Topic > Statistical Process Control: A Statistical Method...

The goal of these organizations is to produce their outputs at an acceptable cost and provide goods and services that conform to customer requirements (xiv). To be sustainable these organizations must satisfy their customers, produce products of competitive quality and remain profitable. Most manufacturers define quality as a product conforming to certain physical characteristics established within particularly stringent specifications, while the organization's customers define a quality product as one that meets their requirements (xiv). To satisfy the customer, the organization must meet the customer's requirements by ensuring that the product the customer receives conforms to the product standards. To ensure that the product meets the company's quality standards, the products must be checked and inspected. If the product does not meet quality standards it may have to be scrapped or reworked and then re-tested. If the customer receives a substandard product, the company will incur external costs for failures such as warranty claims, customer complaints, and loss of goodwill (xiv). An inadequate manufacturing process will lead to high internal and external failure costs and high evaluation costs. By using SPC to improve the manufacturing process, the organization can reduce and increase these costs