place. A series of structured, on-site interviews with representative process participants with the goal of gaining a comprehensive understanding of the process.

Facilitator

An intermediary who helps parties involved in a process improvement project collaborate. Can either be a third party or a team member/leader.

Project Charter

An official, basic document that outlines a process improvement project.

External Failure

Any defective item, unit, or output that passes through an entire process and is received by the customer.

Preventative Action

Any action that reduces the likelihood of a problem occurring in a process.

Value Adding Activities

Any activities that add value to the customer and meet the three criteria: 1. The step transforms the item toward completion 2. The step is done right the first time (not a rework step) 3. The customer cares (or would pay) for the step to be done

Process Measures

Any and all measurements of a Process.

Defect Opportunity

Any aspect of a product or service that is critical to the customer. Useful in calculating DPO and DPMO.

To-Be Maps

Display the potential future state of a process after it has been analyzed for waste reduction.

Process Performance Boards

Displays that enable leaders to visually track People, Quality, Delivery, Cost and Process Improvement.

Bartlett's Test

Bartlett's Test is a hypothesis test that determines whether a statistically significant difference exists between the variances of two or more independent sets of normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. An example would be if Assembly Line A product weights have a variance of 1 gram, Assembly Line B product weights have a variance of 2 grams and Assembly Line C product weights have variance of 2.5 grams and you want to determine if any of the 3 lines truly has less/more variation than the others or if the difference is just due to random chance.

Continuous Improvement

Broadly describes ongoing, incremental efforts to make products and processes better.

C Chart

C Charts are Control Charts designed for tracking the count of defects for discrete data in consistently sized sub-groups. A classic example of a C Chart is to track the number of defects per application, which are all 10 pages each.

Scatter Plot

Chart that shows the relationship between two variables (if any). Also known as an XY Plot since the variables are plotted on the X and Y axis.

I & MR Chart (aka X & MR or Chart)

Control Charts designed for tracking single points of continuous data. They consist of two separate charts; "I" stands for the "Individual" Chart which tracks the individual data points (or pre-summarized data) and "MR" stands for "Moving Range" Chart which tracks the absolute value of the distance between each pair of consecutive data points. These are considered the most flexible of the Control Charts and are often used to track business performance data. A classic example is to track daily total sales.

X-Bar & S Charts

Control Charts designed for tracking the average of large sub-groups of continuous data. They consist of two separate charts; "X-Bar" stands for the "Average" Chart which tracks the mean of sub-groups of 6 or more data points and "S" stands for the "Standard Deviation" Chart which calculates the standard deviation within each subgroup. These charts are useful for detecting shifts in the "center" or average with large subgroups. A classic example is to track the food order cycle time to deliver packages by sampling 10 orders per day.

X-Bar & R Chart

Control Charts designed for tracking the average of sub-grouped continuous data. They consist of two separate charts; "X-Bar" stands for the "Average" Chart which tracks the mean of sub-groups of up to 6 data points and "R" stands for "Range" Chart which tracks the difference between the maximum and minimum values in the subgroup. These charts are not as sensitive to non-normal data as the I & MR Charts. A classic example is to track the average cycle time to deliver packages by sampling 5 packages per day.

U Chart

Control Charts designed for tracking the number of defects per unit for discrete data. A classic example is to track the number of scratches on new smart phone cases at a manufacturing facility.

P Chart

Control Charts designed for tracking the proportion defective for discrete data.These charts require both the total population as well as the count of defective units in order to plot the proportion. A classic example is to track the proportion of defective products returned each month.

Huddle Meeting

Daily meeting that is approximately 15 minutes long with direct reports.

Stratification

Data analysis technique where values are grouped into different layers (i.e., "strata") in order to better understand data.

Baseline Measures

Data that establishes the current or initial conditions in a process improvement project, prior to the application of solutions.

Voice of the Customer (VOC)

Data that represents the needs and wants of your customers.

8 Wastes (aka Muda)

Defects, Overproduction, Waiting, Non-Utilized Talent, Transportation, Inventory, Motion, and Extra-Processing are a list of the most common reasons for excess cycle time in a process.

Operational Definition

Describe the terms used within measures such as "accurate" or "complete" and if it's a time-based measure, they include the stop and start points.

Variation

Describes how consistent a process' output is.

Quality

Describes how well a process consistently meets customer requirements.

Stakeholder Analysis

Enables you to outline and understand who has a vested interest in how a process performs.

Focus Groups

Facilitated discussion sessions comprised of customers that help an organization understand the Voice of the Customer (VOC). Typically 1-3 hour sessions with no more than 20 customers.

Spaghetti Chart

Graphical tool used to track the movement of people and distances travelled in a work process. This tool tracks movement in office spaces as well as manufacturing shop floors.

