Introduction to Operations

Management (Session 7)

Prof. (Dr.) Kaustav Kundu,

Assistant Professor (QT and OM area),
Office No. 306
 Types of causes and statistical control charts

Chance causes: These causes take place by chance or in a

random fashion as a result of the cumulative effect of
several minor causes.
Assignable causes: It refers to those changes in the quality
of the products which occur to any particular causes like
defective materials, defective labors, etc.
Statistical control charts are used to eliminate the
assignable causes.
Types of the control charts
Attributes control charts
1. Attribute data arise when we are determining only the
state of something: yes or no, accept or reject, correct or
not correct. For example, color, cleanliness.
2. Applied to data following discrete distribution.
Variables control charts
1. Variable data are measured on a continuous scale. For
example: weight can be measured in fractions or decimals.
2. Applied to data with continuous distribution.
Attribute charts

P chart: In this chart, the percent or proportion of

defectives is plotted.
C chart: In this chart, the number of defectives (per
day, per batch, per machine) is plotted. It is used
where it is difficult to identify or express single
defect.
Variable charts

X-bar chart: In this chart, the sample means are

plotted and its main objective is to control the
mean value of a variable.
R-chart: In this chart, the sample ranges are plotted
and its main objective is to control the variability
of a variable.
 p-Chart
 The proportion of defective items in the sample is determined to see if the
proportion falls within the control limits on the chart.
 The center line (CL) is determined by the mean of the samples (𝑝).
ҧ
 The upper control limit (UCL) is determined by:
UCL = 𝑝ҧ + 𝑧𝜎𝑝
LCL = 𝑝ҧ - 𝑧𝜎𝑝
where
𝑧 = the number of standard deviations from the process average
𝑝ҧ = the sample proportion defective; an estimate of the process average
𝜎𝑝 = the standard deviation of the sample proportion
The standard sample deviation is computed as
ഥ𝑝
𝜎𝑝 = (1 − 𝑝)ҧ
𝑛

where n is the sample size.

 c-Chart

 A c-chart is used when it is not possible to compute a proportion

defective
 When automobiles are inspected, the number of blemishes can be
counted for each car.
 A proportion cannot be computed, since the total number of possible
blemishes is not known.
 The center line (CL) is determined by the mean of the samples (𝑐).
ҧ
 The upper control limit (UCL) is determined by:
UCL = 𝑐ҧ + 𝑧𝜎𝑐
LCL = 𝑐ҧ - 𝑧𝜎𝑐
where 𝜎𝑐 is given by 𝑐.ҧ
 Mean (𝑥)Chart
ҧ
It can be constructed in two ways based on information
that is available for the distribution.
When standard deviation of the distribution is known:

Center line (CL) = 𝑥Ӗ

UCL = 𝑥Ӗ + 𝑧𝜎𝑥ҧ
LCL = 𝑥Ӗ - 𝑧𝜎𝑥ҧ
Where 𝑥Ӗ = process average = mean of 𝑥,ҧ
𝜎 = process standard deviation
𝜎 = standard deviation of sample means = 𝜎/ 𝑛
 Mean (𝑥)Chart
ҧ (Contd.)
When standard deviation of the distribution is not known:

Center line (CL) = 𝑥Ӗ

UCL = 𝑥Ӗ + 𝐴2 𝑅ത
LCL = 𝑥Ӗ -𝐴2 𝑅ത
Where 𝑥Ӗ = process average = mean of 𝑥,ҧ
𝑅ത = average range value
𝐴2 = Tabular value that is used to establish the control
limits.
 Range (R)Chart
 It reflects the process variability instead of the tendency toward a
mean value.

