effective statistics one perspective from a high tech business one perspective from a high tech...

Effective StatisticsEffective StatisticsEffective StatisticsEffective Statistics

One perspective from One perspective from a high tech businessa high tech business

One perspective from One perspective from a high tech businessa high tech business


An effective system requiresAn effective system requiresthe ability to ensurethe ability to ensure Application objectives Application objectives are clear are clear Data sources are Data sources are understood & appropriate understood & appropriate

An effective system requiresAn effective system requiresthe ability to ensurethe ability to ensure Application objectives Application objectives are clear are clear Data sources are Data sources are understood & appropriate understood & appropriate

Appropriate methods are Appropriate methods are applied & their limitations applied & their limitations are knownare known

Results are actionableResults are actionable Actions are taken (and count)Actions are taken (and count) Lessons are learned and Lessons are learned and

results improvedresults improved

Appropriate methods are Appropriate methods are applied & their limitations applied & their limitations are knownare known

Results are actionableResults are actionable Actions are taken (and count)Actions are taken (and count) Lessons are learned and Lessons are learned and

results improvedresults improved

People in business “are findingPeople in business “are findingthat while they have more that while they have more numbers than ever numbers than ever before, they still before, they still do not understand do not understand what they mean.”what they mean.”

From “Understanding From “Understanding Variation” Variation” by Donald Wheelerby Donald WheelerSPC PressSPC Press

People in business “are findingPeople in business “are findingthat while they have more that while they have more numbers than ever numbers than ever before, they still before, they still do not understand do not understand what they mean.”what they mean.”

From “Understanding From “Understanding Variation” Variation” by Donald Wheelerby Donald WheelerSPC PressSPC Press


Effective Statistics-one Effective Statistics-one perspectiveperspectiveEffective Statistics-one Effective Statistics-one perspectiveperspective

Statistics are effective, to theStatistics are effective, to theextent they support achievingextent they support achievingbusiness objectives morebusiness objectives moreeconomically.economically.

Statistics are effective, to theStatistics are effective, to theextent they support achievingextent they support achievingbusiness objectives morebusiness objectives moreeconomically.economically.

The application The application objective is clear objective is clear The data The data source is source is understood understood & appropriate & appropriate

The application The application objective is clear objective is clear The data The data source is source is understood understood & appropriate & appropriate

What Characteristics Make What Characteristics Make Statistics Effective?Statistics Effective?What Characteristics Make What Characteristics Make Statistics Effective?Statistics Effective?

The appropriate methods are The appropriate methods are applied & their limitations are applied & their limitations are knownknown

The results are actionableThe results are actionable Actions make a differenceActions make a difference

The appropriate methods are The appropriate methods are applied & their limitations are applied & their limitations are knownknown

The results are actionableThe results are actionable Actions make a differenceActions make a difference


Result from an effective systemResult from an effective systemResult from an effective systemResult from an effective system

UnderstandUnderstandthethe

Objective Objective

UnderstandUnderstandthethe

Objective Objective

PerformPerform

AnalysisAnalysis

PerformPerform

AnalysisAnalysisCollect Collect

DataData

Collect Collect

DataData

ReportReport

ResultsResults

ReportReport

ResultsResults

Take Take

ActionAction

Take Take

ActionActionLearn fromLearn from

ResultsResults

Learn fromLearn from

ResultsResults

Some Important SkillsSome Important SkillsSome Important SkillsSome Important SkillsUnderstandUnderstand

the the ObjectiveObjective

UnderstandUnderstandthe the

ObjectiveObjective

Collect Collect

DataData

Collect Collect

DataDataPerformPerform

AnalysisAnalysis

PerformPerform

AnalysisAnalysis

ReportReport

ResultsResults

ReportReport

ResultsResults

Take Take

ActionAction

Take Take


ResultsResults


ResultsResults

Ability to understandAbility to understandthe true problemthe true problem People skills to co-discover itPeople skills to co-discover it Technical skills to diagnose itTechnical skills to diagnose it

Ability to understandAbility to understandthe true problemthe true problem People skills to co-discover itPeople skills to co-discover it Technical skills to diagnose itTechnical skills to diagnose it


ObjectiveObjective


ObjectiveObjective

““Often the consultant’s most Often the consultant’s most valuable contribution to a client valuable contribution to a client is the redefinition of the is the redefinition of the problem…. The presenting problem…. The presenting problem and the real problem and the real (or underlying) problem are (or underlying) problem are usually different”usually different”

