Six Sigma - Quick Guide (2023)

Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services.

Characteristics of Six Sigma

• The goal of Six Sigma is to eliminate waste and inefficiency, thereby increasing customer satisfaction by delivering what the customer expects.

• Six Sigma follows a structured methodology and has defined roles for the participants.

• Six Sigma is a data-driven methodology and requires accurate data collection for the processes to be analyzed.

• Six Sigma is about including the results in the financial statements.

• Six Sigma is a structured, business-oriented, multidimensional approach to:

  • improve processes
  • relegation error
  • Reduced process variability
  • reduce costs
  • Increased customer satisfaction
  • higher earnings

The wordSigmais a statistical term that measures how far a given process is from perfection.

The core idea of ​​Six Sigma: If you can measure how many "errors" you have in a process, you can systematically find out how to eliminate them and get as close as possible to "zero errors" and specifically means an error rate of 3.4 Parts per million or 99.9997% perfect.

Key concepts of Six Sigma

At its core, Six Sigma revolves around a few key concepts.

• quality critic− Most important characteristics for the customer.

• Lack− Not delivering what the customer wants.

• workability− What your process can offer.

• Variation− What the client sees and feels.

• stable operation− Ensure consistent and predictable processes to improve what the customer sees and feels.

• Design for Six Sigma− Design to meet customer requirements and process capability.

Our customers feel the variation, not the average. So Six Sigma focuses first on reducing process variation and then on improving process capability.

Myths about Six Sigma

Various myths and misunderstandings surround Six Sigma. Some of them are listed below:

• Six Sigma is all about reducing errors.
• Six Sigma is a manufacturing or engineering process.
• Six Sigma cannot be applied to engineering activities.
• Six Sigma uses statistics that are difficult to understand.
• Six Sigma is just training.

Benefits of Six Sigma

Six Sigma offers six key benefits that attract businesses:

• Generate sustainable success
• Set a performance goal for everyone.
• Improve customer value
• Accelerate the improvement rate
• Promotes learning and cross-pollination.
• Execute strategic changes

Origin of Six Sigma

• Six Sigma originated at Motorola in the early 1980's in response to achieving a 10x reduction in product defect rates in 5 years.

• Engineer Bill Smith invented Six Sigma but died of a heart attack in a Motorola cafeteria in 1993, unaware of the magnitude of the folly and controversy it had unleashed.

• Six Sigma is based on various quality management theories (e.g. Deming's 14 points on management, Juran's 10 steps to achieve quality).

There are three key elements of Six Sigma process improvement:

• Customers
• processes
• employees

The customer

Customers define quality. They expect performance, reliability, competitive pricing, on-time delivery, service, clear and accurate transaction processing, and more. That means it's important to give customers what they need to delight them.

The processes

The definition of processes and their metrics and measures is the central aspect of Six Sigma.

In a company, quality has to be looked at from the customer's point of view, so we have to look at a defined process from the outside in.

By understanding the transaction lifecycle of customer needs and processes, we can find out what they see and feel. This provides the opportunity to identify weaknesses in a process and then improve them.

The employees

A company must include all of its employees in the Six Sigma program. The company must provide opportunities and incentives for employees to focus their talents and skills on customer satisfaction.

It is important for Six Sigma that all team members have a clearly defined role with measurable goals.

As part of a Six Sigma program, members of an organization are assigned specific roles, each with a title. This highly structured format is necessary to implement Six Sigma across the organization.

There are seven specific responsibilities or "role areas" in a Six Sigma program which are as follows.

guide

A leadership team or council defines the goals and objectives in the Six Sigma process. Just as a business leader sets a tone and course for achieving a goal, the Six Sigma Council sets goals for the team to achieve. Here is the list of duties of the Board of Directors:

• Defines the purpose of the Six Sigma program
• Explain how the result will benefit the customer.
• Establishes a work schedule and interim deadlines
• Develop a means of verification and monitoring.
• Support team members and defend established positions.

Sponsor

Six Sigma sponsors are high-level individuals who understand Six Sigma and are committed to its success. The person in the sponsor role acts as a problem solver for the ongoing Six Sigma project. Six Sigma is typically led by a high-level, full-time advocate, such as an executive vice president.

Sponsors are process and system owners who help initiate and coordinate Six Sigma improvement activities in their areas of responsibility.

Implementation Lead

The person responsible for overseeing the Six Sigma teamwork and assisting the Leadership Council in ensuring the team's work is completed as desired is the implementation lead.

The primary responsibilities of an implementation lead include ensuring the success of the implementation plan and resolving any issues that arise, training as needed, and assisting the sponsors in motivating the team.

Coach

The trainer is a Six Sigma expert or consultant who sets a schedule, defines the outcome of a project, and arbitrates conflicts or manages resistance to the program.

Responsibilities include acting as the liaison between sponsor and leadership, planning teamwork, identifying and defining desired project outcomes, mediating disagreements, conflicts and resistance to the program, and identifying successes as they occur.

team captain

It is a person responsible for overseeing the work of the team and acting as an intermediary between the sponsor and the team members.

Responsibilities include communicating with the sponsor to define project goals and rationale, selecting and supporting team members and other resources, keeping the project on schedule, and tracking process steps upon completion.

team member

An employee working on a Six Sigma project is assigned specific tasks within a project and must meet deadlines in order to achieve specific project goals.

Team members perform specific Six Sigma tasks and collaborate with other team members within a defined project timeline to achieve specifically set goals.

process owner

The person who takes ownership of a process after a Six Sigma team has completed its work.

Belt definitions for extended roles - colors

The association of belt colors with different roles comes from the obvious source, martial arts. Based on experiences and insights, the following roles have evolved over the year.

USE− Belt names are a tool to define specialization and experience levels. They do not change or replace organizational roles in the Six Sigma process.

black ribbon

The person who owns this belt has reached the highest level of skill and is a seasoned expert in various techniques. As is true of the Six Sigma program, the person referred to as Black Belt has completed a full internal training program and has experience working on various projects.

The black belt holder is usually assigned the role of team leader, responsible for execution and scheduling.

Master Black Belt

A person dealing with the team or its leadership; but is not a direct member of the team himself. This can correspond to the role of coach or for more technical and complex projects.

The Master Black Belt is available to answer procedural questions and resolve any technical issues that arise.

Green Belt

The Green Belt designation can also belong to the team leader or a team member who works directly with the team leader.

A Green Belt has less experience than a Black Belt but has a key role within the team.

The starting point in preparing for Six Sigma is to see if you are willing to accept a change that says, "There is a better way to run your business."

Is Six Sigma Right for You?

