Quality Management and Statistical Process Control Tools - Term Paper Example

Business statistics   Table of Contents 3 Introduction 4 Quality Control 5 Causes of Variations in Process Control 7 Acceptance Sampling 8 Conclusion and Recommendations 10 References 11 Abstract Quality Management and Statistical Process Control tools are some of the most important instruments which the present day organisations must be concerned of. They not only help in enhancing the quality of their production over time, but help the organisation to sustain their products in the market over the long run as well. The present paper aims at three essential aspects of Quality Management, namely, Quality Control, Causes of Variations in SPC and Acceptance Sampling. All the three dimensions are important to carry on with Quality improvements from time to time. The research paper identifies the methods through which they are being conducted and how can the cost being incurred in accomplishing the task of monitoring be conducted at a minimum expenditure. Introduction Production is one of the most essential processes which enable an economy to run smoothly. In fact, the annual income earned by any nation, is the consequence or rather the summation of a large number of production processes being carried on throughout the year in various corners of a country. However, there are some additional factors too, such as enhancement in the economic performance of a nation, which is equally important for sustenance. This is the reason why there must be a continual improvement in the same, i.e., the factors underlying the production process. Statistical process control (SPC) is an important element which enables a continual improvement in the production process with an aim of widening the profit margin of the organisation. It is a process to optimise the production methods in a way so as to make the best utilisation of factors of production, thus minimising the cost of production along with a maximisation of firm’s revenues; however, the quality of goods produced remain uncompromised or is targeted for improvisation. SPC methods which include Total Quality Management (TQM) is actually more synonymous with a means to undergo systematic learning where organisations design methods from time to time to cross check their production abilities. The statistical procedures underlying them are equipped with devices which identify loopholes, if any, throughout the process and try to correct them strategically. However, process control and quality management in an organisation does not comprise of statistical tools only, in addition, there are other factors too which accomplish the entire production process successfully. Generally, managers of an organisation are considered to be responsible for monitoring the proceedings in a firm and identifying the key elements which run the process (Wisner, p. 1). A number of factors have been found to be of great importance in carrying forward the quality management and process control methods in an organisation, namely, quality control, cause of variation, acceptance sampling, all of which have been illustrated in the present paper. Quality Control Quality of the production process in an organisation could be evaluated through analysing eight dimensions of the final good being produced, namely, performance, reliability, durability, serviceability, aesthetics, features, perceived quality and compliance with industry standards (Montgomery, p. 5). It is necessary to take innate care of each and every aspect to maintain the quality standards of the goods produced by an organisation and to go on improving the same. Quality control methods are processes which ensure that the commodities or services being produced by an organisation or a firm meet the needs of the customer in addition to be improvised from time to time to sustain within their respective industries. There are a large number of statistical tools required to carry on with the same. For example, to comprehend consumer tastes and preferences, it is necessary to conduct researches on the basis of sample surveys. The outcomes of these surveys have to be evaluated with the help of different statistical tools which not only test for the reliability and validity of the research result but helps in making forecasts as well. One of the most unavoidable drawbacks of conducting quality control and improvement process is that it involves a huge amount of cost to conduct sample surveys and deducing results out of them. This is the reason why there are specialised teams in every organisation which work individually upon quality enhancement of the goods produced. These teams identify the most urgent of all issues through measuring their significance to the company and thus, carry forward with the necessary steps to accomplish their task (Montgomery, p. 24). Quality management and control was initiated in 1980s on the basis of the principles being adjudged by Deming and Juran. According to Deming, there are 14 principles which must be followed to attain a steady quality improvement; they could be briefly enlisted as follows – The purpose of the research must be defined enough to help the researchers be focussed over their target, so as to help them improve over time. The dependence on sample surveys must be put to an end to curtail the costs of conducting research. There must be provisions for formalised trainings to help in development of skills. Moreover, people must also be endowed with instruments which enable self-education. There must be ample communication between different departments comprising an organisation. There must be monitoring methods which help in the assessment of employee performances (Montgomery, p. 28). On the other hand, Juran established that the Planning, Control and Improvement of quality of production form a trilogy which is interrelated to each other. Moreover, a higher emphasis must be laid upon project-by-project improvement (Montgomery, p. 31). The following diagram shows the methods of Quality Control. It shows the entire production process, right from the absorption of raw materials and inputs within the same and the ongoing process within which leads to the production of the final good being consumed by the target population. After the production process is accomplished, quality control measures take place where the final output being produced is exposed to measures which help in further enhancement of quality of the good produced. After