0% found this document useful (0 votes)
335 views32 pages

Appendix

The document contains summaries and definitions of various statistical concepts and Six Sigma tools and methodologies. It includes 9 appendices that define terms related to measures and formulas, control charts, distributions, processes, and a glossary of Six Sigma terms. The appendices provide reference material on statistical concepts for Six Sigma practitioners.

Uploaded by

Zein Mubarak
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
335 views32 pages

Appendix

The document contains summaries and definitions of various statistical concepts and Six Sigma tools and methodologies. It includes 9 appendices that define terms related to measures and formulas, control charts, distributions, processes, and a glossary of Six Sigma terms. The appendices provide reference material on statistical concepts for Six Sigma practitioners.

Uploaded by

Zein Mubarak
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 32

Appendix 1

Six Sigma Measures and Formulas

319

320

Appendix 2
Control Charts Constants

321

322

Appendix 3
Normal Distribution

323

324

325

Appendix 4
t-Distribution

326

327

Appendix 5
Chi-Square Distribution

328

329

Appendix 6
F Distribution (=1%)

330

331

Appendix 7
F Distribution (=5%)

332

333

Appendix 8
Process Levels &
Equivalent PPM Quality Levels
Based on the assumption that in the long term the process could drift by
plus or minus 1.5

334

Appendix 9
Glossary
5S: A methodology of hygienic operations. It includes 5 steps: Sort, Straighten, Shine,
Standardize and Sustain.
7 Wastes: Represents classes of none value added activities in the process. It includes: Defects,
Overproduction, Transportation, Waiting, Inventory, Motion and Improper processing.
8D: A methodology used to solve problems. It has 8 steps. The first one is problem statement
and the last one is to congratulate the team on their success.
Activity Network Diagram (AND): Also called Critical Path Method (CPM). It draws the timeline
of the project steps in a format that includes arrows and nodes.
Activity on arrow (AOA): It is an Activity Network Diagram where the activities are listed on
arrows.
Activity on node (AON): It is an Activity Network Diagram where the activities are listed on
nodes.
Affinity Diagram: A diagram used at the end of brainstorming to put all related ideas in one
family (or affinity). At the end, this diagram organizes our thinking to link similar ideas.
AIAG: Automotive Industry Action Group.
Aliasing: It occurs in fractional factorial design where we cannot distinguish between the effect
of the factor and the other interactions. It is also called Confounding.
Alpha (): Level of significance. It equals to 1-level of confidence. This is called sometimes
Type I Error or Producer Risk in hypothesis testing. It really represents the probability of
rejecting the Null Hypothesis when it is true.
Alternative Hypothesis: The second hypothesis statement in a hypothesis test.
Anderson Darling Test: A test used to assess normality. If the value is below 0.5 then the data is
normally distributed.
Andon: Japanese word that means alarm or light.

335

ANOVA (Analysis Of Variance) Table: A table that divides the variability of the response into
variability due to factors, variability due to interactions between factors and error.
Appraisal Costs: Costs of all activities used to measure performance such as audits.
Assignable Cause: See Special Cause.
Attribute Control Charts: Control charts for attribute data. These charts include: p, np, c and u
charts.
Attributes: Discrete metrics such as: number of defects. These variables cannot have decimal
values or fractions.
Axiomatic Design: Method of designing and comparing designs. It was introduced by Nam Suh.
It has two main Axioms; independence of functional requirements and minimal information
content of the design.
Baseline: Current performance. It is called sometimes the As-Is condition.
Baselining: Establishing the performance of the process in its current state. This is considered
the baseline of the analysis.
BB (Black Belt) Forum: A group of black belts meet to discuss best practices, new findings and
general experiences.
Benchmarking: Following the steps of someone who is doing much better than us in their
performance. Trying to be like the best in class in our segment.
Best Practices: A collection of lessons learned gathered to show the best way to perform a task.
This is typically a result of experiences.
Beta (): "Type II Error" or "Consumer Risk". It really represents the probability of accepting the
Null Hypothesis when it should be rejected.
Bias: The difference between the measurement and the actual value. Sometimes it is called
Measurement Error.
Big Y: Major metric or CTQ of the project.
Block: A factor in a designed experiment that we can control but we hope it is not significant. It
is not typically the focus of our experiments but it may have effect on the response. Examples
include the shift of operation or the operator.
Bottleneck: The slowest step in the process.
Bottom Line: Profits.

