TABLE OF CONTENTS

Control Charts……….2 Graphs ..........20

Box Plots………5 Brainstorming Tools..........21

Defect Formulas……5 Muda...........22

Rummler Brach……….5 Failure Mode Effect Analysis (FMEA).......22

Standard Deviation……….6 DMAIC & Tollgate Checklists.......23

Sigma Formula ……….7 DMAIC Analysis Methods.......24

Process Capability(Cpk) Formula..........7

VOC Tools……….8 6 Team Members............26

Histograms & Normal Distribution Types………9 DMAIC Toolset Overview........27

Normal Distribution Percentages……….10 Critical to Quality (CTQs).......27

Chi-squared & Goodness-of-Fit……….10 Data Types..........28

Correlation & Line of Best Fit……….10 Sampling Methods………29

Correlation Coefficient (R) ……….11 Decision Trees………29

Linear Regression & r2................11

Non-Normal Discrete Distributions.........12

Non-Normal Continuous Distributions.........12

Hypothesis Testing Errors..........16

Hypothesis Tests - Discrete Data .........17

Hypothesis Tests - Continuous Data..........17

Hypothesis Tests- Continuous Non-Normal Data.........18

Information Choosing Sample Size.........19

Sample Size Calculations.........19

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Control Charts

IN CONTROL Vs. OUT OF CONTROL in a control chart is dependent on Average & Range

CONTROL CHART INTERPRETATION (ASQ )

2
Rule Rule Name Pattern (CSSC) Chart
CONTROL CHART RULES

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 1 Beyond Limits One or more points outside of the LCL and UCL
2 Trend 9 points in a row appear on 1 side of the average line (xbar)
3 Mixture 5 points on the chart increase or decrease in a row
4 Over-Control 14 points in a row alternating up and down
5 Zone A 2 out of 3 points in a row are in the Upper A or Lower A section
6 Zone B 4 out of 5 points in a row in upper or lower B section (or Beyond)
7 Zone C 8 points in a row are located on either size of center line, but none
are located in C section
8 Stratification 15 points in a row located in section C (above or below xbar line
doesn’t matter)

ASQ Chart

Type of Control Charts

3 variable (continuous) charts 4 Discrete charts
● X bar-R chart ● P-chart
● X bar – S chart ● NP-chart
● I-MR Chart ● U-chart
● C-chart

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 Control Chart Description Grouping Good For
X bar- R chart ○ Data Tracks stability of the ○ Data count in each ○ Avg defects/hr
mean subgr. must be < 8 ○Avg # customers/day
○ Data is variable (cont.) ○ Xbar charts mean of ○ Production mean/hr
○ Data is subgrouped each subgroup
○ R chart plots range
X bar- S chart ○ Data is variable(cont.) ○ Data count in each
○ Data is subgrouped subgr is > 8
○ Calculates sigma easily ○ Xbar charts mean of
each subgroup
○ S chart plots STD
I-MR Chart ○ Data is variable (cont.) ○ Data can’t be in ○ Products that have low
(Individual Moving ○ Data is presented as a subgroups (must track cycle time
Range Chart) percentage indiv. Data point instead ○ Unequal sample sizes
of subgr. Means)
Why?: bc production is
v. slow and data is v
expensive. Not feasible to
collect enough
samples.

P chart ○ Data is discrete ○ Doesn’t need a ○ Impossible, v time

○ Data presented as % (percent constant consuming or not financially
defective); not a count sample/subgr. Size feasibile data measurement
○ Plots prop. of units that ○ samples or subgr. That are not
are non- conforming = (% of defects more imp than #
(meaning they are of defects/ gr.)
defective; don’t meet ○ Data that is rate-based (bc it
specifications) comes from a
binomial/attrib. proc.)

NP Chart ○ Data is discrete ○ Requires a constant

○ Data is presented as a % sample size.
(percent defective; not count) ○ Plots # of units that are
non-conforming in each
sample

U chart ○ Data is discrete ○ Doesn’t require a ○ When data is about

○ Data is presented as count (# of constant sample size. defects themselves, not the
defects) ○ Plots # of defects overall defective product.
per sample)

C Chart ○ Data is discrete ○ Requires a constant ○ When data is about defect

○ Data is presented as a sample size themselves and not the
count (# of defects) ○ Plots # of overall defective product.
defects/sample
RARELY USED CHARTS
I MR chart (within/between) ○ Provides a 3 way chart that ○ Variation is not ○ Variation btwn batches is high
indicates variation within a group randomly distributed. compared to variation within
and between group batches

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Exponentially weighed Prov. Individual and moving range **rarely used/difficult to work Dealing with automatic data
moving avg. (EWMA) graph with. systems

Cumulative Sum Deals w/ cumulative sum of the adept at detecting small shifts
(CUSUM) deviations of each sample as they relate from a target (esp. for a proc in
to target value control)

Box Plots (How to Read Them)

1. The shorter box indicates that the middle 50% of children completed the mil-long run in times that had less variation
than the middle 50% of adults.
2. Top of the box = 75th percentile Bottom
represents the 25th percentile
3. The line within the box represents the 50th Percentile within the box are the 50 percent of data points between the
25th and 75th percentile.
4. The whiskers indicate the range of most of the data within the set.
5.
(Note: Excel creates whiskers that extend to the to p and bottom of range, barring any statistical outliers. )