When conducting a readiness assessment, there are a few key questions and facts to consider:

• Is the company's strategic direction clear?

• Is the company healthy enough to meet analyst and investor expectations?

• Is there a strong theme or vision for the future of the organization that is well understood and consistently communicated?

• Is the organization good at responding effectively and efficiently to new circumstances?

• Evaluate the current overall business results.

• Rate how effectively we address and meet customer needs.

• Rate how effectively we work.

• How effective are your current change and improvement management systems?

• How well are your cross-functional processes managed?

• What other change efforts or activities might counteract or support the Six Sigma initiative?

• Six Sigma requires investment. Unless you can make a compelling case for future or current returns, it may be best to stay away.

• If you already have a strong and effective performance and process improvement offering, why do you need Six Sigma?

There could be many questions to answer to get a thorough evaluation before deciding whether or not to go with Six Sigma. This may take time and extensive consultation with Six Sigma experts to make a better decision.

The cost of Six Sigma implementation

Some of the key Six Sigma budget items can include:

• Direct payroll for people who devote themselves to the effort full-time.

• Indirect payroll for the time spent by managers, team members, process owners and others involved in activities such as data collection and measurement.

• Training and consulting fee to teach Six Sigma skills and receive advice to make efforts successful.

• Cost of implementing improvements.

Commissioning of Six Sigma

You have now chosen Six Sigma. What's next?

Implementing Six Sigma in an organization is a big step and involves many activities including the define, measure, analyze, improve and control phases. Here are some steps required for an organization to begin implementing Six Sigma.

• Plan your own route− There may be many paths to Six Sigma, but the best one is the one that works for your business.

• Define your goal− It is important to decide what you want to achieve and priorities are important.

• Stick to what is possible− Align your plans to match your influence, resources and reach.

• prepare leaders− You must initiate and lead the Six Sigma effort.

• Building a Six Sigma organization− This includes preparing Black Belts and other roles and assigning their responsibilities.

• Train the organization− In addition to owning Black Belts, Six Sigma training is required for all employees in the organization.

• Six-Sigma-Pilottest− Piloting can be applied to any aspect of Six Sigma, including solutions derived from process improvement or design redesign projects.

Selection of projects for Six Sigma

One of the most difficult challenges in Six Sigma is choosing the most appropriate problem to attack. In general, there are two ways to create projects:

• Top down− This approach is generally linked to the business strategy and aligned with the needs of the customer. The main weakness is that they are too broad in scope to be completed in time (most Six Sigma projects are expected to be completed in 3-6 months).

• Prost− With this approach, Black Belts select projects that are well suited to the skills of the team. A major disadvantage of this approach is that projects may not be directly linked to management's strategic concerns and thus receive little support and recognition from above.

Six Sigma has two key methods:

• DMAIC− Refers to a data-based quality strategy for process improvement. This methodology is used to improve an existing business process.

• DMADV− Designates a data-based quality strategy for the design of products and processes. This methodology is used to create new product designs or process designs in a way that results in more predictable, mature, and error-free performance.

There is another method calledDFSS− Design for Six Sigma. DFSS is a data-driven quality strategy for designing or redesigning a product or service from scratch.

Sometimes a DMAIC project can become a DFSS project because the process involved requires a complete redesign to achieve the desired level of improvement.

DMAIC methodology

This methodology consists of the following five steps.

Define -->METROlightness -->Aanalyze -->fromimprove -->Ccontrol

• Define− Define the project problem or goal to be addressed.

• Measure− Measure the problem and the process that caused it.

• Analyze− Analyze data and processes to identify root causes of failures and opportunities.

• Improve− Improve the process by finding solutions to solve, reduce and prevent future problems.

• control− Implementation, control and maintenance of improvement solutions to keep the process on the new course.

In the following chapters we will discuss more about the DMAIC methodology.

DMADV methodology

This methodology consists of five steps:

Define -->METROlightness -->Aanalyze -->DShape ->verify

• Define− Define the project problem or goal that needs to be addressed.

• Measure− Measure and determine customer needs and specifications.

• Analyze− Analyze the process to meet customer requirements.

• Design− Design a process that meets the needs of customers.

• Test− Verification of design performance and ability to meet customer requirements.

DFSS methodology

DFSS is a separate and emerging discipline related to Six Sigma quality processes. This is a systematic methodology that uses tools, training and measurement to enable us to develop products and processes that meet customer expectations and can be produced to Six Sigma quality levels.

This methodology can include the following five steps.

Define -->fromidentify -->DShape ->Öoptimize ->verify

• Define− Define what customers want or don't want.

• Identify− Identify the customer and the project.

• Design− Design a process that meets the needs of customers.

• Optimize− Determine process capability and optimize design.

• Test− Test, verify and validate the design.

There are five general steps in applying Six Sigma to improve the quality of results. The first step isDefine. Four main tasks are performed during the define phase.

The project team continues to train

Perform two activities:

• Determine who should be on the team.
• What roles will each person play?

Choosing the right team members can be a difficult decision, especially when a project involves many departments. With such projects, it may be wise to break them down into smaller pieces and work towards completing a series of projects in stages.

Document the customer's core business processes

Every project has customers. A customer is the recipient of the product or service of the process, the goal of improvement. Every customer has one or more requirements for their provider. For every expected need, there are needs requirements. Requirements are the characteristics of the need that determine whether the customer is satisfied with the product or service provided. Therefore, document customer needs and associated requirements.

A number of business processes are documented. These processes are executed to meet customer requirements and solve their critical quality issues.

Develop a project brief

This is a document that names the project, summarizes it by explaining the business case in a short statement, and lists the scope and goals of the project. A project order has the following components:

• project name
• Business case
• project scope
• project goals
• milestones
• Special requirements
• special cases
• Roles and responsibilities of the project team

Development of the SIPOC process map

A process is defined as a series of steps and activities that take input, add value, and produce results.

SIPOC is a process map that identifies all of the following elements of a project:

• SOfferer

• fromVerboten

• PAGprocess

• ÖSalida

• CCustomers

The SIPOC Process Map is essential to identify:

• The way processes are currently running.

• How these processes should be modified and improved in the remaining phases of DMAIC.

Conclusion

At the end of the design phase, you should know who the customer or end user is, what their strengths and needs are. You should also have a clear understanding of the project's goals and scope, including budget, time constraints, and deadlines.

During the measurement phase, the overall performance of the core business process is measured.

There are three important parts of the measurement phase.

Data collection plan and data collection

A data collection plan is drawn up to collect the required data. This plan includes what type of data to collect, what the data sources are, etc. The reason for data collection is to identify areas where current processes need improvement.

