Definitions

Affinity Diagram

Organizes a large number of ideas into their natural relationships; used after brainstorming.

Alpha Risk

Probability of rejecting the null hypothesis (H0) when it is true; Type I Error, typically set at 5%.

Alternate Hypothesis (Ha)

The statement you aim to prove; indicates a change or effect.

ANOVA (Analysis of Variance)

A hypothesis test used to compare means across two or more groups.

Assemble to Order

Products are assembled after receiving an order, using standard components.

Assignable Cause

Identifiable sources of variation not due to chance; can be corrected.

Autonomation (Jidoka)

Automation with a human touch; stops automatically when an issue occurs.

Autonomous Maintenance

Maintenance activities performed by operators themselves.

Baseline

Initial performance level used to compare improvements.

Black Belt

A Six Sigma expert who leads complex projects.

CDOV

Concept, Design, Optimize, Verify - a roadmap for DFSS (Design for Six Sigma).

Cell

Arrangement of workstations for continuous flow.

Champion

Executive sponsor who supports Six Sigma projects.

Change Over Time

Time taken to switch from producing one item to another.

Charter

A document that outlines project scope, objectives, and resources.

Common Cause

Natural variation in a process.

Confidence Interval

Estimated range for a population parameter with a certain confidence level.

Control Plan

A document detailing how to control processes and products.

CTQ (Critical to Quality)

Key measurable characteristics that meet customer needs.

Defect

A failure to meet specifications.

DPMO

Defects Per Million Opportunities – defect metric.

Defective

A product with one or more defects.

DFSS

Design for Six Sigma - creating products/processes from scratch using Six Sigma tools.

DOE

Design of Experiments - method to understand the effects of variables.

DMADV

Define, Measure, Analyze, Design, Verify - used for new processes/products.

DMAIC

Define, Measure, Analyze, Improve, Control - used for improving existing processes.

Design Validation

Verifying the product meets user needs.

Design Verification

Checking design outputs meet requirements.

Efficiency

Ratio of output to input; often expressed in percentage.

Entitlement

Best performance achievable under ideal conditions.

Gemba

“The real place” where value is created, such as the shop floor.

Green Belt

A person trained in Six Sigma who leads smaller projects.

Heijunka

Load leveling; smoothing production volume and mix.

Hypothesis Testing

A statistical method to test assumptions using data.

JIT (Just in Time)

Producing only what is needed, when needed, and in the quantity needed.

Kaizen Event

A rapid improvement event (3-5 days) focused on a process.

Kaizen Facilitator

A person who plans and leads Kaizen events.

Kanban

Visual signal for production or replenishment in pull systems.

KJ Method

A method to group and analyze qualitative data.

Lean Manufacturing

Eliminating waste to increase customer value with fewer resources.

Line Balancing

Distributing workload evenly across all operations to meet Takt time.

Master Black Belt

An expert who trains Black Belts and oversees complex projects.

Mistake Proofing (Poka-Yoke)

Designing processes to prevent or detect errors early.

Normal Distribution

Bell-shaped curve; describes many natural data distributions.

Null Hypothesis (H0)

Default assumption that there is no effect or difference.

O.E.E. (Overall Equipment Effectiveness)

Measures how effectively equipment is used (Availability x Performance x Quality).

One Piece Flow

Moving one unit at a time through a process.

P-Value

Probability of observing your data assuming H0 is true; used in hypothesis testing.

Pareto Principle (80/20 Rule)

80% of problems come from 20% of causes.

PDCA (Plan-Do-Check-Act)

Continuous improvement cycle.

Poka-Yoke

See Mistake Proofing.

POU (Point of Use)

Ensuring materials/tools are available at the location of use.

Process Capability

How well a process meets specification limits.

Product Segmentation

Grouping products by similar processes/features.

Production Instruction Kanban

Authorizes production based on demand.

Pull System

Produces based on actual demand.

Push System

Produces based on forecasts, not real-time demand.

Repeatability

Same operator, same tool, same conditions = consistent results.

Reproducibility

Different operators/instruments produce consistent results.

Six Sigma

Methodology focused on reducing variation and improving quality.

Special Cause Variation

Unusual variation due to specific, identifiable factors.

SPC (Statistical Process Control)

Using control charts to monitor process variation.

Takt Time

Time available divided by customer demand; sets production pace.

TPM (Total Productive Maintenance)

Maximizing equipment effectiveness with operator involvement.

Type I Error

False positive; rejecting H0 when it's actually true.

Type II Error

False negative; failing to reject H0 when it's false.

VSM (Value Stream Mapping)

Visual representation of all process steps from order to delivery.

Voice of the Business (VOB)

Internal business needs and goals.

Voice of the Customer (VOC)

Feedback/data from customers defining their requirements.

Waste

Any non-value-adding activity.

Waste Walk

Observing a process to identify and document types of waste.

WIP (Work In Progress)

Items in the middle of being processed.

Zero Defects

A goal/philosophy of achieving perfect quality through process improvements.