LEAN SIX SIGMA GLOSSARY OF TERMS GLOSSARY OF TERMS LEAN SIX SIGMA APOLLO SOLUTIONS SIX DR. TOM DEPAOLI
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 1 LEAN SIX SIGMA GLOSSARY OF TERMS GLOSSARY OF TERMS Availability ­The ability of a resource to be ready to perform its designated function under defined conditions at a given time. Availability can be expressed as the ratio of Uptime (in active use or on standby) to Downtime (under repair, awaiting spare replacement parts, fluids, etc.). Black Belts – Under the direction of the Master Black Belt (Sensei), the Black Belts assist Champions and Team Leaders to schedule, plan and execute Kaizens Belts (Lean) – Includes any combination of two consisting of Black and/or Green Belts Boundaries and Limitations – Identify all boundaries or limitations that may come into play in the planning, execution, or follow­up to the event. Fence steps. Current State (AS IS) –Current State refers to mapping the existing process (the thing) to reflect how the work is executed today – It is the “As is” state of the process. Current State Issues – Identify all current state issues impacting the current process (the thing). Customer/Sponsor/Stakeholders – People affected by the process. The Kaizen Team should look to have a Sponsor or Customer representative on the Kaizen Team. If not available to participate 100%, then should be available via Phonecon. Deliverables ­ (output of the process and Kaizen) Do Its (Just Do Its) ­ “Do Its” are process improvement action items that are identified during the Kaizen that can be accomplished in a very short period of time. Some Do Its are accomplished during the event and others are assigned and accomplished following the event.
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 2 LEAN SIX SIGMA GLOSSARY OF TERMS Enterprise Resource Planning (ERP) ­The activity and actions that attempt to integrate the data for decision­making and actions of all departments and functions within a company into a common planning process. This is usually accomplished through installation of an ERP software package. ERP goes beyond MRP and MRPII by attempting to integrate all parts of the organization, not just the production and production planning aspects. Event (Kaizen) Constraints – (Financial, Personnel, and Equipment) Identify any/all constraints to the planning, execution, or follow­up to the event Expected Cost Savings – This identifies areas and projects cost savings that will be realized as a result of the event Facilitator (Usually Lean Belts) – Leads the Kaizen and works with the Belts on the Planning, Execution and Follow­up activities associated with the event. Fence Post (Beginning Fence Post – Trigger­ Start Process step) ­The first step in the process (the thing) being evaluated after receipt of input from the upstream customer. Fence Post (Ending Fence Post – Done­ Last Step) – The last step in the process (the thing) being evaluated and the output is delivered to the downstream customer. Five S’s (5S) ­ A checklist for good housekeeping to achieve greater order, efficiency and discipline in the workplace. It is derived from the Japanese words seiri, seiton, seiso, seiketsu and shituke. The English equivalents are sort, straighten, scrub (or shine), systematize and standardize. Another popular version of the five S’s is sort, simplify, sweep, standardize and sustain. Safety is often referred to as the sixth “S.” Five “Whys” ­ A root­cause analysis technique used whenever a problem is encountered, to identify the true root cause of the problem for corrective action. The question “why” is asked a sufficient number of times to get to the level of the root cause. Flow ­The smooth, uninterrupted movement of a product or service through a process. Flow Chart ­ A graphical representation of the steps in a process.
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 3 LEAN SIX SIGMA GLOSSARY OF TERMS Flow Production ­ One of the basic pillars of just­in­time (JIT) production systems. In flow production, machines (resources) are arranged in the order of processing so that the work piece flows between operation steps without interruption and/or stagnation. Flow Time ­The total elapsed time a customer must wait to receive the product or service after placing a request (order). In some industries, Flow Time is referred to as throughput Time, Turnaround Time or Lead Time. Touch Time is included in the Flow Time. Therefore, Flow Time minus waiting and/or interruptions equals Touch Time. FTE – Full Time Equivalence (manpower) Functional Arrangement ­ The grouping and co­locating resources performing like operations. Functional Arrangement is in contrast to Cellular Arrangement. Future State – Future TO BE state of a process. Green Belts – An individual who can plan and execute the Kaizen cycle in support of identified Team Leaders, and assists the planning and execution of the Kaizen. Green Belts normally work for the Champion and may be part­time or full­time depending on position in the organization. Heijunka ­ Equalization of quantities and types of products/services demanded by the customer. This is sometimes referred to as load smoothing. Jidoka (Autonomation) ­ A device that stops a machine or process whenever a defective. Product is produced. This device is an essential element in introducing JIT to a process. Could be a legal flag in a transaction. JITT – Just In Time Training Just­In­Time (JIT) ­ A system designed to achieve the best possible quality, cost and delivery time of products or services to exactly meet customer(s) requirements by delivering the right products or services at exactly the right time. Important elements of JIT are Flow, Takt Time, Pull and Standard Work. JON – Job order number Kaizen – Continuous, incremental improvement of an activity to create more value with less muda or waste.
