Six Sigma Glossary - A Single Reference Point for Key Six Sigma Terms and Their Definitions A comprehensive glossary of the extremely widely-used Six Sigma terms, their definitions, and applicable related articles. Acceptable Quality Level (AQL) AQL is limit of a satisfactory process average at a particular quality level whenever a continuing compilation of lots is known as. Activity-based costing (ABC) A system to make business decisions determined by cost information of fundamental business activities as tasks related to product design, development, quality, manufacturing, distribution, customer acquisition, service and support. ABC might be considered a type of business process re-engineering because it insists on surfacing a manageable variety of cost drivers which you can use in order to variable business costs to customer, products and operations. 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 procedure for troubleshooting industrial processes and analyzing the outcome of experimental designs with factors at fixed levels. It provides a graphical display of internet data. 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 the data set into meaningful component parts associated with specific options for variation so that you can test a hypothesis on the parameters with the model as well as to estimate variance components. Arrow Diagram eval(ez_write_tag([[336,280],'brighthubpm_com-medrectangle-4','ezslot_1']));A graphic description of the sequential steps that must definitely be completed before a project can be completed. Balanced Scorecard A framework, which translates a company's vision and strategy into a coherent set of performance measures. A balanced business scorecard helps businesses evaluate how well they meet their strategic objectives. It typically has 3 to 4 components, each having a compilation of sub-measures. Each component highlights looking after in the business. Baseline A standards for comparisons, a reference for measuring progress in improving an operation, usually to differentiate from a current state as well as a future state. Article: Microsoft Project 2007: Saving and Updating a Project Interim Plan Benchmarking A way of comparing a procedure, using standard or recommendations as a basis, after which indentifying approaches to increase the process. Black Belt A full-time change agent trained 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 together others that will put improvements set up. Article: What is the Purpose of Six Sigma? Breakthrough Goal A dramatic, near-immediate and significant improvement. Business Process A assortment of activities that work well together to make a defined set of products. All business processes in an enterprise exist in order to meet the mission from the enterprise. Business processes must be related somehow to mission objectives. Business Process Improvement (BPI) The betterment of the organization's business practices through the analysis of activities to cut back or eliminate non-value added activities or costs, while in the same time maintaining or improving quality, productivity, timeliness, or 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 essential rethinking of processes, questioning all assumptions, within an effort to streamline organizations, and focus on adding value in core processes. 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A champion 'owns" the process ' monitoring projects and measuring the savings realized. Article: Key Concepts of Six Sigma Critical-to-Quality (CTQ) Elements of the procedure that significantly affect the production of that process. Identifying these components is important to determining making the improvements that could dramatically reduce costs and enhance quality. Critical Control Point (CA) A function or an area in a very manufacturing process or procedure, the failure which, or loss of control over, could possibly have an adverse affect around the quality with the finished product and could result in the unacceptable health risks. Cycle Time The time it takes to finish a procedure from starting out end, composed of work some time and wait time. C CHARTS Are control charts which display the amount of defects per sample. Common Cause Variation A variation that affects all the individual values of the process Common causes Inherent reasons for variation in a process. They are typical with the process, not unexpected. That just isn't to say that they should be tolerated; for the contrary, once special causes of variation are largely removed, a give attention to removing common reasons behind variation can pay 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 common, it's possible to figure out what variation is a result 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 an process. Cost of Poor Quality Total labor, materials, and overhead costs due to imperfections in the processes that deliver products or services that do not meet specifications or expectation. Data Factual information used as being a grounds for reasoning, discussion, or calculation; often describes quantitative information. Defect A measureable characteristic from the process or output which is not inside the acceptable customer limits, i.e., not conforming to specifications. Six Sigma practices enable you to eliminate defects try to deliver products and 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 allow the appearance of products, services, and operations that meet customer expectations at Six Sigma quality levels. DMAIC An acronym to display the 5 phases inside Six Sigma Methodology: Define, Measure, Analyze, Improve, and Control. It is the Six-Sigma problem-solving approach that serves like a roadmap to be used on all projects and process improvements, while using Six Sigma tools applied as needed. Article: Top Six Questions About Six Sigma Failure Mode Effect Analysis (FMEA) The procedure by which an element or process can are not able to meet specification, developing a defect or non-conformance, as well as the impact on the customer in the event that failure mode just isn't prevented or corrected. eval(ez_write_tag([[250,250],'brighthubpm_com-banner-1','ezslot_2']));Fishbone Diagram Also known as a cause and effect diagram, it can be used to provide a pictorial display of your list where you identify and organize possible causes of problems, or factors required to ensure success of some effort. It is an effective tool which allows people to easily understand the relationship between factors to review processes, situations, as well as for planning. Fishbone diagrams are normally constructed through brainstorming techniques. As a result, they are generally drafted by hand in some recoverable format. However, two software applications able to displaying the diagram professionally are AutoCad and CADKEY. Learn how to make your own fishbone diagram in the following paragraphs. Flowchart A graphical representation by which symbols are employed to represent things like operations, data, flow direction, and equipment, to the definition, analysis, or solution of the problem. Gantt Chart Is a bar chart that shows planned work and handle are employed in relation to its time. Each task in the list features a bar corresponding to it. The length of the bar is used to indicate the expected or actual duration in the task. Learn how to create a Gantt chart in Excel here. Gap Analysis A technique