Glosario de Términos

SBTI Glossary of Terms


5S
Technique for improving workplace organization: Sort, Store, Shine, Standardize and Sustain


Alpha (a)
The maximum risk or probability of making a Type I Error. This probability is always greater than zero and is usually established at 5%. The researcher makes the decisions to the greatest level of risk that is acceptable for a rejection of Ho.


Beta (b)
The risk or probability of making a Type II Error, or overlooking an effective treatment or solution to the problem.


Population mean (m)
Symbol used to describe the average for an entire population


Population standard deviation (s)
Symbol used for standard deviation of entire population. Measure of the spread of the process (width of the distribution).


% R & R
Gage % Repeatability and Reproducibility: Addresses what percent of the Total Variation is taken up by measurement error.


Affinity Diagram
A management tool that assists with general planning. It makes disparate language information understandable by placing it on cards and grouping the cards together in a creative manner. “Header” cards are used to summarize each group.


ANOVA
Analysis of Variance: Hypothesis test used to analyze the difference in means between two or more samples.


AP
Accounts Payable: Business term – department or account that pays bills.


AR
Accounts Receivable: Business term – department or account that collects payments


Assessment
A systematic process of collecting and analyzing data to determine the current, historical or projected status of an organization.


Assignable Cause
The name for the source of variation in a process that is not due to chance and therefore can be identified and eliminated.


Audit
“The inspection and examination of a process or quality system to ensure compliance to requirements. Audit can apply to an entire organization or be specific to a function or production step.” (Dr. Joseph M. Juran)


Baseline Measurement
A beginning point based on an evaluation of the output over a period of time to determine how the process performs prior to any improvement effort.


Benchmarking
The process of finding and adapting best practices to improve organizational performance.


Best Practice
A superior method or innovative practice that contributes to improved performance.


BB or Black Belt
A process improvement project team leader who is trained and certified in the Six Sigma breakthrough methodology and tools and who is responsible for project execution.


Boxplot
“A graphic summary of a distribution where the overall dispersion and the central tendency or mean of the data are highlighted.” (Arturo Onnias)


Brainstorming
An idea-generating technique that uses group interaction to generate many ideas in a short time period. Ideas are solicited in a non-judgmental, unrestricted manner from all members of a group.


BVA
Business Value Added: Term used in Value Analysis of a process. Designates a process step that the business requires to stay in business.


CAGR

Compounded Annual Growth Rate: Business Term – The year over year growth rate applied to an investment or other part of a company’s activities over a multiple-year period. The formula for calculating CAGR is (Current Value/Base Value)^(1/# of years) – 1.


Capability
The total range of inherent variation in a stable process. It is determined using data from control charts.


Capability index
A calculated value used to compare process variation to a specification. Examples are Cp, Cpk. Can also be used to compare processes to each other.


Cause
An established reason for the existence of a defect or a problem.


C/E or C&E
Cause and Effect Matrix: Prioritization matrix used to assist in focusing in on the root causes of process problems.


Central Tendency
The tendency of data gathered from a process to cluster toward a middle value, somewhere between the high and low values of measurement.


Champion
An upper level business leader who facilitates the leadership, implementation, and deployment of the process quality initiative and breakthrough philosophies.


Charter
A written commitment by management stating the scope of authority for an improvement group. Resources, including time and money, are specifically addressed.


Check sheet
A form for recording data on which the number of occurrences of an event can be recorded as ticks or checks.


Code of Conduct
Expectations of behavior mutually agreed upon by a team. (Also called “norms” or “rules of engagement.”)


Common Cause
A source of process variation that is inherent to the process and is common to all the data.


CI (Confidence Interval)
An interval that can be said, with X% certainty, to contain the true process mean or standard deviation. “We are 95% confident that the true process mean is in this interval.”


Conformance
The state of meeting and/or exceeding customer requirements and expectations.


Consensus
A state where everyone in the group supports an action or decision, even if some of them don’t fully agree with it.


Consensus Decision
A decision made after all aspects of an issue, both positive and negative, have been reviewed or discussed to the extent that everyone openly understands, supports and participates in the decision.


Control
Keeping a process within boundaries; minimizing the variation of a process.


Control Chart
A problem solving statistical tool that indicates whether the system is in or out of control, as determined by computed control limits.