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 4 LEAN SIX SIGMA GLOSSARY OF TERMS Lead­time – The total time a customer must wait to receive a product after placing an order. Master Black Belts – This individual provides leadership and guidance for Lean implementation. The Master Black Belt (Sensei) will provide guidance and counsel to the Commander, Lean Office, Senior Leadership, Value Stream Champions, Black Belts, Green Belts, and Lean event participants in the conduct of Kaizens, advanced Lean Techniques, goal setting, training, and qualifications. The Master Black Belt/Sensei may also be assigned large complex projects. i Materials and Supplies – Identify all/any special materials or supplies required for execution of the Kaizen event. Metrics Based Process Mapping – A method of quantifying the mapping the Current State (AS IS) and Future State (TO BE) Processes of the during the KAIZEN. The method visually captures all the relevant metrics (Flow Time, Touch Time, % C&A, etc) associated with each of the process steps including any/all functional area swim lanes, which show the parallel process steps within the selected fence posts or process steps. Muda – Japanese for WASTE. Capacity exceeds load. Necessary Non­Value Added (N­NVA) – An activity or step that does not meet the value added description, but is required and cannot be changed. Non­Value Added (NVA) ­ Any activity that consumes resources but creates no value. Parking Lot Items ­ Parking Lot Items are issues and concerns that could not be addressed by the Team during the Kaizen. As part of the post­event activities, the Team Lead should address the items with the Black Belt. Preparation To­Do List for a Kaizen – Identifies tasking related to the planning efforts for the Kaizen including point­of­contact and due date Process – A set of individual operations required to create a design, completed order, or product. Pull – A system of cascading production and delivery instructions from downstream to upstream activities in which nothing is produced by the upstream supplier until the downstream customer signals the need.
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 5 LEAN SIX SIGMA GLOSSARY OF TERMS Quality – These are just two of the Lean Quality Process Metrics
· Complete and accurate % ­ identifies how complete and accurate “the thing” being mapped is at receipt of (handoff) for all steps in the process
· First Roll Pass Yield % ­ This is a product of the entire C&A % across the process map. (Success rate first time on a transaction) Kaizen – (KAIZEN). The Kaizen is an outcome of the examination of an inefficient process that has been flagged as an area of opportunity for improvement. The Kaizen is notionally conducted within a three to four week period. Kaizens are action oriented in nature and typically one to two business day events. The end goal is aimed at validating, evaluating, improving, and then moving from the current state (AS IS) map of the process steps selected to implementation of the new and improved future state (TO BE) map at completion of the event. ROI – Return on Investment SIPOC Diagram – High level diagramming to determine the boundaries (fence posts) of the event. SIPOC stands for Supplier, Inputs, Process, Outputs, and Customer. SMEs – Subject Matter Experts Spaghetti Chart – A map of the path taken by a specific product as it travels down the value stream in mass­production organization, so­called because the product’s route typically looks like a plate of spaghetti. Subject Matter Experts (SMEs) ­ Team Members – includes individuals doing the work from the process areas being evaluated during the Kaizen. Doers of the process. Responsible for full time participation during the Kaizen, may be assigned lead for actions, projects, or do its identified during the Kaizen. Team Lead (TL) or Kaizen project Leader­ Affected Area Team Leader – Knowledgeable about the process and lean tools. Participates in the Kaizen event, and is designated the POC and responsible for working with the Belts on all actions that come out of the Kaizen. Implements the future process (TO BE). Touch­time – Time it would take to work on “the thing” from beginning to end without any interruptions. Actual hands on time required to complete the step. Trigger – What initiates the start of the process? What input did the supplier provide?
