Term
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Definition
The three Ps stand for People, Product and Process. When implementing TQM, all three parameters should be improved.
1. People: Satisfaction of both internal and external customers.
2. Product: Conforming to the requirements specified.
3. Process: Continuous improvement of all the operations and activities is at the heart of TQM. |
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Term
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Definition
| The 5 why’s typically refers to the practice of asking, five times, why the failure has occurred in order to get to the root cause/causes of the problem. There can be more than one cause to a problem as well. In an organizational context, generally root cause analysis is carried out by a team of persons related to the problem. No special technique is required. |
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Term
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Definition
The traditional 6Ms are:
* Machines
* Methods
* Materials
* Measurements
* Mother Nature (Environment)
* Manpower (People) |
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Term
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Definition
Histograms
Cause and Effect Diagram
Check Sheets
Pareto Diagrams
Graphs
Control Charts
Scatter Diagrams |
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Term
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Definition
The 7 wastes are at the root of all unprofitable activity within your organization.
The 7 wastes consist of:
1. Defects
2. Overproduction
3. Transportation
4. Waiting
5. Inventory
6. Motion
7. Processing |
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Term
| Acceptable Quality Level – AQL |
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Definition
| Also referred to as Assured Quality Level. The largest quantity of defectives in a certain sample size that can make the lot definitely acceptable; Customer will definitely prefer the zero defect products or services and will ultimately establish the acceptable level of quality. Competition however, will ‘educate’ the customer and establish the customer’s values. There is only one ideal acceptable quality level – zero defects – all others are compromises based upon acceptable business, financial and safety levels. |
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Term
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Definition
An employee of an organization who has been trained on the improvement methodology of Six Sigma and will lead a process improvement or quality improvement team as *part* of their full time job. Their degree of knowledge and skills associated with Six Sigma is less than that of a Black Belt or Master Black Belt. Extensive product knowledge in their company is a must in their task of process improvement.
The green belt employee plays an important role in executing the Six Sigma process at an organization level. |
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Term
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Definition
A tool used to organize and present large amounts of data (ideas, issues, solutions, problems) into logical categories based on user perceived relationships and conceptual frameworking.
Often used in form of “sticky notes” send up to front of room in brainstorming exercises, then grouped by facilitator and workers. Final diagram shows relationship between the issue and the category. Then categories are ranked, and duplicate issues are combined to make a simpler overview. |
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Term
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Definition
Alpha risk is defined as the risk of rejecting the Null hypothesis when in fact it is true.
Synonymous with: Type I error, Producers Risk
In other words, stating a difference exists where actually there is none. Alpha risk is stated in terms of probability (such as 0.05 or 5%).
The value (1-alpha) corresponds to the confidence level of a statistical test, so a level of significance alpha = 0.05 corresponds to a 95% confidence level. |
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Term
| Analysis Of Variance (ANOVA) |
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Definition
| 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. See the tool 1-Way ANOVA. |
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Term
| Alternative Hypothesis (Ha) |
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Definition
| The alternate hypothesis (Ha) is a statement that the means, variance, etc. of the samples being tested are not equal. In software program which present a p value in lieu of F Test or T Test When the P value is less than or equal to your agreed upon decision point (typically 0.05) you accept the Ha as being true and reject the Null Ho. (Ho always assumes that they are equal) |
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Term
| Activity Based Costing (ABC) |
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Definition
| 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 |
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Term
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Definition
| ANalysis Of VAriance (ANOVA), a calculation procedure to allocate the amount of variation in a process and determine if it is significant or is caused by random noise. A balanced ANOVA has equal numbers of measurements in each group/column. A stacked ANOVA: each factor has data in one column only and so does the response |
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Term
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Definition
Attribute data is purely binary in nature. Good or Bad, Yes or No. No analysis can be performed on attribute data.
Attribute data must be converted to a form of Variable data called discrete data in order to be counted or useful.
Attribute data is qualitative data that can be counted for recording and analysis.
Examples include the presence or absence of a required label, the installation of all required fasteners.
Attribute data is not acceptable for production part submissions unless variable data cannot be obtained.
The control charts based on attribute data are percent chart, number of affected units chart, count chart, count-per-unit chart, quality score chart and demerit chart. |
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Term
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Definition
| Availability is the state of able readiness, of a product, process, practicing person or organization to perform satisfactorily its specified purpose, under pre-specified environmental conditions, when called upon. |
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Term
| What is cause & effect diagram? |
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Definition
| Fishbone or Ishikawa diagram. Causes (sources of variation/variables. Effect (response or output variable). Partition the variables: C=Constant, N=Noise, Y=Experimental |
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Term
| What is the Lean Six Sigma Philosophy? |
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Definition
- Best in class quality.