used to compare a current state plus a target future state. Gauge Repeatability and Reproducibility Study A study to make sure that your measurement systems are statistically sound. Green Belt A team leader who props up implementation and putting on Six Sigma tools through participation on project teams who have other organizational responsibilities besides as a team leader. Article: Key Concepts of Six Sigma Hoshin Planning A way of strategic preparing for quality. It helps executives integrate quality improvement in the organization's long-range plan. It is employed to make certain that the mission, vision, goals, and annual objectives of your organization are communicated to and implemented by everyone, from your executive level to the front-line level. Histogram A number of vertical bar graphs that shows the distribution in a very group of data. The histogram usually represents all of your set of information points on a two-axis graph showing the distribution of those data points and also to reveal patterns. Article: Project 2007: How to Display the Resource Histogram (part 1) Ishikawa Diagram Is a problem-solving tool which utilizes a graphic description in the various process elements to research potential options for variation, or problems. (Same as Cause and Effect Diagram or Fishbone Diagram). ISO 9000 The category of quality management and quality assurance standards adopted by ISO (International Organization for Standardization, founded 1947), a worldwide consensus of over 110 countries. Lower Control Limit A horizontal dotted line plotted over a control chart, which represents the low process limit capabilities of an process. Master Black Belt The similar to an interior consultant. They are not full-time members from the team but assist the team with all the more technical areas of their develop an as required basis. Article: Key Concepts of Six Sigma Mean The sum of the group of values divided from the amount of values ' average. Median The midpoint inside a compilation of values. Mode A Value that comes about usually in a very compilation of values. Pareto Chart A representation with the relative importance of process causes or defects, depending on the rule of thumb that 80% of problems result from 20% of the causes. Reference: How to Create a Pareto Chart in Excel. Parts Per Million (PPM) PPM is really a means of stating the performance of an process regarding actual or projected defective material. PPM data can be utilized to indicate areas variation requiring attention. Process Any repetitive action ' whether it's a transactional, manufacturing, or services environment. The Six Sigma methodology collects data in variations in outputs linked to each process, so that it may be improves the ones variations reduced. Process Capability The ability of the process to achieve certain results, located in performance testing. Process Decision Program Chart (PDPC) A method helps decide which processes to use to get desired results by evaluating the progress of events along with the number of conceivable outcomes. Implementation plans don't always progress as anticipated. When problems, technical or otherwise not, arise, solutions are often not apparent. The PDPC method, in response about bat roosting types of problems, anticipates possible outcomes and prepares countermeasures that will lead to the most beneficial solutions. Process Width The spread of values +/-3 sigma from the mean ' process width; often known as normal variation. Process Mapping An illustrated description of how a process works. Quality Defined as conformance to Specifications. Any services or products to suit its specifications is a quality product or service. Quality Assurance All the planned and systematic activities implemented inside the quality systems to supply adequate confidence what's needed for quality will likely be met. (1) A planned and systematic pattern coming from all actions necessary to supply adequate confidence an item or product conforms to established technical requirements. (2) A group of activities built to evaluate the procedure through which products are developed or manufactured. Quality Function Deployments (QFD) QF is really a method used to identify critical customer attributes and to create a specific link between customer attributes and design parameters. Matrices are employed to organize information to assist marketers and design engineers answer three primary questions: The organizing framework for your QFD process is often a planning tool called the "house of quality." Information Technology (IT) and Construction companies are merely now starting out adapt and use QFD techniques like a strategic quality management tool. Range The difference between the very best value and also the lowest value in a very series, the spread between the maximum and also the minimum. Root Cause Analysis Study of original basis for nonconformance with a process. When the root cause is slowly removed or corrected, the nonconformance is going to be eliminated. Run Chart A graph that plots performance data over time for a process, representing the info usually as being a line chart. Sigma A term used in statistics to represent standard deviation, indicative in the degree of variation in a very group of measurements or an operation. Six Sigma A statistical concept that measures an activity when it comes to defects ' at the six-sigma is a philosophy of managing that concentrates on 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 inside a number of values and also the mean of each of the values in this series. This statistic is 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 where individual points are plotted in two dimensions. Software life cycle The period of time beginning when a software product is conceived and ending in the event the method is no longer designed for use. The software life cycle is usually broken into phases denoting activities like 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 an process over the use of statistical techniques, particularly control charts. Total Quality Management (TQM) A management approach that focuses about the organization as being a system, by having an focus on teams, processes, statistics, continuous improvement, and delivering services that meet and exceed customer expectations. Six Sigma is a disciplined extension of TQM. Article: Key Concepts of Six Sigma Upper Control Limit A horizontal line over a control chart (usually dotted), which represents the upper limits of process capability. Variation Any quantifiable difference from a specified measurement or standard and the deviation from a real measurement or standard inside output of your process. Vital Few Factors Factors that directly explain the cause-and-effect relationship from the process output being measured in comparison to its the inputs that drive the method. Typically, data demonstrates there are six or fewer factors for virtually any method that mist customize the quality of outputs in any process, regardless of whether you can find numerous steps in which a defect could occur ' vital few. X & R Charts A control chart, which is really 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 the kind of enterprise, many experts have primarily adopted within industry supply chains wherever large volumes of components are now being purchased.
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