Hey everyone. Frank chart is a tool that helps you identify if the data is unstable. Any given data becomes unstable due to the presence of special causes. In a nutshell, a run chart helps you identify if the data exhibits those special causes. But what do we mean by special causes? Especially cause is any unforeseen or unplanned event that comes from outside influences and have a bigger impact on your business process.
Examples include an event of sudden shutdown of systems or hurricanes or local riots, etc. These events are unplanned or unforeseen and have a larger impact on the business process. You will learn more about this topic when you observe the company Doesn't have common causes and special causes. Let's begin to understand this comparison. In any business process, Common causes are present all the time, whereas special causes are not always present. Let's say a business process has 300 employees.
On an average, almost 10% of employees are always absent, either due to planned or unplanned holidays. This is an example of a common cause variation. However, if on any given day, out of the 300 employees, only 50 employees show up let's say, due to a flood situation in nearby areas. This is an example of a special cause variation. Common causes have small effect individually. Special causes come from outside influences.
Common causes result in random variation. Special causes typically have bigger influence than Common causes, the effects of the common cause can be tolerated. The effects of special causes may go beyond tolerance thresholds. A process is in control. When only common causes effect the process output. A process goes out of control when special causes affect the process output.
A special cause variation in any process renders the process unstable. When you analyze any process data, you first have to check if the data is stable. If the data is unstable, the analysis may not point you to the probable root cause due to the impact of outside influences. With this background, you're all set to understand what is the range chart thank you for attending. See you in the next one.