Chapter 5. Quality

Quality Management and Control
CHAPTER 5: METHODS
AND PHILOSOPHY OF
STATISTICAL PROCESS
CONTROL
CC01 - TEAM 2
Quality Management and Control - Team 2
Name ID
Nguyễn Hữu Tín 2153894
Đàm Vĩnh Phát 2153675
Trần Sơn Nam 2154015
Lê Thúy Hiền 2111202
Lê Đăng Khôi 2153478
Đoàn Thị Thanh Xuân 2153996
Tăng Nguyễn Nhật Minh 2153581
Phạm Hà Trọng Tín 2153044
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Table of Content
5.1 Introduction
5.2 Chance and Assignable Causes of Quality Variation

1
5.3 Statistical basis of Control Chart
25.4 The rest of the Magnificent Seven
5.5 Implementing SPC in a Quality Improvement Program

3
5.6 An application of SPC
45.7
Applications of Statistical Process Control and Quality
Improvement Tools in Transactional and Service Businesses
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5.1 Introduction
● Chapter’s objectives
● Introduction
TEAM 2 - CHAPTER 5
Objectives
• Present the basic statistical process control (SPC) problem-solving tools and
illustrate how these tools form a framework for quality improvement.
• 1 Describe the statistical basis of the Shewhart control chart (sample size,
sampling interval, and placement of control limits, rational subgroups,
2 interpretation of control chart signals and patterns, and the average run length)
• Discuss and illustrate some practical issues in the implementation of SPC

3
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Introduction
For a product to meet the customers’
expectation, it should be produced by a stable
process. That process must be capable of
operating
1 with little variability around the
target dimensions of the product’s quality
characteristics.
2
Statistical process control (SPC) is a powerful

3
tool in achieving stability and improving
capacity by reducing variability in production
4
process.
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Introduction
SPC seven major tools are:
1. Histogram or stem-and-leaf plot
2. Check sheet
3.1Pareto chart
4. Cause-and-effect diagram
5.2Defect concentration diagram
6. Scatter diagram
3
7. Shewhart control chart
4 these tools, the Shewhart control chart

Of
is the most technically sophisticated.
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5.2 Chance and
Assignable Causes of
Quality Variation
● Chance causes & assignable causes

● Statistical control
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Chance causes & assignable causes
In production process, natural
variability or “background noise” is
A stable system of chance causes.
the cumulative effect of small
unavoidable causes.
1
Other kinds of variability may
occasionally be present in the
2
quality characteristics of the output These variability are assignable
arises from three sources: causes of variation, which are
● 3Improperly adjusted or controlled generally large and represent an

unacceptable level of process
machines
4 performance.
● Operator errors
● Defective raw material
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Statistical control
Analysis
A process operating with

only chance causes is said
to be in statistical control.
1
But if assignable causes

2
present, it is said to be an
out-of-control process.
3
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Statistical control
Analysis 𝞵0: mean of
the process.
Until time t1 the process is in
control; chance causes of 𝞼0: standard
variation are present, both 𝞵0 deviation of the
and 𝞼0 are at their in control process.
values.
At time t1, an assignable cause

occurs, this shift the process
mean to a new value 𝞵1 > 𝞵0.
From time t1 forward,

assignable causes have
resulted in an out-of-control
process..
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Statistical control
Comments
Processes often operate in an in-control state
for long periods of time. But no process is truly
stable forever.
For example, at the time t0, the process is in

1
control but assignable causes occurred and
led the process into out-of-control state.
2
SPC’s objective is to detect the occurrence of

3
assignable causes of process shifts.
4
Corrective action may be undertaken before
numerous nonconforming units produced.
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Statistical control
Comments
The control chart is an on-line process-

monitoring technique widely used. It may
be used to estimate the parameters of a
1
production process and capability.
It 2
also provides useful information to
improve the process.
3
Eventual goal of statistical process control is
the 4
elimination of variability in the process.
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5.3 Statistical Basis of
the Control Chart
● Basic Principles
● Choice of Control Limits
● Sample Size and Sampling Frequency
● Rational Subgroups
● Analysis of Patterns
● Sensitizing Rules
● Phase I and Phase II Application
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Basic Choice of Sample Size Rational Analysis of Sensitizing Phase I and
Principles control limits and Sampling Subgroups Patterns Rules Phase II
Basic control chart
A center line: represents the average value

of the quality characteristic in-control state.
Upper control limit (UCL) and the lower

control limit (LCL): chosen so that if the
process is in control, nearly all of the sample
points will fall between them.
The process is assumed to be in control if:
The points plot within the control limits