Future State Map

Guide to the goal state of the process. This is generally projected out at 4 to 8 months from the Current State Map and provides a visual of how the process will flow when all identified forms of waste are removed and the process is streamlined.

Juran's Trilogy

He clarified his concepts around quality by separating it into 3 distinct efforts: 1) Quality Planning: Engaging in upfront planning to produce the products and services that customers want 2) Quality Control: Evaluating how well the products and services meet customer expectations and measuring the gaps between performance and goals 3) Quality Improvement: Identifying the projects that will bridge any quality gaps and then training process improvement teams to tackle the projects.

Project Selection Tool

Helps you determine which projects are good Lean Six Sigma projects based on the impact they may have on customers, what the potential time savings are, what the potential cost savings are, and how manageable the projects are.

SIPOC

High-level view of a process. It stands for Suppliers, Inputs, Process, Outputs, and Customers and is ordered from start to finish.

PMO aka Project Managment Office

In any organization this is the leadership team dedicated to monitoring key process performance metrics in order to develop a process improvement strategy. This group selects and assigns projects based on the health of core processes along with the needs of customers which ensures that the organization focuses its resources wisely.

Kaizen Event (aka Rapid Improvement Event)

In practice, generally spans from 1 to 5 days and involves key process participants focusing on solving a narrowly scoped process improvement opportunity.

Rapid Improvement Event (aka Kaizen Event)

In practice, generally spans from 1 to 5 days and involves key process participants focusing on solving a narrowly scoped process improvement opportunity.

Waiting

It happens internally when one colleague is idle because they are unable to proceed with a process step until another colleague or department provides the necessary parts or information in order to continue. One of the 8 Wastes.

Cross Training

Instructing employees in how to perform different tasks outside of their original roles.

Workload Balancing

Involves adjusting the work rate between sub-processes in order to efficiently match customer demand or takt time.

Value Analysis

Involves assessing each process step through the eyes of the customer and determining whether the step is a Value Adding Activity (VA), a Non-Value Adding Activity (NVA) or a Value Enabling Activity (VE).

Demand Leveling

Involves using external techniques to remove the variation when there are big swings in the volume of customer demand.

Proportion Defective

Is the fraction of units that contain defects and a percentage value.

R&R

It refers to repeatability and reproducibility within a Measurement Systems Analysis. Repeatability refers to one person measuring the same unit more than once and observing the variation in values. Reproducibility refers to multiple people measuring the same unit and observe the variation in values for that unit.

Quick Win

It's a "Just-Do-It" project that involves the implementation of a simple solution to a known problem. This type of effort addresses a known root cause and is generally contained within one department or workspace.

PDCA (aka Plan Do Check Adjust)

It's a method developed by Dr. Deming that favors trial and error over extensive planning and trying for perfection up front with the assumption the each test allows for essential fine tuning.

Muda (aka Waste)

Japanese term for "waste" which refers to anything in a process that does not add value from the customer's perspective.

Poka Yoke (aka Mistake Proofing)

Japanese term that means to mistake-proof a process.

Kanban (aka signboard)

Japanese term that translates to "card" or "board" and indicates some form of signal within a process. Part of Just In Time (JIT) processing where either a physical or electronic device indicates that it's time to order inventory, process a unit or move to the next step in a process.

Seiton (aka Set in Order)

Japanese word for "Set In Order" which is the second step in the 5S method.

Seiso (aka Shine)

Japanese word for "Shine" which is the third step in the 5S method.

Seiri (aka Sort)

Japanese word for "Sort" which is the first step in the 5S method.

Seiketsu (aka Standardize)

Japanese word for "Standardize" which is the fourth step in the 5S method.

Shitsuke (aka Sustain)

Japanese word for "Sustain" which is the fifth step in the 5S method.

Null Hypothesis

Known as H₀, is the hypothesis statement that maintains there is no difference between two or more data samples.

RACI

Matrix that outlines different levels of accountability and responsibility as related to an action item list.

Process Time

Measure of the time a product is actually being worked on in a machine or by an employee in a work area.

Historical Parameters, Maintaining

Measurements that refer to baseline data. With Control Charts these are often used in order to display the original center line along with the Upper and Lower Control Limits. The idea is to maintain these parameters until the process has been changed. Once an improvement has been made, the process can be tracked until it's possible to calculate new parameters from the data.

Efficiency

Measures the amount of resources used in maximizing the output of a process.

Work Cell Design

Method of organizing physical operations in the most efficient combination to maximize value added steps and to minimize waste.

Defects per Million Opportunities (DPMO)

Metric that indicates the number of defects in a process per one million opportunities. Is calculated by the number of defects divided by (the number of units times the number of opportunities), multiplied by one million.

Input Measures

Metrics that assess the units coming into a process.

Process Capability Indicators

Metrics that indicate how closely process outputs align within customer specifications when using continuous data (time, weight, volume, etc).

