SUPER SIMPLE LEAN SIX SIGMA GLOSSARY

The web is overflowing with Lean Six Sigma resources. Our glossary provides clear, straight-forward language, organized for quick access so you can easily find and understand terms that you’re searching for.

For a better understanding of these terms and an advanced understanding of Lean Six Sigma, please check out our Green Belt and Black Belt Training & Certification courses.

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P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 1 5S: 5S is a workplace organization technique composed for five primary phases: Sort, Set In Order, Shine, Standardize, and Sustain.

5 Whys: 5 Whys is a simple but effective method of analyzing and solving problems by asking “why” five times, or as many times as needed in order to move past symptoms and determine root cause. This approach is used in tandem with Cause- and-Effect or Fishbone diagrams.

8 Wastes (aka Muda): The 8 Wastes refer to a list of issues that get in the way of process flow and cause stagnation. The list consists of Defects, Overproduction, Waiting, Non-Utilized Talent, Transportation, Inventory, Motion, and Extra-Processing. The idea of process improvement is to identify and remove all forms of waste from a process in order to increase efficiency, reduce cost and provide customer value.

A3: On a literal level, A3 refers to a ledger size (11x17) piece of paper. But in the Lean Six Sigma world, it is a tool to help see the thinking behind the problem-solving. Don’t mistake A3s as a document to be completed after the problem is solved. It’s important to use the A3 while working through the problem. The practice of using A3s forces project teams to focus their efforts. At the same time, A3s make it easier for a leader or coach to review a problem solver’s work. A3s become valuable coaching tools since leaders can see and provide feedback on the problem solver’s thought process.

Action Plan: An Action Plan is a simple way of tracking the "who, what and when" of tasks and decisions involved in supporting any project, implementation or initiative. The Action Plan enables a group to document who has been assigned to do each task and when each task is expected to be completed.

Affinity Chart (aka Affinity Diagram): An Affinity Chart (or Affinity Diagram) organizes a large amount of data according to their natural relationships. Useful for bringing order out of chaos, Affinity Charts make complex processes & procedures easier to grasp by breaking them down into their constituent parts and reorganizing them into groups based on similarity. In practice, this involves writing ideas onto notecards or sticky notes, and then grouping these ideas into similar columns. This is generally a silent activity completed by 1 or 2 members of a group.

Agile: Agile is a pragmatic, experience-driven way of organizing and managing projects. Agile places a great value on individuals and interactions, working products and services, customer collaboration, and being responsive to change.

Ally’s Network Worksheet: The Ally’s Network Worksheet provides a structured approach to building a helpful support network for any improvement effort. To learn more about Ally’s Network Worksheet, please register for our Lean Six Sigma Black Belt Training & Certification course.

Alternative Hypothesis: The Alternative Hypothesis, known as HA, is a form of hypothesis that assumes there is a statistically significant difference between two or more data samples. In any hypothesis test, if there is a less than 5% probability that the difference is due to chance, then the Null Hypothesis is rejected and the Alternative Hypothesis can be pursued. To learn more about Alternative Hypothesis, please register for our Lean Six Sigma Black Belt Training & Certification course.

Alternative Path: Used in process mapping, the Alternative Path method shows multiple ways of achieving the same result. Ideal for the mapping of very large and detailed processes, alternative paths are a process analysis tool. This is often done by assigning percentages to each path (e.g, time/incidents) for comparison purposes.

Analyze Phase: The Analyze Phase is the third phase of the DMAIC process, and focuses on identifying the root cause (or causes) of a process problem. The Analyze Phase requires data and knowledge gleaned from the previous Define and Measure phases of DMAIC. This phase focuses on analysis of the data and the process. In terms of the data focus, statistical analysis is a cornerstone of Analyze, ensuring that potential root causes are not only validated but significant enough to merit attention. Methods and tools used include Process Maps, Charts and Graphs, Hypothesis Testing, and Value-Added Analysis.

Anderson-Darling Test for Normality (aka Normality Test): The Anderson-Darling Test for Normality is a statistical test that determines whether or not a data set is normally distributed. A normal distribution is often referred to as a “Bell Curve”. Whether a distribution is normal or not determines which tests or functions can be used with a particular data set. To learn more about the Anderson-Darling Test for Normality, please register for our Lean Six Sigma Black Belt Training & Certification course.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 2 Andon: Andon is an alert system that can be visual or audible, facilitating quick response to any problems in the process or system. This system includes a way for employees to stop the process, physically or electronically, so that the issue can be addressed before production continues.

ANOVA: ANOVA (Analysis of Variance) is a form of hypothesis testing that determines if there is a significant difference in the means or averages of two populations of data. To learn more about ANOVA, please register for our Lean Six Sigma Black Belt Training & Certification course.

Approvals: An approval indicates a process step that requires time and attention from someone in an organization to sign or provide an “okay” before the process can continue. This adds to the waste of “Waiting,” generally does not add value and frequently becomes a “rubber stamp” type activity when the approver does not have the time to pay close attention. The fewer approvals required, the faster a process can flow.

Assumption Busting: Assumption Busting is a brainstorming and questioning technique that does two things: it identifies and challenges conventional assumptions and eliminates them if they are obstacles to optimal solutions.

Attribute Data (aka Discrete Data): Attribute data refers to categories or counts that can only be described in whole numbers; i.e. you can’t have half a defect or half a customer. This type of data is the opposite of continuous or variable data (temperature, weight, distance, etc.). Typical Attribute Data refers to the number of defects, number passed vs. number failed as well as the counts of different categories; i.e. number blue, number red, number yellow, etc. Attribute data can be represented in percentages and ratios such as 2.1 guests per hotel room or a 75% occupancy rate, but the source unit, the guest, can still not be truly divided.

Autonomation (aka Jidoka): Autonomation describes a brand of automation where a machine stops itself if there is an abnormal situation. This technique was invented by Sakichi Toyoda back in the 1896 so that his power loom invention would stop and and allow workers to intervene and fix the issues. The 4 steps in Jidoka are: 1. Detect the abnormality 2. Stop the machine 3. Fix what is wrong 4. Find and solve the root cause

To learn more about Autonomation, please register for our Lean Six Sigma Black Belt Training & Certification course.

Average (aka Mean): The Average is one of the measures of "central tendency" in a data set. Calculating an average involves determining sum of a list of numbers and then dividing the sum by the number of numbers in the list. Averages don't take process variation into consideration.

Balanced Scorecard: A Balanced Scorecard is a one-page graphical display of key metrics using charts, graphs and informational color coding. The Scorecard is a type of organizational Dashboard where traditional financial metrics are balanced with measures of employee engagement, operational capability as well as customer satisfaction. The words “Dashboard” and “Scorecard” are often used interchangeably but Dashboards are more commonly associated with graphical displays of measures for a specific process or one quadrant of a Balanced Scorecard. To learn more about Balanced Scorecards, please register for our Lean Six Sigma Black Belt Training & Certification course.

Bartlett’s Test: Bartlett’s test is a hypothesis test that determines whether a statistically significant difference exists between the variances of two or more independent sets of normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. To learn more about Bartlett's Test, please register for our Lean Six Sigma Black Belt Training & Certification course.

Baseline Measure: A Baseline Measure results from data collected to establish the initial capability of a process to meet customer expectations. By collecting a baseline prior to making any changes to the process it is possible to determine if solutions implemented later on have the desired impact.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 3 Batching: Batching is the practice of making large lots of a particular item to gain economic efficiencies. Although the assumption is that it increases efficiency, batching increases total cycle time and increases the waste of waiting both internally and for the customer. Batching is considered the opposite of the concept of "Single-Piece-Flow" where the goal is to use the smallest batch possible with the optimal size being one unit.

Black Belt: A Black Belt is the second highest level of training for a Six Sigma practitioner; Master Black Belt is the highest. A Black Belt devotes 100% of their time to Six Sigma and focuses the execution of specific Six Sigma process improvement projects. In addition to project work, they are often assigned as a mentor to one or more Green Belts. To become a Black Belt, please register for our Lean Six Sigma Black Belt Training & Certification course.

Black Belt Project Storyboard: Project Storyboards are ready-to-go project overviews. They communicate a success story of process improvement projects and highlight the project as an example of real world application of Lean Six Sigma tools. The Storyboard also shares lessons learned so that others can learn from mistakes and replicate success. To learn more about Black Belt Project Storyboards, please register for our Lean Six Sigma Black Belt Training & Certification course.

Black Belt Tollgate Checklist: The Black Belt Tollgate Checklists outline the deliverables for each Phase of DMAIC. Each Phase deliverables must be completed before moving onto the next Phase. There are companion tools and templates for each of the deliverables. To learn more about Black Belt Tollgate Checklists, please register for our Lean Six Sigma Black Belt Training & Certification course.

Bottleneck: A Bottleneck is a step in the process where the process is limited in the volume it can handle. This is often the result of specialization, task imbalance or other constraints on capacity. Bottlenecks constrain the process and limit the ability of the process to flow at the rate of customer demand.

Box Plot (aka Box and Whisker Plot): A Box Plot, or Box and Whisker Plot, is a graphical view of a data set that is divided into fourths or “quartiles.” It shows the center and spread of a data set but is most useful when comparing two or more “strata” or data sets such as the cycle time for two different departments.

Brainstorming: Brainstorming is a free-thinking group method for generating ideas to handle a challenging situation. An underlying maxim for Brainstorming is “from quantity comes quality.” The primary objective of Brainstorming is to encourage innovation and out-of-the-box thinking. To achieve this goal, the Brainstorming session is performed with no editing: analysis, discussion, and criticism are allowed only after the session.

Business Case: A Business Case is a broad statement that helps sell or justify a specific improvement opportunity to the senior leadership or stakeholders in an organization. This is generally part of a Lean Six Sigma Project Charter. A Business Case defines how the customer is negatively impacted, how long they’ve been impacted, and the benefits of making of an improvement–or, conversely, the risks of not doing so. This is done by tying the improvement opportunity to the organization’s business objectives, which include their overall business strategy, customers, and values.

C Chart: C Charts are Control Charts designed for tracking the count of defects for discrete data in consistently sized sub- groups. To learn more about C Charts, please register for our Lean Six Sigma Black Belt Training & Certification course.

Catchball: Catchball is an approach, inspired by Hoshin Kanri, designed to incorporate feedback from employees when determining organizational direction. It's often used when developing things like mission statements and goals with the expectation that leadership and employees "toss" and "catch" each other's ideas and collaborate on the end result.

Cause and Effect Diagram: A Cause and Effect Diagram is a structured brainstorming tool designed to assist improvement teams in listing potential root causes for an undesirable effect. Its name derives from its resemblance to the bones of a fish. It is also known as a Fishbone Diagram or an Ishikawa Diagram after its creator. Causes are often grouped into major categories, which are classically defined as the 6 Ms: Man/Mind Power (people), Methods (processes), Machines (technology), Materials (raw materials, information, consumables), Measurements (inspection), and Milieu/Mother Nature (environment). An additional 2 Ms are also sometimes used: Management/Money Power and Maintenance.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 4 Central Tendency: Central Tendency is the “center point” of a process distribution. It can be measured in one of three ways: Median (middle most data point in a sorted data set), Mode (data value repeated most often), and Mean (average).

Champion (aka Sponsor): A Champion is someone in a leadership position who helps a Green Belt or a Black Belt secure resources and overcome departmental barriers in pursuit of project goals. This person has "skin in the game,” cares about the process being improved, and regularly meets with and supports team leads.

Changeover Reduction: Changeover Reduction is the practice of dramatically reducing or eliminating the time to change from one method or unit to another. This concept is also known as Set-up Reduction or Single Minute Exchange of Die (SMED) where the goal is to reduce the changeover time to single digits or under 10 minutes. This was originally developed by Shigeo Shingo in order to reduce the time spent in setting up equipment or materials since setup does not add value.

