Definitions of Statistics Statistics is the science of

Definitions of Statistics “Statistics is the science of gaining information from numerical data. ” -- Moore Statistics: “the science of data involving collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical information” -- Mc. Clave, Dietrich, Sincich

Definition of Statistical Thinking • 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 -- Levine, Ramsey, Berenson

Quality, Productivity, and the Competitive Position - Dr. W. Edwards Deming

Quality + Productivity = Competitive Position

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 Inputs Machines Material Methods People Environment Process Outputs

Control Improve Measure Or Observe Investigate Compare

Output Control (Reactive) Measure Or Observe Rework, Downgrade, or Scrap Compare to Output Specifications Corrective Action Options

Input Control (Proactive) Improve Inputs Measure Or Observe Compare to Expected Variation Statistical Evaluation

Fill in the Blank: _____ Control Reactive or Proactive?

TQM • Total 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 Points 1. 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 Points 1. 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 Points 6. 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 Points 6. 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 Points 13. Institute a vigorous program of education and selfimprovement. 14. Make the transformation everyone’s job and put everyone to work on it.

Deming’s 14 Points 13. Institute a vigorous program of education and selfimprovement. 14. Make the transformation everyone’s job and put everyone to work on it.

The Pareto Principle 80% of the trouble comes from 20% of the causes

The Basic 7 Tools 1. Process Flowcharts 2. Brainstorming 3. Fishbone Diagram 4. Histogram 5. Trend Charts 6. Scatter Plots 7. Statistical Process Control Charts

The Basic 7 Tools 1. Process Flowcharts 2. Brainstorming 3. Fishbone Diagram 4. Histogram 5. Trend Charts 6. Scatter Plots 7. Statistical Process Control Charts

Process Flowcharts Yes No

Outline of a Fishbone Diagram Machines Material Environment Output Methods People