Lean Six Sigma Glossary Brought to You By

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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 overview of Lean Six Sigma, check out our Green Belt Training & Certiﬁcation.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 1 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.

5S: 5S is a workplace organization technique composed for ﬁve primary phases: Sort, Set In Order, Shine, Standardize, and Sustain.

8 Wastes (aka Muda): The 8 Wastes; Defects, Overproduction, Waiting, Non-Utilized Talent, Transportation, Inventory, Motion, and Extra- Processing are a list of the most common reasons for excess cycle time in a process. 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 piece of paper, but in the Lean world it is a one page project report. This one-pager contains the problem, the analysis of the process, the identiﬁed root causes, potential solutions and action plan all on a large sheet of paper. The practice of using A3s forces project teams to focus their efforts while at the same time makes it easy for others to review their work.

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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 2 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.

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.

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.

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.

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.

Baseline Measures: Baseline measures are data collected to establish the initial capability of a process to meet customer expectations. By collecting this data prior to making any changes to the process it is possible to determine if solutions implemented later on have the desired impact.

P300 COPYRIGHT 2015 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.

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 is a graphical view of a data set which involves a center box containing 50% of the data and “whiskers” which each represent 25% of the data. It divides the distribution of a data set into four portions: the lower “whisker” contains the ﬁrst quartile or 25% of the data, the lower segment of the box contains the second quartile, above the median line to the top of the box is the third quartile and the upper “whisker” represents the 4th quartile of data. The midpoint of the box represents the median of the data set, and its position indicates if there is any skew to the data.. The endpoints of the top and bottom whiskers represent the largest and smallest data points, respectively. Outliers, or data that does not ﬁt the predominant distribution, are represented by asterisks at the top and bottom of the box plot. This graph is most useful when comparing two or more strata or data sets.

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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 4 Cause and Effect Diagram: A Cause and Effect Diagram is structured brainstorming tool designed to assist an improvement team in listing potential causes of a specific effect. It is also known as an Ishikawa Diagram, for its creator, or a Fishbone Diagram, for its resemblance to the bones of a fish. 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.

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).

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.

Checksheet: 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. An example would be: Assembly Line A produced 462 good parts and 265 defective parts whereas Assembly Line B produced 538 good parts and 321 defectives and you want to determine if Line A is truly better or the difference is just due to random chance.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 5 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.

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.

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 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.

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

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 7 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.

Data Collection Plan: This is a well thought out approach to data collection that includes information around where to collect data, how to collect it, when to collect it and who is responsible. 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.

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.

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 display to leadership, as educational tools for process participants, as guides for team leaders and as a way to transfer best practices.

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).

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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 10 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 system. FMEA analyzes potential failures using three criteria: 1. Occurrence (failure cause and frequency) 2. Severity (determine failure mode and its effect) 3. Detection (likelihood of failure detection).

Fishbone Diagram: A Fishbone Diagram is structured brainstorming tool designed to assist an improvement team in listing potential causes of a specific effect. It’s name derives from its resemblance to the bones of a fish. It is also known as an Ishikawa Diagram, for 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.

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.

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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 11 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.

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.

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 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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 12 Handoff: A Handoff is when a product or item “changes hands” between individuals or departments. Handoffs are prone to adding defects to a process.

Histogram: Histograms are frequency charts. In Lean Six Sigma, they show the distribution of values produced by a process. In other words, a histogram is a visual display of how much variation exists in a process.

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.

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.

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, Decisions, & Approvals: Inspections, Decisions and Approvals add time to the process and, unfortunately, they are not always the best methods of insuring quality. Identifying where Inspections, Decisions or Approvals occur in the process and assessing the value of those steps provide streamlining opportunities.

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

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 13 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.

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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 14 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.

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.

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.

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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 15 Measurement Selection Matrix: A Measurement Selection Matrix helps validate and choose key measures by assessing the strength of their relationship to customer requirements.

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.

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 detailed data collection plan that supports the Control Plan. It lists the measure, the targets for each measure, how the measure will be checked, how often the measure will be checked, and who will check the measure.

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.

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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 16 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.

Null Hypothesis: The Null Hypothesis, known as HO, 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 is cannot be rejected and the Alternative Hypothesis should not be pursued.

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.

Pareto Chart: A Pareto Chart is a quality chart of discrete data that helps identify the most signiﬁcant types of defect occurrences. It does this by showing both frequency of occurrences (bar graph) and cumulative total of occurrences (line graph) on a single chart. The type of occurrences are organized on the X-Axis from highest to lowest frequency. Respectively, 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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 17 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

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.

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.

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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 18 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.

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 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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 19 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 & 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 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 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 an official, basic document that outlines a process improvement project. It is the first step in a Lean Six Sigma project, and therefore takes place in the Define phase of DMAIC. However, it can be periodically reviewed, refined, and revised throughout the project. The elements of a Project Charter can vary, but they generally include the Business Case, Problem Statement, Goal Statement, Team Members/Roles, and Constraints/ Boundaries, and Project Scope.

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 unites by the total number of units, and then multiplying by 100 to get a percentage.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 20 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.

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.

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 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.

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.

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 for a process establishes, for each measure being monitored, a threshold or trigger level for that process measure. When a process performance hits a trigger level, the response plan details what immediate and long-term actions must be taken to return to and maintain the desired performance.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 21 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 Throughout 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 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 the true root of the problem.

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.

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.

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 of correlation on a Scatter Plot can be measured using a Correlation Coefﬁcient.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 22 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.

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.

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.

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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 23 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. It stands for Suppliers, Inputs, Process, Outputs, and Customers. A SIPOC is ordered from start to ﬁnish. In conversational English, 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).

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 24 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.

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 Chart: The Spaghetti Chart is a graphical tool used to track the movement of people and distances travelled in a work process. Spaghetti charts track movement in office spaces as well as manufacturing shop floors. This tool name derives 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.

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

Standard Work: Standard Work refers to the goal of eliminating the variation in how a process or process step is completed. This is in response to 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.

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: Supermarket refers to a visual stocking system used in tandem with Kanban or reorder signals in a Pull system. 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.

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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 26 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 steps by function, department or individual. Each lane represents a different department or individual. The process map is called a swim lane because the map resembles a pool with lanes identifying the different groups in the process.

Takt Time: Takt is translated from the German word Taktzeit or "meter". The takt time is the average unit production time needed to meet 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.

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.

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.

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

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 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.”

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 28 Value Stream Map: Value Stream Mapping is a technique for identifying and eliminating waste from a process. A Value Stream Map visually maps the flow of steps, delay, and information required to deliver a product or service; this is called a “Current State” Map. Value Stream Mapping then analyzes the Current State Map in terms of 1) creating flow and 2) eliminating waste, and creates a more efficient Future State Map.

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.

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.

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.

P300 COPYRIGHT 2015 GOLEANSIXSIGMA.COM. ALL RIGHTS RESERVED. 29 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.

Work Cell Design: Work Cell Design is a method of organizing physical operations in the most efﬁcient combination to maximize value added steps and to minimize waste. The most classically efﬁcient work space shape is the U-shape which minimizes the waste of motion.

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.