Control Limits
“Defines natural boundaries of a process within specified confidence levels” [upper control limit (UCL), and lower control limit (LCL) defined on a control chart]. (J. R. Russell)


Cost-benefit Analysis
A way to compare the costs and benefits of plans. Can be used for comparing the financial outcomes of different actions and determining if a particular action makes sense financially.


COPQ (Cost of Poor Quality)
Cost associated with poor quality products or services. Examples: Product inspection, Sorting, Scrap, Rework, and Field Complaints.


Cp
Process Capability Index: A calculated value used to compare process variation to a specification. Can also be used to compare processes to each other.


Cpk
Process Capability Index – not centered: A calculated value used to compare process variation to a specification. Can also be used to compare processes to each other.


CV
Coefficient of Variation


Countermeasure
Action taken to counter the verified root cause of a problem.


Critical Characteristic
A characteristic dependent on the functioning of budget constraints, competitive edge and/or customer satisfaction of the product.


Critical Dependencies
The interrelationships existing within or among processes that are primary drivers of defects or errors in a product or service.


CPIV
Critical Process Input Variable: The vital few process input variables that have the greatest effect on the output variable(s) of interest. They are called “X’s”, normally 2 – 6 true critical variables.


Cross Functional
A term used to describe individuals from different organizational units or functions that are part of a team to solve problems, plan, and develop solutions affecting the organization as a system.


CPD
Customer Percent Defective: The percentage of products or services that are successfully completed on the first attempt without requiring remedial action or rework.


CVA
Customer Value Added: Term used in Value Analysis of a process. Designates a process step that the customer is willing to pay for.


CT
Cycle Time: The average time from a unit entering the process until it is completed as a finished good.


Cycle time
The actual production rate, i.e. the time for a product / transaction to be completed


CTQ
Critical to Quality: A requirement that a customer values is considered Critical to Quality. What the customer pays for.


Defect
Any instance or occurrence where the product or service fails to meet customer requirements


Defect Opportunity
A type of potential defect on a unit of throughput (output) that is important to the customer (i.e. Specific fields on a form that creates and opportunity for error that would be important to the customer).


Defective
Any unit with one or more defects. Also see Defect.


DMAIC
Define, Measure, Analyze, Improve, Control:5 steps during a Six Sigma project


DMADV or DMADVI
Define, Measure, Analyze, Design, Validate or Define, Measure, Analyze, Design, Verify, Implement. A new process design tool. Commonly used acronym for Design for Six Sigma methods.


DOTWIMP (Seven wastes)
Defects, Overproduction, Transportation, Waiting, Inventory, Motion, Processing


DPMO
Defects Per Million Opportunities: The number of defects in every million opportunities. By taking into account opportunities for defects, and not just defects, we can compare processes of differing complexity.


DPU
Defects Per Unit: The number of defects in a unit or product. This measure does not take into account the number of opportunities for defects, just the number of defects.


Demand Segmentation
Demand Segmentation tools allow you to understand the importance of volume and variability, and their impact on the department, systems, and cost


DOE
Design of Experiments: An efficient method of experimentation, which identifies, with minimum testing, factors (key process input variables) and their optimum settings that affect the mean and variation.


DSO
Days Sales Outstanding: Business term – Accounts receivable divided by sales for a given quarter, times 91. This number helps determine whether a technology company is attempting to disguise weakness in its sales.


Empowerment
Act of placing accountability, authority, and responsibility for processes and products at the lowest possible level. Whether or not a person is truly empowered depends on their acceptance of responsibility and accountability, their capabilities, and the seriousness of the consequences.


ENT
Entitlement: The best a process measure could be.


ERP
Enterprise Resource Planning: Business Term – information systems designed to bind more closely a variety of company functions including human resources, inventories and financials while simultaneously linking the company to customers and vendors.


External Failure
Nonconformance identified by external customers.


F
Function relating process inputs to process outputs: Y = F(x1, x2, x3, ……)


FMEA
Failure Modes and Effects Analysis: Method used in measure to understand risks of failure in a process.


Fire Fighting
“The activity of getting rid of sporadic quality troubles and restoring the status quo.” (Dr. Joseph M. Juran)


FPY
First Pass Yield: The percentage of products or services that are successfully completed on the first attempt without requiring remedial action or rework.


