23 An organizational approach to effective statistical process control

M.M. BOWNESS, S. RAVINDRAN and D. LAIGHT

British Steel, Teeside works, Redcar, Cleveland, UK

1. INTRODUCTION

Statistical Process Control, SPC, is widely recognised as a valuable diagnostic and process control tool. ISO 9000:1994 requlres that suppliers identify the need for statistical techniques "for establishing, controlling and verifying process capability and product characteristics". Increasingly, SPC is a mandatory requirement of major customers.

Despi te its obvious value, the use of SPC often falls short of the true potential. This paper describes how SPC is used at British Steel, Teesside Works as a key tool in the "Total Quality" programme. The organisation required to encourage and develop the application of SPC is outlined.

2. SPC AND TOTAL QUALITY

During the 1980's, the UK steel industry was in deep recession. A key element of the recovery strategy was that Product Quality and Cost must be markedly improved. The "Total Quality" Programme, launched in 1987, addressed these needs.

All employees were trained, at this time, in the principles of "Total Quality" and the tools and techniques of problem-solving. SPC, already practised to a limited extent, was adopted as one of the main tools.

3. ORGANISATION FOR EFFECTIVE SPC

An introduction to SPC was included in the "Total Quality" training programme. It was recognised, however, that training would not in itself encourage widespread use of the technique. Even detailed training often fails to convey to people the true value and widespread applicability of SPC.

Our experience has shown that individuals are best "converted" to the SPC philosophy by personal involvement with an active scheme. The organisation which has evolved, resulting in widespread and successful use of SPC, is based on the following key elements:

• Management led • Works Steering Committee • Departmental Steering Committee

• SPC "Facilitators" SPC Scheme "OWners"

• SPC Scheme "Operators"

G. K. Kanji (ed.), Total Quality Management© Springer Science+Business Media Dordrecht 1995

198 Part Two Measuring Performance

To identify by process analysis where SPC is required. • To establish an SPC scheme to overcome an existing control/

quality problem. To encourage/assist scheme "Operators".

• To regularly review the quality of charting. To identify causes of variability and remove where possible. To terminate schemes no longer of value.

The rema~n~ng vital links in the chain are the scheme "Operators". They must receive sufficient training to understand the objectives of the scheme and be given clear guidelines to enable them to "control" the process.

3.4 Barriers to SPC

In establishing an SPC programme it is important to recognise the potential barriers. They can be listed under four categories:

Firstly, INFM syndrome - ITS NOT FOR ME:

• IT's for Technical/Metallurgical - NOT Production. IT's for Production - NOT Engineering. IT's for Management - NOT Operators/Craftsmen.

Secondly, Fear - of statistics; exposure; empowerment.

Thirdly, lack of understanding of the concept, and

Finally, I don't have the time!

3.5 OVercoming Barriers - Training

The barriers to SPC must be overcome by appropriate training and the personal involvement of "Facilitators" and "OWners". Equally the "culture" must change to encourage honest performance evaluation and recording, and to avoid "Blame".

The Training philosophy adopted at BS Teesside is geared to the requirements of the individual:

Awareness training given to all. Specific training given to scheme "Operators". Comprehensive training given to key Middle Managers and "OWners". "Facilitator" training for 2% of employees - Training to train.

3.6 SPC and Empowerment

The success of SPC relies on team working and pooling of expert knowledge, effective scheme selection and control/ responsibility being devolved to correct level. Empowerment results in action taken at the earliest opportunity leading to waste minimisation. It increases employee job satisfaction and enables Supervisors to MANAGE rather than "Fire-fight".

An organizational approach to effective statistical process control 199

3.1 The Role of Management

To promote SPC and the culture change required for effective implementation, commitment of senior management is paramount. Senior/Departmental Managers must be knowledgeable in SPC principles, encourage application of SPC, regularly review progress of schemes, recognise/overcome barriers and must acknowledge success.

In turn, this enthusiasm must be cascaded down by Middle Managers/Supervisors who must be trained to recognise where SPC can help and encouraged to use the techniques.

3.2 Works and Departmental SPC Steering Committees

An early step in the development of SPC was the formation of a Works Steering Committee. This committee is a key element in maintaining the interest and energy needed to develop widespread use of SPC on the works. The Chairman is a Senior Manager and a member of the Works Management Committee. Members are SPC "Facilitators" selected to satisfy the following criteria:

Enthusiastic practitioners A wide geographic spread A range of disciplines

People with influence (regardless of seniority) Good Communicators/Trainers

The main objectives of this committee are:

As a forum for discussion/cross-fertilisation of ideas. To plan/organise works training requirements. To provide support for "Facilitators" in problem areas .

• To coordinate publicity of successful schemes • • To provide a link between the Works Management Committee and

Departmental SPC Committees.

As the number of schemes increased, additional impetus was given by the formation of Departmental Steering Committees in each major department, chaired by the Departmental Manager.

The main objectives of these Committees are to coordinate the development of SPC in the department, to provide support and encouragement to "OWners", to review existing schemes and to brainstorm for new ideas.

3.3 SPC Facilitators/owners/Operators

SPC "Facilitators" are key individuals; they are volunteers with an enthusiasm for the technique who have been trained in all aspects of SPC. They are the "disciples" who train others and help them to establish their schemes.

Equally important are the "OWners". Each scheme is someone who is responsible for ensuring that the correctly operated. "OWners" responsibilities are:

"owned" by scheme is

200 Part Two Measuring Performance

4. THE APPLICATION OF SPC

Some ideas are presented below on the application of SPC. How, for example, do you select and operate an SPC scheme?

• Start by asking where are my problems?

- Where is my scrap coming from? - Where are my costs excessive? - What is my customer complaining about?

Involve others - brainstorm and prioritise problems.

• Prepare a "Process Flow Sheet" with the personnel involved.

• Analyse the process with SPC and other tools to identify key process stages, to identify causes of variability and to improve control of process stages.

Implement permanent solution and monitor performance.

SPC is particularly valuable when used as an "investigative" It is tool. Often processes have not been adequately defined.

important to stress here that processes subjected to SPC are not just production and engineering processes. SPC is equally applicable to administrative functions.

Several charting methods are available; it is important to select the most appropriate. The assistance of a "Facilitator" is often very valuable at this stage. Charts must be annotated by the scheme "Operator" to identify/remove special causes of variation.

Currently on Teesside Works some 250 SPC schemes are in use throughout the process route, often focusing on process improvement for cost reduction. The cost benefits from 5% of these schemes generate annual savings of £5M/annum.

5. THE IMPORTANCE OF PUBLICITY

Once SPC is established it is vital to maintain the momentum by publicising success - SUCCESS BREEDS SUCCESS. Methods adopted include highly visible charts at the workplace, Departmental newsletters and Company /Works newspapers. Recogni tion of contributors/"OWners"/"Operators" is very important.

6. SUMMARY

Statistical Process Control is a powerful tool which can greatly assist in the control of all our processes.

Training alone will not lead to widespread use of the technique. The introduction and development of SPC requires a sound organisational approach and the use of dedicated "disciples" "Facilitators" and "OWners". SPC can make a major contribution to the ongoing control of quality and cost. The organisation deployed at Teesside Works has greatly assisted in this task.