Appendix A: Deming s 14 Points for Management

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1 Appendix A: Deming s 14 Points for Management All anyone asks for is a chance to work with pride. W. Edwards Deming* 1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. 8. Drive out fear, so that everyone may work effectively for the company. 9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. * 217

2 218 Transactional Six Sigma and Lean Servicing 11. a. Eliminate work standards (quotas) on the factory floor. Substitute leadership. b. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership. 12. a. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. b. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective. 13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody s job.

3 Appendix B: Statistical Tables Used for Six Sigma B.1 AREA UNDER THE NORMAL CURVE Table B.1 contains the area under the standard normal curve from 0 to z. It can be used to compute the cumulative distribution function values for the standard normal distribution. Table B.1 utilizes the symmetry of the normal distribution, so what in fact is given is P[ 0 x a ] where a is the value of interest. This is demonstrated in the graph below for a = 0.5. The shaded area of the curve represents the probability that x is between 0 and a. z 0.4 Normal PDF 0.3 Probabilty X 219

4 TABLE B.1 Critical Values for the Normal Distribution Z Transactional Six Sigma and Lean Servicing

5 TABLE B.1 Critical Values for the Normal Distribution Z Adapted from the National Institute of Standards and Technology Engineering Statistics Handbook. Appendix B: Statistical Tables Used for Six Sigma 221

6 222 Transactional Six Sigma and Lean Servicing B.2 UPPER CRITICAL VALUES OF THE STUDENT S t DISTRIBUTION B.2.1 HOW TO USE THIS TABLE Table B.2 contains the upper critical values of the student s t distribution. The upper critical values are computed using the percent point function. Due to the symmetry of the t distribution, this table can be used for both one-sided (lower and upper) and two-sided tests using the appropriate value of α. The significance level, α, is demonstrated with the graph below, which plots a t distribution with 10 degrees of freedom. The most commonly used significance level is α =.05. For a two-sided test, we compute the percent point function at α/2 (.025). If the absolute value of the test statistic is greater than the upper critical value (.025), then we reject the null hypothesis. Due to the symmetry of the t distribution, we tabulate only the upper critical values in Table B t PDF (two-sided test at alpha = 0.05) 0.3 Probabilty alpha = alpha = X Given a specified value for α: For a two-sided test, find the column corresponding to α/2 and reject the null hypothesis if the absolute value of the test statistic is greater than the value of t α/2 in Table B.2. For an upper one-sided test, find the column corresponding to α and reject the null hypothesis if the test statistic is greater than the Table B.2 value. For a lower one-sided test, find the column corresponding to α and reject the null hypothesis if the test statistic is less than the negative of the Table B.2 value.

7 Appendix B: Statistical Tables Used for Six Sigma 223 TABLE B.2 Upper Critical Values of Student s t Distribution with Degrees of Freedom (ν) Probability of Exceeding the Critical Value ν

8 224 Transactional Six Sigma and Lean Servicing TABLE B.2 (continued) Upper Critical Values of Student s t Distribution with Degrees of Freedom (ν) Probability of Exceeding the Critical Value ν

9 Appendix B: Statistical Tables Used for Six Sigma 225 TABLE B.2 (continued) Upper Critical Values of Student s t Distribution with Degrees of Freedom (ν) Probability of Exceeding the Critical Value ν Adapted from the National Institute of Standards and Technology Engineering Statistics Handbook.

10 226 Transactional Six Sigma and Lean Servicing B.3 UPPER CRITICAL VALUES OF THE F DISTRIBUTION B.3.1 HOW TO USE THIS TABLE Table B.3 contains the upper critical values of the F distribution. This table is used for one-sided F tests at the α =.05,.10, and.01 levels. More specifically, a test statistic is computed with ν 1 and ν 2 degrees of freedom, and the result is compared to Table B.3. For a one-sided test, the null hypothesis is rejected when the test statistic is greater than the tabled value. This is demonstrated with the graph of an F distribution with ν 1 = 10 and ν 2 = 10. The shaded area of the graph indicates the rejection region at the α significance level. Because this is a one-sided test, we have α probability in the upper tail of exceeding the critical value and zero in the lower tail. Because the F distribution is asymmetric, a twosided test requires a set of tables (not included here) that contain the rejection regions for both the lower and upper tails F PDF (one-sided test at alpha = 0.05) Probabilty alpha = X

