Topic > The Use of Analysis of Variance in Manufacturing - 893

Analysis of Variance (ANOVA): Analysis of Variance (ANOVA) is a combination of statistical techniques in which a variance in a given variable is divided into characteristic parts of various sources of variation. ANOVA provides a statistical evaluation of whether or not the modes of different congregants are equal and generalizes the t-test of more than two groups. This technique is usually useful for comparing two, three or more means of certain tests, which can help companies identify trends. Furthermore, the statistical technique is a practical tool that can be used to compare two groups with either a single independent variable or two independent variables. It can also be used to evaluate differences in worker responses to employee engagement in a given organization or to determine changes in employee productivity on specific work shifts based on certain variables. As a result, variance analysis is considered a tool that can be used in manufacturing to improve or repair a process. Analysis of Variance in Manufacturing: Because it is a statistical tool that can benefit many companies, analysis of variance can be used in many industries to identify problems or variations between samples. The use of this technique in many industries is attributed to the fact that it is a good statistical tool for testing and a common Six Sigma tool (“Reasons for Using ANOVA,” n.d.). In addition to the manufacturing industry, variance analysis can be used in the healthcare, service, and food industries for various purposes. In the manufacturing industry, variance analysis can be used to identify the best materials to use to create a product for a customer. For example, this process can be used by a manufacturing plant to......half of paper......explain how much variance is caused by resource usage or how much is associated with the cost of resource usage (Edwards-Nutton, 2008). For example, through standard costing, variance analysis helps evaluate material costs over time to identify trends and problem areas. In conclusion, variance analysis is an important statistical tool that can be used in many industries such as healthcare, service, and manufacturing industries. In the manufacturing industry, this technique can be used to help improve or repair processes. The need to use this tool in process improvement or repair is fueled by manufacturers' increased focus on becoming more demand-driven. The two main ways that ANOVA can be used for process improvement or repair include calculating standard costs and comparing costs, departments, and other production facilities.