Get proper level of Six Sigma expertise at executive level of company. If top leaders don’t understand advanced six sigma principles, company has no shot to attain total quality. This will probably require a hefty budget, entailing hiring of several high-priced consultants for long periods of time. The consultants need to observe and gather data about companies operations, and show executives how to interpret data.

Step 2

Get staff involved. The ones in trenches are most knowledgeable about day-to-day operations, and day to day’s are where most costs are spent. This means getting people like shop foreman, line supervisor, and office manager involved in training. Not only do they need to understand thinking behind six sigma, but they also need to buy into benefits. Since they’re ones carrying out orders and directing vast majority of employees, if trench-level staff isn’t aligned with management, company is sunk.

Step 3

Measure data - quantify number of defects per unit. This applies not only to manufacturing, but to services as well. It’s easier to measure defects on an assembly line. You just divide number of defective units by total output (that’s really simplified, but you get point). Services are more vague.

This is why it is vital to get input from your customers. Ask them how things are going from their perspective. Is there anything they would like to see you improve on that would make their experience more favorable? You’re looking to increase overall quality. Nobody knows your faults better than your customers.

Adjustable Rate Mortgage (ARM). A type of mortgage loan whose interest rate changes periodically up or down, usually once or twice a year. They are tied to an interest rate index like 11th District Cost of Funds.

Annual Percentage Rate (APR). Everything financed in your mortgage loan package (interest, loan fees, points or other charges) expressed as a percentage of loan amount (usually slightly above actual interest rate alone).

Assumable Loan. A loan in which lender is willing to "transfer" from previous owner of home to new owner, sometimes at same interest rate, sometimes at a new rate. An assumable loan can make your home more attractive to buyers when you want to sell. Often new buyer has to qualify for assumption just as he/she would for a new loan.

Closing Costs. Costs buyer must pay at time of closing in addition to down payment: including points, mortgage insurance premium, homeowners insurance, prepayments for property taxes, etc. Closing costs average 3% to 4% of loan amount.

Contingency. A condition put on an offer to buy a home; such as prospective buyer making an offer contingent on his or her successful sale of a present home.

Conventional Mortgage. A type of mortgage not insured by either Federal Housing Administration (FHA) or Department of Veterans Affairs (VA), and thus usually requiring a 10% to 20% down payment.