A Dashboard is high level, at-a-glance display of key performance indicators that are regularly monitored. Ideal for presenting to process owners, senior leadership and stakeholders, Dashboards vary in composition but typically measure the performance of Processes, People, Innovation, and Finance. For a better understanding of Dashboard (aka Cockpit Charts) and…
What is a Value-Added Flow Analysis? Value-Added Flow Analysis combines two powerful tools into one. The Value Analysis differentiates steps that add value in the eyes of the customer from those that do not, and Flow Analysis calculates the time spent on each step. This makes clear the time and…
Customer Requirements are the needs and expectations of the customer, discovered through a measurable, data-driven ("hard evidence") approach. For a better understanding of Customer Requirements and an overview of Lean Six Sigma, check out our Free Lean Six Sigma Yellow Belt Training, Green Belt Training or Lean Training.
A Customer Focus is an emphasis on understanding the needs of a customer; in short, a Customer Focused organization understands what customers really care about. A proper Customer Focus results in increased satisfaction by identifying/anticipating their needs, adding value, and eliminating defects and waste. For a better understanding of Customer…
Broadly defined, a Customer is any person (or group of persons) that receives products or services. In the context of Lean Six Sigma, a Customer refers to anyone who receives the output (information, goods, services, etc.) of a process. Therefore, depending on the process, a Customer can include persons both…
A Correlation Coefficient is a statistical concept expressed as the letter “r” that measures the strength and type of the relationship between two factors (‘X’ and ‘Y’). A Correlation Coefficient is a number between -1 and +1. An ‘r’ of +1 means that there is a perfect, positive correlation between…
Cost/Benefit Analysis is a decision-making tool to compare costs (negative results) vs. benefits (positive results) of a proposed change to a process. The costs can include labor, equipment, materials and time, and the benefits often include increased customer satisfaction, increased revenue, cost avoidance and reduced cycle time. For a better…
The Control Phase is the last phase of DMAIC, and ensures that improved processes continue to work predictably and meet the customers’ expectations. In short, Control ensures any gains are maintained. During this phase the documentation is finalized, monitoring plans are put into place and response plans are designed in…
Continuous Improvement broadly describes ongoing, incremental efforts to improve products and processes. Continuous Improvement with Lean Six Sigma utilizes a data-driven approach and process analysis to solve problems. For a better understanding of Continuous Improvement and an overview of Lean Six Sigma, check out our Free Lean Six Sigma Yellow Belt…
Continuous Data refers to data that is measured on a continuum. It is data that is measured on an infinitely divisible scale (e.g., time, weight, and temperature) such that one half a unit still makes sense; half a minute, half a pound, etc. A defining characteristic of continuous data is…