Tag: statistics

Total 9 Posts

Calculating Rolled Throughput Yield (RTY)

One of the most poweful operational metrics I know of is Rolled Throughput Yield (RTY).  It’s used to assess the “true” yield of a given process.  This includes what we often call the “hidden factory” that plagues so many organizations… sucking profit right off their financial statements! Traditional Yield Let’s use

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Fun with Confidence Intervals – Part 2

Last night we began our discussion on confidence intervals. Specifically, we talked about the difference between population and sample parameters and how they play a major role in understanding what a confidence interval is. Tonight I am going to demonstrate how you can calculate a confidence interval of the mean.

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How beer influenced statistics

Back in the early 1900s a certain W.S. Gosset, an Englishmen, was tasked with brewing better beer.  Really, I’m being serious. Gosset was a bright man, with two degrees from Oxford, and was hired by Guinness to help them brew the best beer using statistical methods instead of the “tribal knowledge” approach most

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Span – GE’s Variation Weapon

GE is arguably one of the best examples of Six Sigma excellence today. An often heard phrase is, “Motorola invented Six Sigma and GE perfected it.”A slick “variation weapon” GE has developed is called Span. I have never worked for GE but have worked with many former GE employees who

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Demystifying Design of Experiments

I love Design of Experiments (DOE). Over the years I have done my fair share of them – everything from simple 2^2 full factorial designs to your more complicated Response Surface Methodology designs. Tonight I want to start by explaining what DOE’s are and what they are not. I will

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Regression – Part 3

This evening we will wrap up our discussion of regression. So far we have discussed what regression is and a few ways to determine whether our model is significant. Next up I want to discuss something called the least squares method and residuals. I will wrap it all up with

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Hypothesis Testing

One of my favorite statistical tools is hypothesis testing. We can use hypothesis testing for many purposes. For example, we would use the popular 2-sample t-test when we have two samples of variable data and want to understand if they represent different populations, statistically speaking of course. State the Null

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The Heated Law of Dispersion

One debate that often arises amongst my Six Sigma cohorts is when to use the standard deviation of a dataset and when we should use another measure of dispersion, namely the range. Descriptive Statistics Overview Let’s take a quick review from our descriptive statistics class. When we are looking at

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