It collects data from three main sources: input, process and output.

• The input source is the place where the process is started.

• Process data relates to the efficiency tests: the time taken, the cost, the value, the defects or defects, and the work put into the process.

• Production is a measure of efficiency.

data evaluation

In this phase, the collected data is evaluated and Sigma is calculated. Provide an approximate number of defects.

• A Six Sigma failure is defined as anything outside of customer specifications.

• A Six Sigma chance is the total number of chances for an error.

First we calculate the Defects Per Million Opportunities (DPMO) and based on that a Sigma is set from a predefined table:

Number of DPMO errors = -------------------------------------------------------- x 1,000 0.000 Number of Units x Number of Opportunities

As stated above, the number of bugs is the total number of bugs found, the number of units is the number of units produced, and the number of opportunities is the number of opportunities to generate bugs.

For example, the food order delivery project team examines 50 deliveries and finds the following:

• Delivery does not come on time (13)
• The ordered food does not correspond to the order (3)
• The food is not fresh (0)

So DPMO will now look like this:

13 + 3DPMO = ----------- x 1.000.000 = 106.666,7 50 x 3

According to the specified performance-to-sigma conversion table, less than 106,666.7 defects per million opportunities equates to a sigma performance between 2.7 and 2.8.

This is the method used to measure results as we progress through a project. This starting position enables us to localize the cause and effect of these processes and to find the point of failure in order to improve the process.

Failure Mode and Effects Analysis - FMEA

The last section of the measurement phase is called FMEA. It refers to avoiding mistakes before they occur. The FMEA process generally involves qualifying for potential defects or failures in three ways:

• The likelihood of something going wrong.
• The ability to spot an error.
• The severity of the error.

You can use a rating scale. For example, rate each of these three areas from 1 to 10, where 1 is the lowest level of the FMEA and 10 is the highest. The higher the level, the stricter the rating. Therefore, a high FMEA indicates the need to design and implement improved measurement steps within the overall process. This would have the effect of preventing defects. Of course, if the probability of a defect is low, this procedure does not need to take much time.

Yield to Sigma conversion table

Six Sigma aims to define the causes of errors, measure these errors and analyze them so that they can be reduced. We consider five specific types of analysis that contribute to further project goals. These are analyzes of sources, processes, data, resources and communication. Now we will see them in detail.

source analysis

This is also calledroot cause analysis. It tries to find the errors resulting from the information sources or work generation. After finding the root cause of the problem, an attempt is made to solve the problem before eliminating the product's shortcomings.

Three steps to root cause analysis

• the open aisle− During this phase, the project team works out all possible explanations for the current performance of sigma.

• the narrow pass− In this phase, the project team narrows down the list of possible explanations for the current Sigma performance.

• the near pass− During this phase, the project team validates the reduced list of explanations that explain sigma's performance.

process analysis

Break down the numbers to find out how well or poorly processes perform compared to what's possible and what the competition is doing.

Process analysis involves creating a more detailed process map and analyzing the more detailed map where the greatest inefficiencies exist.

Source analysis is often difficult to distinguish from process analysis. Process refers to the precise movement of materials, information, or requests from one place to another.

data analysis

Using measurements and data (previously collected or new data collected in the analysis phase) to identify patterns, trends or other factors of the problem that suggest or prove/disprove the possible cause of the problem.

The data itself may contain errors. It may happen that the products or services do not contain all the required information. Therefore, the data is analyzed to detect errors and an attempt is made to fix the problem before we hope to fix the product.

resource analysis

We also need to ensure that staff in all departments involved in the process are properly trained. If the training is insufficient, you should identify this as the cause of the deficiencies.

Other resources include the raw materials needed to manufacture, process, and deliver the goods. For example, if the accounting department does not pay the supplier's invoices on time and the supplier consequently holds back a shipment of shipping material, this becomes a resource problem.

communication analysis

A problem common to most high-fault processes is poor communication. The classic interaction between a customer and a retail store is worth studying as many of the common communication problems are evident in this case.

The same types of issues also occur with internal customers, although we may not recognize the sequence of events as a customer service issue.

The practice of looking at problems from both perspectives is instructive. A supplier wants payment according to the agreed terms, but accounting wants their batch processing to be consistent and efficient. In these types of groups, such separations demonstrate the importance of communication analysis.

Conclusion

The analysis can take several forms. Some Six Sigma programs tend to use lots of charts and worksheets, and others prefer discussions and making lists. There are many tools that can be used to perform analysis like box plot, cause and effect diagram, progressive analysis, ranking, pareto analysis, prioritization matrix, value analysis, etc. The right technique is the one that works best for your team , as long as the end result is successful.

If the project team works thoroughly in the root cause analysis phase, the DMAIC improvement phase can be a quick, easy, and satisfying task.

The goal of the improvement phase is to identify improvement breakthroughs, identify high-win alternatives, select the preferred approach, design the future state, determine the new Sigma level, perform cost/benefit analysis, design dashboards/scorecards, and plan to create a preliminary implementation.

• − Identify progress for improvement

• Apply idea generation tools and techniques to identify potential solutions that eliminate root causes.

• Identifying/selecting highly profitable alternatives −

• Develop criteria for evaluating possible improvement solutions.

• Think systematically and holistically.

• Prioritize and evaluate candidate solutions using solution evaluation criteria.

• Conduct a proof of concept for the most valuable solutions.

• Develop preliminary solution plans and cost-benefit analyzes to support the presentation of recommendations and future implementation planning.

Improvement can include a simple fix once we discover the causes of the deficiencies. However, in some cases we may need to use additional tools as well. These include −

• alternative solutions
• Experiments with alternative solutions
• planning for future changes

The last phase of DMAIC is the control, where we ensure that the processes continue to work well, achieve the desired results and maintain the level of quality. You will be interested in four specific aspects of control which are as follows.

quality control

The primary aim of the control is to ensure that a high standard of quality is maintained. Customer expectations depend on it, so control is inseparable from quality.

Since the purpose of Six Sigma is to improve the overall process by reducing errors, quality control is the essential method to keep the entire process on track. to enable us to identify and solve problems; and to assess the effectiveness with which the project was carried out and implemented.

Quality is at the heart of the Six Sigma philosophy. Reducing errors has a lot to do with striving for perfection. Whether we achieve perfection or not, the effort itself determines our attitude towards quality.

standardization

Processes can develop optimally through standardization. In a production environment, the value of standardization has been proven time and time again.

We need to design a control function for the processes so that most of the work is managed in a standardized way.

control methods and alternatives

The development of a new process, or any change to an existing process, requires the development of workflow control procedures.

