Statistical tools

defination
• Statistical quality control (SQC) is the term
used to describe the set of statistical tools
used by quality professionals.
• The statistical methods used to monitor and
improve the quality of the output of a
manufacturing process. SPC includes the use
of qualitycontrol charts, optimization,
 reliability, and experimental design.
 Divided into 3 categories
1. Descriptive statistics are used to describe quality characteristics and
relationships.
Included are statistics such as the mean, standard deviation, the range,
and a measure of the distribution of data.

2. Statistical process control (SPC) involves inspecting a random sample of the

output from a process and deciding whether the process is producing products
with characteristics that fall within a predetermined range. SPC answers the
question of whether the process is functioning properly or not.

3. Acceptance sampling is the process of randomly inspecting a sample of goods

and deciding whether to accept the entire lot based on the results. Acceptance
sampling determines whether a batch of goods should be accepted or rejected.
 Used for
• measuring and evaluating the quality of
products or services.
• identify quality problems during the
production process.
• not only measure the value of a quality
characteristic but also identify a change or
variation in some quality characteristic of the
product or process.
 IMPLICATIONS FOR MANAGERS
• How Much and How Often to Inspect
Consider Product Cost and Product Volume
Consider Process Stability
Consider Lot Size
• Where to Inspect
Inbound Materials
Finished Products
Prior to Costly Processing
 Which Tools to Use
• control charts are best – production process
(VARIABLE MEASURES)
• Acceptance sampling - inbound and
outbound materials(ATTRIBUTES MEASURES)
Surveys of
• Industry practices - control charts, especially x-
bar andR-charts, because they require less
data collection than p-charts.
LEARNING FROM THE BEST (motorolla )
􀂄 Six Sigma Quality
􀂄 Participative Management Program
(PMP)
􀂄 Benchmarking
􀂄 Employee Involvement
􀂄 Customer Focus
Sales in 1987 totalled $6.7 billion
􀂄 Most products have increased their
market share, in the US and abroad
􀂄 Customer Satisfaction
 WESTINGHOUSE ELECTRIC CORP.

• Management Leadership – Total Quality

• Culture
• 􀂄 Product and Process Leadership
• 􀂄 Human Resource Excellence
• 􀂄 Customer Service Plans created for each
client
WESTINGHOUSE ELECTRIC CORP

High levels of customer satisfaction

􀂄 Yields in the manufacture of fuel rods
increased from less than 50% to 87%
􀂄 Substantially reduced scrap, product
reworking, and manufacturing cycle
time
􀂄 Achieved over 3 years 100% on-time
delivery of high quality products
 YELLOW PAGES
• Developing team spirit
• 􀂄 Developing effective communication
• 􀂄 Caring for people
• 􀂄 Providing a firm grounding in information
• 􀂄 Communicating Policy & Strategy
• 􀂄 Financial strategies
• 􀂄 Identifying key processes
 YELLOW PAGES
• Good customer satisfaction record (95% of
• customers intend to repurchase next year –
• customer retention average 7 years for
• advertisers, 15 years for large customers)
• 􀂄 Services are used 5 times more than the
• nearest competitor – 90% of advertisers
• regard them as good value for money
• 􀂄 Efficiency and effectiveness – more effective
• at selling, beaten efficiency targets
• 􀂄 Sales per employee has increased likewise
• profits delivered to shareholders
 TQM - Cost or Investment?

Year Company Stock Growth (Oct 94)

1988 Motorola 373.0%
1988 Westinghouse (CNFD) - 49.6%
1989 Xerox (BPS) 75.9%
1990 General Motors 1.6%
1990 Federal Express 10.6%
1990 IBM (IBM Rochester) - 34.9%
1991 Selectron 526.9%
1992 AT&T (UCS) 32.2%
1992 AT&T (TSBU) 32.2%
1992 Texas Instruments (DS&E) 106.8%
1993 Zytec 8.4%
1994 Eastman Chemical 18.5%
Total Stock Value £23016 (91.8%+)
Standard & Poor 500 Stock value £15911 (32.6%+)
Source: US Dept. of Commerce Study 1995
TQM