Improving Management Through Statistics

Article

Graham, Jackie D.; Cleary, Michael J.   (1992, ASQC)   PQ Systems, Inc., Melbourne, Australia

Annual Quality Congress, Nashville TN    Vol. 46    No. 0
QICID: 9900    May 1992    pp. 814-820
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Article Abstract

The authors propose that the "Theory of Variation" subset of Deming's "System of Profound Knowledge" can guide upper management in corporate transformations.

Australian managers, faced with the need to improve their production processes, can be overwhelmed with information and face difficult decisions about what to change. If they apply statistical control charts, they can differentiate between processes that are out of control and those that are simply experiencing wide, yet normal, swings. Control charts can be used for the obvious need to analyze variation in dimensions of manufactured parts but they can also analyze less obvious aspects of a manufacturing process. Applied to absentee rates, control charts can give insight into employee morale. Analysis of on-the-job accidents can reveal need for safety measures or training. Charts of machine failure and maintenance can allow scheduled maintenance before machines break and interrupt production. Knowing the acceptable range of production volumes can prevent unnecessarily searching for causes for drops that, while unexplained, are still within predicted limits. Customer satisfaction can be monitored by analysis of warranty claims, technical support calls, customer complaints, and service calls.

In short, control charts give executives insight into what really needs changing in their companies.

Keywords

Control charts,Deming, W. Edwards,Profound knowledge,Variation


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