When a process cannot be managed in a normal way, we must find alternatives without forcing compliance with the standardized method.

Respond when errors occur

The final step in a control process is knowing how to respond when an error is discovered. Weak points in the process, where errors are most likely to occur, can and should be carefully monitored so that errors can be identified and corrected before the process continues.

Responding to a bug can be to prevent a detected bug from becoming a bug. In the best designed systems, errors can be reduced to near zero, so we truly believe that Six Sigma is achievable.

Conclusion

The project team determines how to engineer the newly improved process and creates a response plan to ensure the new process and also maintain the improved Sigma performance.

This chapter provides an overview of the top 10 technical tools a Six Sigma team member must master as they progress through the DMAIC methodology.

Although these tools are considered technical in nature, most of them are relatively easy to learn and use. They are treated in the order in which they are used in the DMAIC methodology.

Tool #1 – The Critical Quality Tree (CTQ)

The critical quality tree is used during the DMAIC design phase. It is used to generate ideas and validate the needs and requirements of the customer of the process, objective of improvement.

The steps to create a CTQ tree are as follows:

• Identify the customer of the process to be improved.

• Identify the customer's needs.

• Identify the first level of requirement requirements, i.e. H. some characteristics of the need that determine whether the customer is satisfied with the need.

• If necessary, drill down to more detailed levels of the requirement.

Tool #2 – The Process Map

During the definition phase, the project team creates the first of several process maps. A process map is a picture of the current steps in the process that you want to improve.

A process map has five main categories of work, beginning with identifying the providers of the process, the inputs that the providers provide, the name of the process, the output of the process, and the customers of the process. Each of these steps is summarized as a SIPOC to tell the team what steps need to be taken to complete a process map.

Tool #3 - The Histogram

This tool is used during the DMAIC analysis phase. The project team reviews the data collected during the DMAIC measurement phase.

It is often suggested to organize the data in charts or tables, making it easier to understand what the data is telling about the process.

There are two types of data: discrete data (go/no go, fail or pass) and continuous data (time, altitude, etc.).

Tool #4 – The Pareto Chart

The histogram is useful for continuous data, just as most teams create a Pareto chart for discrete data. Discrete data is count data: go/no go, off/on, yes/no, and error/no error type data.

An Italian economist, Vilfredo Pareto, proved mathematically in the 16th century that 80 percent of the world's wealth is controlled by 20 percent of the population. This 80-20 rule eventually proved applicable to fields other than economics.

When dealing with discrete data, the project team should create reason codes as to why an error occurs and count and categorize the data into those reason codes and a Pareto chart should be created.

Tool #5 – The Process Summary Worksheet

The goal of a Six Sigma project team is to improve effectiveness and efficiency. Efficiency is measured in terms of cost, time, labor, or value.

The Process Summary Worksheet is a "summary" of the thread map, indicating which steps add value and which steps add no value in the process.

Tool #6 - The Cause and Effect Diagram

The most important tool to help the project team determine the root cause is the cause and effect diagram. This tool captures all of the project team's ideas on what they consider to be the root causes of sigma's current performance and ultimately helps to find the root cause of the problem.

Tool #7 - The Scatterplot

After the ideas have been prioritized using the cause and effect diagram, the most important thing the project team does is validate the remaining ideas with facts and data.

The scatterplot takes an idea of ​​the root cause and tracks the appropriate data in the response that the team is trying to improve. The team can validate a root cause idea through one of three methods. Using basic data collection, a designed experiment, or the scatterplot.

Tool #8 - The Affinity Diagram

An affinity diagram is used to sort and categorize a large number of ideas into major themes or categories. It is especially useful when the team is ready to come up with solutions in the improvement phase of DMAIC. The steps to create an affinity diagram are:

• Have each team member write one idea per post-it note and post it on any wall.

• As the ideas are read for clarification, sort them into similar groups.

• Create a "Header" card for each general category of ideas below.

Tool #9 - The Run Chart

We have discussed the histogram and the Pareto chart. Think of these two tools like a camera that captured a snapshot of the process. However, the flowchart is similar to a video camera that records some elements of the process over time.

Tool #10 - The Control Chart

Similar to a history chart, a control chart uses data from a history chart to determine upper and lower control limits. The control limits are the expected limits of variation above and below the mean of the data. These limits are calculated mathematically and are indicated by dashed lines.

Conclusion

We looked at 10 key technical tools project team members use during their time on a Six Sigma team. These aren't the only tools a Six Sigma team can use. However, the tools discussed here are the ones most commonly known and trusted by all team members.

Before we continue, let's define two terms:

• A Six Sigma failure is defined as anything outside of customer specifications.

• A Six Sigma chance is the total number of chances for an error.

This chapter provides a list of formulas commonly used to measure various metrics related to Six Sigma failures.

Errors per unit - DPU

Total DPU Defects = ------------------------ Total Product Units

The probability of getting error 'r' in a sample with a given DPU rate can be predicted using the Poisson distribution.

Total Odds - BIS

TO = total number of product units x opportunities

Occasional Deficiencies - Data Protection Officer

Total Errors DPO = ------------------------ Total Possibility

Defects per million opportunities - DPMO

DPMO = Data Protection Officer x 1,000,000

Defects per million opportunities or DPMO can be converted to sigma values ​​using the power to sigma conversion table provided in FIGSix Sigma - Messphase.

According to the conversion table −

6 Sigma = 3,4 DPMO

How to find your Sigma level

• Clearly define explicit customer requirements.
• Count the number of errors that occur.
• Determine the yield percentage of items with no defects.
• Use the conversion table to determine the DPMO and Sigma level.

Simplified Sigma Conversion Table

We can summarize the following points:

• Six Sigma is a quality improvement philosophy.

• Six Sigma is 3.4 Errors in a Million Ways (DPMO).

• The components of Six Sigma are customer, process and people.

• Six Sigma implementation requires the following roles:

  • managing Director

  • Sponsor

  • black ribbon

  • Master Black Belt

  • Green Belt

• The generic Six Sigma cycle includes the following phases: Define, Measure, Analyze, Improve and Control.

• Six Sigma is dedicated to “customer orientation”.

  (Video) Six Sigma Full Course | Six Sigma Explained | Six Sigma Green Belt Training | Simplilearn

This introductory tutorial provides only a small glimpse into Six Sigma and is by no means complete. We encourage our readers to explore other resources available on the Internet to gather more information about Six Sigma. For the convenience of readers, we have listed some resources in our Resources section.

