Building Effective SPC with Pilots

Introduction:

The secret to a successful statistical process control is piloting. Every organisation is different and this implies different end results. However, the key ingredients of reaching the goal remain the same (ReVelle, 2016). Organizations need to commence with a piloting project where the emphasis should be put on customising and development an SPC system that co-lines well with your organisation's processes. In addition, there is need to prepare the company to adopt new changes, through awareness creation and well-defined roles and responsibilities (Amsden, 2018).

Implementation of a successful SPC in an organisation

The implementation of a successful SPC in an organization involves four phases, and these are as discussed below:

Phase one: Awareness

The immediate step in the awareness phase is noted to be the official beginning of the implementation of the SPC, and this involves the formal meeting of the organizational staff. The main objective is to familiarise the staff with the basic fundamentals of the SPC and what it takes for implementation (Burr, 2018). The assistance of a consultant and good preparation is very essential in realising a successful awareness meeting. At the end of awareness meeting, a facilitation committee is formed and the management issues assignment to plan for the implementation. The plan is majorly based on assessments with members of departments taking part in the process and should take steps involved in the pilot projects into consideration (Karoubi, 2016). Pilot project's steps are considered to be problematic and this enhances achievement of real results.

Phase two: Pilot projects

Project management approach should be applied and guided by the facilitating committee from the beginning of this phase. The facilitating committee creates teams that are entitled to work on the processes separated from the previous phase. Each team gets the assignment to regulate the process using a method that involves ten steps (Karoubi, 2016). After execution, the ten steps are implemented. The process is deemed to be operational point. Depending on size and complexity of the process, there is a variation in throughput time from three months to a year or more. This is based on meetings conducted weekly for two hours. In order to enlarge and improve commitments to knowledge of SPC, it's very important to offer SPC training practice for members of the facilitating committee, quality engineers, process engineers and development engineers (Abdul Halim Lim et al., 2017). The members of the team are trained on the job using the ten-step method. After close to a year, feedbacks of the results projects is given to the top management and steering committee and decision is made based on the results. At this point, there is no enormous return expected by the organisation on investments because the organisation still needs to learn and long term effects cannot be realized. However, the organisation should be motivated since SPC can improve profits and control processes (Chang, 2016).

Phase three: Implementation of the integral in the production

In this phase installations of process action team is done by the facilitating committee. The company structure described in the proceeding section must be effective. Starting with the weakest, some processes are chosen and process action teams are tasked to apply ten steps to put them under control (Abdul Halim Lim et al., 2017). All essential process steps should be regulated in this way. From the start of this phase, it is crucial to task one staff member with SPC coordination (Chang, 2016). The coordinator should familiarise himself with all SPC ins and outs. The coordinator assisted by consultant should offer SPC training to the staff members.

Phase four: Establishing the stage for TAM

After ensuring that the process is in control, the PATs are gotten rid of and changed into process improvement teams (Karoubi, 2016). They form part of the regular organisation and their mandate is to continuously tackle the problems and search for new opportunities for improvement since SPC majorly focuses on prevention rather than detection. It is a reasonable step to use SPC in cutting down variation in the development of products and processes (Keller, 2011).

Benefits of implementation of statistical process control with regard to process variation

The benefits derived from the implementation of statistical process control are provided as follows. First, it enhances operational efficiency. Notably, SPC charts project the statistical information examining manufacturing standards in a graphical format. Information on statistics provides analysis, which set the foundation for manufacturing. The organization should purpose to identify imperfections and rectify them without regard to assumptions (Karoubi, 2016). Secondly, it ensures cost control, owing to the fact that SPC plays a key role in controlling the production costs. By close monitoring on products quality, flaws are detected before shipping and consignment of the products is done. Thirdly, it enhances customer satisfaction. Evidently, the key objective of every organisation is to meet or go beyond customers’ expectations (Andrews et al., 2017). By using SPC the supplier is assured to win customer's loyalty because of high-quality products. Finally, it reduces the extent of manual inspections. Detecting errors after completion of production process can result in total product waste. Once the errors have been detected and correction made, equipment setting can then be corrected to facilitate faster manufacturing of products without the need to manually inspect (Mitra, 2016).

