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Glossary

Glossary A

Accuracy - The extent to which the average of observed values is close to the real average or to a
reference value. Accuracy is related to measurement bias. For more information about this term, see
Measure Phase modules.

Action Item List - A list of recommended actions that a project team should make high priority based
on the results of a Risk Priority Number (RPN) calculation.

All Employees - Employees of a company who may or may not be involved in the Six Sigma effort.

Alpha Risk - Risk of concluding that two characteristics are different when they are actually the same.

Alternative Hypothesis - Statement of change or difference. The statement is assumed correct if the
null hypothesis is not supported by the data.

Analysis of Variance - Analysis of Variance (ANOVA) is a hypothesis test used to determine whether
two or more sample means are significantly different. For more information about this term, see the HT:
ANOVA module.

Analyze Phase - The Analyze Phase is the third of the five DMAIC Phases. In this phase, data are
collected to determine the relationships between the variable factors in the process and to determine
the direction of improvement. This phase determines how well (or, in many cases, how poorly) the
process is currently performing and identifies possible root causes of variation in quality. For more
information about this term, see the Analyze Phase Overview module.

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Glossary A

ANOVA - See Analysis of Variance.

Area of Opportunity - In terms of quality, each product and process characteristic represents a unique
opportunity to either add or subtract value. The latter is called a defect. For more information about this
term, see the Control Charts for Attribute Data module.

Attribute Data - Sometimes used in place of the term discrete data. Attribute data is qualitative data
that has two outcomes. Examples include pass/fail, tastes good/tastes bad and acceptable/not
acceptable. Attribute data is used specifically in reference to Attribute Control Charts, which are limited
to counting and plotting defects or defectives. Note: This definition is specific to Control Charts, as the
data type is referred to as discrete data in other phases of the DMAIC methodology.

Attribute Gage R&R - A Gage Repeatability & Reproducibility (Gage R&R) study used to determine
the measurement variability when attribute data is used. For more information about this term, see the
Measurement Systems Analysis module.

Audit - An independent evaluation of various aspects, records and documentations of a process (or
product) and performance characteristics in order to assure adherence to existing procedures and to
maintain performance. For more information about this term, see the Project Management module.

Audit Plan - Project Management tool that documents the strategy for ensuring gains are sustained
after the project is completed. It is also used within a project to monitor the work and ensure
accountability. For more information about this term, see the Project Management module.

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Glossary B

Backbone Test - A main supporting tool or factor used in statistical analysis.

Bartlett's Test - Type of hypothesis test that compares variances of two or more normally distributed
populations.

Baseline - The "as-is" level of performance of the process being investigated.

Baseline Control Chart - A graph of the initial process performance over time that is used to detect
whether common or special cause variation exists in a process.

Beta Risk - Risk of concluding that two characteristics are the same when they are actually different.

Between Variance - Between variance is based on the distances of the sample means from the
overall mean. If the samples come from populations with equal means, one would not expect an undue
amount of variation in the sample means.

Bias - Bias within a measurement system describes the difference between the observed average and
a reference value of the measurements. Bias is related to accuracy.

Binomial Distribution - A distribution of probabilities used when there are only two independent
outcomes to the hypothesis test (e.g. heads/tails, yes/no).

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Glossary B

Black Belt - Full-time resource who is trained in the DMAIC methodology. Black Belts possess the Six
Sigma knowledge and skills (leadership ability, tenacity to drive projects to completion, the ability to
achieve general consensus and the ability to make fact-based decisions) necessary to implement,
sustain and lead a highly focused Six Sigma initiative within a target business area or unit.

Box Plot - A type of plot which identifies variability and centering based on quartiles. It uses a
rectangular box to represent the middle 50% of the data and whiskers to show the extent of the data. A
Box Plot requires data from a continuous output and a discrete (typically attribute) input at one or more
levels.

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Glossary C

C Chart - A graphical display of number (counts) of defects in a subgroup (part or unit) with a constant
sample size. A C Chart can be used to detect special cause variation.

C&E Analysis - See Cause and Effect Analysis.

C&E Diagram - See Cause and Effect Diagram.

C&E Matrix - See Cause and Effect Matrix.

Calibration Program - A process used to determine the accuracy of a gage and to bring it into
acceptable accuracy levels.

Capability Analysis - A statistical measure which helps determine how well a process meets
customers' standards.

Capability Indices - Indices describing the overall effectiveness of a process in meeting specific
criteria in both the short and long term.

Cause and Effect Analysis - The Cause and Effect Analysis (C&E Analysis) is an analysis in which
either causes to an effect are brainstormed (the Cause and Effect Diagram), or multiple causes, which
have already been identified, are prioritized against several criteria (the Cause and Effect Matrix). C&E
Analyses are typically used when limited data is available.

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Glossary C

Cause and Effect Diagram - The Cause and Effect Diagram (C&E Diagram) is a fishbone-shaped
diagram that helps a team brainstorm potential root causes of a defect. The problem to be solved is
placed at the head of the fish and the six thought-generating categories - Personnel, Machines,
Materials, Methods, Measurements and Environment - are placed at the ends of the fish bones.

Cause and Effect Matrix - The Cause and Effect Matrix (C&E Matrix) is a tool that allows one to
prioritize many items when there are many criteria they need to be prioritized against.

Change Management - A practice that leads a team to a higher performance level and establishes
necessary measures to sustain it.

Chi-Square Distribution - A sampling distribution used to determine the confidence interval for
standard deviation and to perform Chi-Square Hypothesis Tests: Goodness of Fit Test and Test for
Association.

Chi-Square Hypothesis Test - Hypothesis test used to test the goodness-of-fit between a sample and
a hypothesized distribution, or the association of two or more variables.

Classical Yield - The ratio of the number of units that ultimately pass through the entire process to the
number of units that enter into the process. Equivalent to Final Yield, which equals output divided by
input.

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Glossary C

Clustering - A type of special cause variation within a Run Chart in which the data set exhibits fewer
runs around the median than expected, resulting in a "clustering" of data points in just a small range of
values or a shift in the average values.

Coefficient of Determination - A measure of the correlation between the dependent and independent
variables in a Regression Analysis.

Common Cause Variation - Process variability that is free of assignable cause. It is typically
associated with short-term variability or subgroup variability. Also referred to as white noise or
expected variation.

Communication Plan - Plan that anticipates communication actions and responses directed to all
stakeholders who address issues throughout the steps and phases of the project.

