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GLOSSARY OF TERMS LEAN SIX SIGMA APOLLO ... - Orthoworld

GLOSSARY OF TERMS LEAN SIX SIGMA APOLLO ... - Orthoworld

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<strong>LEAN</strong> <strong>SIX</strong> <strong>SIGMA</strong> <strong>GLOSSARY</strong> <strong>OF</strong> <strong>TERMS</strong>Quality – These are just two of the Lean Quality Process Metrics· Complete and accurate % ­ identifies how complete and accurate “thething” 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 theprocess map. (Success rate first time on a transaction)Kaizen – (KAIZEN). The Kaizen is an outcome of the examination of aninefficient process that has been flagged as an area of opportunity forimprovement. The Kaizen is notionally conducted within a three to four weekperiod. Kaizens are action oriented in nature and typically one to two businessday events. The end goal is aimed at validating, evaluating, improving, and thenmoving from the current state (AS IS) map of the process steps selected toimplementation of the new and improved future state (TO BE) map at completionof the event.ROI – Return on InvestmentSIPOC Diagram – High level diagramming to determine the boundaries (fenceposts) of the event. SIPOC stands for Supplier, Inputs, Process, Outputs, andCustomer.SMEs – Subject Matter ExpertsSpaghetti Chart – A map of the path taken by a specific product as it travelsdown the value stream in mass­production organization, so­called because theproduct’s route typically looks like a plate of spaghetti.Subject Matter Experts (SMEs) ­ Team Members – includes individuals doingthe work from the process areas being evaluated during the Kaizen. Doers ofthe process. Responsible for full time participation during the Kaizen, may beassigned 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 Kaizenevent, and is designated the POC and responsible for working with the Belts onall 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 endwithout any interruptions. Actual hands on time required to complete the step.Trigger – What initiates the start of the process? What input did the supplierprovide?www.apollosolutions.usApollo SolutionsDr. Tom DePaoliDrTomD@gmail.com6


<strong>LEAN</strong> <strong>SIX</strong> <strong>SIGMA</strong> <strong>GLOSSARY</strong> <strong>OF</strong> <strong>TERMS</strong>Value­added % = (Touch Time/Flow Time) X 100%Value Added (VA) – Any step or activity in a process is considered Value Addedif 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 aspecific product, from concept to launch, order to delivery, and raw materials intothe hands of the customer.Value Stream Champion or Champion (VSC) – Overall ownership of theprocess, attends the Kaizen and pre­kaizen meetings, manages participationdecisions, asks questions, and approves the Kaizen and results.Value Stream Mapping (VSM) – A VSM is a visual representation of majorprocess steps, information flow, and material flow from customer request tocustomer receipt of product or services. It contains relevant metrics at a roof­tomacro level perspective. As part of VSM, you must walk the process as if youare the “thing (product/service).”A VSM makes it easy to visualize the steps and waste in your processes. It is ablueprint for the prioritization of improvement opportunities and the creation of aRapid Improvement Plan (RIP). It helps focus on maximizing overall flow, ratherthan sub­optimizing specific functions/departments. It is easy to learn andrequires 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 ­ Work­In­Processwww.apollosolutions.usApollo SolutionsDr. Tom DePaoliDrTomD@gmail.com7


