Strategic Management

A detailed Summary of 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.

· Reduce variation and monitor for unusual variation

· Determine the capability of the process

· Understand and optimize the proces

In a semi-automated SPC system, information is entered directly into a computer, either by typing or by a gauge linked to the computer. This permits automatic alerting of potential problems, improved reliability, and easy access to the information by other people. Advantages include better analysis, reduced training, and easy access. A disadvantage could be the operator is required to use a computer.

Control charts include control limits calculated from collected data. When plotted points fall outside of these control limits, it indicates that the process has changed.

In order to be effective, SPC should be understood as a planning process; not just a set of control charts.

Benefits obtained can quickly repay any investment to implement SPC. The cost largely depends on the method used to collect and process the information. SPC systems generally fall into three main types: manual, semi-automated, and fully-automated.

There are three types of patterns that may appear on an SPC chart. A run is a repeating pattern of plot points on one side of the control chart's centerline. A cycle is a repeating pattern of plot points that appear to be cyclical or time-dependent. A trend consists of six or more plot points moving consecutively in an upward or downward direction. Regardless of whether a chart shows a run, cycle, trend, or a combination of two or more of these, there has been a meaningful change in the process and the control limits may need to be recalculated.

In a manual SPC system, a person records a small set of readings at regular intervals on a standard SPC form, along with the time and their name. A quick look at the chart for any trends is usually enough to check for potential problems. Advantages are that a manual system is flexible and requires no special equipment. Disadvantages are that it is less reliable than automated systems, more time consuming, and requires operator training.

Histograms compare the distribution of measurements from an in-control pro

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Approximate Word count = 1344
Approximate Pages = 5 (250 words per page double spaced)

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