Six Sigma | Chapter 11 - Acronyms

Question 1

CTQ

Answer 1

Critical To Quality

Question 2

PDCA

Answer 2

Plan, Do, Check, Act

Question 3

RTY

Answer 3

Rolled Throughput Yield

Probability that a single unit can pass through all the processes without any defects.

e.g. there are 3 processes required for manufacturing a unit. Process A has a success rate of 90%, Process B has a success rate of 80% and Process C has a success rate of 90%. What is the Rolled Throughput Yield for the unit?

Answer: RTY (Rolled Throughput Yield)

= Probability that a single unit can pass through all processes without defects

= Success probability of process A * Success Probability of process B * Success of process C

= 0.90 * 0.80 * 0.90

= 0.648

Question 4

PV

Answer 4

Present Value
PV = FV / (1+r/100)^n
FV = Future Value
r = Discount Rate, interest rate
n = number of time periods

Question 5

CASH

Answer 5

Types of reducing COPQ savings:

1. Cost Avoidance
2. Soft
3. Hard

COPQ Savings are CASH (Cost Avoidance, Soft, Hard)

Question 6

PDPC

Answer 6

Process Decision Program Charts

Used to make a risk management or risk mitigation plan used inside the implementation plan

Question 7

DAMDV

Answer 7

Define
Measure
Analyze
Design
Validate

Question 8

FSNPAR

Answer 8

Form
Storm
Norm
Perform
Adjourn
Recognition
(Stages of Team Evolution)

Question 9

BPC

Answer 9

Baseline Process Capability

The historical sigma level of a process that is captured in the Measure Phase

Question 10

WIP

Answer 10

Work In Progress

Question 11

BCR

Answer 11

Benefit Cost Ratio

BCR = Benefits (payback or revenue) / Costs

When benefit/payback/revenue = cost + (profit incurred OR cost - loss incurred)

Question 12

QFD

Answer 12

Quality Function Deployment

Question 13

CHRIST-CPQ

Answer 13

1. Integration Management
2. Scope Management
3. Time Management
4. Cost Management
5. Quality Management
6. Human Resource Management
7. Communication Management
8. Risk Management
9. Procurement Management

Project Management Knowledge Areas

Question 14

HOQ

Answer 14

House of Quality

Question 15

SPC

Answer 15

Statistical Process Control

Question 16

SWFCC

Answer 16

Smooth
Withdraw
Force
Compromise
Confront

(Forms of communication methods between team members)

Question 17

5S

Answer 17

5 Pillars

Sort
Straighten
Shine
Standardize
Sustain

Question 18

SDM

Answer 18

Solution Design Matrix

Question 19

IPEMC

Answer 19

1. Initiating
2. Planning
3. Executing
4. Monitoring
5. Closing

Project Management Process Groups

Question 20

DAMDOV

Answer 20

Define
Measure
Analyze
Design
Optimize
Validate

Question 21

NGT

Answer 21

Nominal Group Technique

Question 22

DPMO

Answer 22

Defects Per Million Opportunities

DPMO = (# of defects * 1,000,000) / (total # of opportunities)

Question 23

NPV

Answer 23

Net Present Value

Net present value (NPV) = (present value* of all cash inflows) - (present value* of all cash outflows)

Question 24

FFA

Answer 24

Force Field Analysis

Question 25

OEE

Answer 25

Overall Equipment Effectiveness

Question 26

VOC

Answer 26

Voice of Customer

Question 27

IRR

Answer 27

Internal Rate of Return The IRR on an investment or project is the Discount rate on an investment which makes present value of cash inflows = present value of cash outflows. The IRR of an investment is the interest rate at which the net present value of costs (outflows) of the investment equals the net present value of the benefits (future inflows) of the investment.

Question 28

LC

Answer 28

Lifecycle Cost

Question 29

CPM

Answer 29

Critical Path Method

Question 30

APIE

Answer 30

There are 4 types of COPQ costs: Appraisal Internal Failure Prevention External Failure Or, APIE The cost of poor quality is A PIE (appraisal, prevention, internal failure, external failure)

Question 31

OC

Answer 31

Opportunity Cost Once the best option is decided, the opportunity cost of not doing the other next option is determined - this is used to calculate opportunity cost. The value of the next best alternative is the Opportunity Cost.

Question 32

SLAP

Answer 32

Stability Linearity Accuracy Precision What each measurement system needs to have

Question 33

TPM

Answer 33

Total Productive Maintenance

Question 34

NOIR

Answer 34

1. Nominal 2. Ordinal 3. Interval 4. Ratio DMAIC, Measure, Measurement Scales

Question 35

PERT

Answer 35

Project Evaluation and Review Techniques

Question 36

PP

Answer 36

Payback Period Payback Period = Initial Investment / Cash Inflow Per Year

Question 37

RSM

Answer 37

Response Surface Methodology

Question 38

SIPOC

Answer 38

Acronym SIPOC stands for Supplier, Input, Process, Output and Customer.

Question 39

PSSESA

Answer 39

Physical Safety Social Esteem Self-Actualization (Maslow's Hiearchy of Needs)

Question 40

PAIA

Answer 40

Plan Analyze Integrate Action Benchmark Phases from Robert Camp

Question 41

SPMTAPC

Answer 41

Schedule Priority Manpower Tech Issue Administrative Personality Cost (Conflict Intensity from most to least issue impact on project teams)

Question 42

DoE

Answer 42

Design of Experiments

Question 43

RPN

Answer 43

Risk Priority Number

Question 44

JIT

Answer 44

Just In Time

Question 45

SC

Answer 45

Sunk Cost

Question 46

DPU

Answer 46

Defects Per Unit Number of defects / Number of products e.g. If 1000 units and 25 defects, the DPU = 25/1000 = .025