Appendix A
Glossary
accuracy The extent to which measurement system values compare with the truth.
Affinity Diagram A tool used to group items into logical categories, and naming the categories with a title that characterizes the group.
Alternate Hypothesis (HA) Relative to hypothesis testing, a statement of difference or dependence (e.g., changes in x do affect Y).
Analysis of Variance (ANOVA) Statistical method used to test the hypotheses that changes in levels for each x factor cause changes in the response variable Y.
ask why five times The act of questioning until you get the root cause of a problem.
attribute data Discrete data gathered into categories, such as Large, Small, On, Off, Red, Blue, Pass, Fail, and so on.
Autonomous Maintenance A subset of Total Productive Maintenance (TPM) which makes the worker the first line of maintenance.
average See “mean.”
average Flow Time Actual amount of time it takes to complete process steps, including waiting and rework.
Balanced Scorecard A system of metrics that measures and displays all the different aspects of organizational performance.
baseline performance Snapshot of process performance before Lean Six Sigma project improvements.
benchmarking Comparing your organization or process to those who are world-class at what you do.
Benefit/Effort Matrix Sometimes called an Impact/Effort Matrix, enables you to determine which project ideas have the most value and which don’t.
Black Belt An expert problem solver who is trained in Lean Six Sigma methods and statistical tools.
bottlenecks Disruptions in Flow when processing time exceeds Takt Time; or process steps that are rate limiting.
Box Plot Graph commonly used to display differences between categorical xs.
Box-Behnken Design A type of response surface design used to identify quadratic and interaction effects of input factors.
brainstorming Group sessions used to elicit a wide range of ideas. In Lean Six Sigma, often used to generate a list of potential xs.
burning platform A known need or emergency in an organization that can be used to promote and sustain change.
Cause-and-Effect Matrix Brainstorming tool that estimates the strength of relationship between a list of xs and Ys.
cellular operations Method of designing the physical layout of a process in a way that minimizes space, time, equipment, and inventory. Also called cellular manufacturing or cellular layout.
Champion Manager or business leader who spearheads the selection, implementation, and completion of Lean Six Sigma projects.
changeover A non-value-added activity necessary to continue production but causing downtime of equipment or resources.
checksheet Data collection tool designed to collect categorical (attribute) data with minimal effort but high visibility. Tally sheets are one example.
clean data Data that is accurate and free of correlation between input factors.
Common Cause variation Variation you get by virtue of nature, or by virtue of the way you design your product or process.
concurrent engineering The practice of simultaneously engineering a product and the processes that make it.
confidence Likelihood of not making a Type I error, symbolized by (1-α). (See “Type I error”).
consequential metrics Negative side effects that could happen as a result of Lean Six Sigma improvements.
Control Chart Used to monitor process performance using Control Limits (see “Control Limits”).
control freak A person who refuses to believe the gains he or she has made will be maintained by others in his or her absence.
Control Limits (UCL and LCL) The extremes of expected variability of a stable process based on the control metric (e.g. individuals, means, proportions, defect per unit).
Control Plan Institutionalizes a new process by documenting exactly how critical inputs and outputs will be kept in control.
core team/steering committee Team that configures, drives, reviews, and is responsible for the Lean Six Sigma initiative.
correlation Strength of the relationship between two variables (but doesn’t imply causation).
correlation coefficient (r) Used to quantify the linear relationship between two variables.
critical success factors Factors that are necessary to the success of a Lean Six Sigma deployment.
Critical X Worksheet Sorts significant xs from those that don’t impact the process or Y of concern.
Critical-To characteristic (CT) Any feature of a product or process that is important to the customer or the business.
CT Flowdown The cause-and-effect chain of critical factors related to any process or product.
customer outcomes Answering the question “What human need does the product or service fulfill?”
cycle time The time it takes to complete one process step.
data collection sheet Used to collect detailed information on potential xs and supply specific x-Y data for analysis.
defect Any output of any process or business task that does not meet its intended performance target within some extent of acceptable variation. Also known as error.
deployment The act of spreading, coordinating, and driving many improvements throughout an organization.
