Lean - Answers Lean tools and techniques are used to standardize work and remove waste and non-
value-added activities. The goal is to eliminate the unnecessary.
Six Sigma - Answers A structured, data-driven methodology for reducing variation and improving
value from processes, while having a positive impact on financial performance. Seeks to reduce sigma
(variation) unacceptable to the customer.
Lean vs. Six Sigma - Answers Lean = remove wastes (eliminate the unnecessary). Six Sigma = reduce
variations (improve the necessary).
DMAIC - Answers Define - Measure - Analyze - Improve - Control. Used to improve an existing
process.
DMADV - Answers Define - Measure - Analyze - Design - Verify. Used to largely modify or create a
new process (Design for Six Sigma).
4 Keys to LSS - Answers 1. Delight customers—higher quality in less time. 2. Improve processes,
eliminate defects, improve flow. 3. Teamwork among process workers. 4. All decisions based on data
and facts.
8 Wastes of Lean (DOWNTIME) - Answers 1. Defects 2. Overproduction 3. Waiting 4. Not utilizing
talent 5. Transportation 6. Inventory excess 7. Motion waste 8. Excess processing
5 Principles of Lean - Answers 1. Identify value 2. Map the value stream 3. Create flow 4. Establish a
pull system 5. Strive for continuous improvement (Developed by Toyota Production System / Taiichi
Ohno)
Lean Benefits - Answers Reducing process variability, lowering defects, reducing costs, increased
profit, increased customer satisfaction.
Six Sigma Benefits - Answers Reduced cycle times, lower handling costs, faster lead times, decreased
floor space, lower inventory, improved customer responsiveness, improved quality, higher profit
margins.
5S - Answers Seiri (Sort), Seiton (Set in Order), Seiso (Shine), Seiketsu (Standardize), Shitsuke
(Sustain). A lean tool to organize and maintain the workplace.
Value-Added Activity (3 Criteria) - Answers 1. The step must change the form or function of the
product/service. 2. The customer must be willing to pay for the change. 3. The step must be
performed correctly the first time. Anything else is waste.
Non-Value-Added Essential - Answers Activities required for a business to operate but add no value
from the customer's perspective (e.g., regulatory inspections).
Non-Value-Added Non-Essential - Answers Activities that don't contribute to the product/service and
provide no value to the customer. Should be eliminated (e.g., rework, counting, approving).
Project Charter Elements - Answers 1. Business Case & Benefits 2. Problem Statement 3. Goal
Statement 4. Project Scope (In/Out) 5. Project Plan / Timeline 6. Team Selection
SMART Goal Statement - Answers Specific, Measurable, Attainable, Relevant, Time-Bound. Example:
'Reduce avg. loan processing time from 28 to 20 min by May 10th.'
Problem Statement - Answers Describes what is wrong, when/where it occurs, frequency, impact on
customers/business, and financial impact. Answers: What? Where? When? How much?
Project Scope - Answers Defines boundaries: first/last step, what's in scope, what's out of scope.
Prevents scope creep.
LSS Project Selection Criteria - Answers Is root cause/solution unknown? Is leadership committed? Is
data collectable? Is scope manageable? Are there no org. constraints? Answer YES to proceed.
Gantt Chart - Answers A project management visualization showing tasks, durations, start/end dates,
and progress. Most widely used in project scheduling.
PERT / CPM - Answers PERT = Program Evaluation and Review Technique (schedule/coordinate
tasks). CPM = Critical Path Method (maps key tasks and dependencies to ensure on-time completion).
Common Cause Variation - Answers Random, inherent variation in a process. Many sources. Stable
and repeatable distribution over time. Does NOT change the distribution pattern.
Special Cause Variation - Answers Unpredictable, intermittent variation. Assignable to one element.
Changes the distribution. Must be investigated and eliminated.
Null Hypothesis (H0) - Answers The statement assumed to be true unless there is convincing evidence
otherwise. Represents the status quo or accepted fact. Example: 'Machine X does not affect defect
rate.'