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INTRODUCTION
1. TOOLS FOR STATISTICAL QUALITY CONTROL:
There are seven basic quality tools, which can assist an organization for problem solving and
process improvements. The first guru who proposed seven basic tools was Dr. Kaoru Ishikawa in
1968, by publishing a book entitled “Gemba no QC Shuho” that was concerned managing
quality through techniques and practices for Japanese firms. It was intended to be applied for
“self-study, training of employees by foremen or in QC reading groups in Japan.
These seven basic quality control tools, which introduced by Dr. Ishikawa, are : 1) Check sheets;
2) Graphs (Trend Analysis); 3) Histograms; 4) Pareto charts; 5) Cause-and-effect diagrams; 6)
Scatter diagrams; 7) Control charts.
1. Cause-and-effect diagram (also called Ishikawa or fishbone chart): Identifies many possible
causes for an effect or problem and sorts ideas into useful categories.
2. Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that
can be adapted for a wide variety of purposes.
3. Control charts: Graphs used to study how a process changes over time.
4. Histogram: The most commonly used graph for showing frequency distributions, or how often
each different value in a set of data occurs.
5. Pareto chart: Shows on a bar graph which factors are more significant.
6. Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a
relationship.
7. Stratification: A technique that separates data gathered from a variety of sources so that
patterns can be seen (some lists replace “stratification” with “flowchart” or “run chart”).
2. PROCESS CONTROL SYSTEMS IN SERVICE INDUSTRIAL:
Process control systems make sure industrial processes are carried out efficiently, consistently
and with as little variation as possible. They're installed in industrial settings to:
 help maintain throughput, quality, yield and energy efficiency
 make sure working practices are carried out safely and profitably
2
Systems measure, monitor and control manufacturing processes and activities. They identify and
correct any abnormalities or variations from specified values, either manually or automatically.
The aim is to make sure that production is consistent and that as little energy is wasted as
possible.
Although process control technology has advanced rapidly since the mid 1980s, the latest
systems still follow the traditional hierarchical or pyramid-like structure. The lowest level of the
pyramid works to make sure a particular process doesn't vary by more than an allowed amount. It
monitors the operation of each part of the process, identifies unwanted changes and initiates any
necessary corrective actions.
Lower level controls can't handle complex situations like equipment faults. These have to be
dealt with either manually, by an operator, or by other controls at a higher level of the hierarchy.
Further up the pyramid the system controls the overall production process and makes sure it
continues to operate efficiently.
Benefits of an efficient process control system:
Your business could benefit from a well-designed control system in many ways, including:
 Energy savings - energy wastage is reduced when your plant and machinery are efficiently
operated
 Improved safety - control systems automatically warn you of any abnormalities which
minimizes the risk of accidents
 Consistent product quality - variations in product quality are kept to a minimum and reduce
your wastage
 Lower manufacturing costs - detecting faults early means throughput, yield and quality are
maintained
 Improved environmental performance - systems can give you an early warning of a rise in
emissions
Your business could achieve energy savings of up to 15 per cent with a well designed and
properly maintained process control system.
3
3. JUST IN TIME (JIT):
Just in time (JIT) is an inventory management system, used to manage the stock that is kept in
storage. It involves receiving goods from suppliers as and when they are required, rather than
carrying a large inventory at once.
Advantages of just in time inventory management:
1. Its purpose is to minimize the amount of goods you hold at any one time, and this
has numerous advantages: Companies like to use JIT as it is seen as a more cost
efficient method of holding stock.
2. Less space needed: With a faster turnaround of stock, you don’t need as much
warehouse or storage space to store goods.
3. This reduces the amount of storage an organization needs to rent or buy, freeing up funds
for other parts of the business.
4. Waste reduction: A faster turnaround of stock prevents goods becoming damaged or
obsolete while sitting in storage, reducing waste.
5. This again saves money by preventing investment in unnecessary stock, and reducing the
need to replace old stock.
6. Smaller investments: JIT inventory management is ideal for smaller companies that
don’t have the funds available to purchase huge amounts of stock at once. Ordering stock
as and when it’s needed helps to maintain a healthy cash flow.
Disadvantages of just in time inventory management:
JIT unfortunately comes with a number of potential disadvantages, which can have a significant
impact on the company if they occur.
1. Risk of running out of stock: By not carrying much stock, it is imperative you have the
correct procedures in place to ensure stock can become readily available, and quickly. To
do this, you need to have a good relationship with your supplier(s).
2. You may need to form an exclusive agreement with suppliers that specifies supplying
goods within a certain time frame, prioritizing your company.
4
3. JIT means that you become extremely reliant on the consistency of your supply
chain. What if your supplier struggles with your requirements, or goes out of business?
Can you get the products quickly from somewhere else?
