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# Dictionary of Lean Six Sigma Tools/Concepts

There are 9 entries in this dictionary.
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Term Definition
Range

The entire extent of the dataset; the difference between the minimum and maximum data points.
Related StatStuff Video:
-Section 5-Measure Phase, Lesson #12 - Spread

Rational Sub-Grouping

The logical distinction of potential sub-processes that exist within an overall process. These sub-processes are usually distinguished (or grouped) by a factor or category like by time, location, processes, or people.
Related StatStuff Video:
-Section 5-Measure Phase, Lesson #18 - Rational Sub-Grouping

Regression

A statistical application to correlated values that involves building an equation or model that describes the nature of the correlation or relationship. It will typically look like "Y-Response = Constant + Coefficient(X-Predictor)". A correlation measures the linear association between variables as represented by r, but the quality of the regression is measured by squaring the correlation coefficient, or r2. It measures the proportion of variation explained by the regression model.
Related StatStuff Video:
-Section 6-Analyze Phase, Lesson #26 - Hypothesis Testing: Relationships (Overview)

Relationship
Residuals

They represent all the deviations for each data point. In statistical tests that analyze a continuous (a.k.a. variable or numerical) value, they are often used as a supplement to validate the original statistical test. The Analysis of Variance (ANOVA) is an example of test where residuals are used.
Related StatStuff Video:
-Section 6-Analyze Phase, Lesson #18 - Hypothesis Testing: Central Tendency – Normal (Compare 2+ Factors)

Risk Analysis

An evaluation of the amount of chance of being wrong or yielding an error. Generally risk represents the what we don't know, don't understand, or can't measure, such as our assumptions. It's the opposite of confidence gained by data or evidence; in that way, it can be said it has an inverse relationship with confidence where as more data or evidence is gathered to build confidence, it should likewise decrease the risk in that situation (or at least make us more informed of the risk and what better actions may be necessary). From a statistical standpoint, risk is defined as Alpha Risk (or Type I Error) and Beta Risk (or Type II Error).
Related StatStuff Video:
-Section 3-Overview, Lesson #2 - Risk Analysis: The Reason We Use Statistics

Risk Assessment

See the FMEA Tool

Roles in a Project

A project may have various roles, but most LSS projects tend to have some roles in common that are either external or internal resources. External resources include an expert in LSS who is leading the project; common roles include a Green Belt, Black Belt, or Master Black Belt. These are external resources because they may not be required to have strong functional experience in the business area for the project, but they should have strong LSS experience. Internal resources include experts within the business area for the project; common roles include a Sponsor, Champion, Process Owner, and Subject Matter Experts (SMEs). In contrast to the external resources, these internal resources aren't necessarily required to have LSS experience, but they should have strong expertise in the business area for the project.
Related StatStuff Video:
-Section 1-Introduction, Lesson #8 - Key Roles in a Lean or Six Sigma Project

Rolled Throughput Yield (RTY)

A measure of the true yield or capability of a process (generally made up of sub-processes). The calculation is (FTYProcessA x FTYProcessB x FTYProcessC x FTYProcessD x etc.). It can help expose "hidden factories" for processing that could risk defects or delays. The measurement of every sub-process should be rolled up to measure their contribution to the overall process they support. Compare to First Time Yield (FTY).
Related StatStuff Video:
-Section 2-Lean, Lesson #10 - FTY and RTY

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