-A-
Analysis of Means (ANOM): An approach to statistically compare the means of individual groups to the grand mean.

Analysis of Variance: A procedure to test statistically the equality of means of discrete factor inputs.

Attribute Data: The phrase used to refer to counted (discrete) data, especially when counting the number of defective items or the number of defects per item.

Attribute Response: Information appraised in terms of whether a characteristic or property does or does not exist. It may be expressed as a noncompliance rate or proportion.

Autocorrelation: In time series analyses, the correlation between values and previous values of the same series.

-B-
Balanced scorecard (the): The balanced scorecard (Kaplan and Norton, 1992) tracks business organizational functions in the
areas of fi nancial, customer, and internal business process, and learning and growth. In this system, an organization’s
vision and strategy lead to the cascading of objectives, measures, targets, and initiatives throughout the organization. This book describes issues with this system and an alternative IEE system that overcomes these shortcomings.

Baseline: Beginning information from which a response change is assessed.

Black belts (BBs): Six Sigma and IEE practitioners who typically receive four weeks of training over four months. It is most desirable that black belts are dedicated resources; however, many organizations utilize part-time resources. During training, black belt trainees lead the execution of a project that has in class report-outs and critiques. Between training sessions black belt trainees should receive project coaching, which is very important for their success. They are expected to deliver high-quality report-outs to peers, champions, and executives. Upon course completion, black belts are expected to continue delivering financial beneficial projects; for example, 4–6 projects per year with fi nancial benefi ts of $500,000–1,000,000. Blackbelts can mentor green belts.

Black box: Describes a system where the interior operations are not known.

BPIE: See Business process improvement event system.

Burning platform: A term used to describe a sense of urgency; for example, the organization had a burning platform to improve their on-time delivery or they would loose their major customer’s business.

Business process improvement event (BPIE) system: A system for identifying and timely resolving reoccurring problems. The resolution for these issues could lead to a simple agree-to procedure change, a DMADV design project, or P-DMAIC process improvement project.

-C-
Capability/performance metric: See Process capability/performance metric.

Cause-and-effect diagram (C&E diagram): This technique, sometimes called an Ishikawa diagram or fi shbone diagram, is useful in problem solving using brainstorming sessions. With this technique, possible causes from such sources as materials, equipment, methods, and personnel are typically identified as a starting point to begin the discussion.

Cause and Effect Matrix: A tool used to help quantify team consensus on relationships thought to exist between key input and key output variables. The results lead to other activities such as an FMEA, creating multi-vari charts, doing an ANOVA, regression analysis or DOE.

Champions: Executive level managers who are responsible for managing and guiding the Lean Six Sigma or IEE deployment and its projects.

Collins’s three circles:
1. What can you do to be the best in the world?
2. What drives your economic engine?
3. What are you deeply passionate about? (Collins, 2001)

Common cause: Natural or random variation that is inherent in a process over time, affecting every outcome of the process. If a process is in control, it has only common cause variation and can be said to be predictable. When a process experiences common cause variability but does not meet customer needs it can be said that the process is not capable. Process or input variable change is needed to improve this situation; that is, this metric is creating a pull for project creation.

Continuous data (Variables data): Data that can assume a range of numerical responses on a continuous scale, as opposed to data that can assume only discrete levels.

Confidence Interval: An interval computed from sample values. Intervals so constructed will straddle the estimated parameter a certain percentage of the time in repeated sampling.

Continuous Response: A response is said to be continuous if any value can be taken between limits. Examples include weight, distance, and voltage.

Control: The term in control or predictable is used in process control charting to describe when the process indicates that there are no special causes. Out of control indicates that there is a special cause or the process is unpredictable.

Control chart: A procedure used to track a process with time for the purpose of determining if common or special causes exist.

Corrective action: Process of resolving problems.

Cost of doing nothing differently (CODND): COPQ within Six Sigma includes not doing what is right the fi rst time, which can encompass issues such as scrap, reworks, and meetings with no purpose. IEE texts describe the cost of doing nothing differently (CODND), which has even broader costing implications than COPQ.

Cost of poor quality (COPQ): Traditionally, cost of quality issues have been given the broad categories of internal failure costs, external failure costs, appraisal costs, and prevention costs. See Glossary description for cost of doing nothing differently.

