Supply Chain Quality Management (SCQM)

Module 07

Measuring and Controlling Quality in the Supply Chains

Introduction

Supply Chain Measurement and Control

The Trade-off Between Cost and Quality

Methods for Measurement Systems Evaluation

Control Charts

Process Capability and Indexes

Self - check Questions

Summary
References
Lesson 1 of 9

Introduction

In the last few modules of this unit, we emphasised a process approach to Supply
Chain Quality Management. In module five, we used the three major activities of
process management; process design, process control and process improvement,
as a focus for optimising product and service quality. In module six, we narrowed
our scope to explore supply chain design for quality and product excellence. In
this module, we will explore the topic of measuring and controlling quality in the
supply chain to focus our learning on the two other major activities of process
management; process control and process improvement.
                                                                     Learning Outcomes 

Differentiate between the terms measure and control

Discuss the trade-off between quality and cost

Identify methods for measurement systems evaluation

Interpret a control chart and identify the various elements and patterns

Understand the benefits and approaches of a process capability study.

To help you master the content in this module, you will:

View 1 video

Read 3 articles and text

Work on 2 activities 

Test your understanding with 11 self-check questions

Lesson 2 of 9

Supply Chain Measurement and Control

Measurement for Quality Control

Throughout this SCQM unit, a recurring theme has been the striving for the
continuous improvement of supply chain processes to achieve higher levels of
quality. In our last module, we focussed on process design as a means to
achieving our quality goals. However, simply designing processes is only a part of
SCQM, equally important is the way we control and improve quality outcomes. In
the next section of the module, we will explore the importance of supply chain
measurement for quality control and process improvement.
Let’s start by reviewing a simple definition of measurement.

“Measurement is the act of collecting data to quantify the values of product,

service, process and other business metrics.”

- (Evans and Lindsay 2017, 375)

Now let’s have a look at an explanation for why measurement is important in

SCQM.

“Effective measurement is foundational to efforts to improve processes and

products. If one cannot reliably measure important characteristics of what is
being done to produce a good or a service, there is no way to tell whether design
requirements are being met and customer needs genuinely addressed. When
adequate measurement systems are in place, one can begin to collect data on
process performance.”

- (Vardeman 2016, 5)

So now we know that measurement is important in helping to quantify design

and process performance and that by collecting accurate and relevant data,
processes can be controlled and improvements made to optimise performance.
Sounds simple, just measure and control. Unfortunately, the relationship
between measurement and control is complex and sometimes ambiguous. Let’s
examine a short news article that highlights some of the difficulties involved in
measurement and control.

Why it's Hard to Measure Happiness

Click the link to read the BBC News article about the complexities of measuring.

CLICK HERE

The article that you have just read demonstrates the complexities of measuring.
Now let’s think about measurement from a manufacturing versus services
perspective. Can measurement be approached the same way for these two
business functions or do we need to distinguish between quality measures in
service organisations and those involved in the manufacturing of products? Let’s
look at some common quality measurements to find out.

Common Quality Measurements

Both product and service measures focus on the outcomes of manufacturing and
service processes. Analyse the following definitions to help distinguish any
obvious differences.

Unit of Work
–
“A unit of work is the output of a process or an individual process step. A unit of work might be a
completed product ready to be shipped to a customer, or the delivery of a package to a customer.”
(Evans and Lindsay 2017, 377)
Non-conformance
–
This is any defect or error associated with a unit of work. In manufacturing, the term defect is
usually used, while in service applications, the term error is used. Therefore, a non-conforming
unit of work is one that has one or more defects or errors (Evans and Lindsay 2017).

Conforming Unit of Work

–
 Is one that has one or more defects or errors (Evans and Lindsay 2017).

 As you can distinguish from the common quality measurements that we have
just described, both products and services are broadly measured in a similar
way. 
Measures in quality control fall into one of two broad categories.