Changeover Time: Changeover Time is the measurement of the cycle time from the moment the last good part of the previous process is produced to the moment first good part of the subsequent process is produced. Reducing changeover time is a key component of implementing a pull production system which operates with as little inventory as possible.

Check Sheet: A check sheet is a simple tally sheet used to systematically collect data on the frequency of an occurrence (e.g., the frequency of defects). Useful for all phases of DMAIC, Check Sheets are best used when the data can be collected by the same person or in the same location. It is particularly effective for identifying defect frequency, patterns of events, and possible defect causes.

Chi-Square Test: The Chi-Square Test is a hypothesis test that determines whether a statistically significant difference (aka variance) exists between two independent groups of discrete data, ruling out chance. It is useful for determining whether or not improvement implementations have been successful. This test is performed on proportions from different populations. To learn more about Chi-Square Tests, please register for our Lean Six Sigma Black Belt Training & Certification course.

Coaching Questions: The Coaching Questions list is a mentoring tool for Black Belts who are coaching Green Belts through process improvement efforts. To learn more about Coaching Questions, please register for our Lean Six Sigma Black Belt Training & Certification course.

Cockpit Chart (aka Dashboard): A Cockpit Chart is a high level, at-a-glance display of key performance indicators that are regularly monitored. Ideal for presenting to process owners, senior leadership and stakeholders, Cockpit Charts vary in composition but typically measure the performance of Processes, People, Innovation, and Finance.

Common Cause Variation: Common Cause Variation is a type of variation which is natural and inherent to a process. Common Causes act randomly and independently of each other, are difficult to eliminate, and often require changes to a process or system. The output of Common Cause variation generally conforms to a normal distribution and is stable over the time. Contrast this to Special Cause Variation, which often manifests as an outlier, shift, trend or some other signal on a graph and is therefore easier to identify and fix without significant modifications to a system.

Comparative Analysis: Comparative Analysis is a form of deductive logic that makes an item-by-item comparison using data and facts. This method is most useful when two similar processes yield significantly different results. Comparative analysis is a low impact, low effort way of discovering the elements within the processes that are responsible for the difference.

Contingent Actions: Contingent Actions are pre-planned steps scheduled to go into effect when defects or failures occur. They are designed to minimize damage and cost due to failures.

Continuous Data (aka Variable Data): Continuous Data refers to data that is measured on a continuum. It is data that is measured on an infinitely divisible scale (e.g., time, weight, and temperature) such that one half a unit still makes sense; half a minute, half a pound, etc. A defining characteristic of continuous data is that it requires a gauge or meter in order to be measured (clock, ruler, scale, thermometer, odometer, etc.). Note that Continuous/Variable Data is the opposite of Discrete/ Attribute Data, which cannot be infinitely divided and still make sense.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 5 Continuous Improvement: Continuous Improvement broadly describes ongoing, incremental efforts to improve products and processes. Continuous Improvement with Lean Six Sigma utilizes a data-driven approach and process analysis to solve problems.

Control Phase: The Control Phase is the last phase of DMAIC, and ensures that improved processes continue to work predictably and meet the customers’ expectations. In short, Control ensures any gains are maintained. During this phase the documentation is finalized, monitoring plans are put into place and response plans are designed in the case that process performance falls below acceptable levels.

Control Chart: Control Charts are time charts designed to display signals or warnings of special cause variation. Special cause variation, as distinct from common cause variation, refers to changes in process performance due to sporadic or rare events indicating that a process is not “in control.” The advantage of Control Charts is that they enhance the understanding of process variation making it easier to take action to reduce special cause variation and improve ongoing process performance. Graphically, they feature points that represent project mean or variation, and upper and lower Control Limits. The location of these points determines if a project is “out of control” and under the influence of common or special causes.

Control Chart Decision Tree: The Control Chart Decision Tree provides a visual method of figuring out which Control Chart to use given the data being plotted. The chart begins by asking whether the data is continuous or discrete and continues on either side of the tree with a series of branches based on the sample size or the way defects are being counted. By following the logic of the tree, users can determine the most useful Control Chart.

Control Plan: The Control Plan is a guide to continued monitoring of the process, and the response plan for each of the measures being monitored. These three elements have been initiated earlier in the process, but in the Control phase, the monitoring is reduced to key input, process and output measures that will provide critical leading and lagging indicators during the project tracking period after implementation.

Cost/Benefit Analysis: Cost/Benefit Analysis is a decision-making tool to compare costs (negative results) vs. benefits (positive results) of a proposed change to a process. The costs can include labor, equipment, materials and time, and the benefits often include increased customer satisfaction, increased revenue, cost avoidance and reduced cycle time.

Cost of Poor Quality (COPQ): Cost of Poor Quality (COPQ) quantifies the negative outcomes (costs) due to waste, inefficiencies and defects in a process. Cost of Poor Quality is often represented in dollar amounts (or as a percentage of gross sales), and is composed of both internal and external failures. The goal of any organization is to reduce COPQ to zero.

Countermeasure: A countermeasure is any action taken to offset or neutralize another action. Countermeasures differ from solutions because they suggest precise, tactical ongoing trial and error as opposed to a one-time, permanent fix. If a countermeasure is determined to be ineffective, another one can be developed and tested. Countermeasures are developed once a root cause has been verified.

Critic’s Club Worksheet: The Critic’s Club Worksheet provides a structured approach for building a helpful feedback network for any improvement effort. To learn more about the Critic's Club Worksheet, please register for our Lean Six Sigma Black Belt Training & Certification course.

Crosby’s 14 Steps to Quality Improvement: The 14 Steps to Quality Improvement are quality guru Philip Crosby’s recipe for long-term process improvement. His opinion was that these steps were the responsibility of management but involved the people who did the work. These steps provided guidelines as well as a method for communicating his Four Absolutes.

The 14 Steps to Quality Improvement: • Step 1: Management Commitment • Step 2: Quality Improvement Team • Step 3: Quality Measurement • Step 4: Cost of Quality Evaluation • Step 5: Quality Awareness • Step 6: Corrective Action

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 6 • Step 7: Establish an Ad Hoc Committee for the Zero Defects Program • Step 8: Supervisor Training • Step 9: Zero Defects Day • Step 10: Goal Setting • Step 11: Error Cause Removal • Step 12: Recognition • Step 13: Quality Councils • Step 14: Do It Over Again

Cross Functional Flowchart (aka Deployment or Swimlane Map): A Cross-Functional Flowchart is a process map that separates process steps by function, department or individual. This provides a visual that displays not just the steps in a process but also which individuals, group or department performs those steps. Each row or lane represents a different department or individual. This type of process map is helpful in terms of understanding who is accountable for each step and how many hand-offs there are between groups or individuals.

Cross-Training: Cross-Training is training different employees to perform different tasks outside of their original role. For example, training Worker A to do Worker B’s job, and training Worker B to do Worker A’s job. Cross-Training improves the flow of the process, enables the sharing of best practices and increases flexibility in managing the workforce.

Correlation Coefficient (aka Pearson Correlation): A Correlation Coefficient is a statistical concept expressed as the letter “r” that measures the strength and type of the relationship between two factors (‘X’ and ‘Y’). A Correlation Coefficient is a number between -1 and +1. An ‘r’ of +1 means that there is a perfect, positive correlation between X and Y and the changes in Y can be attributable to X. Conversely, an ‘r’ of -1 means that there is a perfect negative correlation between X and Y and the changes in Y can be attributable to X.

Customer: Broadly defined, a Customer is any person (or group of persons) that receives products or services. In the context of Lean Six Sigma, a Customer refers to anyone who receives the output (information, goods, services, etc.) of a process. Therefore, depending on the process, a Customer can include persons both internal and external to the organization or business.

Customer Focus: A Customer Focus is an emphasis on understanding the needs of a customer; in short, a Customer Focused organization understands what customers really care about. A proper Customer Focus results in increased satisfaction by identifying/anticipating their needs, adding value, and eliminating defects and waste.

Customer Requirements: Customer Requirements are the needs and expectations of the customer, discovered through a measurable, data-driven (“hard evidence”) approach.

Customer Value: Customer Value is a term that underlies the fact that the value of any given process step or output is defined by the customer. They key is to define what is of value to the customer and focus the process outputs and improvement efforts to provide that value.

Cycle Time: Cycle time is the measurement of the time elapsed from the beginning of a process or a step to its end. Reduction of cycle time focuses on bringing products and services to market faster in order to provide value to customers.

Dashboard (aka Cockpit Chart): A Dashboard is high level, at-a-glance display of key performance indicators that are regularly monitored. Ideal for presenting to process owners, senior leadership and stakeholders, Dashboards vary in composition but typically measure the performance of Processes, People, Innovation, and Finance.

Data Analysis: Data analysis is the practice of both determining how to display data and then the interpretation of the resulting data displays. Typical charting and graphing tools include Histograms, Time Charts, Pareto Charts, Control Charts, Scatter Plots as well as Bar charts and Pie charts. This analysis of displayed data is often a key step to finding clues to process issues.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 7 Data Collection Plan: A Data Collection Plan is a well thought out approach to collecting both baseline data as well as data that can provide clues to root cause. The plan includes where to collect data, how to collect it, when to collect it and who will do the collecting. This plan is prepared for each measure and includes helpful details such as the operational definition of the measure as well as any sampling plans.

Decisions: A decision represents a step in a process requiring time, expertise and a determination before moving forward. Decisions often add to the waste of “waiting” especially when only certain process participants have the expertise or permission to make the decision. The fewer decisions required in a process, the faster it flows.

Defect: A Defect is any process output, product, or service that does not meet customer requirements. Defects are one of the 8 Wastes.

Defect Opportunity: A Defect Opportunity is any possible defect that is important to the customer. Defect Opportunities can be present in any type of process, product, or service, but are restricted to those that are critical to the customer. E.g., if only 3 out of 5 total aspects of a widget are important to a customer, then the total defect opportunities is 3. In Lean Six Sigma, Defect Opportunities are useful in calculating DPO (Defects Per Opportunity) and DPMO (Defects Per Million Opportunities).

Defective: Defective is the term applied to any process, product, or service with one or more defects.

Define Phase: Define is the first phase of the DMAIC method, and involves defining the problem or opportunity, determining the voice of the customer/customer requirements, and outlining the project purpose/scope. This foundational phase paves the way for an improvement team to narrow and describe exactly what is being targeted for improvement. The goal(s) set during this phase define when a project can be considered successful.

Demand Leveling: Demand Leveling involves using external techniques to remove the variation when there are big swings in the volume of customer demand. Classic techniques involve bargains during off-peak hours or other incentives to effectively level demand.

Deployment Map (aka Swimlane Map or Cross-Functional Chart): A Deployment Map is a process map that separates process steps by function, department or individual. This provides a visual that displays not just the steps in a process but also which individuals, group or department performs those steps. Each row or lane represents a different department or individual. This type of process map is helpful in terms of understanding who is accountable for each step and how many hand-offs there are between groups or individuals.

Discrete Data (aka Attribute Data): Discrete data refers to categories or counts that can only be described in whole numbers; i.e. you can’t have half a defect or half a customer. This type of data is the opposite of continuous or variable data (temperature, weight, distance, etc.). Typical discrete data refers to the number of defects, number passed vs. number failed as well as the counts of different categories; i.e. number blue, number red, number yellow, etc. Discrete data can be represented in percentages and ratios such as 2.1 guests per hotel room or a 75% occupancy rate, but the source unit, the guest, can still not be truly divided.