From “Flawless Consulting”From “Flawless Consulting”by Peter Blockby Peter BlockUniversity Associates, Inc. 1981University Associates, Inc. 1981

““Often the consultant’s most Often the consultant’s most valuable contribution to a client valuable contribution to a client is the redefinition of the is the redefinition of the problem…. The presenting problem…. The presenting problem and the real problem and the real (or underlying) problem are (or underlying) problem are usually different”usually different”

From “Flawless Consulting”From “Flawless Consulting”by Peter Blockby Peter BlockUniversity Associates, Inc. 1981University Associates, Inc. 1981


ObjectiveObjective


ObjectiveObjective

Some Important SkillsSome Important Skills

Collect Collect

DataData

Collect Collect

DataData


ObjectiveObjective


ObjectiveObjective

PerformPerform

AnalysisAnalysis

PerformPerform

AnalysisAnalysis

ReportReport

ResultsResults

ReportReport

ResultsResults

Take Take

ActionAction

Take Take


ResultsResults


ResultsResults

Ability to assess the data Ability to assess the data source integrity and limitationssource integrity and limitations What answers can What answers can be determined be determined What answers cannotWhat answers cannot

Ability to assess the data Ability to assess the data source integrity and limitationssource integrity and limitations What answers can What answers can be determined be determined What answers cannotWhat answers cannot

Collect Collect

DataData

Collect Collect

DataData

The Government are (sic) The Government are (sic) extremely fond of amassing great extremely fond of amassing great quantities of statistics. These are quantities of statistics. These are raised to the nth degree, the cube raised to the nth degree, the cube roots are extracted and the results roots are extracted and the results are aggregated into elaborate and are aggregated into elaborate and impressive displays. impressive displays.

The Government are (sic) The Government are (sic) extremely fond of amassing great extremely fond of amassing great quantities of statistics. These are quantities of statistics. These are raised to the nth degree, the cube raised to the nth degree, the cube roots are extracted and the results roots are extracted and the results are aggregated into elaborate and are aggregated into elaborate and impressive displays. impressive displays.

Collect Collect

DataData

Collect Collect

DataData

What must be kept in mind, What must be kept in mind, however, is that in every case, however, is that in every case, the figures are first put down the figures are first put down by a village watchman, and he by a village watchman, and he puts down anything he damn puts down anything he damn well pleases.”well pleases.”

Sir Joseph StampSir Joseph StampHer Majesty’s Collector of InlandHer Majesty’s Collector of InlandRevenueRevenue

What must be kept in mind, What must be kept in mind, however, is that in every case, however, is that in every case, the figures are first put down the figures are first put down by a village watchman, and he by a village watchman, and he puts down anything he damn puts down anything he damn well pleases.”well pleases.”

Sir Joseph StampSir Joseph StampHer Majesty’s Collector of InlandHer Majesty’s Collector of InlandRevenueRevenue

Collect Collect

DataData

Collect Collect

DataData

Some Important SkillsSome Important SkillsSome Important SkillsSome Important Skills


ObjectiveObjective


ObjectiveObjective

Collect Collect

DataData

Collect Collect


AnalysisAnalysis

PerformPerform

AnalysisAnalysis

ReportReport

ResultsResults

ReportReport

ResultsResults

Take Take

ActionAction

Take Take


ResultsResults


ResultsResults

Ability to apply the right Ability to apply the right techniquestechniques Set an appropriate approachSet an appropriate approach Perform the analysis correctlyPerform the analysis correctly

Ability to apply the right Ability to apply the right techniquestechniques Set an appropriate approachSet an appropriate approach Perform the analysis correctlyPerform the analysis correctly

PerformPerform

AnalysisAnalysis

PerformPerform

AnalysisAnalysis

Some Important SkillsSome Important SkillsSome Important SkillsSome Important Skills


