1-Sample Sign Test

This is used to test the probability of a sample median being equal to hypothesized value.

H0: m1=m2=m3=m4 (null hypothesis)

Ha: At least one is different (alternate hypothesis)

2-Sample t-Test
2-Sample t-Test: Used for testing hypothesis about the location two sample means being equal.

1-Sample t-Test: Used for testing hypothesis about the location of the sample mean and a target mean being equal.

3P
The three Ps stand for People, Product and Process. When implementing TQM, all three parameters should be

improved.

1. People: Satisfaction of both internal and external customers.

2. Product: Conforming to the requirements specified.

3. Process: Continuous improvement of all the operations and activities is at the heart of TQM.

5 Why’s
The 5 why’s typically refers to the practice of asking, five times, why the failure has occurred in order to get to the root

cause/causes of the problem. There can be more than one cause to a problem as well. In an organizational context,

generally root cause analysis is carried out by a team of persons related to the problem. No special technique is

required.

An example is in order:

You are on your way home from work and your car stops:

 Why did your car stop? Because it ran out of gas.

 Why did it run out of gas? Because I didn’t buy any gas on my way to work.

 Why didn’t you buy any gas this morning? Because I didn’t have any money.
 Why didn’t you have any money? Because I lost it all last night in a poker game.

I hope you don’t mind the silly example but it should illustrate the importance of digging down beneath the most

proximate cause of the problem. Failure to determine the root cause assures that you will be treating the symptoms of

the problem instead of its cause, in which case, the disease will return, that is, you will continue to have the same

problems over and over again.

Also note that the actual numbers of why’s is not important as long as you get to the root cause. One might well ask

why did you lose all your money in the poker game last night?

_____

Here’s another example. I learned the example using the Washington Monument used when demonstrating the use

of the 5 Whys.

The Washington Monument was disintegrating

Why? Use of harsh chemicals

Why? To clean pigeon poop

Why so many pigeons? They eat spiders and there are a lot of spiders at monument

Why so many spiders? They eat gnats and lots of gnats at monument

Why so many gnats? They are attracted to the light at dusk.

Solution: Turn on the lights at a later time.

5C
5C ia a 5 step technique very similar to 5S to stabilise, maintain and improve the safest, best working enviroment to

support sustainable Quality, Cost and Delivery.

What are the 5Cs?

Clear Out: Separate the essential from the non essential

Configure: A place for everything and everything in its place.

Clean and Check: Manualy clean to spot abnormal conditions.

Conformity: Ensures that the standard is maintained and improved.

 Custom and Practice: Everyone follows the rules, understands the benefits and contributes to the improvement.

5Ps
5Ps of effective meetings

Purpose – why the meeting is being held

Product/Pay-off – what the desired outcome of the meeting is

Participants – who should attend the meeting

Probable issues – what concerns or questions are likely to be raised during the meeting

Process – how the the meeting will be run and the desired outcome achieved

5S
\ˈfīv\ \ˈes\

5S is a system for instilling order and cleanliness in the workplace. The S’s stand for:

1. Seiri or sort

2. Seiton or straighten

3. Seiso or shine

4. Seiketsu or standardize

5. Shitsuke or sustain

As translated, the Japanese terms mean the following:

1. Seiri – Put things in order (Remove what is not needed and keep what is needed)

2. Seiton – Proper arrangement (Place things in such a way that they can be easily reached whenever they are

needed)

3. Seiso – Clean (Keep things clean and polished; no trash or dirt in the workplace)

4. Seiketsu – Purity (Maintain cleanliness after cleaning – perpetual cleaning)

5. Shitsuke – Commitment (A typical teaching and attitude toward any undertaking to inspire pride and adherence to

standards)

An alternative translation and meaning of these terms may be found in The Improvement Book by Tomo Sugiyama:
1. Sorting – Good and bad, useable and non-useable

2. Systematic arrangement – Once sorted, keep systematically to have traceability

3. Spic and span – Keep arranged things always ready-to-use, dirt-free and tidy

4. Standardize – Make a process for the above three stages, create measures and review them

5. Self-discipline – Individual commitment

5Z
6. This standard defines the procedure of “5Z Accreditation” which is the scheme to promote, evaluate,

maintain and improve process control using the Genba Kanri principles.

“5Z” is a general term for the following five actions ending with “ZU”…meaning “Don’t” in Japanese.