ത σ𝑅
Center line (CL) = 𝑅=
𝑘
UCL = 𝐷4 𝑅ത
LCL = 𝐷3 𝑅ത
Where 𝑅ത = range of each sample
𝑘= number of samples (subgroups)
𝐷3 and 𝐷4 are table values for determining control limits that
have been developed based on range values rather than standard
deviations.
 𝑥ҧ and R charts together
x-bar charts are used to monitor the changes in the
mean of a process
R-bar charts are used to monitor the dispersion or
variability of the process
Any system can either show acceptable central
tendencies but unacceptable variability or
It can show acceptable variability but unacceptable
central tendencies.
 Constructing an 𝑥ҧ chart
Sample k 1 2 3 4 5
1 5.02 5.01 4.94 4.99 4.96
2 5.01 5.03 5.07 4.95 4.96
3 4.99 5.00 4.93 4.92 4.99
4 5.03 4.91 5.01 4.98 4.89
5 4.95 4.92 5.03 5.05 5.01
6 4.97 5.06 5.06 4.96 5.03
7 5.05 5.01 5.10 4.96 4.99
8 5.09 5.10 5.00 4.99 5.08
9 5.14 5.10 4.99 5.08 5.09
10 5.01 4.98 5.08 5.07 4.99
From past historical data it is known that the process standard deviation is 0.8
 Control Chart Patterns
A pattern in a control chart is characterized by a sequence
of sample observations that display the same
characteristics – also called a run.
One type of pattern is a sequence of observations either
above or below the center line. For example, three values
above the center line followed by two values below the
line represent two runs of a pattern.
Another type of pattern is a sequence of sample values that
consistently go up or go down within the control limits.
 Control Chart Patterns (Contd.)
1. Eight consecutive points on
one side of the center line.
2. Eight consecutive points up
or down.
3. Fourteen points alternating
up or down.
4. Two out of three consecutive
points in zone A (on one side
of the center line)
5. Four out of five consecutive
points in zone A or B on one
https://www.google.com/search?q=zones+for+pattern+tests&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiEtYKhys7cA
side of the center line.
hUlR48KHRUQC6YQ_AUICigB&biw=1366&bih=662#imgrc=LLCAUvgFukHvpM

If any of these guidelines applied to the sample observations in a control

chart, it would imply that a nonrandom pattern exists and the cause should
be investigated. Source: :
 Process Capability
 Control limits provide a means for determining natural variation in a
production process.
 Tolerances are design specifications reflecting customer
requirements for a product.
 Process capability tells us about the capability of the process of
producing acceptable units within the design specifications
(tolerances).
 The three main elements associated with process capability are
process variability, process center and the design specifications
 If it can be determined how well a process is meeting design
specifications, and thus what the actual value of quality is, then
steps can be taken to improve quality.
 Process Capability Measures
 One measure of the capability of a process to meet design
specifications is the process capability ratio (𝐶𝑝 ).
𝑡𝑜𝑙𝑒𝑟𝑎𝑛𝑐𝑒 𝑟𝑎𝑛𝑔𝑒
𝐶𝑝 =
𝑝𝑟𝑜𝑐𝑒𝑠𝑠 𝑟𝑎𝑛𝑔𝑒
𝑢𝑝𝑝𝑒𝑟 𝑠𝑝𝑒𝑐𝑖𝑓𝑖𝑐𝑎𝑡𝑖𝑜𝑛 𝑙𝑖𝑚𝑖𝑡 −𝑙𝑜𝑤𝑒𝑟 𝑠𝑝𝑒𝑐𝑖𝑓𝑖𝑐𝑎𝑡𝑖𝑜𝑛 𝑙𝑖𝑚𝑖𝑡
=
6𝜎
 If 𝐶𝑝 < 1.0, the process is not capable of producing within the
design specifications all the time,
 If 𝐶𝑝 = 1.0, the process is capable of producing within the design
specifications most of the time,
 If 𝐶𝑝 > 1.0, the process is always capable of producing within the
design specifications
 Process Capability Measures (Contd.)
The second measure of process capability is the process
capability index (𝐶𝑝𝑘 ).
Ӗ
𝑥−𝑙𝑜𝑤𝑒𝑟 𝑠𝑝𝑒𝑐𝑖𝑓𝑖𝑐𝑎𝑡𝑖𝑜𝑛 𝑙𝑜𝑤𝑒𝑟 𝑠𝑝𝑒𝑐𝑖𝑓𝑖𝑐𝑎𝑡𝑖𝑜𝑛−𝑥Ӗ
𝐶𝑝𝑘 = minimum ,
3𝜎 3𝜎
If 𝐶𝑝𝑘 < 1.0, the process mean has moved closer to one of
the upper or lower design specifications, and it will
generate defects,
If 𝐶𝑝𝑘 > 1.0, the process is capable of meeting the design
specifications,
If 𝐶𝑝𝑘 = 𝐶𝑝 , the process mean is center at the design
target,
 Homework

 Text Book: Operations & Supply Chain Management, 8th Ed. (International Student
Version) by Roberta S. Russell and Bernard W. Taylor III ©2014 John Wiley and Sons, Inc.
(ISBN-13-9788126556823)
• Case study on “Quality Control at Korean Specialty Foods” page 115.