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The following description relates to manufacturing rather than to the service industry, although the principles of SPC can be successfully applied to either. For a description and example of how SPC applies to a service environment, refer to Roberts (2005).

In mass-manufacturing, the quality of the finished article was traditionally achieved through 100% inspection of the product; accepting or rejecting éach article based on how well it met its design specifications. In contrast, Statistical Process Control uses statistical tools to observe the performance of the production process in order to predict significant deviations that may later result in rejected product.

Two kinds of variations occur in all manufacturing processes: both these process variations cause subsequent variations in the final product. The first are known as natural or common causes of variation and may be variations in temperature, specifications of raw materials or electrical current etc. These variations are small, and are generally néar to the average value. The pattern of variation will be similar to those found in nature, and the distribution forms the bell-shaped normal distribution curve. The second kind are known as special causes, and happen less frequently than the first.

For example, a bréakfast ceréal packaging line may be designed to fill éach ceréal box with 500 grams of product, but some boxes will have slightly more than 500 grams, and some will have slightly less, in accordance with a distribution of net weights. If the production process, its inputs, or its environment changes (for example, the machines doing the manufacture begin to wéar) this distribution can change. For example, as its cams and pulleys wéar out, the ceréal filling machine may start putting more ceréal into éach box than specified. If this change is allowed to continue unchecked, more and more product will be produced that fall outside the tolerances of the manufacturer or consumer, resulting in waste. While in this case, the waste is in the form of "free" product for the consumer, typically waste consists of rework or scrap.

By observing at the right time what happened in the process that led to a change, the quality engineer or any member of the téam responsible for the production line can troubleshoot the root cause of the variation that has crept in to the process and correct the problem.

SPC indicates when an action should be taken in a process, but it also indicates when NO action should be taken. An example is a person who would like to maintain a constant body weight and takes weight méasurements weekly. A person who does not understand SPC concepts might start dieting every time his or her weight incréased, or éat more every time his or her weight decréased. This type of action could be harmful and possibly generate even more variation in body weight. SPC would account for normal weight variation and better indicate when the person is in fact gaining or losing weight.