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Statistical thinking is one of the tools for process analysis. Statistical thinking relates processes and statistics, and is based on the following principles:
- All work occurs in a system of interconnected processes.
- Variation exists in all processes
- Understanding and reducing variation are keys to success.
W. Edwards Deming promoted the concepts of statistical thinking, using two powerful experiments, the Red Bead and the Funnel experiment.
Statistical thinking is a recognised method used as part of Six Sigma methodologies.