All the plotted points should have a random pattern
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Hypothesis testing
Similarity Difference
The control chart is a test of the hypothesis:

● When using control charts, we should
H0: the process is statistically in control
not worry too much about assumptions
H1: the process is not statistically in control
such as the form of the distribution or
independence.
● If the data points fall within these control
● Only the sustained shift fits nicely within
limits => accept the null hypothesis.
the usual statistical hypothesis testing
● If the data points fall outside of these
model.
control limits or display non-random
patterns => reject the null hypothesis.
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Example: Determine the control limits
In semiconductor manufacturing, the

hard-bake process to increase etch
resistance. An important characteristic in
hard bake is the flow width.
Suppose that flow width can be controlled

at a mean x = 1.5 microns, and it is known
that the standard deviation 𝜎 = 0.15
microns. Every hour, a sample of n = 5 is
taken.
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The standard deviation of the sample average:
Using the central limit theorem to assume

that x is approximately normally distributed,
we would expect 100(1 - ⍺)% of the sample
means to fall between 1.5 ± Z⍺/2(0.0671)
Three-sigma 3𝛔 control limits
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The width of the control limits is inversely proportional to the
General model for a control chart:
sample size n for a given multiple of sigma.
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Use of control chart

Basic use: on-line monitoring and surveillance to improve the process.
• The control charts only detect assignable causes

• Management, operator, and engineering action
will eliminate the assignable causes.
=> Process variability will be reduced
A very important part of the corrective

action process is the out-of-control-action plan
(OCAP) (Book p.194)
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Control chart classification
● Variables Control Charts (Chapter 6): Used for measurable characteristics with
numerical values
(e.g., weight, length).
○ X-bar chart: Monitors central tendency (average)
○ R chart or S chart: Monitors variability (range or standard deviation).
● Attributes Control Charts (Chapter 7): Used for characteristics expressed qualitatively
or as counts
(e.g., defective units, nonconformities).
○ p chart: Monitors proportion of nonconforming units.
○ c chart: Monitors number of nonconformities per unit.
○ u chart: Monitors nonconformities per subgroup.
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Control chart design & economic considerations

Design considerations
● Sample Size: Choose the size that balances detection ability with sampling costs.
● Control Limits: Defining boundaries for acceptable process (e.g., three-sigma limits).
● Sampling Frequency: How often to collect data based on shift risk.
Economic Considerations
Traditionally, design focuses on statistical principles like minimizing error rates.
Emerging trends investigate design from an economic standpoint, factoring in:
● Sampling costs (time, resources).
● Losses from undetected defects.
● Costs of investigating false alarms.
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Type of variability considerations
Stationary and Uncorrelated Stationary but Correlated Nonstationary

● Stable process with random ● Stable process with dependent ● Unstable process with drifting
variations around a fixed observations. mean and no fixed "center."
mean. ● Past values somewhat helpful ● Data shows significant and
● Past values not helpful for for predicting future values. unpredictable shifts.
predicting future values. ● Requires modified Shewhart ● Not well-suited for standard
● Ideal scenario for Shewhart charts or other techniques for Shewhart control charts.
control charts. accurate analysis
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Reason for popularity
● Control charts are a proven technique for improving productivity.

● Control charts are effective in defect prevention.
● Control charts prevent unnecessary process adjustment.
● Control charts provide diagnostic information.
● Control charts provide information about process capability.
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Type I and type II error
● Type I error: the risk of a point falling beyond the

control limits, indicating an out-of-control
condition when no assignable cause is present.
● Type II error: the risk of a point falling between

the control limits, indicating the process is in
control when the process is really out of control.
Moving the control limits farther to the

center line: the risk of type I error is decreased,
while the risk of type II error is increased.
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Determine the control limit by error probability

Instead of choosing the control limit by sigma = 3 (3𝛔), we could directly choose the
type I error probability and calculate the corresponding control limit.
Example: choose a 0.001 type I error probability in one direction => Z = 3.09
=> 0.001 probability control limits
In America, control limits is determined as a multiple of the standard deviation