Below is a glossary of terms commonly used in Six Sigma:

Process map "as is"

It represents a process as it is now. "As-is" process maps are typically characterized by multiple input options, bottlenecks, and multiple handoffs, inspections, and post-processing loops.

Process map "should"

A representation of a new and improved version of a process used in DMAIC and iDMAIC projects, removing any steps that add no value.

affinity graph

An affinity diagram is a tool for organizing large amounts of information from many people. Commonly used with brainstorming and other creative thinking activities. Ideas are usually written on sticky notes and then categorized into groups of similar ideas.

Analysatorphase (DMAIC)

The analysis phase identifies the root causes of the problem and confirms them with data.

SIXSIGMA council area

Leadership group (Area VP, AMD, AD, MBB and often GM) leading the implementation of Quality and SIXSIGMA within the organization; creates, reviews and supports the progress of SIXSIGMA DMAIC and iDMAIC projects.

Busting Fancy

An inquiry process that helps identify and eliminate preconceived ideas or blind spots that prevent people from proposing or seeking the best solution.

Attributdaten

Identifies all data that is not quantized on an infinitely divisible scale. Contains a count, proportion or percentage of a characteristic (e.g. region, location, room type...) or category (e.g. gender: male/female...). This is in contrast to "continuous" data, which is not limited to categories (e.g., cost in dollars).

Balanced Scorecard

It classifies ongoing actions in a few key areas such as finance, processes, people and innovation. It is used as a presentation tool to keep sponsors, senior management and others informed of the progress of a company or process. It is also useful for process owners.

reference measurements

Data reflecting the level of performance that exists at the beginning of an improvement project before a solution is initiated. It is the "before" snapshot that is later compared to the "after" view.

Better Practices

A completed project (usually, but not always, a Six Sigma project) that is particularly valuable for use in other properties based on the satisfaction of the following three conditions: success, transferability, and speed of benefit realization

black ribbon

A staff member fully dedicated to Six Sigma and trained in DMAIC methodology, analytical tools and team leadership skills. Black Belts are responsible for leading DMAIC projects to completion. They run DMAIC projects, help with quick hits, and provide expert advice and support for iDMAIC transfer projects. His role on best practices and innovation transfer projects is to support and train the import team on the DMAIC tools and methodology.

both and

It is a narrowing/selection process that aims to identify solution ideas that are similar (AND) and that work together even if they are not similar ideas (BOTH). This technique helps the team find connections and combinations of ideas to create better, more viable solutions.

Box-Plot

It is a graphical display of data bins that compares bins to each other on a chart. An example of the tool would be observing the variation in check-in time by different receptionists.

Critical for Quality (CTQ)

It refers to what customers consider important in a particular process. The collection of voice-of-the-customer data leads to CTQ detection, which translates into various measurable requirements.

Cause and Effect Diagram (Herringbone/Ishikawa)

Brainstorming tool used to suggest root causes (the "bones of the fish") for a specific effect (the head of the fish). This can be used in combination with the affinity diagram to determine the main categories. It is also often used in combination with the "5 Whys" technique to help people understand the root cause.

Map

It is a team document that defines the context, details, and plans for an improvement project. It includes business cases, problem and goal statements, constraints and assumptions, roles, preliminary plan and scope.

solution sheet

Forms, spreadsheets or worksheets set up in advance for use in data collection; enables the consistent collection of stratified data.

Variation of common cause

It is a normal and daily influence in a process. This form of variation is often more difficult to eliminate and requires process changes. Problems with common causes are called “chronic pain”.

complexity matrix

A tool that allows teams to determine the level of complexity of a project.

continuous data

Any quantity measured on a continuous scale that can be infinitely divided; The primary types include time, dollars, height, weight, temperature, and speed.

Kontrollphase (DMAIC)

The control phase in DMAIC evaluates the solutions and plan, standardizes the solutions, and outlines steps for continuous improvement, including ways to use the solutions elsewhere.

tax table

It is a specialized chart that plots process performance over time, shows average upper and lower control limits, and helps determine common cause (common) or special cause (uncommon) influences.

correlation

It is a measure of the degree to which two variables are related. It is calculated to quantify the strength of the relationship between the two variables.

Poor Quality Cost (COPQ)

It is a financial measure that describes the impact of problems due to internal and external defects on the process, which includes labor and material costs for deliveries, rework, scrap or rejects, inspection and other non-value-added activities.

Process capacity (Cpk or Cp)

Process capability is the degree to which a process can meet customer requirements.

criteria matrix

It is a decision tool used when weighing potential options against key factors such as cost, ease of implementation, customer impact, etc. Encourages the use of facts, data and clear business goals in decision making.

Client

It is an internal or external person/organization that receives the result product or service from the process.

Client requirements

You define the needs and expectations of the customer; Translated into measurable terms and used in the process to ensure customer needs are met.

cycle time

The time it takes to complete a process from start to finish. Including actual working time and waiting time.

Define, Measure, Analyze, Design and Verify (DMADV)

Describes the application of SIXSIGMA tools for the design of new products and processes.

DMAIC

Acronym for Process Management/Improvement System, which stands for Define, Measure, Analyze, Improve and Control; It gives structure to applications for process improvement, design or redesign.

DMAIC training 1

It is a DMAIC training for Master Black Belts, Black Belts and Green Belts. This course starts with the SIXSIGMA Problem Solving Methodology (DMAIC) and focuses on the first steps of define, measure and part of analyze.

DMAIC 2 training

It is a DMAIC training for Master Black Belts, Black Belts and Green Belts. This course concludes the DMAIC method and ends analyzing, improving and controlling.

DMAIC 3 training

It is a DMAIC training for Master Black Belts. This course deepens the participant's mastery of problem solving and statistical tools.

DMAIC project

Projects that follow the DMAIC methodology and are led by a Black Belt; it usually lasts 3-4 months and can exceed functional limits. A DMAIC project focuses on improving an existing process using the 5 steps of Define, Measure, Analyze, Improve and Control.

Defects per million opportunities (DPMO)

Calculation used in SIXSIGMA initiatives to show how much "better" or "worse" a process is by giving the number of bugs in a process per million possibilities.

Dashboard (oder Process Command Boards)

It is a graphical tool that provides a summary update of key process performance indicators. You can add "alerts" to indicate if and when a key indicator is approaching a problem level.

data collection plan

It is a structured approach to identify the required data to collect and the approach to collect it. It includes: the measurement, the type of measurement, the type of data, the operational definition and the sampling plan if new data is needed.

decision tree

Used during the SIXSIGMA Council process to determine the weighting of project selection. Focuses real estate on the area (whether revenue, cost reduction or ASI, GSI) that requires the most attention to achieve overall real estate goals.

