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Sequence of Presentation

Part 1- What is Statistical Thinking - 60 Min

Part 2 - What is Statistics - 90 Min
Part 3 - Exercise - 30 Min
Total 180 min

* Breaks Incl

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 Part 1

What is Statistical Thinking

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14 Statistic
14 Boys Statistics and Variable
14 Boys Absent from the Class Statistical Thinking dated 19 Nov
2019
Statistics and Variable and Context make information

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" SQC (statistical quality control) makes
it possible to attain both traditional
aspirations: high quality and productivity
on one hand, work worthy of human
beings on the other.“

( Peter Drucker, The Emerging Theory of Manufacturing,

Harvard Business Review, May-June, 1990.)

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What is Statistical Thinking?

Statistical Thinking is a common methodology for

Continuous Improvement applicable to everything
we do

Statistical Thinking ensures that we improve

efficiently in a real and lasting manner to maintain
and improve our competitiveness

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Statistical Thinking Process
1. Notion of Process
2. Understanding and dealing with Variation
3. Understanding and appropriate use of
Statistical Tools
4. Systematic approach to improvement

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Baldrige Award scoring system is based on three elements: Approach,
Deployment, and Results

Approach : Systematic Approach, notion of process : use of appropriate

tools
Deployment : All processes
Results : Measurement and concepts of variation

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 ELEMENTS OF STATISTICAL THINKING

The four elements of statistical thinking are:

- Notion of Process
- Understanding and dealing with Variation
- Understanding and appropriate use of
Statistical Tools
- Systematic approach to process
improvement

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Any activity can be portrayed as the
central part of process
Inputs activity outputs
suppliers quality
machines cost
material responsiveness
methods
Environment
measurement

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Tools for describing processes include
process flow diagram
cause and effect diagram
• Appropriate level of detail in process description is critical
• It is more difficult to think of non-manufacturing work as a process
because not tangible usually not well documented (no blueprint)
we are not used to doing so
• Immediate consequences of consideration of work as a process
encourages concentration on process, not results (PROCESS
FOCUSED) forces customer focus (CUSTOMER DRIVEN)
STANDARDIZATION ( best current practice) is possible
recognizes role of suppliers and the importance of UP-STREAM
QUALITY
N.B. ideas of INTERNAL and EXTERNAL suppliers and
customers process may have many customers and many suppliers
process may have many inputs and many outputs

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 A note on a university notice board reads:

“If it moves its Biology; if it stinks its

Chemistry; if it doesn’t work, its Physics; and
if it puts you to sleep its Statistics!”

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 Chapter 1

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 Bengali Baba

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 ?

• Why is a physician held in much higher

esteem than a statistician?

• A physician makes an analysis of a complex

illness whereas a statistician makes you ill
with a complex analysis!

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 Research on Cause of Blood Sugar
(Bongaeo et al 2012)
• Report Highlights
– 54 % Causes due to Heredity
– 20 % causes Due to Weak Diet
– 20% causes due to High Sugar Intake
– 06 % causes due to Smoking

What is the major cause of blood sugar?

Why did you conclude that?

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 NOTE
• Due to some administrative
reasons the research
quoted moment ago was
not done

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 Current Era
• Productionism
– Quality is conformance to Standards

• Consumerism
– Quality is meeting a Customer’s delight

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 Stat Thinking - H G Wells
• "Statistical thinking will one day be as
necessary for efficient citizenship as the ability
to read and write."

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 Stat Thinking - Lord Kelvin
• "When you can measure what you are
speaking about and express it in numbers, you
know something about it. When you cannot
express it in numbers, your knowledge is of a
meagre and unsatisfactory kind."

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 What is Statistical Thinking?
• It is well recognized that in order to maintain and
improve our competitiveness, we need to continually
improve all aspects of our business at an increasing
rate. Statistical Thinking provides a common
methodology for Continuous Improvement that is
applicable to everything we do.
• Moreover, Statistical Thinking will ensure that we
improve efficiently and in a real and lasting manner.

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 Statistical Thinking
(Benz –vi and Garfield 2005)

• It is understanding of why and how statistical

investigations are conducted and the underlying “big
ideas” that includes the omnipresent nature of variation
and when and how to use appropriate methods of data
analysis such as numerical summaries and visual displays
of data etc
• It is understanding of the nature of sampling, how we
make inferences from samples to populations, and why
designed experiments are needed in order to establish
causation

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 Statistical Thinking
(Benz –vi and Garfield 2005)

• It is understanding of how models are used to simulate random phenomena,

how data are produced to estimate probabilities, and how, when, and why
existing inferential tools used
• It is to understand and utilize the context of a problem in forming investigations
and drawing conclusions, and recognizing and understanding the entire process
(from question posing to data collection to choosing analyses to testing
assumptions, etc.). Finally, statistical thinkers are able to critique and evaluate
results of a problem solved or a statistical study
• According to Benz –vi and Garfield ( 2005) it has 4 dimensions…….