336

Box and Whisker Plot: A descriptive plot that shows the distribution of the data. It is a box that
has whiskers. The box is bounded by the first quartile of the data and the third quartile of the
data. Any data point exceeding either of the whiskers is considered an outlier.
Brainstorming: A session in which each team member reveals his opinion about the problem
discussed. Brainstorming has two rules: we care about the amount of ideas not the quality of
ideas and all ideas are accepted without major discussions.
Business Needs statement: A statement in the charter mentions the major needs addressed by
the project.
Business Process Re-engineering (BPR): A complete re-engineering of the process with
dramatic changes.
Business Processes: Major processes in the business that has impact on the business. It does
not include any trivial processes such that taken place in the cafeteria.
Buy-In: the status of agreement and support from upper management.
Capability: A representation of how much a process can meet specification. A capable process
is a process that meets its specification.
Cause and Effect (C&E) Diagram: Also called Ishikawa Diagram or Fishbone Diagram. It classifies
all possible causes of the problem into 4 or 5 categories.
Champion: See Sponsor.
Charter: A document that is considered a contract between the Six Sigma team and the
Sponsor.
CI: Continuous Improvement.
Coefficient of Correlation: A number between -1 and +1 that represents how strong the
relationship between X and Y is and whether this relationship is positive or negative.
Coefficient of Determination: A number between 0 and +1 that represents how strong the
relationship between X and Y. This value is the square of the coefficient of correlation.
Common Cause: Variability in the system caused by the nature of the process. It is the inherent
variability that we learned to live with. A process with common cause only is considered in
control.
Confidence Interval: A statistical interval claims that a value (i.e. the mean of the population) is
between two values.

337

Conflict: Disagreement between team members where each member insists on the value of his
own ideas and rejects the ideas of others.
Confounding: See Aliasing.
Constraints: Limitations to the process or to the performance. It can be regulations.
Constructive Feedback: Feedback that aims at motivating people to improve their
performance.
Control Charts: Charts used to reveal if the data is in control or out of control.
Control Limits: Limits calculated and used for each control chart. They are sometimes called the
Voice Of the Process.
Control Plan: A plan used in the control phase to ensure no degradation in performance. It
includes: audits, checks, tests, etc.
Controlled Factor: In a designed experiment this is a factor that we can easily control.
Controls with Feedback: Engineering process controls that have a feedback which allows
changes in the process based on the measurement observed by the controller.
Cost Of Poor Quality (COPQ): It represents all costs related to improving quality or fixing issues.
These costs are divided into preventive, appraisal and failure costs.
Cp: Process capability index. It calculates the capability of the process but it does not account
for any mean shift.
Cpk: Process capability index. It calculates the capability of the process and it accounts for
mean shifts.
Critical Event: An event on the Critical Path which has zero slack and which will delay the entire
project if it has any delays.
Critical Path: A path in the network diagram that includes all critical activities. The length of this
path is the length of the project. It is the longest path from start to end of the network diagram.
Critical Path Method (CPM): See Activity Network Diagram.
Critical To Cost (CTC): Any metric we feel we need to measure and control to ensure low levels
of operational costs.
Critical To Quality (CTQ): Any metric we feel we need to measure and control to ensure high
level of quality.

338

Critical To Schedule (CTS): Any metric we feel we need to measure and control to ensure we
meet deadlines or delivery times.
Cross Training: Training employees on various skills including skills they do not currently utilize.
Cycle Time (CT): The time from customer order until product delivery. Sometimes it is
calculated as the time needed to produce a product or service.
Dashboard: An actual board or an online program that lists the major KPIs of a certain
department and how are we performing on these KPIs. Dashboards are used as a tool for
continuous improvements.
Data Autocorrelation: A situation seen in control charts for individual data where each point is
correlated with (affected by) the point or points that precede it.
Data Mining: Database that includes large number of measurements stored in a manner that
can be analyzed.
Defect Per Million Opportunity (DPMO): It represents how much in a million will we have
defects.
Defect Rate: The percentage of products that does not meet specifications. We also call it scrap
rate or error rate.
Deliverables: Benefits of the project listed in the charter.
Design Failure Mode and Effects Analysis (DFMEA): An FMEA that focuses on failures related
to the design only.
Design for Six Sigma (DFSS): See DMADV.
Design Parameters (DP): Parameters in the design used to satisfy the functional requirement of
the design.
Desirability Function: A value calculated to show how desirable a design can be, the higher the
value the more desirable the design is and the closer we are to the target value of the response.
Destructive Feedback: Feedback that aims at humiliating people rather than motivating them
to improve their performance.
DMADV: Design For Six Sigma (DFSS) phases; Define, Measure, Analyze, Design and Verify.
DMAIC: Six Sigma Phases; Define, Measure, Analyze, Improve and Control.
DOE: Design Of Experiment.
DPU: Defect Per Unit.