Attribute Measures
–
“Characterise the presence or absence of non-conformances in a unit of work, or the number of
non-conformances in a unit of work. Attribute measurements are often collected by visual
inspection and expressed as proportions and counts.” (Evans and Lindsay 2017, 377)

Variable Measurements
–
“Applied to dimensional quantities such as length, weight and time, or any value on a continuous
scale of measurement. Variable measurements are usually expressed with statistical measures
such as averages and standard deviations.” (Evans and Lindsay 2017, 377)

Let’s use a simple example to show that both attribute and variable measures
can sometimes be dually applied. For example, we could determine whether a
part meets a specification of 1.60 ± 0.01 millimetre (an attribute measurement),
or measure and record the actual value of the diameter (a variable
measurement) (Evans and Lindsay 2017).

In this first part of the module, we have introduced some of the main terms and
definitions in measuring and controlling quality in supply chains. We have also
identified some of the complexities of attempting to measure and control the
quality of products and services in the supply chain. In the next part of the
module, we will discuss how the measurement and control of quality comes at a
cost for any organisation. However, these costs can be surpassed by benefits if
the right strategies to improve quality are put in place. 
Lesson 3 of 9

The Trade-off Between Cost and Quality

Cost of Quality Measures

One agreed fact around the concept of quality, is that “quality costs”. You have
probably heard this expression muttered in response to some sort of quality
failure that ’you get what you pay for’. For many years those involved in supply
chain quality management have tried to comprehend the Cost of Quality (COQ).

As supply chains seek to improve their financial performance in the highly

competitive global markets, individual businesses within supply chains are
beginning to recognise the importance of integrating business and quality
strategies. By utilising business strategy that aligns the objectives and
priorities of the business and the quality processes, there are better
opportunities to optimise quality outcomes, increase customer satisfaction and
maximise profits. 

While organisations have tried to measure and report quality costs as a basis for
process control and improvement, many have not fully understood the full range
of quality costs. Traditionally, the focus of the COQ has been limited to more
easily identified quality and inspection costs, which could be easily recorded
through financial cost accounting. More recently, terms such as finance
improvement have been applied to more accurately describe the COQ and
include a more complete supply chain focus. 

COQ is defined as;

“the sum of the costs incurred across a supply chain in preventing poor quality
of product and / or service to the final consumer, the costs incurred to ensure
and evaluate that the quality requirements are being met, and any other costs
incurred as a result of poor quality.”

- (Srivastava 2008, 193)

Supply chain strategies that consider the COQ have vital to help better
understand the trade-off between cost and quality. Businesses are considering
not just the COQ, but also the Cost of Poor Quality (COPQ). This increased
understanding of the importance of quality to business success can be
highlighted by the following points:

Quality related costs are much larger than previously acknowledged,

generally in the range of 20 to 40 percent of sales.

Quality related costs are not only related to manufacturing operations, but
can equally affect the provision of services and even other ancillary
functions such as procurement and customer service departments.

Many of the COPQ costs are avoidable.

While many organisations may have processes to measure perceived COPQ,

most do not have structured strategies to assign responsibilities to help
reduce them (Evans and Lindsay 2017).

Measuring and controlling quality in the supply chain is vital to balancing the
trade-off between cost and quality. SCQM has a vital role to play in selecting
suitable strategies to maximise opportunities for business and add value for
customers.

Let’s take some time to learn more about COQ and some SCQM strategies that
can be used to calculate the COQ for business.

Analyse the following academic journal paper which provides an historical

perspective on the development of COQ, as well as providing a case example for
determining the COQ at selected third party contract manufacturing sites of a
world leading research-based pharmaceutical company. Then answer the
questions that follow to gauge your understanding of the concepts.

Towards Estimating Cost of Quality in Supply  Chains

Click the button to read the article.

CLICK HERE

Answer the following questions that are based on the journal that you have just
analysed.