Defects Formulas
Online Calculator for DPMO/DPU/sigma level
Defects per Million Opportunities – DPMO Formula hetal
2022-04-25 21:11:04
(number of defects in a sample/ Opportunities for defects in the --------------------------------------------
sample) * 1,000,000 DPU calculator
https://www.easycalculation.com/engineering/mechanical/defects-
Defects Per Unit Formula – DPU Formula Defects per Unit measures an per-unit.php
average level of quality by looking at how many defects there are in relation to the
number of units tested. It is concerned with total defects and accounts for the fact that
one unit could have more than one defect.
First Time Yield – FTY Formula FTY is the ratio of units produced to units attempted to produce. # of good
units produced / # of units entering the process

Rolled Throughput Yield – RTY Formula RTY provides a probability that a unit will be generated by a process
with no defects. (# of units entering – (scrap + rework))/ # of units entering process RTY considers
whether rework was needed to generate the number of final units; FTY does not.

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Low RTY indicates that there is waste in the process in the form of rework. Does not provide info on final sales or
production. Example of Single Process and Multi-process chain. on pg. 10 of study guide

Rummler Brache
Key component: Nine Boxes Model
Pioneered by: Geary Rummler & Alan
Brache.
Method: Seeks to affect + change in
processes and organizations.
 3 performance levels (performer,
process, and org.)
 3 performance dimensions
(management, design, and goals.)

Standard Deviation
Calculating STD for population data:

EX:

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Calculating STD for sample data

Pareto Chart

EX:

Sigma Formula
USL (upper specification limit) LSL
(Lower specification limit)
(Median) | (STD) | SL = significance level
The equation for sigma level is whichever (USL or LSL) is closer to
the median

EX: Median = 4.2 | STD = .25 |USL = 5 | LSL = 3. Would use USL equation at 4.2 is closer to 5 than 3.

(Cpk)Process Capability Formula  Sigma level / 3

EX: 3.2 / 3 = 1.6 as capability of the process

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Vocie of the Customer – VOC tools

9
Normal Probability Distributions

Normal Probability Graphs: Histograms

Histograms & Distribution Types

Helps us see how distribution of data spread is shaped

Distribution Type Description Happens When…

Normal (Gaussian) Bell Curve. Most important Data surrounds the mean. Used to determine the
distrib. r/t continuous data. probability that a given data point in a population will fall
Shaped symmetrically inside a certain range within a
(represented by xbar) distribution.
Bi-Modal 2 data concentrations or humps on You are measuring 2 processes you believed were 1
a histogram. process.
Note: If you do get a bi-modal graph for just 1
process, your data isn’t normal.
Skewed Data is clustered at only one end Data “falls off” at a naturally cut-off time
of the graph
Random Error lies within the data Data measurements process or measurement might not be
measurement process adequate to capture the process. OR that an operation or how
to collect data may be at fault

# of bins (x axis—your range) you

choose is imp.
1. Too few bins: graph won’t
provide any relevant information
2. Too many bins: you lose
informative functionality of
graph. Graph likely to look like
a comb.

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Normal Distribution Percentages
● 86.2% data falls within ± 1 STD from the mean (red arrow)
● 95.45% of data falls within ± 2 STDs from the mean
(blue arrow)
● 99.73# of data falls within ± 3 STDs from the mean
(purple arrow)
● < 1% of data falls under curve; outside of 3 STDs on either
side.

Chi-squared Goodness-of-Fit
CSSC Chi Squared Goodness of Fit: takes the number of samples on a histogram and compares them to the # of
samples you might expect to find in each bin, given a normal curve.
ASQ Chi squared goodness of fit test tells how well a categorical (nominal or ordinal) sample distribution fit into a
hypothetical distribution. AKA Test is used to check if your sample data is consistent with your hypothesized
distribution of a population. It is a non-parametric test.

Chi-squared (X2) Formula ( chi sq or chi square )

- Allows us to calculate the P-value  Then accept or reject the null hypothesis
- Chi sq. is the best method to test a population variance against a known or assumed value of the population
variance. It is also used to test chi-sq goodness of fit and confidences surrounding variance and STD for a
random var. from a normal distribution.
- P Value : > 0.05; accept the null and data is distributed normally

Degrees of Freedom Formula

OR
Where: # bins = rows | # Calculated parameters –i.e. if using STD and mean , # = 2

Correlation & Line of Best Fit

Correlation is the linear association that exists between two variables. Graph: X, Y scatterplot
Positive Correlation: one var. ▲as another variable ▲
Negative Correlation: One var. ▼ as another var. ▲ Line of
Best Fit tells us how strong or weak a correlation is.
Strong correlation, will touch many or all of the points
on a graph.

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 Weak correlation, there will be, roughly an equal number
of data points above and below the trend line

No correlation, data points will be randomly scattered over the graph.