339

EBIT: Earnings Before Interest and Tax. Same as gross profits.


Empowerment: Allowing employees to have more authority and more responsibilities after
training them.
Engineering Process Controls (EPC): Programmable logic controllers in the process.
Enumerative Statistics: Describing data with more than one statistic, for example, average prior
defect waste was 3.4% with standard deviation of 0.2%.
Error Proofing: Anything used to prevent a mistake or to make an alarm when a mistake
happens, also known as, Poka-Yoke and Mistake Proofing.
Error Rate: See Defect Rate.
European Foundation for Quality Management (EFQM): A model used to achieve excellence
status.
Evolutionary Process (EVOP): It means making small changes in the process that guarantees
small risk and resistance from team members. In DOE, we use it to change the factor levels by
small amounts to perform optimization of the response.
External Benchmarking: Benchmarking another department or unit outside our own
organization that does similar work.
External Customer: A person outside the organization who buys our product or service.
External Failure Costs: Costs related to products failing to meet specifications. These products
are caught by the customer.
External Setup: Setup steps done while the process is operating.
Extrapolation: The process of estimating, beyond the original observation interval, the value of
a variable on the basis of its relationship with another variable.
Factor: An input factor in a designed experiment.
Factor Level: A value of the factor.
Failure Costs: Cost related to the failure of a product to meet specifications. It is divided into
internal failure and external failure costs.
Failure Mode and Effects Analysis (FMEA): A tool used to analyze and prioritize all failures that
may occur and shows our plan to tackle them.
False Alarm: A point in control charts seems out of control while the process is really in control.

340

Fishbone Diagram: See C&E diagram.


Fixed Cost: Operational cost that does not vary with the quantity produced.
Flowchart: See Process Map.
Focus Groups: A study that includes a group of customers and which determines what
customers like and dislike about our product and service.
Forming: The first phase in team development, in which team members do not really know
their roles or why they were collectively selected.
Fractional Factorial Design: A designed experiment where each factor level is experimented
with some of the levels of all other factors.
Full Factorial Design: A designed experiment where each factor level is experimented with all
factor levels of all other factors.
Functional Requirements (FR): A set of requirements in the design used to satisfy customer
requirements.
Future Value (FV): Future value of the project.
Gantt Chart: A chart used to list all activities of the project with its timeline and dependencies.
Gauge: Any measuring tool.
Gauge R&R: Gauge Repeatability and Reproducibility studies.
Gemba: Japanese word that means workplace.
Ground Rules: Rules set by team leader in the first team meeting in order to show how the
team will make decisions and how they will resolve conflicts and interact with each other.
Happenstance Data: Misleading data. Data that includes more than one source of variability.
Hidden Factory: All process steps that are not documented and are used to fix failures or
rework parts.
Histogram: A plot of data that reveals their distribution. Histograms divide dates into intervals,
where each interval has a unique bar.
House Of Quality (HOQ): A method used to link customer requirements with engineering
features in the product.
Hypothesis Testing: Statistical testing that uses sample data to prove the value of the
population.

341

In Control: When a process is in control it means that it is predictable and stable.


Individual Data Control Charts: Charts for individual readings. It includes: Individual X and
Moving Range, Individual X and Moving Average, EWMA and CUSUM charts.
Interaction: The case where some factors not only affects the response but also affect each
other.
Interaction Plot: A plot that shows the effect of the interactions on the response in a designed
experiment.
Internal Benchmarking: Benchmarking another department or unit inside our own organization
that does similar work.
Internal Customer: Anyone inside the organization who is affected by our work.
Internal Failure Costs: Costs related to products failing to meet specifications. These products
are caught before reaching the customer.
Internal Rate of Return (IRR): The rate or percentage at which the project returns investment
every year. It is calculated by setting PV to Zero and calculating the interest rate of the project.
Internal Setup: Setup steps which are done while the process is inactive.
Interpolation: The process that produces estimates between known observations, where the
value of a variable is estimated on the basis of its relationship with another variable.
Interval Estimate: Any estimate of data that takes an interval of values, for example, the mean
of the population is between 50 and 75.
Inventory: Stored product. It can be finished, semi-finished products or raw material. In TOC,
inventory is defined as the amount of money invested in making a product that cannot be sold
yet.
Inventory Turns: A measure of how often we fill and empty our stores. The higher the value of
inventory turns the better.
Ishikawa Diagram: See C&E Diagram.
Just In Time (JIT): A concept of buying raw material and making products just when it is needed.
Kaizen: A Japanese word which means Continuous Improvement.
Kanban: A card used in production to replenish the raw material needed at various processes.
Kano Model: A model that classifies all features in the product or service into satisfiers,
dissatisfies and exciters.