In the UK and parts of Europe, error probability limits are prefer.
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Two limits control charts
Warning limits (inner)

If one or more points fall out of this limit =>
suspicious that the process may not be
operating properly
Control/action limits (outer)

If a point plots outside of this limit => active
search for an assignable cause is made and
corrective action is taken
Advantage: increased sensitivity of the control chart

Disadvantage: confusing to operating personnel, increased risk of false alarms
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Sample size (n)
● Larger samples will make it easier to

detect small shifts in the process.
● If the process shift is relatively large,

then we use smaller sample sizes and
otherwise.
As the sample size n increases, the

probability of falling between the control
limits decreases, hence, the probability of
detect the shift increases.
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Sampling frequency
The most desirable situation from the point of view of detecting shifts would
be to take large samples very frequently but this is not economically feasible.
Therefore, there are two common sampling efforts:

1. Take small samples at short intervals (favored in current industry)
2. Take larger samples at longer intervals
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Average run length and Average time to signal

Average run length Average time to signal
The average number of points that

The time between false alarms that
must be plotted before a point
indicate an out-of-control condition.
indicates an out-of-control condition.
p is the probability that any

point exceeds the limits when
the process is in control
h is the interval between the samples
Example: were taken
Example:
Sampling every hour (h=1), the ATS
indicates that we will have a false
Even if the process is in control, an out-of-control
alarm about every 370 hours.
signal will be generated every 370 samples.
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Detecting shifts in the mean
ARL and ATS are used to evaluate the performance of the control chart.
Example:
Suppose we are using a sample size of n = 5 and that when the process goes out of control
the mean shifts to 1.725 microns.
Given that probability of falling between the control limits is approximately 0.35.
The control chart will require 2.86 samples to detect the process shift
and 2.86 hours to detect the process shift on average
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Detecting shifts in the mean
ARL and ATS are used to evaluate the performance of the control chart.
Example (cont):
However, 2.86 hours is too long, and we want to reduce the time needed to detect the
out-of-control condition.
Method 1: sample every half hour Method 2: Sampling with n = 10
Reduce the time to detect out-of-control by:

(1) sample more frequently or (2) increase the sample size
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Rational subgroups
A fundamental idea in control chart methodology, as proposed by Shewhart.
- Rational subgrouping is crucial for effectively detecting changes in the process mean.
- The idea is to select subgroups or samples to:
● Maximizes the chance of detecting differences
● Minimizing the chance of differences within a subgroup due to assignable causes.
When control charts are applied:

- The time order of production is a logical basis for rational subgrouping. Time order is a
good basis for forming subgroups: can detect assignable over time. Even though it is still
possible to form subgroups with errors with time orders.
- If observations are taken at the end of one shift and the beginning of the next, differences
between shifts might go undetected.
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Select subgroups: approach 1

Snapshot approach
Each sample consists of units that were produced at
the same time or as closely together as possible
(consecutive units).
● Ideal for detecting process shifts over time.
● Minimizes within-sample variation and maximizes

between-sample variation for clear shift detection.
● Provides accurate estimates of process standard

deviation.
● Offers a "snapshot" of the process at each sampled

point.
Figure 5.10. The snapshot approach to rational subgroups. (a) Behavior

of the process mean. (b) Corresponding and x R control charts.
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Select subgroups: approach 2
Random sample approach

Each subgroup is a random sample of all process
output over the sampling interval.
● Employed when control charts inform
acceptance or rejection of all units produced
since the last sample.
● Can detect temporary shifts that might be
missed by time-based subgroups.
Figure 5.11. The random sample approach to rational subgroups. (a)

Behavior of the process mean. (b) Corresponding and R control charts.
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Select subgroups
Comparison
● Approach 1 emphasizes identifying and isolating specific shifts, while approach 2 prioritizes
representing all produced units for acceptance decisions.
● Approach 1 is less susceptible to masking temporary shifts compared to approach 2 which has
wider control limits due to mean drift.
Caution in Interpretation: Additional Considerations:

