Operations

Management
Statistical Process Control
Supplement 6
S6-1

Outline
Statistical Process Control (SPC).

Mean charts or X-Charts.

Range chart or R-Charts.

Control charts for attributes.

Managerial issues and control charts.

Acceptance Sampling.

S6-2

Statistical Process Control (SPC)

Statistical technique to identify when nonrandom variation is present in a process.
All processes are subject to variability.

Natural causes: Random variations.

Assignable causes: Correctable problems.

Machine wear, unskilled workers, poor materials.

Uses process control charts.

S6-3

Statistical Process Control Steps

Start
Take Sample
Produce Good
Provide Service

Take Samples
Create
Control Chart

Inspect Sample

Is process
in control?
Yes

No

Stop Process
Find Out Why

S6-4

Process Control Charts

Plot of Sample Data Over Time
Sample Value

80
Upper control limit

60
40
20
0

Lower control limit

13

17

Time
S6-5

21

Control Charts
Process is not in control if:

Sample is not between upper and lower control

limits.

A non-random pattern is present, even when

between upper and lower control limits.

Based on sample being normally distributed.

S6-6

Distribution of Sample Means

Mean of sample means x

x
Standard deviation of
x
the sample means
n

3 x 2 x 1 x

x 2 x 3 x

(mean)
95.5% of all x fall within 2 x
99.7% of all x fall within 3 x

S6-7

Central Limit Theorem

Central Limit Theorem
As sample size
gets
large
enough,

distribution of mean
values becomes
approximately normal
for any population
distribution.

X
X
S6-8

Control Chart Types

Control
Charts

Continuous
Numerical Data

Categorical or
Discrete Numerical
Data

Variables
Charts
R
Chart

Attributes
Charts
P
Chart

X
Chart
S6-9

C
Chart

Quality Characteristics
Variables

Attributes

Characteristics that you

measure, e.g., weight,
length.

Characteristics for which

you focus on defects.

Continuous values.

Categorical or discrete
values.

S6-10

Good or Bad.
# of defects.

X Chart
Shows sample means over time.

Monitors process average.

Example: Weigh samples of coffee.

Collect many samples, each of n bags.

Sample size = n.

Compute mean and range for each sample.

Compute upper and lower control limits (UCL, LCL).

Plot sample means and control limits.

S6-11

X Chart Control Limits -

Std. Dev. of Process Is Known

UCLx x z x

LCLx x z x

xi

x
n

i 1

n
sample mean
at time i

= known process
standard deviation
S6-12

X Chart - Example 1
Each sample is 4 measurements.
Process mean is 5 lbs.
Process standard deviation is 0.1 lbs.
Determine 3 control limits.

0.1
UCLx 5 3
5.15
4
0.1
LCLx 5 3
4.85
4
S6-13

Setting Control Limits

n=9

Hour 1
Hour Mean
Hour Mean
Sample
Weight of
1
16.1
7
15.2
Number
Oat Flakes
2
16.8
8
16.4
1
17
3
15.5
9
16.3
2
13
4
16.5
10
14.8
3
16
5
16.5
11
14.2
4
18
6
16.4
12
17.3
5
17
6
16
For 99.73% control limits, z = 3
7
15
8
17
UCLx = x + zx = 16 + 3(1/3) = 17 ozs
9
16
Mean 16.1
=
1

LCLx = x - zx
2011
Pearson

= 16 - 3(1/3) = 15 ozs

Setting Control Limits

Control Chart for
sample of 9
boxes

Variation due to
assignable
causes

Out of
control

17 = UCL

Variation due to
natural causes

16 = Mean
15 = LCL
| | | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10 11 12 Out of

Sample number
2011
Pearson

control

Variation due to
assignable
causes

X Chart Control Limits -

Std. Dev. of Process is Not Known

UCLx x A2 R

LCL x x A2 R

A2 is from Table S6.1

n
Ri
i

1
R
n

xi

i 1

sample range
at time i

sample mean
at time i
S6-16

Factors for Computing Control

Chart Limits
Sample
Size, n
2

Mean
Upper
Lower
Factor, A 2 Range, D4 Range, D3
1.880
3.268
0

1.023

2.574

0.729

2.282

0.577

2.115

0.483

2.004

0.419

1.924

0.076

0.373

1.864

0.136

0.337

1.816

0.184

10

0.308

1.777

0.223

S6-17

X Chart - Example 2
Each sample is 4 measurements.
Determine 3 control limits.
sample
1
2
3
4
5

mean
5.02
4.99
4.97
5.03
4.99

x 5.0

range.
.12
.08.
.13.
.18.
.14.

