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Organizing, Charting and Graphing Data: Creating Information for Better DecisionMaking


Time-Series data is most common type used for presentations to management. The 'Standalone' Test: ... Example: time it takes to drive to work each day ... – PowerPoint PPT presentation

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Title: Organizing, Charting and Graphing Data: Creating Information for Better DecisionMaking

Organizing, Charting and Graphing Data Creating
Information for Better Decision-Making
  • Using QI Macros in MS Excel

Importance of Data Information
  • If you can not measure it, you can not improve
  • What gets measured, gets done…
    Lord Kelvin
  • (British physicist and engineer William
  • "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."

Importance of Data Information
  • Managements 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 . . .
  • Terence T. Burton,
  • Managing
  • The Center for Excellence in
    Operations, Inc

Some Basics
  • Any set of data (dataset) can be analyzed and
  • 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

  • Purpose
  • Whats the Point clear, effective
  • Whats 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…

Data Types
  • Qualitative/Categorical/Discrete
  • Counts, groupings, Yes/No
  • Quantitative/Numerical/Continuous
  • Measurements, fractional values

(Data) Tables
  • Used to present summary info. in row/column
  • Provides several data points for a particular
  • Typically used in research reports
  • Data can be used to create other types of charts
    Pareto, Scatter diagrams…

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

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
  • Beware of the Other categories/slices S/B
    smaller than the other slices.

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
  • Can be used to show parts of the whole (stacked
  • A widely used bar chart for for Q. purposes is
  • Pareto Analysis, named after Italian economist
    Vilfredo Pareto, who, in the early 1900s found
    that 80 of countrys land (wealth) was owned by
    top 20 of the population.
  • Made popular by Dr. Joseph Juran in the 1940s 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…

Bar Charts Pareto Analysis
Run Charts
  • Time-series charts Trend charts Control charts
  • Illustrates performance (TREND) over time (some
    defined timeframe) indicates rate of change over
  • 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

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
  • - Dr. Donald Wheeler, Building Continual
  • Most effective process behavior chart is the
    Individuals or X chart.

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
  • 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

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.

Signals Most Common Rules for Detecting Out
of Control Conditions for X charts
  • Point(s) Outside the Control Limits (variation
  • 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
  • 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

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.

Other Q. Charts
  • Histogram frequency distribution
  • Illustrates the shape of the distribution of
    quantitative (numerical) data helps to indicate
  • Scatter diagram/Correlation chart
  • Illustrates the strength of the relationship
    between 2 variables (not necessarily
  • 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

Using QI Macros in Excel
  • Start with raw dataset (e.g. import data into
  • May need to format date field if HTML
  • May need to scrub the data
  • Make copy of worksheet ltCtrlgt worksheet (to keep
    raw data intact) delete any columns or rows not
    needed in new worksheet
  • Sort data into chronological order oldest to
    most recent
  • Highlight data set then
  • Data Sort (sort by) date field - Ascending

Using QI Macros in Excel
  • Categorize Event Data
  • O Operations
  • S Science
  • N Neither (others)
  • Pie Chart Use COUNTIF function to summarize

Using QI Macros in Excel
  • Determine your purpose/message to identify want
    to chart/graph
  • Trend of events over time
  • Establish timeframe weekly, MONTHLY, quarterly…
  • Breakdown/Distribution of Events
  • e.g. in Operations depts. vs. Science depts.
  • label each event as either O for Operations or S
    for Science by adding a field (column) to the
    data set
  • based on six sigma concept of opportunities.
  • Calculate then graph rates whenever population
    varies widely (i.e. opportunities change over
    time), mix is high / opportunities do not remain

Summarizing Data for Pareto Analysis Using
  • Copy visible cells only
  • If some cells, rows, or columns on your worksheet
    are not displayed, you have the option of copying
    all cells or only the visible cells. For example,
    you can choose to copy only the displayed summary
    data on an outlined worksheet.
  • Select the cells that you want to copy.
  • On the Edit menu, click Go To.
  • In the Go To dialog box, click Special.
  • In the Go To Special dialog box, click Visible
    cells only, and then click OK.
  • Click Copy on the Standard toolbar, or press
  • Select the upper-left cell of the paste area.
  • Tip   To move or copy a selection to a different
    worksheet or workbook, click another worksheet
    tab or switch to another workbook, and then
    select the upper-left cell of the paste area.
  • Click Paste on the Standard toolbar, or press

Descriptive Statistics
  • Starting point for analyzing a set of data
  • Basic statistics
  • Mean
  • Median
  • Mode
  • Central Tendency
  • Variation
  • Range
  • Variance
  • Standard Deviation (square root of variance)
  • In Excel Tools-Data Analysis-Descriptive

Importance of Data Information
  • There are those who look at things the way they
    are and ask why…I dream of things that never were
    and ask why not? - George Bernard Shaw
    (Robert Kennedy)
  • It is not too late to seek a better world.
    - Tennyson (Robert Kennedy)
  • Its not to late to seek a better lab but we need
    to better understand WHAT to improve…
  • then HOW…