Types of control charts and their application

X bar control chart

In this type of control chart, the averages of all samples are plotted to monitor the variable mean, for instance, compound weights of bags, steel rods distance etching. When constructing this control chart, process samples output are put at regular intervals and the averages of all sets of samples are calculated and placed on the graph of X bar. This chart can be used to in determination of the mean actual process, versus the mean of a nominal process (O Oprime & Mendes, 2017). The demonstration is shown when the mean output has been changed over time

Application of X bar control chart

In statistical industry, x-bar is used in monitoring and examining means or averages of successive samples that are constant in size. It is applied in characteristics that are possibly measured on a continuous scale. For example, thickness, temperature etc. X bar can also be used in standardization (O Oprime & Mendes, 2017). This can be achieved by continuous collection of data throughout the entire process operation. If changes are made in the system and collection of data stopped, there can only be perception and opinions on whether the changes improved the system or not (Noskievicova, 2018). Without a control chart, it could be difficult to identify or know the variability sources of the process.

P-Control Chart

A chart is a type of attribute control chart applied with data that has been extracted in subgroups of different sizes. Since there is possible variation in sizes there is a proportion in nonconforming instead of the actual counts. This chart reveals how the process varies with time. Attribute of the process is often described in no or yes form, for instance, application of p-chart to draw a graph of incomplete proportion insurance claims that has been received on a weekly basis. There can a variation in subgroup depending on the sum of each claim during the week (Sanz-Calcedo et al., 2015).

Application of p-charts

P-charts are used to identify and determine some sudden changes in the system, which could be a possible attribute to a given cause. It is also used to evaluate the need for stratification into employee, subgroup, location, or time of the day. Additionally, p-charts determine the stability of the system. It compares different systems before and after greater change. For instance, times of call centre before and after training of the employee.

Importance of process capability and benchmark performance standard

Process capability is the consistency and repeatability of a manufacturing process in line with the customers’s demands in terms of specifying the limits of commodity parameter. Its importance is that it is used in measuring the degree to which a process doesn't meet requirements (Lim et al., 2016). When a process capability is documented and understood, it can be used in the measurement of continual improvement by use of trends over time, prioritising on the process order for significant improvement to be made, and determination on whether a process can meet customer demands or not (Johnson, 2017). Capability analysis is rendered to be Black Belt base.

The indices used to measure capability are Cpk and Cp. Cp is the measurement of the processability to produce persistent results and to meet required specifications. Significantly, it is the ratio between the actual spread and the permissible spread (Mitra, 2016). On the other hand, Cpk is a Cp variation that takes off centeredness into consideration. Cpk is used in the evaluation of the potential capability of the process based on both process spread and the location of the process. Generally, when the Cpk value is high, a more capable is indicated (Johnson, 2017). Lower Cpk indicates that the process needs improvement. When Comparison is done between Cpk and a benchmark that shows the minimum value, a benchmark value of 1.33 is ideal and therefore should be the target. If a lower value of Cpk is obtained, variation is reduced to improve the process (Andrews et al., 2017).

Conclusion

From the above analysis of various case studies it can be concluded that in order to survive in a competitive market, organisations need to produce high-quality products, and these standard quality products can be achieved by using the SPC tools. It is evident that SPC tools and techniques can positively affect the quality. The required techniques and tools are easy to implement and it needs employee support and top management involvement. The SPC knowledge is crucial in implementation and thorough guidance is necessary. Moreover, SPC tools can be used in different products to reduce the imperfections. It is therefore used globally to enhance products quality. SPC seems to be a statistical cantered problem-solving collection of tools. However, there is more successful use than mere learning and using these tools.