Deployment Champion A leader who drives and oversees Lean Six Sigma deployment throughout a major business unit or division.
deployment infrastructure Systems, supports, functions, and software required to proliferate Lean Six Sigma throughout an organization.
deployment planning Process of defining and documenting how an organization will deploy Lean Six Sigma or some other initiative.
Design for Six Sigma (DFSS) The branch of Six Sigma that enables you to prevent defects from occurring in the first place through superior design based on the Voice of the Customer (VOC).
Design of Experiments Uses specific design combinations (arrays) of changes (levels) of input factors (independent variables) to observe changes in output responses (dependent variables).
Discrete Process Simulation Model that shows the visual flow of materials through the process to help identify bottlenecks and resource utilization.
DMAIC project Performance improvement project that progresses through Define-Measure-Analyze-Improve-Control phases. Colloquially known as the “breakthrough strategy.”
DPMO Defects per Million Opportunities.
Ease/Impact Matrix A grid that compares the impact and ease of potential solutions.
eight wastes Lean concepts of Waiting, Overproduction, Rework, Motion, Processing, Inventory, Transportation, and Intellect.
80/20 rule Frequently related to Pareto Charts, this rule states that, often, 80 percent of any effect is caused by 20 percent of the input variables. Also known as the “vital few” versus the “trivial many.”
Entitlement Best performance possible based on your process design, disregarding variation you can’t control.
EPIC Solution Matrix Method of rating possible solutions according to the dimensions of Ease, Permanence, Impact, and Cost.
External Changeover Steps Changeover activities that can be done while the process is running.
external customer Person who purchases the final product or service.
Failure Mode and Effects Analysis (FMEA) Tool used to identify and rank potential possibilities of failure.
final report Project report including storyboard visuals as well as additional information. Written in a narrative fashion so anyone can understand it.
first-time yield Extent to which a process produces its intended outcome right the first time.
Fishbone Diagram Also called Cause-and-Effect Diagram, this is used to brainstorm possible causes of the output (Y) variable.
Five Ss Five disciplines that can transform a messy, cluttered, and inefficient process into one that is clean and streamlined (seiri, seiton, seiso, seiketsu, and shitsuke in
Japanese; Sort, Store, Shine, Standardize, and Sustain in English).
flow Lean principle to make sure your workloads are even and humming along at full utilization in a steady way.
Flow Kaizen A type of Kaizen Event that looks at improving the entire value stream.
Force Field Analysis Technique for weighing the enabling versus opposing forces relative to any desired outcome.
Gantt Chart Classic project management tool used to keep track of tasks, people, deadlines, and costs.
Genba The “actual place” where the work is performed.
Green Belt Part-time Lean Six Sigma practitioner who completes fewer, less difficult projects than a Black Belt.
hard savings Quantifiable financial savings that result directly from a Lean Six Sigma project.
hidden factory Rework built into a process as a “necessary” step (called “editing” or “correction” or “revision”). Prevents doing it right the first time.
Histogram A bar chart that displays numerical data by frequency of occurrence within defined intervals.
Hoshin Planning Practice of cascading top-level organizational strategies into increasingly lower levels, with performance metrics attached, and plans for improvement.
hybridization Theory that certain functions of products and systems become melded together over time (Lean Six Sigma is a hybridized solution).
hypothesis testing Using samples to challenge assumptions about population parameters to standards or other populations, and making statements of statistical significance about the populations.
Ideal Final Result (IFR) A perfect solution with no trade-offs or negative consequences used as a starting point to generate solutions using TRIZ (see “Theory of Inventive Problem Solving”).
Ideal Manning Levels Determined by dividing the sum of your manual cycle times (time required to perform a job) by your Takt Time (rate of customer demand).
