Six Sigma Glossary - A Single Reference Point for Key Six Sigma Terms and Their Definitions A comprehensive glossary of the most widely-used Six Sigma terms, their definitions, and applicable related articles. Acceptable Quality Level (AQL) AQL is limit of your satisfactory process average in a particular level of quality when a continuing group of lots is regarded as. Activity-based costing (ABC) A system in making business decisions determined by cost information of fundamental business activities as tasks in connection with product design, development, quality, manufacturing, distribution, customer acquisition, service and support. ABC is oftentimes considered a sort of business process re-engineering because it insists on surfacing a manageable variety of cost drivers that can be used in order to variable business costs to customer, products and processes. var ezzns21 = 0.05:504809,0.20:504815,0.35:504821,1.20:504835,1.70:504842,4.50:504863,0.15:504814,0.45:504824,0.50:504826,0.60:504827,0.80:504829,1.80:504844,1.50:504840,2.00:504848,2.80:504855,3.50:504859,0.10:504811,1.60:504841,1.90:504846,0.30:504819,0.90:504830,5.00:504865,0.40:504823,0.70:504828,1.10:504833,1.30:504836,2.40:504851,2.60:504853,3.00:504857,2.20:504850,0.25:504817,1.00:504831,1.40:504838,4.00:504861,; var ezoflbf_2_21 = function() __ez.queue.addFunc('ReloadFromP_1021', 'IL11ILILIIlLLLILILLLLIILLLIIL11111LLILiiLIliLlILlLiiLLIiILL.ReloadFromP', 1021, false, ['banger.js'], false, false, false, true); ; var ezoflbf_21 = function() eval(ez_write_tag([[336,280],'brighthubpm_com-medrectangle-3','ezslot_3'])); ;ezoflbf_21(); var __ezfl_sss_1021 = function() setTimeout(function() var ezflaun = IL11ILILIIlLLLILILLLLIILLLIIL11111LLILiiLIliLlILlLiiLLIiILL.GetNameFromPositionId(1021); if (typeof ezflaun != 'undefined' && ezflaun.length > 0) if (typeof ez_ad_units != undefined) for (i = 0; i < ez_ad_units.length; i++) if (ezflaun.indexOf(ez_ad_units[i]) >= 0) return false; IL11ILILIIlLLLILILLLLIILLLIIL11111LLILiiLIliLlILlLiiLLIiILL.StoreStatSource(ezflaun, 47, 22.00); IL11ILILIIlLLLILILLLLIILLLIIL11111LLILiiLIliLlILlLiiLLIiILL.RemoveSlotById(ezflaun); , 4000); ; __ez.queue.addFunc('__ezfl_sss_1021', '__ezfl_sss_1021', null, false, ['banger.js'], false, false, false, true); Analysis of Means (ANOM) A statistical technique of troubleshooting industrial processes and analyzing the outcomes of experimental designs with factors at fixed levels. It provides a graphical display of knowledge. Article: Keep on Budget With Earned Value Analysis Analysis of Variance (ANOVA) A basic statistical technique for analyzing experimental data. It subdivides the whole variation of a data set into meaningful component parts associated with specific options for variation to be able to test a hypothesis on the parameters with the model or estimate variance components. Arrow Diagram eval(ez_write_tag([[336,280],'brighthubpm_com-medrectangle-4','ezslot_1']));A graphic description with the sequential steps that must be completed before a project may be completed. Balanced Scorecard A framework, which translates a company's vision and strategy into a coherent list of performance measures. A balanced business scorecard helps businesses evaluate how well they meet their strategic objectives. It typically has 4-6 components, each having a number of sub-measures. Each component highlights one aspect from the business. Baseline A standards for comparisons, a reference for measuring progress in improving an activity, usually to differentiate from the current state along with a future state. Article: Microsoft Project 2007: Saving and Updating a Project Interim Plan Benchmarking A way for comparing a process, using standard or guidelines like a basis, after which indentifying methods to improve the process. Black Belt A full-time change agent competent in the methodology to resolve product and process defects project by project with financially beneficial results. A black belt does Six Sigma analyses and works with others to put improvements available. Article: What is the Purpose of Six Sigma? Breakthrough Goal A dramatic, near-immediate and significant improvement. Business Process A number of activities that actually work together to generate a defined group of products. All business processes in the enterprise exist to satisfy the mission of the enterprise. Business processes must be related in some manner to mission objectives. Business Process Improvement (BPI) The betterment of the organization's business practices over the analysis of activities to reduce or eliminate non-value added activities or costs, while in the same time maintaining or improving quality, productivity, timeliness, or any other strategic or business purposes as evidenced by measures of performance. Also called functional process improvement. Business Process Redesign or Reengineering A management method which stresses the fundamental rethinking of processes, questioning all assumptions, in an effort to streamline organizations, and concentrate on adding value in core processes. 