Dispersion: Dispersion is a statistical concept that describes the variation between values in a data set. Dispersion is most commonly measured by standard deviation or variance; a large dispersion indicates widely scattered values, while a small dispersion indicates tightly clustered values.

DMAIC: DMAIC is a methodology for improving existing processes. DMAIC stands for Define, Measure, Analyze, Improve, and Control.

DMADV: DMADV is a methodology for designing new, non-existing processes. DMADV stands for Define, Measure, Analyze, Design, and Verify.

Documentation: Project Documentation is the deliberate preservation of process improvement work. Key outputs such as process charters, process maps, customer requirements, and charts and graphs are captured for multiple purposes; as a

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 8 display to leadership, as educational tools for process participants, as guides for team leaders and as a way to transfer best practices.

DOE (aka Design of Experiments): DOE, or Design of Experiments is an active method of manipulating a process as opposed to passively observing a process. DOE enables operators to evaluate the changes occurring in the output (Y Response,) of a process while changing one or more inputs (X Factors). To learn more about Design of Experiments, please register for our Lean Six Sigma Black Belt Training & Certification course.

DOE - One Factor At A Time (OFAT): One Factor At A Time is the simplest form of a Design of Experiments that enables operators to observe the changes occurring in the output (Y Response,) of a process while changing one input (X Factor). To learn more about DOE - One Factor At A Time, please register for our Lean Six Sigma Black Belt Training & Certification course.

DOE - Full Factorial: Full Factorial is a form of Design of Experiments that enables operators to observe the changes occurring in the output (Y Response,) of a process while changing more than one input (X Factors). This test highlights shifts in the average response or output associated with multiple factors. It also evaluates how factors in a process might interact. To learn more about DOE - Full Factorial, please register for our Lean Six Sigma Black Belt Training & Certification course.

DOE - Fractional Factorial: Fractional Factorial is a form of Design of Experiments that enables operators to observe the changes occurring in the output (Y Response,) of a process while changing more than one input (X Factors) without running every single potential treatment combination. This test highlights shifts in the average response or output associated with multiple factors with less time and effort than required for a full factorial experiment. It has a diminished ability to evaluate how factors in a process might interact. To learn more about DOE - Fractional Factorial, please register for our Lean Six Sigma Black Belt Training & Certification course.

Downstream: Downstream refers to any processes or activities that occur after a given process.

Defects per Million Opportunities (DPMO): Defects per Million Opportunities, or DPMO, is a metric that indicates the number of defects in a process per one million opportunities. DPMO is calculated by the number of defects divided by (the number of units times the number of opportunities), multiplied by one million.

Defects per Opportunity (DPO): Defects per Opportunity, or DPO, is a metric that indicates the number of defects in a process per opportunity. DPO is calculated by the number of defects divided by (the number of units times the number of opportunities).

Design Project: A Design Project involves the creation of a non-existent process and requires extensive benchmarking and collection of the Voice of the Customer. These projects are addressed by DFSS (Design for Six Sigma) or DMADV (Define, Measure, Analyze, Design & Verify).

Effectiveness: Effectiveness is a measurement that refers to how well a process output meets customer requirements. It is tied closely to customer satisfaction. Effectiveness is measured using both value-adding and non-value adding activities.

Efficiency: Efficiency measures the amount of resources used in maximizing the output of a process.

Efficiency & Effectiveness Matrix: The Efficiency & Effectiveness Matrix is tool used to balance the types of measurement applied to a process. The goal is to monitor data that indicates the effectiveness of a given process or how well it meets customer expectations as well as the efficiency of a process by monitoring the amount of resources required, materials used and time spent producing goods and services. This matrix facilitates the listing of all proposed measurement in order to uncover any imbalances in the Data Collection Plan. The goal is to pay attention to both kinds of measures in order to satisfy customer needs profitably.

Executive Summary: The Executive Summary is an overview of a Lean Six Sigma project for leadership review which highlights the resulting improvements. This one-page template summarizes the original business case, the project goal, a list of findings/improvements and a tally of the total project gains. The results featured are a mix of increased revenue, decreased

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 9 costs, decreased cycle time, decreased waste, increased customer satisfaction, etc. This summary is customarily the first page of either a Storyboard or an Executive Report of a completed improvement project. To learn more about the Executive Summary, please register for our Lean Six Sigma Black Belt Training & Certification course.

Extra-Processing: Extra Processing refers to the concept of adding more features or producing a product or service of higher quality than required by the customer. Extra-Processing is one of the 8 Wastes.

External Failure: An External Failure is any defective item, unit, or output that passes through an entire process and is received by the customer. External Failures lead directly to customer dissatisfaction. External Failures are very costly, as they must not only be fixed, but customer perceptions must be repaired by addressing the Voice of the Customer. Non-value added activities are usually involved, if not a cause of External Failures.

Facilitator: A Facilitator is an intermediary who helps parties involved in a process improvement project collaborate. Facilitators can either be a third party or a team member/leader. Their primary objectives are to: remain neutral, unbiased, and sensitive to all parties involved, encourage the free flow of opinions, drive Lean Six Sigma projects forward towards progress.

Failure Modes & Effects Analysis (FMEA): Failure Modes & Effects Analysis (FMEA) is a risk management tool that identifies and quantifies the influence of potential failures in a process. FMEA analyzes potential failures using three criteria: 1. Occurrence (failure cause and frequency) 2. Severity (impact of the failure) 3. Detection (likelihood of failure detection)

Once assessed, prioritized failures are addressed with mistake-proofing for preventable failures and contingency plans for unpreventable risks.

Fishbone Diagram: A Fishbone Diagram is a structured brainstorming tool designed to assist improvement teams in coming up with potential root causes for an undesirable effect. Its name derives from its resemblance to the bones of a fish. It is also known as a Cause and Effect Diagram or an Ishikawa Diagram after its creator.

Causes are often grouped into major categories, which are classically defined as the 6 Ms (or the 6 Ps): Man/Mind Power (People), Method (Process), Machines (Program), Materials (Product), Measurements (Policy), and Milieu/Mother Nature (Place).

Flow: Flow is the ideal state of processes such that units and services move through each process step at the rate of customer demand. This means there are no bottlenecks or other forms of waste in the process.

Flow Chart (aka Process Map): A Flow Chart is a step-by-step diagram that shows the activities needed to complete a process. Creating a Flow Chart is one of the first steps in a Lean Six Sigma process improvement project.

Focus Groups: Focus Groups are facilitated discussion sessions comprised of customers that help an organization understand the Voice of the Customer (VOC). Typical in-person Focus Groups are 1-3 hour sessions with no more than 20 customers.

Force Field Analysis: Force Field Analysis is a brainstorming method which pits “driving” (positive) and “restraining” (negative) forces that support or oppose an idea. In its simplest form, Force Field Analysis resembles a Pros & Cons chart, with driving forces listed on one side, and restraining forces listed on the other. A rating system can be used to identify the strengths of each of these forces, with the overall goal to maximize driving forces and minimize/eliminate restraining ones.

F-Test (aka Test for Two Variances): The F-Test is a hypothesis test that determines whether a statistically significant difference exists between the variance of two independent sets of normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. To learn more about F- Tests, please register for our Lean Six Sigma Black Belt Training & Certification course.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 10 Future State Map: The Future State Map is guide to the goal state of the process. This is generally projected out at 4 to 8 months from the Current State Map and provides a visual of how the process will flow when all identified forms of waste are removed and the process is streamlined. This helps to direct and focus improvement efforts.

Gallery Walk: Gallery Walks are a formal showcase for successful Lean Six Sigma Projects. Improvement teams create storyboards, posters, charts and graphs to demonstrate process gains to a larger audience. These events educate leadership and the broader organization while building momentum and reinforcing the problem-solving culture.

Gemba (aka Workplace): Gemba is a Japanese term that translates to the "real place" or where the work takes place. "Going to Gemba" is a philosophy that instructs management to spend time where real work occurs in order to build profound knowledge of the process.

Gemba Board (aka Process Walk Board): The Gemba Board is a method of collecting process issues and potential countermeasures that have been uncovered by the people working within the process. Once issues are surfaced they can be assigned to a person, a team or they may become the basis of a Rapid Improvement Event (aka Kaizen). Gemba Boards are also known as “Problem Boards,” “Waste Boards” or “Idea Boards.”

Gemba Walk (aka Process Walk): A Gemba Walk is an informational tour of the area where the work is taking place. A Gemba walk is a series of structured, on-site interviews with representative process participants with the goal of gaining a comprehensive understanding of the process. Interviews focus on detail such as process time, wait time, defect rates, root causes and other information that can lead to targeted improvements.

Gemba Walk Interview Sheet (aka Process Walk Interview Sheet): The Gemba Walk Interview Sheet is a simple data collection form, designed for transactional processes. It is used to ask pertinent questions during a Gemba or Process Walk.

Goal Statement: A Goal Statement states the desired results of a process improvement project. It is a fundamental part of any Project Charter. Goal Statements should be clearly and precisely written, with specific, measurable goals (e.g., Improve delivery time by 25%). Goal Statements are focused exclusively on the goal: they should avoid mention of causes or solutions.

Green Belt: A Green Belt is Six Sigma practitioner trained in DMAIC. They assist Black Belts and Master Black Belts in process improvement projects. Green Belts are generally not dedicated 100% to improvement projects but spend at least 20% of their time either participating on or running project teams.

Handoff: A Handoff is when a product or item “changes hands” between individuals or departments. Handoffs are prone to adding defects to a process.

Help-Hinder Worksheet: Help-Hinder is a method for surfacing team issues before they appear. The approach involves having each person describe three things; how they help the group, how they hinder the group, and how the group can get them back on track when they’re in “hindering” mode. This template allows the team to focus on one person at a time. To learn more about Help-Hinder Worksheets, please register for our Lean Six Sigma Black Belt Training & Certification course.

Hidden Plant: Hidden Plant, or Hidden Factory, is a term coined by Quality guru Armand Feigenbaum to point out the often un-tracked waste of rework. He discovered that up to 40% of the capacity at a typical manufacturing plant was spent on fixing what was not done right the first time.

Histogram: Histograms, also known as Frequency Plots, are a are visual displays of how much variation exists in a process. They highlight the center of the data measured as the mean, median and mode. They highlight the distribution of the data measured as the range and standard deviation and the shape of a Histogram indicates whether the distribution is normal, bi- modal, or skewed.

Historical Parameters: Historical Parameters are measurements that refer to baseline data. With Control Charts these are often used in order to display the original center line along with the Upper and Lower Control Limits. The idea is to maintain these parameters until the process has been changed. Once an improvement has been made, the process can be tracked

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 11 until it’s possible to calculate new parameters from the data. To learn more about Historical Parameters, please register for our Lean Six Sigma Black Belt Training & Certification course.

Hoshin Kanri: Hoshin Kanri, where "hoshin" means "compass needle" and "kanri" means "management," is a process of setting strategic goals and then working collectively at all levels to reach the agreed-upon goals. This is an element of Total Quality Control (TQC) outlined by quality guru Kaoru Ishikawa which promotes delegation of authority as a way of respecting the entire workforce.

Huddle Meeting: A daily meeting that is approximately 15 minutes long with direct reports.

Hypothesis Statement: A Hypothesis Statement is an educated guess about the suspected cause (or causes) of defects in a process.

I & MR Chart (aka X & MR or Chart): I & MR Charts are Control Charts designed for tracking single points of continuous data. They consist of two separate charts; “I” stands for the “Individual” Chart which tracks the individual data points (or pre- summarized data) and “MR” stands for “Moving Range” Chart which tracks the absolute value of the distance between each pair of consecutive data points. These are considered the most flexible of the Control Charts and are often used to track business performance data. To learn more about I & MR Charts, please register for our Lean Six Sigma Black Belt Training & Certification course.

