I dedicate this book to my wife Dharshini, daughter Shreya, my mother Suguntha Seshadri and my father (late) Dr Ladavaram Seshadri.

Preface Why a Jargon Book? Business Excellence methodologies like Lean, Six Sigma, Kaizen, and many more help industries, institutions and even nations scale their operations and add more value to humanity. Like any other fields of science, art or management, the Business Excellence domain is also expanding very rapidly, growing every day, covering many aspects of business. Hence, the enthusiasts and practitioners are pushed to keep themselves abreast with the new tools and techniques. Any new tool or a technique is considered as a Jargon. This book is created keeping the needs of Lean Six Sigma enthusiasts like Project Sponsors, Champions, Managers, Green and Yellow Belts in mind, who often encounter some jargons every day in their excellence journey. During my initial days into the Excellence domain, I felt the need for such a resource. I spent a lot of time searching about the jargon I came across. It was difficult to find right, relevant, and ample information over internet searches as well. Any jargon ringing in your mind now? This Quick Reference Guide will help you grasp its essence and keep the oddity away. Cheers!

___________________________________________ LS Kannan

Table of Contents Preface ..................................................................................................... 5 Why a Jargon Book? ............................................................................ 5 1 Proportion Test ................................................................................... 21 1 Sample t-test ....................................................................................... 21 1 Way ANOVA ....................................................................................... 21 2 Proportion Test ................................................................................... 21 2 Sample t-test ....................................................................................... 22 3Ms of Kaizen ......................................................................................... 22 5S ........................................................................................................... 22 5W1H ..................................................................................................... 22 5W2H ..................................................................................................... 23 5 Why Analysis ....................................................................................... 24 6 Major Losses ....................................................................................... 25 6 Sigma .................................................................................................. 25 7 QC Tools ............................................................................................. 25 7 Wastes of Lean .................................................................................... 26 8D Report ............................................................................................... 26 8 Pillars of TPM ...................................................................................... 27 16 Losses of TPM ................................................................................... 28 A3 Report ............................................................................................... 28 Accuracy ................................................................................................. 30 Action Plan ............................................................................................. 31 Activity ................................................................................................... 31 Activity-based Costing ........................................................................... 31 Affinity diagram ...................................................................................... 31 Alias (in DoE) .......................................................................................... 31 Alternate Hypothesis.............................................................................. 31 Andon .................................................................................................... 31 Andon Board .......................................................................................... 32

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Lean Six Sigma - Jargon Book ____________________________ Andon Cord ........................................................................................... 32 Annual Inventory Turns (at plant level)................................................... 32 ANOVA .................................................................................................. 33 APQP (Advanced Product Quality Planning) ......................................... 34 Attribute ................................................................................................. 34 Attribute Agreement Analysis ................................................................ 34 Attribute Data ........................................................................................ 34 Autonomation (Meaning - Jidoka) ......................................................... 34 Autonomous Maintenance..................................................................... 35 Availability Rate ..................................................................................... 35 Bar Chart ................................................................................................ 35 Baseline.................................................................................................. 36 Bias (in gage R&R) .................................................................................. 36 Black Belt (BB) ........................................................................................ 36 Bell Curve............................................................................................... 37 Benchmarking ........................................................................................ 37 Bill of Material (BoM) ............................................................................. 37 Bottleneck .............................................................................................. 37 Bottomline ............................................................................................. 38 Box Plot.................................................................................................. 38 Whisker length ................................................................................... 38 Outlier ................................................................................................ 39 Boundaries ............................................................................................. 39 Brainstorming......................................................................................... 39 Breakthrough ......................................................................................... 39 Budget ................................................................................................... 39 Business Case (in project charter) .......................................................... 39 Business Process Reengineering (BPR) .................................................. 39 BVA (Business Value Adding Activities) ................................................. 40 C-Chart .................................................................................................. 40 CANDO ................................................................................................. 40 8

___________________________________________ LS Kannan

CAPA ...................................................................................................... 41 Carrying Costs ........................................................................................ 41 Cash-to-cash cycle ................................................................................. 41 Cause ..................................................................................................... 43 Cause & Effect Analysis .......................................................................... 43 Cause & Effect Diagram ......................................................................... 43 Central Limit Theorem ........................................................................... 44 Central Tendency ................................................................................... 44 Cellular Manufacturing ........................................................................... 44 Champion............................................................................................... 45 Changeover Time................................................................................... 45 Check sheet ........................................................................................... 46 Chi-Squared Test ................................................................................... 46 CLRI or CLTI or COTI ............................................................................. 46 Coefficient of Determination ................................................................. 47 Common Cause Variations..................................................................... 47 Communication Plan .............................................................................. 47 Concentration Diagram.......................................................................... 48 Confidence Interval ................................................................................ 48 Confidence Level ................................................................................... 49 Confounding (in DoE) ............................................................................ 51 Constraints ............................................................................................. 51 Consumer’s Risk ..................................................................................... 51 Containment Action ............................................................................... 52 Continuous Data .................................................................................... 52 Control Chart ......................................................................................... 52 Control Limits ......................................................................................... 54 Control Plan ........................................................................................... 54 CONWIP ................................................................................................ 54 Correction .............................................................................................. 54 Corrective Action ................................................................................... 56 9