342

Key Performance Indicator (KPI): It is a measurement with a target, where we select few
metrics to be measured and the measurement would indicate how good or bad is the
performance.
Key Process Input Variable (KPIV): See Little Y.
Key Process Output Variable (KPOV): See Big Y.
Kick-Off Meeting: The first meeting that launches the Six Sigma project.
Kolmogorov-Smirnov Test: A test used to assess normality. The higher the value the better fit
we have. A value of less than 0.05 represents poor fit.
Lead Time: Time needed to perform the entire steps of the process. Sometimes called Cycle
Time.
Lean Management: A method used to eliminate waste and increase efficiency of the workplace
Gemba.
Lean Manufacturing: See Lean Management.
Lessons Learned: A collection of mistakes we made and successes we had while working on the
project. This serves as a tool for future projects.
Linearity: A study that aims at finding if the measuring tool has variability in the measurement
over its entire scale by finding out if the accuracy of small measurements is the same as that of
large measurements.
Little Y: Minor metric of the project.
Long Term Sigma Level: Represents data after the mean shift. It equals the short term Sigma
level + 1.5
Main Effect Plot: A plot that shows the effect of the main factors on the response in a designed
experiment.
Malcolm Baldrige National Quality Award (MBNQA): An award of excellence used in the
United States.
Matrix Diagram: See PM.
Measurement Feedback: Measurement that takes into consideration the feedback of operators
in the area where we have measurements.
Measurement Systems Analysis (MSA): See Gauge R&R.

343

Metric: See CTQ and KPI. Something we measure to gain information about the performance
level.
Milestones: Major point in time in a project, where each milestone represents the end of a
phase in a project. Typically a review with management takes place at the milestone.
Mistake Proofing: See Error Proofing.
Monte Carlo Simulation: A probabilistic simulation method which produces the distribution of
the response by using thousands of values from the distributions of the input factors.
Multiple Regression: A regression where Y is a function of more than one factor X.
Multi-Vari Plots: A chart that shows three types of variability in a process; variability within a
batch, variability from batch to batch and variability over time.
Net Present Value (NPV): See PV.
Noise Factor: In designed experiment, this is an uncontrollable factor.
Nominal Group Technique (NGT): A brainstorming session used to get team members
agreement on a solution to a problem via voting. Votes are collected in a manner that takes out
the bias of every individual to their own ideas.
Non-Value Added (NVA): Anything we do in the process that does not change form or function
of the product like storing or moving.
Normalized Throughput Yield: A value which represents an average yield of steps that are in
series. It is calculated as the nth root of RTY, where n is the number of steps.
Norming: The third phase of team development. In this phase, team members start working
together and rely on each other.
Null Hypothesis: The original hypothesis in a hypothesis test.
Objective Statement: A statement in the charter that shows the main goal of the project in a
specific manner.
One Piece Flow: Production of one piece at a time. Not batch production.
Operational Cost: Cost of running operations. In TOC, it is defined as the amount of money
used to transform Inventory into Throughput.
Optimization: Fine tuning parameters of the process to achieve best performance.

344

Outlier: A data point that does not belong to the remaining data. It should not be included in
any analysis of data, but it cannot be deleted without a thorough investigation of the reasons
behind it.
Pareto Chart: A chart used to prioritize opportunities.
Pareto Priority Index (PPI): A value calculated for each option to give this option a certain level
of priority.
Part Per Million (PPM): This value equals DPMO.
Performance Drivers: Key metrics in the process that controls the performance.
Performance Gap: Gap between the baseline measurement and the desired level of
performance.
Performing: The fourth phase in team development in which team members work together in
complete harmony and need very little guidance from their team leader.
Point Estimate: Any estimate of data that takes an individual number, for example, the mean
equals to 50.
Poka-Yoke: Japanese word which means Error Proofing.
Population: The entire universe or the entire community of data we are interested in.
Present Value (PV): Present value of the project.
Prevention Costs: Costs of all activities that aim at preventing failures.
Prioritization Matrix (PM): A matrix used to prioritize opportunities to work on. It is used as a
selection tool in decision making.
Probability Plot: A plot that tests if the data follows a certain distribution or not. Typical use is
for data that follows normal distribution.
Problem Statement: A statement in the charter that defines the problem in a specific manner.
Process: Few actions that transform inputs into outputs.
Process Cycle Efficiency: A Lean concept. It is a value calculated by dividing the value added
time over the lead time of the process.
Process Decision Program Chart (PDPC): A tool used to establish awareness of major risks in
any design. It includes three levels; areas of possible risks, risks, and our plan to face such risks.
Process Drivers: See Performance Drivers.