Implementation Plan: The Implementation Plan provides a structure for detailing the action steps, due dates and people responsible for implementing solutions. To learn more about Implementation Plans, please register for our Lean Six Sigma Black Belt Training & Certification course.

Improve Phase: the Improve Phase is the fourth phase of the DMAIC process and focuses on identifying opportunities for improvement based on the discoveries uncovered in the data and the process in the Analyze Phase. Once potential solutions are identified, the are evaluated and selected for implementation. Risk assessment, piloting and verification that the changes had the desired impact take place prior to moving on to the Control Phase.

Impact Effort Matrix: The Impact Effort Matrix is a 2 x 2 grid that helps you assess solutions for their relative impact given the effort required. It provides a quick way to filter out solutions that might not be worth the effort. The best solutions are in the upper right quadrant, easy to implement but with substantial impact.

Infrastructure Project: An Infrastructure Project establishes key measurement systems with the goal of monitoring both Voice of the Customer as well as process capability. This is also referred to as Process Management and helps organizations focus improvement efforts.

Input: An Input is a resource (product, service, data, labor, etc.) that is added to a Process by a Supplier. Inputs are the second step of SIPOC which is a high-level map of the process. Inputs are often measured in terms of volume and quality to understand their impact on a process.

Input Measures: Input Measures are measures that describe an Input; they are generally related to the quality or quantity of the Input as dictated by the Supplier.

Institutionalization: Institutionalization is the set of changes to an organization that make any process improvement permanent. These changes not only include procedural ones, but cultural (employee attitude and behavior) changes as well.

Inspections: An inspection is a process step that has been created to determine if a product or service has any errors. If the inspector detects a mistake this leads to a rework step. Inspection adds time to a process and rework adds cost. The key is to mistake-proof the process such that inspections and rework are not necessary.

Internal Failure: Internal Failure refers to any defects in a process that are identified and eliminated before being delivered to the customer.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 12 Inventory: Inventory is the materials, parts, or units sitting unused in a process. Excess inventory before a process step indicates a bottleneck and maintaining more inventory than required ties up capital and takes up valuable storage area. Inventory is one of the 8 Wastes.

Jidoka (aka Autonomation): Jidoka describes a brand of automation where a machine stops itself if there is an abnormal situation. This technique was invented by Sakichi Toyoda back in the 1896 so that his power loom invention would stop and and allow workers to intervene and fix the issues. The 4 steps in Jidoka are: 1. Detect the abnormality 2. Stop the machine 3. Fix what is wrong 4. Find and solve the root cause

It is considered one of the pillars of the Toyota Production System.

Juran’s Trilogy: Quality great Joseph M. Juran clarified his concepts around quality by separating it into 3 distinct efforts: 1. Quality Planning: Engaging in upfront planning to produce the products and services that customers want 2. Quality Control: Evaluating how well the products and services meet customer expectations and measuring the gaps between performance and goals 3. Quality Improvement: Identifying the projects that will bridge any quality gaps and then training process improvement teams to tackle the projects

Just-In-Time (aka JIT): Just-In-Time is a system for producing and delivering the right items, at the right time, in the right place, and in the right amounts. This concept is integral to the idea of a Pull system.

Kaizen Event (aka Rapid Improvement Event): A Kaizen Event is also known as a Rapid Improvement Event. Kaizen is a Japanese word that combines the ideas of “change” and “goodness” which basically translates to “improve for the better.” In practice a Kaizen is a Rapid Improvement Event that generally spans from 1 to 5 days and involves key process participants focusing on solving a narrowly scoped process improvement opportunity. The difference between Kaizen and typical workshops is threefold: • The planning for the event is extensive • Leadership has given explicit approval for change • The agreed upon improvement takes place before the Kaizen event is completed

Kanban (aka signboard): Kanban is a Japanese term that translates to "card" or “board” and indicates some form of signal within a process. Kanbans are part of Just In Time (JIT) processing where either a physical or electronic device indicates that it’s time to order inventory, process a unit or move to the next step in a process.

Kano Model: Kano Model is a technique that categorizes customer requirements into three types: 1. Delighters 2. Satisfiers 3. Dissatisfiers

Delighters are features that customers don’t know they want, but are delighted to find them — “bonuses.” Satisfiers are features that customers are aware of and not necessary, but improve customer satisfaction. Dissatisfiers are features that customers absolutely require, the absence of which result in customer dissatisfaction.

Lead Time: Lead time is the measure of the cycle time from the moment a customer places an order to the moment they receive the desired goods or services.

Leader Huddle Meetings: Leader Huddle Meetings are regular (often daily) meeting with direct reports. The Huddle Meetings are conducted in front of the Process Performance Boards in order to work from a visual of organizational metrics. The meetings take about 15 minutes and are often referred to as “Stand Up” meetings to ensure they are completed quickly.

Leader Process Walks: When leaders go to where the work actually occurs to observe the process.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 13 Leader Standard Work (aka LSW): Actions, behaviors and tools that leaders use to build and sustain a Lean Culture.

Leader Task Boards: Leader Task Boards are a visual check system to review critical workplace items. It’s comprised of a list of tasks related to safety, quality, production, cost, Leader Standard Work and daily management. It’s a popular Visual Management tool that helps leaders monitor task completion at a glance.

Lean: Lean is a systematic method for the elimination of waste from a process with the goal of providing what is of value to the customer. Much of what constitutes Lean stems from tools developed at Toyota while creating the Toyota Production System. Although the Lean roots are in manufacturing and production environments, it is widely applied to transactional processes as well.

Lean Culture: Lean Culture refers to the combination of defining customer value, aligning around a common purpose, striving for perfection while at the same time respecting and developing employees. The idea is that there is more to process improvement than using a set of tools and concepts. The idea is that the people who do the work should be the ones who fix the processes. Lean culture results when in the quest to provide customer value, the leadership supports and promotes the building of the "problem solving muscle" of the workforce.

Lean Six Sigma: Lean Six Sigma is the name given to the combination of the top two process improvement methods, Lean and Six Sigma. Lean traditionally focuses on removing waste from the system with the objective of a streamlined process. Six Sigma focuses on reducing variation in the system with the focus on increasing predictability. Both models focus on the satisfying the needs of the customer by incrementally improving processes. The combination follows the DMAIC (Define, Measure, Analyze, Improve and Control) model and combines the best tools and concepts of both Lean and Six Sigma.

Levene’s Test: Levene’s Test is a hypothesis test that determines whether a statistically significant difference exists between the variance of two or more independent sets of non-normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. To learn more about Levene's Test, please register for our Lean Six Sigma Black Belt Training & Certification course.

Line Balancing: The practice of dividing work in a process in such a way as to produce an equal cycle time for each step or member of a process.

Management By Fact: Management By Fact uses data and measurements in decision-making. A cornerstone of Lean Six Sigma, it relies on quantitative analysis as opposed to “gut feel” to make smart, informed decisions.

Mann-Whitney Test: The Mann-Whitney Test is a hypothesis test that determines whether a statistically significant difference exists between the medians of two independent sets of non-normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. To learn more about the Mann-Whitney Test, please register for our Lean Six Sigma Black Belt Training & Certification course.

Master Black Belt: A Master Black Belt (aka a Coach) is the highest level of training for a Six Sigma practitioner. Master Black Belts not only guide improvement teams, but are responsible for identifying improvement projects.

Mean (aka Average): The Mean is one of the measures of "central tendency" in a data set. To calculate the mean is to determine sum of a list of numbers and then divide the sum by the number of numbers in the list. Means don't take process variation into consideration.

Measure Phase: The Measure Phase is the second phase of the DMAIC process. During this phase the effort is to determine key ways to measure the process, define each of the key measures and then form a plan to detail who will collect the data, in what quantity and where. This data used as a baseline of for the process and is then displayed and studied in the Analyze Phase.

Measurement Selection Matrix: A Measurement Selection Matrix helps validate and choose key measures by assessing the strength of their relationship to customer requirements.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 14 Measurement Systems Analysis: MSA is an experiment designed to assess various elements of data collection including the procedures of data collection, the measuring device or “gage” being used, the understanding of the operators and any factors that might cause variation. The goal of MSA is to reduce defects and variation within the data collection process itself.

Median: The Median is the middlemost point in a data set. It divides a data set in half by separating the lowest 50% of the values from the highest 50%. It is one of the measures of "central tendency" in a data set.

Mode: The Mode is the most frequently occurring value in a given data set. In a Histogram it appears as the tallest bar. The mode is a measure of "central tendency" in a data set.

MSA – Continuous Data (aka Gage R&R – Continuous): MSA for continuous data is an experiment designed to assess various elements of continuous or variable data collection including the reliability of the “gage” being used such as a scale, a timer, an odometer etc. The tests also focus on whether or not the operators observe the measurements the same way. These tests determine the level of variation within the data collection process itself. To learn more about MSA - Continuous Data, please register for our Lean Six Sigma Black Belt Training & Certification course.

MSA – Discrete Data (aka Gage R&R – Discrete): MSA for discrete data is an experiment designed to assess various elements of discrete or attribute data collection including the definition of the “standard” or reference, i.e. “good”, “pass” or “fail” and whether or not the operators interpret the standard the same way. These tests determine the level of defects and variation within the data collection process itself. To learn more about MSA - Discrete Data, please register for our Lean Six Sigma Black Belt Training & Certification course.

Mistake Proofing (aka Poka-yoke): Mistake-Proofing, also known as Poka-yoke, means to consciously and diligently try to eliminate defects by preventing human errors before they occur or create alarms to warn of potential defects.

Meeting & Project Roles: Meeting and Project Roles provides a simple structure for identifying members of a project team and/or duties during a team meeting. To learn more about Meeting & Project Roles, please register for our Lean Six Sigma Black Belt Training & Certification course.

Moment of Truth: The Moment of Truth is when a customer interacts with a process and forms an opinion (positive, negative, or indifferent) about that process.

Monitoring Plan: A Monitoring Plan is a data collection plan for checking the ongoing health of the improved process. It lists the measure, the targets for each measure, how each measure will be checked, how and who will check the measures. It sets the stage for the Response Plan.

Mood’s Median Test: The Mood’s Median Test is a hypothesis test that determines whether a statistically significant difference exists between the medians of two or more independent sets of non-normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. To learn more about Mood's Median Test, please register for our Lean Six Sigma Black Belt Training & Certification course.

Motion: Motion refers to the movement of employees involved in a given task. Motion refers only to the movement of the person as opposed to the unit and excess motion increases cycle time. Motion is one of the 8 Wastes.

Muda (aka Waste): Muda is the Japanese term for "waste" which refers to anything in a process that does not add value from the customer's perspective. The 8 Wastes are a comprehensive list of the most commonly found wastes in a process.

Multiple Regression Test: The Multiple Regression Test is a hypothesis test that determines whether there is a correlation between two or more values of X and the output, Y, of continuous data. It is useful for determining the level to which changes in Y can be attributable to one or more Xs. Multiple Regression produces a “prediction equation” that estimates the value of Y that can be expected for given values of one or more X values within the range of the data set. To learn more about Multiple Regression Tests, please register for our Lean Six Sigma Black Belt Training & Certification course.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 15 Multi-Voting: Multi-Voting is a voting/brainstorming technique that prioritizes ideas. Its primary goal is to reduce the range of options, thereby preventing “information overload”. Also known as N/3 voting, in Multi-Voting, N refers to the total number of ideas. Every team member is then given N/3 votes and instructed to vote on the most important ideas; the team member can only assign one vote per idea. E.g., if there are 30 ideas, each team member gets 30/3 or 10 votes each. Since there are less votes then there are ideas, the less important ideas will naturally be “weeded out”, thereby reducing the number of ideas the team must contend with.