7. -UKETORAZU (Don’t accept defects)

-TSUKURAZU (Don’t make defects)

-BARATSUKASAZU (Don’t create variation)

-KURIKAESAZU (Don’t repeat mistakes)

-NAGASAZU (Don’t supply defects)

8. 6 Ms
9. The traditional 6Ms are:

10. * Machines

11. * Methods

12. * Materials

13. * Measurements

14. * Mother Nature (Environment)

15. * Manpower (People)

16. Other definitions:

17. Machines

Methods

Materials

Measurements

Milieu (Mother Nature, surroundings, environment)

Manpower (People/mainly physical work)

 Mindpower (Also people/mainly brain work)

Management (separate from Manpower/People because it considers Tampering)

Money

Miscellaneous

(the) Moon (so far unknown cause)

18. You can read more about it in the The Cause and Effect Diagram (a.k.a. Fishbone)

article.

19. 7 QC Tools
20. Histograms

Cause and Effect Diagram

Check Sheets

Pareto Diagrams

Graphs

Control Charts

Scatter Diagrams

21. These are 7 QC tools also known as ISHIKAWAS 7QC tools which revolutionised the Japane & the World

in Sixties & Seventies

22. 7 Wastes of Lean

23. The 7 wastes are at the root of all unprofitable activity within your organization.

24. The 7 wastes consist of:

25. 1. Defects

2. Overproduction

3. Transportation

4. Waiting

5. Inventory

6. Motion

7. Processing

26. Use the acronym ‘DOTWIMP’ to remember the 7 Wastes of Lean.

27. The worst of all the 7 wastes is overproduction because it includes in essence all others and was the main

driving force for the Toyota JIT system, they were smart enough to tackle this one to eliminate the rest.
28. 8 D Process
29. The 8D Process is a problem solving method for product and process improvement. It is structured into 8

steps (the D’s) and emphasizes team. This is often required in automotive industries. The 8 basic steps

are: Define the problem and prepare for process improvement, establish a team, describe the problem,

develop interim containment, define & verify root cause, choose permanent corrective action, implement

corrective action, prevent recurrence, recognize and reward the contributors.

30. Of course, different companies have their different twists on what they call the steps, etc…but that is the

basics.

31. 8 D is short for Eight Disciplines which oOriginated from the Ford TOPS (Team Oriented Problem Solving)

program. (First published approximately 1987)

D#1 – Establish the Team

D#2 – Describe the problem.

D#3 – Develop an Interim Containment Action

D#4 – Define / Verify Root Cause

D#5 – Choose / Verify Permanent Corrective Action

D#6 – Implement / Validate Permanent Corrective Action

D#7 – Prevent Recurrence

D#8 – Recognize the Team

32. 8 Wastes of Lean

33. An easy way I learned at a seminar to remember the wastes, they spell TIM WOODS

34. T – Transport – Moving people, products & information

I – Inventory – Storing parts, pieces, documentation ahead of requirements

M – Motion – Bending, turning, reaching, lifting

35. W – Waiting – For parts, information, instructions, equipment

O – Over production – Making more than is IMMEDIATELY required

O – Over processing – Tighter tolerances or higher grade materials than are necessary

D – Defects – Rework, scrap, incorrect documentation

S – Skills – Under utilizing capabilities, delegating tasks with inadequate training

36. Acceptable Quality Level – AQL

37. Also referred to as Assured Quality Level. The largest quantity of defectives in a certain sample size that

can make the lot definitely acceptable; Customer will definitely prefer the zero defect products or services

and will ultimately establish the acceptable level of quality. Competition however, will ‘educate’ the

customer and establish the customer’s values. There is only one ideal acceptable quality level – zero

defects – all others are compromises based upon acceptable business, financial and safety levels.

38. Acceptance Number

39. The highest number of nonconforming units or defects found in the sample that permits the acceptance of

the lot.

40. Accessory Planning

41. The planned utilization of remnant material for value-added purposes.

42. Accountability
43. Conditional personal or professional liability “after” the fact, determined by action or responsibility.

Accountability to action assumes the willingness to be held accountable for adequate expertise and

capability. (see responsibility)

44. Accuracy
45. 1) Accuracy refers to clustering of data about a known target. It is the difference between a physical

quantity’s average measurements and that of a known standard, accepted ‘truth,’ vs. ‘benchmark.’

Envision a target with many arrows circling the bullseye, however, none of them are near each other.

46. 2) Precision refers to the tightness of the cluster of data. Envision a target with a cluster of arrows all

touching one another but located slightly up and to the right of the bullseye.

