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 1 : Organizing, Charting and Graphing Data: Creating Information for Better Decision-Making Using “QI Macros” in MS Excel
 2 : Importance of Data & Information ‘If you can not measure it, you can not improve it…’ ‘What gets measured, gets done…’ – Lord Kelvin (British physicist and engineer William Thomson) "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 meager and unsatisfactory kind…; “…it may be the beginning of knowledge, but you have scarcely, in your thoughts, advanced to the stage of science, whatever the matter may be."
 3 : Importance of Data & Information “Management’s job is to know…” – Deming “…which systems are stable and which are not.” “Management is prediction.” – Deming “The goal is to transform data into information, and information into insight.” - Carly Fiorina “Without data, you are just another person with an opinion . . .”
 4 : Some Basics Any set of data (dataset) can be analyzed and charted. Chart Types Static = “Snapshots in Time”/fixed Pie charts Pareto (bar chart) Histogram Dynamic = Over some defined time periods/variable Time-Series data is most common type used for presentations to management The “Standalone” Test: What, when, where, good/bad direction, data source, creator
 5 : Tips Purpose What’s the Point: clear, effective What’s the Conclusion: obvious, correct Misleading? accidently or on purpose Anticipate Audience Response (Your Expectation) Information (i.e. status) OR Action? Quality of data Reliable? (timely, accurate, sufficient) May need to clean or “scrub” the data (“GIGO”) Scaling “for better or worse…”
 6 : Data Types Qualitative/Categorical/Discrete Counts, groupings, Yes/No Quantitative/Numerical/Continuous Measurements, fractional values
 7 : (Data) Tables Used to present summary info. in row/column format Provides several data points for a particular variable Typically used in research reports Data can be used to create other types of charts: Pareto, Scatter diagrams…
 8 : The Big 3 You Need to Know (KIS) Pie chart – “snapshot” in time Break down by percentage Pareto chart (Bar chart) – “snapshot” in time Vital few; trivial many Breakdown by quantity Run chart – time series; line graphs Control chart – variation “Opportunities” = Normalize the dat - Premise behind Six Sigma: dpmo
 9 : Pie Charts One of the more commonly used: Easy to read; Quick & to the point “Parts of the whole” Information Usually for Qualitative (category) data E.g. survey results Snapshot of some defined Timeframe ALWAYS include both percent AND raw numbers (or Total amount) Check to make sure the percentages add to 100% (rounded) Beware of the “Other” categories/slices – S/B smaller than the other slices.
 10 : Bar Charts & Pareto Analysis Displays individual values for comparison WITHIN a fixed timeframe Similar to Pie – breaks down categorical data usually as numbers (quantity) vs. percentages Can also be used for comparisons (side-by-side bars) Can be used to show parts of the whole (stacked bars) A widely used bar chart for for Q. purposes is the: Pareto Analysis, named after Italian economist Vilfredo Pareto, who, in the early 1900’s found that 80% of country’s land (wealth) was owned by top 20% of the population. Made popular by Dr. Joseph Juran in the 1940’s by demonstrating the “80-20 rule” applies in many business/industrial situations (“80% of a problem is caused by 20% of the causes”). illustrates top contributors to an issue/problem: “Vital few, trivial many” for taking ACTION Includes a Cum. % line (i.e. combo bar-line chart) to indicate contribution of each and all…
 11 : Bar Charts & Pareto Analysis
 12 : Run Charts Time-series charts; Trend charts; Control charts Illustrates performance (TREND) over time (some defined timeframe); indicates rate of change over time Used as the starting point to study/ understand trends and VARIATION. If direction is obvious (e.g. steep slope), use trend line function; if NOT use Control Charts (Excel)
 13 : Visualize Your Process (Behavior) “The process behavior chart allows you to separate the probable noise from the potential signals, so you can concentrate on the signals, where interesting things are happening, and can ignore the noise, where nothing much is going on.” - Dr. Donald Wheeler, “Building Continual Improvement” Most effective process behavior chart is the Individuals or “X” chart.
 14 : Control Charts Control charts (process behavior charts) are run charts with control (variation) limits (± 3s) where s is a measure of variability called the standard deviation (the square root of the variance for a dataset). A stable process (“in control”) produces predictable results consistently. The results are due to “chance” or common causes inherent in the system/process. Example: time it takes to drive to work each day An unstable process (“out of control”) indicates special causes are present. They are represented on the chart as either a point, set of points or a trend in your data. Stability “Rules” are used to determine these unstable conditions (and to help search for causes). Applying “Rules” allows for understanding of whether the process is: Stable (predictable) where the variation is random (natural, inherent) OR Unstable, special (assignable); i.e. whether a shift has occurred and/or the variability has increased!
 15 : “In Control” Is performance “stable”; i.e. in a state of statistical control, predictable within the limits, affected only by random variation (inherent in the process) not affected by unusual, outside influences with no assignable causes of variation.
 16 : Signals – Most Common Rules for Detecting “Out of Control” Conditions for “X” charts Point(s) Outside the Control Limits (variation increase?) A single point outside the limits is taken as an indication of the presence of an assignable cause which has a dominant effect. Runs Near the Limits (shift?) 3 out of 3 OR 3 out of 4 consecutive values in the upper or lower 25% (1/4) region between the limits is taken as an indication of an assignable cause which has a moderate but sustainable effect. Runs About the Center Line (shift?) 8 consecutive values on the same side of the central line (mean) is taken as an indication of an assignable cause which has a weak but sustainable effect. Trend Rules (changes in trend): 6 in a row (consecutive) trending up or down. 14 in a row alternating up and down
 17 : The Key to Improvement The path to improvement depends upon what type of variation is present. Investigation and reduction of variation is key to process improvement. “Statistical Thinking” Tenet #3: All improvement comes from understanding and reducing variation. basis for Six Sigma If the process is stable (displays predictable variation) improvement will only come by changing (a major portion of) the process. If the process is unstable (unpredictable) then improvement will come by finding and removing the assignable (special) causes first. Variations due to special causes are: localized in nature exceptions to the system considered abnormalities often specific to a: certain worker/group certain machine/equipment certain batch of material, etc.
 18 : Other “Q.” Charts Histogram – frequency distribution Illustrates the shape of the distribution of quantitative (numerical) data; helps to indicate normality Scatter diagram/Correlation chart Illustrates the strength of the relationship between 2 variables (not necessarily cause-effect) Concentration Diagram / “Measles” chart Shows the distribution of a problem/condition across some space (item, geographic area) Radar chart Shows changes or frequencies of data relative to a center point (target) and to each other
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