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Lean Sigma Glossary / Abbreviation ListAcronym Definition Descriptionα Alpha The maximum risk or probability ofmaking a Type I Error. This probabilityis always greater than zero and is usuallyestablished at 5%. The researcher makesthe decisions to the greatest level of riskthat is acceptable for a rejection of Ho. β Beta The risk or probability of making a TypeII Error, or overlooking an effectivetreatment or solution to the problem.μ Population mean Symbol used to describe the average foran entire populationσ Population standard deviation Symbol used for standard deviation ofentire population. Measure of thespread of the process (width of thedistribution).% R & R Gage % Repeatability and Reproducibility Addresses what percent of the TotalVariation is taken up by measurementerror.Affinity Diagram A management tool that assists withgeneral planning. It makes disparatelanguage information understandable byplacing it on cards and grouping the cardstogether in a creative manner. "Header"cards are used to summarize each group. ANOVA Analysis of Variance Hypothesis test used to analyze thedifference in means between two or moresamples.Assessment A systematic process of collecting andanalyzing data to determine the current,historical or projected status of anorganization.Assignable Cause The name for the source of variation in aprocess that is not due to chance andtherefore can be identified andeliminated.Audit "The inspection and examination of aprocess or quality system to ensurecompliance to requirements. Audit canapply to an entire organization or bespecific to a function or production step."(Dr. Joseph M. Juran)Baseline Measurement A beginning point based on an evaluationof the output over a period of time todetermine how the process performsprior to any improvement effort.Benchmarking The process of finding and adapting bestperformance.Best Practice A superior method or innovative practicethat contributes to improvedperformance.BB Black Belt A process improvement project teamleader who is trained and certified in theSix Sigma breakthrough methodologyand tools and who is responsible forproject execution.Boxplot "A graphic summary of a distributionwhere the overall dispersion and thecentral tendency or mean of the data arehighlighted." (Arturo Onnias)Brainstorming An idea-generating technique that usesgroup interaction to generate many ideasin a short time period. Ideas are solicitedin a non-judgmental, unrestrictedmanner from all members of a group.Designates a process step that thebusiness requires to stay in business.Capability The total range of inherent variation in astable process. It is determined usingdata from control charts.Capability index A calculated value used to compareprocess variation to a specification.Examples are Cp, Cpk. Can also be usedto compare processes to each other.Cause An established reason for the existence ofa defect or a problem.C/E or C&E Cause and Effect Matrix Prioritization matrix used to assist infocusing in on the root causes of processproblems.Central Tendency The tendency of data gathered from aprocess to cluster toward a middle value,somewhere between the high and lowvalues of measurement.Champion An upper level business leader whofacilitates the leadership,implementation, and deployment of theprocess quality initiative andbreakthrough philosophies.Charter A written commitment by managementstating the scope of authority for animprovement group. Resources,including time and money, are specificallyaddressed.Checksheet A form for recording data on which thenumber of occurrences of an event canbe recorded as ticks or checks.Code of Conduct Expectations of behavior mutually agreedupon by a team. (Also called "norms" or"rules of engagement.")Common Cause A source of process variation that isinherent to the process and is common toall the data.CI Confidence Interval An interval that can be said, with X%certainty, to contain the true processmean or standard deviation. “We are95% confident that the true processmean is in this interval.”Conformance The state of meeting and/or exceedingcustomer requirements and expectations.Consensus A state where everyone in the groupsupports an action or decision, even ifsome of them don't fully agree with it.Consensus Decision A decision made after all aspects of anissue, both positive and negative, havebeen reviewed or discussed to the extentthat everyone openly understands,supports and participates in the decision.Control Keeping a process within boundaries;minimizing the variation of a process.Control Chart A problem solving statistical tool thatindicates whether the system is in or outof control, as determined by computedcontrol limits.Control Limits "Defines natural boundaries of a processwithin specified confidence levels" [uppercontrol limit (UCL), and lower control limit(LCL) defined on a control chart]. (J. R.Russell)Cost-benefit Analysis A way to compare the costs and benefitsof plans. Can be used for comparing thefinancial outcomes of different actionsand determining if a particular actionmakes sense financially.COPQ Cost of Poor Quality Cost associated with poor qualityproducts or services. Examples:Product inspection, Sorting, Scrap,Rework, and Field Complaints.Cp Process Capability Index A calculated value used to compareprocess variation to a specification. Canalso be used to compare processes toeach other.CPD Customer Percent Defective The percentage of products or servicesthat are successfully completed on thefirst attempt without requiring remedialaction or rework.process variation to a specification. Canalso be used to compare