47. In practice it is easier to correct a process which has good precision than it is to correct a process which is

accurate. This is due to the increased amount of variation associated with accurate but not precise

process.

48. Active Data

49. Actively and purposefully make changes in our data to monitor the corresponding impact and results on

the Xs and Ys.

50. Activity Based Costing (ABC)

51. A form of cost accounting that focuses on the costs of performing specific functions (processes, activities,

tasks, etc.) rather than on the costs of organizational units. ABC generates more accurate cost and
 performance information related to specific products and services than is available to managers through

traditional cost accounting approaches.

52. Affinity Diagram

53. A tool used to organize and present large amounts of data (ideas, issues, solutions, problems) into logical

categories based on user perceived relationships and conceptual frameworking.

54. Often used in form of “sticky notes” send up to front of room in brainstorming exercises, then grouped by

facilitator and workers. Final diagram shows relationship between the issue and the category. Then

categories are ranked, and duplicate issues are combined to make a simpler overview.

55. Agile
56. Methods for delivering projects with evolving requirements, through collaborative approaches by self-

organising, multi-functional teams.

57. Originally implemented for software development with a focus on delivering iterative releases of functional

software. Now used for any form of value delivery where changing requirements are common and must be

accommodated.

58. Alias
59. Lost interactions in a Design of Experiment. An alias indicates that you’ve changed two or more things at

the same time in the same way. Aliasing is a critical feature of Plackett-Burman, Taguchi designs or

standard fractional factorials.Lower the resolution higher is the aliasing issue. Aliasing is a synonym for

confounding.

60. Alpha Risk

61. Alpha risk is defined as the risk of rejecting the Null hypothesis when in fact it is true.

62. Synonymous with: Type I error, Producers Risk

63. In other words, stating a difference exists where actually there is none. Alpha risk is stated in terms of

probability (such as 0.05 or 5%).

64. The value (1-alpha) corresponds to the confidence level of a statistical test, so a level of significance alpha

= 0.05 corresponds to a 95% confidence level.

65. Alternative Hypothesis (Ha)

66. The alternate hypothesis (Ha) is a statement that the means, variance, etc. of the samples being tested

are not equal. In software program which present a p value in lieu of F Test or T Test When the P value is
 less than or equal to your agreed upon decision point (typically 0.05) you accept the Ha as being true and

reject the Null Ho. (Ho always assumes that they are equal)

67. Analysis Of Variance (ANOVA)

68. Analysis of variance is a statistical technique for analyzing data that tests for a difference between two or

more means by comparing the variances *within* groups and variances *between* groups. See the tool 1-

Way ANOVA.

69. Analytic Hierarchy Process (AHP)

70. The analytic hierarchy process (AHP), developed by mathematician Thomas Saaty in the 1970s, is a

method for assessing and prioritizing options. Widely used for complex, multi-criteria decision-making,

AHP guides the practitioner through a list of paired options. With each option, the following question is

asked: Is Option 1 more important than Option 2? If yes, by how much?

71. Analytical Modeling

72. A software or other service component modelling technique using tools based on mathematical models.

73. Anderson-Darling Normality Test

74. After you have plotted data for Normality Test, Check for P-value.

75. P-value < 0.05 = not normal. normal = P-value >= 0.05

76. Note: Similar comparison of P-Value is there in Hypothesis Testing.

If P-Value > 0.05, Fail to Reject the H0

77. The Anderson-Darling test is used to test if a sample of data came from a population with a specific

distribution. It is a modification of the Kolmogorov-Smirnov (K-S) test and gives more weight to the tails

than does the K-S test. The K-S test is distribution free in the sense that the critical values do not depend

on the specific distribution being tested. The Anderson-Darling test makes use of the specific distribution in

calculating critical values. This has the advantage of allowing a more sensitive test and the disadvantage

that critical values must be calculated for each distribution.

78. ANOVA
79. ANalysis Of VAriance (ANOVA), a calculation procedure to allocate the amount of variation in a process

and determine if it is significant or is caused by random noise. A balanced ANOVA has equal numbers of

measurements in each group/column. A stacked ANOVA: each factor has data in one column only and so

does the response.

 80. Appraisal Cost
81. Appraisal Cost is a component of ‘Cost of Quality’

This is the cost incurred on Preventing the defects. e.g

Cost to establish Methods & Procedures

Cost to Plan for Quality

Cost incurred on Training.

APQP
Advanced Product Quality Planning

Phase 1 –

Plan & Define Programme – determining customer needs, requirements & expectations using tools such as QFD

review the entire quality planning process to enable the implementation of a quality programme how to define & set

the inputs & the outputs.

