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Analysis On Variance And Anova

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3.3.5 Technique 3: Analysis of Variance (ANOVA)
Analysis of Variance, commonly known as ANOVA, is the statistical tool which is used to determine significant variation between 2 or more means. ANOVA was developed by the statistician Ronald Fisher in the early 1900s. ANOVA is the most common tool used when there is a need to perform an experiment. ANOVA is used to test general variation in any aspect of an enterprise system rather than specific variation among means.
Consider an example of student performance. The dean of the renowned university wants to know the reason behind the variation in the grades among graduate students. He doubts that the root cause behind this variation is the part time jobs done by the students. Anonymously, he …show more content…

Control charts are used to study the process variation with respect to time. Typically, control chart has a center line, upper control limit and lower control limit, which are abbreviated as CL, UCL and LCL respectively. If the plotted data point is above or below the control limits (UCL or LCL) then the process is considered as an out of control process. Also, out of control point is also an indication of special cause variation. Special cause variation can easily be detected by using control charts and hence control charts are used to detect special cause variation in any aspect of the enterprise system.
Consider a case study on a manufacturing company which manufactures aluminum pipes for water distribution system. 25 data sets were collected within 24 hours of manufacturing operation. Individual control chart was plotted as illustrated in figure 3.6. Figure 3.5: Individual Control Chart of Pipe Cutting Machine [3.7]
It was noticed that most of the data points are within control limits except data point 19. During investigation it was noticed that after 18th data point operator was changed. Hence there was a special cause variation which was easily detected by the above chart.
3.4 Minimization of Variation in an Enterprise
Making robust system with flexible processes would minimize the effect of variation in an enterprise. Let us consider the most influenced aspects, which are, process and

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