Six Sigma Basic Key Terms - Part V (Tools)

Six Sigma Basic Key Terms - Part V (Tools)

Histogram: A group of vertical bar graphs that shows the distribution of one variable in a group of data. The histogram visually represents all of a set of data points on a two – axis graph, to show the distribution of all those data points and to reveal patterns, also known as a frequency distribution bar chart.
Distribution: The organization of the data on a graph. From the distribution, you begin to turn data into usable information.

Dispersion: The degree to which values for a variable differ from each other. If every value for a variable were close, the variable would have very little dispersion, also known as variability and spread.

Variance: A measure of the amount by which a value differs from the mean, calculated as the average squared deviation of each number from its mean.

Six Sigma Basic Key Terms - Part IV (Implementing/ the core six sigma)

Six Sigma Basic Key Terms - Part IV (Implementing/ the core six sigma)

Implementation Partner: An outside expert engaged in introducing, training, and supporting your Six Sigma initiative.

Hard Dollars: Savings that are tangible – exact, quantifiable cost savings, such as reduced hours, reduced inventory levels, etc.

Soft Dollars: Savings that are intangible – expanses that you avoid, such as not increasing hours, inventory, or physical workspace.

Gauge repeatability and reproducibility study: A study to ensure that your measurement systems are statistically sound. The gauge R&R is a confidence meter of sorts! It measures how you are measuring, so you know that your systems are measuring accurately and appropriately.

Six Sigma Basic Key Terms - Part III (Business Metrics)

Six Sigma Basic Key Terms - Part III (Business Metrics)

Business Metric: A unit of measurement that provides a way to objectively quantify a process. Any measurement that helps management understand its operations might be a business metric; number of products completed per hour, per cent of defects from a process, hours required to deliver a certain number of outputs or provide a service, and so on. Business metrics provide data that six sigma managers can use to better understand their processes and identify target areas for improvement.

Mean: Average the sum of a series of values divided by the number of values.

Median: Midpoint in a series of values.

Mode: Value that occurs most often in a series of values.

Range: Difference between the highest value and the lowest value in a series, the spread between the maximum and the minimum.

Six Sigma Basic Key Terms - Part II (Why Six Sigma)

Six Sigma Basic Key Terms - Part II (Why Six Sigma)
Cycle Time – The time it takes to complete a process from beginning to end, consisting of work time and wait time. It is the cases that, for many processes, wait time is longer than work time.

Cost of poor quality (COPQ) – Total labor, materials and overhead costs attributed to imperfections in the processes that deliver products or services that don’t meet specifications or expectations. These costs would include inspection, rework, duplicate work, scrapping rejects, replacements and refunds, complaints, loss of customers, and damage to reputation.

Value Added – Any part of a process for which the customer is willing to pay. Value – added activities would be those involved in producing goods or delivering services.

Six Sigma Basic Key Terms - Part I (What is Six Sigma)

Six Sigma Basic Key Terms - Part I (What is Six Sigma)

Sigma – A term used in statistics to represent standard deviation, an indicator of the degree of variation in a set of measurements or a process.

Six Sigma – A statistical concept that measures a process in terms of defects – at the six sigma level, there are only 3.4 defects per million opportunities. Six Sigma is also a philosophy of managing that focuses on eliminating defects through practices that emphasize understanding, measuring and improving processes.

Defect – A measurable characteristics of the process or its output that is not within the acceptable customer limits, i.e., not conforming to specifications. Six Sigma is about practices that help you eliminate defects and always deliver products and services that meet customer specifications. The Sigma level of a process is calculated in terms of the number of defects in ratio to the number of opportunities for defects.

Variation – Any quantifiable difference between a specified measurement or standard and the deviation from such measurement or standard in the output of a process. Variation in outputs can result from many causes in the functioning and management of processes. An important goal of process improvement is to reduce variation in outputs.