processes toeach other.Countermeasure Action taken to counter the verified rootcause of a problem.Critical Characteristic A characteristic dependent on thefunctioning of budget constraints,competitive edge and/or customersatisfaction of the product.Critical Dependencies The interrelationships existing within oramong processes that are primary driversof defects or errors in a product orservice.CPIV Critical Process Input Variable The vital few process input variables thathave the greatest effect on the outputvariable(s) of interest. They are called“X’s”, normally 2 – 6 true criticalvariables.different organizational units or functionsthat are part of a team to solve problems,plan, and develop solutions affecting theorganization as a system.CVA Customer Value Added Term used in Value Analysis of a process.Designates a process step that thecustomer is willing to pay for.CT Cycle Time The average time from a unit enteringthe process until it is completed as afinished good.CTQ Critical to Quality A requirement that a customer values isconsidered Critical to Quality. What thecustomer pays for.Defect Any instance or occurrence where theproduct or service fails to meet customerrequirementsDefect Opportunity A type of potential defect on a unit ofthroughput (output) that is important tothe customer (i.e. Specific fields on aform that creates and opportunity forerror that would be important to thecustomer).Defective Any unit with one or more defects. Seealso DefectsDMAIC Define, Measure, Analyze, Improve, Control 5 steps during a Six Sigma projectDMADV or DMADVI Define, Measure, Analyze, Design, Validateor Define, Measure, Analyze, Design, Verify,ImplementNew process design tool. Commonlyused acronym for Design for Six Sigmamethods.DOTWIMP Defects, Overproduction, Transportation, Seven wastesWaiting, Inventory, Motion, ProcessingDPMO Defects Per Million Opportunities The number of defects in every millionopportunities. By taking into accountopportunities for defects, and not justdefects, we can compare processes ofdiffering complexity.DPU Defects Per Unit The number of defects in a unit orproduct. This measure does not takeinto account the number of opportunitiesfor defects, just the number of defects. DOE Design of Experiments An efficient method of experimentationwhich identifies, with minimum testing,factors (key process input variables) andtheir optimum settings that affect themean and variation.Empowerment Act of placing accountability, authority,and responsibility for processes andproducts at the lowest possible level.Whether or not a person is trulyempowered depends on their acceptanceof responsibility and accountability, theircapabilities, and the seriousness of theconsequences.ENT Entitlement The best a process measure could be.External Failure Nonconformance identified by externalcustomers.Y = F(x1, x2, x3, ……)F Function relating process inputs to processoutputsFMEA Failure Modes and Effects Analysis Method used in measure to understandrisks of failure in a process.quality troubles and restoring the statusquo." (Dr. Joseph M. Juran)FPY First Pass Yield The percentage of products or servicesthat are successfully completed on thefirst attempt without requiring remedialaction or rework.Five “whys” A technique for discovering the rootcause(s) of a problem and showing therelationship of causes by repeatedlyasking the question "Why?"Gage bias (Accuracy) The difference between the true orreference value and the observedaverage of multiple measurements of theidentical characteristic on the same part.Gage repeatability The variation in measurements obtainedwith one measurement instrument whenmeasuring the identical characteristic onthe same part.Gage reproducibility The variation in the average of themeasurements made by differentappraisers using the same measuringinstrument when measuring the identicalcharacteristic on the same part.Gap Analysis The comparison of a current condition tothe desired state.Goal "A broad statement describing a desiredfuture condition or achievement withoutbeing specific about how much andwhen." (Government Performance andResults Act of 1993)GB Green Belt A part-time process improvement projectteam leader who is trained and certifiedin the Six Sigma breakthroughmethodology and tools and who isresponsible for project execution.Typically works on smaller scopedprojects than B B’s.H o Null Hypothesis A statement of no change or difference.This statement is assumed true untilsufficient evidence is presented to rejectit. “If p is low, Ho has to go”aThis statement is considered true if Ho isrejected.Hawthorne effect Every change results (initially, at least) inincreased productivity. Often occursearly in a project, where processparticipants realize the process is understudy.Histogram A graphic way of summarizing data byplotting possible values on one axis andthe observed frequencies for those valueson the other axis. It helps one visualizethe central tendency and dispersion ofthe data.House of Quality A product-planning matrix developedduring quality function deployment thatshows the relationship of customerrequirements to the means of achievingthese requirements. The matrixindicates the impact each of the meanshas on one another.Implementation A structured approach that addresses alland how) of incorporating improvementsinto the process or system.Improvement The organized creation of beneficialchange; the attainment of unprecedentedlevels of performance. Levels ofimprovement range from incremental tomajor; e.g., "breakthrough"improvement.I/O Input Output Type of process map that includesprocess steps and their inputs andoutputs.Inspection Process of