STATISTICS

Never before has there been such a demand for statistical thinking as there is today.  With the current emphasis on quality in both the goods we manufacture and the services we provide, the study of statistics has experienced unprecedented growth.

        * In 1950, quality expert W. Edwards Deming spoke to the presidents of 21 Japanese companies and told them that they could overcome their reputation for shoddy products within five years if they would use statistical analysis to improve quality.  They followed the advice.

        * According to the New York Times, Motorola introduced quality control systems at its plant in Arcade, New York, and found that "many employees lacked the mathematical skills needed to understand the new statistics-based approach." 

        * David Hall, division statistical manager at Boeing Commercial Airplane Group, says that "right now, American industry is crying out for people with an understanding of statistics and the ability to communicate its use."

        * Jay Dean, Senior Vice President at Young & Rubicam Advertising, says that "Marketing is becoming tougher and tougher today.  There are more brands, increasing price competition, and more sophisticated consumers.  A tougher marketing environment requires more marketing research, and that means we're using statistics more often."

The emphasis on quality and the use of statistics affects manufacturing and service industries in many ways and at many levels.  Corporate executives use statistics to lower costs and increase profits, and manufacturing line workers use statistics to monitor quality.  Researchers, marketers, and consumer advocates rely on statistical methods and analyses to improve production methods, determine successful sales strategies, and combat fraud and unsafe products.

The information on this page is not of my own doing and I am not taking the credit for anything mentioned.  I found this information in a text book and thought it did a great job of explaining why statistics is important in  improving quality in businesses today.  -"Business Statistics" (Triola, Franklin)

   back home!