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Six Sigma
Sigma is referred as a business-driven, multi-faceted approach, which focuses primarily on process improvement, reduced costs, and increased profits
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Six Sigma Performance
Statistical term for a process that produces fewer than 3.4 defects {or errors} per million opportunities for defects
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Determinism
The principle that you can create a desired outcome by configuring and controlling the inputs in a specific manner.
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non causa pro causa
"non-cause for the cause"
Just because 2 events happen together doesn't mean that one has caused the other.
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Variation
Deviation from expectation
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Common Cause Varitation
Natural variation that you can act to reduce, but you cannot eliminate it.
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Special Cause Variation
Directly caused by something special
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80 - 20 Rule
20% of the inputs account for 80 % of the influence on that system.
"Vital few vs. the trivial many"
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Domains of Activity
4 areas or domains to which Six Sigma can be applied:
- Thinking
- Processing
- Designing
- Managing
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Entitlement
The best performance a process, as currently designed, has demonstrated in actual operation.
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Hidden Factory
Work that is done above and beyond what is required to produce a product or service.
{Reworking an item because of defects}
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Mode
The value observed most frequently
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Mean
The average. It is theoretical, meaning it may not have actually occurred.
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Median
The point along the scale of measure where half the data are below and half are above.
Preferred when there are outliers.
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Range
The difference between the largest and the smallest observed data values.
R = Xmax - Xmin
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Standard Deviation
- a statistical method to define how much variation exists in a set of data or a process.
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Six Sigma meaning
stands for Six Standard Deviations from mean
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Levels of Sigma Performance
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Defect Rate
The complimentary measurement of yields is defects. If the yield is 90 percent, naturally there must be 10 percent defects.
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DPU
- Defects Per Unit
- provides a measurement of the average number of defects on a single unit.
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Yield
the proportion of correct items you get out of a process compared to the number of raw items you put into it.
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Brainstorm
Using the brain to storm a creative problem and to do so “in commando fashion, each stormer audaciously attacking the same objective”.
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Affinity Diagrams
When ideas presented in the Brainstorming session are grouped into meaningful categories
One of the 7M Japanese management and planning tool
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Statistics
the mathematics of the collection, organization, and interpretation of numerical data
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Sampling
the practice of gathering a subset of the total data available from a process or a population.
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Statistic Sampling
the collection, organization, and interpretation of the numerical data collected randomly from a process or a population
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Operational Definitions
the collection, organization, and interpretation of the numerical data collected randomly from a process or a population
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Process
a set of interrelated work activities characterized by a set of specific inputs and value added tasks that make a procedure for a set of specific outputs
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Process Flow Analysis
Analyzing this flowchart to investigate the process and identify the problems in the process
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Pareto Principle
because it is assumed that large percentage (80%) of the problems are caused by few percentages (20%) of the processes. So the Pareto chart helps by narrowing the very few areas of concern, while analyzing the process.
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Pareto Chart
A bar chart that is displayed by frequencies. Used to rank the causes of a problem from the most to the least significant.
- is a specialized vertical bar graph that exhibits data collected in such a way that important points necessary for the process under improvement can be demarcated
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Histograms
are defined as bar graph of a frequency distribution in which the widths of the bars are proportional to the classes into which the variable has been divided and the heights of the bars are proportional to the class frequencies
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Run {Trend} Chart
primarily focuses the changing trend or pattern over a specified period of time before measuring the performance of a process
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Scatter Plot {Correlation} Diagram
graphic tool is used to search for direct relationship between two factors in a process, to see if a correlation exists between the two
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Control Charts
A graphical tool for monitoring changes that occur within a process because of some common cause
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Line Graphs
Used to depict the changes in the process
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Statistical Significance
the probability that the observed relationship or a difference in a sample occurred by pure chance, and that in the population from which the sample was drawn, no such relationship or differences exist
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Correlation
the relationship between two data sets of variable
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Positive Correlation
when the value of one variable increases with the increase of the other variable.
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Negative Correlation
when the value of one variable increases with the increase of the other variable.