measuring, examining ortesting a product service against somerequirement to identify nonconformancebefore it reaches a customer.Internal failures "Product failures that occur before theproduct is delivered to externalcustomers." (Dr. Joseph M. Juran)documentation of standardizedprocesses.JIT Just In Time A concept where an item is delivered,just-in-time, where and when it isneeded.Kaizen In the business world, The word Kaizenhas been utilized by the Japanese tocharacterize a business strategy involveseveryone in an organization workingtogether to make improvements 'withoutlarge capital investments'Kanban "A communications tool in the'just-in-time' production and controlsystem. A kanban, or signboard, isattached to specific parts in a productionline signifying the delivery of a givenquantity. When all parts have been used,the same sign is returned to its originwhere it becomes an order for more."(Kaizen Institute)KJ Jiro Kawakita Name of a noted Japaneseanthropologist. Created method forsummarizing and characterizing largequantities of anthropological datagathered during his expeditions.KPIV Key Process Input Variable The vital few process input variables thathave the greatest effect on the outputvariable(s) of interest. They are called“X’s”, (normally 2 – 6)are called the “Y’s”, (usually 1). May beprocess performance measures orproduct characteristics.LCL Lower Control Limit Demonstrates lower limit of processexpected variability. Points outside ofcontrol limit should be investigated todetermine assignable cause. Formula is(process sample mean – 3 x samplestandard deviation). 99% of theprocess variation falls within the lowerand upper control limits.Little’s Law CT = CT * THLSL Lower Specification Limit Lowest acceptable value or measurementcustomer is willing to accept. Lowerlimit of customer requirement.MBB Master Black Belt A person who is “expert” in S ix Sigmabreakthrough techniques and projectimplementation. MBBs play a key role intraining and coaching Black Belts.Measurement System The complete process used to obtainmeasurements. It consists of thecollection of operations, procedures,gages and other equipment, software,and personnel used to assign a numberor value to the characteristic beingmeasured.MSA Measurement System Analysis Method to understand the capability ofthe measurement system.time that communicates vital informationabout a process or activity. A metricshould drive appropriate leadership ormanagement action. Physically, a metricpackage consists of an operationaldefinition, measurement over time andpresentation.assist in data analysis.Multi-Vari Type of multiple variable process study Assists in identifying the primary x’s thatimpact your Y’s. A graphic way ofdepicting variation within a single entity,machine or process, or between entities(produced at the same time or overtime). Allows the study of processinputs and outputs in a passive mode(natural day-to-day process).Multi-vari Chart A graphic way of depicting variationwithin a single part, machine or process,or between parts (produced at the sameprocess inputs and outputs in a passivemode (natural day-to-day process).Multivoting A structured voting process used toreduce a large number of items, usuallyideas, to a more manageable number forfurther processing or analysis.NGT Nominal Group Technique A tool for generating a list of ideas oropportunities (allows individuals toexpress their opinion). Voting andranking determine priorities.NVA Non-Value Added Term used in Value Analysis of a process.Designates a process step that is notrequired by the business or the customer.Normal distribution A continuous, symmetrical, bell shapedfrequency distribution for variable data.Out of control Describes a process that has variationsthat fluctuate outside the computedcontrol limits. This condition normallyindicates the process is not operating asdesired or that external factors have beenintroduced. A process "out of control" isnot stable and therefore is notpredictable.p p-value Test statistic used in Hypothesis testing.“If p is low, Ho has to go.”P/T Precision to customer tolerance ratio Addresses what percent of the toleranceis taken up by measurement error.Includes both repeatability andreproducibility.Paradigm A set of rules and regulations that definesboundaries and tells what to do to besuccessful within these boundaries.Pareto Chart A statistical method of measurement toidentify the most important problemsthrough different measurement scales;e.g., frequency, cost, etc. It directsattention and efforts to the mostsignificant problems.PPM Parts Per Million Same as DPMO.PDSA Plan Do Study Act Plan-Do-Study-Act: a structured, cyclicalmethodology for developing andimplementing actions of any type: Planfor the action by collecting and analyzingdata and developing alternatives; Do,implement the selected alternative(preferably on a small scale); Study,evaluate results and compare expectedvalues; Act, standardize action and/orWheel)Prevention A quality assurance strategy thatattempts to identify and correctunacceptable service or productcharacteristics during the design,development or production phases.Probability The chance of an event happening or acondition occurring in a random trial.Process The combination of people, equipment,materials, methods, and environmentthat produce output – a given product orservice. It is the particular way of doingsomething.Process map A step-by-step pictorial sequence of aprocess showing process inputs, processoutputs, cycle time rework operations,and inspection points.referred to as the customerrequirem ents. They are called the “Y’s”,(usually 1). May be processperformance