Doing it right the second time
| DOI | https://doi.org/10.1108/02635579610126818 |
| Published date | 01 September 1996 |
| Pages | 14-19 |
| Date | 01 September 1996 |
| Author | Ashok Kumar,Jaideep Motwani |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
[ 14 ]
Industrial Management &
Data Systems
96/6 [1996] 14–19
© MCB University Press
[ISSN 0263-5577]
Doing it right the second time
Ashok Kumar
Professor of Management, and
Jaideep Motwani
Department of Management, Grand Valley State University, MI, USA
Discusses the steps taken by
Laser Inc. in the development
and implementation of a
statistical process control
(SPC) system for two specific
production lines. The SPC
programme included a total
of 16 steps. Explains each of
these steps. Suggest that
they are comprehensive in
nature and can be used by
any organization wanting to
implement an SPC system.
Introduction
Statistical process control (SPC) is an impor-
tant tool which organizations can use in their
pursuit of continuous improvement. An SPC
system is a type of feedback system in which
information about a process is used to main-
tain and improve the process. The goal of an
SPC system is to make economically efficient
decisions concerning the types of actions to
take on a process and who should initiate the
action.
The typical benefits provided by SPC are as
follows:
1 SPC charts can be used by operators for
ongoing control of the process. They give
the operator information on when to take
action, and just as importantly, when not
to take action in terms of adjusting the
process or notifying the supervisor that
there is a problem.
2 SPC can help make a consistent,
predictable process which will help both
the producer and customer maintain their
quality level and cost.
3 SPC lays the ground work for process
improvement, allowing the process to
improve quality, lower cost, and increase
capacity.
4 SPC charts provide a common language
concerning the performance of a process
for different workers on the process, for
workers to management, and for producer
to consumer.
5 SPC charts can help distinguish special
causes of variation from common causes of
variation. This helps determine who
should initiate action on the process – the
operator or management.
The purpose of this paper is to show how a
west Michigan manufacturing corporation
developed and implemented an SPC pro-
gramme for two specific product lines of the
company. The SPC programme included a
total of 16 steps. Each of these steps are
clearly explained in the paper. We feel that
these steps are comprehensive in nature and
can be used by any organization wanting to
implement an SPC system.
Company background
Laser Inc., the company under investigation,
was founded in the late 1970s based on an idea
to install a sanitary sewer pipe using a
helium neon-laser as a reference beam. Since
that time the company has extended its prod-
uct line to include lasers and machine control
products for many other construction
requirements. Laser use is now the standard
for pipe laying, land contouring, and level
reference in building construction.
Most of the products sold by Laser Inc. are
designed and assembled by the company.
Customer needs and requirements are deter-
mined and verified through a joint effort by
the marketing and the research and develop-
ment (R&D) departments. The products are
then designed, prototyped and tested in R&D.
Production units must comply with all
design specifications and performance
requirements. If a unit is found to be defective
in any area it must be reworked. It is not
practical or cost effective to inspect for all
design requirements of each unit after the
product is built, so it is hoped that an SPC
programme can be developed that will both
assure that a high quality product is being
shipped and help to improve the production
process.
In 1990, the management of the company
decided to implement a JIT programme for a
new laser product. The production line was
set up to work on lot sizes of one and SPC was
to be used for many of the key characteristics
on the product. Kanban squares were laid out
on each bench. Workers were not to place
more than one piece in the next kanban
square. If a problem developed or the process
went out of control, all work was to stop until
an assignable cause was determined and
eliminated.
The programme was a complete failure and
the production line was redesigned after
about three months. Lot size was increased
and SPC was eliminated. The experiment left
management thinking that SPC was not a
useful tool. Because of that bad experience,
SPC was not considered again until 1994. It is
important to look at what went wrong in 1990
so that these problems can be avoided when a
new programme is implemented. The reasons
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