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Histograms
An important aspect of total quality is the identification and control of all the sources of
variation so that processes produce essentially the same result again and again. A histogram
is a tool that allows you to understand at a glance the variation that exists in a process.

Although the histogram is essentially a bar chart, it creates a “lumpy distribution curve” that
can be used to help identify and eliminate the causes of process variation. Histograms are
especially useful in the measure, analyze and control phases of the Lean Six Sigma
methodology.




What can it do for you?

   •   A histogram will show you the central value of a characteristic produced by your
       process, and the shape and size of the dispersion on either side of this central value.

   •   The shape and size of the dispersion will help identify otherwise hidden sources of
       variation.

   •   The data used to produce a histogram can ultimately be used to determine the
       capability of a process to produce output that consistently falls within specification limits.
How do you do it?

 1. Decide which Critical-To-Quality (CTQ) characteristic you wish to examine. This CTQ
    must be measurable on a linear scale. That is, the incremental value between units of
    measurement must be the same. For example, a micrometer or a thermometer or a
    stopwatch can produce linear data. Asking your customers to rate your performance from
    “poor” to “excellent” on a five-point scale probably will not.

 2. Measure the characteristic and record the results. If the characteristic is continually being
    produced—such as voltage in a line or temperature in an oven, or if there are too many
    items being produced to measure all of them, you will have to sample. Take care to
    ensure that your sampling is random.

 3. Count the number of individual data points. Add the values for each of the data points and
    divide by the number of points. This is the mean (or average) value.

 4. Determine the highest data value and the lowest data value. Subtract the lower number
    from the higher. This is the range.

 5. The next step is determining how many “classes” or bars your histogram should have.

                    To make an initial determination, you can use this table:
                               Number of             Number of
                               data points            classes
                                under 50               5 to 7
                                50 to 100             6 to 10
                               100 to 250             7 to 12
                                over 250              10 to 20

 6. Divide the range by the trial number of classes you selected. The resulting number will be
    your trial class interval (the horizontal graduation or width) for each bar on your chart. You
    may round or simplify this number to make it easier to work with, but the total number of
    classes should be within those shown above.

    In determining the number of classes and the class interval, consider how you are
    measuring data. Increase or decrease the number of classes or modify the class interval
    until there is essentially the same number of measurement possibilities in each class.

 7. Determine the class boundaries. You can do this by starting at the center of the range. If
    you have an odd number of classes, center the middle class approximately at the mid-
    point of the range, then alternately add or subtract the class interval to define the other
    class boundaries. If you have an even number of classes, begin the process of adding or
    subtracting the class interval at approximately the center of the range.
8. Tally the number of data points that fall in each of the classes. Add the frequency totals
    for each class. This number should equal the total number of data points. Divide the
    number of data points in each class by the total number of data points. This will give you
    the percentage of points falling in each class. Add the percentages of all the classes. The
    result should be approximately 100.

 9. Graph the results by beginning with the lowest measurement-value class. Make the bar
    height correspond to the percentage of data points that fall in that class. Draw the bar for
    the second class to the right and touching the first bar. Again, make the height
    correspond to the percentage of data points in that class. Continue in this way until you
    have drawn in all the classes.

 10. Draw a vertical dotted line through your histogram to represent the mean value of all your
     data points.

 11. If there are specification limits for the characteristic you are studying, indicate them as
     vertical lines as well.

 12. Title and label your histogram.

Now what?
The shape that your histogram takes tells a lot about your process. Often, it will tell you to dig
deeper for otherwise unseen causes of variation.

                                                                     The symmetrical or
                                                                     bell-shaped type of
                                                                          histogram:

                                                                   The mean value is in
                                                                     the middle of the
                                                                       range of data.

                                                                   The frequency is high
                                                                    in the middle of the
                                                                     range and falls off
                                                                     fairly evenly to the
                                                                        right and left.

                                                                     This shape occurs
                                                                        most often.
The “comb” or multi-modal
                                                  type of histogram:
                                               Adjacent classes alternate higher
                                                   and lower in frequency.

                                                   This usually indicates a data
                                             collection problem. The problem may
                                                 lie in how a characteristic was
                                                 measured or how values were
                                                            rounded.

                                              It could also indicate an error in the
                                                 calculation of class boundaries.



If the distribution of frequencies is
shifted noticeably to either side of the
center of the range, the distribution is
said to be skewed.
     When the histogram is
      positively skewed
The mean value is to the left of the
center of the range, and the frequency
decreases abruptly to the left but gently
to the right.

This shape normally occurs when the
lower limit, the one on the Left, is
controlled either by specification or
because values lower than a certain
value do not occur for some other reason.


