What is clear is that the specification (and counting defects) gives no indication of process quality. As Don Wheeler states on this point "the sooner one wakes up to this fact of life the sooner one can begin to compete" (page 202, "Advanced Topics in SPC")
I agree that counting defects is not a good indication of quaity - it is an indication of non-quality. The idea is to control the process to eliminate defects.
As far a Dr. Wheeler's quote, he prefaces that with:
"World class quality has been defined by "on
target with
minimum variance" for the past thirty years."
Target meaning the value of the characteristic that has the least "loss" associated to it.
He prefaces
that with:
"'On
target' will require that one knows how to set the process aim in such a way to get the
process average to be as close to the target as possible. 'Minimum variance' will require that a process be operated in such a way that it will display a
reasonable degree of statistical control." [My emphasis]
What it leads to is if the
loss function of the process is greater than the
design specification, then you will have to develop a
process specification that is tighter than the design specification to maintain optimum output. Guess what? One of the
participants of the loss function had better be being "out of design specification," or you may not impress your customer with your statistical wiles.
The loss function and its is an attempt to tie down the process control, to eliminate the issue of
process control does not mean "in specification" because there is no relationship between specification and control limit evaluation. It has been tied down before with capability, and loss function will tie it down more.
Process improvement does not have to come from reducing the range about the
target. Again, the variance of the loss function should be considered a "total variance," and any reduction of that variance
could be a much more economically effective method for improving the loss function - such as the reduction of tool wear rate used as the key factor for continuous improvement in precision machining as it reduces the
process cost of the operator adjusting the process more frequently. Conversely, compression of control limits
increases the costs associated with operator adjusting, and it could be much greater than any other cost benefit, depending on the value of the part.
I believe it boils down to you should not use specification as a "basis", nor should you only use "
target" as a basis. You should consider both.