Cp: A process capability index metric used to specify how well a process is performing relative to customer requirements or specifications. It is affected by the variation in the process relative to its specification. A large number indicates the process has less process variability relative to the width of the specification.

Cpk: A process capability index metric used to specify how well a process is performing relative to customer requirements or specifications. It is affected by both the variation in the process and by how well centered that variation is within the specification. A larger number indicates the process is performing better.

Customer: Someone for whom work or a service is performed. The end user of a product is a customer of the employees within a company that manufactures the product. There are also internal customers in a company. When an employee does work or performs a service for someone else in the company, the person who receives this work is a customer of this employee.

-D-
Dashboard: See Scorecard.

Days Sales Outstanding (DSO): In general, the average number of days it takes to collect revenue after a sale has been made. In the example in the text, it is the average number of days before or after the due date that a payment is received.

Defect: A nonconformity or departure of a quality characteristic from its intended level or state.

Defective: A nonconforming item that contains at least one defect or having a combination of several imperfections, causing the unit not to satisfy intended requirements.

Deming, Dr. W. Edwards: As an American statistician, Dr. Deming is known for his top management teachings in Japan after World War II. Dr. Deming made a signifi cant contribution to Japan becoming renown for its high-quality, innovative products.

Design for Integrated Enterprise Excellence (DFIEE): A process used when developing new products, services, processes, or information technology (IT) projects. This development is efficient and effective with a focus on up-front understanding of customer requirements. IEE uses a DMADV process for DFIEE execution.

Design of experiments (DOE): Experiment methodology according to which factor levels are assessed in a fractional factorial experiment or full factorial experiment structure.

Discrete data (Attribute data): The presence or absence of some characteristic in each device under test; for example, proportion nonconforming in a pass/fail test.

DMAIC: Defi ne–measure–analyze–improve–control Six Sigma roadmap.

DMADV: Defi ne–measure–analyze–design–verify DFIEE/DFSS roadmap.

DOE (Design of Experiments): Experiment methodology in which factor levels are assessed in a fractional factorial experiment or in a full factorial experiment structure.

DMAIC: The five phases of Six Sigma methodology: Define, measure, analyze, improve and control.

Dot plot: A plot of symbols that represent individual observations from a batch of data.

DPMO (Defects per Million Opportunities): Number of defects that, on average, occur in one million opportunities. Care should be taken to assure that all defects, including touch-ups and reworks that previously may not have been recorded are included in this calculation. Also important is an agreed-upon standard method of counting opportunities.

Drill-down: A transition from general category information to more specific details by moving through a hierarchy.

-E-
E-DMAIC (Roadmap): An IEE enterprise defi ne–measure–analyze– improve–control roadmap, which contains among other things a value chain measurement and analysis system where metric improvement needs can pull for project creation.

Enron effect: At the beginning of the 21st century, the executive management style in Enron and others companies lead to the downfall of these companies and executives spent time behind bars. In Enron, executive management had to do whatever it took to meet their numbers. Enron lacked metrics that gave a true picture of what was happening. This resulted in a smoke and mirror system which had integrity issues relative to the handling of business challenges. In addition, this system encouraged executive management to have no respect for either the financial or general well being of others, inside or outside the company. The catastrophic result of this management style is the Enron effect.

Enterprise cascading measurement methodology (ECMM): A system where meaningful measurements are statistically tracked over time at various functional levels of the business. This leads to a cascading and alignment of important metrics throughout the organization.

Enterprise improvement plan (EIP): A project drill-down strategy that follows: goal–strategies–high-potential area–projects.

Enterprise process management (EPM): Rather than having governance model that addresses initiatives as separate entities, in IEE a value chain EPM function can be created that orchestrates this system. The EPM function is responsible for integrating, overseeing, and improving the execution of these processes utilizing an E-DMAIC roadmap.

EPM: See Enterprise process management.

-F-
50-Foot-Level Metric (SM): A low-level metric or input to a process that can affect the response to the output, or 30-000-Foot-Level metric.