Implementation Plan Documents all the actions required to implement project changes, as well as when the changes are to be done and by whom.
initialization The process by which an organization readies itself to deploy Lean Six Sigma.
input What flows into the process. This can include personnel, material, equipment, information, etc. … the “x” in Y = f(x).
interaction effect When xs interact with each other to produce some measured outcome.
internal changeover steps Activities that must be done while a process is idle. Should be avoided or minimized whenever possible.
internal customer Someone who needs the output of the previous process step to do one’s job.
inventive benchmarking Convergent brainstorming technique where participants work their way to a specific solution through the use of established inventive principles and thinking by analogy.
Just Do It project A project for solving a problem when the solution is known and you just have to implement it.
Kaizen Blitz “Change for the better.” Planned and structured process improvement effort that enables a small group of people to improve some aspect of their business in a quick, focused manner. Also called a Kaizen Event.
Kaizen Event See “Kaizen Blitz.”
Kaizen Event Facilitator A Lean Six Sigma practitioner who is trained to lead Kaizen Events.
Kanban Lean Pull systems are called “Kanban” systems in Japanese. Kanban means “card” or “sign.” Kanban systems are inventory replenishment systems that function on the basis of demand.
Kano Model Asserts that, for some customer requirements, satisfaction is proportional to the extent that the product or service is fully functional. Others are disproportional.
Key Performance Indicators Leverage variables contributing to business success. Entire set of KPIs is also known as “system of indicators.”
knowledge transfer Getting the right knowledge to the right people at the right time to achieve your purpose.
lead time Sum of all the cycle times and wait times for a particular process; or the length of time it takes a good or service to go through the entire process.
Lean Body of knowledge and tools organizations use to remove all non-value-added time and activity from their processes. Based on the Toyota Production System.
Lean Six Sigma The blend of two root methodologies into one approach that optimizes the quality, speed, and cost of doing business.
Little’s Law Formula that shows the relationship between lead time, work in process, and completion rate.
log sheet Data collection tool for recording process information compiled by those most closely associated with particular tasks.
logbook Data collection tool for communicating process problems and actions taken.
Master Black Belt Teaches Black Belts (and Green Belts) to become proficient in executing Lean Six Sigma projects. Also coaches, mentors, and advises management.
mean Also known as “arithmetic mean” or “average,” a measure of central tendency determined by adding all data points in a population, then dividing the total by the number of points.
Measurement Systems Analysis (MSA) Validating the amount of error in a measurement system.
Median The middlemost value of a data set after the numbers have been arranged in ascending order.
Mindmapping Brainstorming technique for diagramming concepts and relationships that stem from an original problem statement.
Mistake Proofing “Poke-yoke.” Term coined by Shigeo Shingo to describe the technique of changing a process to prevent mistakes from occurring.
Mistake Proofing Kaizen A Kaizen Event focused on eliminating a specific defect from occurring in the process.
Monte Carlo Simulation Uses mathematical models, probability, decision rules, and induced variability in inputs to simulate real-life scenarios and identify variability in outputs.
muda The Japanese word for “waste.” Eliminating muda is a key component of a Lean process.
Multiple Skills Matrix Tool used by managers to plan and track employee training to help sustain Standard Work and process performance improvements.
multivoting Technique used to gain concensus from a group.
mura Unevenness in operations (poor flow) contributing to muda.
muri Overburden of people or machines contributing to muda.
non-value-added Any work the organization performs that does not add value to itself or the customer (e.g., waiting time).
Null Hypothesis (H0) Relative to hypothesis testing, a statement of no difference or independence (e.g., x does not affect Y).
optimization routine Linear algebra or complex search methods used to determine the best settings of factor levels to meet performance criteria.
outliers Data points that appear far removed from the main body of data.
output The finished product or service from each process step; the “Y” in Y = f(x).
Overall Equipment Effectiveness A clearly defined measure of actual process/asset performance relative to its maximum capability.
p-Value Common method for determining if one population is different from another. Typically, a p-Value of less than 0.05 indicates statististically different populations.
Pareto Chart A bar chart that displays categorical data by descending frequency of occurrence.
performance dashboard Group of hierarchically linked performance metrics monitored on a regular basis.
pilot Small-scale test of a proposed change applied to the real process, not a hypothetical or simulated process.
