Effective Statistics
One perspective from
a high tech business
Effective Statistics
An effective system requires
the ability to ensure
 Application objectives
are clear
 Data sources are
understood & appropriate




Appropriate methods are
applied & their limitations
are known
Results are actionable
Actions are taken (and count)
Lessons are learned and
results improved
Effective Statistics
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-one
perspective
Statistics are effective, to the
extent they support achieving
business objectives more
economically.
What Characteristics Make
Statistics Effective?
The application
objective is clear
 The data
source is
understood
& appropriate




The appropriate methods are
applied & their limitations are
known
The results are actionable
Actions make a difference
Effective Statistics
Understand
the
Objective
Collect
Data
Perform
Analysis
Report
Results
Learn from
Results
Take
Action
Result from an effective system
Some Important Skills
Understand
the
Objective
Collect
Data
Perform
Analysis
Report
Results
Learn from
Results
Take
Action
Understand
the
Objective
Ability to understand
the true problem
 People skills to co-discover it
 Technical skills to diagnose it
Understand
the
Objective
“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. 1981
Some Important Skills
Understand
the
Objective
Collect
Data
Perform
Analysis
Report
Results
Learn from
Results
Take
Action
Collect
Data
Ability to assess the data
source integrity and limitations
 What answers can
be determined
 What answers cannot
Collect
Data
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.
Collect
Data
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
Some Important Skills
Understand
the
Objective
Collect
Data
Perform
Analysis
Report
Results
Learn from
Results
Take
Action
Perform
Analysis
Ability to apply the right
techniques
 Set an appropriate approach
 Perform the analysis correctly
Some Important Skills
Understand
the
Objective
Collect
Data
Perform
Analysis
Report
Results
Learn from
Results
Take
Action
Report
Results
Present an effective conclusion
 Readily grasped
 Complete
 what results mean
 what they don’t
 Actionable
Report
Results
“Our life is frittered away
by detail…
Simplify, simplify.”
Henry David Thoreau
Effective Statistics
Understand
the
Objective
Collect
Data
Perform
Analysis
Report
Results
Learn from
Results
Take
Action
Take
Action
“The fundamental reason
we measure anything in
an organization is to change
behavior.
“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
Understand
the
Objective
Collect
Data
Perform
Analysis
Report
Results
Learn from
Results
Take
Action
Learn from
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
Effective Statistics - a system
Understand
the
Objective
Collect
Data
Perform
Analysis
Report
Results
Learn from
Results
Take
Action
Some Applications at HP
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Obtaining useful customer
information
Optimizing distribution
channels
Forecasting
Inventories
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New product research
Evaluating new products
Manufacturing process
control
Solving problems
Managing processes