FMEA (Failure Mode and Effect Analysis): A proactive method of improving reliability and minimizing failures in a product or service. It is an analytical approach to preventing problems in a process. For a process FMEA, organizational wisdom is collected to list what can go wrong at each step of a process that could cause potential failures or customer problems. Each item is evaluated for its importance, frequency of occurrence, and probability of detecting its occurrence. This information is used to prioritize the items that most need improving. These are then assigned a corrective action plan to reduce their risk.

Fire-fighting: The practice of giving focus to fi xing the problems of the day or week. The usual corrective actions taken in firefighting, such as tweaking a stable process, do not create any longterm fixes and may actually cause process degradation.

-G-
Gage R&R (Repeatability and Reproducibility): A tool used in a Measurement System Analysis. It is the evaluation of measuring instruments to determine their capability to yield a precise response. It determines how much of the observed process variation is due to measurement system variation. Gate repeatability is the variation in measurements using the same measurement instrument several times by one appraiser measuring the identical characteristic on the same part. Gage reproducibility is the variation in the average of measurements made by different appraisers using the same measuring instrument when measuring the identical characteristics on the same part.

Gantt chart: A bar chart that shows activities as blocks overtime. A block’s beginning and end correspond to the beginning and end date of the activity.

Governance, corporate: The system by which business corporations are directed and controlled. The corporate governance structure specifi es the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure
through which the company objectives are set, and the means of attaining those objectives and monitoring performance. Organization for Economic Cooperation and Development (OECD), April 1999.

Governance Model: The result from the people, committees, departments, and all others who make up a body for the purpose of administering something.

Green belts (GBs): Part-time Six Sigma or IEE practitioners who typically receive two weeks of training over two months. Their primary focus is on projects that are in their functional area. The inference that someone becomes a green belt before a black belt should not be made. Business and personal needs and requirements should infl uence the decision whether someone becomes a black belt or green belt. If someone’s job requires a more in-depth skill set, such as the use of design of experiments, that person should be trained as a black belt. Also, at deployment initiation, black belt training should be conducted first, so that this additional skill set can be used when coaching others.

-H-
Hidden factory: Reworks within an organization that have no value and are often not considered within the metrics of a factory.

Histogram: A graphical representation or bar graph of the sample relative frequency distribution describing the occurrence of grouped items. This graph summarizes and displays the distribution of data in an easier-to-grasp form than tables of data.

Hoshin kanri: Japanese name for policy deployment. Used by some Lean companies to guide their operational strategy.

Hypothesis: A tentative statement, which has a possible explanation to some event or phenomenon. Hypotheses are not a theoretical statement. Instead, hypotheses are to have a testable statement, which might include a prediction.

-I-
IEE: See Integrated Enterprise Excellence.

IEE scorecard/dashboard metric reporting process:

1. Assess process predictability.
2. When the process is considered predictable, formulate a
   prediction statement for the latest region of stability. The
   usual reporting format for this statement is as follows:
   1. When there is a specifi cation requirement: nonconformance
      percentage or defects per million opportunities
      (DPMO).
   2. When there are no specifi cation requirements: median
      response and 80 percent frequency of occurrence
      rate.

IEE Workout: See Workout (IEE).

In control: The description of a process where variation is consistent over time; that is, only common causes exist. The process is predictable.

Individuals control chart: A control chart of individual values where variability between subgroups affects the calculated upper and lower control limits; that is, the width between the upper and lower control limits increases when there is more variability between subgroups. When plotted individuals chart data is within the upper and lower control limits and there are no patterns, the process is said to be stable and typically referenced as an in control process. In IEE, this common cause state is referenced as a predictable process. Control limits are independent of specifi cation limits or targets.

Information technology: Computer systems and applications, which involves development, installation, and/or implementation.

Infrequent sub-grouping/sampling: Traditionally, rational subgrouping issues involve the selection of samples that yield relatively homogeneous conditions within the subgroup for a small region of time or space, perhaps five in a row. For an x and R chart, the within-subgroup variation defi nes the limits of the control chart on how much variation should exist between the subgroups. For a given situation, differing subgrouping methodologies can dramatically affect the measured variation within subgroups, which in turn affects the width of the control limits. For the high-level metrics of IEE, we want infrequent subgrouping/sampling, so that short-term variations caused by KPIV perturbations are viewed as common cause issues; that is, typical process variability is to occur between subgroups. This type of control chart can reduce the amount of fi refi ghting in an organization. However, this does not mean that a problem does not exist within the process. Volume 3 describes some approaches to view the capability/performance of our process, or how well the process meets customer specifications or overall business needs. When process capability/performance improvements are needed for these metrics, we can initiate an IEE project; that is, IEE projects are pulled into the system, as they are needed by the metrics.

