REACTION PAPER : STATISTICAL THINKING AND ITS ROLE FOR INDUSTRIAL ENGINEERS AND MANAGERS IN THE 21st CENTURY

The organization such as manufacturing and service industries currently not using statistical thinking on the way they make decision and solve the problem. They usually do problem solving and make fast decision based on “fire fighting”, and actually so many problems occurs on the manufacturing and or service industries but how to solve the problem is just solve on the temporary way (spot by spot) without consideration of statistical thinking which consider on continues improvement and reduce variation. It is happened because industrial engineers and manager who responsible to manage the company has lack of statistical education and knowledge. They do daily work and task as usual and make decision or problem solving based on their experience they met before.

Most of the managers and industrial engineers do not use a statistical way of thinking in making decisions. The managers have to think the problem as a system as it is explained in the article that ‘All work is a system of interconnected processes'. The managers have to be able to see the variety of any situations and outcomes in any system. Therefore they will be able to analyze or even predict the upcoming situations and outcome of a problem. In current situation, most of problem is point out that happened because of human error. The managers need quick response and action to meet the situation, than the “fire-fighting” is somehow done to solve the problem quickly. The problem seems disappear but the root of the problem is never extinct. This situation is happened daily, monthly and yearly without any significant correction and continues improvement.

The article is criticized the real situation occurred on industrial activities, which managers and industrial engineers has lack of statistical thinking and concept. They just know statistic as tools and technique which a lot of numerical and math, somehow it is complicated to be understood. This barier shall be removed by understanding application of statistic on the real situation and real problem. Even managers and industrial engineers from university graduated, they seem lack of knowledge on the statistical thinking and application.

The managers only use statistics as a tool when they encounter a problem which is related to data. In my opinion, the managers did not use the statistical thinking because of the difficulty in understanding the statistics principles and application on the real case. Furthermore, they have variety in educational backgrounds. Once they have found an issue or a problem, they will solve it according to their past experience and their knowledge. But when they did meet a problem that generates lot of numerical data, they used the statistics method.

For example, if we use six sigma we can solve the problem systematically. In the real situation, the managers only use six sigma or other tools as a means to repair not to develop system which understand on continues improvement. It is happened because they did not understand the basic principle or the essence of the six sigma method. In a research and development of the manufacturing, most of managers and industrial engineers are focus on clients more than their own organization. Furthermore, the managers are also use the practical data to solve the problem. This way of thinking will led to an ineffective decision. In my opinion, it is happened because they seem to be quick response on client complaint or problem occurred and not encourage to see inside their own system and make continues improvement and reduce variation. They do not dare to blame the system they used, because most of managers and industrial engineers feel that they do not have any opportunity to change the system which is built by the owner. They point of view on the problem solving is on human error not system error. I think by the statistical thinking, the managers and industrial engineers have great opportunity to evaluate the system and can suggest or recommend the owner to make change or continues improvement on the system. The statistical thinking will first lead the managers to see the symptoms and any variation on a business process problem first. Statistical Thinking and its principles are not difficult and does not actually need to be profound. But it must be known by the managers. Therefore, when they using tools such as QFD, DOE, Six Sigma, and Pareto charts they will be able to predict where the outcome has risen.

In conclusion, since I am the owner of one service company “PT Aozora Agung Perkasa” in Indonesia, from my experience and through this article I feel ashamed because of many managers and engineers are ignoring the statistical thinking and they do”fire-fighting”. But luckily, this paper summarizes the circumstances that existed at the moment. Not just as a warning, this topic can be a wake up call to many managers that statistics is not just a daunting and meticulous method, but can be a useful way of thinking to the business in any industry. The lack of this article is not showed the easy way on application of statistical thinking in industries, and lack of data especially not mentioned clear what kind of manufacturing or service company as subject of the research.