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A champion 'owns" the method ' monitoring projects and measuring the savings realized. Article: Key Concepts of Six Sigma Critical-to-Quality (CTQ) Elements of your procedure that significantly modify the creation of that process. Identifying these components is essential to working out making the improvements that may dramatically reduce costs and enhance quality. Critical Control Point (CA) A function or perhaps an area in a very manufacturing process or procedure, the failure ones, or loss of control over, could have a detrimental affect around the quality of the finished product and could result inside a unacceptable health risks. Cycle Time The time it takes to finish an operation from starting out end, consisting of work time and wait time. C CHARTS Are control charts which display the number of defects per sample. Common Cause Variation A variation that affects each of the individual values of an process Common causes Inherent causes of variation in a procedure. They are typical with the process, not unexpected. That isn't to express that they should be tolerated; around the contrary, once special reasons behind variation are largely removed, a concentrate on removing common reasons for variation pays big dividends. Control Chart A line chart with control limits. It is constructed by mathematically constructing control limits at 3 standard deviations above and below the typical, you can know what variation is because of normal ongoing causes (common causes) and what variation is manufactured by unique events (special causes). Control Limit One of two values (lower and upper) that indicate the inherent limits of a process. Cost of Poor Quality Total labor, materials, and overhead costs related to imperfections within the processes that deliver products or services that don't meet specifications or expectation. Data Factual information used being a cause of reasoning, discussion, or calculation; often identifies quantitative information. Defect A measureable characteristic in the process or output that isn't inside the acceptable customer limits, i.e., not conforming to specifications. Six Sigma practices allow you to eliminate defects and constantly deliver services that meet customer specifications. Article: Adding Six Sigma Tolerances to Your Organization Design for Six Sigma (DFSS) A systematic methodology using tools, training, and measurements to enable the appearance of products, services, and processes that meet customer expectations at Six Sigma quality levels. DMAIC An acronym that represents the 5 phases inside Six Sigma Methodology: Define, Measure, Analyze, Improve, and Control. It is the Six-Sigma problem-solving approach that serves as being a roadmap to be utilized on all projects and process improvements, while using Six Sigma tools applied if required. Article: Top Six Questions About Six Sigma Failure Mode Effect Analysis (FMEA) The way a part or process can neglect to meet specification, creating a defect or non-conformance, and the impact on the customer if it failure mode just isn't prevented or corrected. eval(ez_write_tag([[250,250],'brighthubpm_com-banner-1','ezslot_2']));Fishbone Diagram Also referred to as a cause and effect diagram, it really is used to give you a pictorial display of an list in places you identify and organize possible causes of problems, or factors necessary to ensure success of some effort. It is an effective tool that enables website visitors to easily understand the relationship between factors to review processes, situations, as well as for planning. Fishbone diagrams are typically constructed through brainstorming techniques. As a result, they are often drafted manually in some recoverable format. However, two software programs competent at displaying the diagram professionally are AutoCad and CADKEY. Learn how to make your own fishbone diagram in this article. Flowchart A graphical representation in which symbols are used to represent such things as operations, data, flow direction, and equipment, for the definition, analysis, or solution of an problem. Gantt Chart Is a bar chart that shows planned work and handle are employed in regards to time. Each task inside a list features a bar corresponding to it. The length of the bar is employed to indicate the expected or actual duration from the task. Learn how to create a Gantt chart in Excel here. Gap Analysis A technique used to compare a current state along with a target future state. Gauge Repeatability and Reproducibility Study A study to ensure your measurement systems are statistically sound. Green Belt A team leader who supports the implementation and putting on Six Sigma tools through participation on project teams who also provide other organizational responsibilities besides as a team leader. Article: Key Concepts of Six Sigma Hoshin Planning A technique of strategic planning quality. It helps executives integrate quality improvement into the organization's long-range plan. It is employed to ensure that the mission, vision, goals, and annual objectives of an organization are communicated to and implemented by everyone, in the executive level on the front-line level. Histogram A group of vertical bar graphs that shows the distribution in a very group of knowledge. The histogram usually represents all of your set of knowledge points on the two-axis graph to demonstrate the distribution coming from all those data points also to reveal patterns. Article: Project 2007: How to Display the Resource Histogram (part 1) Ishikawa Diagram Is a problem-solving tool that uses a graphic description in the various process elements to investigate potential reasons for variation, or problems. (Same as Cause and Effect Diagram or Fishbone Diagram). ISO 9000 The family of quality management and quality assurance standards adopted by ISO (International Organization for Standardization, founded 1947), an international consensus of over 110 countries. Lower Control Limit A horizontal dotted line plotted on the control chart, which represents the lower process limit capabilities of your process. Master Black Belt The comparable to an internal consultant. They are not full-time members in the team but assist they while using more technical areas of their work on an if required basis. Article: Key Concepts of Six Sigma Mean The sum of a group of values divided from the quantity of values ' average. Median The midpoint in the compilation of values. Mode A Value that comes about usually in the compilation of values. Pareto Chart A representation in the relative importance of process causes or defects, based on the rule of thumb that 80% coming from all problems result from 20% from the causes. Reference: How to Create a Pareto Chart in Excel. Parts Per Million (PPM) PPM is often a method of stating the performance of an process with regards to actual or projected defective material. PPM data could be employed to indicate areas variation requiring attention. Process Any repetitive action ' maybe it's a transactional, manufacturing, or services environment. The Six Sigma methodology collects data in variations in outputs associated with each process, so that it could be improves the ones variations reduced. Process Capability The ability in the process to attain certain results, operating out of performance testing. Process Decision Program Chart (PDPC) A method helps determine which methods to use to acquire desired results by evaluating the progress of events along with the variety of conceivable outcomes. Implementation plans don't invariably progress as anticipated. When problems, technical or otherwise not, arise, solutions are generally not apparent. The PDPC method, in reply to these kinds of problems, anticipates possible outcomes and prepares countermeasures which will lead to the most effective solutions. Process Width The spread of values +/-3 sigma in the mean ' process width; also referred to as normal variation. Process Mapping An illustrated description of how a procedure works. Quality Defined as conformance to Specifications. Any product or service fitting its specifications is really a quality services or products. Quality Assurance All the planned and systematic activities implemented from the quality systems to deliver adequate confidence certain requirements for quality will be met. (1) A planned and systematic pattern of all actions necessary to supply adequate confidence make fish an item or product conforms to established technical requirements. (2) A pair of activities meant to evaluate the method by which items are developed or manufactured. Quality Function Deployments (QFD) QF is really a method accustomed to identify critical customer attributes also to develop a specific link between customer attributes and design parameters. Matrices are employed to organize information to help marketers and design engineers answer three primary questions: The organizing framework for your QFD process is really a planning tool called the "house of quality." Information Technology (IT) and Construction companies are simply now start to adapt and use QFD techniques being a strategic quality management tool. Range The difference between the best value as well as the lowest value in a series, the spread relating to the maximum and also the minimum. Root Cause Analysis Study of original reason behind nonconformance having a process. When the root cause is removed or corrected, the nonconformance is going to be eliminated. Run Chart A graph that plots performance data after a while for a process, representing the data usually being a line chart. Sigma A saying used in statistics to represent standard deviation, a signal from the amount of variation inside a list of measurements or an operation. Six Sigma A statistical concept that measures a procedure when it comes to defects ' in the six-sigma can be another philosophy of managing that targets eliminating defects through practices that emphasize understanding, measuring, and improving processes. Article: What is the Purpose of Six Sigma? Standard Deviation The average difference between any value in the compilation of values and the mean of each of the values in this series. This statistic can be a measure in the variation in a very distribution of values. Article: Key Concepts of Six Sigma Specification Limit One of two values (lower and upper) that indicate the boundaries of acceptance or tolerated values for an operation. Scatter Plot A graph by which individual points are plotted by 50 percent dimensions. Software life cycle The time frame beginning whenever a software method is conceived and ending if the strategy is no more intended for use. The software life cycle is usually broken into phases denoting activities including requirements, design, programming, testing, installation, and operation and maintenance. Contrast with software development process. Article: Software Project Initiation: Organizational Role Statistical Process Control (SPC) Analysis and control of your process with the use of statistical techniques, particularly control charts. Total Quality Management (TQM) A management approach that focuses for the organization as a system, having an increased exposure of teams, processes, statistics, continuous improvement, and delivering products that meet and exceed customer expectations. Six Sigma can be a disciplined extension of TQM. Article: Key Concepts of Six Sigma Upper Control Limit A horizontal line with a control chart (usually dotted), which represents top of the limits of process capability. Variation Any quantifiable difference from the specified measurement or standard and also the deviation from this kind of measurement or standard within the output of your process. Vital Few Factors Factors that directly explain the cause-and-effect relationship of the process output being measured in regards to the inputs that drive the process. Typically, data shows that you will find six or fewer factors for almost any method that mist get a new quality of outputs in a process, regardless of whether you'll find hundreds of steps where a defect could occur ' vital few. X & R Charts A control chart, which is a representation of process capability as time passes; displays the variability in the task average and range across time. Zero Defects Is Step 7 of "Philip Crosby's 14 Step Quality Improvement Process." Although applicable to your sort of enterprise, it has been primarily adopted within industry supply chains wherever large volumes of components are increasingly being purchased.
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