When Statistical Process Control Goes Wrong

The role of managers in statistical process control (SPC) is quite important. The manager must set quality standards for his company’s products or services and enforce those standards. This demonstrates an overall commitment to quality and motivates employees to produce quality products and services (Rungtusanatham, 2001). There is the question as to how the enforcement is implemented. Bushe (1988) argues that gradual implementation is more successful than an abrupt imposition.

What I found missing in Goetsch & Davis (2021) was their coverage of management’s duties when things go wrong. For each measurable and tracked quantity, the manager established production quality standards so there is the possibility that the quality can fall below the standard.

In the context of software companies – web hosting companies in particular – there are SPC systems in place, and they are always automated. One of the benefits of automated systems is that text-message alerts can be sent to the appropriate people when some measurement goes out of spec. The “appropriate people” aren’t always managers, but they are usually in the position to effect repairs. Managers are required whenever money is required, however.

A similar situation happens in manufacturing: machine operators would be the first to spot a problem and would most likely be able to repair the machine. If the machine needs replacement, a manager must approve the required funds.

Besides situations needing the expenditure of funds, managers are required when problems arise with supply chain partners. For example, suppose a supplier is providing substandard parts, parts whose quality falls below the agreed-upon quality level. The manager must not allow the quality of his company’s product to suffer as a result.

The manager must work with the supplier to arrive at some solution.

One thing the manager can do is to get an estimate for the time needed for the supplier to resume manufacturing products that are within agreed-upon specifications. Based on this information, the manager may have to delay delivery to his customers or deliver less than what was promised.

In situations when some fixed percentage of the supplier’s parts are below quality standards, the supplier can deliver additional parts in hope that enough of them are acceptable. With additional parts, the company can then deliver quality items to its customers.

The most drastic option is to switch suppliers, either temporarily or permanently. Well-ran businesses will always maintain alternative suppliers, and changing to an alternative supplier would require management decisions.

Managers are not only responsible for setting quality standards, but they are also responsible for deviations from quality standards. By embracing these duties, managers ensure adherence to established product quality standards and sustain customer satisfaction.

References

Bushe, G. (1988). Cultural contradictions of statistical process control in American manufacturing organizations. Journal of Management 14(1). https://doi.org/10.1177/014920638801400103

Goetsch, D. L. & Davis, S. B. (2021). Quality management for organizational excellence: Introduction to total quality (9^th ed.). Pearson.

Rungtusanatham, M. (2001). Beyond improved quality: the motivational effects of statistical process control. Journal of Operations Management 19(6). https://doi.org/10.1016/S0272-6963(01)00070-5