Are Static Populations or Dynamic Processes More Common in Applications?
It appears generally accepted today that most real business processes are not static, but rather dynamic. Unfortunately, most formal statistical methods assume a static population, i.e., that there is a “true” average and variance. Applying formal statistical methods that assume a static population to an unstable business process can produce misleading and inaccurate results. This issue has several practical implications. First of all, students obviously need a tool to help them differentiate between stable and unstable processes. We have incorporated run and control charts for this purpose. Secondly, they need to know how to approach improvement of an unstable process, as well as how to approach improvement of a stable one. Formal statistical methods are readily applicable to stable processes, but most arent applicable to unstable processes. This is one reason that two different approaches are needed. We have therefore included one overall model, or roadmap, for improving stable proce
