The Hindu : Business : Statistics for betterment of business and industry

Online edition of India's National Newspaper
Saturday, Jan 06, 2007
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Statistics for betterment of business and industry

Staff Reporter

Expert calls for concerted effort to employ statistical methods

KOCHI: The principles of Statistics can be effectively applied for the betterment of business and industry. It could be of immense help in improving quality and productivity, says Bovas Abraham, Professor of Statistics, University of Waterloo, Canada.

The professor, a Keralite by birth, has been involved in a number of research works at well-known international companies, including General Motors. "Statistics comes into play whenever there is variation in production."

The statistical applications can be wide and varied in an industrial and business environment, he says. For example, in the automobile manufacturing process, the parts have to fit into the vehicle, he explains. The lights have to be fixed in a certain angle for producing the desired effect. The machine has to be set for it. The process involves studies that are analysed statistically.

Similarly, in the food industry, the percentage of contents has to be assessed using statistical procedures. The percentage of salt contained in potato chips will not be uniform, but the nearest figure could be arrived at and it is essential for certifications. "We work with engineers and other experts. In fact, we train them," he says.

Interaction

Prof. Abraham is the president of the International Society for Business and Industrial Statistics. The body has a 17-member council representing various countries. The main objective of the Society is to facilitate interaction between academia and the industry. It is a vehicle for collaboration between statisticians and the industry representatives, he says.

There is no concerted effort in India to employ statistical methods for improving quality, he observes. "We held a meeting on the subject at Kochi a decade ago." Some efforts are being undertaken in Bangalore and a few other places in this connection, he adds.

The clinical trials in the western countries involve a lot of statistical work. Some of the drugs are recalled after the statistical analysis indicates negative impact on health. He cited a case in which a hormonal drug was recalled after the studies pointed out increase in incidence of cancer.

The professor is of the opinion that the statistical studies are comparatively less in India as research and development have not received their due share in the country. In the case of several companies, pursuance of quality takes a backseat once they obtain ISO certification, he observes.

Education model

Education can provide new models in the working pattern. A cooperative education model is pursued at the University of Waterloo.

The student is allowed to work in companies in three phases of four months each during a five-year course. The student earns during the period and becomes a thorough professional after completing the course.

An analyst of the industrial developments across the world, Prof. Abraham observes that the gap between the rich and the poor is widening.

There was an explosion in IT business in India, but the economic benefits do not seem to have percolated to the lower strata of society.

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