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Definitions
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2014-12-19 23:20:35
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Six Sigma
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  1. Six Sigma
    Sigma is referred as a business-driven, multi-faceted approach, which focuses primarily on process improvement, reduced costs, and increased profits
  2. Six Sigma Performance
    Statistical term for a process that produces fewer than 3.4 defects {or errors} per million opportunities for defects
  3. Determinism
    The principle that you can create a desired outcome by configuring and controlling the inputs in a specific manner.
  4. non causa pro causa
    "non-cause for the cause"

    Just because 2 events happen together doesn't mean that one has caused the other.
  5. Variation
    Deviation from expectation
  6. Common Cause Varitation
    Natural variation that you can act to reduce, but you cannot eliminate it.
  7. Special Cause Variation
    Directly caused by something special
  8. 80 - 20 Rule
    20% of the inputs account for 80 % of the influence on that system.

    "Vital few vs. the trivial many"
  9. Domains of Activity
    4 areas or domains to which Six Sigma can be applied:

    • Thinking
    • Processing
    • Designing
    • Managing
  10. Entitlement
    The best performance a process, as currently designed, has demonstrated in actual operation.
  11. Hidden Factory
    Work that is done above and beyond what is required to produce a product or service.

    {Reworking an item because of defects}
  12. Mode
    The value observed most frequently
  13. Mean
    The average. It is theoretical, meaning it may not have actually occurred.
  14. Median
    The point along the scale of measure where half the data are below and half are above.

    Preferred when there are outliers.
  15. Range
    The difference between the largest and the smallest observed data values.

    R = Xmax - Xmin
  16. Standard Deviation
    • a statistical method to define how much variation exists in a set of data or a process.
  17. Six Sigma meaning
    stands for Six Standard Deviations from mean
  18. Levels of Sigma Performance
  19. Defect Rate
    The complimentary measurement of yields is defects. If the yield is 90 percent, naturally there must be 10 percent defects.
  20. DPU
    • Defects Per Unit
    • provides a measurement of the average number of defects on a single unit.
  21. Yield
    the proportion of correct items you get out of a process compared to the number of raw items you put into it.
  22. Brainstorm
    Using the brain to storm a creative problem and to do so  “in commando fashion, each stormer audaciously attacking the same objective”.
  23. Affinity Diagrams
    When ideas presented in the Brainstorming session are grouped into meaningful categories

    One of the 7M Japanese management and planning tool
  24. Statistics
    the mathematics of the collection, organization, and interpretation of numerical data
  25. Sampling
    the practice of gathering a subset of the total data available from a process or a population.
  26. Statistic Sampling
    the collection, organization, and interpretation of the numerical data collected randomly from a process or a population
  27. Operational Definitions
    the collection, organization, and interpretation of the numerical data collected randomly from a process or a population
  28. Process
    a set of interrelated work activities characterized by a set of specific inputs and value added tasks that make a procedure for a set of specific outputs
  29. Process Flow Analysis
    Analyzing this flowchart to investigate the process and identify the problems in the process
  30. Pareto Principle
    because it is assumed that large percentage (80%) of the problems are caused by few percentages (20%) of the processes. So the Pareto chart helps by narrowing the very few areas of concern, while analyzing the process.
  31. Pareto Chart
    A bar chart that is displayed by frequencies. Used to rank the causes of a problem from the most to the least significant.

    • is a specialized vertical bar graph that exhibits data collected in such a way that important points necessary for the process under improvement can be demarcated
  32. Histograms
    are defined as bar graph of a frequency distribution in which the widths of the bars are proportional to the classes into which the variable has been divided and the heights of the bars are proportional to the class frequencies
  33. Run {Trend} Chart
    primarily focuses the changing trend or pattern over a specified period of time before measuring the performance of a process
  34. Scatter Plot {Correlation} Diagram
    graphic tool is used to search for direct relationship between two factors in a process, to see if a correlation exists between the two
  35. Control Charts
    A graphical tool for monitoring changes that occur within a process because of some common cause
  36. Line Graphs
    Used to depict the changes in the process
  37. Statistical Significance
    the probability that the observed relationship or a difference in a sample occurred by pure chance, and that in the population from which the sample was drawn, no such relationship or differences exist
  38. Correlation
    the relationship between two data sets of variable
  39. Positive Correlation
    when the value of one variable increases with the increase of the other variable.
  40. Negative Correlation
    when the value of one variable increases with the increase of the other variable.
  41. Regression Analysis
    when the value of one variable increases with the increase of the other variable. 