Section Two

Effects of International Quality and Environmental Standards on Total Quality and Environmental Management

Introduction

Today, the business environment is increasingly becoming competitive and companies have to keep up to stay afloat. To stay ahead of the rest, companies must adopt an all-round attitude in the conduct of business (Welford, 2016). A company will thus not only need to curve a competitive niche, but also consider its socio-economic impacts. International standards have therefore become commonplace for businesses to improve their performance against other competitors around the world (Fonseca, 2015). International Standard Organization guidelines are developed in response to market needs and any company regardless of its size can apply the standards to their operations to accomplish compliance. International Quality standards are entrenched in BS EN ISO 9001:2015 whereas Environmental Standards emanate from BS EN ISO 14001:2015. While international quality is aimed at considering the various risks inherent in business and how they hinder quality; environmental standards are aimed at improving the environmental management efforts of business. Both standards have key roles to play in achieving Total Quality and Environmental Management (TQEM) (Fonseca, 2015).

Customer Focus

One of the underlying themes under ISO 9001 requirements is identification and subsequent satisfaction of customer needs and stakeholder expectations. The basis of standards towards customer focus and stakeholder considerations is to gain competitive advantage (Fonseca, 2017). To achieve this, an organization will need to adopt universally recognized business tools to aid effectiveness and efficiency of its capabilities (Anttila and Jussila, 2017). A compliant company can therefore accomplish its goals and objectives in order to enhance customer satisfaction. To keep a client on an ongoing basis, it is important to have products that matches client needs and quality levels expected.

Leadership Involvement

Leadership involvement in quality management is important with regard to commitment in strengthening quality management programs in an organization. Every business unit should have a leadership that understands and accepts changes that are central to quality improvement (Goetsch and Davis, 2014). In order to inculcate a culture of quality management, the leadership team needs the expectations of retailers, regulators, suppliers, distributors, customers and other stakeholders likely to be affected by quality management (Chen, Anchecta, Lee, and Dahlgaard, 2016). This leadership role extends to incorporation of ISO standards into the organization to embrace quality and sustainable processes and operations.

Engagement of people

With increasing global competition, it is vital to create value in an organization. People in organizations need to be competent, empowered and engaged since they are the driving force behind the organizations. An organization’s growth plan should consist of employee motivation policies and feedback mechanisms that facilitate seamless communication between the management and employees (Chen, Anchecta, Lee, and Dahlgaard, 2016). It is also good practice to have clarity on job expectations and description so that employees are working only on projects directly contributing to organizational success.

Relationship Management

The performance of an organization is dependent on among other factors, nature of interaction with customers, suppliers, and employees. All relationships are central to the success of an organization, however, priority can be given to parties like suppliers and customers (Sitki Ilkay and Aslan, 2012). High standard of quality can be maintained through employing a deeper understanding of the values and vision of the relevant partners. Additionally, the partners can be reviewed every now and then to measure their performances, which directly impact on the organization (Chen, Anchecta, Lee, and Dahlgaard, 2016). Again, relationship management should not just be limited to the conventional stakeholders, but should extend to even the society so that environmental quality standards are implemented as well to achieve TEQM in an organization.

Systematic approach to risk management

Risk prevention is one of the focus areas of ISO 9001 standards. An organization adopting the standards is required to include risk management measures into the daily operations. The standards provide both reactive (corrective actions) and proactive (preventive actions) requirements for organizations (Anttila and Jussila, 2017). To effectively manage risks the management of an organization should undertake the following: determine the risks that are likely to affect organization’s performance; plan and work on the risks and opportunities arising; categorize the risks to be evaluated, monitored, measured, and analyzed and finally initiate continuous improvement.

Improvement

Improvement is an essential element in achieving quality management considering the volatile nature of business environment. There are constant changes in the external and internal environment of the business hence an organization must strive to keep up at all time so that it can continue to match customer needs (Welford, 2016). Notably, the current crop of customers have access to product information hence failure to keep up with changes will probably drive them away. Subsequently, companies need to stay ahead of their competitors by first having a quality policy, then objectives that mirror the policies and finally put efforts on improvement (Fonseca, 2015). Environmental Management Systems under ISO 14001 provides for systematic approaches to handling environmental issues in a company so that they are compliant.