Examples of infrequent subgrouping/sampling are:

1. ROI was tracked monthly over the last three years on an
   individuals control chart.
2. One paid invoice was randomly selected daily and the difference
   between payment receipt date and due date was
   tracked for the last year using an individuals control chart,
   where the data had a lognormal transformation).
3. The mean and standard deviation (log of standard deviation
   was plotted) for all DSO invoices collected were tracked
   for the last year using individuals control charts, where approximately
   the same number of invoices was received and
   tracked weekly.
4. Daily, the number of defects was divided by the opportunities
   and plotted on an individuals control chart with an
   appropriate transformation, where approximately the same
   number of opportunities occurred daily.

Integrated Enterprise (process) Excellence (IEE, I double E): Integrated Enterprise Excellence (IEE) is a sustainable business management governance system, which integrates business scorecards, strategies, and process improvement, so that organizations move toward the three Rs of Business. (Everyone is doing the Right things and doing them Right at the Right time.) IEE provides the framework for innovation and continual improvement, which goes beyond Lean Six Sigma’s project-based defect and waste reduction methods. The existence and excellence of a business depends on more customers and cash; that is, E = MC². As a business way of life, IEE provides the organizational orchestration to achieve more customer and cash. The IEE implementation roadmap provides direction on the creation of an enterprise process system in which organizations can significantly improve both customer satisfaction and their bottom line. The techniques help manufacturing, development, and service organizations become more competitive and/or move them to new heights. IEE is a structured approach that guides organizations through the tracking and attainment of organizational goals. IEE integrates enterprise process measures and improvement methodologies with tools such as Lean and theory of constraints (TOC) in a never-ending pursuit of excellence. IEE becomes an enabling framework, which integrates, improves, and aligns with other initiatives, such as total quality management (TQM), ISO 9000, Malcolm Baldrige Assessments, and the Shingo Prize.

Inventory turns: The number of times that a company’s inventory cycles or turns over per year.

ISO-9000: Consists of individual but related international standards on quality management and quality assurance. Developed to help companies effectively document the elements to be implemented in order to maintain an efficient quality system. It is a requirement often placed on manufacturing companies. The basic idea behind ISO-9000 methodology is that you document what you do, then you do what you described in the documentation. During an ISO-9000 certification process, the examining registrar will audit your company to confirm that you are following the standard. If you re, you can be certified. An updated version is ISO-9000:2000, which requires that you demonstrate improvements are being made within your processes.

IT: See Information technology.

-J-
Jim Collins’s three circles: See Collins’s three circles.

-K-
Kaizen Event (or Kaizen Blitz): An intense short-term project that gives focus to improve a process. Substantial resources are committed during this event; for example, Operators, Engineering, Maintenance, and others are available for immediate action. A facilitator directs the event, which usually includes training followed by analysis, design, and area rearrangement.

Kanban: Pulling a product through the production process. This method of manufacturing process-flow-control only allows movement of material by pulling from a preceding process. Inventory is kept low. Then quality errors are detected, there is less product affected.

KPIV (Key Process Input Variable): Factors within a process correlated to an output characteristic(s) important to the internal or external customer. Optimizing and controlling these is vital to the improvement of the KPOV.

KPOV (Key Process Output Variable): Characteristic(s) of output of a process that are important to the customer. Understanding what is important to the internal and external customer is essential to identifying KPOVs.

-L-
Law of physics: A physical law, or a law of nature, that is considered true.

Lean: Improving operations and the supply chain with an emphasis on the reduction of wasteful activities like waiting, transportation, material hand-offs, inventory, and overproduction.

Lean Enterprise: Focusing on the identification and reduction of waste throughout the entire organization and involving both suppliers and customers in the effort.

Lean Manufacturing: A manufacturing process involving tools such as value-stream mapping and workflow diagrams without considering either supplier or customer processes. The methodology used to implement the Lean production philosophy.

