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Chapter 19B. Statistical Process ControlThe concept of quality is centuries old. However, the concept of statisticalquality control (SQC) is less than a century old. SQC is merely a set of interrelatedtools such as statistical process control (SPC), design of experiments(DOE), acceptance sampling plans, and other tools that are used to monitor andimprove quality. SPC is one of the tools comprising SQC. SPC consists of severaltools that are very useful for process monitoring. The quality control chart, whichis the center of our discussion in this chapter, is one of the tools comprising SPC.Walter A. Shewhart presented the first quality control chart in 1924.Part IV.BBASIC CONCEPTS OF QUALITY AND ITS BENEFITSDifferent authors have defined the concept of quality in different ways. We defineit as defined by Deming: a product is of good quality if it meets the needs of acustomer and the customer is glad that he or she bought that product. The customermay be internal or external, may be an individual or a corporation. Ifa product meets the needs of the customer, the customer is bound to buy thatproduct again and again. On the contrary, if a product does not meet the needs ofa customer, then he or she will not buy that product even if he or she is an internalcustomer. Consequently, that product will be deemed of bad quality and eventuallythe product is bound to go off the market.Other components of a product’s quality are its reliability, how much maintenanceit demands, and, when the need arises, how easily and how quickly one canget it serviced. In evaluating the quality of a product, its attractiveness and rate ofdepreciation also play an important role.As described by Deming in his telecast conferences, the benefits of betterquality are numerous. First and foremost is that it enhances the overall image andreputation of the company by meeting the needs of its customers and thus makingthem happy. A happy customer is bound to buy the product again and again.Also, a happy customer is bound to tell the story of a good experience with theproduct to friends, relatives, and neighbors. Therefore, the company gets firsthandpublicity without spending a dime. This obviously results in more sales andhigher profits. Higher profits lead to higher stock prices, which mean higher networth of the company. Better quality provides workers satisfaction and pride intheir workmanship. A satisfied worker goes home happy, which makes his/herfamily happy. A happy family boosts the morale of the worker, which means morededication and more loyalty to the company. Another benefit of better quality is246
Chapter 19: B. Statistical Process Control 247decreased cost. This is due to the need for less rework, thus less scrap, fewer rawmaterials used, fewer man-hours, and fewer machine hours wasted. All of thisultimately means increased productivity, better competitive position, and hencehigher sales and higher market share. On the other hand, losses due to poor qualityare enormous. Poor quality not only affects sales and competitive position, butalso carries with it high hidden costs, which usually are not calculated and thereforeare not known with precision. These costs include unusable product, productsold at a discounted price, and so on. In most companies the accounting departmentsprovide only minimum information to quantify the actual losses incurreddue to poor quality. Lack of awareness concerning the cost of poor quality can leadcompany managers to fail to take appropriate actions to improve quality.WHAT IS A PROCESS?A process may be defined as a series of actions or operations performed in producingmanufactured or nonmanufactured products. A process may also be defined asa combination of workforce, equipment, raw material, methods, and environmentthat work together to produce output. The flowchart in Figure 19.1 is an exampleshowing where each component of a process fits.Note that statistical process control is very useful in any process, whether inthe manufacturing, service, or retail industries. There are several tools that arevery valuable in achieving process stability. The set of all these tools, includingcontrol charts, constitute an integral part of SPC. These tools are:1. Histogram2. Stem-and-leaf diagram3. Scatter diagram4. Pareto chart5. Check sheet6. Cause-and-effect diagram (also known as fishbone or Ishikawa diagram)7. Defect concentration diagram8. Run chart (also known as line graph or time series graph)9. Control chartsThe first four of these tools we have already discussed in Chapter 18. We are nowgoing to discuss the rest.Part IV.BCHECK SHEETIn order to improve the quality of a product, management must try to reduce thevariation of all the quality characteristics; that is, the process must be brought intoa stable condition. In any SPC procedure used to stabilize a process it becomesessential to know precisely what type of defects are affecting the quality of thefinal product. The check sheet is an important tool to achieve this goal. We discussthis tool with the help of a real-life example.
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Chapter 19
B. Statistical Process Control
The concept of quality is centuries old. However, the concept of statistical
quality control (SQC) is less than a century old. SQC is merely a set of interrelated
tools such as statistical process control (SPC), design of experiments
(DOE), acceptance sampling plans, and other tools that are used to monitor and
improve quality. SPC is one of the tools comprising SQC. SPC consists of several
tools that are very useful for process monitoring. The quality control chart, which
is the center of our discussion in this chapter, is one of the tools comprising SPC.
Walter A. Shewhart presented the first quality control chart in 1924.
Part IV.B
BASIC CONCEPTS OF QUALITY AND ITS BENEFITS
Different authors have defined the concept of quality in different ways. We define
it as defined by Deming: a product is of good quality if it meets the needs of a
customer and the customer is glad that he or she bought that product. The customer
may be internal or external, may be an individual or a corporation. If
a product meets the needs of the customer, the customer is bound to buy that
product again and again. On the contrary, if a product does not meet the needs of
a customer, then he or she will not buy that product even if he or she is an internal
customer. Consequently, that product will be deemed of bad quality and eventually
the product is bound to go off the market.
Other components of a product’s quality are its reliability, how much maintenance
it demands, and, when the need arises, how easily and how quickly one can
get it serviced. In evaluating the quality of a product, its attractiveness and rate of
depreciation also play an important role.
As described by Deming in his telecast conferences, the benefits of better
quality are numerous. First and foremost is that it enhances the overall image and
reputation of the company by meeting the needs of its customers and thus making
them happy. A happy customer is bound to buy the product again and again.
Also, a happy customer is bound to tell the story of a good experience with the
product to friends, relatives, and neighbors. Therefore, the company gets firsthand
publicity without spending a dime. This obviously results in more sales and
higher profits. Higher profits lead to higher stock prices, which mean higher net
worth of the company. Better quality provides workers satisfaction and pride in
their workmanship. A satisfied worker goes home happy, which makes his/her
family happy. A happy family boosts the morale of the worker, which means more
dedication and more loyalty to the company. Another benefit of better quality is
246