Five “whys”
A technique for discovering the root cause(s) of a problem and showing the relationship of causes by repeatedly asking the question “Why?”


Gage bias (Accuracy)
The difference between the true or reference value and the observed average of multiple measurements of the identical characteristic on the same part.


Gage repeatability
The variation in measurements obtained with one measurement instrument when used several times by one appraiser while measuring the identical characteristic on the same part.


Gage reproducibility
The variation in the average of the measurements made by different appraisers using the same measuring instrument when measuring the identical characteristic on the same part.


Gap Analysis
The comparison of a current condition to the desired state.


Goal
“A broad statement describing a desired future condition or achievement without being specific about how much and when.” (Government Performance and Results Act of 1993)


GB or Green Belt
A part-time process improvement project team leader who is trained and certified in the Six Sigma breakthrough methodology and tools and who is responsible for project execution. Typically works on smaller scoped projects than BB’s.


Ho
Null Hypothesis: A statement of no change or difference. This statement is assumed true until sufficient evidence is presented to reject it. “If p is low, Ho has to go”


Ha
Alternate Hypothesis: A statement of change or difference. This statement is considered true if Ho is rejected.


Hawthorne effect
Every change results (initially, at least) in increased productivity. Often occurs early in a project, where process participants realize the process is under study.


Histogram
A graphic way of summarizing data by plotting possible values on one axis and the observed frequencies for those values on the other axis. It helps one visualize the central tendency and dispersion of the data.


House of Quality
A product-planning matrix developed during quality function deployment that shows the relationship of customer requirements to the means of achieving these requirements. The matrix indicates the impact each of the means has on one another.


Implementation
A structured approach that addresses all aspects (who, what, when, where, why, and how) of incorporating improvements into the process or system.


Improvement
The organized creation of beneficial change; the attainment of unprecedented levels of performance. Levels of improvement range from incremental to major; e.g., “breakthrough” improvement.


I/O
Input Output: Type of process map that includes process steps and their inputs and outputs.


Inspection
Process of measuring, examining or testing a product service against some requirement to identify nonconformance before it reaches a customer.


Internal failures
“Product failures that occur before the product is delivered to external customers.” (Dr. Joseph M. Juran)


ISO
International Standards Organization: ISO9000 is an international standard for documentation of standardized processes.


Inventory Turns
Business term – The number of times the company cycles through or turns its inventory per year.


JIT
Just In Time: A concept where an item is delivered, just-in-time, where and when it is needed.


Kaizen
In the business world, The word Kaizen has been utilized by the Japanese to characterize a business strategy involves everyone in an organization working together to make improvements ‘without large capital investments’


Kanban
“A communications tool in the ‘just-in-time’ production and control system. A Kanban, or signboard, is attached to specific parts in a production line signifying the delivery of a given quantity. When all parts have been used, the same sign is returned to its origin where it becomes an order for more.” (Kaizen Institute)


KJ
Jiro Kawakita: Name of a noted Japanese anthropologist. Created method for summarizing and characterizing large quantities of anthropological data gathered during his expeditions.


KPIV
Key Process Input Variable: The vital few process input variables that have the greatest effect on the output variable(s) of interest. They are called “X’s”, (normally 2 – 6)


KPOV
Key Process Output Variable: The output variable(s) of interest. They are called the “Y’s”, (usually 1). May be process performance measures or product characteristics.


Lean
Lean is the elimination of anything not absolutely required to deliver a quality product or service, on time, to our customers, focuses on improving process flow, is a means of driving process standardization and drives work at the pull of the customer.


LCL
Lower Control Limit: Demonstrates lower limit of process expected variability. Points outside of control limit should be investigated to determine assignable cause. Formula is (process sample mean – 3 x sample standard deviation). 99% of the process variation falls within the lower and upper control limits.


Little’s Law
CT = CT * TH


LSL
Lower Specification Limit: Lowest acceptable value or measurement customer is willing to accept. Lower limit of customer requirement.


MBB or Master Black Belt
A person who is “expert” in Six Sigma breakthrough techniques and project implementation. MBBs play a key role in training and coaching Black Belts.


Measurement System
The complete process used to obtain measurements. It consists of the collection of operations, procedures, gages and other equipment, software, and personnel used to assign a number or value to the characteristic being measured.


