TITLE- STATISTICAL PROCESS CONTROL
TITLE- STATISTICAL PROCESS CONTROL
Table of Contents
TOC o "1-2" h u 1.1 Brief history of the organization PAGEREF _Toc2391 h 31.2 Mission/Vision of the organization PAGEREF _Toc5332 h 4Mission PAGEREF _Toc8339 h 4Vision PAGEREF _Toc21152 h 41.3 Products/services at least 3 services PAGEREF _Toc23756 h 51.4 Size of the organization (sales or number of employees or number of branches or other indicators) PAGEREF _Toc15556 h 72.1 Need for a business system, process, or model PAGEREF _Toc17174 h 8Why Statistical Process Control PAGEREF _Toc6241 h 92.2 Rationale PAGEREF _Toc3817 h 9Need of implementing Statistical Process Control PAGEREF _Toc31365 h 103.1 Discuss the purpose of the selected business system, process, or model PAGEREF _Toc29385 h 12Purpose of Statistical Process Control PAGEREF _Toc7842 h 123.2 Discuss the data inputs required by the business system, process, or model PAGEREF _Toc19287 h 133.3 Discuss in detail how the data will be processed including any equipment, software that may be required if any. This includes any calculation that may be required to process the data. PAGEREF _Toc10731 h 143.4 Discuss the output information generated by the business system, process, or model PAGEREF _Toc16323 h 154 Two limitations of the business system, process, or model PAGEREF _Toc2674 h 16 Time constraints PAGEREF _Toc25333 h 17 Possibility for a Lack of Coordination PAGEREF _Toc22573 h 17 Cost implications PAGEREF _Toc17133 h 17 Quality Evaluations PAGEREF _Toc3935 h 17REFERENCES PAGEREF _Toc39 h 18
Brief history of the organizationFig 1
Skyline Rotorua is one of the best tourist attraction of New Zealand
Skyline Enterprises has been at the forefront of tourism since 1966 with operations both on and off-shore and is renowned for its innovative attitude and pioneering character. Since those small beginnings, the company has evolved via diversification and expansion, and Skyline Enterprises currently provides a wide range of tourism services both domestically and abroad. In 1985, Skyline Rotorua was first opened. Its structure and gondola facilities have just undergone a thorough refurbishment. With its postcard-perfect views, upscale eating options, and thrilling Skyline Luge rides, Rotorua has established itself as one of New Zealand's most well-known tourist destinations. In the 1970s and the first part of the 1980s, Skyline bought or built some lodging facilities (Horn, 2002).
With its roots in the cable way and lodging industries, the company made a very risky move in the middle of the 1990s, helping to establish the casino industry in New Zealand. More recently, it made a significant investment in commercial real estate and offshore luge enterprises. To keep Skyline at the top of our industry, Skyline has consistently invested in its businesses. Having said that, Skyline has been and still is a fun company that is happy to conduct fantastic New Zealand activities and give enjoyment and amusement to our millions of guests.
1.2 Mission/Vision of the organizationMission- Skyline believes in delivering the best quality experiences in leisure and entertainment. For us, this means "fulfilling our service commitment to deliver the "WOW" factor for our clients, employees, community, and shareholders." Every human has a strong urge to explore, and Skyline's mission is to fulfil that desire. With a team of explorers at its core, Skyline aims to be a travel agency unlike any other, presenting the world to you in a way you've never experienced (Fairweathe, 2002).
Skyline is known for giving the finest quality in every term from guiding tourists to providing the best activities for adventure seekers. Every human has a strong urge to explore, and Skyline Tours' mission is to fulfil that desire. Our goal is to manage trips and realize vacation expectations by providing individualized, top-notch service.
We are your one-stop shop for all your needs and entertainment thanks to our expertise in providing a wide range of services and becoming knowledgeable about the various dimensions of the travel industry. Live your dreams, then!
Vision- Our group of Skyliners make it possible to have fun. We take on the world with real joy and genuine concern, and we do everything in our power to make people smile. Our core values continue to direct us in providing the top-notch guest experience for which Skyline is renowned, making it a terrific destination to work and travel. Skyline Rotorua is dedicated to making a positive impact and securing a sustainable future for the neighbourhood, its residents, and the environment in which it operates.
1.3 Products/services at least 3 servicesSkyline has a perfect location for your conference, wedding or any public event. It has luxurious rooms, a guest house and a banquet hall for more than 350 people. Skyline provides mountain biking, zip lining, adventurous walks and many more for our thrill seekers.
