LSS Cheat Sheets

LEAN SIX SIGMA CHEAT
SHEETS
(includes concepts, formulas, references, and links)

YELLOW BELT CHEAT SHEETS
GREEN BELT CHEAT SHEETS
BLACK BELT CHEAT SHEETS
Prepared by Keith Schellenberger
For Friends of Lean Six Sigma Services
pdated !ovember, "#$$
%mail& Keith'Schellenberger(LeanSixSigmaServices'net
Phone& ()$))*+,-).,#
Skype& keith'/'schellenberger
/ebsite& http&00///'LeanSixSigmaServices'net
Linked 1n&http&00///'linkedin'com0in0keithschellenberger
Lean Six Sigma Services
2 "##) by Lean Six Sigma Services
Lean Six Sigma 3heat Sheet 2 "##) by Lean Six Sigma Services
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
$$" !orthcote 5r
3ary, !3, ",.$)
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
Keith'Schellenberger(LeanSixSigmaServices'net
http& ///'leansixsigmaservices'net
()$))*+,-).,#
"
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
TABLE OF CONTENTS
* Yellow Belt Cheat Sheet page
* Ba!"# Co$#ept! page
6 7ean page ,
6 7edian page ,
6 7ode page ,
6 8ariance page ,
6 Standard 5eviation page ,
6 9ange page ,
* Co$%"&e$#e I$te'(al! page
* Co))o$ Cha't! page *
6 Pareto 3hart page +
6 :ar 3hart page +
6 Pie 3hart page +
6 Line 3hart page )
* Bo+ ,lot! page -
* Rolle& Th'o.ghp.t Y"el& page /0
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
*
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
* G'ee$ Belt Cheat Sheet page //
* Lea$ Co$#ept! page //
6 8alue Stream 7apping (8S7) page $$
6 ;akt ;ime page $$
6 :atch Si<e page $$
6 S7%5 (Single 7inute %xchange of 5ie) = Set-up time pg $$
6 ;heory of 3onstraints page $$
6 ;P7 (;otal Productive 7aintenance) page $"
6 >%% (>verall %?uipment %ffectiveness) page $"
* Sa)pl"$g page /1
6 Sample Si<e 3alculator page $"
6 Single Lot Sampling page $*
6 Lot @cceptance Sampling Plan (L@SP) page $*
6 5ual Lot Sampling page $*
6 3ontinuous Sampling page $*
6 Skip Lot Sampling page $*
6 Stratified Sampling page $*
6 9andom Sampling page $*
* MSA 2Mea!.'e)e$t S3!te) A$al3!"!4 page /5
6 @!>8@ Aage (Aauge) 9B9 page $*
6 9epeatability page $C
6 9eproducibility page $C
6 Kappa 7S@ page $C
* 6ata A$al3!"! page /7
6 Statistics %rror ;ypes page $C
6 ;ype $, @lpha or D errors page $C
6 ;ype ", :eta or E errors page $C
6 Fypothesis ;esting page $.
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
C
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
6 $-sample t-test page $.
6 "-sample t-test page $.
6 Paired t-test page $.
6 @!>8@ page $., ""
6 Pearson 3orrelation 3oefficient (P733) page $.
6 3entral Limit ;heorem page $G
6 F7%@ (Failure 7ode and %ffects @nalysis) page $,
* ,'o#e!! Co$t'ol page /
6 @ttribute vs' 8ariable 5ata page $,
6 3ontrol 3harts page $,
6 Hm9 or 1 page $,
6 m9 page $,
6 Hbar B 9 page $,
6Hbar B S page $+
6 3 page $+
6 page $+
6 nP page $+
6 P page $+
6 3S7 page $)
6 %I7@ page $)
6 >ut of 3ontrol 3onditions page $)
6 8>3 (8oice >f the 3ustomer) page "#
6 3ontrol Limits page "#
6 Process 3apability page "#
6 3p page "#
6 3pk page "#
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
.
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
6 Pp page "#
6 Ppk page "$
6 3ontrol Plan page "$
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
G
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
* Bla#8 Belt Cheat Sheet page 11
* ANO9A page 11
* 6OE 26e!"g$ O% E+pe'")e$t!4 page 11
6 >ne Factor @t a ;ime (>F@;) page ""
6 3omparison page ""
6 9andomi<ation page ""
6 9eplication page ""
6 :locking page ""
6 >rthogonality page ""
6 Factorial experiments page "*
6 Step-by-step procedure page "*
* Reg'e!!"o$ page 15
6 Linear 9egression page "*
6 !on-Linear 9egression page "*
6 >LS (>rdinary Least S?uares) page "C
* No$:$o')al &"!t'";.t"o$! page 17
6 /ith respect to (/rt) 3onfidence 1ntervals page "C
6 /rt Aage 9B9 page "C
6 /rt ;-test page "C
6 /rt @!>8@ page "C
6 /rt Pearson 3orrelation 3oefficient page ".
6 /rt 3entral Limit ;heorem page ".
6 /rt 3ontrol 3harts page ".
6 /rt 3ontrol Limits page ".
6 /rt Process 3apability page ".
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
,
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
6 /rt 3ontrol Plans page ".
6 /rt 5esign >f %xperiments page ".
6 /rt 9egression page ".
* 9a'"a$#e I$%lat"o$ %a#to' page 1<
* L"%e te!t"$g = 'el"a;"l"t3 page 1<
6 @JL (@cceptable Juality Limit) page "G
6 @>JL (@verage >utgoing Juality Limit) page "G
* >F6 2>.al"t3 F.$#t"o$ 6eplo3)e$t4 page 1<
* 3ritical to Juality 3haracteristics (3;J) page ",
* Fouse of Juality (F>J) page ",
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
+
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
YELLOW BELT STATISTICS CHEAT SHEET
1ncludes formulas& /hat they are, /hen to use them, references
Ba!"# Co$#ept!?
Mea$ 2a(e'age4? add all numbers in the list together and divide by the number of items in
the list' ;he formula&
Me&"a$ 2)"&&le4? order the numbers and take the number in the middle' ;he formula&
Mo&e? ;he number listed most' ;he most fre?uently observed value'
9a'"a$#e (average distance from the average s?uared)&
o 5etermine ho/ far each observation is from the average' S?uare it' @dd all
s?uared observations together' 5ivide by observations -$'
o !ote this is s?uared as a /ay to get absolute valueK other/ise the value /ould be
<ero'
o Formula&
Sta$&a'& 6e("at"o$ (average distance from the average)&
o S?uare root of the variance
o ;he empirical rule for normal distributions&
G+L are /ithin $ standard deviation of the mean
).L are /ithin " standard deviations of the mean
))',L are /ithin * standard deviations of the mean
o Formula&
Ra$ge? ;he difference from the largest to the smallest value in a set'
o Formula& 7ax - 7in
M Co$%"&e$#e I$te'(al! (Lean Six Sigma Pocket ;oolbook p' $G#K ///'sigmapedia'com0term'cfmN
/ord4idO$+#K http&00people'hofstra'edu0Stefan4/aner09ealIorld0finitetopic$0confint'html )& %stimated range of
values /hich includes the true value /ith stated probability'
o ;his is driven from the standard deviation of the population' 5epending on the sample si<e
the sample standard deviation /ill be closer to the population standard deviation (see 3entral
Limit ;heorem under Areen :elt for more details)'
o For sample si<es greater than *# /e can estimate the ).L 3onfidence
1nterval for the Population 7ean O
,
_
+
n
s
x
n
s
x 96 . 1 , 96 . 1
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
)
( )
$ n
x x
s
n
$ i
"
"
i
n
x
x
n
$ i
i
"
s s
'
'
,
_
+
,
_
,
_
+
@ A
1
A
e(e$ "! $ "% (al.e!A o'&e'e& )"&&le two the o% a(e'age the
o&& "! $ "% (al.eA o'&e'e& )"&&le
B
/
1 1
1
/
even n
x x
odd n x
x
n n
n
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
%xample&
o 1f /e can be ).L confident the average 1J in the /orld is bet/een ). B $$# then the
confidence interval for the average 1J in the /orld is bet/een ). B $$# /ith ).L confidence'
Co))o$ Cha't!
o ,a'eto Cha't (http&00en'/ikipedia'org0/iki0Pareto4chart )
@ Pareto chart is a bar chart (see belo/) ordered from category /ith the highest
value to category /ith the lo/est value' 1t also sho/s cumulative values in a line'
1t is commonly used to sho/ /hich areas to focus on to generate the most
improvement in a Lean Six Sigma proPect' @n example&
o Ba' Cha't (http&00en'/ikipedia'org0/iki0:ar4chart )
@ ;a' #ha't or ;a' g'aph is a chart /ith rectangular bars /ith lengths proportional
to the values that they represent&
1t is often used to understand relationships bet/een certain items, to get an
understanding of the relative value of the categories'
o ,"e Cha't (http&00en'/ikipedia'org0/iki0Pie4chart )
@ p"e #ha't (or a #"'#le g'aph) is a circular chart divided into sectors, illustrating
relative magnitudes or fre?uencies' 1n a pie chart, the arc length of each sector (and
conse?uently its central angle and area), is proportional to the ?uantity it represents'
;ogether, the sectors create a full disk'
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
$#
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
1t is often used to understand relationships bet/een certain items, to get an
understanding of the relative value of the categories&
o L"$e Cha't (http&00en'/ikipedia'org0/iki0Line4chart )
@ l"$e #ha't or l"$e g'aph is a type of graph created by connecting a series of data
points together /ith a line'
1t is the basic graph /e often see sho/ing stock values&
M Bo+ ,lot! (;he Lean Six Sigma Pocket ;oolbook p'$$#, http&00///'coventry'ac'uk0ec0Qnhunt0boxplot'htm)&
:ox plots (also kno/ as :ox B Ihisker diagrams) graphically sho/ distributions /ith&
o ;he median
o @ box around the middle .#L of the range of values,
o ;ails sho/ing the bottom ".L of values, and the top ".L of values
%xample&