Level Five System: Jim Collins (2001) describes in Good to Great a level five leader as someone who is not only great when they are leading an organization but who enables the organization to remain great after they leave it. I describe the level-fi veleader-created legacy as being a Level Five System.

-M-
MC²: More Customers and Cash

Malcolm Baldrige Award: An award that recognizes yearly up to five companies that demonstrate outstanding quality management systems. The award, started in 1986, would later be known as the Malcolm Baldrige National Quality Improvement Act which was created under the direction of ASQ and the National Institute of Standards and Technology. The Act established a national award that recognizes total quality management in American industry.

Master black belts (MBBs): Black belts who have undertaken two weeks of advanced training and have a proven track record delivering results through various projects and project teams. They should be a dedicated resource to the deployment. Before they train, master black belts need to be certifi ed in the material that they are to deliver. Their responsibilities include coaching black belts, monitoring team progress, and assisting teams when needed.

Mean: The mean of a sample is the sum of all the responses divided by the sample size.

Measurement Systems Analysis: Analysis of the complete process of obtaining measurements. This includes the collection of equipment, operations, procedures, software and personnel that affects the assignment of a number to a measurement characteristic. Includes, but is not limited to, Gage R&R.

Median: For a sample, the number that is in the middle when all observations are ranked in magnitude. For a population, the value at which the cumulative distribution function is 0.5.

Metric: A measurement that quantifi es a particular characteristic.

Mini Kaizen: Recognizes that the best expert for a job is the person who does the job. Everyone is encouraged to make small improvements that are within their power to implement. The collection of thousands of small improvements can have a major impact. Its implementation requires both conscious and subconscious day-to-day and minute-by-minute thinking about improvements by all employees. Required also is that these employees possess this type of thinking skills.

Muda: A Japanese term indicating efforts that do not add value (waste). some categories of muda are defects, over production or excess inventory, idle time and poor layout.

Multi-vari chart: A chart that displays the variance within units, between units, between samples and between lots. It is useful in detecting variation sources within a process.

-N-
Nonconformance: Failure to meet specifi cation requirement.

-O-
Organizational Wisdom: Wisdom about a process that comes intuitively from past experiences of team members. It is used to provide possible solutions to problems, which are then evaluated by appropriate analysis tools.

Out of Control: Control charts exhibit special causes conditions. The process is not predictable.

-P-
Pareto chart: A graphical technique used to quantify problems so that effort can be expended in fi xing the “vital few” causes, as opposed to the “trivial many.” Named after Vilfredo Pareto, an Italian economist.

Pareto principle: 80 percent of the trouble comes from 20 percent of the problems, that is, the vital few problems.

Passive Analysis: Data collected and analyzed as the process is currently performing, without adjustments to the process, to determine KPIVs.

PDCA: See Plan do check act.

P-DMAIC (Roadmap): An IEE project defi ne–measure–analyze–improve–control roadmap for improvement project execution, which contains a true integration of Six Sigma and Lean tools.

Plan do check act (PDCA): Frequently referred to as the Deming cycle or Shewhart cycle. Sometimes the check step is replaced with a study step; that is, PDSA. PDCA has the following components: Plan–Recognize a need for change that establish objectives and process for delivering desired results; Do–Implement change that is to be assessed; Check–study results and identify lessons learned; Act–Use lessons learned to take appropriate action. If change was not satisfactory repeat the process.

Poka-Yoke: A Japanese term indicating a mechanism that either prevents a mistake from occurring or makes a mistake obvious at a glance.

Population: Statistically a population is a group of data from a single distribution. In a practical sense, a population could also be considered to be a segment or a group of data from a single source or category. In the process of explaining tools and techniques, multiple populations may be discussed as originating from different sources, locations, or machines.

PPM (Parts per Million Opportunities): A defect-per-unit calculation giving additional insight into a process by including the number of opportunities for failure. When this is done, the metric is DPMO. Care must be taken in estimating the number of opportunities for defects in a process.

Predictable process: A stable, controlled process where variation in outputs is only caused by natural or random variation in the inputs or in the process itself.

Preventive action: An action that is taken to eliminate from reoccurrence a potential nonconformity cause or other undesirable situation.

