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1 Strategic Management Statistical Process Control Consistent high quality has become a requirement in todays competitive market One vital tool for preventing problems is Statistical Process Control SPC SPC is the use of statistics to analyze a process or output so actions can be taken to achieve and maintain statistical control and to improve the consistency of the process Jirka 1995 Statistical drawing conclusions using a scientificmathematical approach of analyzing data Process the whole combination of people equipment materials methods and environment working together to produce output any work area that has identifiable measurable output Control making something behave in a predictable consistent manner Jirka 1995 2 Benefits of SPC Applications of Statistical Process Control in the manufacturing sector have been refined and tested with considerable success Obvious reductions in production and warranty costs and significant improvements in employee morale are the proven rewards for implementing SPC Using SPC methods a company can Identify critical problem areas Reduce variation and monitor for unusual variation Determine the capability of the process Understand and optimize the process Determine the reliability of the product Statistical Process Control 1998 New quality requirements such as ISO 9000 have forced many manufacturers to purchase and implement quality systems Many companies now demand that suppliers practice statistical process control in meeting contractual specifications Most of the major manufacturers are prodding people into using statistical-process-control techniques said Phillip Allen President of Tricor Systems Inc a small company that supplies hardware software and instrumentation products for large industries such as McDonnell Douglas Corp 3 According to Allen the companys assembly errors have been reduced by 43 since implementing SPC Chase 1997 Cost of SPC Benefits obtained can quickly repay any investment to implement SPC The cost largely depends on the method used to collect and process the information SPC systems generally fall into three main types manual semi-automated and fully-automated In a manual SPC system a person records a small set of
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