Introduction to Six Sigma - Terms Flashcards
accountability
Being answerable, or responsible, to stakeholders. This may include shareholders, customers, employees, government, and the general public.
activity
The work required to proceed from one event to another.
adjourning
The fifth stage of team development. This stage is marked by assessment and closure. See stages of team development.
asset
Anything owned by a business or an individual that has monetary, commercial, or exchange value. See tangible asset, intangible asset.
attribute
A skill, quality, or characteristic that a person or a system should possess in order to perform effectively.
balanced scorecard
A standard reference against which future comparisons can be made.
baseline
A standard reference against which future comparisons can be made.
best practices
A set of learned procedures, techniques, or methods that reliably lead to a desired result. Sometimes used to set standards for an industry.
Black Belt
A professional trained in Six Sigma methodologies and principles. See Green Belt, Master Black Belt, Champion, Six Sigma.
bottom line
Net profits. Total revenues minus costs and overhead equals profits.
brainstorming
A group process during which creative ideas are generated around a particular area of interest, and then the ideas are analyzed and rated according to their appropriateness.
business case
The justification for undertaking, and for continuing, the project.
business strategy
An agreed-upon plan of action detailing how a business plans to accomplish its business goals or desired results. Sometimes referred to as organizational strategy.
capability
The ability of a process to achieve an objective, or a system to achieve a goal.
capital
In economics, capital is the machinery, factories, and inventory required to produce other products. For investors, capital is cash plus the financial assets invested in securities, a home, and other fixed assets.
career path
A planned progression of positions within an organization, each of which develops the skills necessary for an employee to move to the next level.
cause-and-effect diagram
Also called a fishbone or Ishikawa diagram. A graphical presentation of the potential causes of a recognized problem. The structure of the diagram is typically presented as a main arrow (representing effect) off of which smaller arrows (representing causes) branch in a pattern similar to a fish skeleton.
Champion
An executive or manager proficient in all aspects of Six Sigma methodologies. Often acts in a leadership capacity. See Six Sigma.
competency
The capacity to apply and use a combination of skill, knowledge, ability, and behavior to achieve an objective.
competitive advantage
The use of the specific characteristics and factors that differentiate an organization and add value.
competitive strategy
Actions and plans for positioning a company within its competitive environment.
constraint
The limiting element in a system that restricts production. Constraints may be physical or non-physical. See TOC.
consumer
See end user.
continuous improvement
The ongoing and incremental improvement of processes, products, or services.
COPQ
Abbreviation of the cost of poor quality. The loss of value that companies incur when customers perceive their products or services to be of a low quality.
corporate strategy
Actions and plans that influence an organization’s core values.
cost of poor quality
See COPQ.
cost variance
The difference between the budgeted cost of the work performed and the actual cost.
critical path
The series of activities that must be completed on schedule in order for the entire project to be completed on schedule. The critical path is the longest duration path through the work plan. If an activity on the critical path is delayed by one day, then the entire project will be delayed by one day, unless another activity can be accelerated by one day.
customer
A person or entity that has buying authority and who is the beneficiary of the project deliverable. Customers can be internal or external, individuals or organizations.
cycle time
The time it takes to complete a process from start to finish.
defects per million opportunities
See DPMO.
defects per unit
See DPU.
Define - Measure - Analyze - Design - Validate
See DMADV.
delighters
Features that go beyond the customer’s expectations – they are unexpected features and services that impress customers.
deliverable
The end product of a project or the measurable result of activities within the project.
dependency
A constraint on the sequence and timing of a task, step, or activity that is the result of the influence of a separate task, step, or activity.
dependency arrow
A graphic arrow used in a diagram to represent the interrelationships of tasks and activities within a project.
Design FMEA
A tool used to analyze component designs during the development stages of design that focuses on potential component failure modes and their effects caused by design errors.
Design for Six Sigma
A systematic methodology that utilizes tools, training, and measurements to enable the design of products and processes that both meet customer expectations and can be produced at Six Sigma quality levels.
design of experiments
A tool that provides a structured series of steps to follow when designing experiments and analyzing results – these steps help you to understand and control the variation of key process inputs in order to obtain improved results on project outputs.