MSA
Measurement System Analysis: Method to understand the capability of the measurement system.


Metric
A measurement, taken over a period of time that communicates vital information about a process or activity. A metric should drive appropriate leadership or management action. Physically, a metric package consists of an operational definition, measurement over time and presentation.


MTB
Minitab: A statistical software program used to assist in data analysis.


Multi-Vari
Type of multiple variable process study: Assists in identifying the primary X’s that impact your Y’s. A graphic way of depicting variation within a single entity, machine or process, or between entities (produced at the same time or over time). Allows the study of process inputs and outputs in a passive mode (natural day-to-day process).


Multi-vari Chart
A graphic way of depicting variation within a single part, machine or process, or between parts (produced at the same time or over time). Allows the study of process inputs and outputs in a passive mode (natural day-to-day process).


Multivoting
A structured voting process used to reduce a large number of items, usually ideas, to a more manageable number for further processing or analysis.


NGT
Nominal Group Technique: A tool for generating a list of ideas or opportunities (allows individuals to express their opinion). Voting and ranking determine priorities.


NVA
Non-Value Added: Term used in Value Analysis of a process. Designates a process step that is not required by the business or the customer.


Normal distribution
A continuous, symmetrical, bell shaped frequency distribution for variable data.


OEE
Overall Equipment Effectiveness: Methodology for assessing process capacity and utilization of equipment. Takes into account availability, efficiency and quality


Out of control
Describes a process that has variations that fluctuate outside the computed control limits. This condition normally indicates the process is not operating as desired or that external factors have been introduced. A process “out of control” is not stable and therefore is not predictable.


p-value (p)
Test statistic used in Hypothesis testing. “If p is low, Ho has to go.”


P/T
Precision to customer tolerance ratio: Addresses what percent of the tolerance is taken up by measurement error. Includes both repeatability and reproducibility.


Paradigm
A set of rules and regulations that defines boundaries and tells what to do to be successful within these boundaries.


Pareto Chart
A statistical method of measurement to identify the most important problems through different measurement scales; e.g., frequency, cost, etc. It directs attention and efforts to the most significant problems.


PPM
Parts Per Million: Same as DPMO.


PDSA
Plan-Do-Study-Act: a structured, cyclical methodology for developing and implementing actions of any type: Plan for the action by collecting and analyzing data and developing alternatives; Do, implement the selected alternative (preferably on a small scale); Study, evaluate results and compare expected values; Act, standardize action and/or start over. (Shewhart Cycle, Deming Wheel)


Poke Yoke
Literally translated: Idiot proof. A mistake proofing device or technique to eliminate the possibility of a mistake being created. Prevention method, rather than reaction.


Pull Systems
Pull in simplest terms means no one from upstream should produce a good or provide any service until the downstream customer asks for it – and then make it very quickly and correctly. Pull systems are processes that are initiated at the pull of the customer, rather than the push of a schedule.


Prevention
A quality assurance strategy that attempts to identify and correct unacceptable service or product characteristics during the design, development or production phases.


Probability
The chance of an event happening or a condition occurring in a random trial.


Process
The combination of people, equipment, materials, methods, and environment that produce output – a given product or service. It is the particular way of doing something.


Process map
A step-by-step pictorial sequence of a process showing process inputs, process outputs, cycle time rework operations, and inspection points.


POV
Process Output Variable: The outputs of interest, sometimes referred to as the customer requirements. They are called the “Y’s”, (usually 1). May be process performance measures or product characteristics.


Process Spread
The extent to which the distribution of individual values of the process characteristic (input or output variable) vary; often shown as the process average plus and minus some number of standard deviations. Other related measures of spread include the range, and variance.


QA
Quality Assurance: Used to describe either a company’s quality methods or quality department. Assurance is typically more proactive.


Quality Audit
“A systematic, independent examination and review to determine whether quality activities and related results comply with planned arrangements and whether the arrangements are implemented effectively and are suitable to achieve the objectives.” (ASQC Quality Progress, Feb 92)


QC
Quality Control: Used to describe either a company’s quality methods or quality department. Control is typically more reactive.


QFD
Quality Function Deployment: A system that translates customer requirements (voice of the customer) into technical requirements for each stage of development and/or production.


