Creating a SIPOC Chart
February 12, 2025
The Case for Patents The Pharma sector is often caught in the fight over whether the enforcement of IPR or Intellectual Property Rights should be followed or whether the sector exists for alleviating the health concerns of the poor and the needy thereby ensuring affordable drugs to the masses. Before we launch into the discussion […]
The Debate over IPR In recent years, intellectual property rights (IPR) have become the topic of intense discussion and concerted efforts by businesses to defend them. The reason for this renewed interest and vigorous protection and defense of IPR is that the theft and piracy of items like software, books, games, and movies has reached […]
The 1970’s The story of China’s growth began in the 1970’s. Back then China was an extremely poor country with one of the lowest per capita income in the world. The population of the country was largely agrarian. The output of food grains was so small that starving to death was a possibility in China. […]
Introduction This article is a follow up of the earlier one related to the project management processes for an automation tool. This tool is to be used for automating the processes of a maintenance project in a software company. Rework A rework can arise due to: Change in scope Quality of the deliverables not up […]
From Maruti to Mercedes: The Evolution of the Indian Automobile Industry The Indian Automobile Industry has come a long way since the Independence times wherein its growth has broadly mirrored the changing lifestyle aspirations and the economic boom amongst the Indian consumers. Indeed, while the Ambassador car was the symbol of the Indian Automotive Industry […]
A scatter plot is a graphical tool. It has been designed to ensure that it provides a convenient view of the process to the manager at a single glance. The scatter plot studies the correlation between the important variables. When it studies the correlation between two variables, it is called a bivariate scatter plot. When there are multiple variables involved, it is called a multivariate scatter plot.
Correlation is the degree to which two variables simultaneously vary. A good example would be that whenever the cycle time is high, customer dissatisfaction is also high. Correlation is recorder on a scale of +1 to -1. +1 shows perfect correlation, while -1 shows perfect negative correlation. However, perfect correlations do not exist and if you come across one, it should be doubted.
Suppose the two variables were being recorded and measures and a high degree of correlation existed, it would provide useful information to the management to run the business better.
Correlation is often confused with causation. This may or may not be the case in reality. Just because we have the statistics to show that the two variables tend to move in tandem does not mean that we have proof that one causes the other. Implying causation could lead to inadvertent losses.
Correlation must be used only when at least one of the variables is under control. This variable will be known as the independent variable. Hence experimenters can vary one variable and record the other variable to determine the extent of the correlation.
Management has to forecast the levels of many variables before they agree on a budget. Correlation helps the management come up with the possible levels of these variables so that accurate budgets can be developed.
Scatter plots provide an important tool for visualization. This is because many times points that are farther away from where most of the points are scattered have the capability of influencing the correlation co-efficient which is the summary statistic. To avoid errors which may prove to be costly scatter plots are used.
A scatter plot is a set of X and Y axes. One variable is given the x axis and the other one is given the y axis. Each point on the graph has a value corresponding to the x and y axis i.e. both the variables. In case of 3 dimensional or multivariate analyses, more axes are introduced. However such visualizations are complex and require the use of complex software.
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