Statistical Model Lifecycle Management

Approach

Rule and Details

Business Case

  1. Two out of three consecutive points fall beyond the 2σ limit (in zone A or beyond), on the same side of the centerline
  2. Four out of five consecutive points fall beyond the 1σ limit (in zone B or beyond), on the same side of the centerline
  3. Eight consecutive points fall on the same side of the centerline (in zone C or beyond)

Key Impact and Takeaways

  1. Quantify and develop benchmarks for error limits.
  2. A continuous monitoring system to check if predictive model accuracies are within the desired limit.
  3. Prevent undesirable escalations thus rationalizing operational costs.
  4. Enabled through a visualization platform. Hence does not require strong analytical
    expertise.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Affine

Affine

Affine is a provider of analytics solutions, working with global organizations solving their strategic and day to day business problems www.affineanalytics.com