Output Measures

Metrics that that assess the units coming out of a process.

A3

On a literal level, refers to a ledger size piece of paper, but in the Lean world it is a one page project report. This one-pager contains the problem, the analysis of the process, the identified root causes, potential solutions and action plan all on a large sheet of paper.

Process Management

Ongoing, high-level monitoring of processes. Uses important key measures that provide feedback about the overall "state" of a process.

Affinity Chart (aka Affinity Diagram)

Organizes a large amount of data according to their natural relationships.

Contingent Actions

Pre-planned steps scheduled to go into effect when defects or failures occur. They are designed to minimize damage and cost due to failures.

Six Sigma

Process improvement strategy that improves Output quality by reducing Defects. It is named after a statistical concept where a process only produces 3.4 defects per million opportunities (DPMO).

Overproduction

Producing something faster or in more abundance than needed. One of the 8 Wastes.

New Procedure Audit

Provides an easy way to check for adaptation to the new way of doing things once a project is successfully completed.

Non-Value Adding Activities

Refer to process steps that fail to meet one or more of the following criteria: -The step transforms the item toward completion (something changes) -The step is done right the first time (not a rework step) -The customer cares (or would pay) for the step to be done

Supermarket

Refers to a visual stocking system used in tandem with Kanban or reorder signals in a Pull system.

Internal Failure

Refers to any defects in a process that are identified and eliminated before being delivered to the customer.

Downstream

Refers to any processes or activities that occur after a given process.

Upstream

Refers to any processes or activities that occur before a given process. The opposite of Downstream.

Attribute Data

Refers to categories or counts that can only be described in whole numbers; i.e. you can't have half a defect or half a customer. This type of data is the opposite of continuous or variable data (temperature, weight, distance, etc.).

Discrete Data (aka Attribute Data)

Refers to categories or counts that can only be described in whole numbers; i.e. you can't have half a defect or half a customer. This type of data is the opposite of continuous or variable data (temperature, weight, distance, etc.).

Continuous Data (aka Variable Data)

Refers to data that is measured on a continuum. It is data that is measured on an infinitely divisible scale (e.g., time, weight, and temperature) such that one half a unit still makes sense; half a minute, half a pound, etc.

Lean Culture

Refers to the combination of defining customer value, aligning around a common purpose, striving for perfection while at the same time respecting and developing employees. The idea is that there is more to process improvement than using a set of tools and concepts. The idea is that the people who do the work should be the ones who fix the processes. Results when in the quest to provide customer value, the leadership supports and promotes the building of the "problem solving muscle" of the workforce.

Extra-Processing

Refers to the concept of adding more features or producing a product or service of higher quality than required by the customer. One of the 8 Wastes.

Transportation (aka Touches)

Refers to the concept of the moves or "touches" to a unit or product as it flows through a process. One of the 8 Wastes.

Non-Utilized Talent

Refers to the concept that employees are not being utilized to their full capability or, conversely that they are engaged in tasks that would be more efficiently done by someone else. One of the 8 Wastes.

Process Improvement

Refers to the continuous, gradual reduction of defects, errors, costs, and wasted time in a process.

Standard Work

Refers to the goal of eliminating the variation in how a process or process step is completed.

Motion

Refers to the movement of employees involved in a given task. One of the 8 Wastes.

Special Cause Variation

Refers to variation in a process which is sporadic and non-random.

Leader Huddle Meetings

Regular (often daily) meeting with direct reports. Conducted in front of the Process Performance Boards in order to work from a visual of organizational metrics.

Sampling Calculations (aka Sample Size Calculation)

Sampling calculations are the formulas involved in Sampling that take into account a number of considerations including, the standard deviation of continuous data, the proportion defective of discrete data, the desired precision of the sample and the confidence level appropriate for the data being sampled. The goal of the sampling calculation is to determine the least amount of units that need to be sampled while still reflecting the entire population.

Green Belt

Six Sigma practitioner trained in DMAIC. They assist Black Belts and Master Black Belts in process improvement projects.

Goal Statement

States the desired results of a process improvement project. It is a fundamental part of any Project Charter.

Lean

Systematic method for the elimination of waste from a process with the goal of providing what is of value to the customer. Much of what constitutes this method stems from tools developed at Toyota while creating the Toyota Production System.

Defective

Term applied to any process, product, or service with one or more defects.

Central Tendency

The "center point" of a process distribution.

Gemba Board (aka Process Walk Board)

The Gemba Board is a method of collecting process issues and potential countermeasures that have been uncovered by the people working within the process. Once issues are surfaced they can be assigned to a person, a team or they may become the basis of a Rapid Improvement Event (aka Kaizen). Gemba Boards are also known and "Problem Boards," "Waste Boards" or "Idea Boards." The structure can differ but the underlying purpose is to surface and address process problems.

