Making Data Driven Decisions using Hypothesis Testing

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The module in a nutshell

Ever tried to analyse some data and not been too sure what to do with it? Ever made a change to a process and wondered how you could detect if it had made a difference? Ever drawn conclusions from data only to find that those conclusions were wrong? More often than not, many organisations rely on simple graphical analysis to present data in order to draw conclusions and made decisions. Graphical analysis is a great way to get the data talking, but when it comes to interpretation it can be subjective. Ever sat in a meeting looking at a graph arguing over what the graph is telling you? Sometimes what we observe can be misleading. We may observe certain patterns or differences in data that lead us to drawing the wrong conclusions.

This module on data driven decision making introduces a methodology called Hypothesis Testing that allows objective assessment of data. It uses simple statistical techniques that can quantify the likelihood of a certain conclusion being true. The techniques provide a consistent and repeatable approach to data analysis and decision making that removes the subjectivity that typically enters most decision making processes.

Hypothesis testing can be used effectively to assess whether:

• Certain process variables influence the quality of the process output 
• Process improvement actions have made a real difference to the process performance 
• Differences in operating conditions influence the process

The aim and outcomes of the module

At the end of this Data Driven Decision Making (DDDM) module participants will be able to:

• Describe the concept of variation and sampling error 
• Recognise the difference between discrete and continuous data 
• Describe the different types of hypothesis tests and where they should be applied 
• Follow the 9 step process when carrying out hypothesis testing 
• Draw appropriate conclusions from a hypothesis test result

Who Data Driven Decision Making is for

This module is suitable for all organisations who are striving to take a more data driven approach to their decision making. It would benefit process improvement practitioners who use data to guide their improvement actions.

What’s in Data Driven Decision Making

This DDDM workshop follows a balanced mixture of theory and practical application. Delegates will learn how to apply hypothesis testing in a variety of different applications. The module will run through the most commonly encountered hypothesis tests:

• Continuous data hypothesis tests – t-tests, ANOVA and Test for Equal Variances 
• Discrete data hypothesis tests – Proportion tests, Chi-Squared tests

The theory behind each of the tests is supported with examples and numerous case study exercises.

Important other information

Duration: Data Driven Decision Making lasts for one day and can be used by itself or in combination with other modules in the Process Transformation Programme.

Location: Ideally a room close to the workplace of participants, though it can be run off-site effectively.

Software Requirements: Delegates will be required to bring with them a laptop computer with Minitab’s statistical software loaded onto it. At a minimum participants could share one laptop between two.

In common with other modules in the Process Transformation Programme the module is designed to run successfully with between 8 to 18 participants.

Price: As a stand-alone module, £2,500 inclusive of all materials. This price does not include expenses which are charged at cost.

Contact for more information:

Karen Dunn
Burge Hughes Walsh
Suite 13b
Castle Mound Way
Central Park
Rugby CV23 0UZ

Telephone: 01788 550015
email: kdunn@burgehugheswalsh.co.uk