<strong>LEAN</strong> <strong>SIX</strong> <strong>SIGMA</strong> <strong>GLOSSARY</strong> <strong>OF</strong> <strong>TERMS</strong>More TermsAnalyzeDMAIC phase where process detail is scrutinized for improvement opportunities.Black BeltSix Sigma project team leaders, who become expert in the use of the Lean SixSigma methodologies and tools. A key responsibility of Black Belts is to sharetheir knowledge and to train others. Black Belts are normally full­time onbusiness improvement activities.BrainstormingA technique used by teams to generate ideas on a particular subject or to explorea particular problem. Each individual involved is asked to think creatively aboutthe issue, and write down as many possible ideas. Following this, each pointraised is then discussed in more detail.Business caseA structured proposal for business process improvement that functions as adecision package for enterprise leadership. A business case includes an analysisof business process needs or problems, proposed solution, assumptions andconstraints, alternatives, life cycle costs, benefits/cost analysis, and investmentrisk analysis.CharterA written commitment, between a six sigma team and the organization; itincludes the business case, problem and goal statements, constraints andassumptions, roles, preliminary plans, scope and the roles of participants in theproject etc. This document states the scope of authority for an improvementproject or team, and is approved by management. Periodic reviews with thesponsor ensure alignment with business strategies; review, revise, refineperiodically throughout the DMAIC process based on data.Company cultureA system of values, beliefs and behaviors inherent in a company. The companyculture has a strong effect on business performance, and so top managementneeds to define and create the correct culture in order to ensure optimumperformance.www.apollosolutions.usApollo SolutionsDr. Tom DePaoliDrTomD@gmail.com8


<strong>LEAN</strong> <strong>SIX</strong> <strong>SIGMA</strong> <strong>GLOSSARY</strong> <strong>OF</strong> <strong>TERMS</strong>ControlDMAIC phase C; once solutions have been implemented, ongoing measurestrack and verify the stability of the improvement and the predictability of theprocess. This stage often includes process management techniques andsystems including process ownership, cockpit charts and/or processmanagement charts, etc.CustomerThe person, place, or thing for which a particular process adds value (Individuals,teams, companies, groups, etc). Customers can be grouped as internalcustomers and External Customers.Cycle TimeCycle time is the total time from the beginning to the end of your process, asdefined by you and your customer.DataData are factual information used as a basis for reasoning, discussion, orcalculation; often this term refers to quantitative information. There are two basicclassifications of numerical data.1) Measured, variable, or continuous data.2) Attribute or counted dataDefectAny result that does not conform to the standard needed to satisfy the customer'srequirements. The propensity to generate defects increases, as processcapability is lost, which in turn increases process variation. The creation ofdefects results in extra cost, delay, inventory, debtors, loss of capacity, stressand frustration etc as well as damaging customer relationships.DefineThe first DMAIC phase which defines the problem/opportunity, process, andcustomer requirements. Because the DMAIC cycle is iterative, the processproblem, flow, and requirements should be verified and updated for clarity,throughout the other phases.DeploymentDispersion, dissemination, broadcasting or spreading of a communicationdownward and laterally throughout an organization. It also describes the puttinginto action of a strategy, improvement plan or process.www.apollosolutions.usApollo SolutionsDr. Tom DePaoliDrTomD@gmail.com9


<strong>LEAN</strong> <strong>SIX</strong> <strong>SIGMA</strong> <strong>GLOSSARY</strong> <strong>OF</strong> <strong>TERMS</strong>Deployment Champion (also known as Deployment Director)A senior level manager, normally reporting to an Executive Team, who isresponsible for the successful management of the deployment plan. CoordinatesLean 6 Sigma policy, planning and execution. Generally a command will have afull time Deployment Champion if they have 15 or more Black Belts assigned.DMAICDefine, Measure, Analyze, Improve and Control. The steps of a Lean 6 Sigmaproject. Define the real problem to be solved; collect data that defines theissues; analyze the data using statistical techniques; develop an improvementbased on the analysis; put the improvement in place and control it, so that itcontinues to provide benefit over time.First Time ThroughThe idea that quality is achieved at its lowest cost by producing your product orservice right the first time, without rework.Five Why’sA simple problem solving method of analyzing a problem or issue by asking“Why” five times. The root cause should become evident by continuing to askwhy a situation exists.Flow ChartA problem solving tool that illustrates a process. It can show the “as is” processor “should be” process for comparison and should make waste evident.Goal StatementA description of the intended target or desired results of Process Improvement orDesign/Redesign activities. It is usually included in a team charter and supportedwith actual numbers and details once data has been obtained.Green BeltThe team member who demonstrates an interest in, and aptitude, for the LeanSix Sigma methodologies and tools. They receive basic training in thetechniques, which they use either in support of a Black Belt project, or to run theirown projects typically in their own area of responsibility. Green Belts are normallypart time on Six Sigma project activities, although in most cases they use SixSigma methods as part of their normal jobs.www.apollosolutions.usApollo SolutionsDr. Tom DePaoliDrTomD@gmail.com10


