Chapter 17: SPC in Nonmanufacturing

In this chapter we explore the usage of SPC in nonmanufacturing organizations, whether they are for profit or not. Because the application and usage are the same, only a cursory view of the topic is covered here. For specific applications, see the selected bibliography.

OVERVIEW

In what now appears to be a classic, Schwartz (1992) argues in a very thought-provoking article that there is a definite difference between product and service and that this difference is not simply a semantic one. He claims that failure to distinguish between products and services contributes to lack of quality in both.

Schwartz argues that a product is a transformation of matter and energy into a presumably desirable form, at presumably desirable locations, at presumably desirable times. On the other hand, service is intangible, perishable, and depends on human behavior more than the product orientation.

One may argue that the two (product and service) are the same. In fact, the literature is full of individuals who have done just that. Examples include Juran and Gryma (1980, pp. 1 “3) and Feigenbaum (1951). The issue is not whether they are the same ”at least not for this chapter. For if they are the same, then the point is moot that SPC is applicable . If they are not the same, then the issue is, given some fundamental differences between the two, is there room for SPC in service?

We believe that there is plenty of room for application of SPC in all service organizations, because quality is an initiative that allows both the organization and the people in the organization to take charge of continual improvement so that they both prosper . To be sure, for that improvement to take place, however, there must be a mechanism in the organization to define and identify variation. This is where SPC comes in.

Once we can recognize that an organization has variation in its processes (whether that organization is a financial, health care, educational, governmental, or any other type of institution), one of the best ways to identify and minimize this variation is through SPC. Why do we want to reduce variation? Because variation is waste. Waste is not desirable, and therefore it must be removed.