4. Lack of control over time frame: Having to rely on the timeliness of suppliers for each
order puts you at risk of delaying your customers’ receipt of goods.
5. If you don’t meet your customers’ expectations, they could take their business elsewhere,
which would have a huge impact on your business if this occurs often.
6. More planning required: With JIT inventory management, it’s imperative that
companies understand their sales trends and variances in close detail. Most companies
have seasonal sales periods, meaning a number of products will need a higher stock level
at certain times of the year due to higher demand. Therefore, you need to factor that into
planning for inventory levels, ensuring suppliers are able to meet different volume
requirements at different times.
4. THE HUMAN SIDE OF PROCESS CONTROL:
Managing is not a series of mechanical tasks but a set of human interactions.
1. Health Care. This is the area I hear the most buzz about for SPC. A great deal of
interesting work is being done in monitoring process variables such as late payments, the
number of available beds, payments to providers, script-writing rates for high-risk drugs,
pain levels during recovery from surgery, and so on. I can only scratch the surface here.
The writing is on the wall about health care becoming still more expensive, data are
becoming more and more plentiful, and it is especially easy for problems to hide in
massive data. Unpredictable problems = cost. Process control = savings.
2. Customer Service How long did you have to wait in line the last time you were in a
big box store? When you last called the cable company? Some companies recognize that
if customer service is slow, you will take your business elsewhere. Some are even willing
to take action on that knowledge. There are plenty of measureable service quality
characteristics that can be tapped into to identify times of day or product lines that are
inconsistent, which translates to a better customer experience, and to customer loyalty.
5
3. Survey Research; Survey methodologists have a wealth of questions:
Did the surveys go out to the intended recipients?
Were they completed in a timely manner? Were the answers honest?
Did the interviewer falsify data?
Did the machine that reads the forms make an error?
6
References:
1. Forbes, L H. & Ahmed S. M. (2011). Modern construction : lean project delivery and
integrated practices. Boca Raton, Fly: Taylor and Francis Group. Neyestani B. (2017, March).
“Seven Basic Tools of Quality Control: An Appropriate Tools for Solving Quality Problems in
the Organizations.”
2. Juran, M., and Godfrey, A. (1998). Juran’s quality handbook (5th ed.). Washington, DC:
McGraw-Hill Companies, Inc.
3. Kerzner, H. (2009). Project Management: A Systems Approach to Planning, Scheduling, and
Controlling (10th ed.). Hoboken, New Jersey: John Wiley & Sons, Inc.

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Statistical Quality Tools & Process Control Systems

  • 1. 1 INTRODUCTION 1. TOOLS FOR STATISTICAL QUALITY CONTROL: There are seven basic quality tools, which can assist an organization for problem solving and process improvements. The first guru who proposed seven basic tools was Dr. Kaoru Ishikawa in 1968, by publishing a book entitled “Gemba no QC Shuho” that was concerned managing quality through techniques and practices for Japanese firms. It was intended to be applied for “self-study, training of employees by foremen or in QC reading groups in Japan. These seven basic quality control tools, which introduced by Dr. Ishikawa, are : 1) Check sheets; 2) Graphs (Trend Analysis); 3) Histograms; 4) Pareto charts; 5) Cause-and-effect diagrams; 6) Scatter diagrams; 7) Control charts. 1. Cause-and-effect diagram (also called Ishikawa or fishbone chart): Identifies many possible causes for an effect or problem and sorts ideas into useful categories. 2. Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that can be adapted for a wide variety of purposes. 3. Control charts: Graphs used to study how a process changes over time. 4. Histogram: The most commonly used graph for showing frequency distributions, or how often each different value in a set of data occurs. 5. Pareto chart: Shows on a bar graph which factors are more significant. 6. Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a relationship. 7. Stratification: A technique that separates data gathered from a variety of sources so that patterns can be seen (some lists replace “stratification” with “flowchart” or “run chart”). 2. PROCESS CONTROL SYSTEMS IN SERVICE INDUSTRIAL: Process control systems make sure industrial processes are carried out efficiently, consistently and with as little variation as possible. They're installed in industrial settings to:  help maintain throughput, quality, yield and energy efficiency  make sure working practices are carried out safely and profitably
  • 2. 2 Systems measure, monitor and control manufacturing processes and activities. They identify and correct any abnormalities or variations from specified values, either manually or automatically. The aim is to make sure that production is consistent and that as little energy is wasted as possible. Although process control technology has advanced rapidly since the mid 1980s, the latest systems still follow the traditional hierarchical or pyramid-like structure. The lowest level of the pyramid works to make sure a particular process doesn't vary by more than an allowed amount. It monitors the operation of each part of the process, identifies unwanted changes and initiates any necessary corrective actions. Lower level controls can't handle complex situations like equipment faults. These have to be dealt with either manually, by an operator, or by other controls at a higher level of the hierarchy. Further up the pyramid the system controls the overall production process and makes sure it continues to operate efficiently. Benefits of an efficient process control system: Your business could benefit from a well-designed control system in many ways, including:  Energy savings - energy wastage is reduced when your plant and machinery are efficiently operated  Improved safety - control systems automatically warn you of any abnormalities which minimizes the risk of accidents  Consistent product quality - variations in product quality are kept to a minimum and reduce your wastage  Lower manufacturing costs - detecting faults early means throughput, yield and quality are maintained  Improved environmental performance - systems can give you an early warning of a rise in emissions Your business could achieve energy savings of up to 15 per cent with a well designed and properly maintained process control system.