<strong>LEAN</strong> <strong>SIX</strong> <strong>SIGMA</strong> <strong>GLOSSARY</strong> <strong>OF</strong> <strong>TERMS</strong>Hypothesis TestingThe application of statistical tests to a data sample, in order to determine whatcannot be concluded based on the data (the results of hypothesis testing areeither a rejection of the hypothesis or a failure to reject). Hypothesis testing canbe conducted with attribute and continuous data and on normal and non­normalsamples. The actual tests will be different based on the nature of the data.Hidden FactoryA 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 iscreated, in order to achieve a quality target. The goal of Lean 6 Sigma is toremove the requirement for rework and scrap, while increasing quality. Theresult 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 therequirement that all improvement projects meet the strategic needs of theorganization.ImproveDMAIC phase where solutions and ideas are creatively generated and decidedupon. Once a problem has been fully identified, measured, and analyzed,potential solutions can be determined to solve the problem in the problemstatement and support the goal statement.Just in TimeA lean concept that aims to deliver products and services to the customer only asthey are requested. It goes beyond the Pull Systems concept, in that itaddresses the timing of the process and process communications. It answersquestions such as: when must I start this process step in order to have a productready for the customer, when they ask for it?KaizenA term meaning Continuous Improvement. In Lean 6 Sigma terms, it refers to aproject 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 SigmaA method by which processes are improved for quality; cost; speed andaccuracy. It is the combination of Lean Methods and 6 Sigma.www.apollosolutions.usApollo SolutionsDr. Tom DePaoliDrTomD@gmail.com11


<strong>LEAN</strong> <strong>SIX</strong> <strong>SIGMA</strong> <strong>GLOSSARY</strong> <strong>OF</strong> <strong>TERMS</strong>Lead TimeThe amount of time, defined by the supplier, that is required to meet a customerrequest or demand. (Note, Lead Time is not the same as Cycle Time).Lean MethodsA set of tools designed to improve a process on a continuous basis. Lean isdesigned to remove waste from a process by identifying non­value added steps.Lean will improve process speed to conform to customer requirements. Withlean, we say that waste is the enemy. It was developed by Taichi Ohno atToyota Motor Co. from the 1950’s to the 1980’s.Lean Six Sigma: business improvement methodology that maximizesshareholder value by achieving the fastest rate of improvement in customersatisfaction, cost, quality, process speed, and invested capital.Master Black BeltMaster Black Belts are Six Sigma Quality experts that are responsible for thestrategic implementations within an organization. Master Black Belt mainresponsibilities include training and mentoring of Black Belts and Green Belts;helping to prioritize, select and charter high­impact projects; maintaining theintegrity of the Six Sigma measurements, improvements and tollgates; anddeveloping, maintaining and revising Six Sigma training materials.The Master Black Belt should be qualified to teach other Six Sigma facilitatorsthe methodologies, tools, and applications in all functions and levels of thecompany, and should be a resource for utilizing statistical process control(typically just outside the Black Belt's knowledge base) within processes.MeasureDMAIC 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 onResults Metrics.Metrics, ResultsThe subset of measures, the improvement of which are critical to the success ofthe organization. A change in Results Metrics, will directly and significantly affectcustomer or stakeholder satisfaction.www.apollosolutions.usApollo SolutionsDr. Tom DePaoliDrTomD@gmail.com12