Lack

It is any case or incident where the product or service does not meet the customer's requirements.

defect opportunity

It is a potential defect in a unit important to the customer.

malfunction

It is any unit with one or more defects.

Define phase (DMAIC)

It is the first phase of DMAIC, in which the purpose and scope of the project are defined. Background information about the process and the customer is collected. The output of this phase includes a clear explanation of the improvement (ie business case and project definition form), a high level process map (SIPOC) and a list of what is important to the customer.

Process map for implementation

A map or graphical view of the steps in a process shows the sequence as it moves between departments, functions or people.

Descriptive Statistics

It's a statistical profile of the data collected, which includes means, variances, and other numbers that help team members assess "how bad" a problem is and identify where to focus further analysis and resolution.

Draft for SIXSIGMA (DFSS)

Describes the application of SIXSIGMA tools to product development and process design with the aim of "engineering" the capabilities of SIXSIGMA.

Discounted Cash Flows (DCF)

A method of financial analysis that allows different projects to be compared based on their total value in running dollars. DCF converts future cash flows into current dollar equivalents.

Discrete data (attribute data)

It is all data that is not quantified on an infinitely divisible scale. Contains a count, proportion, or percentage of a feature or category

SIXSIGMA Council Division

Leadership group (Presidents and direct reports, SIXSIGMA Division Heads, AMD and often MBB and GM) leading the implementation of Quality and SIXSIGMA within the Division; creates, reviews and supports the progress of SIXSIGMA DMAIC and iDMAIC projects. The Division Council is responsible for driving the SIXSIGMA initiative within this division and is accountable for project, process and business outcomes.

Documentation

The documentation is a historical record of the activities and decisions made during a DMAIC, Quick Hit and iDMAIC project and is intended to facilitate the sharing of best practices within an organization and as part of the project closeout process.

E-SIXSIGMA Projekttool (eTool)

Online database capturing project information (DMAIC, Quick Hit and iDMAIC) including proposed project objectives, problem statement, projected costs and benefits, and toll documentation information for each phase of DMAIC and iDMAIC projects.

effectiveness

It is a measure of how well the outcome of the process meets the needs of the customer. It mainly relates to customer satisfaction.

efficiency

It is a measure related to the amount of resources used to achieve the result of a process.

falling outwardly

Then the defective units go through the whole process and are received by the customer.

Failure Mode and Effects Analysis (FMEA)

A useful technique to prevent future problems and reduce risks for a solution.

It is used to identify and evaluate errors and defects that could endanger quality, safety or reliability; It is useful when implementing improvements, redesigns or process designs. It is also a tool for process owners to build preventive and emergency measures into the project plan.

fishbone diagram

See cause and effect diagram.

five why

The five whys are often used to create cause and effect. It is the technique of asking “why” five times to examine each possible cause. You wonder "why" until the root cause is uncovered.

force field analysis

This is a list of factors that support an idea and factors that "harm" an idea. One side of the page lists 'limiting' factors and the other side lists 'driving forces'. Frequency chart or histogram

It is a graphical representation of the shape or distribution of data, showing how often different values ​​occur. It helps answer the question, "Is the process capable of meeting my customers' needs?"

functional map

See implementation process map.

Forward looking cause and effect

A traditional cause and effect diagram used to brainstorm future actions to be used during the improvement phase of a DMAIC project.

Gantt chart

It is a project planning and management tool that shows all tasks or activities related to a project or initiative and the relationships/dependencies between these tasks.

Global SIXSIGMA Council

Leadership group (Starwood Senior Operating Committee and Division Presidents) leading the implementation of Quality and SIXSIGMA within the organization that defines, reviews and supports the progress of SIXSIGMA DMAIC and iDMAIC projects. The SIXSIGMA Global Council is responsible for the development and promotion of SIXSIGMA at Starwood.

goal statement

Description of intended goal or desired outcomes of process improvement or design/redesign activities; It is typically outlined during the PDF proposal phase, reviewed during the definition phase of a DMAIC project, and backed with actual numbers and details once the data is available.

Green Belt

Employees trained to the same level as Black Belts, but not on full-time assignments at SIXSIGMA. You can run DMAIC projects, lead smaller SIXSIGMA projects part-time, contribute to larger projects as team members, and/or run quick hits or innovation transfer project implementations.

hands free

At any point in a process where one person (or job title) or group passes the item being moved through the process to another person; A transfer has the potential to add errors, time and expense to a process.

hawthorn effect

It is an increase in labor productivity that results from the psychological stimulus of being temporarily chosen and feeling important.

Histogram or frequency chart

See frequency chart.

hypothesis statement

It is the complete description of the suspected causes of a process problem.

iDMAIC

iDMAIC stands for "DMAIC Innovation". iDMAIC is a methodology developed to ensure a constant and rapid transfer of innovation within Starwood. Innovations can be DMAIC projects, Quick Hits, or other Starwood innovations.

Internal Rate of Return (IRR)

It is a way of comparing potential projects by calculating the financial value of a project against the investment required.

Impact/Stress-Matrix

A graphical representation of various projects plotted along two axes (Y = Impact, X = Effort). It is a project selection tool that allows comparing different projects during the project selection part of the SSC process.

implementation plan

A project management tool used in the “Improve” phases of DMAIC and iDMAIC, gathering tools such as stakeholder analysis, FMEA, poka-yoke, SOP and pilot results (if conducted) in a consolidated format.

Improvement Phase (DMAIC)

The goal of the Improve phase is to test and implement solutions that address the root causes. This step will help eliminate any bugs/false starts when the team eventually implements the fix.

Innovationstransfer

The successful transfer of a new idea, method or solution from one object to another can be a quick hit, best practice or any other innovation.

Entry

It is any product, service or information that goes into a vendor's process.

entry measures

Measures related to and description of inputs to a process; they can be predictors for process and output measures.

Diagram from Ishikawa

See cause and effect.

Kano-Analyse

A chart showing how customer satisfaction is affected by a specific issue, change, or other variable. The chart is divided into three regions of customer responses to the variable: Dissatisfied, Satisfied, and Delighted.

Leader training in SIXSIGMA (LSS)

It is an introductory course for top management in SIXSIGMA at Starwood, the SIXSIGMA Problem Solving Methodology (DMAIC) and the project selection process.

Team Leadership Training (LT)

It is a team leadership workshop that provides participants with the necessary skills to lead teams in a challenging environment. The participants, Master Black Belts, Black Belts and Green Belts, are also familiar with the SIXSIGMA Problem Solving Methodology (DMAIC) and the project selection process.

