Professor S. K. Ekambaram' Expert Views on Effectiveness of Statistical Quality Control in Manufacturing As a Tool of Sound Financial Management (Financial MANAGEMENT DIGEST‪)‬

Abstract Statistical Quality Control (S.Q.C.] in manufacturing has a fine record of service to Industry; and the benefit to financial management is realised and appreciated. However, the role of S.Q.C. as an aid and tool of financial management is often not clearly indicated or assessed. The Standardisation of Quality (Q) is an essential first step and by itself is of value in increasing Volume (V) of manufacturing (and sales); the lessening of costs (C), especially the unit cost is another factor. Market price (P) can also be influenced to be satisfactory or optimum. The combination of feasible V, P, C, Q often involves financial decisions. In this, S.Q.C. is of help and provides the foundation to build other effects like Tax, Inflation and subsidy. Focus on developing countries emphasises the "image" of quality that has to be created or developed. Two cases in personal experience are considered; one is a small unit in a rural area and the other is a big manufacturing firm in a metropolitan Industrial zone. The lessons and guidelines of these are utilised to suggest acceptable hypotheses. These can be tested or verified by other experiences. These tests can lead to develop financial management (using S.Q.C. in manufacturing) to evolve operational signposts.