Lean Six Sigma Glossary
8 Wastes (aka Muda) - answer 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.
5S - answerA workplace organization technique composed of 5 primary phases: Sort,
Set In Order, Shine, Standardize, and Sustain
5 Whys - answerA 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.
A3 - answerOn 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.
Affinity Chart (aka Affinity Diagram) - answerOrganizes a large amount of data
according to their natural relationships.
Alternative Path - answerUsed in process mapping, this method shows multiple ways of
achieving the same result.
Alternative Hypothesis - answerA form of hypothesis that assumes there is a statistically
significant difference between two or more data samples.
Analyze Phase - answerThe third phase of the DMAIC process focuses on identifying
the root cause (or causes) of a process problem.
Andon - answerAn alert system that can be visual or audible, facilitating quick response
to any problems in the process or system.
ANOVA - answerA form of hypothesis testing that determines if there is a significant
difference in the means of several different groups.
Assumption Busting - answerA brainstorming and questioning technique that does two
things: it identifies and challenges conventional thinking and eliminates obstacles to
optimal solutions.
,Attribute Data - answerRefers 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.).
Baseline Measures - answerData that establishes the current or initial conditions in a
process improvement project, prior to the application of solutions.
Batching - answerThe practice of making large lots of a particular item to gain economic
efficiencies.
Black Belt - answerThe 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.
Bottleneck - answerA 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.
Box Plot (aka Box & Whisker Plot) - answerA 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.
Brainstorming - answerA free-thinking group method for generating ideas to handle a
challenging situation.
Business Case - answerA broad statement that helps sell or justify a specific
improvement opportunity to the senior leadership or stakeholders in an organization.
Cause and Effect Diagram - answerA structured brainstorming tool designed to assist
an improvement team in listing potential causes of a specific effect.
Central Tendency - answerThe "center point" of a process distribution.
Changeover Reduction - answerThe practice of dramatically reducing or eliminating the
time to change from one method or unit to another.
Changeover Time - answerThe 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.
Checksheet - answerA simple tally sheet used to systematically collect data on the
frequency of an occurrence (e.g., the frequency of defects).
Chi-Square Test - answerA hypothesis test that determines whether a statistically
significant difference (aka variance) exists between two independent groups of discrete
data, ruling out chance.
,Master Black Belt - answerThe highest level of training for a Six Sigma practitioner. Not
only do they guide improvement teams, but are responsible for identifying improvement
projects.
Cockpit Chart (aka Dashboard) - answerA high level, at-a-glance display of key
performance indicators that are regularly monitored.
Common Cause Variation - answerA 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.
Comparative Analysis - answerA form of deductive logic that makes an item-by-item
comparison using data and facts.
Contingent Actions - answerPre-planned steps scheduled to go into effect when defects
or failures occur. They are designed to minimize damage and cost due to failures.
Continuous Data (aka Variable Data) - answerRefers 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.
Continuous Improvement - answerBroadly describes ongoing, incremental efforts to
make products and processes better.
Control Phase - answerThe 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.
Control Chart - answerTime charts designed to display signals or warnings of special
cause variation.
Control Plan - answerA guide to continued monitoring of the process, and the response
plan for each of the measures being monitored.
Cost/Benefit Analysis - answerA decision-making tool to compare costs (negative
results) vs. benefits (positive results) of a proposed change to a process.
Cost of Poor Quality (COPQ) - answerThis 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."
Cross Functional Flowchart (aka Deployment or Swimlane Map) - answerA 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.
Cross Training - answerInstructing employees in how to perform different tasks outside
of their original roles.
Correlation Coefficient (aka Pearson Correlation) - answerA statistical concept
expressed as the letter "r" that measures the strength and type of the relationship
between two factors ('X' and 'Y').
Customer - answerThe groups or individuals who receive the goods and services of of
the process.
Customer Focus - answerAn emphasis on understanding the needs of those who
receive the goods and services of the process.
Customer Requirements - answerThe needs and expectations of the customer,
discovered through a measurable, data-driven ("hard evidence") approach.
Customer Value - answerA 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.
Cycle Time - answerThe measurement of the time elapsed from the beginning of a
process or a step to its end.
Dashboard (aka Cockpit Chart) - answerA high level, at-a-glance display of key
performance indicators that are regularly monitored.
Data Analysis - answerThe practice of both determining how to display data and then
interpreting the resulting data displays.