Lernzyklus

An individual and team learning exercise that helps people identify their own and others' views on the team's decision-making process and overall team performance.

flashcard

It is a highly engaging, accelerated, experiential learning activity to introduce the SIXSIGMA concepts and initiatives at each Starwood hotel. It consists of a table-sized visual map “SIXSIGMA: Innovation and Improvement” and a set of cards that guide participants through an exploratory learning activity.

Master Black Belt (MBB)

He is SIXSIGMA Business Champion and Black Belts Coach. The MBB is trained in the DMAIC process, analysis tools and moderation skills. The MBB is responsible for project selection for the property and area, ensuring that the DMAIC process is implemented and that all projects are on track for completion.

Measure (General Definition)

It is a numerical rating based on observable data. Some examples of measures could be the number of new bookings per day, the number of check-ins per week, the number of employees scheduled per shift.

Messphase (DMAIC-Phase)

The Measure phase focuses improvement efforts by gathering information about the current situation.

moment of truth

It is any event or point in a process where the internal/external customer comes into contact with a process. At each of these points, the customer has the opportunity to form an opinion (positive, neutral or negative) about the process or the organization.

multiple Regression

It is a quantitative method that relates multiple factors to the outcome of a process. The statistical study of the relationship of a combination of multiple variables (X1, X2, X3...Xn) with a single output Y.

multivoto

It is a demarcation or prioritization tool. Based on a list of ideas, problems, causes, etc., each member of a group is assigned a certain number of "votes". Items or issues that receive the most votes receive the most attention/consideration.

Kapitalwert (NPV)

It is the equivalent in today's dollars of a stream of future cash flows. The NPV calculation attempts to quantify the concept that money received in the future is worth less than money received today.

non-value added activities

Any step in a process that does not add value to the customer or the process. For example, rework, transfers, inspections, delays, etc.

working definition

A clear and precise definition of the factor being measured or the term used; ensures a clear understanding of terminology and the ability to collect data or operate a process consistently.

Optionale Best Practices

Usually a full project, but not always a Six Sigma DMAIC or Quick Hit project that is particularly valuable for use on other properties.

Original Equipment (Original DMAIC/Quick Hit Project Equipment)

This is the team that initiated and completed the original process improvement project (DMAIC or Quick Hit) in your organization. The role of the originating team is to ensure proper documentation of the project to facilitate the transfer and to provide advice, clarification and support to the teams importing your project.

Production

Any product, service or information that arises or results from the activities of a process.

outlet measurements

These are the related metrics that describe the outcome of the process; Totals/General Measurements.

Pareto principle and diagram

A Pareto chart is a data visualization tool based on the Pareto principle; or the 80/20 rule. It is used to help a team focus on the specific causes or issues that will have the greatest impact if resolved.

Pilot

It is the experimental implementation of a solution on a limited scale to ensure its effectiveness and to test its impact.

Plan-Do-Check-Act (oder PDCA)

It is a basic model or set of steps for continuous improvement; also called "Shewhart cycle" or "Deming cycle".

Poka-Yoke

Poka-yoke is a Japanese term for "failsafe". Error testing typically looks at each step of the process in detail and uses creative thinking to devise ways to prevent errors from occurring.

precision

It is the accuracy of a measurement. Used in terms of sampling, it implies the amount of change you need to detect. As the need for precision increases, so does the sample size.

preliminary plan

It is used in the initial stages of a project while developing milestones for team activities related to process improvement; It includes key tasks, estimated completion dates, responsibilities, potential issues, roadblocks and contingencies, and communication strategies.

procedure

It is a series of steps or actions leading to a desired result or outcome. A general set of tasks that create a product, service, process, or plan that satisfies a customer or group of customers.

process owner

Process owners are the people who are responsible for a specific process.

workability

Statistical measures summarizing how much deviation there is in a process relative to customer specifications.

process improvement

Improvement approach focused on incremental changes includes solutions to eliminate or reduce errors, costs or cycle times; leaves the basic design and assumptions of a process intact.

process under control

A statistical concept indicating that a process is operating within an expected range of variability and that the variability is primarily influenced by 'common cause' factors; Processes running in this state are referred to as "under control".

process management

It involves defining and documenting a process and continuously monitoring it to ensure that the measurements provide feedback on the operation/function of a process; Key metrics include finance, process, people and innovation.

Process map or flowchart

Graphical representation of the flow or sequence of events followed by a product or service; shows all activities, decision points, rework loops and handovers.

process measures

It is an action related to individual steps in the process and/or the process in general; can be predictors for output measures.

Process redesign

It is a method of restructuring a process by eliminating handoffs, rework, inspection points, and other non-value-added activities. it generally means a "clean" design and accommodates major changes or improvements.

Project definition form (PDF)

It is the summary of relevant information that describes a SIXSIGMA project. This includes the problem, objective, scope, business case, financial benefits and costs, project schedule, resource requirements, actions, etc.

project management

It is the use of tools, techniques and/or software to track a project and avoid obstacles to success in a timely manner.

Project nomination (iDMAIC)

A Black Belt, MBB, Sponsor or General Manager associated with a project nominates the project for Innovation Transfer using the e-Six Sigma project tool. The nominator evaluates the project.

Selection of projects (iDMAIC)

During quarterly review meetings, each Division Council reviews all projects that have been nominated as best practices.

Project sponsor

This is a member of the board, a strong supporter of the project and can help with any obstacles that may arise.

project justification

It is a broad statement that defines a problem area or opportunity, including the impact/benefit of potential improvements or the risk of not improving a process; Connections to business strategies, customer and/or company values.

SIXSIGMA Owners Council

It is the governance group responsible for project selection and status monitoring at each Starwood facility. The members of the SSC are the General Manager, the Executive Committee and the Black Belt.

faulty relationship

percentage (or fraction such as 1/8) defective units; Number of defective units divided by the total number of units.

Suggest

It is the first phase of the life cycle of a SIXSIGMA project (DMAIC or Quick Hit). in which the potential idea or project opportunity is proposed to the SIXSIGMA Property Council.

quick hit project

It is a small project that can be implemented quickly and does not require a black belt to solve and implement.

RACI Matrix

A project management tool that identifies each required task or activity, the parties involved in those tasks, and their level or type of involvement.

A RACI is used to provide clarity about roles and responsibilities in a team environment.

Return on Capital (ROI)

It is a measure of an investment opportunity's financial return, expressed as a percentage. Other things being equal, projects with a higher ROI are more attractive investment opportunities.

spot checks

It is a method that allows each item or person selected to be measured and selected completely at random.

relapse

It is the statistical study of relationships. An analytical tool that enables an assessment of a key result and the extent to which one or more factors examined may explain the variation in results; see also Simple Linear Regression; Multiple Regression.