Complexity - A notion directly related to the number of opportunities for error in a process or in product
characteristics..

Confidence Interval - A range of numbers in which population parameters are likely to fall.

Confidence Level - The fixed probability of correctly accepting the null hypothesis.

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Glossary C

Contingency Table - A table of observed frequencies used in Chi-Square Hypothesis Tests.

Continuous Data - Continuous data, sometimes referred to as variable data, is data that is measured
on a continuum or a scale that can be meaningfully divided into finer and finer increments of precision.
For example, length and weight can be measured to any desired level of precision.

Continuous Gage R&R - A Gage Repeatability & Reproducibility (Gage R&R) study used to
determine the measurement variability when continuous data is used.

Control Chart - A process control tool, in which data is plotted and statistically analyzed in order to
discern whether the process exhibits common and/or special cause variation.

Control Limit - Control Limits are typically set +/-3 standard deviations from the centerline to
determine whether or not the process is in control.

Control Phase - The last of the five DMAIC Phases, the Control Phase ensures that once the process
has been improved, measures are implemented to ensure that the Key Process Input Variables
(KPIV's) will be maintained permanently over time. Also, in this phase the Process Owner assumes
responsibility for maintaining the improved state.

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Glossary C

Control Plan - A single document or set of documents that provides a point of reference among the
Key Process Input Variables (KPIV's), Key Process Output Variables (KPOV's), specifications and
instructions for the completed project. It documents the actions, including schedules and
responsibilities, that are needed to control the KPIV's at their optimal settings.

Controllable Input - A process input that has adjustable settings, which can be modified by the project
team during a project.

COPQ - See Cost of Poor Quality.

COQ - See Cost of Quality.

Correlated - Data identified as having a causal, complementary, parallel or reciprocal relationship.

Correlation - Statistical analysis that determines whether or not one variable can be used to predict
another. Correlation does not necessarily prove causation.

Correlation Coefficient - A measure of the interdependence of two random variables that range in
value from -1 to +1, indicating perfect negative correlation at -1, absence of correlation at zero and
perfect positive correlation at +1.

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Glossary C

Cost of Poor Quality - Cost of Poor Quality (COPQ) is the cost of failing to produce 100% quality for
the customer the first time through. Many of these costs are measurable, such as inspection, rework,
expediting and excess inventory; and many of these costs are immeasurable, such as lost customer
loyalty. Doing it right the first time can eliminate most, if not all, of these costs.

Cost of Quality - Cost of Quality (COQ) is used when referring to a general sense of the issues
involved in the cost of quality.

Cp - A capability index that measures the potential capability of a process to meet expected
specification limits, or tolerance levels, in the short term, assuming the process is ideally centered
(regardless of where the process is actually centered).

Cpk - A capability index that measures the potential capability of a current process to meet expected
specification limits, or tolerance levels, in the short term, using the current process average.

Critical Input Variable - An input variable (X) that has been statistically proven to impact the process
output (Y).

Critical Path - The specific sequence of activities that takes the longest time route through the project
activity network.

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Glossary C

Critical to Cost - Critical to Cost (CTC) is a reference to a product, service and/or transactional
characteristic that significantly influences a customer in terms of cost.

Critical to Delivery - Critical to Delivery (CTD) is a reference to a product, service and/or transactional
characteristic that significantly influences a customer in terms of delivery.

Critical to Quality - Critical to Quality (CTQ) is a reference to a product, service and/or transactional
characteristic that significantly influences a customer in terms of quality.

Critical to Satisfaction - Critical to Satisfaction (CTS) is an expression of customers' vital needs and
can include any of the Critical to Cost (CTC), Critical to Quality (CTQ), and Critical to Delivery (CTD)
requirements.

Crossed Designs Multi-Vari Studies - A type of Multi-Variable Study performed when all input
variables can be combined or analyzed with all other combinations of variables. This analysis is often
done as part of a manipulated study, in which variables are changed intentionally to determine their
effect on the output variable.

CT Tree - The CT Tree is a tool that helps represent the 'need-do' interaction, translate customers'
Critical to Satisfaction (CTS) requirements into product or service characteristics and link these to
processes. It breaks down CTS's into cost, quality and delivery requirements.

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Glossary C

CTC - See Critical to Cost.

CTD - See Critical to Delivery.

CTQ - See Critical to Quality.

CTS - See Critical to Satisfaction.

Curvilinear Relationship - Also known as a quadratic relationship, it is a relationship, evident


between two variables, that approximates a curved line on a Scatter Plot. It indicates that one variable
depends on the squared value of the other.

Customer - Any entity, internal or external to the process, that receives products, services or
information.

Customer Specification Limits - Customer-defined limits for acceptable outputs. When a measured
value falls outside these limits, a defect has been created.

Customer Target - Typically, the value centered between the upper and lower Customer Specification
Limits. The targeted value the customer desires the process to deliver. A customer-defined
performance target.

Cycle Time - The back-to-back process time necessary for delivering a single product or service.

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Glossary D

Data Collection Plan - Typically developed during the Measure Phase, the Data Collection Plan
outlines the process by which Process Input Variables (PIV's) and Process Output Variables (POV's)
are measured. At a high level, it identifies what is being measured, how it is being measured and who
is responsible for measuring it.

Defect - Anything that fails to meet a customer expectation or requirement.

Defect Definition - A clear, detailed description of a defect. The Defect Definition is used to avoid
miscommunication and misinterpretation in order to eliminate the risk of someone incorrectly
identifying a defect.

Defective - Describes a product or service containing one or more defects that render it incapable of
meeting customer requirements.

Defects per Million - Defects per Million (DPM) is a measure of the number of defects per million
units.

Defects per Million Opportunities - Defects per Million Opportunities (DPMO) is a measure of
capability and process performance. DPMO equals the total number of defects per unit divided by the
total number of opportunities for defects per unit multiplied by 1,000,000. This number can be directly
converted into a sigma score. For example, 3.4 DPMO is equivalent to 6 sigma in the short term.

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Glossary D

Defects per Opportunity - Defects per Opportunity (DPO) is a measure of the total defects per unit
divided by the opportunities per unit.

Defects per Unit - Defects per Unit (DPU) is a measure of process performance. It is calculated by
dividing the total number of defects by the total number of units. DPU is used to calculate Rolled
Throughput Yield.