11 TABLE B.3 Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom 5% Significance Level F.05 (ν 1,ν 2 ) ν ν 1 Appendix B: Statistical Tables Used for Six Sigma 227

12 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom 5% Significance Level F.05 (ν 1,ν 2 ) ν ν Transactional Six Sigma and Lean Servicing

13 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom Appendix B: Statistical Tables Used for Six Sigma 229

14 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom 5% Significance Level F.05 (ν 1,ν 2 ) ν ν Transactional Six Sigma and Lean Servicing

15 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom ν ν 1 Appendix B: Statistical Tables Used for Six Sigma 231

16 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom 5% Significance Level F.05 (ν 1,ν 2 ) ν ν Transactional Six Sigma and Lean Servicing

17 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom Appendix B: Statistical Tables Used for Six Sigma 233

18 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom 5% Significance Level F.05 (ν 1,ν 2 ) ν ν Transactional Six Sigma and Lean Servicing

19 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom Appendix B: Statistical Tables Used for Six Sigma 235

20 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom 1% Significance Level F.01 (ν 1,ν 2 ) ν ν Transactional Six Sigma and Lean Servicing

21 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom Appendix B: Statistical Tables Used for Six Sigma 237

22 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom 1% Significance Level F.01 (ν 1,ν 2 ) ν ν Transactional Six Sigma and Lean Servicing

23 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom Appendix B: Statistical Tables Used for Six Sigma 239

24 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom 1% Significance Level F.01 (ν 1,ν 2 ) ν ν Transactional Six Sigma and Lean Servicing

25 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom Appendix B: Statistical Tables Used for Six Sigma 241

26 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom 1% Significance Level F.01 (ν 1,ν 2 ) ν ν Transactional Six Sigma and Lean Servicing

27 TABLE B.3 (continued) Upper Critical Values of the F Distribution for ν 1 Numerator Degrees of Freedom and ν 2 Denominator Degrees of Freedom Adapted from the National Institute of Standards and Technology Engineering Statistics Handbook. Appendix B: Statistical Tables Used for Six Sigma 243

28 244 Transactional Six Sigma and Lean Servicing B.4 CRITICAL VALUES OF THE CHI-SQUARE DISTRIBUTION B.4.1 HOW TO USE THIS TABLE Table B.4 contains the critical values of the chi-square distribution. Because of the lack of symmetry of the chi-square distribution, the table is divided into two parts: for the upper and lower tails of the distribution. A test statistic with ν degrees of freedom is computed from the data. For upper one-sided tests, the test statistic is compared with a value from the upper critical values portion of the table. For two-sided tests, the test statistic is compared with values from both parts of the table. The significance level, α, is demonstrated with the graph below, which shows a chi-square distribution with 3 degrees of freedom for a two-sided test at significance level α =.05. If the test statistic is greater than the upper critical value or less than the lower critical value, we reject the null hypothesis. Specific instructions are given below. Chi-Square PDF (two-sided test at alpha = 0.05) Probability X Given a specified value for α: For a two-sided test, find the column corresponding to α/2 in the upper critical values section of the table and reject the null hypothesis if the test statistic is greater than the tabled value. Similarly, find the column corresponding to 1 α/2 in the lower critical values portion of the table and reject the null hypothesis if the test statistic is less than the tabled value. For an upper one-sided test, find the column corresponding to α in the upper critical values section and reject the null hypothesis if the test statistic is greater than the tabled value. For a lower one-sided test, find the column corresponding to 1 α in the lower critical values section and reject the null hypothesis if the computed test statistic is less than the tabled value.

29 Appendix B: Statistical Tables Used for Six Sigma 245 TABLE B.4 Critical Values of Chi-Square Distribution with ν Degrees of Freedom Upper Critical Values Probability of exceeding the critical value ν

30 246 Transactional Six Sigma and Lean Servicing TABLE B.4 (continued) Critical Values of Chi-Square Distribution with ν Degrees of Freedom Upper Critical Values Probability of exceeding the critical value ν

31 Appendix B: Statistical Tables Used for Six Sigma 247 TABLE B.4 (continued) Critical Values of Chi-Square Distribution with ν Degrees of Freedom Upper Critical Values Probability of exceeding the critical value ν Lower Critical Values Probability of exceeding the critical value ν

32 248 Transactional Six Sigma and Lean Servicing TABLE B.4 (continued) Critical Values of Chi-Square Distribution with ν Degrees of Freedom Lower Critical Values Probability of exceeding the critical value ν

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