444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
$$
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
M Rolle& Th'o.ghp.t Y"el&? ;he number of good units produced divided by the number of total units going
into the process' (http&00///'isixsigma'com0dictionary0First4;ime4Rield4-4F;R-$G,'htm )
@lgorithm&
o 3alculate the yield (number out of step0number into step) of each step'
o 7ultiply these together'
%xample&
o $## units enter @K )# good units are produced' ;he yield for process @ is )#0$## O ')
)# units go into : and +# units leave' ;he yield for process : is +#0)# O '+)
+# units go into 3 and ,. leave' ;he yield for 3 is ,.0+# O ')C
,. units got into 5 and ,# leave' ;he yield for 5 is ,#0,. O ')*
;he 9olled ;hroughput Rield is e?ual to ')6'+)6')C6')* O ',#'
o !ote& First Pass Rield is the yield for any one step in the process, so the First Pass
yield for step 5, the last step in the process, is ')*
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
$"
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
GREEN BELT STATISTICS CHEAT SHEET
Lea$ Co$#ept!
C 9SM 9al.e St'ea) Mapp"$g (http&00en'/ikipedia'org0/iki08alue4stream4mapping )
8alue Stream 7apping is a tool used to understand a process and ho/ much value-added
and non-value added time is spent on and bet/een each activity'
;he 8S7 /ill include a data box of key statistics, such as&
C TAKT T")e (http&00en'/ikipedia'org0/iki0;akt4time )
>ften referred to as the rate of customer demand'
1t is ho/ often a product needs to be completed to meet customer demand'
Formula O %ffective Iorking ;ime 0 @verage 3ustomer 5emand (for that time period)
C Bat#h S"De (http&00///'shmula'com0",#0batch-and-?ueue-or-single-piece-flo/ )
;o keep this explanation lean 1Sll Pust /rite that moving to batch si<es of one generally
reduces cycle time and improves throughput'
C SME6 S"$ge M"$.te E+#ha$ge o% 6"e
SME6 stands for Single 7inute %xchange of 5ie, and covers the techni?ues for obtaining a
changeover time of less than $# minutes (a single digit number of minutes)'
:asically, the S7%5 methodology consists of < !tep!&
o observe the current changeover process
o identify internal and external activities
o convert activities from internal to external setup
o increase efficiency of the remaining internal activities
o optimi<e the Startup time
o increase efficiency of external activities
C Theo'3 o% Co$!t'a"$t! (http&00en'/ikipedia'org0/iki0;heory4of4constraints )
;he underlying assumption of ;heory of 3onstraints is that organi<ations can be measured
and controlled by variations on three measures& ;hroughput, >perating %xpense, and
1nventory' ;hroughput is money (or goal units) generated through sales' >perating %xpense
is money that goes into the system to ensure its operation on an ongoing basis' 1nventory is
money the system invests in order to sell its goods and services'
;heory of 3onstraints is based on the premise that the rate of goal achievement is limited by
at least one constraining process' >nly by increasing flo/ through the constraint can overall
throughput be increased'