Define Phase - The Define Phase is the first of the five DMAIC phases. Through top-down product and
process benchmarking and the use of CT Trees, senior management considers what industrial or
commercial lines might be the best focus for Six Sigma projects, which are assigned to Black Belt-led
project teams.

Degrees of Freedom - Degrees of freedom (df) of a test statistic equals the number of independent
observations in a sample minus the number of population parameters that are estimated from the
sample observation.

Deployment Champion - Deployment Champions hold a strategic business-unit level or functional


position. Deployment Champions execute the Six Sigma implementation for their respective business
unit or functional areas of responsibility.

Descriptive Statistics - Basic statistical and graphical techniques used to summarize groups of data.

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Glossary D

Design for Six Sigma - Design for Six Sigma (DFSS) is a systematic methodology, with tools, training
and measurements to enable the design of products and processes that meet customer expectations
at a six sigma level.

Design of Experiments - Design of Experiments (DOE's) are planned experiments that allow for the
simultaneous statistical analysis of several Process Input Variables (PIV's, or X's) to determine their
effects on any measurable Process Output Variable (POV, or Y). DOE's prove correlation and
causation. They provide the most efficient method for screening the vital few PIV's from the trivial many
or for identifying the optimal settings.

Designed Experiment - A formal practice for effectively and efficiently exploring the causal
relationship between input factors and output variables.

Detailed Process Map - A thorough, in-depth process map that provides a deeper level of description
than a basic process map.

Deviation - The distance between a data point and the mean. Deviation measures and describes the
variation in a set of data.

df - See degrees of freedom.

DFSS - See Design for Six Sigma.

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Glossary D

Difficulty of Detection - An assessment of the probability that the current controls will detect the
potential cause or the subsequent Failure Mode.

Discrete Data - Numeric data that is not capable of being meaningfully subdivided into more precise
increments.

Discrimination - Discrimination, otherwise known as resolution, is the ability of the measurement


system to adequately detect the smallest tolerable changes within the process.

Distribution - A pattern or tendency depicted by randomly collected observations from a population.

DMAIC - The five core phases of the Six Sigma methodology: Define, Measure, Analyze, Improve and
Control.

DOE - See Design of Experiments.

Dot Plot - A type of plot used to analyze dispersion and concentration within the data. It shows
variability in a continuous or discrete Process Input Variable (PIV) by plotting dots above a horizontal
line. Especially useful when comparing several groups.

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Glossary D

DPM - See Defects per Million.

DPMO - See Defects per Million Opportunities.

DPO - See Defects per Opportunity.

DPU - See Defects per Unit.

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Glossary E

Empirical Rule - A rule derived from observations that the probabilities of empirical (real world)
distributions will approximate to 68%, 95% and 99.7% of the values within one, two and three standard
deviations of the mean, even though the real-world distributions may not be perfectly normal.

Executive Champion - The Executive Champion is an executive that provides day-to-day


management and direction for the entire Six Sigma program.

Executives - Executives inspire, own, fund and drive the Six Sigma initiative. They establish the
corporate-level goals and targets of the Six Sigma program.

Expected Frequency - The expected frequency of occurrence of events is a sample set of possible
events that would be expected if the events were to follow probability rules.

Experimental Design - The deliberate planning, arrangement and testing of various levels of input
variables to effectively and efficiently reach valid and relevant conclusions about how the input
variables impact output variables.

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Glossary F

Factor - A controlled variable, X, whose influence is being studied by varying it to different levels in a
Design of Experiments (DOE).

Factor Effect - The magnitude of change in output variable in response to a change in the level of a
factor.

Factor Levels - A factor level is the amount or magnitude of a factor (e.g. high, medium, low; Market
A, Market B; etc.).

Failure Effect - Failure Effects are the results of a Failure Mode on the product or process as
perceived by the customer.

Failure Mode - Failure Modes are the manners in which a product, process or service could potentially
fail to meet the design intent.

Failure Mode and Effects Analysis - Failure Mode and Effects Analysis (FMEA) is an analytical
technique that allows a project team to ensure that, to the extent possible, potential failure modes and
their associated causes/mechanisms have been evaluated and addressed to mitigate any risk to the
customer.

Final Yield - Final Yield (YF) is a measure of the percentage of units that passed the final process test
relative to the number of units that entered the process. This measure of yield does not account for the
hidden factory.

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Glossary F

FMEA - See Failure Mode and Effects Analysis.

F-Ratio - The result of an F-Test. It indicates the measure of between-to-within variation.

Frequency - The ratio of the number of times an event occurs in a series of trials in a random
experimental trial to the total number of trials in that experiment.

Frequency Distribution - A display indicating how often a particular observation or data value occurs
and representing the distribution of data.

F-Test - Type of hypothesis test used to determine whether or not the within variance and between
variance are the same. If the between variance is larger than the within variance, results indicate that
the means are different. If the within and between variances are the same, results indicate that the
means are all the same.

Full Factorials - Experimental designs in which all combinations between all factors are tested.

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Glossary G

Gage - Any device that is used to collect data or measurements, such as scales, go/no-go gages,
surveys, etc.

Gage Control - Strategy employed to ensure the reliability and adequacy of gages (the measurement
system) in measuring input variables and monitoring output variables over the long term.

Gage Control Plan - Documentation describing the strategy employed to ensure the reliability and
adequacy of gages (the measurement system) in measuring input variables and monitoring output
variables over the long term.

Gage R&R - See Gage Repeatability & Reproducibility.

Gage Repeatability & Reproducibility - A Gage Repeatability & Reproducibility (Gage R&R) study
aims at determining the amount of repeatability and reproducibility errors in a measurement system. It
enables an evaluation of the consistency of measurements in the measurement system.

Gantt Chart - A sequenced graphical representation of the network, showing activities, tasks and
timelines for completion of each task.

Goodness of Fit Test - A kind of Chi-Square Hypothesis Test used to evaluate if the results of the
sample statistics are consistent with those of a random sample of a hypothesized distribution.

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Glossary G

Graphical Analysis - Analysis using graphs to display data in order to identify sources of variability.
The type of data, either discrete or continuous, will dictate the type of graph selected to display the
data.

Graphical Summary - Summarizes a group of individual observations for any variable. It provides
numerous statistics, which help the project team make quantitative inferences about the data set.

Graphical Techniques - Graphs used in a Six Sigma organization to display data in order to identify
sources of variability. The type of data, either discrete or continuous, will dictate the type of graph
selected to display the data.

