Histogram 1 has more variation than Histogram 2. To begin to understand what a standard deviation is, consider the two histograms. While the average is understood by most, the standard deviation is understood by few. The average length of wire for these five pieces is 4.8 feet. The average is determined by adding up these five numbers and dividing by 5. These lengths, in feet, are 5, 6, 2, 3, and 8. For example, suppose we have wire cable that is cut to different lengths for a customer. The average is calculated by adding up the results you have and dividing by the number of results. It represents a typical temperature for the time of year. For example, the average temperature for the day based on the past is often given on weather reports. The average (also called the mean) is probably well understood by most. We will start with describing what an average is. One must understand what is meant by the standard deviation. What is it used for? Why is it important in process improvement? When using control charts, the standard deviation, as well as the average, is a very important parameter.
Have you ever had to explain to anyone what a standard deviation is? Or perhaps, you aren't sure yourself what it is.
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