Using Statistics to Improve the Competitive Position of a Small Business

Abstract

Small businesses facing increased competition are being forced to reassess and upgrade their products, their production processes, and their management methods. To improve a company's competitive position by simultaneously improving product quality, process efficiency, and management effectiveness, some small businesses are turning to statistical analysis and in-process control systems. Such methods add an additional advantage to those companies that operate principally as vendors in that in-process control is replacing acceptance sample testing as the preferred method for controlling the quality of purchased goods. Though large companies can afford to have quality control departments and employ resident statisticians, many small companies cannot. This paper demonstrates the utility of statistical methods and tells how small businesses can use them at a reasonable cost.