Statistical thinking is a tool for process analysis. Statistical thinking relates processes and statistics, and is based on the following principles:
All work occurs in a system of interconnected processes.
Variation exists in all processes
Understanding and reducing variation are keys to success.
W. Edwards Deming promoted the concepts of statistical thinking, using two powerful experiments:
1. The Red Bead experiment,[1] in which workers are tasked with running a more or less random procedure, yet the lowest "performing" workers are fired. The experiment demonstrates how the natural variability in a process can dwarf the contribution of individual workers' talent.
2. The Funnel experiment, again demonstrating that natural variability in a process can loom larger than it ought to.
The take home message from the experiments is that before management adjusts a process—such as by firing seemingly underperforming employees, or by making physical changes to an apparatus—they should consider all sources of variation in the process that led to the performance outcome.
Statistical thinking is a recognized method used as part of Six Sigma methodologies.
^"Red Bead Experiment - The W. Edwards Deming Institute". deming.org/. Retrieved 2023-06-13.
December 15, 2023
statistical, thinking, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor, june. This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Statistical thinking news newspapers books scholar JSTOR June 2023 Learn how and when to remove this template message Statistical thinking is a tool for process analysis Statistical thinking relates processes and statistics and is based on the following principles All work occurs in a system of interconnected processes Variation exists in all processes Understanding and reducing variation are keys to success W Edwards Deming promoted the concepts of statistical thinking using two powerful experiments 1 The Red Bead experiment 1 in which workers are tasked with running a more or less random procedure yet the lowest performing workers are fired The experiment demonstrates how the natural variability in a process can dwarf the contribution of individual workers talent 2 The Funnel experiment again demonstrating that natural variability in a process can loom larger than it ought to The take home message from the experiments is that before management adjusts a process such as by firing seemingly underperforming employees or by making physical changes to an apparatus they should consider all sources of variation in the process that led to the performance outcome Statistical thinking is a recognized method used as part of Six Sigma methodologies See also editSystems thinkingReferences edit Red Bead Experiment The W Edwards Deming Institute deming org Retrieved 2023 06 13 Retrieved from https en wikipedia org w index php title Statistical thinking amp oldid 1172632901, wikipedia, wiki, book, books, library,
