Define Flashcards
Lean Vs Six Sigma
Lean: - Simplify processes (fast and efficient)
• Eliminate waste
• Reduce cost
• Increase speed
Six Sigma: (effective and improve quality)
• Eliminate errors
• Reduce variation
• Make system changes
• Sustain improvements
Process Variation Equation
Variation is due to differences in
• Manpower (people)
• Machines (e.g., computers, plants)
• Materials (soft and hard)
• Methods (e.g., procedures, training)
• Measurement (e.g., standards, policies, equipment)
• Mother nature (environment)
How to Measure the Variation?
Range: min-max
Std dev - σ (measure the data variation about the mean)
Variance - σ2
What is the limitation to variances and std devs?
Variances can be added together, but standard deviations cannot be added.
σT2 = σ12 + σ22 + σ32 (It is correct)
σT = σ1 + σ2 + σ3 (It is not correct.)
Define empirical rule
tells you what percentage of your data falls within a certain number of standard deviations from the mean.
• Based on one-year cost-per-call data for a service organization
o Mean (μ) cost per call = $16.00
o Standard deviation, σ = $2.00
• 99.73% of cost-per-call variation is between $10 and $22.
• The costs of 99.73% of calls vary from $10 to $22.
Define Z-score
The number of standard deviations between The process mean and a data point in the process
Zlt = Zst - 1.5
How go calculate z-score process capability
• A service organization has decided to limit the cost per call from $7.00 to $25.00.
• What is the help desk performance for cost per call in terms of the Z-score? • Whereas:
o Mean (μ) cost per call = $16.00 o Standard deviation, σ = $2.00
o USL (upper spec. limit) = $25.00 o LSL (lower spec. limit) = $7.00
On the right from the mean, Z-score = (25 – 16)/2 = 4.5
On the left from the mean, Z-score = (7 – 16)/2 = -4.5
Average industrial sigma level
World-class industrial sigma level
Average industrial sigma level = 4
World-class industrial sigma level = 6 and above
Defect
Failing to deliver what customer wants or not meeting Critical to Customer (CTC) requirement(s).
Opportunity
Number of possibilities (CTC requirement) for a defect.
Defective unit:
Non-conformance unit or unit with one or more defects. If a defect is minor and accepted by customer, unit is not
considered defective
DPMO
how many number of requirements are not met with respect to million requirements