Point Kaizen A type of Kaizen Event that works to improve a specific point in the Value Stream. Led by a front-line associate. Sometimes called a “Genba Kaizen.”
population The entire set of items under study. Populations may be finite or infinite (extending into the future).
Power Influence Map Used to identify who can influence, positively or negatively, the outcomes of your projects or initiative.
precision The degree to which measurements are closely grouped together using the same system.
primary metric The key outcome (Y) of concern.
Prioritization Matrix Used to narrow down a list of potential projects or options to the best ones.
Probability Plot Graph that shows frequency of sample data compared to a specific mathematical distribution (e.g., normal distribution).
process capability Extent to which process outputs meet customer specifications. Commonly expressed as yield or sigma level.
Process Owners Lean Six Sigma participants who have primary responsibility for the operation and output of a given process.
productivity Figuring out how to do more with the same or fewer resources.
Project Charter The guiding document for a Lean Six Sigma project.
Project Transition Action Plan (PTAP) List of what needs to be done to transfer the control responsibility from the Belt to the Process Owner.
Pugh Matrix Tool for comparing competing solutions against a reference (usually the current situation).
Pull Lean dynamic by which you store, use, and produce only what you need when you need it, in real time ideally, or as close to this as possible.
quality Products, processes, or services that meet their specified performance standards.
Quality Function Deployment (QFD) Method for collecting and organizing customer requirements and mapping them to functional requirements.
Quality Rate The percentage of time you meet performance standards the first time. Also known as “first-time yield.”
queue models Statistical models used to evaluate waiting lines and their impact on flow rates and inventory levels.
Queuing Theory Mathematical science of organizing the flow of people, material, information, data, supplies, and other items through a process to create balance and harmony.
random word Brainstorming technique that incorporates a random word into the thinking pattern to generate new thought patterns.
Rapid Changeover Lean practice of quickly changing over from one mode of production (or service) to another. Also called “Single Minute Exchange of Die.”
red-tag event The process of removing unneeded items in order to complete the Sorting step of the Five Ss.
regression analysis Used to provide equations that estimate input-output (x-Y) or other predictor-response relationships.
repeatability A desirable trait that occurs when the same person can get the same measurement result more than once.
reproducibility A desirable trait that occurs when different people can get the same measurement result at different times.
Response Surface Methods Specific experimental design combinations used to develop mathematical models with linear, quadratic, and interaction terms to seek optimum performance from a given set of factors and response variables.
Risk Priority Number (RPN) In a FMEA, the product of a potential failure mode’s Severity, Occurrence, and Detect ratings.
Rolled Throughput Yield (RTY) The final yield of a process after exposure to the cross-multiplied probabilities of failure along the chain of all process steps and activities.
root cause The x (cause) that possesses the most leverage in determining the state of the desired outcome (effect).
Run Chart Visually plots data in time sequence order as the process “runs.”
Sample A selection of items from a population used to make some inference about the population.
Scatterplot Graph used to display pairs of continuous x and Y data.
scientific management Born in the 1920s, the science of how an organization quantifies and optimizes the way it creates value, or does business.
secondary metrics Desirable performance side effects that may result from Lean Six Sigma improvements.
Shewhart cycle The cycle of Plan/Do/Study/Act developed by statistician Walter Shewhart. Also known as the Plan/Do/Check/Act cycle.
shift A dramatic change in the mean of a process metric.
Shift and Drift Tendency for process variation to shift 1.5 sigma from the short to the long run. Also called the 1.5 sigma shift.
sigma capability See “sigma level.”
Sigma Kaizen Kaizen Event that moves rapidly through the five phases of the breakthrough strategy (Define-Measure-Analyze-Improve-Control).
sigma level The common Six Sigma metric for the capability of a process, calculated by translating the frequency of defects into a Z-score based on a normal distribution.
simulation Experimentation used to manipulate critical xs to see how they impact the overall process.
Single Minute Exchange of Die (SMED) See “Rapid Changeover.”
SIPOC Map Short for Suppliers-Inputs-Process-Outputs-Customers. A high-level process map.