Trend line will be almost horizontal. (horizontal lines indicate lack of
correlation, as a rule of thumb.)
Correlation Coefficient (R value)
A number between -1 & 1.
The closer the R-value gets to either -1 or 1 = the relationship between the 2 variables is considered stronger or more
likely
Correlation Coefficient Trend
=1 Definitely on the + trend line
= -1 Definitely on the - trend line
=0 No relationship; no trend line
* Most times # will fall between 0 & 1 or 0 & -1
R Value Equation
Most popular: Pearson’s Correlation (r=)
2nd most popular: Sum of Squares (R=)
**Correlation is considered to occur at some level if R value is either > 0.4 or < -0. In Excel – to4
calculate use CORREL(
Where: Times = column A values Temp A
= Column B values

Linear Regression
Helps you predict how one variable might behave given changes in the other variable. (Note:
changes aren’t always an indication of cause.)
 Correlation of Determination ( r2 - The square of R- the correl. Coeff.) r2 tells us the strength of the linear
relationship between two variables (x & y); tells us how confident we can be in the line of best fit to make
predictions about data.
o R: how strong the relationship is/ how likely it is that 2 variables are related.
EX: If R = 0. 860 , r2 = 0.8602 = 0.74 =only about 74% of the time is variation in X relate to change in Y (ie temp and
time)
 r2 is always a 0 & 1 ; the closer to it is to 1, the more likely variation in X is correlated to variation in Y
FACTORS OF CORRELATION AND REGRESSION
 Correlation and Regression work with both continuous and ratio data.
 Correlation and Regression both must be quantitative in nature.
 Correlation requires 2 quantifiable data elements
 Regression requires data written as a function: y=f(x)
o Distance (is function of time, speed, acceleration)
o Hardness of Substance (is a function of temperature, alloy, etc.)
o Experienced (feels like) temperature (is a function of actual temp, wind, humidity, etc.)
o BMI (is a function of height and weight)

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  Correlation and Regression can be used to help validate and assumption if a team believes causation is a factor
in the problem process.

Non-Normal Discrete Distributions

Distribution Definitions Properties Use
Binomial Dealing with discrete data Assume that the outcome of Check if something in
and there are only two any given trial is process has changes to
outcomes for each trial independent of the outcome improve process erf.
Probability of success of another trial. Measure if system is
(P) Probability is always 50- 50 defectives
Probability of failure (1 Measure if samples are not
– P) truly random.

Poisson Essentially measure # of Curve is based on the mean Dealing with data that is
events/ future events Tail curved slightly to the randomly distributed w/in:
i.e., number of occurrences right (a slight + skew) 1. Time
within a fixed time period. 2. Distance
Other units of
As it is discrete data, would measuments that are per-
need to convert to something)
exponential curve to stat
analyze.

Binomial Distribution Probability Function

**USE A BINOMIAL CALCULATOR!!

Binomial
Function example:
* Binomial distribs allows us to tie costs to defects in
real -world application
Example: use 20 trials with a 0.05% defective part
and we want a yield of 4 defective parts
P(x) = .013  the probability of pulling 4 defective parts
is very low.

Poisson Equation
Poisson can be used when you describe your data as such:
1. Data describes events that occur at random interval measurement
The word “per” is usually involved
2. The sample size (# of intervals) is at 16.
Ie if in hours, must have 16 hours of data.
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 3. Event occurrences are indepent of each other.
a. i.e, in typing errors. If person types “n” instead of “b” that’s 1 error, as the backspace doesn’t count.
The backspace is dependent on the person making the error. The error would have to be independent
of the typing error, like tping “y” instead of “u”, then the “n” and “y” = 2 errors.
4. The probability of occurences is < 0.1
a. If an employee makes 8-12 errors an hour, and the average rate of entry for employees is
8000 hours, the keystroke error rate is below 0.1.
5. The rate of occurrence per interval is constant.
a. i.e., the average number of phone calls per hour is 50, the average number of errors per hour is 6.
If your data fits the Poisson distribution, use the Poisson Formula & Poisson Constant
POISSON CALCULATOR
(where lambda ( λ ) is current average (10 in ex. Below) // and X is likelihood of specific data point (5 in ex below)

Example: What is the probability that there are 15 callers on hold at a given time, where an avg. number of people on
hold for a customer service re at any given time is 10? More explanation on pg. 293-294 of manual

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Poisson Table: that shows probability of x within P(x)
(summing the probabilities for each X provides a total probability that x will be less than 15 of 0.9165. )

Other Non-Normal Discrete Distributions

Distribution Definition Properties Uses
Geometric Used when there are 2 Outcome of each trial must # of inspections that
outcomes for a trail and be independent occur before finding
the trials are independent defective part
and there is a waiting time # of resumes or applications
before the first occurrance a recruiter views b4 finding
the 1st candidate that means
the job req.

Negative Binomial Used wit attribute Outcomes of each trial must Teams are trying to
data( Y/N) and other be independent of each determine (p) of certain #
situations where there are other. of passes/fails before
only two outcome for each Probability of an occurance reaching nth pass or fail
trials must be the same across
each
trial

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 Non-Normal Continuous Distributions
3 most common:
Exponential, Weibull, & lognormal

 Exponential Curve

Distribution (non-normal) Definition Properties Uses

Exponential Uses median; not mean -Described by mean of data and 1. arrival times
((50% of data falls both lambda value 2. Constant failure rates
before and above the -Anatomy: never 3. Wait-line theories
median) Describes rate of symmetrical 4. Dist. in time or space
change within data -Most oftenPoisson or binomial 5. Interesting points of
that is distributed in a on histograms occurrence in data
Poisson distribution.