the goods are produced, they are subjected to researches so as to analyse the level of acceptance among the customers of the good being yielded. This is how Quality Control and Improvement takes place. The above diagram distinguishes controllable inputs from the uncontrollable ones, where the former are the measured ones and the latter are the external factors which influence the production process. After the inputs are transformed into a final good, it is exposed to Quality Control measures which aim at enhancement of the same and sustenance of the product in the market. Causes of Variations in Process Control Process control is a mechanism which guides the production process and helps to enhance the same through continued research and sample surveys. In other words, it helps to improve the quality of production eventually so as to help the concerned organisation to sustain in the hard core competitive world. However, even though quality control is a measured approach based upon intricate researches and surveys, there remain some room for variations too. These variations might result to a consequence different from what is expected from them. For example, there might be diversions from reality due to differences or disruptions in the environment necessary for a healthy research. The sample thus chosen might not be exposed to the right conditions, namely, the proper raw materials, temperature or environmental conditions. Nevertheless, the aforesaid factors are known as common causes of variations, which might not be the only ones that concern the organisations. There might also exist special causes of variations which earn their name from the lack of frequency of their occurrence. These uncommon causes of variations are the result of a lack of ample raw materials or the availability of proper quality of raw materials or a lack of the catalytic environment, which helps in the smooth operation of the entire organisational structure. The more uncommon the cause of variation be, the lower is the concern among the managers. However, in many of the cases, these are the factors which lead to a discontinued production process. Acceptance Sampling Acceptance sampling is another aspect of statistical process control, popularised by Dodge and Romig. An organisation produces a small amount of any commodity for sale or rather to examine the level of their acceptance among the population. The researchers being employed by the organisation evaluate the degree to which the target customer is accepting the particular product within their lifestyle and finally suggests the company about their decision to produce or discard the production of the particular commodity. The company produces a small lot of goods to be circulated among a handful of people, whose behaviour has to be observed by the researchers trained by the company. A hypothesis is framed which aims at examining the degree of consumer behaviour. Given the behaviour of the chosen sample, if the hypothesis is rejected, then the production of the commodity is scraped, else it is sanctioned by the researchers as one being accepted by the target consumers. The difference between Acceptance Sampling and Statistical Process Control is that while the former aims at an analysis of the quality or the level of acceptance of the products already being produced and marketed, the latter ensure that the quality of the goods in circulation are being improved from time to time. An acceptance sampling plan could be conducted with the help of Operating Characteristics Curve (OC Curve) which displays the percentage of people accepting the product given various possible situations of the commodity being tested turning out to be defective. The adjoining diagram shows an Operating Characteristic Curve (OC Curve) which is the locus of the probability of acceptance of a particular good among the target customers given the percentage of defective goods being produced. It is found that the lower the percentage of defective goods being produced, the higher is the probability of acceptance of the produce among the people and vice-versa. This is a part of Acceptance Sampling; the higher the level of accuracy or efficiency in the production process, the greater is the level of acceptance among the population as far as the product is concerned (Infinity QS, p. 2). Conclusion and Recommendations Quality control is an important aspect of the production process. The task of the production house or the organisation responsible for the production of the final commodity is not only entrusted with yielding the final produce, but is also obliged to carry on the important measures for the enhancement of quality of the commodity, so as to help it to survive market competition. The better the measures of quality control being implemented by an organisation, the greater will its chances of sustenance be in the market. However, the problem is that the measures of quality control are often oriented towards empirical research methods which involve primary researches that are often costly to be conducted. Hence, the researchers have to identify a significant area of research before finalising upon one, in order to avoid too much expenditure on part of the company; otherwise, it might be the case that the researchers who want to curtail the cost of production and aim at widening the profit margin of the company end up deteriorating the same. Given that almost all research methods are costly enough to be conducted it is recommended to observe the trends in consumer behaviour given the marketing of a substitute of the commodity. If people are found to accept the substitute well enough, it could be predicted that their response will be similar for the good in question as well. Though, the question of first mover advantage remains over here, if the company already has a good brand name, it will not find it much difficult to earn a place in the market. References Infinity QS. ‘An Introduction to Acceptance Sampling’. Available at No Date, p. 1. Montgomery, D. C. Introduction to Statistical Quality Control (5th Edition). Arizona State University. 2005, p. 5-31 Wisner, P. ‘Statistical Process Control for Quality Improvement’. Available from No Date, p. 1 Bibliography Oakland, J. S. Statistical Process Control. Butterworth-Heinnemann. 2008. p. 68-70 Powell, T. C. (1995) ‘Total Quality Management as Competitive Advantage: A Review and Empirical Study’, Strategic Management, Vol. 16 (15-37). Available at Read More