Green Belt - Green Belts are employees who work part-time in their specific areas, extending the
reach of Black Belts on Six Sigma projects. They also take on small projects of their own.

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Glossary H

Hidden Factory - An ad hoc system or process set up to correct errors made during the processing of
a part, service or transaction. It takes up unnecessary space, time and resources. If everything were
done correctly the first time, hidden factories would not exist.

High-Level Y's - Critical business issues (the organization's outputs) that must be narrowed down to
an appropriate level for the project team to address.

Histogram - Graphical display indicating how often a particular observation or range of data values
occurs and representing the distribution of data.

Hypothesis - A statement subject to verification or proof.

Hypothesis Test - A test in which the project team assumes an initial claim, the null hypothesis, to be
true and then tests this claim against an alternative hypothesis using sample data. Hypothesis tests
are used to make inferences, such as the average or standard deviation, about population parameters.

Hypothesis Testing - A procedure by which a statement about a population parameter (usually mean,
standard deviation or proportion) can be inferred using sample data from the population.

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Glossary I

Implementation Plan - A document that sets in place how identified changes will be made and
instilled in the company. It is the initial implementation of the process improvement and is an element
of the Control Plan.

Improve Phase - The Improve Phase is the fourth of the five DMAIC Phases. During the Improve
Phase, the list of Key Process Input Variables (KPIV's) identified in the Analyze Phase is validated and
narrowed further. These KPIV's are optimized with operating tolerances identified to achieve project
objectives. Many projects use Design of Experiments (DOE's) to identify these optimal conditions.

Improvement Validation - The process of ensuring that the proposed root causes have been properly
identified and that eliminating these root causes will achieve the expected improvement. Often done by
performing a Pilot.

I-MR Chart - A type of Control Chart for variable data that plots individual data and the moving range
of the present and previous individuals.

Inputs - A resource required by the process to assist in producing the output.

Integer - A positive or negative whole number (e.g. +3, -6, 0).

Integrated Process Team - The Integrated Process Team (IPT) is a Six Sigma project team operating
under a Team Charter and consisting of three distinct levels: core team, extended team and
infrastructure. Each level is comprised of various personnel, support teams and resources.

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Glossary I

Interaction - Interactions are present when the output response at a factor level depends upon the
level(s) of other factors.

Interaction Plot - A type of plot that graphs the averages of the output variable for each level of a
factor, with the level of a second factor held constant for all combinations of levels. Interaction Plots
readily show the presence of interactions; parallel lines in an Interaction Plot indicate no interaction,
while greater departure from the parallel state indicates a higher degree of interaction.

IPT - See Integrated Process Team.

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Glossary J

Just In Time (JIT) Raw materials and/or supplies arrive in just the right quantities to replenish those
being used to produce just the right quantity of products. The result is little or no inventory of raw
materials and/or supplies being stored for production.

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Glossary K

Key Process Input Variable - A Key Process Input Variable (KPIV) is an input (X) that has been
determined to have a statistically significant and causal relationship to the Key Process Output
Variable (KPOV, or Y).

Key Process Output Variable - A Key Process Output Variable (KPOV) is one of any number of
outputs from a process that satisfies customers' Critical to Satisfaction (CTS) requirements.

KPIV - See Key Process Input Variable.

KPOV - See Key Process Output Variable.

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Glossary L

LCL - See Lower Control Limit.

Level of Significance - The level of significance (also called significance level) of a hypothesis test is
the maximum allowable probability of incorrectly rejecting the null hypothesis.

Levene's Test - Type of Test of Two Variances that compares variances of two or more populations
that are not normally distributed.

Linearity - The ability of the measurement system to measure over its operating range with minimal
bias.

Lower Control Limit - The Lower Control Limit (LCL) is a limit in the Control Chart that is set below
the centerline, typically at -3 standard deviations, in order to determine whether or not the process is in
control.

Lower Specification Limit - A Lower Specification Limit (LSL) is the lower limit of a tolerance range
specified by a customer requirement. A measured value that is below this limit is considered a defect.

LSL - See Lower Specification Limit.

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Glossary M

Macro-Level Process Map - Simple, high-level graphical representation of a process that shows the
general flow of the process without detailed process step information.

Main Effects - A main effect of a factor is the average change in the output response variable when
moving from one level to another level of that factor.

Main Effects Plot - A type of plot used to graphically compare the relative strength of the main effects
across multiple factors. It plots data averages at all levels of one or more factors.

Master Black Belt - Master Black Belts create Six Sigma implementation guidelines for their
respective business units and assist in the identification, selection and review of projects. They also
train and mentor Black Belts.

Mean - A measure of the central tendency of a data set. It is the sum of a set of values divided by the
number of summed values. The mean is strongly influenced by outliers. It is also called the "average."

Mean Square - Sum of squares divided by the number of degrees of freedom.

Mean Square Error - Mean square error is the sum of squares divided by the number of degrees of
freedom for the error term in Analysis of Variance (ANOVA).

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Glossary M

Measure Phase - The Measure Phase is the second of the five DMAIC Phases. The purpose of the
Measure Phase is to map the as-is process, begin to identify Process Input Variables (PIV's) using a
Cause and Effect Matrix (C&E Matrix), conduct a Failure Mode and Effects Analysis (FMEA), initiate a
Data Collection Plan, determine whether or not the measurement system is capable and determine the
correct baseline Process Capability.

Measurement System - The complete process used to obtain measurements, including gages,
operators, procedures and conditions.

Measurement System Error - The net effect of all the sources of measurement variability that cause
an observed value to deviate from the true value of the characteristic that is being measured.

Measurement Systems Analysis - Measurement Systems Analysis (MSA) is a series of designed


tests used to assess measurement system capability. The Linearity, Stability and Bias Test evaluates
the measurement system for accuracy (average), and the Gage Repeatability & Reproducibility Test
evaluates it for precision (variability). If deemed incapable, the measurement system needs to be
repaired or replaced.

Measurement Variability - The net effect of all the sources of measurement error that cause an
observed value to deviate from the true value of the characteristic that is being measured.

Median - The number that is in the middle when all observations are rank-ordered in a sample, e.g.
median for the sample data set 4, 50 ,50 ,6, 3 is 6 (3 4 6 50 50).

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Glossary M

Metrics - The statistical measures a company uses to asses its performance at all levels within the
organization. Typically, these metrics are compared to benchmark data and customer requirements to
identify opportunities for improvement.