New Procedure Audit: The New Procedure Audit provides an easy way to check for adaptation to the new way of doing things once a project is successfully completed. It serves as a remind for both you and the process participants.

Non-Utilized Talent: Non-Utilized Talent refers to the concept that employees are not being utilized to their full capability or, conversely that they are engaged in tasks that would be more efficiently done by someone else. Non-Utilized Talent is one of the 8 Wastes which is also known as the waste of intellectual capital.

Non-Value Adding Activities: Non-Value Added Activities refer to process steps that fail to meet one or more of the following criteria: • The step transforms the item toward completion (something changes) • The step is done right the first time (not a rework step) • The customer cares (or would pay) for the step to be done

Non-Value Adding Activities add to the cost of doing business. Typical Non-Value Adding activities include rework, inspection, movement and any of the 8 Wastes.

Normality Test (aka Anderson-Darling Test for Normality): The Normality Test is a statistical test that determines whether or not a data set is normally distributed. A normal distribution is often referred to as a “Bell Curve.” Whether a distribution is normal or not determines which tests or functions can be used with a particular data set. To learn more about Normality Tests, please register for our Lean Six Sigma Black Belt Training & Certification course. nP Chart: nP Charts are Control Charts designed for tracking the number of defective items for discrete data in consistently sized sub-groups. To learn more about nP Charts, please register for our Lean Six Sigma Black Belt Training & Certification course.

Null Hypothesis: The Null Hypothesis, known as H0, is the hypothesis statement that maintains there is no difference between two or more data samples. The burden of any hypothesis test is to disprove the Null. If there is a greater than 5% probability that the difference is due to chance, then the Null Hypothesis cannot be rejected and the Alternative Hypothesis should not be pursued. To learn more about Null Hypothesis, please register for our Lean Six Sigma Black Belt Training & Certification course.

One Proportion Test: The One Proportion test is a hypothesis test that can be used to determine whether a process is performing at the level of an established standard. It provides a way to determine if there is a statistically significant difference between the standard and a particular data set or whether the difference is due to random chance. To learn more about One Proportion Tests, please register for our Lean Six Sigma Black Belt Training & Certification course.

One-Sample Sign Test: The One-Sample Sign Test is a hypothesis test that determines whether a statistically significant difference exists between the median of a non-normally distributed continuous data set and a standard. It provides a way to determine if there is truly a difference between the standard and a particular data set median or whether the difference is due to random chance. To learn more about One-Sample Sign Test, please register for our Lean Six Sigma Black Belt Training & Certification course.

One Sample T-Test: The One-Sample T-Test is a hypothesis test that determines whether a statistically significant difference exists between the average of a normally distributed continuous data set and a standard. It provides a way to determine if there is truly a difference between the standard and a particular data set mean or whether the difference is due to random chance. To learn more about One Sample T-Tests, please register for our Lean Six Sigma Black Belt Training & Certification course.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 16 One-Way ANOVA: The One-Way ANOVA Test is a hypothesis test that determines whether a statistically significant difference (aka variance) exists between the averages of two or more independent sets of normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. To learn more about One-Way ANOVAs, please register for our Lean Six Sigma Black Belt Training & Certification course.

Operational Definition: Operational Definitions describe the terms used within measures such as “accurate” or “complete” and if it’s a time-based measure, they include the stop and start points. These detailed description of each measurement are designed to ensure that each measurement is interpreted the same way by different people. They are key to insuring the integrity of any measurement system.

Output: An Output is any resource (product, service, data, labor, etc.) that is the result of a process. In a Process, the Output occurs at the end. Likewise, an Output is the last step of SIPOC.

Output Measures: Output Measures are measures that describe an Output.

Overproduction: Overproduction means producing something faster or in more abundance than needed. Overproduction is one of the 8 Wastes.

P Chart: P Charts are Control Charts designed for tracking the proportion defective for discrete data. These charts require both the total population as well as the count of defective units in order to plot the proportion.

P-Value: The P-Value is stands for "probability" which translates to "likelihood." It indicates how likely it is that something has happened to random chance. As an example, say someone conducts a hypothesis test to see if a process has truly improved. If the resulting P-Value is less than .05 then there is a less than 5% likelihood that the difference in the process is due to random chance. This means there's a 95% likelihood that the process has truly improved. To learn more about P-Values, please register for our Lean Six Sigma Black Belt Training & Certification course.

Parallel Processing: Parallel Processing indicates that two separate activities are taking place at the same time. This is a common improvement technique used to reduce the overall cycle time of any given process. This is the opposite of linear or serial processing.

Pareto Chart: A Pareto Chart is a Bar Chart of discrete data that displays the most significant categories of defects in descending order. Pareto Charts display both frequency of occurrences (bar graph) and cumulative total of occurrences (line graph) on a single chart. The left Y-Axis shows frequency of occurrences, while the right Y-Axis shows the total percentage.

Pareto Principle: The Pareto Principle is a quality principle that asserts that the majority of effects come from a minority of causes. AKA the 80/20 rule, 80% of effects come from 20% of causes.

PDCA (aka Plan Do Check Adjust): PDCA stands for Plan Do Check Adjust. It can also stand for Plan Do Check Act or Plan Do Study Act. It is a rapid improvement method based on testing a potential countermeasure in four quick steps; Plan or outline a problem, Do or apply countermeasure to address root cause, Check or assess if the problem is fixed and Adjust or fine tune the fix. It's a method developed by Dr. Deming that favors trial and error over extensive planning and trying for perfection up front with the assumption the each test allows for essential fine tuning. PDCA is often paired with A3 Documentation.

Percent Complete & Accurate: Percent Complete & Accurate refers to the percent of time units are received in finished and correct form according to the requirements of the customer of the process.

Perfection: Perfection aligns with the philosophy that process improvement is never finished. The pursuit of perfection is the constant updating and improving of all processes.

Pilot: A Pilot is a limited test of a Lean Six Sigma solution to a process. Performed during the Improve Phase, a Pilot is an opportunity to test Root Cause Hypotheses while minimizing risks and cost.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 17 Plus/Delta: Plus/Delta is a method of gathering immediate feedback from participants of a meeting, workshop or other event. Participants are asked to list the “Plusses” or what went well as well as the “Deltas” or suggestions they have for what to change for the next iteration. This is generally captured in two columns on a flip chart by a scribe or by participants writing each “plus” or “delta” on a sticky note.

PMO (aka Project Management Office): The PMO in any organization is the leadership team dedicated to monitoring key process performance metrics in order to develop a process improvement strategy. This group selects and assigns projects based on the health of core processes along with the needs of customers which ensures that the organization focuses its resources wisely.

Poka-yoke (aka Mistake Proofing): Poka-yoke is a Japanese term (poka: mistakes; yokeru: avoid) that means to mistake-proof a process. The goal is to consciously and diligently try to eliminate defects by preventing human errors before they occur or create alarms to warn of potential defects.

Pose & Answer: Pose & Answer is a technique to consider potential barriers to change and address them before they surface. The template outlines typical questions to consider before developing Stakeholder Communication Plans.

Preliminary Plan: A Preliminary Plan is a plan that lists goals and milestones for a process improvement project. Preliminary Plans are formed in the early stages of a project and should include important tasks, completion dates, responsibilities, and potential problems.

Preventative Action: A Preventive Action is any action that reduces the likelihood of a problem occurring in a process. It not only addresses the root cause of a problem, but prevents recurrence.

Problem Statement: A Problem Statement is a clear, concise statement about the symptoms of problems being encountered in a process. Included in the Charter, a Problem Statement avoids discussion about causes or solutions; its only goal is to state problem symptoms and their measurable effects.

Process: A Process is a stepwise combination of people, tools, materials, and methods where an Input is converted into an Output. A fundamental term, the goal of any Lean Six Sigma project is to streamline Processes by eliminating waste. This results in increased revenue and improved customer satisfaction.

Process Analysis: This a a broad concept that entails the study of detailed process maps. “As Is” process steps are scrutinized for bottlenecks, rework loops, missed handoffs, redundancy and other inefficiencies as potential root causes of defects and waste. Analysis of the process and data are the two main avenues used during root cause analysis.

Process Capability: Process Capability is a measurement of how well a Process’ Outputs meet Customer Requirements. Strong Process Capability indicates that a high percentage of Output meets Customer Requirements, while Weak Process Capability means the opposite. Weak Process Capability is usually due to unacceptably high variability of Output that falls outside Customer Requirements. To learn more about Process Capability, please register for our Lean Six Sigma Black Belt Training & Certification course.

Process Capability Indicators: Process Capability Indicators measure how closely Process Outputs align within customer specifications when using continuous data (time, weight, volume, etc). These measures involve comparisons of standard deviation and process mean to customer requirements. Cpu, Cpl and Cpk are the capability measures for continuous data, with higher values being more desirable. Any number less than one indicates a process that is not currently capable.

Process Improvement: Process Improvement refers to the continuous, gradual reduction of defects, errors, costs, and wasted time in a process.

Process Improvement Project: A Process Improvement Project is an effort to incrementally reduce cost, cycle time, variation or defects within a process. These efforts involve a problem where the root cause and solution are unknown. These efforts can be addressed by DMAIC (Define, Measure, Analyze, Improve & Control) or PDCA (Plan, Do, Check, Adjust) improvement methods.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 18 Process Management: Process Management is ongoing, high-level monitoring of processes. Process Management uses important key measures that provide feedback about the overall “state” of a process.

Process Map: A Process Map is a step-by-step diagram that shows the activities needed to complete a process. Creating a Process Map is one of the first steps in a Lean Six Sigma process improvement project.

Process Measures: Process Measures are any and all measurements of a Process. Process Measures are critical to understanding not only the baseline state of a Process, but if (and if so, how much) improvements have been made due to Lean Six Sigma project.

Process Owner: The Process Owner is the person in charge of the improved Lean Six Sigma process. They are the people responsible for maintaining the process once it has been streamlined by a continuous improvement team. Their participation is essential to ensuring the ongoing monitoring and success of the process.

Process Partners: Process Partners are entities, agencies or departments that work together to provide a product or service to a customer. They can be organizations that are upstream or downstream from the process in question. Process partners are in the process collaborating with others to deliver the end product or service to the customer. They provide information, do the work and produce documents or materials that eventually reach the customers. Process partners might think they are the customer of another unit or agency, but in reality, they are process partners.

Process Performance Boards: Process Performance Boards are displays that enable leaders to visually track People, Quality, Delivery, Cost and Process Improvement. They enable leaders to answer questions such as, “Are we taking care of our people?”, “Are we efficient?” or “Are we effective?” These are forms of Visual Management often used during Leader Huddle Meetings to ensure the organization is on track.

Process Redesign: Process Redesign involves the overhaul of a current, non-capable process where incremental improvement would still fail to meet customer requirements. This is also referred to as Reengineering.

Process Redesign & Reengineering: Process Redesign is a significant reworking of a Process that (optimally) yields significant, measurable improvement in Output. Process Redesign is best described as “wiping the slate clean” to allow for more creative, sweeping changes. Reengineering is an even more significant variant of Process Redesign, sometimes increasing the scope to include the reworking of the entire business (as opposed to a process).

Process Time: Process time is a measure of the time a product is actually being worked on in a machine or by an employee in a work area.

Process Voices: The Process Voices templates captures the different, and often competing, requirements of any given process. This template enables understanding of the requirements of the business, the requirements of the customer, the requirements of employees and the requirements of the process itself. Understanding the needs and objectives of each of these critical groups encourages a balanced approach to process improvement.

