What is Correlation Analysis and How is it Performed ?
April 3, 2025
Correlation analysis is a vital tool in the hands of any Six Sigma team. As the Six Sigma team enters the analyze phase they have access to data from various variables. They now need to synthesize this data and ensure that they are able to find a conclusive relationship. What is Correlation Analysis ? One…
The 5 why method or the Root Cause analysis method that has been described in the Tools section plays an important role in determining that the X’s are recorded at actionable level. In this implementation of the 5 why tool, there is a slight variation from the standard methodology and hence it has been explained…
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…
The analyze phase is one of the most dreaded phases in the Six Sigma methodology. There are common assumptions made that this phase involves a lot of high level statistical analysis. No wonder that most trainings are scheduled before analyze phase. The Six Sigma team members want to refresh their concepts before they actually get down and get their hands dirty.
However, the fact is that Statistics takes the limelight involved. Statistical analysis is just the last stage of a series of analysis. This is so because the Six Sigma methodology focuses on verifiable facts and statistics can empirically confirm a statement and make an opinion of a fact. Here is a look at the different analysis that are carried out behind the scenes.
Example: A Six Sigma project team is trying to conduct the analyze phase on a process. Even though the vital few inputs have been identified in the earlier stage, there still will be hundreds of relationships that might exist between the data. How does the Six Sigma project team know, which relationships are significant and must be hypothesised? No company has the resources to waste on conducting every possible hypothesis.
In such cases, the preliminary analysis serve the purpose. It requires some expertise and common sense on the part of a Six Sigma team to actually identify the business problems. These problems are then converted to statistical problems and a solution is reached as per the fact based nature of Six Sigma methodology.
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