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 6 LEAN SIX SIGMA GLOSSARY OF TERMS Value­added % = (Touch Time/Flow Time) X 100% Value Added (VA) – Any step or activity in a process is considered Value Added if it meets all of the following:
· If the customer wants it
· If it changes the product or service
· If it is done right the first time (i.e. not rework) Value Stream – The specific activities required to design, order, and provide a specific product, from concept to launch, order to delivery, and raw materials into the hands of the customer. Value Stream Champion or Champion (VSC) – Overall ownership of the process, attends the Kaizen and pre­kaizen meetings, manages participation decisions, asks questions, and approves the Kaizen and results. Value Stream Mapping (VSM) – A VSM is a visual representation of major process steps, information flow, and material flow from customer request to customer receipt of product or services. It contains relevant metrics at a roof­to macro level perspective. As part of VSM, you must walk the process as if you are the “thing (product/service).” A VSM makes it easy to visualize the steps and waste in your processes. It is a blueprint for the prioritization of improvement opportunities and the creation of a Rapid Improvement Plan (RIP). It helps focus on maximizing overall flow, rather than sub­optimizing specific functions/departments. It is easy to learn and requires nothing more than basic office supplies (i.e. butcher paper, post­it notes, markers, etc.). A VSM shows the linkage between information and material flow. It makes the disconnects and obstacles to flow stand out. WIP ­ Work­In­Process
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 7 LEAN SIX SIGMA GLOSSARY OF TERMS More Terms Analyze DMAIC phase where process detail is scrutinized for improvement opportunities. Black Belt Six Sigma project team leaders, who become expert in the use of the Lean Six Sigma methodologies and tools. A key responsibility of Black Belts is to share their knowledge and to train others. Black Belts are normally full­time on business improvement activities. Brainstorming A technique used by teams to generate ideas on a particular subject or to explore a particular problem. Each individual involved is asked to think creatively about the issue, and write down as many possible ideas. Following this, each point raised is then discussed in more detail. Business case A structured proposal for business process improvement that functions as a decision package for enterprise leadership. A business case includes an analysis of business process needs or problems, proposed solution, assumptions and constraints, alternatives, life cycle costs, benefits/cost analysis, and investment risk analysis. Charter A written commitment, between a six sigma team and the organization; it includes the business case, problem and goal statements, constraints and assumptions, roles, preliminary plans, scope and the roles of participants in the project etc. This document states the scope of authority for an improvement project or team, and is approved by management. Periodic reviews with the sponsor ensure alignment with business strategies; review, revise, refine periodically throughout the DMAIC process based on data. Company culture A system of values, beliefs and behaviors inherent in a company. The company culture has a strong effect on business performance, and so top management needs to define and create the correct culture in order to ensure optimum performance.
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 8 LEAN SIX SIGMA GLOSSARY OF TERMS Control DMAIC phase C; once solutions have been implemented, ongoing measures track and verify the stability of the improvement and the predictability of the process. This stage often includes process management techniques and systems including process ownership, cockpit charts and/or process management charts, etc. Customer The person, place, or thing for which a particular process adds value (Individuals, teams, companies, groups, etc). Customers can be grouped as internal customers and External Customers. Cycle Time Cycle time is the total time from the beginning to the end of your process, as defined by you and your customer. Data Data are factual information used as a basis for reasoning, discussion, or calculation; often this term refers to quantitative information. There are two basic classifications of numerical data. 1) Measured, variable, or continuous data. 2) Attribute or counted data Defect Any result that does not conform to the standard needed to satisfy the customer's requirements. The propensity to generate defects increases, as process capability is lost, which in turn increases process variation. The creation of defects results in extra cost, delay, inventory, debtors, loss of capacity, stress and frustration etc as well as damaging customer relationships. Define The first DMAIC phase which defines the problem/opportunity, process, and customer requirements. Because the DMAIC cycle is iterative, the process problem, flow, and requirements should be verified and updated for clarity, throughout the other phases. Deployment Dispersion, dissemination, broadcasting or spreading of a communication downward and laterally throughout an organization. It also describes the putting into action of a strategy, improvement plan or process.