Lean Six Sigma - Jargon Book ____________________________ Correlation ............................................................................................. 56 Correlation Coefficient........................................................................... 56 Cost Driver ............................................................................................. 56 Cost of Poor Quality (CoPQ) .................................................................. 57 Cost of Quality ....................................................................................... 57 Countermeasure .................................................................................... 57 Cp & Cpk ............................................................................................... 58 Critical of Quality (CTQ) ......................................................................... 58 Cross-functional team (CFT)................................................................... 58 CSVSM ................................................................................................... 59 Customer Satisfaction ............................................................................ 59 Cycle Time ............................................................................................. 59 Daily Work Management (DWM) ........................................................... 59 Data ....................................................................................................... 59 Data Transformation .............................................................................. 60 Defect .................................................................................................... 60 Defect Opportunity................................................................................ 60 Defective ................................................................................................ 61 Deming cycle ......................................................................................... 61 Descriptive Statistics .............................................................................. 61 Design of experiments (DOE) ................................................................ 62 Detection ............................................................................................... 63 DFA - Design for Assembly.................................................................... 63 DFMA - Design for Manufacturing & Assembly ..................................... 63 DFSS - Design for Six Sigma .................................................................. 63 DFMEA – Design Failure Mode and Effect Analysis .............................. 63 Direct Cost ............................................................................................. 64 Dispersion .............................................................................................. 64 DMADV .................................................................................................. 64 DMAIC ................................................................................................... 64 DPMO .................................................................................................... 64 10

___________________________________________ LS Kannan

Effectiveness .......................................................................................... 65 Efficiency ................................................................................................ 65 Effort – Benefit Analysis ......................................................................... 65 Effort – Benefit Matrix ............................................................................ 66 Entitlement (in Project Charter) .............................................................. 67 EOQ - Economic Order Quantity........................................................... 67 Exit Rate ................................................................................................. 68 Factors (in DoE) ...................................................................................... 68 Noise Factors ..................................................................................... 68 Control Factors................................................................................... 69 Lurking Factors ................................................................................... 69 Factorial Design ..................................................................................... 69 Full Factorial Designs ......................................................................... 69 Fractional Factorial Designs ............................................................... 70 Failure Mode .......................................................................................... 70 Failure mode analysis (FMA) .................................................................. 71 FMEA - Failure mode and effects analysis ............................................. 71 Severity............................................................................................... 71 Occurrence ......................................................................................... 71 Detection ........................................................................................... 71 First-Pass Yield ....................................................................................... 72 Fishbone diagram .................................................................................. 72 Fitness for use ........................................................................................ 72 Five-S (5S)............................................................................................... 72 Five W – One H (5W1H) ......................................................................... 72 Five W-Two H (5W2H) ............................................................................ 72 Five-Why Analysis .................................................................................. 72 Flow........................................................................................................ 72 Flowchart................................................................................................ 73 Frequency Distribution........................................................................... 73 FSVSM .................................................................................................... 73 11

Lean Six Sigma - Jargon Book ____________________________ Funnel experiment ................................................................................. 73 Gage R&R .............................................................................................. 73 Gantt Chart ............................................................................................ 74 Gemba ................................................................................................... 74 Gembutsu .............................................................................................. 74 Goal Statement ...................................................................................... 74 Green Belt (GB) ...................................................................................... 74 Heijunka ................................................................................................. 75 Hidden Factory ...................................................................................... 75 Histogram .............................................................................................. 75 House of Quality .................................................................................... 76 Hoshin Kanri ........................................................................................... 76 Hypothesis ............................................................................................. 76 Hypothesis Testing ................................................................................ 77 I-Chart .................................................................................................... 79 I-MR Chart .............................................................................................. 79 Improvement ......................................................................................... 79 Incremental Cost .................................................................................... 80 Inferential statistics ................................................................................ 80 Interaction Effect (in DoE) ...................................................................... 80 Inventory ................................................................................................ 81 Inventory Carrying Cost ......................................................................... 81 Inventory Turns or Inventory Turnover Ratio (ITR) ................................. 81 Inventory Turnover Ratio (ITR) ............................................................... 82 Is - Is Not Analysis (In Cause Identification) ........................................... 82 ISO 9001 ................................................................................................ 82 IQR ......................................................................................................... 83 Jidoka .................................................................................................... 83 Just-in-Time (JIT) .................................................................................... 84 JUSE ....................................................................................................... 84 Kaikaku ................................................................................................... 84 12