Which of the following renowned quality management professionals helped to

popularise the Cost of Quality (COQ) concept beyond the quality profession and

proposed that ‘The only performance measurement is the Cost of Quality,

which is the expense of non-conformance’.

Feigenbaum

Crosby 

Juran

Taguchi

SUBMIT
Based on the literature survey COQ has focussed on the supply chain and not

on the individual firm per se.

True

False

SUBMIT

Select the statement that is not an advantage of using a COQ SCM

measurement system.

A common unit of measure 

A quantitative unit of measure 

Can address quality, on time performance issues and cost  competitiveness.

It is historically measured at organisational level. 

Quality measured at the same level as cost.

 The data requirements of such COQ models may diminish their           potential.

Offers the additional benefit of comparisons across industries and  products

as it focusses on a common metric – money

SUBMIT

Let’s briefly summarise what we have discussed in this part of the module. There
is an inevitable trade-off between cost and quality that requires SCQM
strategies that can measure and control quality to benefit business and the
customer. Quality costs can be segregated into four major categories; prevention
costs, appraisal costs, internal failure costs and external failure costs. There are
significant advantages in establishing a COQ SCM measurement system which
involves identifying the activities that generate cost, measuring those costs and
analysing them in order to identify areas for continuous improvement to the
product or service system. 

In the next section of the module, we will identify the various methods for
measurement system evaluation. 
Lesson 4 of 9

Methods for Measurement Systems

Evaluation

In module five, achieving quality through a process focus, we identified a

symbiotic relationship between the key process activities of design, control and
improvement. We highlighted that process design, control and improvement
does not occur in isolation. Similarly, supply management professionals tasked
with measuring and controlling quality in the supply chain, should create a
systems focus for measurement, to create supply chain value. 
“The value of measuring performance arises from the use of up to date and
accurate information in SCM. Performance information helps monitor
performance, identifies weak areas, enhances employee motivation, improves
communication and leads to a better understanding of operations.”

- (Laihonen and Pekkola 2016, 5608)

Let’s think about how we can control these important interrelated processes.
First, we need to review what we learned about control in an earlier module.

“Control is the activity of ensuring conformance to requirements and taking

corrective action when necessary to correct problems and maintain stable
performance ”

- (Evans and Lindsay 2017, 221)

Secondly, we need to understand that;

“long term improvements cannot be made to a process unless the process is first
bought under control”

- (Evans and Lindsay 2017, 221)

Therefore, in order to control and improve our supply chain system we require
strategies to measure and evaluate our system. In the next part of the module,
we will identify various methods of evaluating a measurement system. 

Measurement System Evaluation

Any system for measuring quality performance requires a combination of
preferred measurement characteristics. Measurement usually involves a
combination of human senses such as – seeing, hearing, feeling, tasting, or
smelling – and other quantitative types of measurement derived from devices,
such as instruments or gauges to measure the magnitude of the characteristics.
As suggested by Pyzdek (2014), some examples of the characteristics of a good
measurement system include. 

Accuracy: It should produce a number that is ‘close’ to the actual property

being measured.

Repeatability: If the measurement system is applied repeatedly to the

same object, the measurements produced should be close to one another.

Reproducibility: The measurement system should produce the same

results when used by any similarly trained individual.

Stable: When applied to the same items the measurement system should
produce the same results in the future as it did in the past and would
provide in the present.

Linear: The measurement system should produce accurate and consistent

results over the entire range of the concern.

As well as the presence of preferred measurement characteristic any

measurement system’s evaluation requires an understanding of the
measurement aspects of accuracy and precision.

Accuracy versus Precision

Valid measurement must be both accurate and precise. The difference between
these two concepts is quite subtle, so let’s differentiate between each.