DFSS
See Design for Six Sigma.
dissatisfiers
Basic requirements in your product or service that cause your customer not to like it.
DMADV
A core methodology for implementing DFSS that runs through the following phases: Define - Measure - Analyze - Design - Validate.
DMAIC
Acronym for the Define, Measure, Analyze, Improve, Control process, a process commonly employed when an organization wishes to improve on an existing process by using Six Sigma.
DOE
See design of experiments.
DPMO
Acronym for defects per million opportunities. The actual number of defects occurring divided by the total number of opportunities for a defect and multiplied by one million. Also referred to as parts per million (ppm).
DPU
Acronym for defects per unit. Calculated by dividing the total number of defects by the number of units or products.
element
A step that must be undertaken as part of a sequence in order to complete a task. See task.
end user
A person or entity that acquires goods or services for direct use or ownership, rather than for resale or use in production and manufacturing. Also known as a consumer.
event
The starting or ending point of an activity or a group of activities. See activity.
experience
Completion of the areas or activities by which someone is likely to have gained the knowledge or attributes that are required of a job.
failure modes and effects analysis
See FMEA. A tool that provides a structured method for analyzing potential failure modes and effects and how these may influence design perimeters.
fishbone
See cause-and-effect diagram.
float
The amount of time that a project manager can delay the start of a task without delaying the start of a successor task or the end of the project.
flow chart
A graphical representation of a process that shows the sequence of events in that process.
FMEA
A tool that provides a structured method for analyzing potential failure modes and effects and how these may influence design perimeters.
forming
The first phase of team development. In this stage the team comes together and begins to formulate roles and responsibilities. See stages of team development.
functional manager
A person with ongoing authority over a person or department within an organization. A project manager may also be a functional manager, or may report to a functional manager. See project manager.
goal
A statement describing a desired end result or future condition. A goal meets the criteria of being broad in scope, impact oriented, measurable, time-limited, and specific.
Green Belt
Typically full-time employees in an organization who play a vital role in Six Sigma project teams. They operate in support or under the supervision of Black Belts and usually spend about 25-30% of their time on Six Sigma projects. Green Belts are trained in the Six Sigma DMAIC methodology, which provides them with additional knowledge and skills essential to bring projects to success. They often lead small-scale improvement projects and analyze and solve Six Sigma problems within their respective areas. See Black Belt, Master Black Belt, Champion, Six Sigma.
HOQ matrix
See House of Quality matrix. A tool used during the QFD process to identify and analyze customer requirements and deploy them into a product or service during the design stage. This is done by transforming a list of prioritized customer requirements into a list of engineering targets that need to be met by the new product, service, or process.
House of Quality matrix
A tool used during the QFD process to identify and analyze customer requirements and deploy them into a product or service during the design stage. This is done by transforming a list of prioritized customer requirements into a list of engineering targets that need to be met by the new product, service, or process.
IDOV
A core methodology for implementing DFSS that runs through the following phases: Identify - Design - Optimize - Validate.
impact
The longer term consequences of activities.
intangible asset
An asset that is not physical in nature. Includes intellectual property such as copyrights and business methodologies, as well as influences such as public goodwill and brand recognition. Also known as a soft asset.
inventory
Abbreviated to I in the Theory of Constraints, inventory refers to the money tied up in the system, either in the form of actual inventory items, or in the form of investment or reinvestment in the system and its processes.
Ishikawa diagram
See cause-and-effect diagram.
issue
An obstacle that is impeding progress and needs to be resolved.
JIT
Acronym for just-in-time, a production and material-requirements planning methodology used in the implementation of Lean systems. The core of this methodology is that inventory is limited to only what is needed at the time it is needed, and only in the quantity that is necessary for production. See Lean philosophy.
job
The duties and tasks identified for, assigned to, and performed by an individual worker.
knowledge
The accumulation of understanding acquired through formal education, training, and experience.