Single-Piece-Flow

The concept that products should flow from operation to operation in the smallest increment, with one piece being the ideal.

Documention

The deliberate preservation of process improvement work.

Define Phase

The first phase of the DMAIC method which involves defining the problem or opportunity, determining the voice of the customer/customer requirements, and outlining the project purpose/scope.

Improve Phase

The fourth phase of the DMAIC process that focuses on identifying opportunities and implementing solutions.

Customer

The groups or individuals who receive the goods and services of of the process.

Master Black Belt

The highest level of training for a Six Sigma practitioner. Not only do they guide improvement teams, but are responsible for identifying improvement projects.

Flow

The ideal state of processes such that units and services move through each process step at the rate of customer demand.

Control Phase

The last phase of DMAIC which ensures that improved processes continue to work predictably and meet the customers' expectations. In short, this phase ensures any gains are maintained.

Inventory

The materials, parts, or units sitting unused in a process.

Lead Time

The measure of the cycle time from the moment a customer places an order to the moment they receive the desired goods or services.

Changeover Time

The measurement of the cycle time from the moment the last good part of the previous process is produced to the moment first good part of the subsequent process is produced.

Cycle Time

The measurement of the time elapsed from the beginning of a process or a step to its end.

Customer Requirements

The needs and expectations of the customer, discovered through a measurable, data-driven ("hard evidence") approach.

Data Analysis

The practice of both determining how to display data and then interpreting the resulting data displays.

Line Balancing

The practice of dividing work in a process in such a way as to produce an equal cycle time for each step or member of a process.

SMED (aka Single Minute Exchange of Die)

The practice of dramatically reducing or eliminating the time to change from one method or unit to another where the goal is to reduce the changeover time to single digits or under 10 minutes.

Changeover Reduction

The practice of dramatically reducing or eliminating the time to change from one method or unit to another.

Setup Reduction

The practice of dramatically reducing or eliminating the time to change from one method or unit to another.

Visual Management

The practice of making it easy to see how a process flows and what to do at each step.

Batching

The practice of making large lots of a particular item to gain economic efficiencies.

Sampling Bias

The result of sampling based on some preconceived judgement or convenience.

Black Belt

The second highest level of training for a Six Sigma practitioner. This role devotes 100% of their time to Six Sigma and focuses the execution of specific Six Sigma process improvement projects.

Measure Phase

The second phase of the DMAIC process.

Institutionalization

The set of changes to an organization that make any process improvement permanent. These changes not only include procedural ones, but cultural (employee attitude and behavior) changes as well.

DOE - One Factor At A Time (aka OFAT)

The simplest form of a Design of Experiments that enables operators to observe the changes occurring in the output (Y Response,) of a process while changing one input (X Factor). An example would be to test the cycle time (Y) to cook a pizza in one oven as a result of altering the temperature (X) in that oven.

Time Analysis

The study of how long each step in a process takes.

Analyze Phase

The third phase of the DMAIC process focuses on identifying the root cause (or causes) of a process problem.

Solution Parking Lot

These are lists of improvement ideas collected throughout the life of a project. They provide a good way to honor and encourage the good ideas of team members and stakeholders before the root causes have been established. Although many will become obsolete, the list provides valuable input for eventual solutions developed during the Improve Phase.

Project Scope (aka Scope)

This has two basic components. The most important is the beginning and end of the process being addressed - the ""Start"" and ""Stop"" points - which is most often outlined in the SIPOC. The second part addresses what's ""In"" versus what's ""Out"" in terms of the team's responsibility. This clarifies what's being addressed versus what's off limits. This is part of the Define phase in DMAIC and is included in the Project Charter.

Crosby's 14 Steps to Quality Improvement

These are quality guru Philip Crosby's recipe for long-term process improvement. His opinion was that these steps were the responsibility of management but involved the people who did the work. These steps provided guidelines as well as a method for communicating his Four Absolutes. The 14 Steps to Quality Improvement: Step 1: Management Commitment Step 2: Quality Improvement Team Step 3: Quality Measurement Step 4: Cost of Quality Evaluation Step 5: Quality Awareness Step 6: Corrective Action Step 7: Establish an Ad Hoc Committee for the Zero Defects Program Step 8: Supervisor Training Step 9: Zero Defects Day Step 10: Goal Setting Step 11: Error Cause Removal Step 12: Recognition Step 13: Quality Councils Step 14: Do It Over Again

The Four Absolutes of Quality

These were developed by quality guru Philip Crosby as a way to promote the idea increased quality did not mean increased cost. Quality and cost were not in competition which he expanded on in his best-seller, "Quality Is Free." The Four Absolutes: 1. Quality is defined as conformance to requirements 2. The system for causing quality is prevention, not appraisal 3. The performance standard must be Zero Defects 4. The measurement of quality is the Price of Nonconformance

Quality Circles

These were invented by Dr. Ishikawa as a way to empower workers to enhance product design, make the workplace safer and improve the processes they worked on. Led by a trained facilitators, these work groups grew into what are now known as modern day Rapid Improvement Events, also known as Kaizens.

