Lean Six Sigma Glossary

Used for improving the organisation of the workplace, the name comes from the five steps required to implement and the words (each starting with S) used to describe each step: 

1. Sort
2. Set in order
3. Shine
4. Standardise
5. Sustain

Some add the 6th ‘S’ Safety. Although safety should be part of every step

1) Identify Value

2) Value Stream

3) Flow

4) Pull

5) Perfection

1) Transportation

2) Inventory

3) Motion

4) Waiting

5) Over Production

6) Over Processing

7) Defects

8) Skills (underutilising human talent)

The Eight Disciplines of Problem Solving (8D) is a problem-solving methodology designed to find the root cause of a problem, devise a short-term fix and implement a long-term solution to prevent recurring problems. Developed in the automotive industry.

Forces consensus building; unifies culture around a simple, systematic methodology; also becomes a communication tool that follows a logical narrative and builds over years as organizational learning. A3 = metric nomenclature for a paper size equal to 11”x17” TPOC, VSA, RIE.

A process to organise disparate language info by placing it on cards and grouping the cards that go together in a creative way. “Header” cards are then used to summarise each group of cards.

Agile project management is an iterative (it is done in pieces (sprints), with each sprint building and improving off the lessons from the previous sprint) development methodology that values human communication and feedback, adapting to change, and producing working results. 

A device that calls attention to defects, equipment abnormalities, or other problems, or reports the status and needs of a system typically uses lights – red light for failure mode, amber light to show marginal performance, and green light for normal operation mode.

Used in Policy Deployment, those current year objectives that will allow you to reach your 3-5 year breakthrough objectives.

Described as "intelligent automation" or "automation with a human touch.” If an abnormal situation arises the machine stops and the worker will stop the production line. Prevents the production of defective products, eliminates overproduction and focuses attention on understanding the problem and ensuring that it never recurs.

From Matthew Syed. The development of a “growth mindset” sees failures as an opportunity for improvement rather than a “fixed mindset” which feels threatened by challenges and is deterred by failures.

The place in the value stream that negatively affects throughput; as a resource capacity limitation, a bottleneck will not allow a system to meet the demand of the customer.

A form used to track performance (plan vs actual) on Policy Deployment objectives. Usually reviewed with top management every month.

In Policy Deployment, those objectives are characterized by multi-functional teamwork, significant change in the organization, significant competitive advantage and major stretch for the organization.

The process of selecting strategies to meet an objective at any level and then getting managers and their teams to engage in dialogue to reach an agreement on strategies to achieve their goals.

A problem-solving tool used to establish relationships between effects and multiple causes.

Acronym for Cause and Effect Diagram with the Addition of Cards. CEDAC is a method for involving team members in the problem-solving process.

An approach in which manufacturing work centres (cells) have the total capabilities needed to produce an item or group of similar items; contrasts with setting up work centres based on similar equipment or capabilities, in which case items must move among multiple work centres before they are completed.

Grouping machines or processes that are connected by work sequence in a pattern that supports flow production.

The Japanese term for “Load-Load”. It refers to a production line raised to a level of efficiency that allows the operator to simply load the part and move on to the next operation. No effort is expended on unloading. (Please see Hanadashi).

As used in manufacturing, the time from when the last “good” piece comes off of a machine until the first “good” piece of the next product is made on that machine. Includes warm-up, first piece inspection and adjustments.

Immediate actions to bring process performance that is tracking below expectations back into the proper trend. Requires root cause analysis.

Defined as the total time required for the completion of a job, task, or activity. In other words, cycle time can be defined as the total time taken for the completion of the operation. A cycle time begins when the operation begins and ends with the completion of the operation.

A continuous process that ensures the work is done in the right way and in a timely manner, to achieve business success according to the company’s strategic objectives. A good example is SQDCP. See also KPIs.

Define, Measure, Analyse, Improve, and Control. The DMAIC model comprises five phases and specific tools that are used to characterize and optimise both business and industrial processes. Each project must complete the five phases in chronological order.

A chart that resembles a fish skeleton, with a main spine and branches (bones) drawn at a slant off of the spine; used for quality control in two main ways: 

1. As a cause-and-effect diagram, where the spine denotes an effect and the branches are cause factors. 

2. As a subdivision of quality requirements, where the spine represents a quality objective and the branches describe subsidiary traits or measurements that are important but are not the end in themselves. 

(Sometimes referred to as a Reverse Fishbone) 

The practice of asking "why" five times whenever a problem is encountered; repeated questioning helps identify the root cause of a problem so that effective countermeasures can be developed and implemented.

The progressive achievement of tasks and/or information as it proceeds along the value stream, and flow challenges us to reorganize the Value Stream to be continuous… “one by one, non-stop”.

