Stat Uses Flashcards
Mean (xBar)
Value that is the sum of the values divided by the number of values in a data set
Median
Value positioned in the middle of a data set
Mode
Value that appears most often in a data set
Range
Subtract the smallest value from the largest value in a data set
Mean Absolute Deviation (MAD)
Distance of a value from the Mean in Absolute Value
Variance
MAD divided by number of values in a data set
Standard Deviation (SD)
The square root of Variance
External Environment Factors
Technology, Social & Cultural Elements, Economics, Legal & Political Elements, Competition
Internal Environment Factors
Attribute measures, Effectiveness measures, Efficiency measures
VOC
Identify customer, capture voice of customer, collect and analyze, formulate conclusions, act on conclusions
Quality Function Deployment (QFD)
Convert customer expectations into technical requirements for each stage of product or service development and production
House of Quality (QFD)
WHAT identifies customer requirements
HOW identifies technical requirements
Competitive Evaluation measures how well all products available meet customer expectations
Average Rate of Return (ARR)
net annual savings / average investment
Payback Period
initial investment / net annual cash savings
Discounted Cash Flow (DCF)
Use DCF table to find % of discount over period of time
Net Present Value (NPV)
Use DCF tables to find % of discount over years to initial investment
Internal Rate of Return (IRR)
Use DCF to determine the interest rate that will make the DCF equal to the initial investment
Unit
What you make
Defect
Output that does not meet external or internal customer expectations
Opportunity
The chance to satisfy the customer or generate a defect