Lognormal Appears exponential in -Describes large ranges of data 1. Time duration

nature, but constrained -Always + skew (to the right) 2. Distrib. Of assets
by 0. -Described by Mean & STD 3. whatever data has + skew
(tail of data leaning right)

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 Weibull “time to May fit either normal or non- 1. reliability
failure” normal distributions. 2. Medical Research
-can take many shapes
3. Failure probabilities that
change or vary with time

Cauchy Does have defined mean or Elongated curve w/ tight peak

variance
Logistic Apperas approximate to Cumulative density function
normal curve; sometimes (CDF) of logistic model is more
used to approximate other consistently calculable .
symmetric distribs.

Laplace Pairs exponential distribs Aka bilateral exponential

back to back distrib or double
exponential distrib.

Hypothesis Testing Errors

TYPE 1 ERROR: Null Hypothesis is correct; but is incorrectly rejected (H0 is rejected when it is true)
 AKA: Producer Risk
 Alpha Risk: Chance of Making a Type A (Type I) error
 **Typically, more worried about Type A errors (incorrectly rejecting a correct H0 error)
TYPE 2 ERROR: Null Hypothesis is incorrect; but is not rejected (H0 is accepted when it is actually false)
 AKA Consumer Risk
 Beta Risk: Chance of Making a Type B (Type II) error
 Acceptable Risk level: 95% confidence interval where α = 0.05 (The confidence level is set with the type I
error in mind. )
 The value of β contributes to the sample size (n) requirement and the power.

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 Hypothesis statistical Tests (for Discrete Data)
Hypothesis test Set-up Uses Data
Type
1-Proportion Test H0: Psample = Ptarget ▪ When there is only 1 factor for x Discrete
▪ When there is only 1 level of interest for x (the
Ha: Psample ≠ Ptarget input).
○ Typically 1 set of data (the sample,
*Req samples in columns or summary of and a target
data to include # of
events, trials, and hypothesized proportion

2-proportion Test H0: P 1 = P2 ▪ When there is only 1 factor for x Discrete

▪ When there is 2 levels of interest for x (the
Ha: P 1 ≠ P2 input).
○ Typically 2 data sets (comparing the 2
*Req samples in columns )
▪ When comparing proportions (%age rates) btwn
samples or btwn [samples and a target]

Example of 1-proportion test:

H0: There is no difference in failure rates between classes taught in classroom A compared to other classrooms.
Pclassroom = Pelsewhere Pclassroom =
0.2
Ha: The rate of failure is greater for those taught in classroom A compared to other classrms Pclassroom > Pelsewhere
Pclassroom > 0.2
Example of 2-proportion test: Say alt. Hyp. Is correct; and Classes taught in classroom A are now taught
in Classroom B. (now you have old classroom & new Classroom data – 2 levels)

H0: There is no difference in failure rates between the old and new classroom
Pold = Pnew

Ha: The rate of failure is less in the new classroom

Pold >Pnew
Hypothesis Testing for Continuous Normal Data
Test (Continuous Uses Requirements
Normal)
1-Sample T Test (Paired T ▪ Used when comparing means (compares mean of STD, mean sample size, and
Test) sample to either a (1) target mean target (or hypothesized mean)
or (2) another sample for the same factor of x [– gen.
1st sample is baseline sample]
▪ Used when dealing with smaller samples when
STD is known

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Chi-squared Test ( 1- ▪ Used when comparing STD or variance Sample data in 2 columns OR
variance test) ▪compares STD/Variance btwn 2 samples of the summary data to incl. sample
same x factor. (usually when one sample is taken size w/ either STD or sample
after a change to the process) variance and a
hypothesized STD/variance

2-sample T Test ▪ Used when comparing means Sample of data in 2 columns

▪ Compares means btwn 2 different samples of OR
different x factor summary data to incl. sample
size, sample mean, and STD for
** differs from 1 sample tests in that you are both samples.
comparing two samples from two different populations
Req you to note whether equal
variance btwn 2 samples are
assumed or not.

Hypothesis Testing for Continuous Non-Normal Data

Test (Cont. non- normal) Uses

Chi square test ▪ used to compare STD btwn a sample and a

hypothesized STD when data is not normal
1 sample Wilcox ▪ Used when comparing medians
-Compares medians btwn a sample and a hypothesized sample
OR
- new sample to a previous sample before changes were made.
Typically used when data is somewhat symmetrical, otherwise use a
1-sample sign test.
Req: data in columns and the hypothesized mean

Mann-Whitney ▪ Used when comparing medians

- Compares medians btwn samples of 2 factors of x
Req: sample data in columns only

Deciding on a hypothesis Test

a. Decide on type of data
b. Statistic you are using ( mean, median, variance)
c. How many data sets you have.
d. I testing > 2 data sets, use ANOVA
e. interpret your p-value and compare to alpha value (.05)/CL = 95%
- if P-value less than alpha value, reject the null; accept the alt.
- if P-value greater than alpha value, accept the null

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Information used for Choosing Sample Size
1. Alpha
2. Beta (set by tester and a sample size calculated from that number.) If sample size is fixed, Tester usually sets
alpha and calculates beta risk from the sample size. (beta = risk of making a type II error)
3. Delta (practical difference the tester wants to detect using the test)
4. Standard Deviation (estimated population std)
5. Type of Data (discrete or continuous)
6. Type of Test (which hypothesis test)
*note, in drug trials, alpha values are set to .01/CL 99% (makes it unlikely that alt. hypothesis would be accepted- if it
wasn’t’ correct.)
Selection of Alpha: thin about “costs associated w/ an unnecessary change if the null hypothesis is incorrectly rejected.
Selection of Beta think about “what is potential cost of a type II error if a team mistakenly does not
reject the null hypothesis (when they should rejected it).
Selection of Delta: How small does the difference have to be before it becomes practically insignificant to the customer?
Delta is the critical difference and should be basedon business needs. Delta can often be expressed in terms of sigma or
STD, i.e, we want to detect the difference of 5 sigma or 2 sigma.