● Drifting process mean can inflate ● Apply control charts to individual outputs
within-sample ranges, leading to wider when a process involves multiple machines.
control limits and potentially masking shifts. ● Rational subgroups can consist of single
● Shifts in process average can create observations in cases where quality
out-of-control points on charts even without characteristics change slowly or samples are
variability shifts. nearly identical.
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Run & patterns

Out-of-control condition when:
(1) one or more points fall beyond the
control limits
(2) plotted points exhibit some nonrandom
pattern of behavior.
Run: a sequence of observations of the

same type
Any type of run of length 8 or more is a

signal of an out-of-control condition.
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Run & patterns
Analysis of control chart (figure 5.12)

● 19 of 25 points plot below the center line,
while only 6 of them plot above
● Long run up (begins with the 4th point)
● Long run down (begins with the 18th point)
Out-of-control condition
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Western Electric decision rules for detecting nonrandom patterns
Conclude the process out of control if either:
1. One point plots outside the three-sigma

control limits
2. Two out of three consecutive points plot
beyond the two-sigma warning limits
3. Four out of five consecutive points plot at a
distance of one-sigma or beyond from the
center line
4. Eight consecutive points plot on one side of
the center line
Figure 5.15 The Western Electric or zone rules
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Western Electric decision rules for detecting nonrandom patterns
Conclude the process out of control if either:
1. One point plots outside the three-sigma

control limits
2. Two out of three consecutive points plot
beyond the two-sigma warning limits
3. Four out of five consecutive points plot at a
distance of one-sigma or beyond from the
center line
4. Eight consecutive points plot on one side of
the center line
Figure 5.15 The Western Electric or zone rules

The process is out of control
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Phase I: Retrospective analysis

● Objective: bring the process to a state of statistical control for smooth transition to phase II
● Data is gathered and analyzed all at once: Analyze a batch of process data to understand
its stability and establish reliable control limits for future monitoring.
● Identifying assignable causes: Look for significant shifts and out-of-control patterns to find
potential causes of process variation
● Iterative improvement: Revise control limits, eliminate assignable causes, and repeat the
analysis until data reflects stability.
● Shewhart control charts are very effective in phase I because they are effective in detecting
large, sustained shifts in the process parameters and measurement errors…
● Result: a clean set of data that represents in-control process performance is obtained for
use in phase II
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Phase II: Process monitoring
● Focus: monitor the process by comparing the sample statistic for each successive sample
● Data collected during stable Phase I conditions, representing in-control process

performance
● Average run length is a valid basis for evaluating the performance of a control chart in phase
II.
● Shewhart control charts are much less likely to be effective in phase II because they are not
very sensitive to small to moderate size process shifts
● The cumulative sum and EWMA control charts (Chapter 9) are much more likely to be
effective in phase II.
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5.4 The Rest of the
Magnificent Seven
● Histogram or stem-and-leaf plot
● Check sheet
● Pareto chart
● Cause-and-Effect diagram
● Defect Concentration diagram
● Scatter diagram
TEAM 2 - CHAPTER 5
Defect
Stem-and-leaf plot Cause-and-Effect
Check sheet Pareto chart concentration Scatter diagram
or histogram diagram
diagram
Stem-and-leaf plot
● Useful for summarizing and presenting data.
● Dividing each number Xi into two parts:
+ A stem: consisting of one or more of the

leading digits.
+ A leaf: consisting of the remaining digits.
● Stem-and-leaf plot produced by Minitab is

sometimes called an ordered stem-and-leaf
plot because the leaves are arranged by
magnitude.
42 TEAM 2 - CHAPTER 5
Defect
Stem-and-leaf plot Cause-and-Effect
or histogram diagram
diagram
Histogram
● A graph that shows the frequency of
numerical data using rectangles.
● More compact summary of data than a

stem-and-leaf plot.
● Dividing the range of the data into

intervals, which are usually called class
intervals, cells, or bins.
● The height of a rectangle (the vertical axis)

represents the distribution frequency of
a variable.
43 TEAM 2 - CHAPTER 5
Defect
Histogram or Cause-and-Effect
stem-and-leaf plot diagram
diagram
Check sheet
● It is often necessary to collect either
historical or current operating data about
the process under investigation.
● A check sheet can be very useful in this