4.96, 5.03, 5.01, 5.08

R 0.13

UCLx 5 0.729 0.13 5.095

LCLx 5 0.729 0.13 4.905
S6-18

X Chart - Example 2

Sample Mean

5.1

Upper control limit

5.0
Lower control limit

4.9
Time

S6-19

Example 2 New Samples

sample
6
7
8

values
5.05, 5.00, 4.80, 4.95
5.00, 5.10, 5.10, 5.00
4.80, 5.20, 5.10, 5.00

Sample Mean

5.1

mean
4.95
5.05
5.025

range
0.25
0.10
0.40

Upper control limit

5.0
Lower control limit

4.9
Time
S6-20

Setting Control Limits

Process average x = 12 ounces
Average range R = .25
Sample size n = 5

2011
Pearson

Setting Control Limits

Process average x = 12 ounces
Average range R = .25
Sample size n = 5
UCLx

= x + A2R
= 12 + (.577)(.25)
= 12 + .144
= 12.144 ounces
From Table
S6.1

2011
Pearson

Setting Control Limits

Process average x = 12 ounces
Average range R = .25
Sample size n = 5
UCLx

LCLx

= x + A2R
= 12 + (.577)(.25)
= 12 + .144
= 12.144 ounces

UCL = 12.144

= x - A2R
= 12 - .144
= 11.857 ounces

LCL = 11.857

2011
Pearson

Mean = 12

R Chart
Shows sample ranges over time.

Sample range = largest - smallest value in sample.

Monitors process variability.

Example: Weigh samples of coffee.

Collect many samples, each of n bags.

Sample size = n.

Compute range for each sample & average range.

Compute upper and lower control limits (UCL, LCL).

Plot sample ranges and control limits.

S6-24

R Chart Control Limits

UCL R D4 R
From Table S6.1

LCL R D3R

sample range at
time i

Ri

i 1

n
S6-25

R Chart - Example 2
Each sample is 4 measurements.
Determine 3 control limits.
sample
1
2
3
4
5

mean
5.02
4.99
4.97
5.03
4.99

x 5.0

range
.12
.08
.13
.18
.14

4.96, 5.03, 5.01, 5.08

R 0.13

UCLR 2.282 0.13 0.297

LCLR 0 0.13 0
S6-26

Sample Range

R Chart - Example 2

0.3

Upper control limit

0.2
0.1
Lower control limit

0
Time

S6-27

Example 2 New Samples

Sample Range

sample
6
7
8

values
5.05, 5.00, 4.80, 4.95
5.00, 5.10, 5.10, 5.00
4.80, 5.20, 5.10, 5.00

0.3

mean
4.95
5.05
5.025

range
0.25
0.10
0.40

Upper control limit

0.2
0.1
Lower control limit

0
Time
S6-28

Control Chart Steps

Collect 20 to 25 samples of n=4 or n=5 from a
stable process & compute the mean and range.

Compute the overall mean and average range.

Calculate upper and lower control limits.

Collect new samples, and plot the means and

ranges on their respective control charts.

S6-29

Control Chart Steps - Continued

Investigate points or patterns that indicate the
process is out of control. Assign causes for
the variations.
Collect additional samples and revalidate the
control limits.

