Part 1: Explaining Statistical Process Control

• Define statistical process control (SPC) and briefly describe the history of SPC, focusing on its origins.
• Provide an example of a control chart (either one you create or one you locate on the web) and label the parts of the chart.
• Describe the derivation of the center line and control limits on a control chart and the meaning of each.
• Explain the two types of process variationcommon cause and special cause.
• Describe at least two signals of special cause variation that might be detected in a control chart.

Part 2: Applications of SPC in Business Decision Making

• Identify at least two examples of the application of SPC in a business context. Select examples from multiple industries (e.g., manufacturing, health care, and service). For each example, describe how SPC was used to improve process, achieve better outcomes, and support sound decision making.
• For each type of process variation, describe the implications for management action.
• In conclusion, provide three potential benefits of SPC to the health care organization. Specifically, how might SPC help the company make sound decisions to the end of achieving its goals? Also, what, if any, drawbacks do you see to using SPC? Identify two possible risks of the use of SPC that the organization should be aware of.