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  • Essay / Statistical process control: a statistical method...

    The goal of these organizations is to produce their results at an acceptable cost and to provide goods and services that meet customer requirements (xiv). To be viable, these organizations must satisfy their customers, produce products of competitive quality, and remain profitable. Most manufacturers would define quality as a product conforming to certain physical characteristics defined in a particularly strict specification, while the organization's customers would define a quality product as a product meeting their requirements (xiv). In order to satisfy the customer, the organization must meet the customer's requirements by ensuring that the product that the customer receives conforms to the product standards. To ensure that the product meets the company's quality standards, products must be checked and inspected. If the product does not meet quality standards, it may need to be scrapped or reworked and then re-examined. If the customer receives an inferior product, the company will incur external failure costs such as warranty claims, customer complaints, and loss of goodwill (xiv). A poor manufacturing process will result in high external and internal failure costs as well as high evaluation costs. By using SPC to improve the manufacturing process, the organization can reduce these costs and increase