Taguchi Methods

They are a 3-pronged quality approach developed by the Japanese statistician Genichi Taguchi. By focusing on 1) better design ideas 2) rigorous testing of the design, and 3) reducing the impact of anything that would cause variation. His goal was to create a more robust product prior to full scale production. They are aimed to deliver exactly what the customer wanted by reducing variation and lowering costs in the process.

Process Partners

They are entities, agencies or departments that work together to provide a product or service to a customer. They can be organizations that are upstream or downstream from the process in question. They are in the process collaborating with others to deliver the end product or service to the customer. They provide information, do the work and produce documents or materials that eventually reach the customers. They might think they are the customer of another unit or agency.

Spaghetti Map

This allows users to document the setup of any work area with the goal of mapping the movement of individuals during the completion of a specific process. This template enables the documentation of the movement, the distance travelled as well as the time it takes to walk that distance during the completion of manufacturing as well as transactional processes. This tool gets its name from the tendency of a finished diagram to resemble cooked spaghetti.

TOC (aka Theory of Constraints)

This boils down to the idea that a process is only as good as its weakest link - and the weak links are bottlenecks. This idea was developed by Eliyahu Goldratt and made famous in his book, "The Goal", a novel based on a production plant. Once the major bottleneck is discovered, the idea is to reduce or eliminate it knowing that another, lesser bottleneck will emerge in its place. This systematic approach to rapid improvement states that only by systematically addressing each successively smaller bottleneck will the company reach its financial goal.

Theory of Constraints (aka TOC)

This boils down to the idea that a process is only as good as its weakest link - and the weak links are bottlenecks. This idea was developed by Eliyahu Goldratt and made famous in his book, "The Goal", a novel based on a production plant. Once the major bottleneck is discovered, the idea is to reduce or eliminate it knowing that another, lesser bottleneck will emerge in its place. This systematic approach to rapid improvement states that only by systematically addressing each successively smaller bottleneck will the company reach its financial goal.

Process Voices

This captures the different, and often competing, requirements of any given process. This template enables understanding of the requirements of the business, the requirements of the customer, the requirements of employees and the requirements of the process itself. Understanding the needs and objectives of each of these critical groups encourages a balanced approach to process improvement.

Process Voices

This captures the four distinct "voices" for any given process. The Voice of the Business reflects the needs of management. The Voice of the Employee relays what it feels like to work within the process. The Voice of the Customer details the needs of the end user and the Voice of the Process lists the waste, rework and other observed process issues. This matrix provides a quick view of the mix of perspectives on any given process.

Jidoka (aka Autonomation)

This describes a brand of automation where a machine stops itself if there is an abnormal situation. This technique was invented by Sakichi Toyoda back in the 1896 so that his power loom invention would stop and and allow workers to intervene and fix the issues. The 4 steps in Jidoka are: 1. Detect the abnormality 2. Stop the machine 3. Fix what is wrong 4. Find and solve the root cause It is considered one of the pillars of the Toyota Production System.

Infrastructure Project

This establishes key measurement systems with the goal of monitoring both Voice of the Customer as well as process capability. This is also referred to as Process Management and helps organizations focus improvement efforts.

Parallel Processing

This indicates that two separate activities are taking place at the same time. This is a common improvement technique used to reduce the overall cycle time of any given process. This is the opposite of linear or serial processing.

Project Selection

This involves determining which process issue would make a good Lean Six Sigma project. Selection is based on the impact it could have on customer satisfaction, potential time savings, potential cost savings and how manageable the effort would be while still aligning with organizational strategy.

Design Project

This involves the creation of a non-existent process and requires extensive benchmarking and collection of the Voice of the Customer. These projects are addressed by DFSS (Design for Six Sigma) or DMADV (Define, Measure, Analyze, Design & Verify).

Process Redesign

This involves the overhaul of a current, non-capable process where incremental improvement would still fail to meet customer requirements. This is also referred to as Reengineering.

Range

This is a data set that is determined by subtracting the lowest value or minimum from the highest value or maximum. This is a measure of "spread" in any data set.

Gallery Walk

This is a formal showcase for successful Lean Six Sigma Projects. Improvement teams create storyboards, posters, charts and graphs to demonstrate process gains to a larger audience. These events educate leadership and the broader organization while building momentum and reinforcing the problem-solving culture.

