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1 CLASS LECTURE NOTES - What is Applied Statistics ...

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EXAMPLE 2 ( Application )<br />

12<br />

- Nashua Corporation (in NH) manufactures carbonless paper.<br />

- 1100 ft/min; used 3.6 lbs of chemicals/3000 sq.ft.<br />

- 3.6 lbs of chemicals were high. Idea to buy a costly coating head.<br />

- Operator was adjusting constantly.<br />

- Stat<strong>is</strong>tics was used to determine that adjustments were made based delayed data and so it didn’t<br />

pertain to current conditions.<br />

- New operating instructions led to fewer adjustments and reduced the average to 2.6lbs<br />

- Resulted in savings of $800,000/year in addition to not buying a new machine.<br />

BRAINSTORMING<br />

- Th<strong>is</strong> <strong>is</strong> a starting point for any analys<strong>is</strong>, more so in a stat<strong>is</strong>tical study.<br />

- Gather information about the problem by assembling a group of people involved.<br />

- Simple statement of the problem; get all ideas; group these into several classes.<br />

- Draw a cause-and-effect diagram. The following <strong>is</strong> an example.<br />

Cause-and-effect Diagram for Gas Mileage<br />

Measurements<br />

Materials<br />

Men<br />

Fuel tank<br />

Speedometer type<br />

Gage for pressure<br />

Gasoline type<br />

oil type<br />

fuel additiv e<br />

Driv er Training<br />

Driv er<br />

Number of passengers<br />

Weather conditions<br />

Terrain<br />

Highway or city<br />

Environment<br />

Methods<br />

Machines<br />

GAS MILEAGE<br />

Engine Warm-up time Tire type<br />

Tune-ups<br />

Transm<strong>is</strong>sion ty pe<br />

Tire pressure<br />

Tire rotation<br />

Air conditioner<br />

Ride breaks<br />

Front/Rear driv e<br />

Maintenance<br />

Weight<br />

Fast start<br />

carburator

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