Repeatability/Reproducibility

Repeatability means that the same person taking a measurement on the same device will get the same result. Reproducibility means that other people, other instruments, or other laboratories will get the same result you get when measuring the same item or property.

Required Best Practices

A project deemed superior by the division or global leadership team when deployed in a real estate class. "Required" means that all properties in a "class" must implement best practices at some point.

response plans

The plans developed during the "Control" phase for DMAIC and iDMAIC projects to ensure that the gains made can be sustained.

inverted SIXSIGMA

This is a technique MBBs (and BBs) can use in times of financial distress to conduct restructuring talks.

Audit plan

A mechanism for updating processes, procedures and documentation.

rework loop

It is a case in a process when the item or data moving through the process needs to be corrected by returning it to an earlier step in the process.

risk management

Risk management means thinking ahead, spotting potential problems and preparing for things that can go wrong.

Laminate Performance Performance

The cumulative calculation of errors across multiple steps in a process; calculated as the product of the individual effort at each step.

Run Chart (or Time Chart, Trend Chart)

Measurement visualization tool that shows the change of a factor over time; indicates trends, patterns and instances of particular causes of volatility.

SIPOC

A SIPOC is a high-level process map that includes suppliers, inputs, processes, outputs and customers and defines the start and end points of a process.

SEIS-SIGMA

It is a term used to describe process improvement initiatives that use Sigma-based process measures and/or strive to achieve SIXSIGMA level performance.

SIXSIGMA Council Training

A course that enables real estate executives and executives to make value-based decisions by identifying, prioritizing and sizing projects for their Black Belts.

SIXSIGMA tips

It is a leadership group that directs the implementation of Quality or SIXSIGMA within an organization; creates, reviews and supports the progress of quality improvement teams.

Statistical Process Control (SPC)

It is the use of data collection and analysis to monitor processes, identify performance issues, and determine variability/capacity.

sampling

Collection and use of part of all data to draw conclusions (e.g. time of registration process for every 10th guest).

Sampling-Bias

They collect an unrepresentative "piece" of data that leads to inaccurate conclusions.

Scatterplot or Chart

It is the chart used to show the relationship or correlation between two factors or variables.

Reach

Defines the boundaries of the process; It specifically clarifies where the start and end points for improvement lie, defines where and what to measure and analyze, and should be within the project team's sphere of influence.

simple linear regression

The statistical study of the relationship between a single variable X and a single output Y.

solution statement

A clear description of the proposed solution, used to evaluate and select the best solution to implement.

Deviation for a special reason

It is an event that only affects processes under "special" circumstances, i.e. it is not part of the normal day-to-day running of the process.

Stakeholder-Analyse

It identifies all stakeholders affected by a project and their expected and required support for the project. Typical stakeholders are managers, people working on the process under study, other departments, customers, suppliers and the finance department.

standard deviation

The standard deviation is an indicator of the amount of variation or inconsistency in any group of elements or processes.

Standard Operating Procedure (SOP)

A document containing all procedures, work items, scripts for interactions with customers or others, instructions and data collection forms, and an up-to-date list of resources to which reference may be made for clarification of procedures.

Graphic script

It's a visual display that outlines the highlights of a project and its components that lead the team to a solution.

layering

Stratification means dividing data into groups based on key characteristics. The purpose of dividing the data into groups is to identify a pattern that indicates a problem and explains why the frequency of impacts varies by time, place, or conditions.

thread

It is a sub-component of a larger process.

salesperson

It is a person or organization that feeds inputs (products, services or information) into the process.

systematic sampling

Sampling that selects items from the population at a consistent level Subgroups or systematic sampling ensures that the sample represents the process as each period is represented.

team captain

For DMAIC projects, the team leader is usually the black belt. For Quick Hit and iDMAIC projects, this is typically the sponsor or process owner. For large DMAIC projects with more than one BB or MBB, the team leader is the primary contact for the project.

team member

You are an active member of a Six Sigma project team and deeply involved in measuring, analyzing and improving a process.

Toll booth

It is a review session to determine whether previous activities in a project have been completed satisfactorily. Toll audits are typically performed to verify critical decisions made during a project.

Transferteam

Team formed within an object with responsibility for importing a best practice (optional or required), led by a team leader appointed by the object's Six Sigma Council and trained by the object's Black Belt as needed. Transfer teams will use the iDMAIC methodology to import innovation into their properties.

Team leader transfer (process manager/head of department)

Individual selected and owned by the GM SIXSIGMA Council to lead an iDMAIC project based primarily on proximity and authority to make decisions related to the process in question. This individual has primary responsibility for delivering the project, leading the team, and interacting with others to gather the information and understanding needed for success. Often the leader of the transfer team is the department manager or owner of the process that is being improved with best practices. The ability to lead the team and anticipate clear barriers are important qualities for a person in this role.

Transfer team member

Employees selected by the Transfer Team Leader and the Six Sigma Council to participate in the iDMAIC project based on their knowledge of the key aspects of the process, their experience with the current process, their enthusiasm for improvement and their ability to drive change .

transfer project

It's a project that imports a property from another property.

tree diagram

It is a branching diagram used to break down a general goal into increasingly detailed levels of action.

trend chart

See history chart.

value-added activities

These are the activities that are introduced to bring the current process closer to the ideal process.

Value-adding activities

Steps/tasks in a process that allow the work to move forward; They can also be viewed as necessary steps that add no value per se but contribute to the delivery of the product or service. Examples include recruiting new employees, purchasing materials and balancing the books.

Variation

These are the changes or fluctuations that determine how stable or predictable a process can be, or how it can be affected by the environment, people, equipment, methods, measurements and materials.

Customer Voice (VOC)

It is a systematic approach to collect and analyze customer requirements, expectations, satisfaction and dissatisfaction through complaints, surveys, feedback, market research, focus groups and interviews.

WACC

Weighted average cost of capital used to compare the value of 2 or more potential projects. Discount rate used in financial analysis. It represents the average costs that a company needs to finance itself with equity and debt. In 2002 this rate was 12% and was used for all SIXSIGMA projects and sites.

Web-based Event (Mandatory and Optional Best Practices)

It is a web-based kickoff communication from the export team to the transfer team, presenting a well-documented presentation of your best practice project. The event can be synchronous (attending a live event) or asynchronous (reviewing a recorded event).

yield

Total number of units successfully handled by the process steps, usually expressed as a percentage. The yield only indicates how many items were delivered without defects at the end of the process.