                                               If the skewness of the
                                              distribution is even more
                                                  extreme, a clearly
                                            asymmetrical, precipice-type
                                               histogram is the result.
                                            This shape frequently occurs when a
                                            100% screening is being done for one
                                                     specification limit.
If the classes in
                                                                        the center of the
                                                                        distribution have
                                                                        more or less the
                                                                        same frequency,
                                                                            the resulting
                                                                        histogram looks
                                                                          like a plateau.
                                                                           This shape occurs
                                                                        when there is a mixture
                                                                        of two distributions with
                                                                         different mean values
                                                                            blended together.


Look for ways to stratify the data to separate the two distributions. You can then produce two
separate histograms to more accurately depict what is going on in the process.

      If two
  distributions
   with widely
different means
are combined in
 one data set,
   the plateau
splits to become
   twin peaks.
   The two separate
 distributions become
  much more evident
than with the plateau.

Examining the data to
    identify the two
different distributions
      will help you
   understand how
 variation is entering
      the process.
If there is a
                                  small,
                               essentially
                            disconnected
                           peak along with
                               a normal,
                             symmetrical
                             peak, this is
                                called an
                            isolated-peak
                               histogram.
                            It occurs when there
                            is a small amount of
                            data from a different
                           distribution included in
                              the data set. This
                           could also represent a
                             short-term process
                                abnormality, a
                           measurement error or
                               a data collection
                                   problem.

 If specification limits
 are involved in your
     process, the
    histogram is an
 especially valuable
      indicator for
   corrective action.

 The histogram
 shows that the
    process is
     centered
   between the
 limits with a good
margin on either side.
   Maintaining the
 process is all that is
      needed.
When the
                       process
                          is
                       centered
                       but with
                          no
                       margin, it
                         is a good
                       idea to work
                        at reducing
                       the variation
                           in the
                          process
                        since even
                       a slight shift
                           in the
                          process
                        center will
                          produce
                         defective
                         material.


  A process that
    would have
produced material
within specification
  limits if it were
centered is shifted
     to the left.

Action must be
taken to bring
   the mean
 closer to the
 center of the
 specification
     limits.
A histogram that
                                                                               shows a process that
                                                                              has too much variation
                                                                              to meet specifications
                                                                                no matter how it is
                                                                                    centered.
                                                                                  Action must be taken to
                                                                                  reduce variation in this
                                                                                         process.




A process that is both shifted, in this
case to the right, and has too much
              variation.
 Action is necessary to both center the process
              and reduce variation.

Conclusion:
A histogram is a picture of the statistical variation
in your process. Not only can histograms help
you know which processes need improvement,
they can also help you track that improvement.



                           Steven Bonacorsi is a Certified Lean Six Sigma Senior Master Black Belt instructor and
                           coach. Steven Bonacorsi has trained hundreds of Master Black Belts, Black Belts, Green
                           Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design
                           for Lean Six Sigma process improvement methodologies. He has led some of the largest
                           deployments in the world and has saved hundreds of millions with his project teams results.

                           The AIT Group, Inc.
                           Steven Bonacorsi, Vice President, MBA, MS-CIS, PMP
                           Lean Six Sigma Master Black Belt
                           3135 South Price Road, Suite 115
                           Chandler, AZ 85248-3549
                           Phone: +(1) 888.826.2484
                           sbonacorsi@comcast.net
                           http://www.linkedin.com/in/stevenbonacorsi
                           http://www.theaitgroup.com