- Business profitability.
- Customer/Member value.
Providing a BETTER product/service FASTER, and at a LOWER COST then our competition |
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Term
| _______, ________is the enemies of member satisfaction |
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Definition
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Term
| Where does the COST OF POOR QUALITY (waste or muda (rubbish japanese) come from? |
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Definition
Internal failure costs rework.
- external failure costs (customer received product with problems).
- Appraisal costs (6 sigma said to remove).
- Prevention Costs.
- Cost opportunity costs |
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Term
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Definition
| Upper Control Limit. If data includes 13, 15,16, & 20 then upper control is 20. Upper control limit is determined by the data |
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Term
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Definition
| Lower Control Limit. If data includes 13, 15,16, & 20 then lower control is 13. Lower control limit is determined by the data. |
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Term
| What are some benefits of Lean Six Sigma to the organization? |
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Definition
- Expand knowledge.
- Decrease in defects & cycle time.
- Improved customer satisfaction.
- Business growth.
- Improved profitability.
- Improved communication & teamwork.
- Common set of tools & techniques |
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Term
| ______, _______ is a measure of process capability. |
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Definition
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Term
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Definition
Critical to Quality.
Note: Outcomes that are measureable. |
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Term
| What is difference between variable & attribute data? |
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Definition
- Variable data is continuous (measurement data) such as; time, temperture, call volume, speed, etc).
- Attribute data records just the presence or absence of something such as; good/bad, pass/fail, yes/no, female/male. |
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Term
| What are some things to do PRIOR to collecting data? |
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Definition
- Understand the customer requirements.
- Define the process.
- Minimize extraneous variation through PF/CE/CNX/SOP which is process flow / cause & effect/ constant, noise, experimental / standard operating procedures. |
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Term
| What are some metrics to describe quality for VARIABLE data? |
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Definition
- CP = Capability Index (Potential).
- CPK = Capability Index (Actual).
- Sigma Level.
Note: Cpk-A six sigma process will have a Cpk value of 1.5 or larger.
- CP-A six sigma process will have a Cp value of 2 or larger |
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Term
| How many ERRORS allowed to be called a Six Sigma? |
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Definition
3.4 defects per million of opportunities.
Note: squeeze out all the varibility |
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Term
| Specify ________in the eyes of the customer? |
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Definition
Value. (Internal & External)
Note: Value is defined by the customer/member.
-Goal is to provide the customer/member defect-free products & services that are:
- what they want.
- when they want it.
- at the desired price. |
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Term
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Definition
Is the entire set of activities performed to transform the products and services in what is reqired by the customer/member.
- Includes value added & non-value steps.
- Looks at both product flow and information flow. |
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Term
| For attribute (discrete) data which graph could you run? |
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Definition
Graph =
- Pareto.
- Runchart.
- Control Chart.
Metric / Measure =
- First Pass Yield (FPY).
- % "good" or "bad".
- Defects per million opportunities (DPMO).
- Sigma Capability. |
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Term
| For variable (numeric) data which graphs could you run? |
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Definition
Graphs =
- Histogram.
- Run Chart.
- Control Chart.
- Scatter Plot.
- Box Plot.
Metric, Measure =
- Mean, Standard Deviation.
- Defects per million (DPM).
- Sigma Level.
- Sigma Capabiltiy.
- Capaility Index (Potential) (Cp) and/or Capability Index (Actual) (Cpk). |
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Term
| Probability of a simple event: |
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Definition
| P (A) / possible outcomes |
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Term
| Probability of complement |
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Definition
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Term
| Probability of two independent events occurring |
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Definition
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Term
| Probability of two mutually exclusive events |
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Definition
| : P(A or B) = P(A) + P(B) - P(A and B) |
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Term
| Probability of non-mutually exclusive events |
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Definition
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Term
| Probability of two dependent events |
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Definition
| P(A and B) = P(A) x P(B|A) |
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Term
| Probability of two dependent events when B occurs first |
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Definition
| P(A and B) = P(A|B) x P (B) |
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Term
| Multiplication rule for three or more dependent events |
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Definition
| P(A and B and C) = P(A) x P(B|A) x P(C|A and B) |
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Term
| Multiplication rule for three or more independent events |
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Definition
| P(A and B and C) = P(A) x P(B) x P(C) |
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Term
| Addition rule for two events that are not mutually exclusive |
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Definition
| P(A or B) = P(A) + P(B) - P(A and B) |
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Term
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Definition
The balanced scorecard is a strategic management system used to drive performance and accountability throughout the organization.
