Strategic Management

             Consistent high quality has become a requirement in today's 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 scientific/mathematical 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)
             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.
             · 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.
             According to Allen, the company's assembly errors have been reduced by 43% since implementing SPC. (Chase, 1997)
             Benefits obta...

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