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Use Standard Deviation to Understand your Process Variation
One of the most important measures of variation is the standard deviation. The standard deviation (s) of a set of sample scores is a measure of variation of scores about the mean, and is defined by the following formula: Using this formula we can now compare the variation of the two pizza companies and note that the standard deviation for ABC Pizza (0.48 minutes) is much lower than the standard deviation for XYZ Pizza (1.82 minutes). This supports our original observation of the data and our results of the range as a quantification of the variation. In our definition of standard deviation, we referred to the standard deviation of sample data as s. If we want to calculate the standard deviation ( ) of a population, we would divide by the population size N, instead of n-1.The range may be misleading in this case because it only uses the maximum and minimum data set values. Standard deviation would be a better tools for variation in this case. You can see from these results that the two pizza parlors have the same measures of central tendency, so, on average, customers wait the same amount of time for pizzas at the two restaurants. Based on these measurements alone, we cannot see any distinguishable difference between the two processes. Page 1 > Variation: The Root Of All Process Evil Reproduction Without Permission Is Strictly Prohibited Copyright Requests Publish an Article: Do you have a Six Sigma tip, learning or case study? Share it with the largest community of Six Sigma professionals, and be recognized by your peers. It's a great way to promote your expertise and/or build your resume. Read more about submitting an article. "The Bottom Line" Links
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