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 4 Dimensions

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 Unfortunately
• We Don’t Agree to
• Benz –vi and Garfield (2005) for their four-
dimensional framework reprinted from “Statistical
Thinking in Empirical Enquiry,” by C. J. Wild and M.
Pfannkuch, 1999, International Statistical Review,
67, p. 226. Copyright 1999 by International
Statistical Institute)

• Then?

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 What is Statistical Thinking?
The practice of Statistical Thinking consists of the
application of the following elements to all
business activities in conjunction with Corporate
values and objectives.
•1. U / Std notion of process (What we do)
•2. U / Std and deal with variation
•3. U / Std and use appropriate statistical tools
•4. Systematic approach to improvement

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 CONTINUOUS IMPROVEMENT
• Continuous improvement is an ongoing effort to
improve products, services or processes. These
efforts can seek “incremental” improvement over
time or “breakthrough” improvement all at once.
• Among the most widely used tools for continuous
improvement is a four-step quality model—
the PDCA Cycle also known as Deming Cycle or
Shewhart Cycle
• Named after its proposer, the US mathematician Dr. Walter Shewart (1891-1967)

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 PDCA Cycle
• Plan: Identify an opportunity and plan for change.
• Do: Implement the change on a small scale.
• Check: Use data to analyze the results of the change
and determine whether it made a difference.
• Act: If the change was successful, implement it on a
wider scale and continuously assess your results. If
the change did not work, begin the cycle again.

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 Continuous or Continual?
The terms
continuous improvement and
continual improvement are frequently used
interchangeably. But some quality practitioners
make the following distinction:
•Continual improvement: a broader term preferred
by W. Edwards Deming to refer to general processes
of improvement - encompassing “discontinuous”
improvements—that is, many different approaches,
covering different areas.

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 Continuous or Continual?
…..
Continuous improvement: a subset of continual
improvement, with a more specific focus on linear,
incremental improvement within an existing process.
Some practitioners also associate continuous
improvement more closely with techniques of
Statistical Process Control

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 Why Statistical Thinking?
• Improved Statistical Thinking will lead to better
business decisions
• increased success in implementing programs
such as Variation Reduction, Synchronous
Manufacturing, JlT, SPC etc
• better human relations " SQC (statistical quality
control) makes it possible to attain both
traditional aspirations: high quality and
productivity on one hand, work worthy of
human beings on the other.“ ( Peter Drucker, The Emerging
Theory of Manufacturing, Harvard Business Review, May-June, 1990.)

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 Why Statistical Thinking?
• Statistical Thinking can be applied throughout an
organization, not only in manufacturing
• - large gains possible in non-manufacturing
processes
• - high percentage of work in a manufacturing
organization is devoted to service activities
(Management, Engineering, Maintenance,
Purchasing, Finance etc)

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 ELEMENTS OF
STATISTICAL THINKING
The four elements of statistical thinking are:
•- Notion of process
•- Understanding and dealing with variation
(Centrifugal) and central tendency (Centripital)
•- Understanding and appropriate use of
statistical tools - systematic approach to process
improvement ..(Quality Engineering)

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 NOTION OF PROCESS
Any activity can be portrayed as the central part of
a process

Inputs Process Output

Suppliers Environment Quality

Machines Machine Cost
Methods Humans Responsiveness
Material Skills Customer Fd Bk
Measurement
Note that customers and suppliers should beconsidered part of the
process definition (CUSTOMER FOCUS)
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 Tools for describing processes
• Tools for describing processes include
– process flow diagram
– cause and effect diagram
Appropriate level of detail in process description is
critical
It is more difficult to think of non-manufacturing
work as a process because
– not tangible
– usually not well documented (no blueprint)
– we are not used to doing so
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 Tools for describing processes
Immediate consequences of consideration of work
as a process are
•encourages concentration on process, not results
(PROCESS FOCUSED)
•forces customer focus (CUSTOMER DRIVEN)
•STANDARDIZATION ( best current practice) is
possible

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 TQM & Customer Orientation
Recognizes role of suppliers and the importance of
UP-STREAM QUALITY (TQM)
•ideas of INTERNAL and EXTERNAL suppliers and
customers
•process may have many customers and many
suppliers
•process may have many inputs and many outputs

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 UNDERSTANDING AND DEALING
WITH VARIATION

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 Summary
Statistical Thinking includes 4 aspects
•1. Understanding Process
•2. Understanding and measuring Variation
•3. Researching the truth
•4. Applying Corrections as a function of
Continuous Improvement

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