@ssuming the goal of the organi<ation has been articulated (e'g',
T7ake money no/ and in the futureT) the steps are&
$' 15%!;1FR the constraint (the resource0policy that prevents the organi<ation from
obtaining more of the goal)
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
6ata Bo+ C.''e$t State F.t.'e State E I)p'o(e)e$t
8alue @dd ;ime
!on 8alue @dd ;ime
Lead ;ime
People
Systems
System ;ouches
1nventory
$*
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
"' 5ecide ho/ to %HPL>1; the constraint (make sure the constraintUs time is not /asted
doing things that it should not do)
*' S:>951!@;% all other processes to above decision (align the /hole
system0organi<ation to support the decision made above)
C' %L%8@;% the constraint (if re?uired0possible, permanently increase capacity of the
constraintK Tbuy moreT)
.' 1f, as a result of these steps, the constraint has moved, return to Step $' 5onUt let
inertia become the constraint'
C T,M Total ,'o&.#t"(e Ma"$te$a$#e (http&00en'/ikipedia'org0/iki0;otal4Productive47aintenance )
;P7 is a program for planning and achieving minimal machine do/ntime
%?uipment and tools are literally put on TproactiveT maintenance schedules to keep them running
efficiently and /ith greatly reduced do/ntime
7achine operators take far greater responsibility for their machine upkeep
7aintenance technicians are liberated from mundane, routine maintenance, enabling them to
focus on urgent repairs and proactive maintenance activities
@ solid ;P7 program allo/s you to plan your do/ntime and keep breakdo/ns to a minimum
Iithout a strong ;P7 program, becoming truly Lean /ould be difficult or impossible in an
environment heavily dependent on machinery
:uy-in at the shop floor level is generally ?uite high as ;P7 is an exciting undertaking
@ robust ;P7 system consists of&
o @utonomous 7aintenance
o Focused 1mprovement
o %ducation and ;raining
o Planned 7aintenance
o Juality 7aintenance
o %arly 7anagement and 1nitial Flo/ 3ontrol
o Safety, Fygiene and Pollution 3ontrol
o @dministrative and >ffice ;P7
;he metric used in ;otal Productive 7aintenance environments is called OEE or O(e'all
EF."p)e$t E%%e#t"(e$e!!
o >>% is measured as a percentage
o >>% O @vailability 6 Performance 6 Juality
@vailability O L of scheduled production e?uipment is available for production
Performance O L number of parts produced out of best kno/n production rate
Juality O L of good sellable parts out of total parts produced
Sa)pl"$g
C Sa)pl"$g (http&00///'statpac'com0surveys0sampling'htm )
Sa)ple S"De Cal#.lato' (http&00///'surveysystem'com0sscalc'htm ,
http&00edis'ifas'ufl'edu0P5##G )
o ;o determine ho/ large a sample you need to come to a conclusion about a
population at a given confidence level'
o Formula for creating a sample si<e to test a proportion&
no O VW
"
p?X0Ve
"
X
no O re?uired sample si<e
W O value from the W table (found on-line or in stats books) for
confidence level desired
p O estimated proportion of population that has the attribute /e are
testing for
? O $-p
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
$C
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
e O precision Vie& if /e /ant our proportion to be kno/n /ithin $#L
then set YeS at '#. and if /e set the confidence interval at ).L and
the sample gives a proportion of C*L, the true value at ).L
confidence is bet/een *+L and C+LX
o Formula for creating a sample si<e to test a mean&
no O VW
"
Z
"
X0Ve
"
X
no O re?uired sample si<e
W O value from the W table (found on-line or in stats books) for
confidence level desired
Z O variance of the attribute in the population
e O precision in the same unit of measure as the variance
S"$gle lot Sa)pl"$g (http&00///'itl'nist'gov0div+)+0handbook0pmc0section"0pmc""'htm )
o Single lot sampling is /hen your sample comes from a single lot' 1t is often used in
manufacturing /hen output from a single lot is sampled for testing'
o ;his may be used as a Lot A##epta$#e Sa)pl"$g ,la$ 2LAS,4 to determine
/hether or not to accept the lot&
S"$gle !a)pl"$g pla$!? >ne sample of items is selected at random from a
lot and the disposition of the lot is determined from the resulting information'
;hese plans are usually denoted as (n,c) plans for a sample si<e n, /here
the lot is rePected if there are more than c defectives' These are the most
common (and easiest) plans to use although not the most efficient in terms
of average number of samples needed.
6.al lot Sa)pl"$g
o 5ual lot sampling is /hen your sample comes from " different but similar lots' 1t is
often used as part of an 7S@ or as part of hypothesis testing to determine if there
are differences in the lots'
Co$t"$.o.! Sa)pl"$g (http&00///'s?conline'com0csp$4enter'phpC )
o 3ontinuous sampling is used for the inspection of products that are not in batches'
;he inspection is done on the production line itself, and each inspected item is
tagged conforming or non-conforming' ;his procedure can also be employed to a
se?uence of batches, rather than to a se?uence of items (kno/n as S8"p Lot
Sa)pl"$g)'
St'at"%"e& Sa)pl"$g (http&00///'coventry'ac'uk0ec0Qnhunt0meths0strati'html ,
http&00///'ans/ers'com0topic0stratified-sampling-$ )
o Stratified Sampling is /hen the population is dived into non-overlapping subgroups
or strata and a random sample is taken from each subgroup' 1t is often used in
hypothesis testing to determine differences in subgroups'
Ra$&o) Sa)pl"$g (http&00///'stats'gla'ac'uk0steps0glossary0sampling'html )
o Random sampling is a sampling technique where we select a group of subjects (a
sample) for study from a larger group (a population). Each individual is chosen
entirely by chance and each member of the population has a known, but possibly
non-equal, chance of being included in the sample.
MSA
M MSA Mea!.'e)e$t S3!te) A$al3!"! (http&00en'/ikipedia'org0/iki07easurement4Systems4@nalysis )
@ Mea!.'e)e$t S3!te) A$al3!"!, abbreviated MSA, is a specially designed experiment
that seeks to identify the components of variation in the measurement'
Since analysis of data is key to lean six sigma ensuring your data is accurate is critical'
;hatSs /hat 7S@ does = it tests the measurements used to collect your data'