Knowledge management

Knowledge plays a big role in implementation of international quality and environmental standards. When an organization has the requisite knowledge necessary to effect change towards TQEM, the process becomes relatively easy to accomplish (Hoyle, 2017). However, where there is inadequate knowledge it may become necessary to avail the same so as to mitigate risks attendant to failure to acquire the right knowledge. Alternatively, training programs can be employed to enlighten employees and other relevant stakeholders on the changing standards so that every party involved is on the same page with regard to quality management issues.

Technology

Adopting technology in an organization can make the transition process to new quality standards smoother. Technology provides an efficient tool foe assessment of quality risk issues in organizations with intent of suggesting improvements. In fact, the role of technology has become more integral to TQEM in organisations in light of the fourth industrial revolution. There is better decision making when technology is applied in quality audits and inspections. Incorporation of technology in environment management systems within the scope of ISO 14001 is crucial for sustainability of an organization’s business (Sanz-Calcedo et al., 2015).

Section Three

Synergies and benefits of implementing both ISO 9001 and ISO 14001

Meeting customer requirements

ISO certification has become so important that there are customers who maintain the position of not engaging in business with non-certified organizations. For this reason, many companies have become ISO 9001 compliant so as to keep exiting relationships alive or access potential ones (Priede, 2012). However, this short-term benefit should not be the only reason for acquiring certification. Certification should be implemented with long-term benefit in mind so that an organization can enjoy quality and improvements in operations and products.

Increased Revenue

The magic in certification is that it provides an organization with the opportunity to advertise their quality certification. This allows the organization to enter new markets that it was previously unable to explore due to lack of certification. Consequently, new market entry will result into increased sales and revenue for the organization as they serve or provide more products to new customers (Yin and Schmeidler, 2009). In light of the fact that a company is certified, the quality of products will satisfy customer expectations. Hence increased customer satisfaction will be good for business in terms of increased sales and less customer complaints.

Improved image and credibility

In as much as some contracts and tenders may require ISO 14001, there are stakeholders that will judge an organization based on their certification status. Today, customers and communities are aware of the effects of climate change on the environment and will be concerned as to how an organization care for the environment through its activities (Sanz-Calcedo et al., 2015). Hence, it is imperative upon an organization to not only acquire certification but also to demonstrate that it has an environmental management system to mitigate the environmental impacts. These measures will help a company maintain a good company image and good community relations.

Legal Compliance

In every sector, there are set legal requirements that an organization must satisfy to be allowed to operate and there are punitive measures for non-compliance. For any organization to effectively comply with environmental requirements, it must implement the environmental management systems flowing from ISO 14001(Sanz-Calcedo et al., 2015). Having an EMS in itself can aid in compliance with applicable environmental laws in addition to following the applicable laws. Image and credibility is sometimes perceived from a company’s record of compliance with legal, contractual, and regulatory requirements.

Cost control

Improving an environmental management system can aid a company to reduce costs incurred as result of liability for fines, reparations, and cleanups. Further, conservation of energy and resources in the organization can help in reducing costs attendant to production processes (Sanz-Calcedo et al., 2015). To avoid wastages organizations implement QMS in reducing variation and improving consistency so as to realize less waste and cost associated with the same.

Barriers to Continuous improvement process in businesses

Lack of support and leadership by Upper Management

Continuous improvement is not a onetime process and the management plays a major role in facilitation of the process. On that account, factors like lack of will, commitment, support and leadership form the management can greatly hinder the success of a continuous improvement process (Solomons and Spross, 2011). Communication is the most important tool in mitigating this challenge. Again it is key for the team leaders when introducing new standards to lead by example and show commitment in the project. Lack of the above will lead to debilitation of relationship and loss of trust.