Probability Distribution: A formula, table or graph providing the probability associated with each value of the random variable if the random variable is discrete or providing the fraction of measurement in the population falling in specific intervals if it is continuous.

Probability plot: Data are plotted on a selected probability paper coordinate system to determine if a particular distribution is appropriate (i.e., the data plot as a straight line) and to make statements about percentiles of the population. The plot can be used to make prediction statements about stable processes.

Process capability/performance metric: IEE uses the term process capability/performance metric to describe a process’s predictive output in terms that everyone can understand. The process to determine this metric is:

1. An infrequent subgrouping and sampling plan is determined,
   so that the typical variability from process input factors
   occurs between subgroups, for example, subgroup by
   day, week, or month.
2. The process is analyzed for predictability using control
   charts.
3. For the region of predictability, the noncompliant proportion
   or parts per million (ppm) is estimated and reported. If
   there are no specifi cations, the estimated median response
   and 80 percent frequency of occurrence is reported.

Process flow diagram (chart): Path of steps of work used to produce or do something.

Pull: A Lean term that results in an activity when a customer or downstream process step requests the activity. A homebuilder that builds houses only when an agreement is reached on the sale of the house is using a pull system. See push.

Pull for project creation: This term is derived from the Lean term, pull. An IEE deployment objective is that performance metric ownership is assigned through the business value chain, where metric tracking is at the 30,000-foot-level. In the E-DMAIC process, the enterprise is analyzed as a whole to determine what performance metrics need improvement and by how much so that whole organizational goals can be met. These metric improvement needs would then create a pull for project creation. See push for project creation.

Push: A Lean term that results in an activity that a customer or downstream process step has not specifi cally requested. This activity can create excessive waste and/or inventory. A homebuilder that builds houses on the speculation of sale is using a push system. If the house does not sell promptly upon completion, the homebuilder has created excess inventory for his company, which can be very costly. See pull.

Push for project creation: This term is derived from the Lean term, push. Lean Six Sigma deployments create and execute projects that are meant to be benefi cial to the business. However, when assessing the typical Lean Six Sigma project selection process, we note that either a deployment steering committee or some level of management selects projects from a list that they and others think are important. For this type of deployment, there is often a scurry to determine a project to work on during training. This a push for project creation; that is, people are hunting for projects because they need to get certified or meet a certain goal. With this deployment system, there can be initial successes since agree-to low hanging fruit projects can often be readily identifi ed and provide significant benefits; however, this system of project determination is not typically long lasting. After some period of time, people have a hard time defi ning and/or agreeing to what projects should be undertaken. In addition, this project creation system does not typically look at the system as a whole when defining projects to undertake. This system can lead to suboptimization, which could be detrimental enterprise as a whole. Finally, this Lean Six Sigma deployment system typically creates a separate function entity that manages the deployment, which is separate from operational scorecards and functional units. In time, people in these functions can be very visible on the corporate radar screen when downsizing forces occur or there is a change in executive management, even though the function has been claiming much past success. See pull for project creation.

-R-
Radar chart: A chart that is sometimes called a spider chart. The chart is a two-dimensional chart of three or more quantitative variables represented on axes originating from the same point.

Regression or Regression Analysis: A defined process for quantifying and modeling the output of a process relative to its input variables. It estimates the relationship between inputs and outputs of a process and produces mathematical model of that relationship. Its use can lead to a better understanding of the critical factors controlling ht equality of the process output.

Robust Process: A process with output variability that is not sensitive to the normal variation from its input variables.

Rolled throughput yield (RTY): For a process that has a series of steps, RTY is the product of yields for each step.

Root cause analysis: A study to determine the reason for a process nonconformance. Removal or correction of the root cause eliminates future nonconformance from this source.

-S-
Satellite-Level®: Used to describe a high level IEE business metric that has infrequent subgrouping/sampling so that short-term variations, which might be caused by the variation key input variables, will result in control charts that view these perturbations as common cause variations. This metric has no calendar boundaries and the latest region of stability can be used to provide a predictive statement of the future.