A logical, efficient, and usually physically self-contained arrangement of supplies, equipment, and personnel to complete a service sequence; a flow cell enables visual management, simple flow, standard work, transparency, and tight connections.

A Japanese word of which the literal translation is "the real place." where the actual services are provided or where the work is done.

Device or means of automatic unloading of the workpiece from one operation or process, providing the proper state for the next workpiece to be loaded. Automatic unloading and orientation for the next process are essential for a “Chaku-Chaku” line.

A Japanese term meaning to acknowledge your own mistake and to pledge improvement. Deep personal reflection.

Production levelling process that attempts to minimize the impact of peaks and valleys in customer demand. It includes level production volume and level production variety.

The House of Quality is a type of diagram or planning matrix that helps to illustrate the relationship that exists between what a customer wants and the ability of a given good or service to fulfil those wants.

Strategic Planning/Strategic Management methodology, developed by Dr Yoji Akao. Also known as Policy Deployment.

A form of automation in which machinery automatically inspects each item after producing it, ceasing production and notifying humans if a defect is detected.

A system of managing production processes that result in line balancing, one-piece flow, and little or no excess material inventory on hand. A strategy that concentrates on making quality products, in the quantity needed, when needed.

A Japanese term meaning “change for the better”. Applied to business organizations, it implies continuing improvement involving everyone.

A rapid improvement project refers to business activities that continuously improve all functions and involve all employees from the CEO to assembly line workers.

A card or sheet used to authorize the production or movement of an item; when fully implemented, kanban (the plural is the same as the singular) operates according to the following rules: 

 1. All production and movement of parts and material takes place only as required by a downstream operation

 2. The specific tool which authorizes production or movement is called a kanban. The word means card or sign, but it can legitimately refer to a container or other authorizing device.

 3. The quantity authorized per kanban is minimal, ideally one. The number of available kanban for an item is determined by the demand rate for the item and the time required to replenish.

A method of tracking or monitoring the progress of existing daily management systems and metrics.

The total time it takes for a process to convert raw material to a finished quality part or from the inception to the end of a service.

Leadership Standard Work is the repetitive pattern of activities that represent the current least wasteful method of planning and controlling normal business processes. LSW is a checklist of leadership activities that are performed on a daily, weekly and monthly basis.

Lean is a business methodology that aims to provide a new way to think about how to organize human activities to deliver more benefits to society and value to individuals while eliminating waste.

Equalizing cycle times (productive capacity, assuming 100% capacity utilization) for relatively small units of the manufacturing process, through proper assignment of workers and machines; ensures smooth production flow.

The time it takes for an individual piece of equipment to complete its functions to produce a quality part independent of the operator’s unloading and loading time.

An MCT map shows the successive process steps, including the steps to make the components (the branches in the map) that come together at the assembly branch. The time blocks have 2 colours: white is used to visualize the waiting times; grey visualizes the time needed to produce the first part. Used heavily in QRM.

A traditional general Japanese term for an activity that is wasteful and doesn't add value or is unproductive. Removing waste is an effective way to increase profitability.

A traditional general Japanese term for unevenness. It is the 'waste of variation' in the production process.

A traditional general Japanese term for overburden, unreasonableness or absurdity. Can be eliminated with the employment of standard work.

Smooth production flow, ideally one piece at a time, characterized by the synchronization (balancing) of production processes and maximum utilization of available time, including overlapping of operations where practical.

Those process steps or activities in a Value Stream that take time, resources or space, but do not transform or shape the product or service to meet the needs of the customer.

Sometimes referred to as ‘Business Value Add’. NNVA are Non-Value-Adding activities that are necessary under the present operating system or equipment. They are likely to be difficult to remove in the short term but may be possible to eliminate in the medium term by changing equipment or processes. Often used to describe regulatory compliance activity that adds no direct customer value but is required to maintain the “license to operate".

The total time it takes an operator to complete one cycle of all the standard work elements in their job.

The standard for measuring manufacturing productivity. It identifies the percentage of manufacturing time that is truly productive. An OEE score of 100% means you are manufacturing only good parts, as fast as possible, with no stop time. That means 100% quality (only good parts), 100% performance (as fast as possible), and 100% availability (no stop time) when compared to the full potential. A world-class facility typically measures around 85% most manufacturers struggle to achieve 65%.

An iterative four-step problem-solving process is typically used in quality control. It is also known as the Deming Cycle, Shewhart Cycle, Deming Wheel, Plan-Do-Study-Act or Plan-Do-Check-Act.

A fundamental idea about reality, frequently unquestioned and difficult to change, that conditions all our thinking about and even our physical perceptions of the world or some aspect of the experience.