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 9 LEAN SIX SIGMA GLOSSARY OF TERMS Deployment Champion (also known as Deployment Director) A senior level manager, normally reporting to an Executive Team, who is responsible for the successful management of the deployment plan. Coordinates Lean 6 Sigma policy, planning and execution. Generally a command will have a full time Deployment Champion if they have 15 or more Black Belts assigned. DMAIC Define, Measure, Analyze, Improve and Control. The steps of a Lean 6 Sigma project. Define the real problem to be solved; collect data that defines the issues; analyze the data using statistical techniques; develop an improvement based on the analysis; put the improvement in place and control it, so that it continues to provide benefit over time. First Time Through The idea that quality is achieved at its lowest cost by producing your product or service right the first time, without rework. Five Why’s A simple problem solving method of analyzing a problem or issue by asking “Why” five times. The root cause should become evident by continuing to ask why a situation exists. Flow Chart A problem solving tool that illustrates a process. It can show the “as is” process or “should be” process for comparison and should make waste evident. Goal Statement A description of the intended target or desired results of Process Improvement or Design/Redesign activities. It is usually included in a team charter and supported with actual numbers and details once data has been obtained. Green Belt The team member who demonstrates an interest in, and aptitude, for the Lean Six Sigma methodologies and tools. They receive basic training in the techniques, which they use either in support of a Black Belt project, or to run their own projects typically in their own area of responsibility. Green Belts are normally part time on Six Sigma project activities, although in most cases they use Six Sigma methods as part of their normal jobs.
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 10 LEAN SIX SIGMA GLOSSARY OF TERMS Hypothesis Testing The application of statistical tests to a data sample, in order to determine what cannot be concluded based on the data (the results of hypothesis testing are either a rejection of the hypothesis or a failure to reject). Hypothesis testing can be conducted with attribute and continuous data and on normal and non­normal samples. The actual tests will be different based on the nature of the data. Hidden Factory A concept for showing the costs of creating quality without using lean or 6 sigma. In the hidden factory, there are a number of stations where rework or scrap is created, in order to achieve a quality target. The goal of Lean 6 Sigma is to remove the requirement for rework and scrap, while increasing quality. The result is higher quality at a lower cost. Hoshin Kanri Strategy. Literally it means “to move the whole ship in the right direction.” It refers to the requirement that all improvement projects meet the strategic needs of the organization. Improve DMAIC phase where solutions and ideas are creatively generated and decided upon. Once a problem has been fully identified, measured, and analyzed, potential solutions can be determined to solve the problem in the problem statement and support the goal statement. Just in Time A lean concept that aims to deliver products and services to the customer only as they are requested. It goes beyond the Pull Systems concept, in that it addresses the timing of the process and process communications. It answers questions such as: when must I start this process step in order to have a product ready for the customer, when they ask for it? Kaizen A term meaning Continuous Improvement. In Lean 6 Sigma terms, it refers to a project performed at the work­group level that will remove waste from a process. These types of projects can be performed quickly (usually less than 2 months). Lean 6 Sigma A method by which processes are improved for quality; cost; speed and accuracy. It is the combination of Lean Methods and 6 Sigma.
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 11 LEAN SIX SIGMA GLOSSARY OF TERMS Lead Time The amount of time, defined by the supplier, that is required to meet a customer request or demand. (Note, Lead Time is not the same as Cycle Time). Lean Methods A set of tools designed to improve a process on a continuous basis. Lean is designed to remove waste from a process by identifying non­value added steps. Lean will improve process speed to conform to customer requirements. With lean, we say that waste is the enemy. It was developed by Taichi Ohno at Toyota Motor Co. from the 1950’s to the 1980’s. Lean Six Sigma: business improvement methodology that maximizes shareholder value by achieving the fastest rate of improvement in customer satisfaction, cost, quality, process speed, and invested capital. Master Black Belt Master Black Belts are Six Sigma Quality experts that are responsible for the strategic implementations within an organization. Master Black Belt main responsibilities include training and mentoring of Black Belts and Green Belts; helping to prioritize, select and charter high­impact projects; maintaining the integrity of the Six Sigma measurements, improvements and tollgates; and developing, maintaining and revising Six Sigma training materials. The Master Black Belt should be qualified to teach other Six Sigma facilitators the methodologies, tools, and applications in all functions and levels of the company, and should be a resource for utilizing statistical process control (typically just outside the Black Belt's knowledge base) within processes. Measure DMAIC phase M, where key measures are identified, and data are collected, compiled, and displayed. Metrics, Process (or Input) The subset of measures, the improvement of which has a direct positive effect on Results Metrics. Metrics, Results The subset of measures, the improvement of which are critical to the success of the organization. A change in Results Metrics, will directly and significantly affect customer or stakeholder satisfaction.
