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Statistics in Business to What

Managing to a significant reduction in variably is a key aspect of Six Sigma, which explains why statistics are used extensively throughout the quality management strategies of services companies and manufacturers alike (Bergquist, Albing, 2006).

Many organizations are creating enterprise-wide quality management systems that encompass product and service process audits, Six Sigma strategies for gaining greater performance from trimming wasted time and materials for processes, and the development of quality management levels (Elshennawy, 2004). In conjunction with all of these aspects of an enterprise quality management strategy, manufacturers are using Corrective Action/Preventative Action (CAPA) process workflows to evaluate how statistically evaluating product quality will affect preventative action taken to permanently remove variation from the sourcing, supply chain, production or services processes. Statistics are used to further analyze why a specific product or service process is out of its boundaries of performance over time. Further, statistics are also being used to provide insights into the causality of how integrating processes together can yield more efficiency.

Called Business Process Management (BPM) and Business Process Reengineering (BPR) these techniques are also using time series-based statistical data to analyze process improvement performance.

References

Bjarne Bergquist, & Maim Albing. (2006). Statistical Methods – Does Anyone Really Use Them? Total Quality Management & Business Excellence, 17(8), 961.

Ahmad K. Elshennawy. (2004). Quality in the New Age and the Body of Knowledge for Quality Engineers. Total Quality Management & Business Excellence, 15(5,6), 603-614.

Camille James. (2005). Manufacturings Prescription for Improving Healthcare Quality. Hospital Topics, 83(1), 2-8.

Spatz, Chris (2008). Basic Statistics: Tales of Distributions by Chris Spatz. Cengage Learning 9th ed. ISBN-13: 9780495502180

Qin Su, Zhao Li, Yong-tao Song, & Ting.

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