___________________________________________ LS Kannan

Kaizen ..................................................................................................... 84 Kaizen Event........................................................................................... 85 Kanban ................................................................................................... 85 Kano Model............................................................................................ 85 KPI .......................................................................................................... 86 KRA ........................................................................................................ 86 Kurtosis .................................................................................................. 86 Lead Time .............................................................................................. 87 Lean Manufacturing ............................................................................... 88 Level Scheduling .................................................................................... 88 Levels (in DoE)........................................................................................ 88 Linearity (in gage R&R) ........................................................................... 88 Line Balancing ........................................................................................ 88 Line chart................................................................................................ 89 Little’s Law.............................................................................................. 89 Long Term Standard Deviation .............................................................. 89 Low Hanging Fruits ................................................................................ 89 LCL ......................................................................................................... 90 LSL.......................................................................................................... 90 Main Effect (in DoE) ............................................................................... 90 Marginal Cost ......................................................................................... 90 Master Black Belt ................................................................................... 90 Matrix diagram (Relationship Matrix) ..................................................... 90 Matrix Plot (in statistics) .......................................................................... 90 Measurement ......................................................................................... 91 Measurement System............................................................................. 91 Measurement System Analysis ............................................................... 91 Mean ...................................................................................................... 92 Median ................................................................................................... 92 Mode ...................................................................................................... 92 MoQ ....................................................................................................... 92 13

Lean Six Sigma - Jargon Book ____________________________ MR (In statistics) ..................................................................................... 93 MTBF & MTTR ....................................................................................... 94 MTTR ..................................................................................................... 94 MTO (Make to Order) ............................................................................ 94 MTS (Make to Stock) .............................................................................. 94 Muda ...................................................................................................... 95 Mura ....................................................................................................... 95 Muri ........................................................................................................ 95 Natural Variation .................................................................................... 96 Noise Factors (in DoE) ........................................................................... 96 Non-conformance .................................................................................. 96 Non-Value Adding Activities (NVAs) ...................................................... 96 Normal Curve......................................................................................... 96 Normal Distribution ............................................................................... 96 Normality ............................................................................................... 97 NP Chart ................................................................................................ 97 Null Hypothesis ...................................................................................... 97 NVA (Non-Value Adding Activities) ....................................................... 98 OEE ........................................................................................................ 98 OFAT ..................................................................................................... 98 OOS ....................................................................................................... 99 OOT ....................................................................................................... 99 Operational Definition (in Six Sigma) ..................................................... 99 Outliers ................................................................................................ 100 P-Chart ................................................................................................. 100 PEEP..................................................................................................... 100 p-value ................................................................................................. 101 Paired t-test ......................................................................................... 101 Pareto Analysis ..................................................................................... 101 Pareto chart.......................................................................................... 102 Payback Period .................................................................................... 103 14

___________________________________________ LS Kannan

PCE ...................................................................................................... 103 PDCA ................................................................................................... 103 Peak Load............................................................................................. 103 Peak Period .......................................................................................... 103 Performance Rate (PR).......................................................................... 103 Plan-do-check-act (PDCA) cycle ........................................................... 104 Poka-yoke............................................................................................. 104 Population ............................................................................................ 104 PPAP (Production Part Approval Process) ............................................ 104 Precision ............................................................................................... 105 Preventive Action ................................................................................. 105 Problem ................................................................................................ 106 Problem-solving tools .......................................................................... 106 Problem Statement .............................................................................. 106 Process ................................................................................................. 106 Process Boundary................................................................................. 106 Process Capability ................................................................................ 107 Process Cycle Efficiency ....................................................................... 107 Process Flowchart ................................................................................ 108 Process Owner ..................................................................................... 110 Process Stability ................................................................................... 110 Producer’s Risk ..................................................................................... 112 Project Charter ..................................................................................... 112 Project y ............................................................................................... 112 Pull & Push System ............................................................................... 113 Quality .................................................................................................. 114 QbD (Quality by Design) ...................................................................... 114 QDC (Qucik Die Change) ..................................................................... 115 Quality Circles ...................................................................................... 115 Quality Control..................................................................................... 115 Quality Function Deployment (QFD) ................................................... 115 15