S6-30

Control Charts for Attributes

For variables that are categorical
Good/bad, yes/no,
acceptable/unacceptable

Measurement is typically
counting defectives

Charts may measure

Percent defective (p-chart)
Number of defects (c-chart)
2011
Pearson

Control Limits for p-Charts

Population will be a binomial distribution, but
applying the Central Limit Theorem allows us to
assume a normal distribution for the sample
statistics
UCLp = p + zp^

^p =

LCLp = p - zp^
where

p
z
p^
n

=
=
=
=

p(1 - p)
n

mean fraction defective in the sample

number of standard deviations
standard deviation of the sampling distribution
sample size
2011
Pearson

p-Chart for Data Entry

Sample
Number

1
2
3
4
5
6
7
8
9
10

p=

Number
of Errors

Fraction
Defective

Sample
Number

6
5
0
1
4
2
5
3
3
2

.06
.05
.00
.01
.04
.02
.05
.03
.03
.02

11
12
13
14
15
16
17
18
19
20

80
(100)(20) =

.04

^p =
2011
Pearson

Number
of Errors

6
1
8
7
5
4
11
3
0
4
Total = 80
(.04)(1 - .04)
100

Fraction
Defective

.06
.01
.08
.07
.05
.04
.11
.03
.00
.04

= .02

p-Chart for Data Entry

UCLp = p + zp^ = .04 + 3(.02) = .10

Fraction defective

LCLp = p - zp^ = .04 - 3(.02) = 0

.11
.10
.09
.08
.07
.06
.05
.04
.03
.02
.01
.00

UCLp = 0.10

p = 0.04

10

12

14

16

Sample number
2011
Pearson

| LCLp = 0.00

18 20

p-Chart for Data Entry

Fraction defective

UCLp = p + zp^ = .04 + 3(.02) = .10

.11
.10
.09
.08
.07
.06
.05
.04
.03
.02
.01
.00

Possible
LCLp = p - zp^ = .04 - 3(.02) = assignable
0
causes
present
UCLp = 0.10

p = 0.04

10

12

14

16

Sample number
2011
Pearson

| LCLp = 0.00

18 20

Control Limits for c-Charts

Population will be a Poisson distribution, but
applying the Central Limit Theorem allows us to
assume a normal distribution for the sample
statistics
UCLc = c + 3 c
where

LCLc = c - 3 c

c = mean number defective in the sample

2011
Pearson

c-Chart for Cab Company

c = 54 complaints/9 days = 6 complaints/day

LCLc = c - 3 c
=6-3 6
=0

UCLc = 13.35

14
Number defective

UCLc = c + 3 c
=6+3 6
= 13.35

12
10
8
6

c= 6

4
2
0 |
1

|
2

|
3

|
4

|
5

Day
2011
Pearson

|
6

|
7

|
8

LCLc = 0
|
9

Managerial Issues and

Control Charts
Three major management decisions:
Select points in the processes that need
SPC
Determine the appropriate charting
technique
Set clear policies and procedures
2011
Pearson

Which Control Chart to Use

Variables Data
Using an x-Chart and R-Chart
1. Observations are variables
2. Collect 20 - 25 samples of n = 4, or n = 5, or
more, each from a stable process and
compute the mean for the x-chart and
range for the R-chart
3. Track samples of n observations each.

Table S6.3

2011
Pearson

Which Control Chart to Use

Attribute Data
Using the p-Chart
1. Observations are attributes that can be
categorized as good or bad (or passfail,
or functionalbroken), that is, in two
states.
2. We deal with fraction, proportion, or
percent defectives.
3. There are several samples, with many
observations in each. For example, 20
samples of n = 100 observations in each.
Table S6.3
2011
Pearson

Which Control Chart to Use

Attribute Data
Using a c-Chart
1. Observations are attributes whose defects
per unit of output can be counted.
2. We deal with the number counted, which is
a small part of the possible occurrences.
3. Defects may be: number of blemishes on a
desk; complaints in a day; crimes in a
year; broken seats in a stadium; typos in a
chapter of this text; or flaws in a bolt of
cloth.
Table S6.3
2011
Pearson

Use of Control Charts

S6-42

Acceptance Sampling
Quality testing for incoming materials or
finished goods.
Procedure:

Take one or more samples at random from a lot

(shipment) of items.

Inspect each of the items in the sample.

Decide whether to reject the whole lot based on

the inspection results.

S6-43

Acceptance Sampling
Inspecting all items is too expensive.
The larger the sample inspected:

The greater the cost for inspection.

The less likely you are to accept a bad lot or to

reject a good lot.

Key questions:

How many should be inspected in each lot?

How confident are you in the accept/reject

decision?
S6-44