345

Process Failure Mode and Effects Analysis (PFMEA): An FMEA that focuses on failures due to
the process only.
Process Map: A method to describe the process with symbols. Sometimes it is called a Flow
Chart.
Program Evaluation and Review Technique (PERT): It is same as CPM except that the times
listed for each activity is not deterministic. It has optimistic, most likely and pessimistic values.
P-Value: A value showing how significant the test is. If the p-value is less than Alpha then the
test is significant (reject null hypothesis).
Quality Function Deployment (QFD): See House Of Quality.
Radar Chart: A chart that shows the performance of many metrics at the same time. It is also
called as Spider Chart.
Rationale Sampling: A sampling scheme that makes sure all samples or subgroups are a good
representation of the population.
Rationale Subgrouping: See Rationale Sampling.
Reaction Plan: Part of the Control Plan. It tells the auditor or the operator how to react when a
measurement is out of specification.
Regression: A mathematical method that establishes relationship between independent factor
(X) and dependent factor (Y).
Repeatability: A study that aims at finding the variability in the measurement due to the
measurement tool only.
Reproducibility: A study that aims at finding the variability in the measurement due to the
measuring person only.
Response Surface Analysis (RSA): A method that shows graphically the relationship between
factors and their effects on the response. It can be produced by DOE to determine optimal
settings for the factors.
Return On Investment (ROI): A measure of the extent of benefits the project acquire compared
to the investment in the project.
Ridge Analysis: Steepest ascent or steepest descent methods which are used along with RSA to
determine the optimal settings for factors in order to achieve optimal response.

346

Robust Design: A Taguchi methodology of design that guarantee little sensitivity to


uncontrollable factors by smart manipulation of controllable factors. It includes: System Design,
Parameter Design and Tolerance Design.
Rolled Throughput Yield (RTY): Calculated by multiplying the throughput of all steps in series.
Run Chart: A control chart without control limits.
Run Tests: A list of 8 tests used to indicate if the data is in control or out of control.
Sample: A group of readings selected from the population.
Saturated Designs: A highly fractional factorial designs where the number of runs equals the
number of factors +1.
Scatter Diagram: A diagram that shows in scatter points the relationship between two factors;
one factor (the cause) is plotted on the x-axis and the other factor (the effect) is plotted on the
y-axis.
Scope: Limitation or boundaries of the project.
Scope Creep: It is the case when the scope of the project becomes larger in a very slow manner.
At the end, the scope becomes unmanageable.
Scrap Rate: See Defect Rate.
Screening Experiments: Fractional factorial designed experiments used to screen factors or
select few significant factors to do more experimentation on them.
Setup Time: Time needed to prepare a production line or a machine for the next product. It is
non-value added time and it includes: Preparation, Replacement, Location and Adjustment.
Shareholders: People who own stocks in the organization.
Short Run SPC: Control charts for data that is incomplete or very short. This is a very unpopular
set of charts.
Sigma (): Greek letter used to indicate standard deviation.
Sigma Level: A number provides a statistical estimate of the Defect (Error) Rate. The higher the
Sigma level the lower the defect rate.
Simulation: A process of representing the process in a live manner. It helps us to see how the
process is working and how any changes we may make to the process will affect that process.
SIPOC (Suppliers-Inputs-Process-Outputs-Customers): A method used to describe the process
with details. It includes: all Suppliers, Inputs, Process steps, Outputs and Customers.