3ommon tools and techni?ues of 7easurement Systems @nalysis include& calibration
studies, fixed effect @!>8@, components of variance, @ttribute Aage Study, Aage 9B9,
ANO9A Gage R=R, 5estructive ;esting @nalysis and others' ;he tool selected is usually
determined by characteristics of the measurement system itself'
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
$.
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
o Aage 9 B 9 (http&00en'/ikipedia'org0/iki0@!>8@4Aage49L"G9 ,
http&00///'sixsigmaspc'com0dictionary09and9-repeatability-reproducibility'html )
@!>8@ Aauge 9B9 measures the amount of variability induced in
measurements that comes from the measurement system itself and
compares it to the total variability observed to determine the viability of the
measurement system'
;here are t/o important aspects on a Aauge 9B9&
Repeata;"l"t3, 9epeatability is the variation in measurements taken
by a single person or instrument on the same item and under the
same conditions'
Rep'o&.#";"l"t3, the variability induced by the operators' 1t is the
variation induced /hen different operators (or different laboratories)
measure the same part'
Fo').la! 2th"! "! ;e!t &o$e .!"$g a tool !.#h a! M"$"ta; o' GM,4?
yiPk O [\] Di ] EP ] DEiP ] ^iPk
o RiPk O observation k /ith part iB operator P
o [ O population mean
o Di O adPustment for part i
o EP O adPustment for operator P
o DEiP O adPustment for part i operator P interaction
o ^iPk O observation random YerrorS
Z
"
y O Z
"
i ] Z
"
P ] Z
"
iP ] Z
"
error
o Z
"
y O 8ariance of observation y
o Z
"
i O 8ariance due to part i
o Z
"
P O 8ariance due to operator P
o Z
"
iP O 8ariance due to part 1 operator P interaction
o Z
"
error O 8ariance of that observation due to random YerrorS
;hese formulas are used in the @!>8@ Aage 9 B9 to determine
repeatability B reproducibility'
C Kappa MSA
7S@ analysis for discrete or attribute data'
o Kappa (K) is defined as the proportion of agreement bet/een raters after agreement
by chance has been removed'
o K O VPobserved = P chanceX0V$ = PchanceX
Pobserved O proportion of units classified in /hich the raters agreed
Pchance O proportion of units for /hich one /ould expect agreement by
chance
o Aenerally a K _ ', indicates measurement system needs improvement
o K ` ') are considered excellent
6ata A$al3!"!
M Stat"!t"#! E''o' T3pe! (http&00en'/ikipedia'org0/iki0;ype414errora;ype414error )
T3pe /A Alpha o' H e''o'!
o T3pe I e''o', also kno/n as an Te''o' o% the %"'!t 8"$&T, an H e''o', or a T%al!e
po!"t"(eT& the error of rePecting a null hypothesis /hen it is actually true' Plainly
speaking, it occurs /hen /e are observing a difference /hen in truth there is none'
@n example of this /ould be if a test sho/s that a /oman is pregnant /hen in reality
she is not' ;ype 1 error can be vie/ed as the error of excessive credulity'
T3pe 1A Beta o' I e''o'!
o T3pe II e''o', also kno/n as an Te''o' o% the !e#o$& 8"$&T, a I e''o', or a T%al!e
$egat"(eT& the error of failing to rePect a null hypothesis /hen it is in fact not true' 1n
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
$G
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
other /ords, this is the error of failing to observe a difference /hen in truth there is
one' @n example of this /ould be if a test sho/s that a /oman is not pregnant /hen
in reality she is' ;ype 11 error can be vie/ed as the error of excessive skepticism'
M H3pothe!"! Te!t"$g (;he Lean Six Sigma Pocket ;oolbook p $.GK ;he Six Sigma 7emory bogger 11 p $C")
Ihen to use /hat test& (;he Six Sigma 7emory bogger 11 p $CC)
1f comparing a group to a specific value use a /:!a)ple t:te!t (;he Lean Six Sigma Pocket
;oolbook p $G")
o ;ells us if a statistical parameter (average, standard deviation, etc') is different from
a value of interest'
o Fypothesis takes the form Fo& c O a target or kno/n value
o ;his is best calculated using a template or soft/are package' 1f needed the formula
can be found in the reference'
1f comparing " independent group averages use a 1:!a)ple t:te!t (;he Lean Six Sigma
Pocket ;oolbook p $G*)
o sed to determine if the means of " samples are the same'
o Fypothesis takes the form Fo& c$ O c"
1f comparing " group averages /ith matched data use ,a"'e& t:te!t
(http&00///'ruf'rice'edu0Qbioslabs0tools0stats0pairedttest'html )
o ;he number of points in each data set must be the same, and they must be
organi<ed in pairs, in /hich there is a definite relationship bet/een each pair of data
points
o 1f the data /ere taken as random samples, you must use the independent test even
if the number of data points in each set is the same
o %ven if data are related in pairs, sometimes the paired t is still inappropriate
o FereUs a simple rule to determine if the paired t must not be used - if a given data
point in group one could be paired /ith any data point in group t/o, you cannot use
a paired t test
o Fypothesis takes the form Fo& c$ O c"
1f comparing multiple groups use ANO9A (;he Lean Six Sigma Pocket ;oolbook p $,*)
o Fypothesis takes the form Fo& c$ O c" O c* O d
o See :lack :elt section
;he smaller the p-value the more likely the groups are different'
C ,ea'!o$ Co''elat"o$ Co:e%%"#"e$t (http&00en'/ikipedia'org0/iki0Pearson4product-
moment4correlation4coefficient )
1n statistics, the ,ea'!o$ p'o&.#t:)o)e$t #o''elat"o$ #oe%%"#"e$t (sometimes referred to
as the ,MCC, and typically denoted by r) is a measure of the correlation (linear
dependence) bet/een t/o variables X and Y, giving a value bet/een ]$ and e$ inclusive' 1t
is /idely used in the sciences as a measure of the strength of linear dependence bet/een
t/o variables'
9emember Pearson measures correlation not causation'
@ value of $ implies that a linear e?uation describes the relationship bet/een X and Y
perfectly, /ith all data points lying on a line for /hich Y increases as X increases' @ value of
e$ implies that all data points lie on a line for /hich R decreases as H increases' @ value of
# implies that there is no linear relationship bet/een the variables'
;he statistic is defined as the sum of the products of the standard scores of the t/o
measures divided by the degrees of freedom