Poor Prioritization

In any given organization, numerous areas need to be considered for continuous improvement. However, there are those areas that are pertinent to the success of a company and should be given first priority. The challenge is how to asses improvement initiatives and evaluate the same by value and priority (Robson, 2010). In certain cases, there will be disagreements about strategies to be used in improvements. Accordingly, such failure of prioritization can lead to time and wastage of resources.

Poor Employee Engagement

In enforcing change in an organization, communication and participation of employees and the management is crucial for success recipe. Communication from senior management should flow freely to the employees so that there is distortion preventing effective action on the same. Participation of employees in decisions affecting their welfare is important and if assumed, can lead to demotivation hence may cause reduced performance (Solomons and Spross, 2011). Essentially, any intended change that does not involve employees at the initial stage is bound to fail. Employees may as a result become skeptical of the intended change and even be hostile to any improvements introduced in the organization.

Poor Process Tools

A business has many options for process management software. However, the challenge is in selecting and procuring the most effective tools relevant to an organization. IT departments charged with implementing process management tools can sometimes overlook important factors relevant to the integration and adaptation of the system to the organization (Robson, 2010). The complex nature of certain soft wares can present challenges to employees who may not be adequately prepared to handle thus leading to costly trainings and wastage of time that would otherwise be spent on actual work.

Lack of professional Development

Human Development department in an organization plays an important role in ensuring that employees are ready for any changes in the industry involved. As a consequence, process improvements should be connected with the Human Development department so that it is their responsibility to prepare employees for the changes in the organization (Solomons and Spross, 2011). Where there is disconnect in the above relationship, employees may become frustrated and lose focus for continuous process improvement.

Addressing implementation barriers

Training of People

Employee training is important in ensuring human resource development and creation of value in people. An empowered workforce possesses the ability to undertake tasks with enthusiasm inspired by motivation from the management (Levine and Toffel, 2010). As a consequence, an organization should invest heavily on their workforce so as to achieve successful continuous process improvement. An appropriate educational strategy will inculcate a positive and receptive organizational culture and behaviour towards continuous process improvements.

Fostering collaboration between multiple stakeholders

To effectively implement continuous process improvements, there are stakeholders that must be involved. For highly regulated sectors stakeholder can comprise of process analysts, quality managers, Lean specialist, process owners, and trainers among others. As a result an organization may have to deal with a number of stakeholders to implement continuous improvements (Noe et al.,2017). Implementation of continuous improvements should be supported at all levels of the organization. This means managers and employees should work together across business units and departments to collectively identify areas of continuous process improvement. To successfully improve process implementation, effective communication, and involvement is required for all parties.

Integrated Approach

All employees should be made aware of the mission and vision of the organization. Equally, employees should be encouraged to participate more in process improvement decisions without leaving the whole process to the management (Friesner, Neufelder, Raisor and Bozman, 2009). Forums should be used to allow employees to express their opinions during decision-making stages. Feedback from such forums or platforms should be taken seriously and implemented where necessary. The above practices will reduce any hostility or resistance to continuous process implementation in the organization. Motivated employees are generally happier and receptive to changes in processes and better work quality.

Being customer focused

Quality is a concept that is majorly determined by customer response or perception. Therefore, customer satisfaction should be the objective of an organization dependent on customers for revenue and profits. Improved process management and better training of employees can yield improved quality. Customer feedbacks should be top priority since they contain information that is useful for improving product quality to meet the desired style (Hoyle, 2017). The manner of dealing with customers should be one the basis of continuous improvement to ensure the organization achieves a 100 percent customer satisfaction.

Conclusion

Organizational culture and behaviour indeed have a resounding impact on success of continuous improvement process within business. These impacts are both positive and negative. Nevertheless, there are ways of dealing with almost all problems in life and this scenario is not an exception. Therefore, challenges like employee engagement can adequately be addressed by practicing an open policy for employee participation. However the ultimate burden lies on the concerned organization to effectively apply the good practices while alive to the possible challenges along the way to successful process improvement.

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