ObjectiveObjective


ObjectiveObjective

Collect Collect

DataData

Collect Collect


AnalysisAnalysis

PerformPerform

AnalysisAnalysis

ReportReport

ResultsResults

ReportReport

ResultsResults

Take Take

ActionAction

Take Take


ResultsResults


ResultsResults

Present an effective conclusionPresent an effective conclusion Readily graspedReadily grasped CompleteComplete

what results meanwhat results mean what they don’twhat they don’t

ActionableActionable

Present an effective conclusionPresent an effective conclusion Readily graspedReadily grasped CompleteComplete

what results meanwhat results mean what they don’twhat they don’t

ActionableActionable

ReportReport

ResultsResults

ReportReport

ResultsResults

““Our life is frittered away Our life is frittered away by detail…by detail…

Simplify, simplify.”Simplify, simplify.”Henry David ThoreauHenry David Thoreau

““Our life is frittered away Our life is frittered away by detail…by detail…

Simplify, simplify.”Simplify, simplify.”Henry David ThoreauHenry David Thoreau

ReportReport

ResultsResults

ReportReport

ResultsResults



ObjectiveObjective


ObjectiveObjective

Collect Collect

DataData

Collect Collect


AnalysisAnalysis

PerformPerform

AnalysisAnalysis

ReportReport

ResultsResults

ReportReport

ResultsResults

Take Take

ActionAction

Take Take


ResultsResults


ResultsResults

““The fundamental reason The fundamental reason we measure anything in we measure anything in an organization is to change an organization is to change behavior.behavior.

““The fundamental reason The fundamental reason we measure anything in we measure anything in an organization is to change an organization is to change behavior.behavior.

Take Take

ActionAction

Take Take

ActionAction

““If there are any measures If there are any measures currently in your organization currently in your organization that can vary dramatically that can vary dramatically without causing anyone to without causing anyone to change their behavior, change their behavior, the measure is a waste and the measure is a waste and should be eliminated”should be eliminated”

From”Fast Cycle Time” From”Fast Cycle Time” By Cristopher MeyerBy Cristopher MeyerThe Free Press, 1993The Free Press, 1993

““If there are any measures If there are any measures currently in your organization currently in your organization that can vary dramatically that can vary dramatically without causing anyone to without causing anyone to change their behavior, change their behavior, the measure is a waste and the measure is a waste and should be eliminated”should be eliminated”

From”Fast Cycle Time” From”Fast Cycle Time” By Cristopher MeyerBy Cristopher MeyerThe Free Press, 1993The Free Press, 1993



ObjectiveObjective


ObjectiveObjective

Collect Collect

DataData

Collect Collect


AnalysisAnalysis

PerformPerform

AnalysisAnalysis

ReportReport

ResultsResults

ReportReport

ResultsResults

Take Take

ActionAction

Take Take


ResultsResults


ResultsResults

““The biggest obstacle to learn The biggest obstacle to learn anything is believing you anything is believing you already know it.”already know it.”

From: The Only Things that MattersFrom: The Only Things that MattersBy Karl AlbrechtBy Karl Albrecht

Harper Collins Publishing, 1992Harper Collins Publishing, 1992

““The biggest obstacle to learn The biggest obstacle to learn anything is believing you anything is believing you already know it.”already know it.”

From: The Only Things that MattersFrom: The Only Things that MattersBy Karl AlbrechtBy Karl Albrecht

Harper Collins Publishing, 1992Harper Collins Publishing, 1992


ResultsResults


ResultsResults

Effective Statistics - a systemEffective Statistics - a systemEffective Statistics - a systemEffective Statistics - a system


ObjectiveObjective


ObjectiveObjective

Collect Collect

DataData

Collect Collect


AnalysisAnalysis

PerformPerform

AnalysisAnalysis

ReportReport

ResultsResults

ReportReport

ResultsResults

Take Take

ActionAction

Take Take


ResultsResults


ResultsResults

Some Applications at HPSome Applications at HPSome Applications at HPSome Applications at HP Obtaining useful customer Obtaining useful customer

informationinformation Optimizing distribution Optimizing distribution

channelschannels ForecastingForecasting InventoriesInventories

Obtaining useful customer Obtaining useful customer informationinformation

Optimizing distribution Optimizing distribution channelschannels

ForecastingForecasting InventoriesInventories

New product researchNew product research Evaluating new productsEvaluating new products Manufacturing process Manufacturing process

controlcontrol Solving problemsSolving problems Managing processesManaging processes

New product researchNew product research Evaluating new productsEvaluating new products Manufacturing process Manufacturing process

controlcontrol Solving problemsSolving problems Managing processesManaging processes

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