Sample Type Alpha Setting Beta Setting Delta Setting

Means for Continuous data .05 .10 or .20 Set delta with absolute values
(AND you have some info on (in minitab, make it a fx std: .5 ,1 ,
the pop. 2 )
Including STD)
Variance for continuous data .05 .10 or .20 Set delta to > 1
(in minitab, make it a fx std: .5 ,1 ,
2 )
Proportions for .05 .10 or .20 Set delta according to business needs
Discrete/Binomial data (in minitab, make it a fx std: .5 ,1 ,
2 )

Unknown Population .05 .5 Set delta to a proportion in keeping with a

(survey sampling) STD of 1

*setting beta to .10 or .20 gives you a power of .90 or .80  .90 is less likely to produce a type II error, but requires a
much larger sample size.)
** power = 1 - beta

Sample size Calculation Tests

Sample Size Calculation Used for Populations or differences
1 sample T test -Means Testing You already have sample statistics
- Comparing to a target value about the pop.
1 sample Z test - Means testing You do not have sample
- Comparing to a target value statistics about the pop. (STD not
known)
2 sample T Test -Means Testing
- Comparing means from 2 sets of data

2 sample Variance Test -Variance Testing

- Comparing variance from 2 sets of
data

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1 sample Variance Test -Variance Testing
-Comparing Variance of one data set
to a target
1 sample Proportion Test -Proportion Testing (rate of x per y)
- Comparing rate of one data set to a
target

2 sample Proportion Test -Proportion Testing (rate of x per y)

-Comparing rate from 2 sets of data

Analysis of Variance (ANOVA) Test -Means Testing - Only 1 factor for x

- More than 2 sets of data
Design of Experiment (DOE) -Means Testing -More than one factor for x
-More than 2 sets of data

Graphs
Graph name Uses Pro/Con/examples
Bar Chart Clarifies basic trends, see data sets in range H to L, Requires ordinal data which is
identifies easy visually skewed data qualitative. (You can use pareto chart
for nominal data.)
CTQ Tree Level 1:Begins broad with customer needs; Level 2:
(critical to narrower with drivers needed for cust. Needs to be met
quality) (i.e., secure storage, multi-loc) Level 3 Drivers used to
create requirements, the more specific the better. (i.e.,
24/7 crisis hotline,
compliance team,)
DMAIC toolset ○ 5 Whys ○ stakeholder
analysis
○ SIPOC Process Map ○ in/out of box
method
○ Value stream map ○ is/is not matrix
Gantt Chart Adapted by Henry Ganntt. Bar chart that displays Pro: good for displaying rough
phases on the project timeline proj. schedule and is easily visual.

Histogram Bimodal Histogram Requires Continuous, Various, or finite

outcomes from population
sampling
Bi-Modal Likert Scale If you get a bi-modal graph from a
Histogram true single process; data isn’t normal

Likert Scale 5 point ranking scale that is coded numerically Very good |Good |Neutral | Bad | Very
bad
Pie Chart Summarized large amounts of data and identifies obvi.
Problems with data or
calculations. Displays relevance of subset data with total
data set.
Run Chart Used to monitor performance of a variable over time.
Displays: trends, shifts, cycles, w/in a process.

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SIPOC Used during D of DMAIC; helps us understand process
components and relevance by using ordered swimlanes
S = Supplier: pple, proc, orgs that supply the product
I = Input: pple,proc, orgs that use the output
P = Process: series of steps that take inputs and make
them outputs
O = Output
C = Customer
(technical best order is POCIS)
X-Y Scatter Visually depicts the r/ship (correlation) btwn 2 factors in a
diagram proc. (ie. Does Temp decr. Over time?)
Box Plots Good 4 identifying differences btwn distributions that are Validates Root Cause analysis
(Box and clearly marked or when data has obvious outliers.
whisker Needs 2 data sets & can only alter 1 attribute
diagram)
Spaghetti Diagram Useful for looking at movement in a process- esp if you want
(Bird’s eye view) to eliminate muda of motion.

Project Charter Used in define phase to set expectations that can be agreed Gives info on what teams plan to
(A3) upon by team, sponsors, and leads. accomplish and keeps pple goal
focused.
Stem and leaf plot Used to show frequency w/ which certain classes of value exist.
Calcs. Mean|Media|Mode|Upper
Quartile Range|Lower Quartile Range|Quartile range

Brainstorming tools
Tool Definition Example/Notes
5 Whys Asks increasingly granular “why” questions 5 times. Is Define – DMAIC
the 2nd best way to validate y = f(x).
NOTE: Cannot be used to define a problem statement
In & Out of Box Method Helps define scope; Items in Define - DMAIC
box = in scope
Item outside box = out of scope Items on
line = unsure
Is/Is not Matrix Helps define scope Define - DMAIC
Defines what is and isn’t for the: Where
When | Where | Why Is : South Plant
Is not: east Plant
Jumpstart Fast paced method for identifying problems and solutions in a
single session
Fishbone Diagram Main brainstorming tool of a root cause analysis. Helps identify
(cause and effect diagram) priorities, trends, and relationships between ideas

Stakeholder Analysis A way to prioritize how people in organization relate to the project Define - DMAIC
and how to keep them informed.