    Regression means a relationship between the mean value of random variable and the corresponding value of one or more predictors
  42. Project Charter
    It lists the vital features of the project. It describes what the higher management, black belts, and champions have agreed to achieve in the process
  43. Business Case
    The reasons for doing the project are stated.
  44. Process Measurements
    different events that will determine the effectiveness of the project
  45. Kano Model
    A quality measurement technique to measure client happiness.

    Customers perceive some product attributes to contribute to their satisfaction more than others. Kano describes this relationship in a diagram.
  46. Sample Survey
    A set of written questions that is sent to a group of selected customers to obtain answers that will enable corporate decision-making
  47. Focus Group
    A selected group of customers who are unfamiliar with each other, collected together to answer a set group of questions
  48. Project Definition
    documenting key information about the project.

    The project charter specifies the project definition
  49. Process Mapping
    an illustration of the flow of work {Flow Chart}

    Current Functioning and Expected Process

    Process maps increase the visibility of any process. This in turn improves communication.
  50. Flow Chart
    diagrammatic representation of the nature and the flow of work in any organization or process
  51. Flow Chart Symbols
    Oval -indicates the start and end point of the process. They usually contain the words START and STOP, or END 

    Rectangular Box -represents the process or an activity in the process  

    Parallelogram -represents the input or the output of the process  

    • Diamond -represents a decision point in a flow chart. It has two arrows coming out of it, corresponding to yes and no or true or false.
    • Circle -represents a place marker. It is used when a line or page has to be changed with the flowchart. This symbol is then numbered and placed at the end of the line or the page.

    On the next line or page, this symbol is used with the same number so a reader of the chart can follow the path.
  52. 7M Tools
    • - Cause-and-effect diagram (also known as the "fishbone" or Ishikawa diagram)
    • - Check sheet
    • - Control chart
    • - Histogram
    • - Pareto chart
    • - Scatter diagram
    • - Stratification (alternately, flow chart or run chart)
  53. Priortization Matrices
    Combination of tree diagram and a matrix chart. They are prepared to logically narrow down the focus of the team.

    Prioritization matrices are supposed to be used when: 

    - Vital root causes are already recognized   and the most important ones have been identified.

    - When the issues that have been generated from the brainstorming session are complex and are strongly interrelated

    - The resources for the progress are limited and only a vital few activities must be focused upon
  54. Matrix Diagram
    is a representation of elements in tabular form

    The left-most row and top-most column consists of inter-related elements and the rest of the cells consists of the symbols or the numbers that represent the strength of the relationship between the elements.
  55. Activity Network Diagrams
    A pictorial representation of the chain of actions to be executed to complete a project.

    also called arrow diagrams, network diagrams, activity charts, node diagrams etc

    A version of the Activity Network Diagrams is also known as PERT (Program evaluation and review technique) chart.
  56. Critical Path
    The longest path taken from the start to the end of the project
  57. Non Conforming Unit
    is the one which is deviating from its engineering specifications
  58. Defective Unit
    may be functioning just fine, BUT a part of it is not functioning as desired
  59. Probability Plot
    shows the probability of a certain event occurring at different places within a given time period.
  60. Sub Process Mapping
    selecting a high-level process step from a process map and breaking it down to a number of steps
  61. Flow of Work
    refers to computing the total time taken by the each sub process step (both value and non-value adding).
  62. Value Enabling Steps
    These are those steps, which are usually non-value adding steps but are required by law to be included. These steps cannot be improved.
  63. Root Cause Analysis
    tool designed to identify the problems which have occurred in a process. It not only explains what has happened and how it has happened but why a problem has occurred in a process.
  64. Root Cause
    those causes over which the management has some control. 

    Even those causes for which no effective recommendation can be developed cannot be termed as root causes.
  65. Scatter Diagram
    a tool used for establishing a correlation between two sets of variables. 

    It is used to depict the changes that occur in one set of variables while changing the values of the other set of variables. 

    • This diagram does not determine the exact relationship between two variables, but only determines whether the two set of variables are related to each other or
    • not; and if they are related, then how strong the relationship is.

    Analyzed using Regression Analysis
  66. Hypothesis Testing
    the process of using statistical analysis to ascertain if the observed disparities between two or more samples are due to random chance

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