Process Walk (aka Gemba Walk): A Process Walk is an informational tour of the area where the work is taking place. A Process walk is a series of structured, on-site interviews with representative process participants with the goal of gaining a comprehensive understanding of the process. Interviews focus on detail such as process time, wait time, defect rates, root causes and other information that can lead to targeted improvements.

Process Walk Board (aka Gemba Board): The Process Walk Board is a method of collecting process issues and potential countermeasures that have been uncovered by the people working within the process. Once issues are surfaced they can be assigned to a person, a team or they may become the basis of a Rapid Improvement Event (aka Kaizen). Process Walk Boards are also known as “Problem Boards,” “Waste Boards” or “Idea Boards.” The structure can differ but the underlying purpose is to surface and address process problems.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 19 Process Walk Interview Sheet (aka Gemba Walk Interview Sheet): The Process Walk Interview Sheet is a simple data collection form, designed for transactional processes. It is used to ask pertinent questions during a Gemba or Process Walk.

Project Charter: The Project Charter is a living document that outlines a process improvement project for both the team as well as leadership. Teams use the charter to clarify the process issue being addressed, the reason for addressing it and what “success” looks like for those working on it. It’s also used to clarify what’s not being addressed. It is the first step in a Lean Six Sigma project, and therefore takes place in the Define phase of DMAIC. The Project Charter is periodically reviewed and refined throughout the project. The elements of a Project Charter generally include the: Business Case, Problem Statement, Goal Statement, Team Members/Roles, and Constraints/Boundaries, and Project Scope.

Project Closure: Project Closure is the wrap up of all the good that came of an improvement project. It includes a summary of lessons learned, customer impact, financial savings along with a sign-off from the project sponsor.

Project Selection: Project Selection involves determining which process issue would make a good Lean Six Sigma project. Selection is based on the impact it could have on customer satisfaction, potential time savings, potential cost savings and how manageable the effort would be while still aligning with organizational strategy.

Project Selection Tool: The Project Selection Tool helps you determine which projects are good Lean Six Sigma projects based on the impact it may have on customers, what the potential time savings are, what the potential cost savings are, and how manageable the projects are.

Proportion Defective: Proportion Defective is the fraction of units that contain defects. Proportion Defective is a percentage value. It is calculated by dividing the number of defective units by the total number of units, and then multiplying by 100 to get a percentage.

Pull: Pull systems refer to the goal of having units “pulled” through the process at the rate of customer demand. The opposite of a Pull system is a “Push” system in which goods or services are prepared ahead of time potentially resulting in excess inventory or increased waste. JIT (Just In Time) and Kanban are part of Pull systems.

Push: Push systems refer to processes that rely on forecasting or the practice of creating excess goods and services to maintain a buffer. This method of meeting customer demand can result in unused goods and wasted labor. The goal of Lean Six Sigma is JIT (Just In Time) or Pull system. Quality: Quality describes how well a process consistently meets customer requirements.

Quality Circles: Quality Circles were invented by Dr. Ishikawa as a way to empower workers to enhance product design, make the workplace safer and improve the processes they worked on. Led by a trained facilitators, these work groups grew into what are know known as modern day Rapid Improvement Events, also known as Kaizens.

Quartile: A Quartile is a quarter of a data set. People divide data sets into quartiles in order to study things like the lowest performing 25% of a workforce, or the top 25% turn around times for shipping. The Box Plot is a great visual that makes use of quartiles.

Quick Win: A Quick Win or "Just-Do-It" project involves the implementation of a simple solution to a known problem. This type of effort addresses a known root cause and is generally contained within one department or workspace.

RACI: A RACI Matrix is a powerful tool that helps increase accountability for a project. RACI stands for Responsible, Accountable, Consulted and Informed. It provides structure and clarity to projects by listing action items, responsible people and follow-up items.

Range: The Range of a data set is determined by subtracting the lowest value or minimum from the highest value or maximum. Range is a measure of "spread" in any data set.

Rapid Improvement Event (aka Kaizen Event): A Rapid Improvement Event is also known as a Kaizen Event. In practice a Rapid Improvement Event generally spans from 1 to 5 days and involves key process participants focusing on solving a

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 20 narrowly scoped process improvement opportunity. The difference between Rapid Improvement Events and typical workshops is threefold; the planning for the event is extensive, leadership has given explicit approval for change and the agreed upon improvement takes place before the Rapid Improvement Event is completed.

Red Tag: A Red Tag is a labeling tool used in the Sort Phase of a 5S as employees try to determine what's necessary in a given workspace. They the place questionable items into a holding area and attach a red tag or label to each item. The information on a Red Tag can vary, but the goal is to determine if anyone thinks the item is necessary and, if so, in what quantity. Items are "red tagged" for a limited period of time and then given away, sold or recycled resulting in a less cluttered and more organized work area.

Redundancy: Redundancy is when the same steps are done more than once in a process. To reduce Redundancy, look for limitations causing multiple entry of the same data or materials.

Regression Test: The Regression Test is a hypothesis test that determines whether there is a correlation between two paired sets of continuous data. It is useful for determining if changes in Y can be attributable to a particular X. Regression produces a “prediction equation” that estimates the value of Y that can be expected for any given value of X within the range of the data set. To learn more about Regression Tests, please register for our Lean Six Sigma Black Belt Training & Certification course.

Repeatability: Repeatability is a measurement concept where a single individual measures the same results each time. Repeatability is closely linked with Reproducibility.

Reproducibility: Reproducibility is a measurement concept where different individuals measure the same results each time. Reproducibility is closely linked with Repeatability.

Response Plan: The Response Plan establishes a threshold or trigger level for each measure in the Monitoring Plan. When the process performance goes beyond a trigger level, the Response Plan details immediate and long-term actions that will help the process return to and maintain the desired performance.

Rework Loop: A Rework Loop is a situation where a step in a process is repeated in order to correct a defect; also known as backtracking. Rework Loops are work that must be done over and over. They often become an accepted part of the process as people get used to them over time. To find Rework Loops, look for places where large amount of work move back in the process to be fixed. Rework Loops are Non-Value Adding Activities and are undesirable, as they add to cost and cycle time.

Risk Management: Risk Management is a continual “look-ahead” process for minimizing the uncertainty and negative impacts of risks. Risk Management involves identifying, analyzing, planning for, monitoring, and controlling risks.

Rolled Throughput Yield (YRT): A Rolled Throughput Yield (YRT) is a percent that measures how many units “roll through” a process, first pass, without defects. This is a measure of internal efficiency where YRT estimates how likely a unit will go from input to output without requiring rework or scrap. YRT is calculated by determining the yield at each process phase, and then multiplying those yields by each other in decimal form. The resulting yield gives a more accurate assessment of internal waste as well as the odds of a customer experiencing an error.

Root Cause Analysis: Root Cause Analysis is the method of finding the source of process problems by uncovering their origin or “root.” This is in contrast to focusing on fixing the symptoms or effects of process issues. If a “root cause” is removed or neutralized then the undesirable effects will no longer impact the process in question.

Root Cause Hypothesis: Root Cause Hypothesis is an educated guess as to the cause of a problem in a process. Root Cause Hypothesis is part of the Analyze Phase in DMAIC. In order to form Hypotheses regarding the causes of process issues, one must conduct Root Cause Analysis which involves questioning and investigating to move past symptoms to the true root of the problem.

R&R: R&R refers to repeatability and reproducibility within a Measurement Systems Analysis. Repeatability refers to one person measuring the same unit more than once and observing the variation in values . Reproducibility refers to multiple

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 21 people measuring the same unit and observe the variation in values for that unit. To learn more about R&R, please register for our Lean Six Sigma Black Belt Training & Certification course.

Run Chart (aka Time Series Plot): A Run Chart is a time series plot that displays data in sequence over time. This kind of chart can display continuous or discrete data and generally appears with a median or average line.

Sampling: Sampling is a measurement technique where smaller amounts of representative data can be used to understand the larger population. The goal is to take the smallest amount of data possible while still being able to make statistically sound assessments. This avoids spending time and money analyzing an entire population of data when it’s not truly necessary. To learn more about Sampling, please register for our Lean Six Sigma Black Belt Training & Certification course.

Sampling Bias: Sampling Bias results when Samples are collected in such a way that they no longer represent the entire population. Typical sources of bias result from collecting data based on convenience or some preconceived judgements. This can result in data that does not represent the larger population which means decisions based on this data can be equally faulty.

Sampling Calculations (aka Sample Size Calculations): Sampling calculations are the formulas involved in Sampling that take into account a number of considerations including, the standard deviation of continuous data, the proportion defective of discrete data, the desired precision of the sample and the confidence level appropriate for the data being sampled. The goal of the sampling calculation is to determine the least amount of units that need to be sampled while still reflecting the entire population. To learn more about Sampling Calculations, please register for our Lean Six Sigma Black Belt Training & Certification course.

Scatter Plot: A Scatter Plot is a chart that shows the relationship between two variables (if any). A Scatter Plot is also known as an XY Plot since the variables are plotted on the X and Y axis. The strength and direction of correlation can be measured using a Correlation Coefficient.

Scientific Method: The scientific method is a process of research where a problem is identified, relevant data is gathered, a hypothesis is formed based on the collected data and the hypothesis is tested. If the theory proves to be false the cycle repeats. This method is the foundation for both continuous improvement methods PDCA (Plan-Do-Check-Act) and DMAIC (Define, Measure, Analyze, Improve and Control) with the addition of countermeasures to improve the designated process.

Scope: Scope is a clear statement that defines what is included (and, by exclusion, what is not included) in a Lean Six Sigma process improvement project. Scope is therefore part of the Define phase in DMAIC and is defined in the Project Charter. In other words, Scope sets the limits of what a process improvement project can accomplish.

Scrum: Scrum is an empirical, evidence-centered management process. Scrum focuses organizations on delivering workable products in short cycles to meet business needs.

Scrum Team: A scrum team is a self-organizing, cross-functional team that works with a Scrum Master and Product Owner to deliver working product(s) in short increments.

Seiketsu (aka Standardize): Seiketsu is the Japanese word for "Standardize" which is the fourth step in the 5S method. The goal is to establish standards for the first three steps in the 5S method such that all employees know how to maintain the workplace.

Seiri (aka Sort): Sieri is Japanese word for "Sort" which is the first step in the 5S method. The goal is to remove unnecessary items from the workplace and keep only what's needed in the appropriate quantities.

Seiso (aka Shine): Seiso is the Japanese word for "Shine" which is the third step in the 5S method. The goal is to sweep or clean the workplace and use cleaning as a form of inspection. This can refer to the shop floor or the office as well hard drives.

Seiton (aka Set in Order): Seiton is the Japanese word for "Set In Order" which is the second step in the 5S method. The goal is to make items easy to find in the areas they are needed to enable the flow of the process.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 22 Set in Order (aka Seiton): Set in Order, also known as “Seiton," is the second step in the 5S method. The goal is to make items easy to find in the areas they are needed to enable the flow of the process.

Setup Reduction: Setup Reduction is the practice of dramatically reducing or eliminating the time to change from one method or unit to another. This concept is also known as Changeover Reduction or Single Minute Exchange of Die (SMED) where the goal is to reduce the changeover time to single digits or under 10 minutes. This was originally developed by Shigeo Shingo in order to reduce the time spent in setting up equipment or materials since setup does not add value.

