Translating SPC into Management Terms

Article

Feinberg, Alex A.; Machado, Lawrence E.   (1993, ASQC)   Analytic Sciences Corporation; Reading, MA

Annual Quality Congress, Boston MA    Vol. 47    No. 0
QICID: 9932    May 1993    pp. 9-15
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Article Abstract

Statistical Process Control (SPC) techniques often omit cost data gathered on the factory floor. SPC becomes more useful for decision making when it is linked with financial information. Three statistical methods provide the link. The first method emphasizes the importance of accepted variation of a product within tolerance limits. Ignoring the variation may lead to inaccurate predictions for the costs of changing a process. The second method incorporates quality costs into the usual SPC charts of product characteristics. The third method adds predictions of external failure costs to the usual SPC failure analysis. Much of the data used by these methods is already collected in the standard SPC procedure. However, the methods may not be applicable in every process or manufacturing situation.

Keywords

Cost of quality (COQ),Decision making,Failure,Statistical process control (SPC),Cost management


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