“Accuracy is defined as the difference between the true value and the observed
average of measurement. Accuracy is measured as the amount of error in a
measurement in proportion to the total size of the measurement ”

- Evans and Lindsay 2017, 386)

Therefore, one measurement is viewed as more accurate than another if it has a

smaller relative error. A lack of accuracy reflects a systematic bias in the
measurements cause by either;

1. An error in the measurement equipment e.g. a faulty tyre pressure gauge.

2. An error caused by the person using the equipment e.g. failing to correctly
seal the tyre pressure gauge on the tyre valve. 

While precision is defined as;

“the closeness of repeated measurements to each other. Precision, therefore,

relates to the variance of repeated measurements.”

- (Evans and Lindsay 2017, 386)

To summarise, a measuring instrument with a low variance is more precise than
one with a higher variance and while a measurement system may be precise,
this does always mean that it is necessarily accurate at the same time. Let’s use
a visual representation of the difference between accuracy and precision to
explain this concept more clearly. Click on the plus-sign icon in the below to read
more about each figure.

Accuracy versus Precision

 

 
 

Figure A

In Figure A, the average measurement is not close to the true value. Additionally, a
wide range of values fall around the average. Thus, the measurement is neither
accurate nor precise (Evans and Lindsay 2017, 387).
 

Figure B

In Figure B, even though the average measurement is not close to the true value, the
range of variation is small. Thus, the measurement is precise but not accurate (Evans
and Lindsay 2017, 387).
 

Figure C

In Figure C, the average value is close to the true value, so the measurement is
accurate but not precise (Evans and Lindsay 2017, 387).
 

Figure D

In Figure D, the average value is close to the true value and the distribution is narrow so
the measurement is both precise and accurate (Evans and Lindsay 2017, 387).

At the start of this section of the module, we identified that measuring quality
performance usually requires the collection of data from several sources,
especially if it involves the measurement of complex processes or whole SC
systems. We also highlighted that some measurements involve human senses
and experiences which by their very nature may be quite subjective. Other data
may be derived from measurement devices. 

While data from measuring equipment such as aircraft altimeters to measure

altitude, barometers to measure atmospheric conditions or a speed camera will
not susceptible to minimal subjective variation, they may record differences in
results due to other factors. To achieve valid measurement systems evaluation
all instruments used in measurement need to be checked to ensure they are
capable of supplying accurate and precise data. This process is known as
calibration.

“Calibration is the process of verifying the capability and performance of an item

of measuring and test equipment compared to traceable measurement
standards.”

- (Evans and Lindsay 2017, 386)

So far in this part of the module we have identified various methods for
measurement system evaluation without mentioning the key influence that we
are trying to control. Think back to earlier modules particularly those with a
process focus and answer the following question.

Dr W. Deming’s view on quality promoted a Total Quality Management

approach. Deming ultimately synthesized his 14 points for quality into four

simple elements that he called a System of Profound Knowledge. Deming

singled out one of these elements as the chief culprit of poor quality. Review

Deming’s System of Profound Knowledge, listed below and select the element

that provides the best strategy to measure and control quality in a supply chain

(Evans and Lindsay 2017, 55).

Appreciation of a system 

Knowledge of variation 

Theory of knowledge  

Knowledge of psychology

SUBMIT

Deming identified variation as the chief culprit of poor quality. He promoted

statistical methods as the primary tools used to identify and quantify variation
and championed the gaining knowledge of variation as vital to process and
system control and improvement. As the following quote from Deming
emphasises;

“Observed variation in a process output stems from the natural variation that
occurs in the output itself as well as the measurement system.”

- (Evans and Lindsay 2017, 385)

Therefore, total observed variation = true process variation PLUS variation due to
measurement.

The above equation highlights the multidimensional effect of variation

throughout supply chain systems. Keep this knowledge in mind as we progress
through the rest of this module.

Throughout this part of the module, we have identified many of the concepts
around measurement systems evaluation. We have highlighted that the value of
measurement systems evaluation is a function of up to date, valid, reliable
information in SCQM. 
We also identified that measuring quality performance requires a measurement
system containing key measurement characteristics as well as an
understanding of the difference between accuracy and precision. Finally, we
exposed the importance of knowledge of variation in measuring and controlling
quality in the supply chain. 