:ased on a sample of paired data (Hi, Ri), the
sample Pearson correlation coefficient can be calculated as&
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
$,
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
r O V$0(n-$)Xf g(Hi = H(avg))0(Sx)hg(Ri-R(avg))0(Sy)h
/here
n O sample si<e
Hi O the value of observation 1 in the H plane
H(avg) O the average H value
Sx O the standard deviation of H
Ri O the value of observation i in the R plane
R(avg) O the average R value
Sy O the standard deviation of R
M Ce$t'al L")"t Theo'e) (http&00en'/ikipedia'org0/iki03entral4limit4theorem )
1n probability theory, the #e$t'al l")"t theo'e) (CLT) states conditions under /hich the sum
of a sufficiently large number of independent random variables, each /ith finite mean and
variance, /ill be approximately normally distributed'
o Let H$, H", H*, ''', Hn be a se?uence of n independent and identically distributed (i'i'd)
random variables each having finite values of expectation c and variance Z
"
` #'
;he central limit theorem states that as the sample si<e n increases,
g$h

g"h
the
distribution of the sample average of these random variables approaches the normal
distribution /ith a mean c and variance Z
"
0 n irrespective of the shape of the
original distribution'
:y using the central limit theorem /e can apply tools that re?uire a normal distribution even
/hen the distribution of the population is non-normal' Fo/ever, be careful /hen interpreting
results if you use the 3L; to analy<e averages rather than samples from the direct
population' 9emember your analysis is based on averages /hich can be dangerous' 1n
many cases itSs safer to find a tool that doesnSt re?uire normally distributed data /hen
analy<ing non-normal data'
@pplying 3L; to data analysis&
o ;ake $# data points from the distribution B average them' ;hen take ") other
samples of $# data points averaged' ;hen use these *# data averaged data points
to do your analysis' ;his converts your data from its original distribution to a normal
distribution'
o @s long as n (sample si<e) is large enough, the sampling distribution /ill be normal
and the mean /ill be representative of the population mean ['
o No )atte' what the pa'e$t loo8! l"8e the #h"l& w"ll loo8 'ea!o$a;l3 $o')al ;3
50J
o Fo').la!?
Sampling distribution for the mean has
n
SD

For variables data, applying the ).L rule /e expect [ to lie in the interval&
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
$+
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
).L 3onfidence 1nterval for the Population 7ean O
,
_
+
n
s
x
n
s
x 96 . 1 , 96 . 1
Sample si<e& h (maximum error allo/ed) O
n
s
2
1
1
1
1
,
_
2
2
h
s
n
@ttribute data&
).L 3onfidence 1nterval for the Population Proportion O
( ) ( )
n
p p
p
n
p p
p