Scorecard: A scorecard is to help manage an organization’s performance through the optimization and alignment of organizational units, business processes, and individuals. A scorecard can also provide goals and targets, which help individuals understand their organizational contributions. Scorecards span the operational, tactical, and strategic business aspects and decisions. A dashboard displays information so that an enterprise can be run effectively. A dashboard organizes and presents information in a format that is easy to read and interpret.

Shewhart control chart: Dr. Shewhart is credited with developing the standard control chart test based on 3s limits to separate the steady component of variation from assignable causes.

Shingo prize: Established in 1988, the prize promotes awareness of Lean manufacturing concepts and recognizes United States, Canada, and Mexico companies that achieve world-class manufacturing status. The philosophy is that world-class business performance may be achieved through focused core manufacturing and business process improvements.

Sigma: The Greek letter (s) that is often used to describe the standard deviation of data.

Sigma level or sigma quality level: A quality that is calculated by some to describe the capability of a process to meet specification. A six sigma quality level is said to have a 3.4 ppm rate. Pat Spagon from Motorola University prefers to distinguish between sigma as a measure of spread and sigma used in sigma quality level (Spagon, 1998).

SIPOC (supplier-input-process-output-customer): Is a tool that describes the events from trigger to delivery at the targeted process.

Six Sigma: A term coined by Motorola that emphasizes the improvement of processes for the purpose of reducing variability and making general improvements.

S.M.A.R.T: Not everyone uses the same letter descriptors for SMART. My preferred descriptors are italicized in the following list: S: specific, significant, stretching; M: measurable, meaningful, motivational; A: agreed upon, attainable, achievable, acceptable, action-oriented, actionable; R: realistic, relevant, reasonable, rewarding, results-oriented; T: time-based, timely, tangible, trackable.

Smarter Six Sigma Solutions (S4): The term used to describe the wise and unique application of statistical techniques to creating meaningful measurements and effective improvements.

Smarter Six Sigma Solutions assessment (S4 assessment): A term introduced in the first edition Implementing Six Sigma (Breyfogle, 2003). The methodology uses statistically based concepts while determining the best question to answer from the point of view of the customer. Assessment is made to determine if the right measurements and the right actions are being conducted. This includes noting that there are usually better questions to ask to protect the customer than “What sample do I need?” or “What one thing should I do next to fix this problem?” IEE resolution may involve putting together what are traditionally considered as separate statistical techniques in a smart fashion to address various problems.

Special Cause: Variation in process from a cause that is not an inherent part of that process. That is, it is not a common cause.

Stakeholders: Those people or organizations who are not directly involved with project work but are affected its success or can influence its results. They may be process owners, managers affected by the project, and people who work in the studied process. Stakeholders also include internal departments, which support the process, fi nance, suppliers, and customers.

Standard Deviation: A mathematical quantity that describes the variability of a response.

Statistical process control (SPC): The application of statistical techniques in the control of processes. SPC is often considered to be a subset of SQC, where the emphasis in SPC is on the tools associated with the process but not on product acceptance techniques.

Statistical quality control (SQC): The application of statistical techniques in the control of quality. SQC includes the use of regression analysis, tests of signifi cance, acceptance sampling, control charts, distributions, and so on.

Stock options: A stock option is a specific type of option with a stock as the underlying instrument; that is, the security that the value of the option is based on. A contract to buy is known as a call contract, while a contract to sell is known as a put contract.

Stories: An explanation for the up-and-down from previous quarter or yearly scorecard/dashboard metrics. This is not dissimilar to a nightly stock market report of the previous day’s activity, where the television or radio reporter gives a specific reason for even small market movements. This form of reporting provides little, if any, value when it comes to making business decisions for a data-driven company.

Sub-grouping: Traditionally, rational sub-grouping issues involve the selection of samples that yield relatively homogeneous conditions within the subgroup for a small region of time or space, perhaps five in a row. Hence, the within-subgroup variation defines the limits of the control chart on how much variation should exist between the subgroups. For a given situation, differing sub-grouping methodologies can dramatically affect the measured variation within subgroups, which in turn affects the width of the control limits. For the high-level metrics of IEE, we want infrequent subgrouping/sampling, so that shortterm KPIV perturbations are viewed as common cause issues. A 30,000-foot-level individuals control chart, which is created with infrequent sub-grouping/sampling, can reduce the amount of fi refi ghting in an organization. However, this does not mean that a problem does not exist within the process. IEE describes approaches to view the process capability/performance, or how well the process meets customer specifications or overall business needs. When improvements are needed to a process capability/performance metric, we can create an IEE project that focuses on this need. IEE projects have a pull for project creation system when metric improvements are needed.