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 12 LEAN SIX SIGMA GLOSSARY OF TERMS Non Value Added (NVA.) Any product, process, or service that does not add value to the customer Output The result of a process. The deliverables of the process; such as products, services, processes, plans, and resources. Policy A direction plan for achieving an organization’s goals. Poke­Yoke A term that means error­proof. Error­proofing is one of the holy grails of Lean 6 Sigma projects. It means that because of the process improvement, it is impossible for an error to occur. Examples are computer fields that automatically fill in, based on other information entered; or an email that is automatically sent when an event occurs. Process A series of steps and interrelated work activities, characterized by specific inputs, and tasks which add value, and make up a procedure for a set of specific outputs. Process Map Type of flow chart that provides an Illustrated description of how things get done. It enables participants to visualize an entire process and identify areas of strength and weaknesses. It helps reduce cycle time and defects while recognizing the value of individual contributions. Process Owner The individual(s) responsible for process design and performance. The process owner is accountable for sustaining the gain and identifying future improvement opportunities on the process.
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 13 LEAN SIX SIGMA GLOSSARY OF TERMS Project Scoping The general term used for the process of developing project ideas. A well scoped project will have the following characteristics:
· Can be completed within 4­6 months
· Will solve a defect that is within the commands’ span of control
· Will deal with a process that repeats itself quite often
· The defect is measurable and the possibility to collect data exists
· Will result in an improvement that is important to the customers of the process
· Will result in a 50% process improvement or $250,000 savings Project Sponsor (also known as Project Champion) Senior/middle level managers who are responsible for the selection and support of Black & Green Belts, and with the selection and management of Six Sigma improvement projects. Project Team A team managing the work and activities of a project. The work typically involves balancing competing demands for project scope, time, cost, risk and quality, satisfying stakeholders with differing needs and expectations and meeting identified requirements. Pull Systems A process that only responds to customer demand. The idea being, that work done that is not in response to customer demand is wasted effort. Root Cause An identified reason for the presence of a defect or problem. The most basic reason, which if eliminated, would prevent recurrence. The source or origin of an event. Sample A Sample is a portion of the whole collection of items (population). Six Sigma The term used to describe a system of process improvement. The goal of 6 Sigma is to identify customer requirements; reduce variation of a process that is targeted at that requirement; and center the process results on the customer target. In 6 Sigma, we say variation is the enemy. It was invented by Mikel Harry in the early 1980’s at Motorola.
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 14 LEAN SIX SIGMA GLOSSARY OF TERMS Stakeholder People who will be affected by the project or can influence it but who are not directly involved with doing the project work. Examples are Managers affected by the project, Process Owners, People who work with the process under study, Internal departments that support the process, customers, suppliers, and financial department. Takt Time The pace of customer demand. If a customer demands 8 products per 8 hour day, then the takt time is one hour. You must have the capacity to produce 1 product every hour, in order to meet customer demand. Tollgate Review component of DMAIC that helps to ensure that the project requirements of a phase are met before starting the next phase At the end of each phase the Black belt and team members meet to review that the requirements of the DMAIC phase have been completed. Excellent communication tool for keeping the team on the same page and involved in the process. Upper and Lower Statistical Limits These are the limits that define quality. They are set by the customer. If a customer demands that deliveries be made within 2­4 days, then those are your LSL and USL. Any delivery that falls outside those limits are defects. Value Added Activities or work essential to ensure a product or service meets the needs of the customer. Value Stream Mapping A method of visualizing a process, so that improvements can be made to it. Includes process steps, methods for communicating requirements to each process step and data that describes each process step. VSM is an important starting point for most DMAIC projects. There are three processes associated with VSM: the current state (what you think the process is); the current state (what the process really is) and the future state. Visual Factory All lean improvement rests on the idea that everything should be visible, so that if there is a problem someone will notice and take action. The visual factory has 6 levels: Share information; Share standards at the site; Build standards into the workplace; Warn about abnormalities; Stop abnormalities; Prevent abnormalities.
www.apollosolutions.us Apollo Solutions Dr. Tom DePaoli [email protected] 15 LEAN SIX SIGMA GLOSSARY OF TERMS Voice of the Customer (VOC) The customer feedback system. It may consist of meetings, surveys or interviews that gather customer feedback in a form that may be acted upon. Since the vast majority of improvements are designed to improve customer service, this is critical. Waste Any activity or product that consumes resources and produces no added value to the product or service a customer receives. Y=f(X) Refers to cause and effect and is a tool for root cause analysis. An output variable Y is dependent on the inputs of one or more independent variables, X. Lean 6 Sigma projects focus on improving Y, through the improvement of a ‘key’ X variable. That means we should be treating causes, not symptoms. Y=f(X) analysis is used as a brainstorming tool for identifying project opportunities and as a tool to ensure that the project is properly focused.
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