Links to external sources have also been provided to support the comprehensiveness of certain definitions.
A succinct statement of a business situation which is used to describe the problem the Six Sigma project is attempting to solve.
A set of activities and material and/or information flow which transforms a set of inputs into outputs for the purpose of producing a product, providing a service, or performing a task.
Process mining uses event logs generated by enterprise systems such as Workday, Planon, or others to rebuild a virtual view of a business process. It helps organizations discover the as-is state of business processes as well as identify new opportunities for optimization and automation.
An approach used by managers and workgroups to ensure that the outputs of their work efforts are:
It is a structured approach to aligning and optimizing how business processes work together to repeatedly and consistently deliver results/value to a customer.
Process owners have responsibility for process performance and resources. They provide support, resources, and functional expertise to Six Sigma projects. They are accountable for implementing developed Six Sigma solutions in their process.
The time it takes one piece to move all the way through a process, from start to finish. Also referred to as throughput time.
A well-defined, documented improvement effort that states a business problem in quantifiable terms and with known expectations.
A written declaration of the purpose and expected result of a project.
We have a Project Charter Template available for project managers to download.
Activity required to correct defects produced by a process.
In its simplest form, robotic process automation (RPA) is the automation of repetitive tasks that humans would normally do. RPA can automate both front and back-office processes, including tasks that happen all the time like filling out forms, transferring data from one system to another or taking notes.
A basic graphical tool that charts a characteristic’s performance over time. Glossary of Lean Six Sigma General Terms
A commonly used measure of process capability that represents the number of short term standard deviations between the center of a process and the closest specification limit. Sometimes referred to as Sigma level or simply Sigma.
Acronym for a visual representation of a process or system (Supplier, Input, Process, Output, Customer).
Six Sigma is a set of management techniques intended to improve business processes by greatly reducing the probability that an error or defect will occur. The term six sigma comes from the bell curve used in statistics, where one sigma symbolizes a single standard deviation from the mean. If the process has six sigmas, three above and three below the mean, the defect rate is classified as “extremely low.”
A quality standard of just 3.4 defects per one million opportunities; 99.9996 percent perfect.
A proven set of analytical tools, project management techniques, reporting methods, and management techniques combined to form a powerful problem-solving and business improvement methodology.
Method to establish performance expectations; acronym stands for Specific, Measureable, Agreed-upon, Realistic, Time-specific.
Illustrates the physical flow of a person, product, or information as it moves through multiple steps in a process. It’s called the Spaghetti Diagram because the documented routes often look like a plate of spaghetti.
Establishing precise procedures for each worker’s activities in a process based on three elements: takt time, work sequence, and standard inventory.
The use of basic graphical and statistical methods for measuring, analyzing, and controlling the variation of a process for the purpose of continuously improving the process. A process is said to be in a state of statistical control when it exhibits only random variation.
An individual or entity responsible for providing an input to a process in the form of resources or information.
The speed at which an area needs to operate during normal working hours in order to meet demand. Takt time is independent of process capability and cycle time.
Takt Time = Regular Available Time/Period (Shift)
Units Produced/Period (Shift)
A target communicates the desired result that is expected after the change is effectively implemented. Action should be taken when results are not on track to meet the target. Targets should be reviewed and refined on an annual basis to drive continuous improvement.
The individual elements and/or subsets of an activity. Normally, tasks relate to how someone or some machine performs a specific assignment.
A management philosophy that concentrates on removing or managing constraints to improve throughput of a process.
All of the actions, both value-creating and non-value-creating, required in bringing a product from concept to development and from order to delivery.
A simple diagram of every step involved in the material and information flows needed to bring a product from order to delivery.
Value-Added Time divided by Production Lead Time.
The time of those elements that actually transform the product in a way that the customer is willing to pay for.
Work system that allows immediate assessment of the current state of operational performance.
Voice of the business; represents the needs of the business and the key stakeholders of the business. It is usually items such as profitability, revenue, growth, market share, etc.
Voice of the business; represents the needs of the business and the key stakeholders of the business. It is usually items such as profitability, revenue, growth, market share, etc.
Voice of the process; represents the performance and capability of a process to achieve both business and customer needs. It is usually expressed in some form of an efficiency and/or effectiveness metric.
Waste represents material, effort, and time that does not add value in the eyes of key stakeholders (customers, employees, investors).
An individual who received white belt training and has a basic understanding of Lean & Six Sigma. White Belts can not only assist with change management within an organization but also participate in local problem solving teams that support projects.
An individual who receives approximately one week of training in problem-solving and process optimization methods. Yellow Belts participate in process management activities, participate on Green and Black Belt projects, and apply concepts to their work areas and their jobs.