+
1
2 ,
1
2
Sample si<e&
( )
1
1
1
2
1 4
h
p p
n
C FMEA Fa"l.'e Mo&e a$& E%%e#t! A$al3!"!
(http&00en'/ikipedia'org0/iki0Failure4mode4and4effects4analysis )
;his tool helps determine /here to focus improvement efforts by analy<ing severity of
failures, probability of occurrence of an error, and likelihood of detection of an error'
@n 9P! (9isk Priority !umber) is computed by multiplying these factors together'
Processes0Steps /ith the highest 9P! should be addressed first'
,'o#e!! Co$t'ol
C Att'";.te (!@ 9a'"a;le 6ata (:lack :elt memory Pogger p *C, Areen :elt memory Pogger p,+,
http&00///'sixsigmaspc'com0dictionary0discreteattributedata'html )
5ifferent ;ools are best able to handle different types of date (for example control charts)'
For six sigma data analysis 5iscrete or @ttribute data is considered the same thing' 5iscrete
data is any data not ?uantified on an infinitely divisible numerical scale' 5iscrete data has
boundaries and includes any number that must be an integer' 5iscrete examples include
day of the /eekK hour of the dayK age in yearsK countsK incomeK an non-numeric translated to
a numeric value (i'e'& good0bad, on-time0not on-time, pass0fail, primary colors, eye color,
grade, method)'
8ariable or 3ontinuous data is any data on a continuous scale' %xamples include length,
diameter, temperature, /eight, time'
M Co$t'ol Cha't! (http&00///'statsoft'com0textbook0st?uacon'html,
http&00///'itl'nist'gov0div+)+0handbook0pmc0pmc'htm , ;he :lack :elt 7emory bogger p' ""$, For non-
normal distributions& http&00///'ct-yankee'com0spc0nonnormal'html )
@ 3ontrol 3hart is simply a run chart /ith statistically based limits'
Iithin the subPect of control charts 8oice of the 3ustomer (8>3) is the customer re?uired
specifications or the pper Spec Limit (SL) and Lo/er Spec Limit (LSL)'
;he 8oice of the Process is the pper 3ontrol Limit (3L), and Lo/er 3ontrol Limit (L3L)' 1t
is * standard deviations from the process mean and is /hat the process /ill deliver ())',L
of the time)'
Ihen to use /hat chart&
8ariable 1ndividual data& use X)R or I or )R (use moving range to measure control)
o X)R or I
3alled Hm9 since /e use the 7oving 9ange relative to H
@lso called 1 since it is based on 1ndividual data
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
$)
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
;his chart /ill /ork for virtually any situation
K O a of subgroups
@vg(H) O fH0k
9m O i (Hi]$ = Hi) i
@vg (9m) O f90(k-$)
%" is based on sample si<e B is in a table in the reference
3L O avg(H) ]%" 6 @vg (9m)
L3L O avg(H) ]%" 6 @vg (9m)
o )R
K O a of subgroups
@vg(H) O fH0k
9m O i (Hi]$ = Hi) i
@vg (9m) O f90(k-$)
5* B 5C are based on sample si<e B is in a table in the reference
3L O 5C 6 @vg (9m)
L3L O 5* 6 @vg (9m)
8ariable data of group si<es "-$#& use X;a' B R (use range to measure control)
o X;a'
K O a of subgroups
@vg(H) O @vg of H for subgroup k
@vg(@vg(H)) O f@vg(H)0k
@vg (9) O f90k
@" is based on sample si<e B is in a table in the reference
3L O @vg(@vg(H)) ] @" 6 @vg(9)
L3L O @vg(@vg(H)) = @" 6 @vg(9)
o R
K O a of subgroups
@vg (9) O f90k
5C B 5* are based on sample si<e B is in a table in the reference
3L O 5C 6 @vg (9)
L3L O 5* 6 @vg (9)
8ariable data of group si<es $# or more& use X;a' B S (use standard deviation to
measure control)
o X;a'
K O a of subgroups
@vg(H) O @vg of H for subgroup k
@vg(@vg(H)) O f@vg(H)0k
@vg (s) O fs0k
@* is based on sample si<e B is in a table in the reference
3L O @vg(@vg(H)) ] @* 6 @vg(s)
L3L O @vg(@vg(H)) = @* 6 @vg(s)
o S
K O a of subgroups
@vg (s) O fs0k
:* B :C are based on sample si<e B is in a table in the reference
3L O :C 6 @vg(s)
L3L O :* 6 @vg(s)
!ote& 5efect data is a failure to meet one of the acceptance criteriaK 5efective data
is /hen an entire unit fails to meet acceptance criteria' @ defective unit may have
multiple defects'
@ttribute 5efect 5ata 3onstant sample si<e& use C
o C
c O number of defects for each subgroup
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
"#
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
k O a of subgroups
avg (c) O fc0k
3L O avg (c) ] *javg (c)
L3L O avg (c) - *javg (c)
@ttribute 5efect 5ata 8ariable sample si<e & use K
o K
u O c0n for each subgroup
avg (u) O fc0fn
3L O avg (u) ] *j(avg (u)0n)
L3L O avg (u) ] *j(avg (u)0n)
@ttribute 5efective 5ata 3onstant sample si<e& use $, for number defective
o $,
most reliable /hen sample si<e greater than .#
np O a defective units for each subgroup
k O a of subgroups
avg (np) O fnp0k
3L O avg (np) ] *jgavg(np) 6 V$- avg(p)Xh
L3L O avg (np) - *jgavg(np) 6 V$- avg(p)Xh
@ttribute 5efective 5ata 8ariable sample si<e& use p for fraction defective
o ,
most reliable /hen sample si<e greater than .#
p O np0n O L defective units for each subgroup
avg(p) O fnp0fn
3L O avg (p) ] *j(gavg(np) 6 V$- avg(p)Xh0n)
L3L O avg (p) - *j(gavg(np) 6 V$- avg(p)Xh0n)
Process is kno/n to be in control B /ant to examine small shifts& use CKSKM or
EWMA@
o CKSKM 2CK).lat"(e SKM #ha't4
2http?LLwww@"tl@$"!t@go(L&"(*-*Lha$&;oo8Lp)#L!e#t"o$5Lp)#515@ht) A
http?LLwww@(a'"at"o$@#o)L#paLhelpLh!/0*@ht) 4
;he Cusum chart can detect process shifts more rapidly than the
Hm9 or Hbar9' 1f a trend develops, itUs evidence that the process
has shifted'
;o compute&
n O number of data points
@vg(x) O fH0n
S(i) O 3umulative Sum of the difference bet/een the current
value and the average'
;he cumulative sum is not the cumulative sum of the
values' 1nstead it is the cumulative sum of differences
bet/een the values and the average' :ecause the average
is subtracted from each value, the cumulative sum also
ends at <ero'
1f S(i) is positive or negative for more than a fe/ points in a
ro/ it is an indication there may be a change in the process'
o EWMA 2E+po$e$t"all3 We"ghte& Mo("$g A(e'age4
2http?LLwww@"tl@$"!t@go(L&"(*-*Lha$&;oo8Lp)#L!e#t"o$5Lp)#517@ht) 4
;he %xponentially Ieighted 7oving @verage (%I7@) is a statistic
for monitoring the process that averages the data in a /ay that
gives less and less /eight to data as they are further removed in
time'
%I7@t O Rt ] ( $- ) %I7@t-$ for t O $, ", ''', n'
%I7@# is the mean of historical data (target)
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
"$
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
Rt is the observation at time t
n is the number of observations to be monitored including
%I7@#
# _ $ is a constant that determines the depth of memory
of the %I7@'
;he parameter determines the rate at /hich UolderU data
enter into the calculation of the %I7@ statistic' @ value of
O $ implies that only the most recent measurement
influences the %I7@ (degrades to She/hart chart)' ;hus,
a large value of O $ gives more /eight to recent data and
less /eight to older dataK a small value of gives more
/eight to older data' ;he value of is usually set bet/een
#'" and #'* (Funter) although this choice is some/hat
arbitrary' Lucas and Saccucci ($))#) give tables that help
the user select '
s
"
e/ma O ( 0("- )) s
"
;he center line for the control chart is the target value or %I7@#'
;he control limits are&
3L O %I7@# ] kse/ma
L3L O %I7@# - kse/ma
/here the factor k is either set e?ual * or chosen using the
Lucas and Saccucci ($))#) tables' ;he data are assumed
to be independent and these tables also assume a normal
population'
>ut of 3ontrol 3onditions&
o 1f $ or more points falls outside of the 3L (pper 3ontrol Limit) or L3L
(Lo/er 3ontrol Limit)' (i'e'& any point more than * standard deviation from
the mean)'
o 1f " of * successive points fall beyond " standard deviations from the mean'
o 1f C of . successive points fall beyond $ standard deviations from the mean'
o 1f there is a run of G or more points that are either successively higher or
successively lo/er'
o 1f + or more successive points fall on either side of the mean'
o 1f $. points in a ro/ fall /ithin $ standard deviation from the mean'
(%xamine to determine if the process has become better controlled)'
C 9OC 9o"#e O% the C.!to)e' (http&00en'/ikipedia'org0/iki08oice4of4the4customer )
%very lean Six Sigma proPect needs to understand the 8oice of the 3ustomer' Rou can not
truly exit define phase /ithout an understanding of /hatSs important to the customer'
1n Lean only process that add value to the customer are value-add processes' Rou need to
understand the customer (i'e'& /hat /ould the end-customer pay for) to understand if a step
is technically a value-added step in a Lean analysis'
1n control charts the 8>3 is translated to pper Spec Limit (SL) B Lo/er Spec Limit (LSL)
(see control charts above)'
C Co$t'ol L")"t!
See control charts above' 3ontrol Limits are the Yvoice of the processS and based on the
standard deviation and variability of the process'
C ,'o#e!! Capa;"l"t3 (;he :lack :elt 7emory bogger p ).)
7easures the capability of a process to meet customer specifications'
;he higher the 3p, 3pk, Pp, or Ppk, the better, the less variance there is in the process'
Short-;erm 3apability indices&
o sed if long-term data is not available or if process has changed recently'
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
""
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
o ses short term process variation to determine process capability
o 3p tells you if the process is capable& 1f 3p ` $ then the process is capable (the
process spread fits /ithin tolerance)' Ihile 3pk also tells you if the process is
centeredK if 3pk _ $ /hile 3p ` $ then the process is not centered and should first be
centered'
o 3p
;he ratio of customer-specified tolerance to G standard deviations of the
short-term process variation'
Aives an indication of /hat the process could perform to if the mean of the
data /as centred bet/een the specification limits'
Sometimes referred to as process potential
M Formula& 3p O
MR
s
LSL USL
6