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 Muda
Muda Definition How to resolve Setting (if applic.)
Overproduction Product made too fast in too much Advanced planning
quantity or @ wrong time
Correction (rework) Org may implement qual. Process Issue: rework can be seen as Call centers &
check that routes work w/ defects needed. ID and remove root cause digital work queues.
back for correction. of rework
Increases Process time, materials,
labor resources.
Inventory When materials or input stack up b4 a Understand process and base Processes that operate
step in the process, inventory; use historic metrics in batch
creating a bottleneck *avoid batch processing. production
Motion How employees move during a process Streamline the process; analyze People powered
data to ID unnecessary movement. procs: shipping,
Analysis: spaghetti Diagram (aka manufacturing,
birds eye view diagram) delivery, etc.

Conveyance Movement of outputs, products, & Use a computer to send multiple

resources. Aka: muda of things at once/to
transportation many people
Over- Processing When an employee or process inputs Create a value stream map to
more resources into a product than is identify points of over- processing.
valued by the customer

Waiting Idle time in a process. Occurs when aAdvance Planning

proc. Is not coordinated properly or Balance Machines, People &
reliable. Production (must balance all; not
just 1 for it to work.)
Type I MUDA: Non-value added (NVA) tasks- may be essential or req. (i.e., quality inspection) Type II MUDA:
NVA tasks that are non-essential and can be removed from the process.

Failure Mode Effect Analysis

Used in Analysis phase of DMAIC to set stage for a RCA by identifying info about inputs and possible failure points in
a process.

Steps Definition Example

Step 1: Process Step Identify all possible inputs, steps, activities 1. Refund request made
2. Refund check printed
Step 2: Potential Failure Indicate what might go wrong in each process step Printed check has defect

Step 3: Potential Failure Effect Describe impact of failure on customer Customer cannot cash check
Step 4: Severity (SEV) Severity rate of possible failure 1 (no effect) – 10 (severe effects)
Step 5: Potential cause of Failure Specific reasons failure might occur Printer ran out of ink
Step 6: Occurrence (OCC) Rating of how oft. Failure can be expected. 1 (never occurs) to 10 (occurs
frequently)
Step 7: Current Monitor and Control Description of current processes in place to Person who signs check reviews check
monitor/prevent failures for errors.
Step 8: Detection (DET) Rate ability of process/staff to detect error 1 (always detects) – 10 (no detections)

Step 9: Risk Priority Number (RPN) Calculation: SEV x OCC x DET

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DMAIC & Tollgate Checklists

Phase Definition Time in phase

Define Teams create a project charter, roughly defining problem statement, goals,
scope, roles, etc. Also a time to identify stakeholders. Define “what the
process does and how it works”
Measure Team is focused on creating a baseline metric for the process, refining
problem statement, and other outputs. May include a storming stage where
teams question viability of the project.
Analyze Where teams identify root cause for a problem and use statistical analysis
tools to verify causes.
Improve Conduct pilots and learn – take parts of solutions of pilots and execute them 8-10 wks
in the full-scale implementation.
Control Control the improvement; assuring new process doesn’t revert always
back to old ways. At the end, return process back to owner. Implement
whatever changes decided on during the Improve phase for the new process.

Tollgate Steps included

Define 1. Complete Project statement
2. Team Charter
3. Understand process
4. Understand Voice of the Customer (VOC)
5. Define success.
Measure 1. Have baseline measurement
2. Have Key measures
3. Calc. process variation (determined by sigma level)
4. Conduct/choose approp. Sampling method
5. Have sponsor/champion review & sign-off

Analyze 1. Root causes identified and prioritized

2. Root cause backed by statistical data if poss.
3. Relationships btwn variables are understood
4. Relationships btwn variables are confirmed with
stat. analysis if poss.
Improve 1. 1-2 solutions selected for action
2. Solutions implemented in pilot/limited basis
3. Data from pilot is analyzed and solutions work
4. Cost benefit analysis performed
5. Sponsor/Champion reviews & signs-off
Control 1. Team Calculates performance and capability of new
process
2. Written control plan
3. Created a way to monitor process
4. Provides process owner w/ tools to maintain process
over time.
5. Reflect on project & generate ideas for future
project/project improvement
6. Celebrate team’s accomplishments

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DMAIC Analysis Methods
Method Definition Phases/ method
Design of Experiment Provides granular details and analysis required for Phase: Analyze -DMAIC
complex relationships or multiple
variables
Root Cause After finding a root cause, must verify if the root Phase: Analyze - DMAIC Method:
Verification Matrix cause is valid. Good method to document verification Stat. analysis, DoE, GEMBA,
of a root cause. Process Map, gather more data and
graph.
Regression Analysis The r/ship between the indep. and dep. Variable. R/ship Method: Scatterplot (both var.s must
exists when are points are tightly gathered around be in numerical format)
trendline. Phase: Analyze - DMAIC