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Regression Analysis
when the value of one variable increases with the increase of the other variable.
Regression means a relationship between the mean value of random variable and the corresponding value of one or more predictors
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Project Charter
It lists the vital features of the project. It describes what the higher management, black belts, and champions have agreed to achieve in the process
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Business Case
The reasons for doing the project are stated.
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Process Measurements
different events that will determine the effectiveness of the project
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Kano Model
A quality measurement technique to measure client happiness.
Customers perceive some product attributes to contribute to their satisfaction more than others. Kano describes this relationship in a diagram.
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Sample Survey
A set of written questions that is sent to a group of selected customers to obtain answers that will enable corporate decision-making
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Focus Group
A selected group of customers who are unfamiliar with each other, collected together to answer a set group of questions
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Project Definition
documenting key information about the project.
The project charter specifies the project definition
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Process Mapping
an illustration of the flow of work {Flow Chart}
Current Functioning and Expected Process
Process maps increase the visibility of any process. This in turn improves communication.
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Flow Chart
diagrammatic representation of the nature and the flow of work in any organization or process
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Flow Chart Symbols
Oval -indicates the start and end point of the process. They usually contain the words START and STOP, or END
Rectangular Box -represents the process or an activity in the process
Parallelogram -represents the input or the output of the process
- Diamond -represents a decision point in a flow chart. It has two arrows coming out of it, corresponding to yes and no or true or false.
- Circle
-represents a place marker. It is used when a line or page has to be changed with the flowchart. This symbol is then numbered and placed at the end of the line or the page.
On the next line or page, this symbol is used with the same number so a reader of the chart can follow the path.
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7M Tools
- - Cause-and-effect diagram (also known as the "fishbone" or Ishikawa diagram)
- - Check sheet
- - Control chart
- - Histogram
- - Pareto chart
- - Scatter diagram
- - Stratification (alternately, flow chart or run chart)
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Priortization Matrices
Combination of tree diagram and a matrix chart. They are prepared to logically narrow down the focus of the team.
Prioritization matrices are supposed to be used when:
- Vital root causes are already recognized and the most important ones have been identified.
- When the issues that have been generated from the brainstorming session are complex and are strongly interrelated
- The resources for the progress are limited and only a vital few activities must be focused upon
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Matrix Diagram
is a representation of elements in tabular form
The left-most row and top-most column consists of inter-related elements and the rest of the cells consists of the symbols or the numbers that represent the strength of the relationship between the elements.
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Activity Network Diagrams
A pictorial representation of the chain of actions to be executed to complete a project.
also called arrow diagrams, network diagrams, activity charts, node diagrams etc
A version of the Activity Network Diagrams is also known as PERT (Program evaluation and review technique) chart.
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Critical Path
The longest path taken from the start to the end of the project
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Non Conforming Unit
is the one which is deviating from its engineering specifications
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Defective Unit
may be functioning just fine, BUT a part of it is not functioning as desired
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Probability Plot
shows the probability of a certain event occurring at different places within a given time period.
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Sub Process Mapping
selecting a high-level process step from a process map and breaking it down to a number of steps
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Flow of Work
refers to computing the total time taken by the each sub process step (both value and non-value adding).
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Value Enabling Steps
These are those steps, which are usually non-value adding steps but are required by law to be included. These steps cannot be improved.
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Root Cause Analysis
tool designed to identify the problems which have occurred in a process. It not only explains what has happened and how it has happened but why a problem has occurred in a process.
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Root Cause
those causes over which the management has some control.
Even those causes for which no effective recommendation can be developed cannot be termed as root causes.
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Scatter Diagram
a tool used for establishing a correlation between two sets of variables.
It is used to depict the changes that occur in one set of variables while changing the values of the other set of variables.
- This diagram does not determine the exact relationship between two variables, but only determines whether the two set of variables are related to each other or
- not; and if they are related, then how strong the relationship is.
Analyzed using Regression Analysis
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Hypothesis Testing
the process of using statistical analysis to ascertain if the observed disparities between two or more samples are due to random chance
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