Fig 2
Skyline Rotorua provides numerous adventure activities to all tourists
A gondola is one of the best services of Skyline Rotorua. Here you and your friends will be taken up to the Skyline Rotorua complex on a leisurely, picturesque journey on the 900-metre-long Doppelmayr cableway system. Sit back and enjoy the breath-taking views of Lake Rotorua, the city, and hot geothermal landscapes from one of our eight-seater Gondola cabins (Skyline Rotorua, 2022).
Fig 3
Apart from adventure activities it provides many adventure rides and food
The first all-season Gondola aided bike lift park in New Zealand is located at Skyline Rotorua, providing access to top-notch downhill mountain biking. Riders may easily access a 12-kilometre trail network at Skyline MTB Park, which has routes with different topography for all skill levels.
After that, Discover Mount Ngongotaha from a completely new perspective! With Skyline's special 400-metre twin zip-lines, you may compete against friends and family at up to 60 km/h. Feel the rush of flight as you soar meters above the treetops with Lake Rotorua as your backdrop.
Also, Skyline has special and world-class dining in their Market Kitchen Cafe and Stratosfare Restaurants all with beautiful scenery and picturesque views.
1.4 Size of the organization (sales or number of employees or number of branches or other indicators)Skyline has a total revenue of $ 117.5 million and a total of $34.9 million profit before tax.
Skyline has a total revenue of $ 117.5 million and a total of $34.9 million profit before tax. Before Covid-19 hits Skyline has a profitable business and earns good revenue. During Covid, everything shuts down and it causes a great impact on the tourism industry. But Skyline has an excellent comeback due to its popularity. They have included other activities too which attract the tourists. Skyline is gaining a profitable revenue and it is increasing day by day (Skyline Rotorua, 2022).
Skyline has 3038 employees who do their work sincerely and give productive results. Apart from these employees, other staff are also working with Skyline for support and to make it the best tourist and travel industry. Employees are friendly in nature. They guide the tourists in a friendly manner. As Skyline is known for its fun-loving experience the reason behind this is their customer.
Skyline was established in 1967 with Skyline Queenstown. And then open their sister companies Skyline Rotorua and Skyline Skyrides. Skyline Queenstown, Skyline Rotorua, Skyline Property, Christchurch Casino and Blue Peaks Lodge & Apartments are all wholly-owned New Zealand-based companies. Apart from these Skyline also has branches in various countries like- Skyline Luge Sentosa (Singapore), Skyline Luge Mont Tremblant (Canada), Skyline Luge Calgary (Canada), Skyline Luge Tongyeong (South Korea), and Skyline Luge Busan are just a few of the overseas operations (South Korea).
2.1 Need for a business system, process, or modelSkyline Rotorua faces complaints about the time duration of the trips and photos and equipment used for photos and video, from the tourists (Skyline Rotorua, 2022). After paying an average of $35for a Gondola one can enjoy it for very less time. Moreover, for the other activities, the time duration is also less. After seeing enormous complaints Skyline decided that there is a need for Statistical Process Control.
Statistical process control (SPC) is the use of statistical methodologies to manage a process or manufacturing system (SPC). Using SPC tools and techniques, you can keep an eye on process behaviour, spot internal system issues, and fix production-related issues (Mason, 2001).
Why Statistical Process ControlIt is more cost-effective to evaluate a sample of the product and use the results to forecast the characteristics of the entire batch.
It results in extremely accurate forecasts.
It's not a 100% inspection if it's 100%.
It reduces warranty claims and reworks.
SPC enhances the productivity of the business.
It increases customer satisfaction and reduces complaints.
Depth analyses of reports help to measure performance.
Implementing and studying Statistical Process Control gives the understanding to track and record data. Additionally, SPC observes and analyses the process and measures the records and performance of the organisation. Apart from this, SPC enhances the effectiveness and efficiency of the Skyline Rotorua. Uniformity is one of SPC software's main advantages. SPC assists the operators in identifying and fixing faults before they have a significant negative impact on the production processes and end products. No matter how many units are manufactured in a day, the programme ensures outstanding product uniformity.
2.2 RationaleIf Skyline Rotorua does not implement the SPC process, the number of complaints will increase day by day. With SPC techniques continuous improvement goes hand in hand.
If SPC is not applied in the organisation-
Reduction in the number of tourists and repeat customers has decreased. Also, it impacts Skyline's goodwill.
It decreases Skyline's overall profits and revenue.