Graphical Analysis Used to validate root causes Method: Pareto Chart & Box Plots
Phase: Analyze- DMAIC

Hypothesis Testing Draws conclusions abt. A population based on Phase: Analyze- DMAIC
statistical analysis found on a sample
Alpha-beta risk Risk that a sample doesn’t offer a good Phase: analyze- DMAIC Beta:
representation of the population. helps calculate P value
Cost- Benefit Analysis Compares cost of implementing a solution w/ Phase: Improve- DMAIC
monetary benefit expected from solutions.
Formula:
(Cost of implementing solution)
÷
(Annual Financial benefits – Annual costs)

Net Present Value (NPV) Concise way of calculating cost- benefits.. Adjusts Phase: Improve- DMAIC
cost as time passes (bc future profit isn’t as
important as current profit d/t
inflation) * can give you the discount rate.
Control Plan Helps process owners to track and respond to key Phase: Control - DMAIC
performance indicators, so process remains
improved. Parts of a control plan include:
- How to monitor
- when to monitor
- date ranges for monitoring and data
- Method of measurement
-Corrective action if not meeting a requirement

Attribute Gage R & R Used when analyzing measurement systems for go/no
go data. Requires. At least 2 appraisers. Shows if the
measurement is reproducible with and repeatable by
conducting it more than once.
Phase: Measure - DMAIC
Solution Selection analytical tool that ranks solutions for any of the root Phase: Improve - DMAIC
Matrix causes identified in the analyze phase.

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Affinity Diagram Good technique for identifying and displaying Phase: Improve - DMAIC
potential root causes for unfamiliar problems.

Triz helps innovate by exploring solutions outside the Phase: Improve - DMAIC
boundaries of the process itself. Used when typical 6
sigma practices don’t
adequately address the problem.
Poka Yolk act of error proofing a process through great design. Phase: Improve - DMAIC
(defining requirements. and ensuring continuous
flows are good things but not part of error-proofing
process)

Takt Time Used to sync pace of production with pace of sales Phase: Improve - DMAIC
(helps remove/avoid waste)
5S Straighten | Shine | Standardize | Sustain Phase: Improve - DMAIC
Control Chart Tells us if a process is in or out of control Phase: Control - DMAIC
Visual Management Visual management controls include: Phase: Control - DMAIC
-Signs
- Posted matrixes
-instructions
- auditing boards (help teams keep track of
performance over time)

Control Plan helps process owner and business team to track and Phase: Control - DMAIC
respond to key performance indicators so the process
remains improved.
Control plan should tell them:
Project Charter Synopsis of product that provides a summary of:
- problem statement - team members,
- goals - Metrics for success
- Definition of scope - Rough timeline
- Names of those responsible for outcomes

6 Team Members
Team Members Roles
White Belt “level 1” familiar w/ basic tenets of 6 , but not regular members of a process
imp. Team. Not always considered a true certification.
Yellow Belt “level 2” Understands basics of DMAIC and Team development.
Uses basic qual tools (pareto, scatter, run, histo) Familiar with:
- common 6 metrics
- data collection
- root cause analysis
- systems analysis for measures.
- Introduced to hypothesis testing and geared towards
understanding overall methodology.

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Green Belt “level 3” Work on 6 teams under supervision of black belt. Able to lead
smaller projects and have intermediate stat. analysis skills.
Able to teach overall methodology.
-Yellow belt skills + stat. distribution. & probability -Kaizen and waste
elimination
-Basic control charts
-project/team management
Black Belt “Level 4” functions as a project leader.
- Advances project/team management
-Intermediate – Advanced statistics
- Lean & Total Quality management (TQM)
- Ability to design process and use software
-Diagramming process: flowcharts &value streams
Master Black Belt Highest Level of certification. Manage black and green belts.
Consult on especially difficult projects and challenging statistical concepts,
and other 6 methodology.
Process Owner Responsible for the process in a leadership capacity. Receives the
“final solution” Implemented by a lean 6 team.
Understands how and why change is made and acts as an expert on the process.
Monitors how process performs using metrics.
Ensures SOPs are in order. Often own the control plan Examples:
- Person responsible for a very specific process or f(x)
- team supervisor
- Department manager
- Exec. Level person responsible for many processes in division

Champion/Sponsor Oversees project at the highest level and is responsible for final results of the
project. Black Belts Report to them. Responsible for helping team obtain funding
and resources. Will want regular reports on progress. Also may: coach team for
project charter and handle matter of politics.
** signs off on tollgates

Six Sigma Leader Usually black belt certified. Responsible for the regular work performed by
team and usually only works with one team or project at a time. Other
responsibilities:
Help Create rational for the project
Provide input for selection of project team members
Lead team through DMAIC phases
Educate and support team as they learn about six sigma tools
Maintain schedules and timelines
Provide expertise on stat. analysis or guidance with analysis
Assist with project transition
Reports to the sponsor or champion
Provides documentation at the end of project
Project Managers Does not lead the project but will help the black belt with documentation,
timelines, keeping meetings on track, and ensuring action items are followed
up after meetings.
Time Keeper Not all teams have them; but they help keep meetings on track, reduce change of
scope creep, and increase overall productivity.
They will need an agenda (made by leader or black belt) to follow.

