Mercer Quality Consulting, LLC

The following definition of Statistical Thinking was created by the Statistics Division of the American Society for Quality (ASQ).

Statistical Thinking is a philosophy of learning and action based on the following fundamental Principles:
  • All work occurs in a system of interconnected processes,
  • Variation exists in all processes, and
  • Understanding and reducing variation are keys to success.

 BPChart uses an Excel based template to implement Statistical Thinking 

Buy the 230 page book "Introduction to BPChart"  for $100
get the BPChart Excel Template and all files used to work the examples in the book.

How do you monitor your Key Performance Indicators (KPIs).

  • Balanced Score Cards
  • Stop Light Reports
  • Dashboards
  • Hoshin Kanri
  • A3 Reports

Use BPCharts instead to implement Statistical Thinking for your KPIs. Business Process Charts (BPCharts) visualizes the voice of each KPI and helps separate the signals from the noise. BPCharts signals when you should investigate the KPI while helping avoid tampering because the KPI is just exhibiting typical noise .

Let me show you how to turn your KPIs into charts which help identify the real changes in your KPI 's performance.

Below is a screen shot of BPChart depicting a seasonal pattern in the KPI for Gas Usage for a typical business. The red dotted lines show the typical performance each month. The green line is the average performance. The black line shows actual performance. The letter codes along the upper x-axis indicates when a special causes have occurred. Investigation may be warranted when a special cause is signaled, but is usually not warranted when no letter code appears. No letter codes indicates the KPI just exhibits common cause ( or noise.)

Statistical Thinking Using BPChart

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Not only can we see individual charts of KPIs but we can assemble multiple charts of KPIs on one page .