Phase 2 –

Product Design & Development – review the inputs & execute the outputs, which include FMEA, DFMA, design

verification, design reviews, material & engineering specifications.

Phase 3 –

Process Design & Development – addressing features for developing manufacturing systems & related control plans,

these tasks are dependent on the successful completion of phases 1 & 2 execute the outputs.

Phase 4 –

Product & Process Validation – validation of the selected manufacturing process & its control mechanisms through

production run evaluation outlining mandatory production conditions & requirements identifying the required outputs.

Phase 5 –

Launch, Feedback, Assessment & Corrective Action – focuses on reduced variation & continuous improvement

identifying outputs & links to customer expectations & future product programmes.
 Control Plan Methodology –

discusses use of control plan & relevant data required to construct & determine control plan parameters

stresses the importance of the control plan in the continuous improvement cycle.

ARMI
A project management tool, ARMI can be used to analyze the level of support of project stakeholders. The acronym

stands for the four levels of support that can be assigned to the various stakeholders:

 Approver – Individual whose sign-off is required to move forward with the project

 Resource – Expert whose skills are required for the project

 Member – Those individuals making up the project team

 Interested party –People who need to be kept up-to-date on the project

It is similar to the project management tool RACI (Responsible, Accountable, Consulted, Informed) for categorizing

the level of participation of project team members.

Artisan Process
Known for pioneering efforts to invent or create that which has never existed, it is one of a family of four work process

types and is characterized as a temporary endeavor undertaken to create a unique product or result which is

performed by people. (Artisan Process, Project Process, Operations Process, Automated Process)

Assignable Cause
See *Special Cause*.

Attribute Data
Attribute data is purely binary in nature. Good or Bad, Yes or No. No analysis can be performed on attribute data.

Attribute data must be converted to a form of Variable data called discrete data in order to be counted or useful.

Attribute data is qualitative data that can be counted for recording and analysis.

Examples include the presence or absence of a required label, the installation of all required fasteners.
Attribute data is not acceptable for production part submissions unless variable data cannot be obtained.

The control charts based on attribute data are percent chart, number of affected units chart, count chart, count-per-

unit chart, quality score chart and demerit chart.

Attribution Theory
Attribution theory (B. Weiner) explains how individuals interpret events and how this relates to their thinking and

behavior.

This theory has been used to explain the difference in motivation between high and low achievers. According to

attribution theory, high achievers will invite rather than avoid tasks that could lead them to success because they

believe success results from high ability and effort, and they are confident of their ability and effort. However, they

believe failure is caused by bad luck or a poor exam, i.e. things that are beyong their range of control. Thus, failure

doesn’t affect their self-esteem but success builds pride and confidence.

On the other hand, low achievers avoid success-related actions because they tend to doubt their ability and/or

assume success is related to luck or influence or to other factors beyond their control. Thus, even when successful, it

isn’t as rewarding to the low achiever because he/she doesn’t feel responsible. Suceess does not increase his/her

pride and confidence.

Audit
A timely process or system, inspection to ensure that specifications conform to documented quality standards. An

Audit also brings out discrepencies between the documented standards and the standards followed and also might

show how well or how badly the documented standards support the processes currently followed.

Corrective, Preventive & Improvement Actions should be undertaken to mitigate the gap(s) between what is said

(documented), what is done and what is required to comply with the appropriate quality standard. Audit is not only be

used in accounting or something that relates to mathematics but also used in Information Technology.

Authority
The granting or taking of power and liability to make decisions and influence action on the behalf of others.

Autocorrelation
Autocorrelation means that the observations are not independent. Each observation will tend to be close in value to

the next. This can result in under estimating sigma. A little bit of autocorrelation will not ruin a control chart.

Automated Process
Known for eliminating labor costs, it is one of a family of four work processes characterized as an on-going endeavor

undertaken to create a repetitive product or result which planned, executed and controlled. (Artisan Process, Project

Process, Operations Process, Automated Process)

Availability
Availability is the state of able readiness, of a product, process, practicing person or organization to perform

satisfactorily its specified purpose, under pre-specified environmental conditions, when called upon.

Average Incoming Quality

This is the average quality level going into the inspection point.

Average Outgoing Quality

The average quality level leaving the inspection point after rejection and acceptance of a number of lots. If rejected

lots are not checked 100% and defective units removed or replaced with good units, the AOQ will be the same as the

AIQ.