Mustonen, Earl M.; Asher, Ronald W. (1992, ASQC) General Dynamics Land Systems, Sterling Heights, MI 48310
Applying Statistical Process Control (SPC) to administrative and business systems is an effective technique for improving performance.
SPC in business systems is based upon measurable outputs so statistical methods can be employed to determine the capability of administrative processes and to identify ways to improve performance. The Quality programs department at General Dynamics Land Systems developed a MERJ index to quantify how well continuous improvement goals were being met. Using the MERJ index to focus management attention on processes rather than results of single measurements, they used statistical techniques to analyze process capability, establish continuous improvement goals, and compare performance to the standard.
The formulas and information required to calculate the MERJ index includes: (1) current year goal; (2) 3�pread based on past history: UCL minus process average; (3) Upper Target Limit (UTL): Goal plus historical 3�pread; (4) Lower Target Limit (LTL): Goal minus historical 3�pread; and (5) Current process average.
Interpretation of the MERJ index include: (1) Less than 1 -- performance of "Process Average" less than goal; (2) Equals 1 -- performance of "Process Average" equals goal; and (3) Greater than 1 -- performance of "Process Average" exceeds goal.
Case study,Continuous improvement (CI),Manufacturing,Statistical process control (SPC),Statistics,Control limits