A never-ending pursuit of the complete elimination of non-value-adding waste so that all activities along a value stream create value; perfection challenges us to also create compelling quality (“defect free”) while also reducing cost (“lowest cost”).

The condition in which all supplies are within arm’s reach and positioned in the sequence in which they are used to prevent extra reaching, lifting, straining, turning, and twisting.

A Japanese expression meaning “common or simple, mistake-proof”. A method of preventing errors is by putting limits on how an operation can be performed to force the correct completion of the operation.

A one-year plan, reflecting the long-term vision and the 3-5 year strategic planning objectives. A planning/implementation process that focuses on a few, major, long-term, customer-focused breakthrough objectives that are critical to a company’s long-term success. This process links major objectives with specific support plans throughout the organization.

Form used by the team working on a PD objective, detailing specific activities required for success, milestones, responsibilities and due dates. Team members are also listed with objective definitions, meeting dates and management support or owner.

A document used to show relationships between 3 - 5 year objectives, improvement priorities, targets, resources required and benefits to the organization (X-Matrix).

A visual representation of the sequential flow of a process. Used as a tool in problem-solving, this technique makes opportunities for improvement apparent. Common process maps are Value Stream Maps and Swimlane Maps.

Principle the no one upstream function or department should produce a good or service until the customer downstream asks for it.

A manufacturing planning system based on communication of actual real-time needs from downstream operations – ultimately final assembly or the equivalent – as opposed to a push system which schedules upstream operations according to theoretical downstream results based on a plan which may not be current.

QRM is rooted in the concept of Time-Based Competition (TBC) pioneered by Japanese enterprises in the 1980s. Time-Based Competition is a broad-based competitive strategy emphasizing time as the major factor for achieving and maintaining a sustainable competitive advantage. It seeks to compress the time required to propose, develop, manufacture, market and deliver products. QRM advocates a companywide focus on short lead times that include quick response to demand for existing products as well as new product and design changes. This combination has led to the implementation of QRM in many high-mix, low-volume companies.

A 3/4/5 day process utilizing a team-based methodology to apply the lean tools for seeing waste and making immediate improvements.

The process of discovering the root causes of problems to identify appropriate solutions. RCA assumes that it is much more effective to systematically prevent and solve underlying issues rather than just treating ad hoc symptoms and putting out fires. Root cause analysis can be performed with a collection of principles, techniques, and methodologies that can all be leveraged to identify the root causes of an event or trend. Looking beyond superficial cause and effect, RCA can show where processes or systems failed or caused an issue in the first place.

Method of increasing the amount of productive time available for a piece of machinery by minimizing the time needed to change from one model to another. This greatly increases the flexibility of the operation and allows it to respond more quickly to changes in demand. i.e Changing a die on a forming or stamping machine in a minute or less.

Six Sigma is a set of techniques and tools for process improvement. Originally developed by Motorola in 1986, it seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimising variability in manufacturing and business processes. It uses a combination of statistical methods and quality management tools, along with a special infrastructure of people within the organisation (such as "Black Belts" and "Green Belts") who are experts in these methods.

Key Elements:

DMAIC: The five-phase methodology of Define, Measure, Analyse, Improve, and Control, used for improving existing processes.

DMADV: The five-phase methodology of Define, Measure, Analyse, Design, and Verify, used for creating new process designs.

Statistical Analysis: Uses statistical techniques for identifying, analysing, and solving quality problems.

Infrastructure: Six Sigma relies on trained professionals, like Black Belts and Green Belts, to lead and implement projects.

Sigma Levels and Defect Rates:

One Sigma: 690,000 Defects Per Million Opportunities (DPMO), 30.9% efficiency.

Two Sigma: 308,537 DPMO, 69.1% efficiency.

Three Sigma: 66,807 DPMO, 93.3% efficiency.

Four Sigma: 6,210 DPMO, 99.38% efficiency.

Five Sigma: 233 DPMO, 99.977% efficiency.

Six Sigma: 3.4 DPMO, 99.99966% efficiency.

Uses:

Quality Improvement: Primarily used to improve quality by reducing defects and variations in processes.

Cost Reduction: By improving process efficiency and quality, Six Sigma can lead to significant cost savings.

Customer Satisfaction: Improved quality and consistency lead to higher customer satisfaction.

Process Standardisation: Helps in standardising processes across an organisation.

Six Sigma's emphasis on quality control and process improvement makes it applicable in manufacturing, services, healthcare, finance, and other sectors where process optimisation is crucial.