We cannot record the performances of the employees and other staff of the organisation.
It impacts the overall quality and it puts pressure on the employees.
Need of implementing Statistical Process ControlReal-time SPC assists in lowering the error margin- It controls charts, allowing operators to identify and address issues before they result in more serious difficulties with processes and products since they show what's happening in a production line in real-time. By doing this, the necessity for product rework or further product expenditures to correct an offering is significantly reduced (Mason, 2001).
Access to and data exposure equalises the playing field- Operators, engineers, and managers without access to data could develop their abilities and practises solely on instinct and personal beliefs. Control charts will probably confirm what experienced industrial workers already know to be true, even though many of them have good instincts.
Enhanced Operational Effectiveness- SPC control charts graphically present the statistical data for tracking manufacturing quality. Manufacturers can test for various causes or circumstances by using their ability to detect and display any anomalous process variances.
Cost-cutting or cost-control- The production expenses can be decreased or controlled with the use of SPC software. Defects are discovered before the products are shipped or delivered by monitoring the quality of the goods. Car recalls are one of the best examples of poor SPC. Reworking autos to address the issue costs a car manufacturer hundreds of thousands of dollars. If SPC software is properly used, the issue can be located.
Customer Satisfaction- Every company strives to satisfy customers' demands by meeting (or exceeding) their expectations, earning their trust as a supplier, and developing a lasting commercial relationship. For instance, a car manufacturer needs to rely on its parts provider to provide high-quality replacement components at a reasonable rate. If a supplier occasionally sends out subpar parts, the manufacturer might go elsewhere. The supplier is guaranteed customer loyalty by adopting SPC software since the manufacturer can rely on a high-quality product (Castillo, 1996).
A reduction in manual inspections- Any faults found after the production process may lead to product waste. Once process faults have been found and fixed, you can adjust the equipment settings and make products more quickly without the need for manual checks. This is especially true for the food and beverage industry and the FMCG sector, which operate in "tightly knit supply chains" and "must demonstrate that their products exceed mandated quality requirements." This industry can gather and analyse the necessary data to increase overall manufacturing and operational efficiency as it moves from inspections to SPC.
3.1 Discuss the purpose of the selected business system, process, or modelA typical method for locating production line flaws and ensuring that the finished product falls within acceptable quality parameters is statistical process control (SPC). As its name implies, it largely relies on statistical approaches to provide you with a comprehensive picture of the present state of your production facilities. However, when used properly, it can be a very effective tool for increasing output and minimising different types of waste. It comes as no surprise that lean firms frequently employ it (Box, 2010).
Purpose of Statistical Process ControlCollection of Data- The first step is to collect all the data you'll need for statistical analysis, and owing to contemporary technology, this has many options for doing so today. It's simple to equip your entire production facility with tiny sensors that record all kinds of crucial data, which you can then channel into a node that either processes the data immediately or accumulates and aggregates it.
Setting the tolerance limit- One of the most crucial SPC ideas is control limits, which must be set at the right levels to reduce inaccurate outcomes. This will require some expertise in the services and dining facilities that Skyline provides. Skyline also needs an in-depth understanding of the machines utilised during the entire process. They may occasionally receive publicly available data for such limits from the manufacturers of various production machines, but more often than not, you will need to determine them yourself for your particular use case.
Re-evaluate the process- You'll eventually need to make some adjustments to the method you're managing your SPC, usually when the business expands and its needs alter. It's crucial to periodically review how they are gathering and analysing their data, and they should try to solicit feedback from co-workers as well. Getting as much feedback as they can on SPC is quite helpful because other members of the organisation may be able to identify nuances that are not as clear to you.
SPC provides a graphical representation of the organisation.
Skyline needs to forecast the problems and for these, monitoring and tracking the process is required which is done through SPC implementation.
3.2 Discuss the data inputs required by the business system, process, or modelAs per data, Skyline Rotorua is facing an increase in the number of complaints. Approx. 400 complaints are recorded quarterly (Amiya, 2022). Tourists complain about staff behaviour, the high cost of food and beverages, unfriendly workers, and tourists having to wait a long time for their rides. Tourists especially want the friendly behaviour of staff so it can make a memorable visit and worth the trip, and a long wait for a ride is not at all worth remembering. By applying Statistical Process Control Skyline can manage the number of complaints and solve them efficiently and effectively.
