Restaurant managers might build a histogram to determine how many customers come into a restaurant at different times during the day. Such spikes can also indicate opportunities to capitalize on a trend, as can be seen in the restaurant example below. Spikes in the graph indicate variation that should be addressed. This is a major advantage for organizations because it supports finding and dealing with process variation quickly.Ī bell-shaped curve to the bar graph usually indicates normal distribution. However, by routinely producing histograms, any variation is quickly detected. Over time, histograms can show what the normal distribution is for a process that is running smoothly. Using the data, project leaders can then find the best ways to reduce variation. A bar chart is used to show, for example, where delays are occurring by finding the frequency of delays in each step of the process. In Six Sigma, it is used to find variation in a process. For example, it can be used in sales and marketing to develop the most effective pricing plans and marketing campaigns. It can be used in many different situations to offer an insightful look at frequency distribution. The main advantages of a histogram are its simplicity and versatility. It’s a simple chart that employs a horizontal and vertical axis. The key is to present the information in a logical order. The data is typically displayed in a bar graph that gives viewers a way to quickly absorb the information. Histograms are one of the most frequently used methods for charting historical data. It offers an “at a glance” picture of a distribution pattern, charted in specific categories.
A histogram allows you to see the frequency distribution of a data set.
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