Six Thinking Hats Brainstorming technique used to view a problem from six disctinctly different perspectives (Analytical, Emotional, Critical, Positive, Creative, Managed).
soft savings Future savings, or avoided costs (as opposed to current-year “hard” savings); or, intangible benefits like “employee satisfaction.”
Spaghetti Diagram Map of how people, information, paper, materials, etc., travel in a process.
Special Cause variation Variation caused by something going wrong with the process, producing a faulty output, the root cause of which can be determined and rectified.
specifications Exacting requirements for CTs (Critical-To characteristics) expressed mathematically so they can be constantly measured and monitored.
Stakeholder Action Plan Tool for planning actions for moving stakeholders into stronger positions of support.
Stakeholder Analysis Tool used to identify your project’s stakeholders and figure out who is for and who may resist you.
standard deviation (α). Measure of the average distance of the data values from their mean. Not the same as sigma level.
standard operating procedures (SOPs) Work procedures for all to follow. Otherwise just called “procedures,” or “policies and procedures.”
Standard Work analysis Breaks down process steps in small increments and compares performance to the Takt Time.
statistic A calculated value derived from a set of sample data used to describe a characteristic of a population.
Statistical Process Control (SPC) Use of Control Charts to monitor process performance and make decisions on how and when to adjust the process.
Storyboard Visual depiction of a Lean Six Sigma project used to bring all stakeholders up to speed on what has changed, why, and the results.
supplier Person or organization that provides inputs into the process.
Swim Lane Flow Chart Displays the steps of a process and shows functional ownership for each one.
t-test Most common test to challenge assumptions about population means when populations are normally distributed.
Takt Time Means “keep in step” or “keep time” (from German). Available amount of work time divided by customer demand for a specific time period.
theoretical flow time The average amount of time needed to perform process steps with no waiting or rework.
Theory of Constraints Only a few barriers stand in the way of success for any person, process, or organization.
Theory of Inventive Problem Solving (TRIZ) An innovation methodology that uses a proven matrix of generic solutions to solve specific problems.
tollgating Process for regularly reviewing Lean Six Sigma projects at the end of each successive phase of DMAIC. Also called “tollgate review.”
Total Productive Maintenance (TPM) To make all equipment downtime 100 percent predictable and minimized.
Total Quality Control (TQC) From its Japanese roots, the application of quality improvement throughout all the functions and processes of a company.
Total Quality Management (TQM) The act of managing for organizationwide quality improvement according to the Malcolm Baldrige Award criteria.
transfer function The mathematical relationship between a set of process inputs and a specific output feature.
trend Six consecutive points on a control chart, each higher or lower than the previous point, which may indicate Special Cause variation.
Type I error Detecting a false difference, or declaring that the x influences Y when it’s only random variation. Also known as “alpha (α) risk.”
Type II error Not having enough evidence to detect that x really does influence Y. Also known as “beta (β) risk.”
value creation Act of transforming a set of inputs into a set of outputs that bring in revenue greater than the costs incurred.
Value Stream The total set of activities, both value-added and non-value-added, that occur as a process unfolds.
Value Stream Map (VSM) Depicts how a process operates, with the added dimensions of documenting the people involved, inventory counts, queue times, process cycle times, and lead times.
value-added A necessary function, activity, or step in a process.
variable data Data gathered according to a scale, such as Time, Weight, Length, etc. Also known as “continuous data.”
variation Extent to which performance varies around the average. Range of difference between the statistical mean and all data points used to calculate the mean.
Voice of the Customer (VOC) The collective needs, wants, and desires of your customers.
work-in-process inventory Any materials or needed inputs that reside, virtually or physically, at different points in the process.
Workload Balance Distribution of total work cycle time, and the pacing of that work content to the customer demand rate.
Y = f(x) Y is the outcome. The xs are the causal factors, or inputs, that produce the outcome. f is the function performed on the inputs to produce the outputs.
Yellow Belt A less informed and trained Belt who collects data, characterizes process performance, and assists Black and Green Belts with project execution.
Z-score Statistical measure that quantifies the distance a point is from the mean in terms of standard deviations.
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