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Business Analysis with Microsoft® Excel, Second Edition by Conrad Carlberg

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Monitoring Through Statistical Process Control

The idea behind statistical process control (SPC) is that over a period of time you can take measurements on a process and determine whether that process is going out of control. Examples of process measurements include

  • Number of defective units in a manufacturing run

  • Average number of defects in a unit

  • Average diameter of a part that must meet a precise specification

  • Average number of errors in an invoice

  • Average length of time that customers remain on hold

  • Average available capacity of a data communications circuit

or virtually any other process that your company uses.

The key phrases here are “over time,” “average,” and “out of control.” Over time means that SPC depends on repeatedly and regularly ...

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