Milestone - Milestones are major control points, or deadlines, when formal deliverables are due or
particular activities must be completed.

MINITAB - MINITAB is a statistical and graphical analysis software application that helps make data
analysis easier.

Mistake Proofing - A simple device or technique implemented during the Control Phase that is used to
prevent errors in processes. Mistake Proofing devices or techniques ensure the process can only be
executed the right way. Mixture - Type of special cause variation within a Run Chart that occurs when
the number of runs around the median is significantly greater than expected.

Mode - The most frequently observed value in a dataset, e.g. mode for the sample data set 4, 50, 50,
6, 3 is 50.

Modeling - A method that uses predefined mathematical equations to predict the outcome of an event.
These mathematical equations are either determined through project work, for example Design of
Experiments (DOE) or Regression Analysis, or through existing software simulations. Typically,
modeling is used to predict the optimal set of conditions that the process inputs (X's) need to be set to
in order to meet or exceed customer performance objectives for output (Y).

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Glossary M

Moving Range - Moving ranges are artificial subgroups created from the difference between
successive pairs of individual observations.

MSA - See Measurement Systems Analysis.

Multiple Linear Regression - A linear regression with two or more predictors. The estimation of the
output variable from two or more continuous input variables using a linear relationship (straight line or
plane) between the output and input variables.

Multi-Vari Chart - A Multi-Variable Chart (Multi-Vari Chart) is a graph used to represent two or more
factors (Process Input Variables, or X's) at multiple discrete levels versus a continuous output (Process
Output Variable, or Y). Typically used to identify sources of positional (within), cyclical (between) and
temporal (over time) variability.

Multi-Vari Study - Study involving data collection and logical sub-groupings using a Multi-Vari Chart to
discover potential sources of variation in Process Output Variables (POV's) with respect to Process
Input Variables (PIV's).

Multi-Variable Chart - A Multi-Variable Chart (Multi-Vari Chart) is a graph used to represent two or
more factors (Process Input Variables, or X's) at multiple discrete levels versus a continuous output
(Process Output Variable, or Y). Typically used to identify sources of positional (within), cyclical
(between) and temporal (over time) variability.

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Glossary N

Need/Do Gap Analysis - Tool that helps to identify where process outcomes fall short of customer
Critical to Satisfaction (CTS) requirements.

Nested Multi-Vari Studies - A type of Multi-Variable study performed when one or more of the input
variables being analyzed cannot be recreated for study with other variables. The most typical examples
are time-based variables.

Network - A sequence of tasks that must be completed in order to finish a project.

Network Diagram - A Project Plan tool that shows a logically grouped sequence of serial and parallel
activities as they occur over time. These activities must be completed in order to finish a project (also
called a Pert Chart).

Noise - The Process Input Variables (PIV's) with settings that cannot be adjusted or controlled by the
project team.

Non-Value-Added - Process steps that do not have a direct impact on the customer-perceived value.

Normal Distribution - A distribution of data described by the mean and standard deviation. The curve
displaying the distribution of data is shaped like a bell, with the area under the curve representing
100% of all possible observations.

Normal Probability Plot - A type of plot that represents normally distributed sample data.

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Glossary N

Normalized Yield - Normalized Yield (YNORM) is the equalized (same) yield assigned for each process
step; it is the geometric average of the Rolled Throughput Yield (RTY) for the entire process.

NP Chart - This tool tracks the number of defectives (products, parts or units that do not conform to
specified standards) in each subgroup and detects the presence of special cause variation. It can only
be used when the sample size is constant.

Null Hypothesis - A statement about population parameters, typically implying "no effect" or "no
difference." This statement is assumed true until sufficient evidence is presented otherwise.

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Glossary O

Observed Frequency - The frequency of observed occurrences of a specific event in a sample set.

OFAT - See One-Factor-at-a-Time.

One-Factor-at-a-Time - One-Factor-at-a-Time (OFAT) is an experimental design setup, in which each


factor is varied one at a time while the remaining factors are held constant. OFAT is done in order to
estimate the effect of a single variable on selected fixed conditions of other variables.

One-Sided Test - Hypothesis test in which the null hypothesis is rejected because the compared
values are larger (or smaller) than each other. The alternative hypothesis for this kind of test will say p1
is larger than p2, not just p1 is not the same as p2.

Operational Definition - A clear, understandable description of what is to be observed and measured,


such that different people taking or interpreting the data will do so consistently.

Opportunity - Every chance within a process, product or service to do something either right or wrong
in terms of a customer standard. If the result is not acceptable compared to the standard, it will be
considered a defect.

Oscillation Pattern - A type of trend within a Run Chart that resembles a zigzag pattern.

Outlier - Data point that is markedly inconsistent with the rest of the data set.

Output - The result of a process or product and its measurable characteristics. Also called Process
Output Variable (POV).

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Glossary P

P Chart - A P Chart tracks the proportion of defectives (products, parts or units that do not conform to
specified standards) in each subgroup and detects the presence of special cause variation. It can be
used for sample sizes that are either constant or variable.

Paired Sample - A sample in which each sampling unit contains a pair of observations that are not
independent of one another (e.g. sampling ages of husband and wife as a single sampling unit).

Paired t Test - A type of hypothesis test used when analyzing the difference between the means
obtained from paired samples.

Pair-Wise Comparison Test - Tool used to identify which mean or means are significantly different.

Pareto Chart - Type of chart that compares the frequency and/or influence of various types of
problems or causes of a problem. The horizontal axis represents the different categories, and the
height of the bar represents the frequency of that category. Pareto Charts prioritize possible areas for
improvement and require either discrete or continuous data.

Pareto Principle - Also referred to as Pareto Effect, the Pareto Principle states that 80% of the issues
are the result of 20% percent of the causes.

Part Variability - Actual variability in the attributes of the product or process, without the variability
introduced by the measurement system.

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Glossary P

Pearson Correlation - The most commonly used method of computing a correlation coefficient
between variables that are linearly related.

Pilot - A Pilot is a test to validate a set of process conditions and is frequently used to identify any gaps
in the Control Plan. A Pilot is typically executed at the end of the Improve Phase and may last into the
beginning of the Control Phase. If any issues are identified, they need to be remedied prior to handing
the project off to the Process Owner.

PIV - See Process Input Variable.

Poka-Yoke - A Japanese phrase developed by Dr. Shigeo Shingo meaning to achieve zero defects
or to foolproof. It is derived from two words: Yokeru (to avoid), Poka (errors).