Range (R)
The difference between the maximum and minimum data points in a sample.


R & R
Repeatability and Reproducibility. Repeatability: The variation in measurements obtained with one measurement instrument when used several times by one appraiser while measuring the identical characteristic on the same part. Reproducibility: The variation in the average of the measurements made by different appraisers using the same measuring instrument when measuring the identical characteristic on the same part.


RSM
Response Surface Methods: Method for using DOE to optimize process parameter settings. Allows for fine process adjustment for ultimate optimization.


Rate of Bottleneck (rb)
Process bottleneck rate or rate of the workstation having the highest long-term utilization in that process.


RPN
Risk Priority Number: Metric used in FMEA to quantify risk. Calculated by multiplying the Severity of the Effect, the probability of Occurrence of the Failure and the ability to Detect the Failure. RPN = S x O x D


RTY
Rolled Throughput Yield: The multiplication of all the individual first pass yields of each step of the entire process.


Sample Standard Deviation (s)
A measure of the average variation of a sample (width of the distribution).


SBTI
Sigma Breakthrough Technologies, Inc.


SMED
Single Minute Exchange of Die: Quick Changeover – technique for reducing setup time for machines, even applicable in business processes.


SIPOC
Suppliers Inputs Process Outputs Customers Map: Single page process map that shows the scope of the process your project is examining.


SD
Standard Deviation: A measure of the spread of the process (width of the distribution).


SOP
Standard Operating Procedure: Standardized procedure that is documented and used by all process participants.


SPACER
Safety, Purpose, Agenda, Code of Conduct, Expectations and Roles. Meeting effectiveness technique. Every meeting should begin with review of safety procedures, meeting purpose, agenda, meeting code of conduct, meeting expectations and meeting roles.


Spec
Specification: The customer requirement for judging acceptability of a particular characteristic.


Standard deviation (s or s)
A measure of the spread of the process (width of the distribution).


Statistical control
The condition describing a process from which all special/assignable causes of variation have been eliminated and only common/random causes remain. Applies to both the mean (location) and standard deviation (spread).


SPC
Statistical Process Control: Method that uses control charting to manage a process as it occurs.


SKU
Stock Keeping Unit: Business term – a specific part number, or inventory number. A company that sells 1000 items has 1000 SKU’s.


Storyboard
Technique to graphically display the methodology used and progress made by a process action team; a board, specifically designated to display information


Takt time
The pace of the process required to meet customer requirements. (Average work time / Average Demand).


Tampering
The process of adjusting a stable process to try to compensate for a result that is undesirable or for a result that is extra good, the output that follows will be worse than if the tamperer had left the process alone.


TOC
Theory of Constraints: A management philosophy that focuses the organizations scarce resources on improving the performance of the true constraint, and therefore the bottom line of the organization. T, TH


Throughput (To )
The average output of a production process per unit of time. Average time it takes a single unit to traverse an empty production process


TPM
Total Productive Maintenance: Technique for continual maintenance of machines. Sets machines on schedules and allocates roles and responsibilities.


UCL
Upper Control Limit: Demonstrates upper limit of expected process variability. Points outside of control limit should be investigated to determine assignable cause. Formula is (process sample mean + 3 *s). 99% of the process variation falls within the lower and upper control limits.


USL
Upper Specification Limit: Highest acceptable value or measurement customer is willing to accept, upper limit of customer requirement.


Utilization (U)
Utilization of any workstation, capital, process or line is usually defined as percent of time running divided by available time to run.


VA
Value Added: Term used in Value Analysis of a process. Designates a process step that is deemed valuable either by the business or the customer.


VSM
Value Stream Map: Type of process map that shows product and information flow. Also shows process data.


Variation
Difference between individual measurements. Differences are attributed to common and/or special causes.


VOB
Voice of the Business


VOC
Voice of the Customer


WIP, Wo
Work In Process: The inventory between the start and end points of a production process or series of processes necessary to produce a finished good. WIP level for which the process achieves maximum throughput.


X
Process Input variable: In a Six Sigma project, we determine the inputs (X’s) that impact our process outputs (Y’s).


X-bar
Sample mean: Symbol used to describe the average of a population sample.


Y
Process Output variable: In a Six Sigma project, we determine the inputs (X’s) that impact our process outputs (Y’s).


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