TPS (aka Toyota Production System)

This is a framework for conserving resources by eliminating waste, is considered the precursor to Lean Manufacturing. The two main concepts that drive "The Toyota Way" are Just-in-Time; only producing what is needed and not storing excess inventory and Jidoka; getting to immediate root cause when production runs into problems. This powerful combination is only possible by trusting and empowering employees to participate in the system.

Toyota Production System (aka TPS)

This is a framework for conserving resources by eliminating waste, is considered the precursor to Lean Manufacturing. The two main concepts that drive "The Toyota Way" are Just-in-Time; only producing what is needed and not storing excess inventory and Jidoka; getting to immediate root cause when production runs into problems. This powerful combination is only possible by trusting and empowering employees to participate in the system.

Zero Defects

This is a goal coined by quality guru Philip Crosby which challenged management to commit time and effort to doing things right the first time. This type of goal worked against the conventional wisdom that human error was inevitable.

Run Chart (aka Time Series Plot)

This is a graph that displays data in sequence over time. This kind of chart can display continuous or discrete data and generally appears with a median or average line.

Time Series Plot (aka Run Chart)

This is a graph that displays data in sequence over time. This kind of chart can display continuous or discrete data and generally appears with a median or average line.

Red Tag

This is a labeling tool used in the Sort Phase of a 5S as employees try to determine what's necessary in a given workspace. They place questionable items into a holding area and attach this labeling tool to each item. The information on this can vary, but the goal is to determine if any one thinks the item is necessary and, if so, in what quantity. Items are "labeled with this tool" for a limited period of time and then given away, sold or recycled resulting in a less cluttered and more organized work area.

Yield

This is a measure of the percent of "good" units coming out of a process. This could refer to the percent of completed sales, the percent of good products or the percent of completed applications. It is the opposite of Proportion Defective.

Plus/Delta

This is a method of gathering immediate feedback from participants of a meeting, workshop or other event. Participants are asked to list what went well as well as suggestions they have for what to change for the next iteration. This is generally captured in two columns on a flip chart by a scribe or by participants writing each on a sticky note.

Zero Quality Control

This is a method, popularized by the quality guru Shigeo Shingo, that proposes removing the need for inspection by eliminating the possibility of human error. Mr. Shingo was a proponent of Poka Yoke or Mistake Proofing processes which is a key component to removing the need for inspection. The idea is that by removing the root causes of errors, it is possible to achieve zero defects.

Balanced Scorecard

This is a one-page graphical display of key metrics using charts, graphs and informational color coding. The Scorecard is a type of organizational Dashboard where traditional financial metrics are balanced with measures of employee engagement, operational capability as well as customer satisfaction. The words "Dashboard" and "Scorecard" are often used interchangeably but Dashboards are more commonly associated with graphical displays of measures for a specific process or one quadrant of this.

Waste Walk

This is a planned visit to a workspace to observe and identify any of the 8 Wastes (Defects, Overproduction, Waiting, Non-Utilization of Talent, Transportation, Inventory, Motion and Extra-Processing).

Scientific Method

This is a process of research where a problem is identified, relevant data is gathered, a hypothesis is formed based on the collected data and the hypothesis is tested. If the theory proves to be false the cycle repeats. This method is the foundation for both continuous improvement methods PDCA (Plan-Do-Check-Act) and DMAIC (Define, Measure, Analyze, Improve and Control) with the addition of countermeasures to improve the designated process.

Quartile

This is a quarter of a data set. People divide data sets into this in order to study things like the lowest performing 25% of a workforce, or the top 25% turn around times for shipping. The Box Plot is a great visual that makes use of this.

Action Plan

This is a simple way of tracking the "who, what and when" of tasks and decisions involved in supporting any project, implementation or initiative. This enables a group to document who has been assigned to do each task and when each task is expected to be completed.

Team Alignment Diagnostic

This is a template that guides a process improvement team in assessing how well they are working toward their purpose. The process is to assess team dynamics and then look to goals, roles and procedures to find the root cause of any misalignment. This allows a team to self-correct and perform at its best.

Hidden Plant

This is a term coined by Quality guru Armand Feigenbaum to point out the often un-tracked waste of rework. He discovered that up to 40% of the capacity at a typical manufacturing plant was spent on fixing what was not done right the first time.

Data Collection Plan

This is a well thought out approach to data collection that includes information around where to collect data, how to collect it, when to collect it and who is responsible.

Design of Experiments (aka DOE)

This is an active method of manipulating a process as opposed to passively observing a process and enables operators to evaluate the changes occurring in the output (Y Response,) of a process while changing one or more inputs (X Factors).

Catchball

This is an approach, inspired by Hoshin Kanri, designed to incorporate feedback from employees when determining organizational direction. It's often used when developing things like mission statements and goals with the expectation that leadership and employees "toss" and "catch" each other's ideas and collaborate on the end result.