  • 3. 3 3. JUST IN TIME (JIT): Just in time (JIT) is an inventory management system, used to manage the stock that is kept in storage. It involves receiving goods from suppliers as and when they are required, rather than carrying a large inventory at once. Advantages of just in time inventory management: 1. Its purpose is to minimize the amount of goods you hold at any one time, and this has numerous advantages: Companies like to use JIT as it is seen as a more cost efficient method of holding stock. 2. Less space needed: With a faster turnaround of stock, you don’t need as much warehouse or storage space to store goods. 3. This reduces the amount of storage an organization needs to rent or buy, freeing up funds for other parts of the business. 4. Waste reduction: A faster turnaround of stock prevents goods becoming damaged or obsolete while sitting in storage, reducing waste. 5. This again saves money by preventing investment in unnecessary stock, and reducing the need to replace old stock. 6. Smaller investments: JIT inventory management is ideal for smaller companies that don’t have the funds available to purchase huge amounts of stock at once. Ordering stock as and when it’s needed helps to maintain a healthy cash flow. Disadvantages of just in time inventory management: JIT unfortunately comes with a number of potential disadvantages, which can have a significant impact on the company if they occur. 1. Risk of running out of stock: By not carrying much stock, it is imperative you have the correct procedures in place to ensure stock can become readily available, and quickly. To do this, you need to have a good relationship with your supplier(s). 2. You may need to form an exclusive agreement with suppliers that specifies supplying goods within a certain time frame, prioritizing your company.
  • 4. 4 3. JIT means that you become extremely reliant on the consistency of your supply chain. What if your supplier struggles with your requirements, or goes out of business? Can you get the products quickly from somewhere else? 4. Lack of control over time frame: Having to rely on the timeliness of suppliers for each order puts you at risk of delaying your customers’ receipt of goods. 5. If you don’t meet your customers’ expectations, they could take their business elsewhere, which would have a huge impact on your business if this occurs often. 6. More planning required: With JIT inventory management, it’s imperative that companies understand their sales trends and variances in close detail. Most companies have seasonal sales periods, meaning a number of products will need a higher stock level at certain times of the year due to higher demand. Therefore, you need to factor that into planning for inventory levels, ensuring suppliers are able to meet different volume requirements at different times. 4. THE HUMAN SIDE OF PROCESS CONTROL: Managing is not a series of mechanical tasks but a set of human interactions. 1. Health Care. This is the area I hear the most buzz about for SPC. A great deal of interesting work is being done in monitoring process variables such as late payments, the number of available beds, payments to providers, script-writing rates for high-risk drugs, pain levels during recovery from surgery, and so on. I can only scratch the surface here. The writing is on the wall about health care becoming still more expensive, data are becoming more and more plentiful, and it is especially easy for problems to hide in massive data. Unpredictable problems = cost. Process control = savings. 2. Customer Service How long did you have to wait in line the last time you were in a big box store? When you last called the cable company? Some companies recognize that if customer service is slow, you will take your business elsewhere. Some are even willing to take action on that knowledge. There are plenty of measureable service quality characteristics that can be tapped into to identify times of day or product lines that are inconsistent, which translates to a better customer experience, and to customer loyalty.
  • 5. 5 3. Survey Research; Survey methodologists have a wealth of questions: Did the surveys go out to the intended recipients? Were they completed in a timely manner? Were the answers honest? Did the interviewer falsify data? Did the machine that reads the forms make an error?
  • 6. 6 References: 1. Forbes, L H. & Ahmed S. M. (2011). Modern construction : lean project delivery and integrated practices. Boca Raton, Fly: Taylor and Francis Group. Neyestani B. (2017, March). “Seven Basic Tools of Quality Control: An Appropriate Tools for Solving Quality Problems in the Organizations.” 2. Juran, M., and Godfrey, A. (1998). Juran’s quality handbook (5th ed.). Washington, DC: McGraw-Hill Companies, Inc. 3. Kerzner, H. (2009). Project Management: A Systems Approach to Planning, Scheduling, and Controlling (10th ed.). Hoboken, New Jersey: John Wiley & Sons, Inc.