An agreed-upon set of work procedures that effectively combines people, materials, and machines to maintain quality, efficiency, safety, and predictability; establishes a routine for repetitive tasks, provides a basis for improvement by defining the normal and highlighting the abnormal, and it prohibits backsliding.

The minimum amount of material or a given product must be in process at any time to insure the proper flow of the operation.

The pillars of a successful business, are used in conjunction with KPIs. (Safety, Quality, Delivery, Cost, People) Refers to an SQDCP board placed in a process area, to quickly convey how the process is performing against these 5 categories.

For example, Safety would measure whether the safety measures or metrics were achieved each day, and marked on the board.

Daily metrics can be established for each SQDCP category, and if the teams meet the goals/metrics, then the category is marked as green for the day, or red if they did not meet it.

The rate at which a product must be turned out to satisfy market demand. It is determined by dividing the available production time by the rate of customer demand. Takt time is the beat of the process.

Time-Based Competition is a demonstration of the power of time management, and how companies can use it to gain a competitive advantage. Please see QRM.

Aims at maximizing equipment effectiveness throughout the entire life of the equipment. It involves such basic elements as a routine maintenance system, education in basic housekeeping, problem-solving skills, and activities to achieve zero breakdowns.

An integrated socio-technical system, developed by Toyota comprises its management philosophy and practices. The TPS is a management system that organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. The system is a major precursor of the more generic "lean manufacturing".

Transformation Plan of Care is the plan for transforming a business; documented using an A3, this is the executive-level road map for a defined period.

When a product or service has been perceived or appraised to fulfil a need or desire, as defined by the customer, the product or service may be said to have value or worth. Components of value may include quality, utility, functionality, capacity, aesthetics, timeliness or availability, price, etc. i.e. changes in the fit, form or function and the customer is willing to pay for it.

All the activities (both value-added and non-value-added) required within an organisation to deliver a specific service; “everything that goes into” creating and delivering the “value” to the end customer.

The identification of all the specific activities occurring along the value stream, represented pictorially in a value stream map; see waste, unevenness, and overburden, size the opportunity, share a vision, communicate visually, permission to change, predict results

A value stream map is a visual tool used in Lean management to analyse and design the flow of materials and information required to bring a product or service to a customer. This tool helps identify waste within and between processes, and it provides a structured visualisation of the key steps and data involved in material and information flows.

Key Elements:

Process Steps: Represents the sequence of steps or activities involved in the production or service delivery process. Each step is usually depicted as a box.

Material Flow: Shows the movement of materials through the process, often indicated with arrows. This includes raw materials, work-in-progress (WIP), and finished goods.

Information Flow: Illustrates the flow of information that enables the process steps, such as order information, production schedules, and instructions. This is also represented with arrows, often dashed or distinct from material flow arrows.

Timeline: A horizontal line or bar at the bottom that indicates the time taken for each process step and the total lead time, helping to identify delays or bottlenecks.

Metrics: Quantitative data associated with each process step, such as cycle time, wait time, inventory levels, and defect rates. These metrics are crucial for identifying areas of waste and for measuring improvements.

Uses:

Identifying Waste: Helps in pinpointing non-value-added activities, inefficiencies, and bottlenecks in the process.

Process Improvement: Facilitates Lean initiatives like streamlining workflows, reducing cycle time, and improving overall efficiency.

Strategic Planning: Assists in decision-making for process redesign, resource allocation, and capacity planning.

Value stream mapping is widely used in manufacturing, but it is also applicable in service industries, healthcare, software development, and other areas where process efficiency is critical.

The presentation of a wide variety of information in the workplace. Such information may pertain to jobs themselves, to the business as a whole, and to how work teams are progressing on a project. Kanban cards are examples of Visual Management, as are storage bins with sample parts displayed, tool shadow boards, storyboards, etc. The presentation of a wide variety of information in the workplace. Such information may pertain to jobs themselves, to the business as a whole, and to how work teams are progressing on a project. Kanban cards are examples of Visual Management, as are storage bins with sample parts displayed, tool shadow boards, storyboards, etc.

The desires and expectations of the customer, are of primary importance in the development of new products, services, and the daily conduct of the business.

Please see ‘Muda’. Any operation or activity that takes time and resources but does not add value to the product or service sold to the customer.

Someone who moves quickly and efficiently from place to place to collect and deliver material/supplies to the primary members of a flow cell; move as much of the non-value added work away from the primary member as possible and ‘centralize’ it on the water spider.

Refers simply to any gaps in a customer’s needs, which includes product features and uses, audiences, and any other differentiators. A place where a company might have room to manoeuvre in a crowded playing field.

Japanese for “across everywhere”. Knowledge is shared and plant-related activities and countermeasures may be communicated plant-wide and with other branches of the company and its affiliates.