Lean philosophy
A philosophy of manufacturing that seeks to minimize unnecessary time, materials, and effort in the production process.
likelihood
The probability of occurrence of a future event or outcome.
Master Black Belt
A professional trained in Six Sigma methodologies. Master Black Belts teach individuals the Six Sigma principles and act as mentors for lower-ranking belts. See Green Belt, Black Belt, Champion, Six Sigma.
measurement system analysis
A tool that ensures that measuring procedures and systems are accurate and unbiased. Assessment measurements are made to check whether variability in a process is within predetermined acceptable levels.
metric
A measure of some aspect of a project or process.
milestone
A significant point or event in the progress of the project or initiative.
MSA
See measurement system analysis.
muda
A Japanese term meaning “waste.” See waste.
multi-variate studies
A graphical technique allowing the visualization of multiple sources of process variation. The sources of variation are categorized into related groups, and then quantified to determine the most prevalent causes.
net profit
The actual money that an organization makes by producing and selling a specific product. It can be calculated using the formula: Net profit = throughput - operating expenses. See throughput, operating expenses.
norming
The third phase of team development. This stage is marked by the beginnings of group agreement and clarity of purpose. See stages of team development.
operating expenses
Abbreviated to OE, the money spent on running the system and turning inventory into throughput.
opportunity
An event that has the potential to have a positive effect on the project or initiative.
outcome
The shorter term consequences of activities.
Pareto chart
A chart used to evaluate the frequency of occurrence of risks. It is based on the Pareto principle, which proposes that 80% of problems result from 20% of causes. See Pareto principle.
Pareto principle
A principle conceived by the economist Vilfredo Pareto that states that 80% of all problems arise from 20% of potential causes. The principle is graphically presented in a Pareto chart. See Pareto chart.
PDCA cycle
Acronym for plan-do-check-act cycle, a four-step cycle that aims for continual process improvement.
PDSA cycle
Acronym for plan-do-study-act cycle, a four-step cycle that aims for continual process improvement.
performance metric
A standard used to evaluate performance against expected results.
performing
The fourth phase of team development. This stage is marked by team unity and autonomy. See stages of team development.
process
A group of steps or actions that take a specific input and manipulate it to produce the desired output.
process capability study
A tool used in the implementation of Six Sigma to predict how well a process is able to deliver desired outputs through the statistical analysis of variation in process output. See Six Sigma.
Process FMEA
A tool used to analyze transactional processes, such as manufacturing and assembly processes, to identify failure modes and their effects caused by these processes.
process maps
A tool used to analyze processes in a project. A process map is essentially a detailed flow chart that uses symbols to represent the sequence of events in the process. It shows all tasks, activities, and decisions made during the course of a process. See flow chart.
productivity
The ratio of output to input in a production process. A measure of how much is being produced by a system, in terms of saleable items. It can be calculated using the formula: productivity = throughput/operating expenses. See throughput, operating expenses.
project
A temporary endeavor with prespecified objectives, magnitude, and duration that is undertaken to create a unique product, service, or result.
project charter
The document that formally establishes the project.
project manager
The person with the responsibility and authority to direct the project. The project manager defines, plans, schedules, controls, and closes down the project. Responsibilities include leading the project and ensuring project deliverables are completed on time, within cost, and to required standards.
project plan
The document that contains all the information about how the project will be managed.
project quality management
A part of project management involving quality control, quality assurance, and quality planning to meet the requirements of the project.
project sponsor
The person who defines the project goals, appoints the project manager, and has final authority over the project.
project stakeholder
Anyone who will affect or be affected by the project.
project team members
The persons who do the work required to complete the project.
QFD
See quality function deployment.
qualification
A skill or the knowledge required to perform a particular job or fulfill a specific function.
quality
The degree to which a product or service fulfills requirements and conforms to users’ expectations.
quality function deployment
A tool that helps you to develop a clear understanding of customers’ needs and helps to translate these needs into technical requirements that generate the best possible products, services, and processes.