Pooled Standard Deviation - An estimate of the variation within a level. It is the square root of the
weighted average of the variance of each subgroup.

Population - The entire collection or set of objects or individuals from which a sample is drawn for
analysis. Population can also mean a set of values or characteristics of the members of the population,
e.g. heights of people in the world.

Population Parameters - Measures used to describe an entire population of data.

Potential Cause - The sources of failure that cause a Failure Mode to occur.

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Glossary P

POV - See Process Output Variable.

Power - The probability of rejecting the null hypothesis when it is false.

Pp - A capability index that measures the potential capability of a process to meet expected
specification limits, or tolerance levels, in the long term, assuming the process is ideally centered
(regardless of where the process is actually centered).

Ppk - A capability index that measures the potential capability of a current process to meet expected
specification limits, or tolerance levels, in the long term, using the current process average.

Practical Solution - The translation of a statistical results into information relevant to the practical
problem.

Precision - The extent to which a measurement system can produce the same results without
variation with successively repeated measurements.

Preventative Maintenance - An activity performed at specified times to keep an operation in proper


condition, so as to avoid unnecessary interruptions and to maximize operational effectiveness and
efficiency.

Preventative Maintenance Plan - Documentation describing the strategy for preventive maintenance.

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Glossary P

Probability of Occurrence - A description of how frequently the specific Failure Cause is expected to
occur.

Problem Statement - A statement that clearly defines and quantifies the what, where and when of the
baseline performance of a customer requirement. It is identified from a CT Tree and Need/Do Gap
Analysis. The Problem Statement should not contain a solution or dollar amounts.

Process - A series of activities that converts inputs into outputs. A process step should add value to
the inputs by changing them to produce something more valuable.

Process Capability - A statistical measure used to determine how well the process meets customers'
expectations.

Process Input Variable - A Process Input Variable (PIV) is a characteristic of materials, equipment,
information or any other resource that is needed to carry out a process. In other words, PIV's are the
X's and potential X's in the Y = f(x) equation.

Process Map - A general visual representation of a process, showing the necessary sequence of
steps to describe the process for a specific purpose. The map is used to identify inputs and outputs at
each process step. Various types of process maps can be created and applied throughout a project.
Which mapping tool(s) to use depends on the point of view and the level of process detail desired for
analysis.

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Glossary P

Process Mapping - The creation and utilization of a Six Sigma mapping tool to better understand a
specific process.

Process Output Variable - A Process Output Variable (POV) is a characteristic of a product or service
that is created by the process and is passed onto the next process step or the customer. In other
words, the POV is the Y in the Y = f(x) equation.

Process Owner - Process Owners are employees who have responsibility for and knowledge of a
specific process or area. They provide subject-matter expertise and guidance to the team as they
progress through a project.

Process Specification Limits - Limits that reflect the customer specifications as allocated to the
inputs and outputs of a process. Process Specification Limits apply either to Process Input Variables
(PIV's) or to Process Output Variables (POV's). When a PIV falls outside these limits, the process may
not function as designed. When a POV falls outside these limits, the process produces a defect.

Process Step - A process step is a single segment of a process that has its own inputs and outputs.

Project Champion - Typically, a business-unit level position made up of personnel who are
responsible for identification, selection, execution and follow-on Six Sigma Black Belt projects. Their
leadership must be sound, strong, consistent and prevailing when guiding Black Belts. In addition, they
develop and oversee many of the details associated with implementation and deployment.

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Glossary P

Project Charter - A Project Management document that works like a contract among stakeholders; it
establishes the ground rules for the project going forward.

Project Definition - A one-page abstract that defines the project and includes the Problem Statement,
objective, defect metrics, projected benefits, goals and progress to date.

Project Management - The planning and controlling of a project. Involves balancing competing
demands for resources, quality and delivery timelines.

Project Plan - A Project Management document that consists primarily of the graphical output from
three tools: Work Breakdown Structure (WBS), Network Diagram and Gantt Chart.

Project Team Members - Employees with expertise in a process or area who participate on and
support project teams.

Proportion - The percentage of a data set that has a specific characteristic of interest.

Proportion of Sample - The fraction of samples which exhibit a characteristic of interest.

p-Value - The probability of rejecting the null hypothesis when it is true.

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Glossary Q

QFD - See Quality Function Deployment.

Quality Function Deployment - Quality Functional Deployment (QFD) is a systematic methodology to


integrate the Voice of the Customer (VOC) into the design and delivery of goods and services. It is
executed by a multifunctional team.

Quartile - The four equal parts into which a rank-ordered data set can be divided.

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Glossary R

Range - A measure of variation within a data set. It is calculated by subtracting the minimum value
from the maximum value.

Rational Subgroup - A manner of collecting and grouping data based upon a rational hypothesis in
order to have the best possible representation of process states. Subgroups should be chosen in such
a way as to minimize the variability within the group while maximizing the chance of discovering
variation from group to group.

Reaction Plan - Documentation detailing actions to be taken should a process no longer be in control.

Red Flag Condition - A process condition (e.g. complex processes, lack of standards, lack of training,
environmental conditions, etc.) that contributes to an error and eventually generates a defect.

Reference Value - An agreed upon reference standard that had been obtained previously through
research and/or measurements with more accurate equipment.

Regression - A tool used to determine whether a statistical relationship exists between an output
variable (Y) and one or more input variables (X's). The statistical relationship is demonstrated with a
prediction equation. Regression Analysis is typically used to analyze historical data sets.

Regression Analysis - A statistical technique used to investigate relationships between the output
variable and one or more input variables.

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Glossary R

Regression Plot - A type of plot that graphically represents Regression Analysis, usually showing the
observed data points and the plot of the Regression equation. It relates the output and input variables.

Repeatability - The extent to which repeated measurements, made on the same item under absolutely
identical conditions, produce the same result.

Replicates - Repeated experimental trials that are made under identical factor levels and in similar
conditions.

Reproducibility - The extent to which repeated measurements, made on the same item under
different conditions or by different people, produce the same result.

Resolution - Otherwise known as discrimination, the ability of the measurement system to adequately
detect the smallest tolerable changes within the process.

Response Variable - An output variable that depends on input factors in a designed experiment. The
response is the function of input variables.

Rework - A situation in which a process, product or service does not conform to a customer standard
(resulting in a defect) and must be repaired. Rework is part of the hidden factory and is identified and
eliminated using Six Sigma.

