Bev, I honestly have trouble following you. I'm here to learn, but I feel that often I just read statements instead of arguments.
What do you consider an analytic tool? Why is statistics not considered an analytic tool?
Your barb regarding the choice of 2.5 sigma is a false argument and makes no sense in the context of your argument.
My point is simple: I know that you will argue that the 3-sigma level does
not define a false alarm rate, but that instead it is an empirical rule. As far as I remember it was initially argued to be an
economical balance point. Now, we can take two perspectives:
1. The statement is true and the value 3 close to the optimal economical balance point. As the optimal balance point is defined by weighting the costs of false alarms agains the cost of bad quality products, the initial statement implies that the false alarm rate is (close to) optimal. If we accept this to be true, and if we assume that the transformation brings us closer to normality, the dataset should be transformed to reduce the cost of investigating "common causes".
2. The 3-sigma level is a random selection. If this would be the case, we could easily replace it by 2.5 or 3.5 and Chebyshev's inequality tells us that this will equally work. In fact, one could easily argue that the selected factor should reflect the criticality of the characteristic we try to control weighted by the quality target of the organisation.
I didn't want to write all that, but I believe that you were aware of the argument. I don't see why you say this out of context.
I don’t see that the distribution you show needs to be transformed t all.
I reckon that you will agree that any data analysis should be performed with the goal in mind that we take action -- e.g. to bring the process back into control. We have optimised the process for years now, and we have huge datasets showing that from the displayed process we should not expect a different distribution. Thus, the outliers indicated by the SPC chart are (with a high probability) common causes, and not special causes. Therefore, we should not investigate their root causes. It's a waist of money and working hours. Thus, the SPC chart of the raw data does not reflect this inside and would generate unnecessary actions.