<strong>LEAN</strong> <strong>SIX</strong> <strong>SIGMA</strong> <strong>GLOSSARY</strong> <strong>OF</strong> <strong>TERMS</strong>Non Value Added (NVA.)Any product, process, or service that does not add value to the customerOutputThe result of a process. The deliverables of the process; such as products,services, processes, plans, and resources.PolicyA direction plan for achieving an organization’s goals.Poke­YokeA term that means error­proof. Error­proofing is one of the holy grails of Lean 6Sigma projects. It means that because of the process improvement, it isimpossible for an error to occur. Examples are computer fields that automaticallyfill in, based on other information entered; or an email that is automatically sentwhen an event occurs.ProcessA 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 specificoutputs.Process MapType of flow chart that provides an Illustrated description of how things get done.It enables participants to visualize an entire process and identify areas ofstrength and weaknesses. It helps reduce cycle time and defects whilerecognizing the value of individual contributions.Process OwnerThe individual(s) responsible for process design and performance. The processowner is accountable for sustaining the gain and identifying future improvementopportunities on the process.www.apollosolutions.usApollo SolutionsDr. Tom DePaoliDrTomD@gmail.com13


<strong>LEAN</strong> <strong>SIX</strong> <strong>SIGMA</strong> <strong>GLOSSARY</strong> <strong>OF</strong> <strong>TERMS</strong>Project ScopingThe general term used for the process of developing project ideas. A wellscoped 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 theprocess· Will result in a 50% process improvement or $250,000 savingsProject Sponsor (also known as Project Champion)Senior/middle level managers who are responsible for the selection and supportof Black & Green Belts, and with the selection and management of Six Sigmaimprovement projects.Project TeamA team managing the work and activities of a project. The work typically involvesbalancing competing demands for project scope, time, cost, risk and quality,satisfying stakeholders with differing needs and expectations and meetingidentified requirements.Pull SystemsA process that only responds to customer demand. The idea being, that workdone that is not in response to customer demand is wasted effort.Root CauseAn identified reason for the presence of a defect or problem. The most basicreason, which if eliminated, would prevent recurrence. The source or origin of anevent.SampleA Sample is a portion of the whole collection of items (population).Six SigmaThe term used to describe a system of process improvement. The goal of 6Sigma is to identify customer requirements; reduce variation of a process that istargeted at that requirement; and center the process results on the customertarget. In 6 Sigma, we say variation is the enemy. It was invented by MikelHarry in the early 1980’s at Motorola.www.apollosolutions.usApollo SolutionsDr. Tom DePaoliDrTomD@gmail.com14


<strong>LEAN</strong> <strong>SIX</strong> <strong>SIGMA</strong> <strong>GLOSSARY</strong> <strong>OF</strong> <strong>TERMS</strong>StakeholderPeople who will be affected by the project or can influence it but who are notdirectly involved with doing the project work. Examples are Managers affected bythe project, Process Owners, People who work with the process under study,Internal departments that support the process, customers, suppliers, andfinancial department.Takt TimeThe pace of customer demand. If a customer demands 8 products per 8 hourday, then the takt time is one hour. You must have the capacity to produce 1product every hour, in order to meet customer demand.Tollgate Reviewcomponent of DMAIC that helps to ensure that the project requirements of aphase are met before starting the next phase At the end of each phase the Blackbelt and team members meet to review that the requirements of the DMAICphase have been completed. Excellent communication tool for keeping the teamon the same page and involved in the process.Upper and Lower Statistical LimitsThese are the limits that define quality. They are set by the customer. If acustomer demands that deliveries be made within 2­4 days, then those are yourLSL and USL. Any delivery that falls outside those limits are defects.Value AddedActivities or work essential to ensure a product or service meets the needs of thecustomer.Value Stream MappingA method of visualizing a process, so that improvements can be made to it.Includes process steps, methods for communicating requirements to eachprocess step and data that describes each process step. VSM is an importantstarting point for most DMAIC projects. There are three processes associatedwith VSM: the current state (what you think the process is); the current state(what the process really is) and the future state.Visual FactoryAll lean improvement rests on the idea that everything should be visible, so thatif there is a problem someone will notice and take action. The visual factory has6 levels: Share information; Share standards at the site; Build standards into theworkplace; Warn about abnormalities; Stop abnormalities; Prevent abnormalities.www.apollosolutions.usApollo SolutionsDr. Tom DePaoliDrTomD@gmail.com15

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