Using SPC To Cut Down Manufacturing Costs

Manufacturing has experienced a kind of revival on a global scale. Production demands are on the rise as an empowered population is spoilt for choice.

In an arena of such competition, companies need to leverage any advantage that they may have. Statistical Process Control (SPC) represents this advantage. By reducing production variability and waste in order to drive down manufacturing costs, companies are offering higher quality products on a consistent basis.


SPC has for long been a way to deliver better value to customers and thus expand market reach and dominance. Reducing waste by monitoring processes saves time and assures customer satisfaction. In recent years, a prevailing reason to keep manufacturing costs in check is one of survival. Masses are unforgiving and a mistake is costly, both in financial and in social terms.


Statistical Process Control represents a way to prevent defective products, not simply to inspect for this waste. By putting tools to collect and analyze data on a real-time basis into those closest to the process itself, companies can determine the possibilities for product flaws before they must be scrapped as waste.


Understanding variation in processes is fundamental to product quality. Reducing this variation means that processes become more predictable—and predictability is a key to saving costs. Established statistical methods help to reduce variability and save costs. Identifying variability and identifying its source early in a process reduces scrap, rework, and waste.

About 80 percent of manufacturing costs pertain to the purchase of raw materials. The quality of this raw material is indicated by a constant Cpk , a statistical index that indicates the capability of a process to produce expected outcomes. Higher values of this constant are desirable as they indicate superior quality. If Cpk varies from one production lot to another, the performance of the products from different batches under extenuating conditions will not be consistent.

SPC software solutions help identify inferior quality in raw material batches, so these batches will not make their way into the final product. With anomalies eliminated, potential orders can be saved from cancellation and quality ensured all across the board.

In short, without real-time SPC software solutions, no manufacturing unit can hope to achieve success in national or global markets.