347

Situational Leadership: A leadership model used to alter leadership style based on the situation
and the people working in the team.
Six Sigma: A management methodology used to minimize variability, reduce waste and
enhance performance.
Six Sigma Black Belt (SSBB): Six Sigma team leader and a person who leads Six Sigma projects.
Six Sigma Deployment: Steps needed to spread the acceptance and usage of Six Sigma in the
organization.
Six Sigma Green Belt (SSGB): A team member who knows the body of knowledge of Six Sigma
and can run a Six Sigma project.
Six Sigma Master Black Belt (SSMBB): Six Sigma mentor.
Slack: The amount of time we can waste in an activity without delaying the project. It is
calculated as the difference between the earliest and the latest start times or the difference
between the earliest and the latest finish times.
Special Cause: Variability in the system caused by abnormality. This is not inherent variability. A
process with special cause is considered out of control. Special cause is sometimes called an
Assignable Cause.
Specification Limits: Limits specified by engineering, regulations or the customer. Anything
outside these limits is considered scrap. Sometimes called as the Voice Of The Customer.
Sponsor: Middle to upper management person who has best interest in seeing the project
succeed. They typically fund the project and help overcoming all obstacles.
Stability: A process is stable and predictable if it is in control. Also Stability can be a study that
aims at ensuring that the measuring device does not become inaccurate over time.
Stakeholders: Anyone who is affected by or affects the process.
Standard Operating Procedure (SOP): See Standardized Process.
Standardized Process: A process that is documented and performed the same way by everyone
in the organization.
Statistical Process Control (SPC): Typically it means creating control charts for the process.
Storming: The second phase in team development in which team members try to show their
individual strengths. In this phase, discussions tend to be stormy and loud.

348

Strategy: A plan with long term effects. It includes the major goals of an organization in the
next few years.
Subgroup: Sample.
Swim-Lane Process Map: A process map that shows each step in the process performed in a
specific department. This map will have process steps and departments on it.
TAKT Time: The time that is available to perform the work. For example, if we have 5 hours and
we have to finish 10 parts, the TAKT time is 0.5 hour per part. We have to ensure that cycle
time is equal to or less than TAKT time.
Tampering: A term that describes the improper adjustments of the process.
Throughput: See Yield. In TOC, throughput is defined as the rate at which the system generates
money by selling produced products or services.
Time Value of Money: It is the fact that the buying power of money decreases with time or that
you need more money in the future to buy the same things now.
TOC: Theory Of Constraints.
Total Productive Maintenance (TPM): Maintenance performed in a manner that increases
productivity.
Toyota Production System (TPS): See Lean Management.
TQM: Total Quality Management.
Tree Diagram: A diagram that shows relationships between the main issue and its main
components. It can be used for Work Breakdown Structure.
Trivial Many: The many factors that are not very important and do not affect performance in a
great manner.
Type I Waste: Non-Value added activity that is deemed necessary.
Type II Waste: Non-Value added activity that is deemed none necessary.
Value: What is the customer willing to pay for.
Value added (VA): Anything we do in the process that changes form or function of the product,
or anything we do to make the product closer to be acceptable by the customer. Some people
define it as anything the customer is willing to pay for.
Value Stream: It is a representation of how we add value to the product in each step of the
process.

349

Value Stream Map (VSM): A process map drawn from the point of view of the product. It
shows the times we added value and the times of non-value added steps.
Variable Control Charts: Control charts used for variable data. These charts include: Xbar-R and
Xbar-S charts.
Variable Cost: Operational cost that increases when produced quantity increases.
Variables: Continuous metrics such as time, weight, temperature, etc. These variables can have
decimal values or fractions.
Velocity: A Lean concept concerned with the speed of the flow of production. It may represent
how quick we react to orders.
Visibility: A Lean concept. It means Transparency or Visual Control. It is used to increase
awareness of any problem that occurs in the workplace.
Visual Factory: A set of charts, colors, signs and other visual tools used to reveal performance in
the workplace.
Vital Few: The few parameters or issues that affect performance.
Voice Of The Customer (VOC): The representation of the expressed and non-expressed needs,
wants, and desires of the recipient of a process output, a product, or a service; usually
expressed as specifications, requirements, or expectations. It can be collected by surveys.
Voice Of The Process (VOP): The performance and capability of a process to achieve both
business and customer needs; usually expressed in some form of an efficiency and/or
effectiveness metric. Another term to describe the control limits.
Work Breakdown Structure (WBS): A method used to break big projects into small manageable
projects.
Work In Process (WIP): Inventory of semi-finished products.
Work Instructions: A verbal description of a detailed step or a minor process.
Yield: Percentage of good product coming out of the process. Sometime it is called as
Throughput.
Z: Standard normal variable. Calculated as (x-mean)/sigma. It has a mean of zero and a standard
deviation of 1.

350

You might also like