Seven Basic Quality Tools: The Seven Basic Quality Tools represent a list of basic process improvement tools and techniques. The list is generally attributed to Kaoru Ishikawa, a follower of Dr. Edwards Deming, who is also famous for popularizing the Fishbone or Ishikawa Diagram. In an effort to reduce the complexity of Statistical Process Control, and make it more accessible for the average worker, he compiled a shortlist of simple but powerful Lean Six Sigma tools. The list includes: 1. Cause & Effect Diagram (aka Fishbone Diagram) 2. Checksheet 3. Control Chart 4. Histogram 5. Pareto Chart 6. Scatter Diagram (aka Scatter Plot) 7. Stratification (often replaced with Flow Chart)

Shadow Boards: Shadow Boards are visual methods of storing tools or materials and are always placed where the work is being done. Each shadow board consists of outlines or “shadows" in the shape of individual items to make it obvious where each should be put away. The shadow board accomplishes two essential goals of the visual workplace at once: it provides guidance for where to store things while at the same time making it obvious when a tool or item is missing.

Shine (aka Seiso): Shine, also known as “Seiso," is the third step in the 5S method. The goal is to sweep or clean the workplace and use cleaning as a form of inspection. This can refer to the shop floor or the office as well hard drives.

Shitsuke (aka Sustain): Shitsuke is the Japanese word for "Sustain" which is the fifth step in the 5S method. The goal is to maintain the standards established in the previous 5S steps which generally involves audits of the work place.

Single-Piece-Flow: Single-Piece-Flow is the concept that products should flow from operation to operation in the smallest increment, with one piece being the ideal. The Single-Piece-Flow emphasizes that batching increases cycle time. The idea is that products should be pulled from the preceding operation as needed which prevents overproduction or excess inventory.

SIPOC: A SIPOC is a high-level view of a process which stands for Suppliers, Inputs, Process, Outputs, and Customers. Every Process starts with Suppliers who provide Inputs to the Process which results in an Output that is delivered to Customers.

Six Sigma: Six Sigma is a process improvement strategy that improves Output quality by reducing Defects. Six Sigma is named after a statistical concept where a process only produces 3.4 defects per million opportunities (DPMO). Six Sigma can therefore be also thought of as a goal, where processes not only encounter less defects, but do so consistently (low variability).

SMED (aka Single Minute Exchange of Die): SMED or "Single Minute Exchange of Die" is the practice of dramatically reducing or eliminating the time to change from one method or unit to another where the goal is to reduce the changeover time to single digits or under 10 minutes. This concept is also known as Set-up Reduction or Changeover Reduction. This was originally developed by Shigeo Shingo in order to reduce the time spent in setting up equipment or materials since setup does not add value.

Solution Parking Lot: Solution Parking Lots are lists of improvement ideas collected throughout the life of a project. They provide a good way to honor and encourage the good ideas of team members and stakeholders before the root causes have been established. Although many will become obsolete, the list provides valuable input for eventual solutions developed during the Improve Phase.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 23 Solution Selection Matrix: The Solution Selection Matrix provides a method of assessing the positive impact of each proposed solution on reaching the goal as well as the relative effort, time to implement and cost. Improvement teams rate each solution resulting in individual scores and then indicate whether they choose to implement the solution or not.

Sort (aka Seiri): Sort, is also known as "Seiri", is the first step in the 5S method. The goal is to remove unnecessary items from the workplace and keep only what's needed in the appropriate quantities.

Spaghetti Map: The Spaghetti Map allows users to document the setup of any work area with the goal of mapping the movement of individuals during the completion of a specific process. This template enables the documentation of the movement, the distance travelled as well as the time it takes to walk that distance during the completion of manufacturing as well as transactional processes. This tool gets its name from the tendency of a finished diagram to resemble cooked spaghetti.

Special Cause Variation: Special Cause Variation refers to variation in a process which is sporadic and non-random. All processes contain Common Cause Variation, but processes that exhibit Special Cause Variation do not perform in a predictable manner and are technically not in Control. Once Special Cause Variation has been identified it should be addressed specifically and fixed or planned for. Unlike Common Cause Variation, this is generally possible without significant modifications to a system.

Sponsor (aka Champion): A Sponsor is someone in a leadership position who helps a Green Belt or a Black Belt secure resources and overcome departmental barriers in pursuit of project goals. This person has "skin in the game", cares about the process being improved, and regularly meets with and supports team leads.

Statistical Process Control (SPC): Statistical Process Control is a quality control concept that uses statistical methods to monitor processes. SPC uses Control Charts to gather and analyze data, and helps to determine if processes are “out of control” and, if so, under the influence of Common or Special Causes.

Stakeholder: A Stakeholder is any individual who is affected by or can affect a process improvement project. In other words, a Stakeholder is anyone who has a “stake” in a project. Stakeholders’ interests should always be considered in project.

Stakeholder Analysis: A Stakeholder Analysis enables you to outline who has a vested interest in how a process performs. Remember that stakeholders do not receive the product or service. It helps you determine how and when to reach out and communicate with stakeholders to build buy-in, which is critical to a project’s success.

Standard Deviation: Standard Deviation is a statistical measure that shows the average amount that values vary (aka “Dispersion”) from the mean. A low Standard Deviation means that values cluster very close to the mean, while a high Standard Deviation means that values are spread out far from the mean.

Standard Work: Standard Work is a precise explanation of the current best practices for carrying out the steps of a process. It is a key component of Continuous Improvement since it supports the reduction of variation in how a process or process is performed. This addresses the problem of process participants developing their own preferred ways of completing any given task. The concept dictates that if there is no one “best” method being practiced then there is no way of achieving process excellence.

Standardize (aka Seiketsu): Standardize, also known as “Seiketsu," is the fourth step in the 5S method. The goal is to establish standards for the first three steps in the 5S method such that all employees know how to maintain the workplace.

Stop-Start-Continue: A change management tool called Stop-Start-Continue is an easy way to identify behaviors/actions that should stop or start, and behaviors/actions that organizations are already doing and should continue. This tool can be used anytime behavioral changes are desired. In order to create a blame-free environment, facilitate a discussion with the leadership team using the Stop-Start-Continue tool.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 24 Storyboard: Project Storyboards are ready-to-go project overviews. They communicate a success story of process improvement projects and highlight the project as an example of real world application of Lean Six Sigma tools. The Storyboard also shares lessons learned so that others can learn from mistakes and replicate success.

Stratification: Stratification is a data analysis technique where values are grouped into different layers (i.e., “strata”) in order to better understand data. Data can be stratified by who (type of person), what (data types), when (the time or date data was collected), and where (the location data was collected).

Subject Matter Expert: A Subject Matter Expert is a person who is an expert on a given topic or skill. In Lean Six Sigma, Subject Matter Experts show a high level of expertise in a specific process. They are particularly valuable in the Define phase of a process improvement project.

Supermarket: A Supermarket is inventory used in tandem with Kanbans as a Pull system to stock materials according to demand. The name comes from the type of shelving used in a supermarket where as one bottle of milk is removed from the shelf, another one rolls into place. Anyone viewing the shelf from behind can see exactly what’s been removed by a customer and how much inventory needs to be replaced. Supermarkets are located near the supplying process so process participants can see and respond to customer usage.

Supplier: A Supplier is any person or organization that provides an Input to a Process. A Supplier is the first step of SIPOC.

Survey: A Survey is a method of collecting data from Customers by asking questions. It is an important part in determine the Voice of the Customer.

Sustain (aka Shitsuke): Sustain, also known as "Shitsuke", is the fifth step in the 5S method. The goal is to maintain the standards established in the previous 5S steps which generally involves audits of the work place.

Swimlane Map (aka Deployment Map or Cross-Functional Chart): A Swimlane Map is a process map that separates process into lanes that represent different functions, departments or individuals. The process map is called a “swimlane” because the map resembles a pool with lanes identifying the different process groups.

System of Profound Knowledge: The System of Profound Knowledge outlines Dr. W. Edwards Deming's philosophy based on the view that all elements of an organization should work in concert together as an interdependent system. The four elements lay out a framework for managers to reduce costs while increasing quality, customer loyalty, worker satisfaction and, ultimately, profitability. Below are the four key parts of the System of Profound Knowledge: 1. Appreciation for a System 2. Knowledge of Variation 3. Theory of Knowledge 4. Psychology of Change

Taguchi Loss Function: The Taguchi Loss Function is an equation that measures the “loss” experienced by customers as a function of how much a product varies from what the customer finds useful. His idea rocked the quality world because the common wisdom at the time held that if products met internal measures they were “good” and if they fell outside the limits they were “defects.” Taguchi looked at variation from the eyes of the customer and decided to grade on a curve.

Taguchi Methods: The Taguchi Methods consist of a 3-pronged quality approach developed by the Japanese statistician Genichi Taguchi. The focus was on: 1. Better design ideas 2. Rigorous testing of the design 3. Reducing the impact of anything that would cause variation

His overall goal was to create a more robust product prior to full scale production. The Taguchi Methods were designed to deliver exactly what the customer wanted by reducing variation and lowering costs in the process.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 25 Takt Time: Takt is translated from the German word Taktzeit or “clock interval” meaning pace of production. Takt Time is the average time between the completion of one unit and the completion of the next. It’s used to determine whether or not a process can keep up with customer demand. Takt Time is calculated by dividing the time available (minutes of work/day) by the customer demand (units required/day).

Task Board: A task board is a visual management tool that can help identify if action items have been completed by turning task board cards from red to green.

Team Alignment Diagnostic: The Team Alignment Diagnostic is a template that guides a process improvement team in assessing how well they are working toward their purpose. The process is to assess team dynamics and then look to goals, roles and procedures to find the root cause of any misalignment. This allows a team to self-correct and perform at its best.

Test for Two Variances (aka F-Test): The Test for Two Variances is a hypothesis test that determines whether a statistically significant difference exists between the variance of two independent sets of normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues.

An example would be if Assembly Line A has product weights with a variance of 1 pound whereas Assembly Line B has product weights with a variance of 2 pounds and you want to determine if Line A truly has less variation or the difference is just due to random chance.

Theory of Constraints (aka TOC): The Theory of Constraints boils down to the idea that a process is only as good as its weakest link – and the weak links are bottlenecks. This idea was developed by Eliyahu Goldratt and made famous in his book, “The Goal,” a novel based on a production plant. Once the major bottleneck is discovered, the idea is to reduce or eliminate it knowing that another, lesser bottleneck will emerge in its place. This systematic approach to rapid improvement states that only by systematically addressing each successively smaller bottleneck will the company reach it’s financial goal.

Time Series Plot (aka Run Chart): A Time Series Plot is a graph that displays data in sequence over time. This kind of chart can display continuous or discrete data and generally appears with a median or average line.

Total Quality Control (aka TQC): Total Quality Control is a concept created by quality guru, Armand Feigenbaum, in the 1950s. He maintained that quality was not just the job of engineers or confined to production. TQC holds that every part of the company has to work in a coordinated way to serve the user or customer.

Total Quality Management (aka TQM): Total Quality Management was an organizational approach developed in the late 80's to create a culture of continuous improvement by focusing on customer satisfaction. The idea was that all levels and all members of an organization are responsible for improving the products, services and culture. Both Lean and Six Sigma build on the successes of TQM.

Toyota Production System (aka TPS): The Toyota Production System, a framework for conserving resources by eliminating waste, is considered the precursor to Lean Manufacturing. The two main concepts that drive “The Toyota Way” are Just-in- Time; only producing what is needed and not storing excess inventory and Jidoka; getting to immediate root cause when production runs into problems. This powerful combination is only possible by trusting and empowering employees to participate in the system.

Transportation (aka Touches): Transportation refers to the concept of the moves or "touches" to a unit or product as it flows through a process. This can refer to an email sent from one department to another or to materials being moved from one warehouse to another. Transportation is one of the 8 Wastes.

Tree Diagram: A Tree Diagram is a type of chart where a concept is successively broken down into subconcepts with increasingly higher levels of detail. It therefore resembles a tree in its finished state, with the main concept serving as the trunk, while subconcepts branch off.

