Opportunities in Manufacturing

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Opportunities in Manufacturing
Harlan C Meal
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Control Chart for a Process in Control Measured Diameter Inches 1. 001 1. 000 Tolerance Limit 0. 999 Tolerance Limit 10 15 20 Sequence Number of Pieces Produced Figure lb. Control Chart for Process Not in Control It is not easy to justify this investment. If one looks at the cost of the pieces produced, using conventional cost accounting data, the cost will probably be greater using the high-quality system than with the low-quality system. Even if the cost of scrap and rework is included, the c...ost reduction will not be enough to justify the investment. It appears that those who have developed quality production systems of this type have done so without benefit of economic justification. They believe that it is better to operate that way and do so as a matter of company strategy or policy.
It has been argued that it is, in the long term, economical to operate a process in control and produce no defective products or a minimum number of defects. This may very well be true if one takes into account the customer loyalty engendered by a high quality, reliable product.


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