In the next section of the module, we will use a control chart to provide an
example of a method for measuring and controlling quality in a supply chain.
Lesson 5 of 9

Control Charts

Let’s continue our learning on measuring and controlling quality in the supply
chain by exploring the use of control charts. If you remember back to module 5,
on achieving quality through a process focus, we explained that a control chart is
a statistical tool that can be used to analyse how a process changes over time.
While control charts are a valuable tool to measure and analyse variation in
processes, the overall methodology that focuses on measuring and controlling
quality in the supply chain is known as Statistical Process Control.
Statistical Process Control
The Statistical Process Control (SPC) methodology provides the dual benefits of
not only monitoring a process to identify different causes of variation, but also
provides information about the process to help make corrective actions to
control and improve process performance. In addition, SPC also provides the
opportunity for a business to demonstrate evidence of its quality capabilities
and is particularly useful for measuring and controlling processes that are in the
early stages of quality assurance. 

Let’s look at a simple example to highlight why SPC is important for any
businesses aiming to meet customer requirements and at the same time keep
their bottom line healthy. 

A farmer produces and packages potatoes in 1 kg bags for

supermarkets. Because potatoes are sold as whole units it is very rare that a bag
of potatoes is exactly 1 kg. Therefore, the farmer sets an acceptable upper limit
and lower limit for the weighs of potato bags. The farmer and the supermarket
accept bags that weigh a maximum of 1.02kg and a minimum of 0.998 kg. If a
bag of potatoes weighs more than 1.02 kg, the farmer is “giving away”
potatoes. If a bag weighs less than 0.998 kg then customers are not getting
value for money.

As we have mentioned previously, SPC relies on the use of control charts that
were first proposed by Walter Sherwart in the 1920s. In a control chart, upper
control limits (UCL) and lower control limits (LCL) are identified to provide a high
probability (generally greater than 0.99) that data points will fall between these
limits if the process is in control (Evans and Lindsay 2017).
Let’s review an example of the structure of a control chart.

                        (Evans and Lindsay 2017, 404)

Next let’s view an example of a process that can be described as being in control.

(Evans and Lindsay 2017, 405)

As the above example illustrates, when a process is in control from a statistical

point of view, the data points on the control chart fluctuate randomly between
the control limits with no recognisable pattern. Control charts provide an easily
recognisable visual representation of the performance of a process. 

The task of analysing a control chart is a more complex challenge. This can be
done by examining the chart and comparing the information to prescribed
criteria. The most common use of a control chart is to identify if the process,
(over the time period measured) is in control (or not in control). 

In this example, the criteria for determining a control chart and therefore the
process it is measuring, could be;

No points are outside the upper and lower control limits

The number of points above and below the centre line is about the same

The data points seem to fall randomly above and below the centre line

Most points, but not all, are near the centre line and only a few are close to
the control limits. (Evans and Lindsay 2017, 404)

Control charts can offer a great deal of knowledge to help measure and control
quality in supply chain processes. One way to analyse control charts is to look
for easily identifiable patterns that can often appear. Let’s look at some typical
out of control patterns that can be observed in control charts and see how these
patterns can be interpreted to tell us about what is happening in the process.

Sudden Shift in Process Average

 (Evans and Lindsay 2017, 406)

When an unusual number of consecutive data points fall on one side of the
centre line, as highlighted in the circled area above, this is an indication that the
process average has suddenly shifted and may be the result of some change in
the process. These changes could be a new process operator, new inspector or a
new machine. This shift in process average will not identify the root cause of the
change to the process, but will act as a red flag to indicate that some sort of
follow up investigation is required. An investigation can then be undertaken to
identify the cause and develop a strategy to bring the process average back
towards the centre line. For example, this could be further operator training or
recalibration of the machine.