Process Improvement Project

This is an effort to incrementally reduce cost, cycle time, variation or defects within a process. These efforts involve a problem where the root cause and solution are unknown. These efforts can be addressed by DMAIC (Define, Measure, Analyze, Improve & Control) or PDCA (Plan, Do, Check, Adjust) improvement methods.

Taguchi Loss Function

This is an equation that measures the "loss" experienced by customers as a function of how much a product varied from what the customer found useful. His idea rocked the quality world because the common wisdom held that when products met internal measures they were "good" and if they fell outside the limits they were "defects." Taguchi looked at variation from the eyes of the customer and decided to grade on a curve.

Countermeasure

This is any action taken to offset or neutralize another action. These differ from solutions because they suggest precise, tactical ongoing trial and error as opposed to a one-time, permanent fix. If this is determined to be ineffective, another one can be developed and tested. These are developed once a root cause has been verified.

Mean (aka Average)

This is one of the measures of "central tendency" in a data set. To calculate this is to determine sum of a list of numbers and then divide the sum by the number of numbers in the list. These don't take process variation into consideration.

Champion aka Sponsor

This is someone in a leadership position who helps a Green Belt or a Black Belt secure resources and overcome departmental barriers in pursuit of project goals. This person has "skin in the game", cares about the process being improved, and regularly meets with and supports team leads.

Sponsor aka Champion

This is someone in a leadership position who helps a Green Belt or a Black Belt secure resources and overcome departmental barriers in pursuit of project goals. This person has "skin in the game", cares about the process being improved, and regularly meets with and supports team leads.

Project Y

This is the main measure of a process improvement project. If the goal of a project is to reduce the number of days it take from when a customer places an order to the time they receive their goods or services, then this is "Days of Order Lead Time."

Median

This is the middlemost point in a data set. It divides a data set in half by separating the lowest 50% of the values from the highest 50%. It is one of the measures of "central tendency" in a data set.

Mode

This is the most frequently occurring value in a given data set. In a Histogram it appears as the tallest bar. This is a measure of "central tendency" in a data set.

Yellow Belt

This is the name for Lean Six Sigma novice. This is someone who has had enough process improvement training that they have a grasp of the vocabulary and could participate on an improvement team if asked. Their education is often supplemented with Just-In-Time training from Green Belts and Black Belts and they are able to spot and submit improvement opportunities within their work processes.

Lean Six Sigma

This is the name given to the combination of the top two process improvement methods, Lean and Six Sigma. Lean traditionally focuses on removing waste from the system with the objective of a streamlined process. Six Sigma focuses on reducing variation in the system with the focus on increasing predictability. Both models focus on the satisfying the needs of the customer by incrementally improving processes. The combination follows the DMAIC (Define, Measure, Analyze, Improve and Control) model and combines the best tools and concepts of both Lean and Six Sigma.

White Belt

This is the name of the beginner role within Lean Six Sigma. This is someone who has had an overview of DMAIC, the reasons to use it, how to use it, the roles within it and some basic concepts like the 8 Wastes.

Project Closure

This is the wrap up of all the good that came of an improvement project. This is where a team notes their lessons learned, hard and soft savings and whether the Process Owner is prepared to monitor and maintain the updated process.

Autonomation (aka Jidoka)

This is where a machine stops itself if there is an abnormal situation. This technique was invented by Sakichi Toyoda back in the 1896 so that his power loom invention would stop and and allow workers to intervene and fix the issues. The 4 steps in Jidoka are: 1. Detect the abnormality 2. Stop the machine 3. Fix what is wrong 4. Find and solve the root cause It is considered one of the pillars of the Toyota Production System.

Hoshin Kanri

This means "compass needle" and "management," it is a process of setting strategic goals and then working collectively at all levels to reach the agreed-upon goals. This is an element of Total Quality Control (TQC) outlined by quality guru Kaoru Ishikawa which promotes delegation of authority as a way of respecting the entire workforce.

Y=f(x)

This means that the Project Y is impacted by factors, x's, within the process and inputs to the process. This semi-equation is helpful as a way of framing root cause analysis. Once the Project Y is selected, the goal is to understand the major factors, x's, and make changes to those elements to improve the Y.

System of Profound Knowledge

This outlines Dr. W. Edwards Deming's philosophy based on the view that all elements of an organization should work in concert together as an interdependent system. The four elements lay out a framework for managers to reduce costs while increasing quality, customer loyalty, worker satisfaction and, ultimately, profitability. Below are the four key parts: 1. Appreciation for a System 2. Knowledge of Variation 3. Theory of Knowledge 4. Psychology of Change

Process Owner

This person is in charge of the improved Lean Six Sigma process. They are the people responsible for maintaining the process once it has been streamlined by a continuous improvement team. Their participation is essential to ensuring the ongoing monitoring and success of the process.

