What is Correlation Analysis and How is it Performed ?
February 12, 2025
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Once the Scatter plot has been used to find out the correlation between the inputs being measured as well as the desired outputs, it is now time to come up with an equation which shows the precise relationship. This is called Regression. Regression is a technique which summarizes the relationships observed in the Scatter plot in the form of an equation.
In most Six Sigma projects, today the process of coming up with the regression equation is computerised. Hence the personnel need not understand the details that are involved within it. However they need to be well versed with the various types of regression equations. They are as follows:
A typical linear regression equation would look like:
Y = 1.5 + 2x
The Six Sigma team can now answer questions about the effect that the input variable has on the output. They can then decide as top whether the effect is significant when compared to the other variables. They can also decide the correct level of input (x) that needs to be maintained if an output (y) needs to be achieved.
For example:
Service Time = 3 minutes + 2.3 times × Handle time
Let’s say we want the service time to be 7 minutes as per the results we have got from the Voice of Customer. Therefore the handle time should be :
7 - 3 minutes = 2.3 × Handle time
4 minutes = 2.3 × Handle time
4/2.3 = Handle time
Therefore handle time must be 1.74 minutes if the process needs to meet the expectations of the customers.
This is how the regression equation can help us understand whether a factor is significant. It also helps us work the level of inputs required to get the desired output.
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