Another common pattern easily identified in control charts is a trend.

 (Evans and Lindsay 2017, 407)

A trend is the result of some cause that gradually affects the measurement and
causes the points on a control chart to gradually move up or down from the
centre line. 

We have learnt a little about the structure of control charts and the types of
patterns that may occur in the measurement of control processes. We will now
learn more about the two sources of variation in processes and the eight rules
that can be used to help interpret the information from control charts.

Control Chart Rules and Interpretation

Click the link to read more about Control Chart Rules and Interpretation (Bill McNeese, 2016).
 CLICK HERE

Answer the following question to test your knowledge on process variation and
control charts.

Process variation comes from two sources. Select the option with the two
correct causes.

Sporadic causes, Common causes 

Fundamentalist causes, Common causes 

Special causes, Common causes

Fundamentalist causes, Special causes

SUBMIT

A trend in a control chart always moves below the centre line?

True
 False

SUBMIT

In the final part of this module, we turn our focus to strategies that can provide
more detailed measurement and control data to help improve process quality.
Lesson 6 of 9

Process Capability and Indexes

Consider the following scenario for a manufacturing business.

In the process for the manufacturing of a steel bushing that supports a steel
shaft (see image to the right), the inside diameter of the bushing has a Lower
Specification Limit (LSL) of 1.498 mm and an Upper Specification Limit (USL) of
1.510 mm. If the diameter is too small it can be enlarged through a rework
process.  
However, if the diameter is too large, the part must be scrapped.

If the natural variation in the machining process results in diameters that

typically range from 1.495 mm to 1.515mm, we would say that the process is
not capable of meeting the specifications. 

Management would then face three possible options:

1. Measure each part and either rework or scrap nonconforming parts.

2. Develop a better process by investing in new technology, or

3. Changethe design specifications. 

(Adapted Evans and Lindsay 2017, 393)
Those involved in the design, measurement and control of supply chain
processes are often required to report on the output of the processes and to
quantify how well the process is performing. The term Process Capability is used
to indicate the performance level of the process. Process capability can be
measured by a variety of statistical tools and techniques such as: control charts,
histograms, Pareto charts, cause and effect diagrams, data distribution software
analysis and mathematical capability indices.

A process where most of the measurements fall within the specification limits is
a capable process. Understanding the capabilities of its processes is important
for any business. Especially for those seeking to design, measure, control and
continuously improve their process capabilities. Process capability focuses on;

“the ability of a process to produce output that conforms to specifications. To

evaluate it, we need the specifications for the output and statistical information
about the actual process performance.”

- (Evans and Lindsay 2017, 393)

Process Capability Study

Process capability is best measured and analysed as part of a customised
capability study to gain specific information about the performance of a process
under specified operating conditions. Some of the common questions which a
process capability study may investigate include:                           

How much variability exists in the process?

 Where is the process centred?

What proportion of output will be expected to meet specifications?

What factors contribute to variability?

(Adapted Evans and Lindsay 2017, 393)

The relationship between the process capability specifications and the natural
variation of the process is often quantified by a measure known as the process
capability index. 

Process Capability Index

The process capability index combines the process capability with the process
tolerance. Process tolerance is measured by subtracting our Lower Specification
Limit (LSL) from the Upper Specification Limits (USL). 

The process capability index can be obtained by measuring and analysing a

combination of process capability and process capability data. The analysis
involves the use of mathematical formula to calculate the process capability
indexes. This analysis can provide information that can be used to set process
objectives and to continually improve processes. 

Let’s watch a video that provides an introduction to how to use process

capability and capability index to determine if a process is producing outputs
that are either inside or outside of specifications.