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 Process Experts Employees who work directly with the process
Budget expert
Regular team members Participate in all activities
Ad Hoc team members Subject matter experts work directly with the process
Resources team members Only there if project needs counsel or help accessing resources (i.e., HR)

DMAIC Toolset Overview

Phase Tool
Define • Stakeholder analysis • SIPOC
• In-and-out of box method • 5 Whys
• Is/is not matrix • Process Maps
Measure • FMEA • Sigma Level calculation
• Run Charts (Continuous data only) • Pareto (Discrete data only)
• Attribute Gage R & R
• CTQ Tree
Analyze • Root Cause Analysis • Root Cause Verification Matrix
• Fishbone Diagrams • Box Plot (box & whiskers)
• Pareto Charts (main cat.) • Value analysis
• Scatter Diagram • Process maps
• Histograms • Cause & Effect Diagrams

Improve • Solution Selection Matrix •Poka Yolk* • Triz*

• Brainstorming* • Cost Benefit Analysis • 5S*
• Affinity Diagram* • Takt Time*

Control • Control Plan • Visual Management

• SPC Charts • SPC Charts (aka control charts)
• Revised FMEA
*Helps identify solutions to overcome impact of a Root cause

Critical to Quality (CTQs)

Component Definition
Critical to Quality (CTQ) Factors that are the major drivers of quality within an organization or process. Key is that
they can be measured and are the factors that drive 80% of customer satisfaction. Use to
Narrow down your work scope.
- internally driven
Critical to Customer (CTC) Critical to a customer, not necessarily critical to quality.
- Driven by CTQs
Cost of Poor Quality (CoPQ) The cost or expenses associated w/ defects created by a process.
higher CoPQ = more likely an organization will work towards improvement 2 categories
Cost of external failures (occur after prod/service has been delivered.)
– Directly associated w/ customer dissatisfaction.
2) Cost of Internal Failures ( products/services that don’t conform to the requirements
set by org. and prod. Is provided to customer in an

unsatisfactory fashion. – Generally handled by redoing, repair, scrapping, and result in

less output, thus less profit.
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Cost of Non-conformity External Failures + Internal Failures = Cost of non-conformity
Hidden Costs (of poor Hidden costs like: loss of customer loyalty, loss of employees, higher risk of compliance
Quality) issues, loss of morale.
Cost of Quality (COQ) Coveres the expenses associated with maintaining good quality throughout an org. or
process.
Includes CoPQ & Cost of good quality.
Includes prevention and Appraisal costs
COPQ + Prevention Costs + Appraisal Costs = COQ
Prevention Cost Expenses r/t any activity meant to stop an error or defect from happening (aka: error
proofing.)
Appraisal Cost Expenses associated with any activity meant to ensure high quality across an org./
process. (i.e., salary, audit check costs)
* If something is both an appraisal AND Prevention cost, only count it once (in one
category)

Data Types
Types of Data What it means Example
Continuous Quantative. Data, measured in units. Hours, temp-degrees
Anything can be converted to ocnt. Data by making it a 10am-40○ |11am -50○ |12p-
percentage. (the ideal.) 45○
Discrete Categorical. Comes in 4 categories: Ordinal, nominal, binary,
and attribute.
Ratio Highest form of data|Continuous or Discrete|Quantitative. Has an Force, defects/mil , voltage, ht,
Absolute 0 point. units/hr, vol.
Interval 2nd Highest form of data. |Quantitative | Continuous 9am - 76○ | 10am - 80○
*Intervals btwn #s do have meaning. *Interval of 4○ has meaning: it’s
hotter!
Ordinal 2nd Lowest form of data | Discrete |Qualitative 1-5 stars. Interval btwn 4 & 4 has
*Intervals btwn #s don’t matter. Central no meaning. Just need to know 4
tendency: Median or Mode higher than 5.
Nominal Lowest form of data | Discrete Qualitative Code IA = 1 | MA = 2 | MI = 3 |
*applies labels to qual. Descriptions – which allows for stat. PA = 4
analysis to occur. 2 categories: binary & attribute
Central Tendency: Mode
Attribute Info used to create control charts. |Uses counts # of times something occurs
*whole numbers only
Binary Only allow 2 values Y/N; On/Off; 0/1

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Sampling Methods
Sampling Strategy Use Requirements/ Examples
Random Sampling
Simple Random Sampling Works when there is = chance that any Requires that sample represents similar
(SRS) itme w/in a population will be chosen. attributes and percentages as the entire
population.
N = population n
= sample size
Stratified Sampling When a population as a whole is Deliver prod A: 200 mi. radius
divided or can be divided into subgroups Deliver Prod B: 200-400 mi. radius
w/ differing attributes Deliver prod A: 400-600 mi. radius
Sequential Sampling Involves selecting every X item for Sample every 5th product Or
inclusion in the sample. Measure every 10 minutes
-Best used for collecting interval data

Non-Random Sampling
Non-Random Sampling Introduces sampling error if you try to use
(NRS) statistical analysis so you shouldn’t

Convenience Sampling Takes a convenient sample to gain info - Only gives info on how a process
*right now* performs in that exact moment.
Judgement Sampling Sampling experts select appropriate Expert oft. select best/quality work as
sample – often select representative sample 
causes skewed results.

Decision Trees
** See Index B**

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