Statistics Is a Science Concerned with “the Collection, Organization, Analysis, Interpretation, and Presentation of Data.”

Zhang, Kun / Mar. 24, 2015                                             6/301/1

Statistics is a science concerned with “the collection, organization, analysis, interpretation, and presentation of data.” Statistics is essential for quality and for implementing a continuous improvement philosophy. Statistical methods help managers make sense of data and gain insight about the nature of variation in the processes they manage. All managers, supervisors, and production and clerical workers should have some knowledge of basic statistical methods and applications. Technology, such as today’s powerful PCs and user-friendly software for data analysis and visualization, has greatly facilitated the ability to use statistics and quality tools in daily work.

The use of statistical methods in quality dates back to 1903, when the Bell System faced a problem designing its central offices. A telephone subscriber takes the phone off the hook and gets a dial tone, meaning that he is connected to a trunk line that goes to the central office. The question was, “How many of those lines do you need?” Theoretically, every subscriber could use the phone at the same time, but in reality only a few percent actually do. Analysts collected and analyzed statistical information on the demand day-by-day, hour-by-hour, and identified the peak periods to determine how many lines were required to meet a service standard. In the 1920s, Bell Labs thought that statistical tools would have applications in the factory and began to experiment with statistical sampling, eventually leading to the development of control charts. Joseph was involved in trying to sell this new technology in the factories, but had little success until World War II, when the push to improve quality in the military began with the implementation of statistical methods in factories in earnest. Since then, statistical methods have found numerous applications in quality, including product and market analysis, product and process design, process control, testing and inspection, identification and verification of process improvements, and reliability analysis. Statistical methods are fundamental to Six Sigma practice. In fact, Six Sigma has led to a renaissance of statistics in business; workers at all organizational levels are receiving statistical training that had never been done before.