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SPC - Increase profit by reducing waste

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5 Jun 23rd, 2003  (Jun 24th, 2003)

26 Ciao members have rated this review on average: very helpful

Advantages:
Improves profit by reducing business waste

Disadvantages:
Needs a little application

Recommendable Yes:

Detailed rating:

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Interesting/Absorbing?

Logical Layout?

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About me:

Has he hair or grin of glee, or has he just come round for tea. Who’er yellowed skin maybe, far bey...

Member since:02.02.2003

Reviews:19

Members who trust:23

What is SPC?

Statistical Process Control has been around for many years and was first introduced by Walter Shewhart at the Bell Telephone Laboratories and led to his book, "Economic Control of Quality of Manufactured Product", first published in the early 1930's. Then it was exported to Japan in the 1950's by W. Edwards Deming who initiated wide scale statistical training. The rest is a very successful history.

It is a philosophy that uses statistical techniques in all areas of a company for continuous improvement by reducing variation in all processes by focusing on defect prevention (before it occurs) rather than detection (after the fact inspection).

Essentially a preventive technique for business improvement, it targets process variation thereby reducing waste and any associated costs by process monitoring and control. Central to this philosophy is that it utilises the people who do it to gather the data. This data could be information on injuries, defects, invoice errors, settings, late payments, prices, inventories, forms, designs, quantities, discounts, customers, complaints just to name a few.

Using statistics the normal spread of variation can be plotted to show running trends and the predicted limits of variation. Any trend that is heading towards or outside acceptable variation limits is potentially waste and an opportunity for improvement.

Why the interest in this ebook.

I have been around this type of subject for a few years and been involved in setting up and using them, and even given training on the subject. I have personal experience and know it does work if set-up correctly; the benefits can be more rewarding than just improving the process. Hence the interest and it helps on the sleepless nights.

The ebook.

This ebook introduces the concept of Statistical Process Control (SPC) in 80 pages (A4 format), over 46 illustrations/diagrams, data tables and blank charts. It discusses usage across business and services with numerous worked examples and illustrations.

As every process has natural variation and therefore it is impossible to repeatedly produce any product with absolute consistency, reducing this variation has to be beneficial.

The causes discussed are:
 Material.
 Tool wear.
 Position.
 Speed.
 Access.
 Manual actions.
 and so on.

Essentials covered:
 Process involvement.
 Commitment.
 Prevention.
 Stability.
 Variation.
 Dispersion.
 Distribution.
 Statistics.
 Probability.
 Process capability.


Correct variable and attribute charting selection and methodologies supported by worked examples with out of control condition interpretations:
 Individual & Moving Range (X & Rm)
 Average & Range
 Average & Range Zero Nominal
 Attribute charts

Further information on analysis techniques with worked examples and data tables:
 Tally Sheets.
 Histograms.
 Pareto.
 Ishikawa Fishbones.
 Scatter diagrams.
 Correlation charting.

Good points.
Plenty of illustrations and worked examples with all the equations laid out and explained in steps which would suit a training session. As it progresses it builds up to fully documented charts to show how table data is plotted. Also a free sample chapter is provided and can be downloaded to see what it contains.

It is written with the novice in mind but does not detract from its purpose. I would expect this to be useful for students, managers and users wishing to know a little more. Nothing is too taxing and each step can be repeated until it is understood.

Not so good points.
It is mathematics and basically predictive statistics, so may put people off if they don’t feel inclined. As it is A4 size format it can be read from screen but is better to use when printed. Also the process for obtaining a copy is to download the file and then email for a password to unlock it so it can be viewed, which can be tedious but is understandable.


http://www.murtongroup.com/documentation/SPCwithConfidence.htm
Price £9.95 (very favourable to other publications of this nature)

In conclusion

It will appeal to all levels both academic and business, those who know about it and those who want to know more. The language used is as non-technical as the subject will allow and explains probability and sampling without delving into the depths of mathematical first principals. Information is easy to read and subjects covered go beyond SPC into analysis and 6 sigma variation without the reader noticing they they’ve been taken that far. All equations are noted and it even provides an easy guide to what buttons to press on a standard calculator.

One of the main myths about S.P.C. is that it is pure statistics and the preserve of the mathematician. This ebook shows this is untrue and illustrates how (with a modicum of training) anyone capable of following a laid out process could produce the most complex looking and useful charts that would give them a buzz of confidence.

It states S.P.C. involves 10% statistics and 90% problem solving to prevent any variation around an identified target value, and something I personally believe. Also don’t be put off by the price as it contains much more than you would expect from something in its range.

They say a picture is worth a thousand words – well there are a lot of them in here, so this is a recommendation.

Further reading:
 The Quality 75 by John Bicheno - http://www.picsie.co.uk/uk2shop-1.htm
 SPC articles - http://www.qualityamerica.com/knowledgecente/knowctrSPC_Articles.htm

 

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Comments about this review »

jesi 26.07.2004 20:22

Waiting for paswords to come into your inbox (or your junk mail sometimes) is a very time-consuming process when you have other things to do. ≈≈≈≈{; -)-{{:::::|||||<

joy9 02.10.2003 22:56

Hiya, Sorry I havn't had the chance to read this opinion before but I have only logged in for the first time tonight. I wanted to thank you and all my mates in our gang, for the support I received when I bored you all with the TESCO case. Anyway, quick update, I've gotten myseld another solicitor who is 'hopefully' sueing Tesco. This opinion was absolutely brilliant. It was so informative, yet interesting to read. Keep on writin!! luv joy9

Fluff-Buff 25.06.2003 15:04

I'm afraid I am totally baffled! Well written op though! Fluff :o





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