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Histograms

  • 1. Histograms An important aspect of total quality is the identification and control of all the sources of variation so that processes produce essentially the same result again and again. A histogram is a tool that allows you to understand at a glance the variation that exists in a process. Although the histogram is essentially a bar chart, it creates a “lumpy distribution curve” that can be used to help identify and eliminate the causes of process variation. Histograms are especially useful in the measure, analyze and control phases of the Lean Six Sigma methodology. What can it do for you? • A histogram will show you the central value of a characteristic produced by your process, and the shape and size of the dispersion on either side of this central value. • The shape and size of the dispersion will help identify otherwise hidden sources of variation. • The data used to produce a histogram can ultimately be used to determine the capability of a process to produce output that consistently falls within specification limits.
  • 2. How do you do it? 1. Decide which Critical-To-Quality (CTQ) characteristic you wish to examine. This CTQ must be measurable on a linear scale. That is, the incremental value between units of measurement must be the same. For example, a micrometer or a thermometer or a stopwatch can produce linear data. Asking your customers to rate your performance from “poor” to “excellent” on a five-point scale probably will not. 2. Measure the characteristic and record the results. If the characteristic is continually being produced—such as voltage in a line or temperature in an oven, or if there are too many items being produced to measure all of them, you will have to sample. Take care to ensure that your sampling is random. 3. Count the number of individual data points. Add the values for each of the data points and divide by the number of points. This is the mean (or average) value. 4. Determine the highest data value and the lowest data value. Subtract the lower number from the higher. This is the range. 5. The next step is determining how many “classes” or bars your histogram should have. To make an initial determination, you can use this table: Number of Number of data points classes under 50 5 to 7 50 to 100 6 to 10 100 to 250 7 to 12 over 250 10 to 20 6. Divide the range by the trial number of classes you selected. The resulting number will be your trial class interval (the horizontal graduation or width) for each bar on your chart. You may round or simplify this number to make it easier to work with, but the total number of classes should be within those shown above. In determining the number of classes and the class interval, consider how you are measuring data. Increase or decrease the number of classes or modify the class interval until there is essentially the same number of measurement possibilities in each class. 7. Determine the class boundaries. You can do this by starting at the center of the range. If you have an odd number of classes, center the middle class approximately at the mid- point of the range, then alternately add or subtract the class interval to define the other class boundaries. If you have an even number of classes, begin the process of adding or subtracting the class interval at approximately the center of the range.
  • 3. 8. Tally the number of data points that fall in each of the classes. Add the frequency totals for each class. This number should equal the total number of data points. Divide the number of data points in each class by the total number of data points. This will give you the percentage of points falling in each class. Add the percentages of all the classes. The result should be approximately 100. 9. Graph the results by beginning with the lowest measurement-value class. Make the bar height correspond to the percentage of data points that fall in that class. Draw the bar for the second class to the right and touching the first bar. Again, make the height correspond to the percentage of data points in that class. Continue in this way until you have drawn in all the classes. 10. Draw a vertical dotted line through your histogram to represent the mean value of all your data points. 11. If there are specification limits for the characteristic you are studying, indicate them as vertical lines as well. 12. Title and label your histogram. Now what? The shape that your histogram takes tells a lot about your process. Often, it will tell you to dig deeper for otherwise unseen causes of variation. The symmetrical or bell-shaped type of histogram: The mean value is in the middle of the range of data. The frequency is high in the middle of the range and falls off fairly evenly to the right and left. This shape occurs most often.
  • 4. The “comb” or multi-modal type of histogram: Adjacent classes alternate higher and lower in frequency. This usually indicates a data collection problem. The problem may lie in how a characteristic was measured or how values were rounded. It could also indicate an error in the calculation of class boundaries. If the distribution of frequencies is shifted noticeably to either side of the center of the range, the distribution is said to be skewed. When the histogram is positively skewed The mean value is to the left of the center of the range, and the frequency decreases abruptly to the left but gently to the right. This shape normally occurs when the lower limit, the one on the Left, is controlled either by specification or because values lower than a certain value do not occur for some other reason. If the skewness of the distribution is even more extreme, a clearly asymmetrical, precipice-type histogram is the result. This shape frequently occurs when a 100% screening is being done for one specification limit.
  • 5. If the classes in the center of the distribution have more or less the same frequency, the resulting histogram looks like a plateau. This shape occurs when there is a mixture of two distributions with different mean values blended together. Look for ways to stratify the data to separate the two distributions. You can then produce two separate histograms to more accurately depict what is going on in the process. If two distributions with widely different means are combined in one data set, the plateau splits to become twin peaks. The two separate distributions become much more evident than with the plateau. Examining the data to identify the two different distributions will help you understand how variation is entering the process.
  • 6. If there is a small, essentially disconnected peak along with a normal, symmetrical peak, this is called an isolated-peak histogram. It occurs when there is a small amount of data from a different distribution included in the data set. This could also represent a short-term process abnormality, a measurement error or a data collection problem. If specification limits are involved in your process, the histogram is an especially valuable indicator for corrective action. The histogram shows that the process is centered between the limits with a good margin on either side. Maintaining the process is all that is needed.
  • 7. When the process is centered but with no margin, it is a good idea to work at reducing the variation in the process since even a slight shift in the process center will produce defective material. A process that would have produced material within specification limits if it were centered is shifted to the left. Action must be taken to bring the mean closer to the center of the specification limits.
  • 8. A histogram that shows a process that has too much variation to meet specifications no matter how it is centered. Action must be taken to reduce variation in this process. A process that is both shifted, in this case to the right, and has too much variation. Action is necessary to both center the process and reduce variation. Conclusion: A histogram is a picture of the statistical variation in your process. Not only can histograms help you know which processes need improvement, they can also help you track that improvement. Steven Bonacorsi is a Certified Lean Six Sigma Senior Master Black Belt instructor and coach. Steven Bonacorsi has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies. He has led some of the largest deployments in the world and has saved hundreds of millions with his project teams results. The AIT Group, Inc. Steven Bonacorsi, Vice President, MBA, MS-CIS, PMP Lean Six Sigma Master Black Belt 3135 South Price Road, Suite 115 Chandler, AZ 85248-3549 Phone: +(1) 888.826.2484 sbonacorsi@comcast.net http://www.linkedin.com/in/stevenbonacorsi http://www.theaitgroup.com