Cost of Poor Quality (COPQ)

This quantifies the negative outcomes due to waste, inefficiencies and defects in a process. Quality great Joseph Juran separated these costs into 3 categories: 1) Prevention Costs: Including quality planning, training, preventive maintenance, housekeeping etc. 2) Appraisal Costs: Including testing, inspection, audits, reviews and surveys, etc. 3) Failure Costs: - Internal Failures: Including scrap, rework, expediting, equipment downtime, injuries, etc. - External Failures: Including product recalls, returned products, complaint handling, lost sales, etc. This is often represented as a dollar amount (or as a percentage of sales) and is composed of the categories listed above. The goal of any organization is to reduce this to zero."

Work-In-Process (aka WIP)

This refers to the number of items currently waiting to be worked on in a process. This can refer to the number of items in an inbox or queue. Often referred to as "inventory" in manufacturing processes.

Percent Complete & Accurate

This refers to the percent of time units are received in finished and correct form according to the requirements of the customer of the process.

Seven Basic Quality Tools

This represents a list of basic process improvement tools and techniques. The list is generally attributed to Kaoru Ishikawa, a follower of Dr. Edwards Deming, who is also famous for popularizing the Fishbone or Ishikawa Diagram. In an effort to reduce the complexity of Statistical Process Control, and make it more accessible for the average worker, he compiled a shortlist of simple but powerful Lean Six Sigma tools. The list includes: 1. Cause & Effect Diagram (aka Fishbone Diagram) 2. Checksheet 3. Control Chart 4. Histogram 5. Pareto Chart 6. Scatter Diagram (aka Scatter Plot) 7. Stratification (often replaced with Flow Chart)

P-Value

This stands for "probability" which translates to "likelihood." It indicates how likely it is that something has happened to to random chance. As an example, say someone conducts a hypothesis test to see if a process has truly improved. If this resulting is less than .05 then there is a less than 5% likelihood that the difference in the process is due to random chance. This means there's a 95% likelihood that the process has truly improved.

Response Plan

This type of plan for a process establishes, for each measure being monitored, a threshold or trigger level for that process measure.

The 14 Points for the Transformation of Management

This was Dr. W. Edwards Deming's guide for organizational leadership to better use their role to improve the effectiveness of any organization. These come from Dr. Deming's book, "Out of the Crisis" 1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities and take on leadership for change 3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. 4. End the practice of awarding business on the basis of price tab. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. 8. Drive out fear, so that everyone may work effectively for the company. 9. Break down barriers between departments. People in research, design, sales and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. - Eliminate work standards (quotas) on the factory floor. Substitute leadership - Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership 11. Remove barriers that rob the hourly worker of their right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. 12. Remove barriers that rob people in management and engineering to their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objectives. 13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

Total Quality Control (aka TQC)

This was a concept created by quality guru Armand Feigenbaum in the 1950s. He maintained that Quality was not just the job of engineers or confined to production. Rather, this holds that every part of the company has to work in a coordinated way to serve the user or customer.

TQC (aka Total Quality Control)

This was a concept created by quality guru Armand Feigenbaum in the 1950s. He maintained that Quality was not just the job of engineers or confined to production. TQC holds that every part of the company has to work in a coordinated way to serve the user or customer.

Total Quality Management (aka TQM)

This was an organizational approach developed in the late 80's to create a culture of continuous improvement by focusing on customer satisfaction. The idea was that all levels and all members of an organization are responsible for improving the products, services and culture. Both Lean and Six Sigma build on the successes of TQM.

Control Chart

Time charts designed to display signals or warnings of special cause variation.

Mistake Proofing (aka Poka Yoke)

To consciously and diligently try to eliminate defects by preventing human errors before they occur or create alarms to warn of potential defects.

VOC Translation Matrix

Tool that helps teams take customer comments, determine the underlying issues represented by those comments and use this information to develop measurable customer requirements.

Efficiency & Effectiveness Matrix

Tool used to balance the types of measurement applied to a process. This matrix facilitates the listing of all proposed measurement in order to uncover any imbalances in the Data Collection Plan.

Leader Task Boards

Visual check system to review critical workplace items. It's comprised of a list of tasks related to safety, quality, production, cost, Leader Standard Work and daily management.

Task Board

Visual management tool that can help identify if action items have been completed by turning cards from red to green.

Shadow Boards

Visual methods of storing tools or materials which are always placed where the work is being done.

Moment of Truth

When a customer interacts with a process and forms an opinion (positive, negative, or indifferent) about that process.

Handoff

When a product or item passes between individuals or departments.

Leader Process Walks

When leaders go to where the work actually occurs to observe the process.

Redundancy

When the same steps are done more than once in a process.

nP Chart

nP Charts are Control Charts designed for tracking the number of defective items for discrete data in consistently sized sub-groups. A classic example an nP Chart is to track the number of defective products per lot shipped where the lot size was constant.