Flow like a pro
The maximum rate of output a process can sustain
What is process capacity?
Six Sigma projects often use this five-step improvement method.
What is DMAIC?
In multiple regression, this type of independent variable takes on values like “male/female” or “yes/no” and must be converted into 0s and 1s.
What is categorical (binary or dummy) variable?
A chart that shows project tasks on a timeline with bars representing duration
What is a Gantt Chart?
In LP, these represent the quantities we can control to optimize the objective function.
What are decision variables?
This chart helps prioritize improvement efforts by showing that a small number of defect types often account for the majority of total process problems.
What is a Pareto chart?
By mapping both value-added and non-value-added steps, this tool identifies bottlenecks and delays in a service or production process.
What is Value Stream Mapping?
A survey asks whether people prefer coffee, tea, or soda and records gender. You use this methodology to see if drink preference depends on gender.
What is chi-squared test of independence?
The difference between the latest and earliest possible start time for an activity without delaying the project.
What is float or slack?
Minimizing transportation/shipment cost for delivering goods from warehouses to stores is a classic example of this LP problem type.
What is a transportation problem?
The ratio of actual output to maximum possible output.
What is utilization?
This measure compares how well a process fits within specification limits.
What is process capability?
This symbol, often set at 0.05, represents the probability of rejecting the null hypothesis when it is actually true.
What is level of significance or alpha?
The sequence of activities that determines the shortest possible project duration.
What is the critical path?
A company produces two products. Each product requires labor and materials. The maximum labor and materials available are modeled as these
What are (resource) constraints?
The time between completion of sequential units.
What is cycle time?
This chart tracks a process over time, distinguishing normal variation from unusual variation.
What is a control chart?
In multiple regression output, this tells you how much the dependent variable changes when one independent variable increases by one unit, holding others constant.
What is the regression coefficient, beta?
Using optimistic, most likely, and pessimistic durations, this technique estimates expected activity time in a project.
What is PERT?
In a linear programming problem, any set of decision variable values that satisfies all constraints, including non-negativity, is called this.
What is a feasible solution?
Lean and Theory of Constraints align in prioritizing improvement efforts here.
What is a process bottleneck?
A process has Cp = 1.2 but the mean is closer to the lower spec limit, so even though the spread is acceptable, many units fall outside tolerance. This metric accounts for centering
What is Cpk?
If the p-value from a chi-squared test of independence is 0.03 and α = 0.05, you would conclude this about the relationship between the variables
When do we reject the null hypothesis that the variables are statistically independent?
This scheduling technique reduces project duration by adding resources or expediting tasks while incurring additional cost per day.
What is crashing?
In a solved LP model, the value of the objective function changes if the availability of a constraint changes slightly. The rate of change is called this.
What is shadow price?