Effective Statistics One perspective from a high tech business One perspective from a high tech business

Effective Statistics An effective system requires the ability to ensure n Application objectives are clear n Data sources are understood & appropriate An effective system requires the ability to ensure n Application objectives are clear n Data sources are understood & appropriate

n Appropriate methods are applied & their limitations are known n Results are actionable n Actions are taken (and count) n Lessons are learned and results improved n Appropriate methods are applied & their limitations are known n Results are actionable n Actions are taken (and count) n Lessons are learned and results improved

People in business “are finding that while they have more numbers than ever before, they still do not understand what they mean.” From “Understanding Variation” by Donald Wheeler SPC Press People in business “are finding that while they have more numbers than ever before, they still do not understand what they mean.” From “Understanding Variation” by Donald Wheeler SPC Press Effective Statistics

Effective Statistics-one perspective Statistics are effective, to the extent they support achieving business objectives more economically. Statistics are effective, to the extent they support achieving business objectives more economically.

n The application objective is clear n The data source is understood & appropriate n The application objective is clear n The data source is understood & appropriate What Characteristics Make Statistics Effective?

n The appropriate methods are applied & their limitations are known n The results are actionable n Actions make a difference n The appropriate methods are applied & their limitations are known n The results are actionable n Actions make a difference

Effective Statistics Result from an effective system UnderstandtheObjectiveUnderstandtheObjectivePerformAnalysisPerformAnalysisCollectDataCollectData ReportResultsReportResults TakeActionTakeAction Learn from Results Results

Some Important Skills UnderstandtheObjectiveUnderstandtheObjectiveCollectDataCollectDataPerformAnalysisPerformAnalysis ReportResultsReportResults TakeActionTakeAction Learn from Results Results

Ability to understand the true problem n People skills to co-discover it n Technical skills to diagnose it Ability to understand the true problem n People skills to co-discover it n Technical skills to diagnose it UnderstandtheObjectiveUnderstandtheObjective

“Often the consultant’s most valuable contribution to a client is the redefinition of the problem…. The presenting problem and the real (or underlying) problem are usually different” From “Flawless Consulting” by Peter Block University Associates, Inc UnderstandtheObjectiveUnderstandtheObjective

Some Important Skills CollectDataCollectDataUnderstandtheObjectiveUnderstandtheObjectivePerformAnalysisPerformAnalysis ReportResultsReportResults TakeActionTakeAction Learn from Results Results

Ability to assess the data source integrity and limitations n What answers can be determined n What answers cannot Ability to assess the data source integrity and limitations n What answers can be determined n What answers cannot CollectDataCollectData

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

What must be kept in mind, however, is that in every case, the figures are first put down by a village watchman, and he puts down anything he damn well pleases.” Sir Joseph Stamp Her Majesty’s Collector of Inland Revenue CollectDataCollectData

Some Important Skills UnderstandtheObjectiveUnderstandtheObjectiveCollectDataCollectDataPerformAnalysisPerformAnalysis ReportResultsReportResults TakeActionTakeAction Learn from Results Results

Ability to apply the right techniques n Set an appropriate approach n Perform the analysis correctly Ability to apply the right techniques n Set an appropriate approach n Perform the analysis correctly PerformAnalysisPerformAnalysis

Some Important Skills UnderstandtheObjectiveUnderstandtheObjectiveCollectDataCollectDataPerformAnalysisPerformAnalysis ReportResultsReportResults TakeActionTakeAction Learn from Results Results

Present an effective conclusion n Readily grasped n Complete n what results mean n what they don’t n Actionable Present an effective conclusion n Readily grasped n Complete n what results mean n what they don’t n Actionable ReportResultsReportResults

“Our life is frittered away by detail… Simplify, simplify.” Henry David Thoreau “Our life is frittered away by detail… Simplify, simplify.” Henry David Thoreau ReportResultsReportResults

Effective Statistics UnderstandtheObjectiveUnderstandtheObjectiveCollectDataCollectDataPerformAnalysisPerformAnalysis ReportResultsReportResults TakeActionTakeAction Learn from Results Results

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

“If there are any measures currently in your organization that can vary dramatically without causing anyone to change their behavior, the measure is a waste and should be eliminated” From”Fast Cycle Time” By Cristopher Meyer The Free Press, 1993

Effective Statistics UnderstandtheObjectiveUnderstandtheObjectiveCollectDataCollectDataPerformAnalysisPerformAnalysis ReportResultsReportResults TakeActionTakeAction Learn from Results Results

“The biggest obstacle to learn anything is believing you already know it.” From: The Only Things that Matters By Karl Albrecht Harper Collins Publishing, 1992 Learn from Results Results

Effective Statistics - a system UnderstandtheObjectiveUnderstandtheObjectiveCollectDataCollectDataPerformAnalysisPerformAnalysisReportResultsReportResults TakeActionTakeAction Learn from Results Results

Some Applications at HP n Obtaining useful customer information n Optimizing distribution channels n Forecasting n Inventories n Obtaining useful customer information n Optimizing distribution channels n Forecasting n Inventories

n New product research n Evaluating new products n Manufacturing process control n Solving problems n Managing processes n New product research n Evaluating new products n Manufacturing process control n Solving problems n Managing processes