Process Capability and Capability Index

Lecture
 Process Capability and Capability Index Lecture

(Joyner 2014)

Select the capability index that best matches the scenario below

Cp>1, tolerance > process capability 

Cp=1, tolerance = process capability 

Cp<1, tolerance < process capability

 SUBMIT

In this final section, we have discussed the importance of process capability and
indexes to measuring and controlling quality in the supply chain. We promoted
the use of a customised process capability study as a way of focussing process
design, measurement, control and improve the quality performance goals of the
business. 

To integrate the knowledge that we have gained throughout this module, let’s
look at a case study example of a supply chain that has performed its own
capability study to measure the behaviour of its processes and create strategies
to improve process performance and improve quality for its customers.

Process Behaviour and Capability Analysis for

Improvement of                                   Product Quality in Car-door
Glass Manufacturing

Click the button to read the article.

CLICK HERE

Complete the following self-check questions to demonstrate your learning from

the module .
Lesson 7 of 9

Self - check Questions

Question

01/04

Select the explanation that best describes variable measurement.

 Characterises the presence or absence of non-conformance in a unit of work, or the number of

non-conformances in a unit of work.

Applies to dimensional qualities such as length, weight and time or any value on a continuous
scale of measurement. 

Is the act of collecting data to quantify the values of product, service, process and other
business metrics.
Question

02/04

COQ is a measurement system that translates the language of management into

monetary language that every stakeholder can understand. COQ concepts affect operating

costs, profitability and consumer needs.

True

False
Question

03/04

Select all correct responses to the following statement. A lack of accuracy reflects a

systematic bias in the measurements cause by either;

An error in the measurement equipment. 

An error caused by the person using the equipment. 

An error related to the variance of repeated measurements.  

Question

04/04

No one table or set of rules to analyse variation in control charts can give you the reasons

for out of control points in your process. You have to use your knowledge (and that of those

closest to the process) to discover the reason.

True

False
Lesson 8 of 9

Summary

In this module, we have explored the topic of measuring and controlling quality
in the supply chain. In the first part of the module, we introduced some
important definitions and concepts in measuring and controlling quality.

Some of the complexities of measurement were then identified, as well as the

fundamental importance of measurement to improving quality in supply chain
processes.
Next, we identified the inevitable trade-off between cost and quality, discussing
the requirement for supply chain strategies that consider the cost of quality
(CoQ). We also described the measuring and controlling of quality in the supply
chain as vital to balancing the trade-off between cost and quality and identified
that SCQM has a vital role to play in selecting suitable strategies to maximise
opportunities for business and to add value for customers. 

As we progressed through the module, we identified the characteristics of a good

measurement system, observing that an understanding of these characteristics
as well as the measurement aspects of accuracy and precision was a
requirement for any measurement system evaluation.

Throughout this module we revisited a recurring theme in this SCQM unit, the
influence of variation, on this occasion, as it relates to measuring and controlling
quality in the supply chain. We identified that control charts can offer a great
deal of knowledge to help measure and control variation in supply chain
processes.

In the final part of the module, we turned our focus to strategies that can provide
more detailed measurement and analysis of data to help improve process
quality, such as the study of process capabilities and indexes.

Lastly, we used a case study to integrate the knowledge gained throughout the
module and to promote the use of a customised process capability study as a
way of focussing process design, measurement, control and to achieving the
quality performance goals of organisations.
Lesson 9 of 9

References

Evans, James R. , and William M. Lindsay. 2017. Managing for Quality and
Performance     10th ed, Managing for Quality and Performance Excellence.
Boston, Massachusetts: Cengage Learning.

Joyner, Helen. 2014. Process Capability Index Lecture. YouTube Video. 11:16.        
https://www.youtube.com/watch?v=RXsvGe-6dYw 

Laihonen, Harri, and Sanna Pekkola. 2016. "Impacts of Using a Performance

Measurement System in Supply Chain Management: A Case Study."
International Journal of Production Research 54 (18): 5607-5617. doi:
10.1080/00207543.2016.1181810.

McNeese,Bill. 2016. "Control Chart Rules and Interpretation". 2016. SPC for Excel
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