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Glossary R

Risk Priority Number - Risk Priority Number (RPN) is a score used to determine which steps to
improve in order to reduce the risk of failure. RPN is calculated using the Severity, Occurrence and
Difficultly of Detection rankings of a potential process failure.

Rolled Throughput Yield - Rolled Throughput Yield (YRT) is a yield metric that measures the
probability that a unit of product will make it through a series of opportunities defect-free. It is
calculated by multiplying the Throughput Yields at each opportunity for a defect.

Root Cause - A specific cause, usually a Process Input Variable (PIV), that has demonstrated a direct
and significant influence on the Process Output Variable (POV).

Root Cause Validation - The act of setting all root cause factors to the levels determined by the
investigator to ensure that the desired outcome is achieved in reality.

RPN - See Risk Priority Number.

Run - 1. One set of treatment combinations that has been specified in the experimental design. For
more information about this term, see the Design of Experiments module. 2. On a Run Chart, a run is
the set of consecutive data points above or below the median line, or the data points within a specific
pattern.

Run Chart - A type of chart which quantifies and tracks data over time. Run Charts illustrate trends or
patterns in the data, highlighting where problems occur within a process and whether any variation is
special cause or common cause variation.

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Glossary S

Sample - A portion of the entire collection of data.

Sample Data - Observations made on items selected from a larger population.

Sample Plan - A structured, well-defined approach to gathering data required to infer population
parameters.

Sample Size - The number of observations made or number of items selected from a larger
population.

Sample Statistics - Characteristics that describe a sample of data.

Sampling - Sampling is the process of selecting samples to estimate a characteristic of the population.

Scatter Plot - A type of plot used to study the relationship between two variables. It requires either
continuous or discrete data. Each data point is plotted as a dot with a specific X and Y coordinate
value.

Scrap - A product, service or piece of information that does not conform to a customer standard,
cannot be corrected through rework and is discarded.

Senior Champion - The Senior Champion is an executive that provides day-to-day management and
direction for the entire Six Sigma program.

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Glossary S

Severity - An assessment of the seriousness of the effect of the potential Failure Mode upon the
customer.

Sigma Score - Six Sigma Process Capability level.

Significance Level - The significance level (also called level of significance) of a hypothesis test is the
maximum allowable probability of incorrectly rejecting the null hypothesis.

Simple Linear Regression - A technique in which a straight line is fitted to a set of data points to
measure the effect of a single independent variable. The slope of the line is the measured impact of
that variable.

Simple Random Sampling - A sampling technique in which every item of the population has the same
probability of being selected.

SIPOC - Acronym for Suppliers, Inputs, Process, Outputs and Customer. High-level process map
produced as a result of project selection and definition.

Six Sigma - Six Sigma encompasses several concepts: a statistical measure that identifies how well a
process is performing in comparison to customers' requirements, a business strategy that helps an
organization gain a competitive advantage, a philosophy that guides people to work smarter, not
harder, in order to achieve objectives and a methodology that provides a framework for how to work
smarter.

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Glossary S

Skewed - Data that is asymmetrical about the mean and is not normally distributed.

SOP - See Standard Operating Procedure.

SPC - See Statistical Process Control.

Special Cause Variation - An instance or event that impacts the process variation only under special
circumstances in which the circumstance can be clearly identified, or an anomaly that is not part of the
normal everyday variation encountered in the process. Sometimes referred to as unexpected variation.

Square Root - Square root of a number is another number which, when multiplied by itself (or
squared), equals the original number (e.g. square root of 25 is 5, because when 5 is multiplied by itself,
it yields 25.)

Stability - Stability is the amount of variability in the bias over time. It indicates the extent to which a
measurement remains constant and predictable over time with respect to accuracy and precision.

Stakeholders - Those affected by or who can influence the project, but who may or may not be directly
involved with project work. Stakeholders could include customers, suppliers, managers, process
owners, co-workers, internal support departments, etc.

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Glossary S

Standard Deviation - A measure of variability which describes the spread in a set of data. It is
approximately the average deviation of a single data point from the mean of that data set.

Standard Normal Distribution - A special case of the normal distribution in which the mean equals
zero and standard deviation equals one.

Standard Operating Procedure - Standard Operating Procedure (SOP) is an organized way of


disseminating information, regarding actions, responsibilities and preventive measures associated with
process variables. SOP's ensure a predictable output and reduce the chances for unintended variation.

Standardized Operation - The "one best way" to perform each operation as identified by statistical
analysis that becomes the standard operation/work procedure.

Statistical Process Control - Statistical Process Control (SPC) is a technique for collecting and
studying process data to monitor and improve process performance using statistical signals.

Statistical Solution - The statistical result of a problem expressed in statistical terms.

Statistically Independent - Data from a sample that is not influenced by the resulting data in another
sample.

Strata - Groups within a population whose members share certain homogeneous attributes unique to
their group.

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Glossary S

Stratified Random Sampling - A sampling technique in which the population is divided into relatively
homogeneous groups, or strata, and a random sample is drawn from within each group.

Subgroup Sampling - Subgroup Sampling, or Time Series Sampling, is a sampling technique used to
measure a set of values of a particular variable over a time period.

Sudden Shift - Occurs when data points show a marked shift in one direction.

Sum of Squares - The summation of the squared deviations. A deviation can be the difference
between the value of an observation in a sample and the sample average.

Systematic Random Sampling - A sampling technique in which every nth item is sampled for study.
The first item is selected at random, while subsequent items are selected at predefined intervals
across the whole population.

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Glossary T

Target I-MR Chart - A type of Control Chart for variable data that plots individual data as a difference
from a target and the moving range of the present and previous individual differences.

Target Proportion Value - A ratio, usually pertaining to a population, that is tested using a sample
proportion.

Target Value - A value, usually a population parameter such as mean, standard deviation or
proportion, that is tested using a sample.

T-Distribution - A symmetrical sampling distribution used to determine the confidence interval for
means and to perform hypothesis tests on means.

Team Charter - Document that defines the Integrated Process Team (IPT) and identifies the roles and
responsibilities of each team member in order to establish accountability.

Test of Association - A type of Chi-Square Hypothesis Test that examines the hypothesis of
association (non-independence) between attribute variables. This procedure is used to test if the
probabilities of items or subjects being classified for one variable depend upon the classification of the
other variables.

