“Statistics is the science of gaining information from numerical data.” -- Moore

Definitions of Statistics

Statistics: “the science of data involving collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical information” -- McClave, Dietrich, Sincich

•An understanding of variation•An awareness of when and how variability affects quality•An ability to identify variability that can be controlled•A commitment to controlling and reducing variability in a never-ending striving for quality improvement

Definition of Statistical Thinking

-- Levine, Ramsey, Berenson

Quality, Productivity, and the Competitive Position

- Dr. W. Edwards Deming

Quality Productivity Competitive Position

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The Strategy

• Use statistics as a means of communication from ...

• The business process we wish to improve for the purpose of …

• Controlling the process.

The Process

ProcessInputsInputs OutputsOutputs

Machines

Material

Methods

People

Environment

Control

MeasureOr

Observe

CompareInvestigate

Improve

Output Control(Reactive)

Rework,Downgrade, or

Scrap

CorrectiveActionOptions

Compare toOutput

Specifications

MeasureOr

Observe

Input Control(Proactive)

MeasureOr

Observe

StatisticalEvaluation

Compare to Expected Variation

ImproveInputs

Fill in the Blank:

__________ Control

Reactive or Proactive?

TQM

• Total Quality ManagementTotal Quality Management refers to a journey to excellence in which everyone in the organization is focused on continuous process improvement directed toward increased customer satisfaction.

Deming’s 14 Points1. Create a constancy of purpose toward the improvement of products and services in order to become competitive, stay in business, and provide jobs.

2. Adopt the new philosophy. Management must learn that it is a new economic age and awaken to the challenge, learn their responsibilities, and take on leadership for change.

3. Stop depending on inspection to achieve quality. Build in quality from the start.

4. Stop awarding contracts on the basis of low bids.

5. Improve continuously and forever the system of production and service to improve quality and productivity, and thus constantly reduce costs.

Deming’s 14 Points1. Create a constancy of purpose toward the improvement of products and services in order to become competitive, stay in business, and provide jobs.

2. Adopt the new philosophy. Management must learn that it is a new economic age and awaken to the challenge, learn their responsibilities, and take on leadership for change.

3. Stop depending on inspection to achieve quality. Build in quality from the start.

4. Stop awarding contracts on the basis of low bids.

5. Improve continuously and forever the system of production and service to improve quality and productivity, and thus constantly reduce costs.

Deming’s 14 Points6. Institute training on the job. 7. Institute leadership. The purpose of leadership should be to help people and technology work better. 8. Drive out fear so that everyone may work effectively. 9. Break down barriers between departments so that people can work as a team.10. Eliminate slogans, exhortations, and targets for the workforce. They create adversarial relationships.11. Eliminate quotas and management by objectives. Substitute leadership.12. Remove barriers that rob employees of their pride of workmanship.

Deming’s 14 Points6. Institute training on the job. 7. Institute leadership. The purpose of leadership should be to help people and technology work better. 8. Drive out fear so that everyone may work effectively. 9. Break down barriers between departments so that people can work as a team.10. Eliminate slogans, exhortations, and targets for the workforce. They create adversarial relationships.11. Eliminate quotas and management by objectives. Substitute leadership.12. Remove barriers that rob employees of their pride of workmanship.

Deming’s 14 Points13. Institute a vigorous program of education and self-improvement.

14. Make the transformation everyone’s job and put everyone to work on it.

Deming’s 14 Points13. Institute a vigorous program of education and self-improvement.

14. Make the transformation everyone’s job and put everyone to work on it.

The Pareto Principle

80% of the trouble comes from 80% of the trouble comes from 20% of the causes20% of the causes.

050

100150200250300350400450

Number of Errors

The Basic 7 Tools

1. Process Flowcharts2. Brainstorming3. Fishbone Diagram4. Histogram5. Trend Charts6. Scatter Plots7. Statistical Process Control Charts

The Basic 7 Tools

1. Process Flowcharts2. Brainstorming3. Fishbone Diagram4. Histogram5. Trend Charts6. Scatter Plots7. Statistical Process Control Charts

Process Flowcharts

Yes

No

Outline of a Fishbone Diagram

Machines Material

Methods People

Environment

Output