measures or productcharacteristics.Process Spread The extent to which the distribution ofindividual values of the processcharacteristic (input or output variable)vary; often shown as the process averageplus and minus some number of standarddeviations. Other related measures ofspread include the range, and variance. QA Quality Assurance Used to describe either a company’squality methods or quality department.Assurance is typically more proactive.Quality Audit "A systematic, independent examinationand review to determine whether qualityactivities and related results comply withplanned arrangements and whether thearrangements are implementedeffectively and are suitable to achieve theobjectives." (ASQC Quality Progress, Feb92)QC Quality Control Used to describe either a company’squality methods or quality department.Control is typically more reactive.QFD Quality Function Deployment A system that translates customerrequirements (voice of the customer) intotechnical requirements for each stage ofdevelopment and/or production.and minimum data points in a sample.R & R Repeatability and Reproducibility Repeatability: The variation inmeasurements obtained with onemeasurement instrument when usedseveral times by one appraiser whilemeasuring the identical characteristic onthe same part.Reproducibility: The variation in theaverage of the measurements made bydifferent appraisers using the samemeasuring instrument when measuringthe identical characteristic on the samepart.RSM Response Surface Methods Method for using DOE to optimizeprocess parameter settings. Allows forfine process adjustment for ultimateoptimization.r b Rate of Bottleneck Process bottleneck rate or rate of theworkstation having the highest long termutilization in that process.RPN Risk Priority Number Metric used in FMEA to quantify risk.Calculated by multiplying the Severity ofthe Effect, the probability of Occurrenceof the Failure and the ability to Detect theFailure. RPN = S x O x DRTY Rolled Throughput Yield The multiplication of all the individual firstpass yields of each step of the entireprocess.s Sample Standard Deviation A measure of the average variation of asample (width of the distribution).SBTI Sigma Breakthrough Technologies, Inc. A consulting firm that specializes in SixSigma implementation.SMED Single Minute Exchange of DieSIPOC SIPOC Map - Suppliers Inputs ProcessOutputs Customers Single page process map that shows the scope of the process your project is examining.SD Standard Deviation A measure of the spread of the process(width of the distribution).SOP Standard Operating Procedure Standardized procedure that isdocumented and used by all processparticipants.SPACER Safety, Purpose, Agenda, Code of Conduct,Expectations and Roles Meeting effectiveness technique. Every meeting should begin with review of safety procedures, meeting purpose, agenda, meeting code of conduct, meeting expectations and meeting roles.Spec Specification The customer requirement for judgingacceptability of a particular characteristic.or s Standard deviation A measure of the spread of the process(width of the distribution).Statistical control The condition describing a process fromwhich all special/assignable causes ofvariation have been eliminated and onlycommon/random causes remain.Applies to both the mean (location) andstandard deviation (spread).SPC Statistical Process Control Method that uses control charting tomanage a process as it occurs.Storyboard Technique to graphically display themethodology used and progress made bya process action team; a board,specifically designated to displayinformationTakt time The pace of the process required to meetcustomer requirements. (Average worktime / Average Demand).Tampering The process of adjusting a stable processto try to compensate for a result that isundesirable or for a result that is extragood, the output that follows will beworse than if the tamperer had left theprocess alone.TOC Theory of Constraints A management philosophy that focusesthe organizations scarce resources onimproving the performance of the trueconstraint, and therefore the bottom lineof the organization.TCS Total Customer SatisfactionT, TH T o Throughput The average output of a productionprocess per unit of time.Average time it takes a single unit totraverse an empty production processprocess variability. Points outside ofcontrol limit should be investigated todetermine assignable cause. Formula is(process sample mean + 3 *s). 99% ofthe process variation falls within thelower and upper control limits.measurement customer is willing toaccept. Upper limit of customerrequirement.U Utilization Utilization of any workstation, capital,process or line is usually defined aspercent of time running divided byVA Value Added Term used in Value Analysis of a process.Designates a process step that is deemedvaluable either by the business or thecustomer.VSM Value Stream Map Type of process map that shows productand information flow. Also showsprocess data.Variation Difference between individualmeasurements. Differences areattributed to common and/or specialcauses.VOC Voice of the Customer Customer requirementsWIP W o Work In Process The inventory between the start and endpoints of a production process or series ofprocesses necessary to produce afinished good.WIP level for which the process achievesmaximum throughput.X Process Input variable In a Six Sigma project, we determine theinputs (X’s) that impact our processoutputs (Y’s).or X-bar Sample mean Symbol used to describe the average of apopulation sample.Y Process Output variable In a Six Sigma project, we determine theinputs (X’s) that impact our processoutputs (Y’s).。