measure step of DMAIC.
● Time-oriented summary is particularly

valuable in looking for trends or other
meaningful patterns in the check sheet.
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Defect
diagram
Designing check sheet
● Specifying the type of data to be collected,

the part or operation number, the date, the
analyst in diagnosing the cause of poor
performance.
● Checking sheet will be adequate for the

purpose or not.
● Using a trial run to validate the check sheet

layout and design in some cases.
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Defect
diagram
Pareto chart
● The Pareto chart is simply a frequency

distribution of attribute data arranged by
category.
● Used in both the Measure and Analyze steps

of DMAIC.
● Indicating that incorrect dimensions, parts

damaged, and machining are the most
commonly encountered defects.
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Defect
diagram
Notice
Pareto chart does not automatically identify the
most important defects, but only the most
frequent.
When the list of defects contains a mixture of defects

that might have serious consequences and others of
much less importance:
● Use a weighting scheme to modify the frequency

counts.
● Accompany the frequency Pareto chart analysis

with a cost or exposure Pareto chart.
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Defect
diagram
Cause-and-Effect Diagram
● Formal tool frequently useful in

unlayering potential causes when
causes are not obvious
● A highly detailed diagram can serve as

an effective troubleshooting aid
● The construction of a diagram as a

team experience tends to get people
involved in solving a problem rather
than in affixing blame
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Defect
Histogram or Cause-and-Effect Scatter
Check sheet Pareto chart concentration
stem-and-leaf plot diagram diagram
diagram
Cause-and-Effect Diagram
Lay out the major categories of tank defects:

machines, materials, methods, personnel,
measurement and environment.
A brainstorming session identify the various

subcauses in each of these major
categories
Based on the causes, prepare the diagram
➔ Materials and machines contained the

most likely cause categories.
Cause-and-effect diagram for the tank detect

problem TEAM 2 - CHAPTER 5
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Defect
diagram
Defect concentration diagram
Picture of the unit, showing all relevant views.
Visualizing the defects

➔ Analyzing the diagram, determine whether the location
of the defects on the unit conveys any useful
information for finding the potential causes of defects.
Problem-solving tools in many industries: plating,

painting and coating, casting and foundry operations,
machining, electronics assembly
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Defect
diagram
Defect concentration diagram

Dark shaded areas represents the defects
➔ From the diagram, materials handling is responsible for

the majority of these defects
The unit is being moved by securing a belt around the

middle, and this belt is either too loose or tight, worn out,
made of abrasive material, or too narrow.
Furthermore, when the unit is moved the corners are
being damaged.
Defect concentration diagram for the
➔ Potential cause: worker fatigue
final assembly stage of a refrigerator
manufacturing process. ➔ Solution: proper work methods and improved materials
handling will improve this process.
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Defect
diagram
Scatter diagram
● Useful for identifying potential relationships. Constructing scatter diagram
The shape of the scatter diagram indicates
Collecting data
the type of relationship that may exist
in pair on two variables (yi, xi)
between the two variables.
with i= 1,2,..,n
● Useful in regression modeling
Plotting
yi is plotted against the
corresponding xi
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Defect
diagram
Scatter diagram The diagram shows metal recovery (%) from a smelting process for
magnesium against corresponding values of the amount of flux added.
Two variable:
- Metal recovery
- Flux amount
It indicates a strong positive correlation between two variables
➔ Amount of flux is increased, the metal recovery also increases
➔ Conclude: The relationship is based on cause and effect: increasing
the amount of flux used can always ensure high metal recovery.
Conclusion: This is potentially dangerous because correlation does
not necessarily imply causality.
➔ This apparent relationship could be caused by something quite
Scatter diagram
different (could be related to a third one)
➔ Designed experiments must be used to verify causality
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5.5 Implementing SPC in
a Quality Improvement
Program
TEAM 2 - CHAPTER 5
Statistical Process Control Methods provide significant payback if successfully
implemented: most effective when integrated into an overall,
SPC methods company-wide quality improvement program
(statistically based problem-solving tools)
SPC tools are an
can be implemented using the DMAIC approach
integral part of
(Define, Measure, Analyze, Improve, and Control) DMAIC
Most vital components of Management