Test of Independence - A type of Chi-Square Hypothesis Test that examines the hypothesis of
association (non-independence) between attribute variables. This procedure is used to test if the
probabilities of items or subjects being classified for one variable depend upon the classification of the
other variables.

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Glossary T

Test of One Standard Deviation Against a Constant - A type of hypothesis test for standard
deviation that tests the standard deviation of a population (also known as target standard deviation)
using the standard deviation of a sample.

Test of Several Proportions - A type of hypothesis test for proportions that examines whether or not
two or more sample proportions of certain characteristics are independent of each other.

Test of Three or More Variances - A type of hypothesis test for standard deviation that examines the
variance between three or more samples.

Test of Two Variances - A type of hypothesis test for standard deviation that examines the variance
between two samples.

Test Statistic - A quantity calculated from a sample of data. The purpose of the test statistic is to
obtain a p-value in a hypothesis test.

Throughput Yield - Throughput Yield (YTP) is a measure of process performance at an opportunity. It


is a measure of the probability of that opportunity being correct with no rework.

Time Series Sampling - Time Series Sampling, or Subgroup Sampling, is a sampling technique used
to measure a set of values of a particular variable over a time period.

Tolerance - The difference between the Upper Specification Limit (USL) and the Lower Specification
Limit (LSL).

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Glossary T

Traditional Yield - The ratio of number of units that ultimately pass through the entire process to the
number of units that enter into the process. Equivalent to Final Yield, which equals output divided by
input.

Training Plan - Documentation describing required training associated with a process, as well as how
to ensure proper training is documented and administered to the appropriate employees, so as to
sustain the gains achieved by the project team.

Treatment Combination - A specific combination of factor levels for each factor being tested in a
Design of Experiments (DOE).

Trend - Gradual shift of data points in one direction.

Two-Sided Test - Hypothesis test in which the null hypothesis is rejected because the compared
values are not equal to one another, regardless of whether one is smaller (or larger) than the other. For
example, the alternative hypothesis for a Two-Sided Test will merely say p1 is not equal to p2, without
any consideration for which is smaller (or larger).

Type I Error - The result of wrongly rejecting the null hypothesis.

Type II Error - The result of not rejecting the null hypothesis when it should have been rejected.

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Glossary U

U Chart - A graphical display of number of defects per subgroup (part or unit) sampled with a constant
or variable sample size so as to detect special causes.

UCL - See Upper Control Limit.

Uniform Distribution - Uniform distribution is a continuous probability density function, which is


constant over an interval (say from "a" to "b") and zero outside that interval. For example, while
throwing a fair die, the probability of getting any number from 1 to 6 is the same (1/6) but the probability
of getting a number less than 1 or more than 6 is none.

Unit - The individual product, service or piece of information purchased by a customer. Depending on
scope, a unit can be a component of the larger unit.

Units Passed - The number of units that passed the final process test. The satisfactory units of output
of a process.

Units Submitted - The total number of units that entered a process.

Upper Control Limit - The Upper Control Limit (UCL) is a limit in the Control Chart, set above the
centerline, typically at +3 standard deviations, in order to determine if the process is in or out of control.

Upper Specification Limit - The Upper Specification Limit (LSL) is the upper limit of a tolerance range
specified by a customer requirement. A measured value that is above this limit is considered a defect.

USL - See Upper Specification Limit.

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Glossary V

Value-Added - Process steps that have a direct impact on the customer-perceived value.

Variable Data - Sometimes used in place of the term continuous data. Variable data is quantitative
data that can be divided to record values at different levels of magnitude. Examples include time,
distance and weight. Note: This definition is specific to Control Charts, as the data type is referred to
as continuous data in other phases of the DMAIC methodology.

Variance - The spread of a set of data points, measured as the average of the squared differences
between the data points and their mean. Also, the square of the standard deviation.

Variation - Used in reference to how data points are plotted with respect to a target value. Variation is
commonly thought of as the measure of spread represented in a data set.

Variation Component Study - A designed experiment that allows one to partition sources of
variability.

Versions - Iterations of a process map.

VOC - See Voice of the Customer.

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Glossary V

Voice of the Customer - Voice of the Customer (VOC) encompasses comments made by customers
that describe how they feel about a company's products, services and/or transactions. These
comments typically have no associated measurable standards. The company's responsibility is to
communicate with its customers to identify these measurable standards, so that requirements can be
met. These measurable standards become Customer Specification Limits.

Voice of the Process - Voice of the Process (VOP) encompasses the entire range of the output (Y) of
a process when all of the X's in the Y = f(x) equation have varied their full range.

VOP - See Voice of the Process.

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Glossary W

WBS - See Work Breakdown Structure.

Whisker - A vertical line drawn above and below the box on a Box Plot.

Within Variance - The component of variance that is present in each sample data set that is being
observed in an Analysis of Variance (ANOVA) test.

Work Breakdown Structure - A Work Breakdown Structure (WBS) is a Project Plan tool that divides
the work into activities, which are further divided into tasks and assigned completion times.

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Glossary X

X - An input to a process. It can be a controllable input or a noise variable. Also called a Process Input
Variable (PIV).

Xbar-R Chart - A type of Control Chart that plots the subgroup means and the subgroup ranges.

Xbar-S Chart - A type of Control Chart that plots the subgroup means and the subgroup standard
deviation.

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Glossary Y

Y - The output of a process, specifically a customer requirement. Also called a Process Output Variable
(POV).

Y = f(x) - The mathematical relationship that identifies the inputs (X's) that need to be controlled and
the levels they need to be set at to achieve the desired output (Y) to meet customer requirements.

Y = f(x) Cascade - A process in which an input is depicted as an output at the next level of specificity
using the Y = f(x) process equation.

Yield - The ratio of the number of units that meet certain criteria to the number of units that enter into
the process. The criteria determines if a yield is Traditional Yield or another kind of yield.

YF - See Final Yield.

YNORM - See Normalized Yield.

YRT - See Rolled Throughput Yield.

YTP - See Throughput Yield.

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Glossary Z

Z-Distribution - A special case of the normal distribution in which the mean equals zero and the
standard deviation equals one.

Z-Score - Standardized score for measuring process performance relative to customer requirements.

Z-Table - A statistical table of probabilities associated with the Z-distribution or standard normal
distribution.

Z-Transform - An equation that transfers a set of data represented by a normal distribution into a
standard normal distribution (mean equals zero and standard deviation equals one) by subtracting the
original mean from the data set and dividing the result by the original standard deviation.

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