In this Skyline can use control charts, graphs and other tools to analyse the problem and control them. From the P chart Skyline can assess the ratio and percentage of complaints. And from the I chart, they monitor how many individuals are facing the same problem. From these Skyline look for the problem which has the maximum number of complaints. Also, it uses a tool stronger than a run chart to comprehend your data over time.
3.3 Discuss in detail how the data will be processed including any equipment, software that may be required if any. This includes any calculation that may be required to process the data.After data collection of Skyline Rotorua, it is analysed by their Data Analyst and Data Scientist. The data was made and presented through MS Excel. It forecasts the trends of the future and tracks complaints. Data analysts make their reports by taking the number of reports and the number of months. Reports show that there is a continuous increase in the number of complaints over time. SPC shows that Skyline does not have to cross the tolerance limit. They should not go high from the upper limit nor cross the lower limit. By analysing the reports analysts conclude that if Skyline takes the proper care of complaints and solves them as soon as possible their goodwill will not decrease (Bertsimas, 2007).
Analysts do their calculations and make the report on the following basis-
First, they calculate the Mean by the number of complaints to no of months. For this first add all the values of the number of complaints and divide the numbers of complaints.
Then calculate the Mean deviation of the number of complaints. It shows the absolute deviation of the values. Mean Deviation is calculated as-
Mean Deviation = [ |X |]/N
And after this finally, calculate the Standard Deviation. Standard Deviation is denoted as .
= (X ) 2 /n
3.4 Discuss the output information generated by the business system, process, or modelBy implementing Statistical Process Control Skyline Rotorua monitor and evaluate the number of complaints of trips and solve them effectively. The complaints are reduced. Also, the quality has improved. The statistical process control has charts that graphically represent all statistical data for tracking production efficiency. The software finds and displays any needless process differences so that manufacturers can investigate various scenarios. The statistical data provides quick analysis to establish a manufacturing benchmark, enhance the manufacturing process, identify flaws, and fix them without making assumptions or guesses.
Skyline controls its costs by implementing statistical process control. The quality of items is monitored by SPC, and flaws are found before the product is delivered. By efficiently utilising SPC, flaws can be located before the final product is delivered, lowering the cost of rework.
SPC offers other outputs too. Some of them are-
It improved reporting and analytics of the complaints.
SPC enhances the capacity to respond to new possibilities due to less software training.
Future innovation's price is dramatically reduced, as Skyline is working on other upcoming projects too.
SPC open-source code can be modified easily as per the requirements.
4. Two limitations of the business system, process, or modelAlthough SPC tracks the records, monitors and measures the performances it has some drawbacks. It cannot be used as a universal solution for all qualitative problems, statistical quality control implementation is an expensive endeavour. Also, in the lack of widespread awareness, a false sense of security is established.
Certain restrictions apply to statistical process control. It cannot predict the future because it is reliant on historical data, for starters. Additionally, it ignores the fact that every manufacturing process is unique. Additionally, the setup and maintenance can be expensive and time-consuming.
Time constraints- SPC places a strong emphasis on problem avoidance and early identification, which can help in the creation of high-quality goods. However, as it calls for more observations, it takes time to apply rigorously. Operators also have the time-consuming duty of keeping an eye on the production line and filling up charts. One must spend time training operators and educating other staff members about the programme because it must be integrated into the production system. As essential workers must attend these training sessions, this could cause downtime.
Possibility for a Lack of Coordination- Using the charts they fill out while observing the production line, operators are required under SPC to submit data regarding the process. The production team can add its implementation to their list of tasks. Additionally, although a high percentage of rejects on the production line is a sign of an uncontrolled process, this could be interpreted as a critique of a worker's ability to perform the job. Some employees may feel intimidated and anxious about their roles and be unwilling to report issues if management hasn't clearly described the role of SPC.
Cost implications- SPC implementation is an expensive process. To perform the training for your staff, you will typically need to hire an expert from a consultancy firm, and they do not come cheap. Even if you choose in-house training, you will still need to spend money on locating the required tools and equipment as well as hiring personnel with expertise in the quality function. Once implemented, you'll notice a rise in the amount of rejects on the assembly line, which results in losses.
Quality Evaluations- Typically, SPC is thought to function in a manufacturing environment where production line equipment may be assessed for compliance with process guidelines. SPC quickly identifies when quality has changed, but it does not indicate how much the defectiveness of the returned goods has increased. For instance, it does not give an integer value for the product pieces' out-of-tolerance dimensions, which would necessitate accurate measurements. Additionally, it does not specify the size and direction of corrections.
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