o 3pk
;he ratio of the distance bet/een the process average and the closest
specification limit to * standard deviations of short term process variation'
7ore realistic measure of process than 3p because it uses data mean'
M Formula& 3pk O min
'

MR MR
s
LSL x
s
x USL
3
,
3
Long ;erm 3apability indices&
o sed if long-term data available B representative of the current process'
o ses long-term process standard variation
o Pp
;he ratio of customer-specified tolerance to G standard deviations of the
long-term process variation'
Aives an indication of /hat the process could perform to if the mean of
the data /as centred bet/een the specification limits'
Sometimes referred to as process potential
M Formula& Pp O
s
LSL USL
6
o Ppk
;he ratio of the distance bet/een the process average and the closest
specification limit to * standard deviations of long term process
variation'
7ore realistic measure of process than Pp because it uses data mean'
M Formula& Ppk O min
'

s
LSL x
s
x USL
3
,
3
M Co$t'ol pla$ (http&00it'toolbox'com0/iki0index'php03ontrol4Plan )
;he control plan is the plan used to control the process' Iithin six sigma it is used in the
control phase B after proPect closure to ensure proPect improvements are sustained'
;here a various control plan templates, but /hat needs to be captured is /hat is being
measuredK ho/ it is used, /hat sampling method is used, /ho o/ns the control chart, /here
it is located, and /hat conditions constitute loss of control or improvement that re?uire
corrective action'
sually 3p, 3pk, Pp, and Ppk (see process capability above) are measured as part of the
control plan, and often process control charts (see control charts above) are the key control
chart used'
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
"*
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
"C
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
BLACK BELT STATISTICS CHEAT SHEET
ANO9A (http&00en'/ikipedia'org0/iki0@!>8@ , ;he Lean Six Sigma Pocket ;oolbook p $,*)
sed for hypothesis testing /hen comparing multiple groups'
o Fypothesis takes the form Fo& c$ O c" O c* O d
1n its simplest form @!>8@ gives a statistical test of /hether the means of several groups
are all e?ual, and therefore generali<es StudentUs t/o-sample t-test to more than t/o groups'
1t is a collection of statistical models, and their associated procedures, in /hich the observed
variance is partitioned into components due to different explanatory variables'
M 6OE 6e!"g$ O% E+pe'")e$t! (http&00en'/ikipedia'org0/iki05esign4of4experiments )
5esign of %xperiments is using statistical tools (such as @!>8@ above and regression
belo/) to be able to determine the importance of different factors /ith a minimal amount of
data' 1t is used /hen you have many different factors that may impact results (i'e'& many xSs
that impact R in the classic ROf(x) formula)'
:y collecting the data, organi<ing it, and analy<ing it using 5o% methodology you do not
have to study O$e Fa#to' At a T")e 2OFAT4 Vhttp&00en'/ikipedia'org0/iki0>ne-factor-at-a-
time4method X to isolate /hich factors have the biggest impact'
5o%Ss are best carried out using soft/are specifically designed for 5o% (such as 7initab or
b7P)'
7ost important ideas of experimental design&
o Co)pa'"!o$
o 1n many fields of study it is hard to reproduce measured results exactly'
3omparisons bet/een treatments are much more reproducible and are
usually preferable' >ften one compares against a standard or traditional
treatment that acts as baseline'
o Ra$&o)"Dat"o$
o ;here is an extensive body of mathematical theory that explores the
conse?uences of making the allocation of units to treatments by means of
some random mechanism such as tables of random numbers, or the use of
randomi<ation devices such as playing cards or dice' Provided the sample
si<e is ade?uate, the risks associated /ith random allocation (such as failing
to obtain a representative sample in a survey, or having a serious imbalance
in a key characteristic bet/een a treatment group and a control group) are
calculable and hence can be managed do/n to an acceptable level'
9andom does not mean hapha<ard, and great care must be taken that
appropriate random methods are used'
o Repl"#at"o$
o 7easurements are usually subPect to variation, both bet/een repeated
measurements and bet/een replicated items or processes' 7ultiple
measurements of replicated items are necessary so the variation can be
estimated'
o Blo#8"$g
o :locking is the arrangement of experimental units into groups (blocks) that
are similar to one another' :locking reduces kno/n but irrelevant sources of
variation bet/een units and thus allo/s greater precision in the estimation of
the source of variation under study'
o O'thogo$al"t3
o >rthogonality concerns the forms of comparison (contrasts) that can be
legitimately and efficiently carried out' 3ontrasts can be represented by
vectors and sets of orthogonal contrasts are uncorrelated and independently
distributed if the data are normal' :ecause of this independence, each
orthogonal treatment provides different information to the others' 1f there are
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
".
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
T treatments and T = $ orthogonal contrasts, all the information that can be
captured from the experiment is obtainable from the set of contrasts'
o Fa#to'"al e+pe'")e$t!
o se of factorial experiments instead of the one-factor-at-a-time method'
;hese are efficient at evaluating the effects and possible interactions of
several factors (independent variables)'
Step:;3:!tep p'o#e&.'e in effective design of an experiment' (!ote this is taken from the
link aboveK not every step may be needed for your experiment' Soft/are packages often
have tutorials sho/ing ho/ to do a 5o% specifically /ith their application')
o Select the problem
o 5etermine dependent variable(s)
o 5etermine independent variables
o 5etermine number of levels of independent variables
o 5etermine possible combinations
o 5etermine number of observations
o 9edesign
o 9andomi<e
o 7eet ethical B legal re?uirements
o 5evelop 7athematical 7odel
o 3ollect 5ata
o 9educe 5ata
o 8erify 5ata
C Reg'e!!"o$
L"$ea' Reg'e!!"o$ (http&00en'/ikipedia'org0/iki0Linear4regression )
Linear regression attempts to use a straight line to determine a formula for a
variable (y) from one or more factors (Hs)'
;his is best done using a soft/are package such as excel, 7initab, or b7P'
Linear regression has many practical uses' 7ost applications of linear regression fall
into one of the follo/ing t/o broad categories&
o 1f the goal is prediction, or forecasting, linear regression can be used to fit a
predictive model to an observed data set of y and X values' @fter developing
such a model, if an additional value of X is then given /ithout its
accompanying value of y, the fitted model can be used to make a prediction
of the value of y'
o 1f /e have a variable y and a number of variables X$, ''', Xp that may be
related to y, /e can use linear regression analysis to ?uantify the strength of
the relationship bet/een y and the Xj, to assess /hich XP may have no
relationship /ith y at all, and to identify /hich subsets of the Xj contain
redundant information about y, so that once one of them is kno/n, the
others are no longer informative'
Linear regression models are often fit using the least s?uares approach, but may
also be fit in other /ays, such as by minimi<ing the Tlack of fitT in some other norm,
or by minimi<ing a penali<ed version of the least s?uares loss function as in ridge
regression' 3onversely, the least s?uares approach can be used to fit models that
are not linear models' ;hus, /hile the terms Tleast s?uaresT and linear model are
closely linked, they are not synonymous'
No$:l"$ea' Reg'e!!"o$ (http&00en'/ikipedia'org0/iki0!on-linear4regression )
!on-linear regression attempts to determine a formula for a variable (y) from one or
more factors (Hs), but it differs from linear regression because it allo/s the
relationship to be something other than a straight line'
;his is best done using a soft/are package such as an excel add-on, 7initab, or
b7P'
examples of nonlinear functions include exponential functions, logarithmic functions,
trigonometric functions, po/er functions, Aaussian function, and Lorent<ian curves'
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
"G
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
Some functions, such as the exponential or logarithmic functions, can be
transformed so that they are linear' Ihen so transformed, standard linear
regression can be performed but must be applied /ith caution&
o Some nonlinear regression problems can be moved to a linear domain by a
suitable transformation of the model formulation'
o For example, consider the nonlinear regression problem (ignoring
the error)& y O ae
bx
'
o 1f /e take a logarithm of both sides, it becomes& ln (y) O ln (a) ] bx'
o ;herefore, estimation of the unkno/n parameters by a linear
regression of ln(y) on , a computation that does not re?uire
iterative optimi<ation' Fo/ever, use of a linear transformation
re?uires caution' ;he influences of the data values /ill change, as
/ill the error structure of the model and the interpretation of any
inferential results' ;hese may not be desired effects' >n the other
hand, depending on /hat the largest source of error is, a linear
transformation may distribute your errors in a normal fashion, so the
choice to perform a linear transformation must be informed by
modeling considerations'
1n general, there is no closed-form expression for the best-fitting parameters, as
there is in linear regression' sually numerical optimi<ation algorithms are applied to
determine the best-fitting parameters'
;he best-fit curve is often assumed to be that /hich minimi<es the sum of s?uared
residuals' ;his is the 2o'&"$a'34 lea!t !F.a'e! 2OLS4 approach' Fo/ever, in cases
/here the dependent variable does not have constant variance a sum of /eighted
s?uared residuals may be minimi<edK see /eighted least s?uares' %ach /eight
should ideally be e?ual to the reciprocal of the variance of the observation, but
/eights may be recomputed on each iteration, in an iteratively /eighted least
s?uares algorithm'
M No$:$o')al &"!t'";.t"o$!