-T-
The balanced scorecard: See balanced scorecard (the).

Theory of Constraints (TOC): Constraints can be broadly classified as being internal resource, market, or policy. The outputs of a system are a function of the whole system, not just individual processes. System performance is a function of how well constraints are identifi ed and managed. When we view a system as a whole, we realize that the output is a function of the weakest link. The weakest link of the system is the constraint. If care is not exercised, we can be focusing on a subsystem that, even though improved, does not impact the overall system output. We need to focus on the orchestration of efforts so that we optimize the overall system, not individual pieces. Unfortunately, organization charts lead to workfl ow by function, which can result in competing forces within the organization. With TOC, systems are viewed as a whole and work activities are directed so that the whole system performance measures are improved.

30,000-foot-level: A Six Sigma KPOV, CTQ, or Y variable response that is used in IEE to describe a high-level project or operation metric that has infrequent subgrouping/sampling so that short-term variations, which might be caused by KPIVs, will result in charts that view these perturbations as common-cause issues. It is not the intent of the 30,000-foot-level control chart to provide timely feedback for process intervention and correction, as traditional control charts do. Example 30,000-foot-level metrics are lead time, inventory, defective rates, and a critical part dimension. There can be a drill-down to a 20,000-footlevel metric if there is an alignment; for example, the largest product defect type. A 30,000-foot-level individuals control chart can reduce the amount of fi refi ghting in an organization when used to report operational metrics. As a business metric, 30,000-foot-level reporting can lead to more efficient resource utilization and less playing games with the numbers.

Three Rs of business: Everyone doing the Right things and doing them Right at the Right time.

Throughput, TOC: The rate of generating money in an organization. This is a financial value-add metric which equates to revenues minus variable costs.

TOC: See Theory of constraints.

TOC throughput: See Throughput, TOC.

Total quality management (TQM): A management program, which works on continuous product or service improvements through workforce involvement.

TQM: See Total quality management.

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Value chain: Describes flowchart fashion both primary and support organizational activities and their accompanying 30,000-foot-level or satellite-level metrics. An example of primary activity flow is: develop product – market product – sell product – produce product – invoice/collect payments – report satellite-level metrics. Example support activities include IT, finance, HR, labor relations, safety and environment, and legal.

Visual factory: Management by sight. Visual factory involves the collection and display of real-time information to the entire workforce at all times. Work cell bulletin boards and other easily-seen media might report information about orders, production schedules, quality, delivery performance, and financial health of business.

Voice of the customer (VOC): The identifi cation and prioritization of true customer needs and requirements, which can be accomplished through focus groups, interviews, data analyses, and other methods.

Voice of the process (VOP): A quantification of what the process delivers. A voice of the process to voice of the customer needs assessment can identify process improvement focus areas; for example, a 30,000-foot-level assessment indicates an 11 percent delivery-time nonconformance rate.

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WIP: A general description for inventory that is being processed within an operation or is awaiting another operation.

Work in process (WIP): See WIP.

Work in progress (WIP): See WIP.

Workout (IEE): An IEE workout is a week-long concentrated effort to build the E-DMAIC framework; that is, a kaizen event to create the E-DMAIC framework. Typically on Monday there is a one-day executive workshop, which among other things describes IEE and its structure. On Tuesday through Wednesday the facilitator works with an IEE in-house technical team and others to build the E-DMAIC framework with its process drilldowns. On Friday, a two-hour report out of the customization of the E-DMAIC system, as described on Monday, is presented to the executive team that attended the Monday session. This presentation will include, among other things, a comparison of a sample of their 30,000-foot-level metric report outs with their current reporting methods. After the week-long session, the workout facilitator will continue work with the IEE in-house technical team to continually refi ne their E-DMAIC system.

-Y-
Yellow Belts (YBs): Process improvement team members who typically receive three days of training, helping their effectiveness in the participation of project executions, such as data collection, identifying voice of the customer, and team meetings.