The Four Absolutes of Quality: The Four Absolutes of Quality were developed by quality guru Philip Crosby as a way to promote the idea increased quality did not mean increased cost. Quality and cost were not in competition which he expanded on in his best-seller, “Quality Is Free.” The Four Absolutes:

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 26 1. Quality is defined as conformance to requirements 2. The system for causing quality is prevention, not appraisal 3. The performance standard must be Zero Defects 4. The measurement of quality is the Price of Nonconformance

Time Analysis: Process analysis becomes doubly powerful when combined with the calculation of how much time is spent at each step. Delays are often identified as the biggest source of waste in a process and Time Analysis pinpoints where in the process the time is being wasted.

Threats & Opportunities Matrix: A Threats & Opportunities Matrix is a simple 2 x 2 grid that captures the threats of not implementing a proposed solution and, conversely, the potential opportunities if the solution is accepted. This matrix is often completed with a particular Stakeholder group in mind and then it becomes part of Stakeholder Management efforts.

To-Be Maps: To-Be maps display the potential future state of a process after it has been analyzed for waste reduction. This version of a process map shows the results of streamlining efforts by removing rework loops, excess processing and other non-value adding steps. The resulting map has fewer steps than the presenting “As Is” or current map of the process.

TOC (aka Theory of Constraints): The Theory of Constraints boils down to the idea that a process is only as good as its weakest link – and the weak links are bottlenecks. This idea was developed by Eliyahu Goldratt and made famous in his book, “The Goal,” a novel based on a production plant. Once the major bottleneck is discovered, the idea is to reduce or eliminate it knowing that another, lesser bottleneck will emerge in its place. This systematic approach to rapid improvement states that only by systematically addressing each successively smaller bottleneck will the company reach its financial goal.

TPS (aka Toyota Production System): The Toyota Production System, a framework for conserving resources by eliminating waste, is considered the precursor to Lean Manufacturing. The two main concepts that drive “The Toyota Way” are Just-in- Time; only producing what is needed and not storing excess inventory and Jidoka; getting to immediate root cause when production runs into problems. This powerful combination is only possible by trusting and empowering employees to participate in the system.

TQC (aka Total Quality Control): TQC is a concept created by quality guru, Armand Feigenbaum, in the 1950s. He maintained that quality was not just the job of engineers or confined to production. TQC holds that every part of the company has to work in a coordinated way to serve the user or customer.

Two Proportions Test: The Two Proportions test is a hypothesis tests that can be used to determine whether the proportion defective of one strata of a process is statistically different from the proportion defective (or yield) of another strata of a process. It is useful for determining whether a particular strata or group could provide insight into the root cause of process issues. To learn more about Two Proportions Test, please register for our Lean Six Sigma Black Belt Training & Certification course.

Two Sample T-Test: The Two-Sample T-Test is a hypothesis test that determines whether a statistically significant difference exists between the averages of two independent sets of normally distributed continuous data. It is useful for determining if a particular strata or group could provide insight into the root cause of process issues. To learn more about Two Sample T- Tests, please register for our Lean Six Sigma Black Belt Training & Certification course.

U Chart: U Charts are Control Charts designed for tracking the number of defects per unit for discrete data. To learn more about U Charts, please register for our Lean Six Sigma Black Belt Training & Certification course.

Upstream: Upstream refers to any processes or activities that occur before a given process. The opposite of Downstream.

Value-Added Flow Analysis: Value-Added Flow Analysis combines two powerful tools into one. The Value Analysis differentiates steps that add value in the eyes of the customer from those that do not, and Flow Analysis calculates the time spent on each step. This makes clear the time and effort being spent on non-value adding activities, the cost of doing business, and sets the stage for reducing waste and streamlining the process.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 27 Value Adding Activities: Value Adding Activities are any activities that add value to the customer and meet the three criteria for a Value Adding Activity. The three criteria for a Value Adding Activity are: • The step transforms the item toward completion • The step is done right the first time (not a rework step) • The customer cares (or would pay) for the step to be done

Value Add & Cycle Time Analysis: Value and Cycle Time Analysis combines two powerful tools into one. The Value Analysis differentiates steps that add value in the eyes of the customer from those that do not, and Cycle Time Analysis calculates the time spent on each step. This makes clear the time and effort being spent on non-value adding activities and sets the stage for reducing waste and streamlining the process.

Value Analysis: Value Analysis involves assessing each process step through the eyes of the customer and determining whether the step is a Value Adding Activity (VA), a Non-Value Adding Activity (NVA) or a Value Enabling Activity (VE). To be considered Value Adding (VA), the step must meet all of the three of the following criteria: 1. The step transforms the item toward completion (something changes) 2. The step is done right the first time (not a rework step) 3. The customer cares (or would pay) for the step to be done

If a step fails to meet any one of these criteria, it is considered either: • Non-Value Adding (NVA): Typical Non-Value Adding Activities include rework, inspection, movement and any of the 8 Wastes. • Value Enabling (VE): These activities are considered NVA from a customer perspective but can be satisfying a regulatory/ compliance issue or other business requirement. These are also called Non-Value Added but Necessary, Business Value Add or Non-Value Added but Required.

Uncovering and reducing NVA or VE steps that don’t add value in they eyes of the customer is key to improving both the effectiveness and efficiency of a process.

Value Enabling Activities: Value Enabling Activities are activities that do not directly add value to a customer, but must be performed to allow Value Adding Activities later on. They are therefore necessary precursors to Value Adding Activities. Other terms used for Value Enabling activities are “Non Value Add but Required” or “Business Value Add.”

Value Stream Map: A Value Stream Map visually displays the flow of steps, delays and information required to deliver a product or service to the customer. Value Stream Mapping allows analysis of the Current State Map in terms of identifying barriers to flow and waste, calculating Total Lead Time and Process Time and understanding Work-In-Process, Changeover Time, and Percent Complete & Accurate for each step.

Variation: Variation describes how consistent a process’ output is. Reducing variation is a fundamental goal of Lean Six Sigma, as it means more consistent results that meet customer requirements. Variation can be divided into two types: Common Cause and Special Cause.

Visual Management: Visual Management is the practice of making the workplace visually easy to work in. This includes making it easy to identify units and materials, updating people on the process status, showing how the process works and providing a visible process plan for future steps.

VOC Translation Matrix: The VOC (Voice Of the Customer) Translation Matrix is a tool that helps teams take customer comments, determine the underlying issues represented by those comments and use this information to develop measurable customer requirements. The goal of this tool is to translate often vague comments into something concrete so that the team can focus their efforts to meet these requirements.

Voice of the Customer (VOC): Voice of the Customer (VOC) is data that represents the needs and wants of your customers. VOC data is collected through various means, including Surveys and Focus Groups.

Wait Time: Wait time is a measure of the time a unit or service is idle within a process. Waiting is considered the most common of the 8 Wastes.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 28 Waiting: Waiting happens internally when one colleague is idle because they are unable to proceed with a process step until another colleague or department provides the necessary parts or information in order to continue. This also refers to the resulting delay before customers receive their desired goods or services. Waiting is one of the 8 Wastes.

Waste Walk: A Waste Walk is a structured visit to a workspace or process to observe and identify any of the 8 Wastes (Defects, Overproduction, Waiting, Non-Utilized Talent, Transportation, Inventory, Motion and Extra-Processing) in order to discover and prioritize Continuous Improvement opportunities.

Water Beetle (aka Water Spider): Water beetle or water spider is a term used to describe the person responsible for maintaining correct inventories on the production line so that line employees have no need to stop working. The term stems from the fast movement of this employee as they check stock levels and resupply each station as necessary.

Weighted Criteria Matrix: A Weighted Criteria Matrix is a decision-making tool that evaluates potential options against a list of weighted factors. Common uses include deciding between optional solutions or choosing the most appropriate software application to purchase. Typically, a Weighted Criteria Matrix takes the form of a table, with multiple options listed across the top and criteria (e.g., Ease of Use, Cost, Time to Implement) listed in the leftmost column. The criteria are weighted relative to their perceived importance and then each option is scored against each criteria. The process of scoring the options turns this into a powerful communication tool regardless of the final scores.

White Belt: White Belt is the name of the beginner role within Lean Six Sigma. This is someone who has had an overview of DMAIC, the reasons to use it, how to use it, the roles within it and some basic concepts like the 8 Wastes.

WIP (aka Work-In-Process): WIP refers to the number of items currently waiting to be worked on in a process. WIP can refer to the number of items in an inbox or queue. Often referred to as "inventory" in manufacturing processes.

Work Cell Design: Work Cell Design is a method of organizing physical operations by process flow as opposed to function in order to maximize value-added steps. The most classically efficient work space shape is the U-shape which minimizes the wastes of transportation, motion and waiting.

Work-In-Process (aka WIP): Work-In-Process refers to the number of items currently waiting to be worked on in a process. Work-In-Process can refer to the number of items in an inbox or queue. Often referred to as "inventory" in manufacturing processes.

Workload Balancing: Work Balancing or Line Balancing involves balancing the work rate between sub-processes in order to efficiently match customer demand or takt time. The idea is that process is always on time but never idle.

X Bar & R Charts: X-Bar & R Charts are Control Charts designed for tracking the average of sub-grouped continuous data. They consist of two separate charts; “X-Bar” stands for the “Average” Chart which tracks the mean of sub-groups of up to 6 data points and “R” stands for “Range” Chart which tracks the difference between the maximum and minimum values in the subgroup. These charts are not as sensitive to non-normal data as the I & MR Charts. To learn more about X Bar & R Charts, please register for our Lean Six Sigma Black Belt Training & Certification course.

X-Bar & S Charts: X-Bar & S Charts are Control Charts designed for tracking the average of large sub-groups of continuous data. They consist of two separate charts; “X-Bar” stands for the “Average” Chart which tracks the mean of sub-groups of 6 or more data points and “S” stands for the “Standard Deviation” Chart which calculates the standard deviation within each subgroup. These charts are useful for detecting shifts in the “center” or average with large subgroups. To learn more about X- Bar & S Charts, please register for our Lean Six Sigma Black Belt Training & Certification course.

Y=f(x): Y=f(x) means that the Project Y is impacted by factors, x's, within the process and inputs to the process. This semi- equation is helpful as a way of framing root cause analysis. Once the Project Y is selected, the goal is to understand the major factors, x's, and make changes to those elements to improve the Y.

P300-10 COPYRIGHT 2019 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 29 Yellow Belt: Yellow Belt is the name for Lean Six Sigma novice. This is someone who has had enough process improvement training that they have a grasp of the vocabulary and could participate on an improvement team if asked. Their education is often supplemented with Just-In-Time training from Green Belts and Black Belts and they are able to spot and submit improvement opportunities within their work processes.

Yield: Yield is a measure of the percent of "good" units coming out of a process. This could refer to the percent of completed sales, the percent of good products or the percent of completed applications. It is the opposite of Proportion Defective.

Zero Defects: Zero Defects was a goal coined by quality guru Philip Crosby which challenged management to commit time and effort to doing things right the first time. This type of goal worked against the conventional wisdom that human error was inevitable.

Zero Quality Control: Zero Quality Control is a method, popularized by the quality guru Shigeo Shingo, that proposes removing the need for inspection by eliminating the possibility of human error. Mr. Shingo was a proponent of Poka-yoke or Mistake Proofing processes which is a key component to removing the need for inspection. The idea is that by removing the root causes of errors, it is possible to achieve zero defects.

View our online Lean Six Sigma Glossary including visuals & infographics at: https://goleansixsigma.com/glossary/

For a better understanding of these terms and an advanced understanding of Lean Six Sigma, please check out our Green Belt and Black Belt Training & Certification courses.

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