By

Dr. Ali Sajid

 Unfortunately,
Some Companies
worry more about
“Broken Machines”
than they do
“Broken People”.

We used to think that the Manager's Job was
to know all the answers.
 But the new manager ought to know the
questions, to be concerned about them & involve
others in finding answers.
 Today's manager needs to be More of a Facilitator
– someone skilled in “Eliciting Answers” from
others – sometimes from people, “Who do not
even know what they know”.

 J. Naisbitt & P.Aburden

A wise man learns by
the mistakes
of others,
a fool by
his own.
Latin Proverb
 "The ultimate measure
of a man is not where
he stands in
“Moments of Comfort”,
but where he
stands at times of Challenge
& Controversy."
Martin Luther King, Jr.
"Nearly all men can stand
adversity,
but if you want to
Test a Man's Character,
give him
Power.“
Abraham Lincoln
“Personality can open doors,
but only character can keep
them open.”
Elmer G. Letterman
"Our character is
what we do
when we
think no one
is
looking.”
 You can't always wait for the guys at the top.
 Every manager at every level in the organization
has an opportunity, big or small, to do
something.
 Every manager's got some sphere of autonomy.
 Don't pass the buck up line.
Bob Anderson, GE's former CEO
 Statistical Process Control
 Practical application of
Quantitative methods and
Continues to grow.
 Statistics today plays a major
Role in All Phases of Modern
Business Project management.
 Statistical Point of View
Decision making out of
Subjective autocratic decision
making
arena
by providing basis for
Objective decisions
Based on
Quantifiable facts.
This Change Provides Specific
Benefits:
 Improved process information.
 Better communication.
 Discussion based on facts.
 “Consensus for action”.
 Information for Process
Changes.
 Statistical Process Control takes Advantage of
Natural Characteristics of Any Process.
 It helps All Business Activities to Described as
Specific Processes with:
a) Known Tolerances”
b) Measurable Variances.

 Measurement of
a) “Variances”
b) “Resulting information”
Provide Basis for “Continuous Process
Improvement”.
Tools Provide Both:
A) Graphical
B) Measured representation
of “Process Data”.

Systematic Application of these Tools “Empowers

Business People” to “Control Products &
Processes” to become World-Class Competitors.
 Seven Basic tools of Statistical Process Control
1. Data Figure
2. Pareto Analysis
3. Cause-& effect analysis
4. Trend analysis
5. Histograms
6. Scatter diagrams
7. Process Control Charts
These basic tools provide for:
 Efficient Collection of Data.
 Identification of “Patterns in
data”.
 Measurement of Variability.
 Data Tables
 Provide “Systematic Method” for Collecting &
Displaying data.
 Like “Forms” designed for the Purpose of Specific
Data Collection is used where data available from
“automated media”.
 Where automatic data not
applicable Manual check sheets
are use.
 Data Figure & check sheets should
be designed to minimize need for
Complicated entries.
 Useful data Gathering should be.
a) Simple-to-understand.
b) Straight forward Tables.
 Cause-& -Effect Analysis (C & EA)
“Fishbone”
 After identification of Problem, it is

Necessary to determine its

“Cause”.
 Detailed Analysis often required

to determine “Specific “Cause &

Effect of Problem”.
This a “Diagramming
Techniques
to
Identify relationship
between “Effect & its
Causes”.
Three approaches to Cause & Effect analysis:
 Random method

 Systematic method

 Process analysis method

 Histogram-(HG)
 Graphical representation of Data as a Frequency
Distribution.
 Variable tool in evaluation of both Attribute
(pass/fail) & Variable (measurement) data.
 Offers “Quick look at data” at But don’t
“Display:
a) Variance”
b) “Trends Over Time”
 Pareto Diagram (P/D)
 Special type of Histogram Helps us to
“Identification & Prioritize” Problem Areas”.
 Pareto Diagram involve: Data collected from
Data Figure, Maintenance Data, Repair Data, Parts
Scrap Rates, Other Sources.
 By identifying types of
nonconformity from any of these
data sources.
 Pareto diagram directs attention
to the most frequently occurring
element.
 Three uses and types of Pareto
analysis
 The basic Pareto analysis
identifies the vital few
contributors that account for most
quality problems in any system.
 The comparative Pareto analysis
focuses on any number of
program options or actions.
 The weighted Pareto analysis
gives a measure of
significance to factors that
may not appear significant at
first— such additional
factors as cost, time, and
criticality.
 Scatter Diagrams
 Another pictorial representation of process
control data is the scatter plot or scatter diagram.
 A scatter diagram organizes data using two
variables: an independent variable and a
dependent variable.
Trend Analysis (T/A) is
Statistical method for
“Determining”
“Equation that best fits
data” in a “Scatter Plot”.
 Trend Analysis (T/A)
 Quantifies “Relationships of
Data”
1.Determine the Equation.
2.Measures Fit of the Equation to
Data.
 This Method also known as
“Curve fitting” or “Least
square”.
 Control Charts (C/C)
C/C focuses on:
 Prevention of Defects, Rather than their
Detection & Rejection In Business, Government
& Industry Economy, & Efficiency are always Best
served by Prevention.
A C/C tell us:
 when to look for trouble, but it can’t tell us

“Where to look”? or “What cause will be

found”?

Greatest benefits:
 It Tells “when to leave a Process Alone”.
It costs more to produce an:
Un satisfactory Product or
Service than it does to
Produce.
A Satisfactory One. Many
Costs Associated with
Producing un satisfactory
Goods/services.
These costs “Labor, Materials,
Facilities,& Loss of
Customers.
Cost of Producing a Proper
Product can be reduced
Significantly by Application
of Statistical Process
Control.
In Normal Distribution 99.73 % of all
Measurements lie within X bar plus minus 3
sigma, this is why the limits on control charts
Called “3 Sigma Limits”.
TABLE 1. ATTRIBUTES OF THE NORMAL (STANDARD)
DISTRIBUTION

Specification
Range (in ± Sigmas), Percent within Range, Defective Parts

1 68.27 317,300,000
2 95.45 400,000
3 99.73 2, 700,000
4 99.9937 63,000
5 99.999943 57
6 99. 9999998 2
Control Chart analysis determines:
1. Whether “Inherent Process Variability”
& “Process average” are at Stable Levels.
2. Whether one or both - Out of Statistical Control
(not stable).
3. Whether Appropriate Action Needs to be taken.
Another Purpose of Control Chart is
to Distinguish between Inherent,
Random Variability of a Process &
Variability attributed to an
assignable cause.
 Sources of “Random
variation” called Common
Causes Cannot be changed
readily without “Significant
Restructuring of Process”.
 Required top Management
Involvement.
 Control Chart Types
 There are two types of data, continuous and
discrete.
 There are two types of control charts: variable
charts for use with continuous data and attribute
charts for use with discrete data.
 Each type of control chart can be used with
specific types of data.
Variables charts: Control charts for variable
powerful tools can be used when
measurements from a Process are Variable.

Variable data: Diameter of a bearing, electrical

output, or Torque on a fastener.
 Attribute charts: Attribute data have only two
values (conforming/nonconforming, pass/fail,
go/no-go, present/absent), but they can still be
counted, recorded, and analyzed.
 Presence of a required label, installation of all
required fasteners Presence of solder drips.