The scorecard balances traditional performance measures with more forward-looking indicators in four key dimensions:
* Financial
* Integration/Operational Excellence
* Employees
* Customers
Benefits include:
* Alignment of individual and corporate objectives
* Accountability throughout the organization
* Culture driven by performance
* Support of shareholder value creation |
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Term
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Definition
| This test is used to determine if there is a difference in variance between 3 or more samples/groups. It is usefull for testing the assumption of equal variances, which is required for one-way ANOVA. |
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Term
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Definition
| A snapshot of the state of inputs/outputs frozen at a point in time for a particular process. A baseline should be recordered to establish a starting point to measure the changes achieved with any process improvement. |
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Term
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Definition
A way or method of accomplishing a business function or process that is considered to be superior to all other known methods.
A lesson learned from one area of a business that can be passed on to another area of the business or between businesses. |
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Term
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Definition
Beta risk is defined as the risk of accepting the null hypothesis when, in fact, it is false.
Consumer Risk or Type II Risk.
Beta risk is defined as the risk of accepting the null hypothesis when, in fact, the alternate hypothesis is true. In other words, stating no difference exists when there is an actual difference. A statistical test should be capable of detecting differences that are important to you, and beta risk is the probability (such as 0.10 or 10%) that it will not. Beta risk is determined by an organization or individual and is based on the nature of the decision being made. Beta risk depends on the magnitude of the difference between sample means and is managed by increasing test sample size. In general, a beta risk of 10% is considered acceptable in decision making. |
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Term
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Definition
| Bias in a sample is the presence or influence of any factor that causes the population or process being sampled to appear different from what it actually is. Bias is introduced into a sample when data is collected without regard to key factors that may influence it. A one line description of bias might be: “It is the difference between the observed mean reading and reference value.” |
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Term
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Definition
In a situation where there are exactly two mutually exclusive outcomes (Ex: Success or Failure) of a trial, to find the x success in N trials with p as the probability of success on a single trial.
Ex:
Team A has won 15 Cricket Matches out of 50 played. What is the probability of winning atmost 5 matches in the next 10 matches?
x = 5, N = 10 and p = 15/50 = 0.3
Mean = N * p = 10 * 0.3 = 3 |
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Term
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Definition
Six Sigma team leaders responsible for implementing process improvement projects within the business to increase customer satisfaction levels and business productivity. Black Belts are knowledgeable and skilled in the use of the Six Sigma methodology and tools.
Black Belts have typically completed four weeks of Six Sigma training, and have demonstrated mastery of the subject matter through the completion of project(s) and an exam.
Black Belts coach Green Belts and receive coaching and support from Master Black Belts. |
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Term
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Definition
Blocking neutralizes background variables that can not be eliminated by randomizing. It does so by spreading them across the experiment.
You can think of a block as an kind of uncontrolable factor that is added to the experiment. A block is ususally used when this uncontrolable factor cannot be avoided during the experiment, so it is incorporated into the experiment in a controlled way. The idea is to pull the variation due to the blocks out of the expermental error in order to reduce the experimental error and give the test more power |
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Term
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Definition
| The Box-Cox transformation can be used for converting the data to a normal distribution, which then allows the process capability to be easily determined. |
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Term
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Definition
A box plot, also known as a box and whisker diagram, is a basic graphing tool that displays centering, spread, and distribution of a continuous data set.
A box and whisker plot provides a 5 point summary of the data.
1) The box represents the middle 50% of the data.
2) The median is the point where 50% of the data is above it and 50% below it. (Or left and right depending on orientation).
3) The 25th quartile is where, at most, 25% of the data fall below it.
4) The 75th quartile is where, at most, 25% of the data is above it.
5) The whiskers cannot extend any further than 1.5 times the length of the inner quartiles. If you have data points outside this they will show up as outliers. |
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Term
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Definition
Business Process Management System (BPMS)- a nine step model enables companies to model, deploy and manage mission-critical business processes, that span multiple enterprise applications, corporate departments. BPMS is usually used for lesser mature processes to make them Repeatable & Reliable.
The nine step approach includes:
1. Create Process Mission
2. Document Process
3. Document Customer & Process requirements
4. Identify Output & Process Measures
5. Build process management system
6. Establish data collection plan
7. Process performance monitoring
8. Develop dashboards with spec limits & targets
9. Identify improvement opportunities |
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