Operations Management: Statistical Process Control

Statistical Process Control (SPC) is a form of quality assurance within the framework of operations management. SPC employs statistical charts to monitor and improve the conformity of the manufacturing process.

Scope of this Exercise: Through exploration of the plant resources and problem cases presented in the menu bar above – Crushed Chips, Stale Chips, and Nasty Taste – each participant will be able to:

1. Distinguish between normal and assignable variation.
2. Diagnose common root causes of assignable variation.
3. Calculate key statistical data of a control chart including an r chart.
4. Develop a control chart of upper and lower limits.
5. Define trends to look for when monitoring the control charts.

Participants will be faced with increasingly difficult problems to solve. The case of the Crushed Chips is designed to help identify the upper and lower bounds of normal variation. The case of the Stale Chips poses a problemof identifying which production line station is outside of normal variation. This work will be achieved individually outside of class prior to the week of SPC lectures for operations management.

Finally the case of the Nasty Taste asks participants to diagnose a more complex problem. This work will be conducted partially out of class, but the argumentative assignment for this work will be conducted in small group discussion inside of class time.

Each participant will work individually to diagnose:

• The upper and lower bounds of the problem.
• The cause of the problem.
• The best solution to the problem.

Be prepared to argue your position in class and convince your peers!