Uses of Statistics and Quality Control in Business

Introduction

Quality refers to the standard of a product or service as compared to other similar products or services. It is only through quality products and services that a company can be assured of earning satisfactory revenue through sales. Customers compare different commodities before deciding which ones to buy. They usually consider factors like product differentiation, safety, etc.

Quality control is a combination of all regular technical processes that are aimed at measuring and controlling the quality of an output. These processes take place in several stages in the development of a product. Some of them are put in place right from the manufacturing stage while others may be employed at the packaging and delivery stages.

Quality control emphasizes three main aspects namely: control elements, competence, and soft elements. To start with, control elements address issues like identification of records, job management, etc. On other and hand competence addresses issues like skills, knowledge, and qualifications. Soft elements address issues such as motivation, organization culture, quality relationship, and team spirit. A company must observe these three aspects for the sake of maintaining quality assurance since deficiency of any of these poses a great risk to the quality of the output (Wheeler & chamber, 1992). The use of quality control procedures also helps in the detection of defects in products which will then be reported to the management. In instances of defective output, the management puts in place remedial measures to ensure that production remains on course as planned.

Application of statistical quality control in business

Statistics involves collecting and organizing a given data for purposes of interpretation and focusing the future behavior or outcome. Statistics are widely used by almost all businesses. Companies use various statistical methods to predict the trend of certain variables like revenues cash flows, expected defective rates of products, provision for contingent liabilities, etc. Also, they use various statistical methods to measure the degree of risk involved in undertaking a certain project or entering a certain industry. Companies still use statistics to gauge their positions in the market while comparing themselves with their competitors (Shewhart, 1931).

Importance of statistical quality control

Statistical quality control is a way in which companies apply various statistical methods so to monitor and control various processes involved in the production of a product. The aim of this is to ensure that organizations operate at their full capacity and that the products conform to the required standards of quality, safety, quantity, etc. Companies can operate predictably through the usage of statistical quality control techniques. Companies can predict the level of output at various stages of production.

Statistical quality control can examine a process and the origin of deviations. That way, it is possible to detect weaknesses and failures in the systems and look for remedial measures promptly (Render, Stair, & Hanna, 2011). This will help in reducing the chances of passing on problems to customers. Some of the key statistical quality control tools include control charts which essentially focus on continuous improvement of certain processes. Statistical quality control also helps companies to reduce the time needed in the production of a certain product or service. Therefore, it is viewed as an important tool from both customer satisfaction and cost reduction standpoint.

Conclusion

It is only through statistical quality control that companies can produce high-quality products at minimal costs that satisfy customers’ various needs. This plays a great role in maintaining customer’s loyalty.

Reference

Render,B,Stair R., &Hanna.(2011).Quantitative Analysis for Management Edition,(11th ed.).Upper Saddle River, NewJersey: Pearson Prentice Hall.

Oakland,J. (2002) Statistical Processes Control ISBN0-7506-5766-9.

Shewhart,WA. (1931). Economic Control of Quality of Manufactured product ISBN0-87389-0ono76-0.

Wheeler, D. J., &Chambers, D. S. (1992).Understanding Statistical Processes Control ISBN0-945320.