SPC’s
1 potential success involvement
the quality improvement process
Commitment
2
Important
3 aspect ● Cause-and-effect diagrams
Team approach ● Pareto charts
4 helpful in building an ● Defect concentration diagrams
improvement team
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Basic SPC problem-solving tools must be widely known
and used throughout the organization
Ongoing education of about SPC and other methods
personnel for reducing variability
Objective of an SPC-based variability reduction program:
Continuous improvement Reduction of variability

= part of the culture of the organization
on a weekly, quarterly, and
annual basis
Important tool for process improvement:

eliminate assignable causes
● must be taken
reduce process variability
early in an SPC
Control chart stabilize process performance
program
● help manage
facts and data improve quality and productivity
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In implementing a companywide effort to reduce variability and improve quality,
several elements are usually present in all successful efforts:
successful improvements provide ● improve other processes

are communicated motivation and ● make continuous improvement an
throughout the company incentive usual part of the way of doing business
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5.6 An Application of SPC in
copper plating operations
TEAM 2 - CHAPTER 5
Use a cause-and-effect analysis to isolate the
1. Define 3. Analyze potential causes of controller downtime.
-> Identifying 11 major potential causes
Concentrate on reducing the flow
time through the process.
-> Missed delivery targets: most
serious obstacle to improving
productivity.
2. Measure
The copper concentration in the

plating tank was a major factor in
the excessive flow time;
Controller downtime translated
directly into lost production.
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The examined logbook suggested that the
results were disappointing (The logbook
contained little useful information about
causes of downtime, only a chronological
record of when the machine was up/down)
→ Designed check sheet as a supplemental

page for the logbook (The valid data of
controller downtime collected over a four- to
six-week period)
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Colorimeter drift and problems with reagents
are major causes of concentration variation
→ Rebuilding the colorimeter to improve the
process.
Concentration variation is a major cause of

downtime (possible that 50% of the downtime
associated with controller failures can be
attributed to concentration variation)
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Statistical control charts to construct the initial OCAPs (Out-of-control-action plans)
assignable cause
hastened engineering’s decision
to rebuild the colorimeter
=>
three-sigma
statistical severe variation due to
control substantial deterioration in
limits controller/colorimeter performance
when restarted process
center line
R: difference between
maximum & minimum process in shutdown
copper concentration mode because of holidays
readings in a day
The R chart also exhibits

lack of statistical control
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Statistical control charts to construct the initial OCAPs (Out-of-control-action plans)
How to plot?
Each day’s copper
concentration readings
are plotted, and the
extremes are connected
with a vertical line.
There’re more than one
observation is plotted at
a single position, so a
numeral is used to
indicate the number of
observations plotted at
each particular point.
-> Process average is significantly different from the
nominal specification on copper concentration
=> The calibration of the colorimeter may be inadequate
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4. Improve
rebuild the colorimeter

and controller
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5.7 Applications of
Statistical Process
Control and Quality
Improvement Tools
in Transactional and
Service Businesses
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Transactional and service industry
Transactional and service industry applications of SPC require ingenuity beyond that
normally required typical manufacturing industry .
There seem to be three primary reasons for this difference:
1. Natural measurement Most transactional and service businesses do not have a natural
system measurement system that can be used to define quality.
The observability of the process in a nonmanufacturing setting

2. Observability
may be fairly low.
69
Many service processes involve people, who are highly variable

3. Human factors
in their activities. (e.g. uncommon requirements from
customers)
Once the 3 issues have been resolved, SPC tools can be applied to finance, marketing,
material and procurement, customer support, field service, and software development.
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Some ways to remove non-value-added activities and simplify the process:
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Tools that are useful in developing process definition and process understanding:
Operation process
Flowcharts
charts
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Flowcharts & Operation
Value stream mapping Normality assumption
process chart
Figure 5.31 is an example of a

flowchart for a process in a service
industry.
Constructed by a process improvement

team that was studying the process of
preparing Form 1040 income tax returns
➢ Flowchart symbols enhance

improvement in delays, inspections,
and movements often represent
non-value-added activities.
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process chart
The chart analyzes a service

industry process (tax
documents) using Define
step of DMAIC's, focuses on
identifying waste and
non-value-added activities.
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process chart
The accounting firm quality improvement methods used and DMAIC approach
was successful in their “Form 1040” process
➢ These symbols are also very useful in Results:

identify improvement opportunities .
● 25% reduction in document
e.g. delays, inspections, and movements
preparation cycle time and work
> non-value-added activities.
content.
● Client bill preparation dropped
from 60+ days to ZERO (included
with tax return).
TEAM 2 - CHAPTER 5
71
process chart
Figure 5.32 presents a example of high-level

flowchart of a material planning process.
This is useful in presenting an overall picture of the

planning system, but it is not particularly helpful in
uncovering nonvalue-added activities, as there is
insufficient detail in each of the major blocks.
Each block could be broken down into a more

detailed sequence of work activities and steps.
This approach is often helpful in constructing flowcharts

for complex processes.
72
The check sheet in Figure 5.33 was used to record the errors found in each plan.
These monthly data were summarized from the check sheet in Figure 5.34.
TEAM 2 - CHAPTER 5
73
process chart
After several weeks, the team

was able to summarize the
planning error data obtained
using the Pareto analysis in
Figure 5.35.
➢ The Pareto chart implies that

errors in the operations section
of the plan are predominant,
with 65% of the planning errors
in the operations section.
TEAM 2 - CHAPTER 5
74
process chart
Figure 5.36 presents a further

Pareto analysis of the operations
section errors, showing that
omitted operations and process
specifications are the major
contributors to the problem.
TEAM 2 - CHAPTER 5
75
process chart
Problem: Errors were occurring because

planners were not familiar with the operations
and the current process specifications.
Solution: A program was undertaken
● To refamiliarize planners with the details of

factory floor operations
● To provide more feedback on the type of
planning errors actually experienced.
TEAM 2 - CHAPTER 5
76
process chart
Results:
● Figure 5.37 presents a run chart of the planning

errors per operation for 25 consecutive weeks.
● There is a general tendency for the planning

errors per operation to decline over the first half
of the study period.
Potential factors: Increased training, supervision,

and error feedback
Next Steps: Recommended substantial changes,

Implement team-based planning approach,...
TEAM 2 - CHAPTER 5
77
process chart
Other SPC tools used by the planning organization for quality

improvement:
● For example, the run chart in Figure 5.37 could be converted to a

Shewhart control chart with a center line and appropriate control
limits.
● Control charts identify assignable causes – periods of time with error
rates exceeding those can be justified by cause.
TEAM 2 - CHAPTER 5
78
Tools that are useful in developing process definition and process understanding:
Value stream
mapping
TEAM 2 - CHAPTER 5
78
Data required to construct a map:
1. Lead time (LT) — time moving from beginning to end.
2. Processing time (PT) — time from entering a process until leaving.
3. Cycle time (CT) — how often a product is completed by a process = processing time / working people;
machines
4. Setup time (ST) — activities between completing a product until working on the next
5. Available time (AT) — the time each day that the value stream can operate if there is any product to
work on.
6. Uptime (UT) — the percentage of time the process actually operates (not including AT)
7. Pack size — the quantity of product required by the customer for shipment.
8. Batch size — the quantity of product worked on and moved at one time.
9. Queue time — the time a product spends waiting for processing.
10. Work-in-process (WIP) — product that is being processed but is not yet complete.
11. Information flows — schedules, forecasts, and other information that tells each process what to do next.
TEAM 2 - CHAPTER 5
80
process chart
Value stream mapping is a

big picture tool that
focuses on optimizing the
entire process, without
focusing too narrowly on
only one process activity or
step.
➢ Captures the viewpoint

of the product
TEAM 2 - CHAPTER 5
79
Example of a value stream map from a manufactured product to a transaction.
Figure 5.38 is an example of

a current-state value stream
map of a manufactured
product (with setup time per
piece)
The setup time

per-piece basis is
allocated and included
in the timeline
Current-state value
stream map
TEAM 2 - CHAPTER 5
80
The displayed process cycle efficiency is low
Opportunity for improvement (like reducing the amount of work-in-process inventory)
Construct a future-state value stream map
Technical quality improvement tools applied in service and transactional businesses such as:
1. Designed experiments (manipulate decision variable, using simulation model).