;here are as many different distributions as there are populations' 5eming said Ythere a no
perfect models, but there are useful modelsS' ;hatSs the ?uestion you need to ask relative to
your problem& Ihat tools B techni?ues /ill /ork /ell /ith the distribution for the population 1
haveN
3ycle time data can not go belo/ <ero, and therefore is never truly normal' 1t invariably has
a longer tail to the right than to the left'
>ften times /hen a population has non-normal data it can be stratified into segments that
have approximately normal distributions' @nd you can assume normality after you have
determined these subpopulations and pulled data from the subpopulations to test separately'
Ihen doing data analysis 1 /ould first determine if the data is normal' 1f it is not&
o 3onsider ho/ important the distribution is to the tools you plan to use' >f the tools
in this cheat sheet these ones are affected if the distribution is non-normal&
Co$%"&e$#e I$te'(al!& concept is the same, but you can not use the $')G as
the multiplier for a ).L 31'
Gage R=R (http&00elsmar'com0Forums0sho/thread'phpNtO+.), )& 1n most
real-/orld applications the impact of non-normal data on this tool is
negligible'
T:te!t (http&00///'?imacros'com0?i/i<ard0tukey-?uick-test-excel'html )& t-
test assumes normality' 3onsider&
1f data is close to normal you may be safe using a t-test'
5epending on other factors you may be able to use the 3entral
Limit ;heorem and normali<e the data'
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
",
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
Rou may prefer a hypothesis test that doesnSt assume normality
such as the ;ukey ;est or 7oods 7edian ;est'
ANO9A (http&00lssacademy'com0"##,0#G0$.0dealing-/ith-non-normal-data0
http&00///-rohan'sdsu'edu0L,%cdlin0G,,0@!>8@4@ssumptions'ppt )&
@!>8@ assumes normality' 3onsider&
1f data is close to normal you may be safe using @!>8@'
Rou may prefer a hypothesis test that doesnSt assume normality
such as LeveneSs ;est or :ro/n-Forsythe ;est or the Fmax ;est or
the Friedman ;est''
,ea'!o$ Co''elat"o$ Co:e%%"#"e$t (http&00en'/ikipedia'org0/iki03orrelation )
Pearson is usually considered accurate for even non-normal data,
but there are other tools that are specifically designed to handle
outliers' ;hese correlation coefficients generally perform /orse
than PearsonSs if no outliers are present' :ut in the event of many
extreme outliers consider 3hi-s?uare, Point biserial correlation,
SpearmanSs p, KendallSs ;, or Aoodman and KruskalSs lambda'
Ce$t'al L")"t Theo'e) can be used to transform data from a non-normal to
a normal distribution'
Co$t'ol Cha't!A Co$t'ol L")"t!A ,'o#e!! Capa;"l"t3A and Co$t'ol ,la$!
(http&00///'ct-yankee'com0spc0nonnormal'html )' Standard 3ontrol 3harts,
3ontrol Limits, and Process 3apability metrics assume normality' 3onsider&
1f data is close to normal you may be safe using a standard control
chart'
Rour statistical package may allo/ for a test based on the
distribution you have' For example 7initab supports Ieibull
distribution and /ill compute the capability six pack including the
control charts for a Ieibull distribution'
Rou may use the transformation formulas to use a control chart
designed for non-normal data'
o 3L O '))+G. ?uantile
o 3enter line O median
o L3L O '##$*. ?uantile
o ;his revision does affect out of control conditions as /ell as
process capability measurements'
6e!"g$ O% E+pe'")e$t!
5>% assumes normal data'
1f data is close to normal you may be safe using 5>%'
Reg'e!!"o$ (http&00///'statsci'org0glm0intro'html )
Ge$e'al"De& l"$ea' )o&el! 2GLM!4
(http&00en'/ikipedia'org0/iki0Aenerali<ed4linear4model )are used to
do regression modelling for non-normal data /ith a minimum of
extra complication compared /ith normal linear regression'
o ;he AL7 consists of three elements'
$' @ distribution function f, from the exponential family'
"' @ linear predictor ! O X '
*' @ link function g such that %(Y) O M O g
-$
(!)'
o ;he exact formulas depend on the underlying distribution'
Some of the more common non-normal distributions include
(http&00///'?uantitativeskills'com0sisa0roPo0distribs'htm )&
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
"+
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
o We";.llA E+po$e$t"alA Log:$o')al' 7initabSs distribution identity function can test
for these distributions' !>;%& Ieibull can be normal if Ok $ B kO.'
o Ga))aA ,o"!!o$A Ch":!F.a'e&A BetaA B":)o&alA B"$o)"alA St.&e$t:t' (!>;%&
Student-t is very close to normal but has a longer tail)'
Some other distributions include Laplace, Logistic, 7ultinomial, !egative :inomial, %rlang,
7ax/ell-:olt<mann, 1nverse-gamma, 5irichlet, Iishart, 3auchy, Snedecor F, niform,
:ernoulli, Aeometric, Fypergeometric, ;riangular, 9ectangular'
M 9a'"a$#e "$%lat"o$ %a#to' 29IF4 (http&00en'/ikipedia'org0/iki08ariance4inflation4factor )
;he 81F measures ho/ much the interaction bet/een independent variables impact the dependent
variable' (1'e' going back to the R O f(x) e?uation ho/ much do the different xSs interact /ith each
other to determine R')
o 3onsider the follo/ing regression e?uation /ith k independent variables&
Y O "# ] "$ X$ ] "" X " ] ''' ] "k Xk ] #
81F can be calculated in three steps&
3alculate k different 81Fs, one for each Xi by first running an ordinary least
s?uare regression that has Xi as a function of all the other explanatory
variables in the first e?uation'
o 1f i O $, for example, the e?uation /ould be X$ O $" X " ] ''' ] $k Xk ]
c# ] # /here c# is a constant and e is the error term'
;hen, calculate the 81F factor for El /ith the follo/ing formula&
o 81F(E
l
i) O g$ 0($-%
"
i)h
o /here %
"
iis the coefficient of determination of the regression
e?uation in step one'
;hen, @naly<e the magnitude of multicollinearity by considering the si<e of
the 81F(E
l
i)'
@ common rule of thumb is that if 81F(E
l
i) ` . then multicollinearity is high'
Some soft/are calculates the tolerance /hich is Pust the reciprocal of the
81F' ;he choice of /hich formula to use is mostly a personal preference of
the researcher'
;he s?uare root of the variance inflation factor tells you ho/ much larger the standard error is,
compared /ith /hat it /ould be if that variable /ere uncorrelated /ith the other independent
variables in the e?uation'
M L"%e te!t"$g = 'el"a;"l"t3 (http&00en'/ikipedia'org0/iki09eliability4L"+engineeringL") ,p "C-"$ Juality
3ontrol Fandbook *
rd
edition)
A>L (http&00en'/ikipedia'org0/iki0@cceptable4?uality4limit )
o ;he a##epta;le F.al"t3 l")"t 2A>L4 is the /orst-case ?uality level, in percentage or ratio,
that is still considered acceptable'
o 1n a ?uality control procedure, a process is said to be at an acceptable ?uality level if the
appropriate statistic used to construct a control chart does not fall outside the bounds of the
acceptable ?uality limits' >ther/ise, the process is said to be at a rePectable control level'
AO>L (http&00///'variation'com0spa0help0hs$#*'htm )
o The A(e'age O.tgo"$g >.al"t3 L")"t 2AO>L4 of a sampling plan is maximum value on the
@>J curve' 1t is applicable for defective units, defects per unit, and defects per ?uantity' 1t is
expressed as either a defective rate (fraction defective, percent defective, dpm) or as a
defect rate (defects per unit, defects per $## units, dpm)' ;he @>J curve gives the average
outgoing ?uality (left axis) as a function of the incoming ?uality (bottom axis)' ;he @>JL is
the maximum or /orst possible defective or defect rate for the average outgoing ?uality'
9egardless of the incoming ?uality, the defective or defect rate going to the customer should
be no greater than the @>JL over an extended period of time' 1ndividual lots might be /orst
than the @>JL but over the long run, the ?uality should not be /orse than the @>JL'
o ;he @>J curve and @>JL assume rePected lots are $##L inspected, and is only applicable
to this situation' ;hey also assume the inspection is reasonably effective at removing
defectives or defects ()#L effective or more)'
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
")
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
M >F6 2>.al"t3 F.$#t"o$ 6eplo3)e$t4 (http&00en'/ikipedia'org0/iki0Juality4function4deployment )
>.al"t3 %.$#t"o$ &eplo3)e$t 2>F64 is a mmethod to transform user demands into design ?uality, to
deploy the functions forming ?uality, and to deploy methods for achieving the design ?uality into
subsystems and component parts, and ultimately to specific elements of the manufacturing process'n
JF5 is designed to help planners focus on characteristics of a ne/ or existing product or service
from the vie/points of market segments, company, or technology-development needs' ;he
techni?ue yields graphs and matrices'
JF5 helps transform customer needs (the voice of the customer g8>3h) into engineering
characteristics (and appropriate test methods) for a product or service, prioriti<ing each product or
service characteristic /hile simultaneously setting development targets for product or service'
JF5 Steps&
$& nderstand 3ustomer and ;echnical 9e?uirements
"& ;ranslate ;echnical 9e?uirements to C'"t"#al to >.al"t3 Cha'a#te'"!t"#! 2CT>!4
:uild to those 3;Js'
Ho.!e o% >.al"t3 2HO>4 (http&00///'?fdonline'com0templates0 )is the most common tool /hen
using JF5&
Steps to complete F>J
Put customer /ants B needs on the far left
Put importance to the customer on the far right
Put technical re?uirements on the top under the hat
9ate the importance of the technical re?uirements to each customer need B put that
value in the cell in the body of the tool
9ank the relationships of each technical re?uirement to the importance to the customer
B put that in the bottom in the appropriate column
;echnically evaluate your companiesS abilities in each technical area to your competition
and put that in the appropriate column in the very bottom'
Fill in the hat correlating the different technical re?uirements according to strength of
correlation in the appropriate cell'
@naly<e your house for conclusions to incorporate into the design'
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444
()$))*+,-).,#
*#

LSS Cheat Sheets

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

LSS Cheat Sheets

Uploaded by

Copyright:

Available Formats

LEAN SIX SIGMA CHEAT

(includes concepts, formulas, references, and links)

You might also like