RDO
See robust design optimization.
remedial action
A change made to a nonconforming system, product, or service to address a deficiency.
resource
Any material, asset, or energy available for use.
result
The desired future state. Results include impacts that are linked to targets, outcomes that are linked to threats and opportunities, and outputs that are linked to activities. See impact, target.
return on investment
Abbreviated to ROI, the estimated or actual return on an investment, expressed as a percentage. It is calculated by dividing some measure of return by some measure of investment, then multiplying by 100, or using the formula: ROI = (throughput - operating expenses)/inventory. See throughput, operating expenses, inventory.
risk
An uncertain event or condition that, if it occurs, will have a positive or a negative effect on an organization’s goals and objectives.
risk factor
A condition under which the project or initiative is expected to function, but which could pose risk.
Risk Priority Number
The product of the severity, occurrence, and detection rankings to determine the risk of failure in a process or product.
risk response matrix
A matrix diagram used to identify the appropriate action required for a particular level of risk.
robust
A quality of the resilience of a system, especially when under stress. Robust systems are fault-tolerant and operate across a wide range of operational conditions.
robust design optimization
A tool that provides a means of integrating Design of Experiments early in the development process, allowing the team to discover optimal solutions to design needs.
rolled throughput yield
See RTY.
RPN
See Risk Priority Number.
RTY
Acronym for rolled throughput yield, a calculation that gives a true picture of process performance yields by looking at the yields of each individual step of a process.
satisfiers
Additional features whose presence in the product or service satisfies the customer.
schedule
A timetable of sequential activities and events. The schedule specifies both the beginning and ending times of activities, and the occurrence times of events. See activity, event.
Service FMEA
A tool used to analyze services for potential failure modes and their effects caused by system or process problems.
Six Sigma
A quality management approach that aims to reduce variation, cycle time, and waste, and to produce products or services within customer specifications.
stages of team development
Developmental stages that a team moves through over time: forming, storming, norming, and performing. Since a project is finite, it has a fifth stage – adjourning. Formulated by educational psychologist Bruce Tuckman.
stakeholders
Individuals or organizations with an interest in the success or failure of an organization, project, or product.
Statement of Work
A document that states what a project is to accomplish. It defines the project deliverables and sets parameters for the project work.
storming
The second phase of team development. This stage is marked by dissonance. See stages of team development.
supply chain
The network of suppliers, manufacturers, distributors, transporters, storage facilities, wholesalers, and retailers that participate in the sale, delivery, and production of a particular product.
System FMEA
A subcategory of Design FMEA used to analyze system functionality in the first stages of design to identify potential failure modes associated with the functionality of the system that may be caused by the system’s design.
T
See throughput.
tangible asset
Physical assets such as land, buildings, or equipment, and financial assets such as cash or credit. Tangible assets can be financially accounted and subjected to inventory. Also known as a hard asset.
target
A quantifiable objective for a given performance measure that is to be achieved by a specified future date.
task
A measurable, defined unit of work, with an identifiable beginning and end.
throughput
Abbreviated to T, the rate at which a system generates money. A simple formula to calculate throughput is T= selling price - (cost of production).
TOC
Acronym for The Theory of Constraints, which suggests that all systems have at least one element that limits them. This restrictive element, termed a constraint, prevents them from producing infinite output.
top line
Net sales or total revenues of a company.
turnover
A measure of the rate that a system turns work-in-progress (WIP) into saleable items, and eventual profit. It can be calculated using the formula: Turnover = throughput/inventory. See work-in-progress, throughput, inventory.
usability
The extent to which something can be used to achieve specified goals and objectives with effectiveness, efficiency, and ease within a specified context of use.
user requirement
An expression of a single and unique user need.
value
Economic or financial worth. Also, customers’ perceptions of the ability of a product or service to meet their needs and desires.
waste
Any activity that doesn’t add value to a process or product, yet still adds cost. See muda.
WIP
Acronym for work-in-progress, any item that is in the process of being manufactured.
work breakdown structure
A tool used to divide complicated project tasks into smaller, more manageable tasks.