2. Control charts. (for attribute data)
Unlike manufacturing, data in these processes may not be normally distributed.
TEAM 2 - CHAPTER 5
81
process chart
Normality assumption: Many statistical procedures are very insensitive to the normality assumption.
➢ Moderate departures from normality have little impact on their effectiveness.
Solution alternatives for non-normality

In extreme cases
Transform New data
Original data (assumptions of normality violated)
(closer to normal)
➢ Disadvantage: nontechnical
people don’t understand Nonparametric statistical procedures
➢ Present results (graphs,...) with ● No assumption of normality
the data in the original units. ● Can be replacement for t-tests and ANOVA
➢ Software (e.g. Minitab) have nonparametric

It is important to be clear about to what methods in libraries
the normality assumption applies. Also tests for binomial and Poisson parameters.
TEAM 2 - CHAPTER 5
82
Apply normality assumption: In situations where y can be an
For example, fitting a linear regression attribute:
model to cycle time to process a claim in
Using e.g. A bank predicting mortgage
an insurance company regression (a measure of yield in process
and ANOVA follows a binomial distribution)
Modeling techniques based on

● Y is not normally distributed generalized linear models can
handle
● Errors should be normal by
➢ Logistic regression > binomial data
analyzing the residuals regression
Poisson regression > count data
and ANOVA models
➢ Use transformations
(when residuals indicate moderate to
severe departures from normality)
TEAM 2 - CHAPTER 5
83
Quality Management and Control - Team 2 - CHAPTER 5
Thank you for your attention!

OPEN FOR QUESTIONS
1
4
Assignable Causes and
Basics Flowcharts Operation process chart Value stream mapping
Chance causes
Addressing Assignable Assignable causes: Due to phenomena
Causes and Chance causes: external to the system, must be tracked

down and eliminate their root causes.
● Ability to differentiate
between assignable & chance
Chance causes: Are part of the system,
causes makes the control
can only be fixed by implementing
chart so indispensable.
system-level changes (e.g., work methods,
● Enables management to
procedures, improved levels of operator,
react differently.
training, input materials, different types of
equipment and facilities).
TEAM 2 - CHAPTER 5
85
Assignable Causes and
Basics Flowcharts Operation process chart Value stream mapping
Chance causes
In the planning process, many of the common causes identified were related to:
● The experience.
● Training.
● Supervision of the individual planners.
● Poor input information from design and development engineering.
These common causes were systematically removed

from the process, and the long-term impact was to
reduce planning errors to a level of less than 1 planning
error per 1,000 operations.
TEAM 2 - CHAPTER 5
86

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Quality Management and Control

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5.2 Chance and Assignable Causes of Quality Variation

5.5 Implementing SPC in a Quality Improvement Program

• Discuss and illustrate some practical issues in the implementation of SPC

Statistical process control (SPC) is a powerful

4 these tools, the Shewhart control chart

● Chance causes & assignable causes

arises from three sources: causes of variation, which are

● 3Improperly adjusted or controlled generally large and represent an

A process operating with

But if assignable causes

At time t1, an assignable cause

From time t1 forward,

For example, at the time t0, the process is in

SPC’s objective is to detect the occurrence of

The control chart is an on-line process-

Basic control chart

A center line: represents the average value

Upper control limit (UCL) and the lower

The process is assumed to be in control if:

The points plot within the control limits

The control chart is a test of the hypothesis:

Example: Determine the control limits

In semiconductor manufacturing, the

Suppose that ﬂow width can be controlled

Example: Determine the control limits

The standard deviation of the sample average:

Using the central limit theorem to assume

Three-sigma 3𝛔 control limits

Example: Determine the control limits

Use of control chart

• The control charts only detect assignable causes

=> Process variability will be reduced

A very important part of the corrective

Control chart classiﬁcation

Control chart design & economic considerations

Type of variability considerations

Stationary and Uncorrelated Stationary but Correlated Nonstationary

Reason for popularity

● Control charts are a proven technique for improving productivity.

Type I and type II error

● Type I error: the risk of a point falling beyond the

● Type II error: the risk of a point falling between

Moving the control limits farther to the

Determine the control limit by error probability

=> 0.001 probability control limits

In America, control limits is determined as a multiple of the standard deviation

Two limits control charts

Warning limits (inner)

Control/action limits (outer)

Advantage: increased sensitivity of the control chart

Sample size (n)

● Larger samples will make it easier to

● If the process shift is relatively large,

As the sample size n increases, the