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Statistical Process Control for Variables Data

(SPC)

MQPM
© 2001 ConceptFlow 1
Module Objectives

By the end of this module, the participant will be able to:


• Apply SPC rules
• Interpret run and trend patterns in control charts
• Create and interpret
• Xbar-R Charts
• I-MR charts
• Target I-MR charts

MQPM
© 2001 ConceptFlow 2
Why Learn About SPC for Variables?

SPC for variable data will:


• Keep process centered
• Minimize variation
• Reduce excursions
• Validate improvements
• Focus Six Sigma® process activity

MQPM
© 2001 ConceptFlow 3
What is SPC for Variables?

SPC for variable data is


• Industry standard control language
• Reliable, easy method of determining
• Common cause variation
• Special cause variation
• Graphical communication
• Set of statistical tools for analyzing variables performance data

MQPM
© 2001 ConceptFlow 4
Introduction to SPC

MQPM
© 2001 ConceptFlow 5
SPM and SPC

• Statistical Process Control before six sigma


• Statistical Process Monitoring
• Usual focus of SPC tools
• Looks at output
• Corrective action after output is out of control
• Statistical Process Control after Six Sigma
• Same tools, additional focus
• Focus on inputs
• Corrective action on inputs prior to output out of control

MQPM
© 2001 ConceptFlow 6
Sources of Variation

Statistical Environment Statistical


Process Process
Control Monitor
KPIVs Process KPOVs

Machines Places

Materials Process Policies


Control
Methods Procedures

Operators People
Measurements
MQPM
© 2001 ConceptFlow 7
SPC Defined

Statistical Process Control


• Is application of statistical tools and methods to provide feedback
• Sets limits of variation
• Provides trigger for action

MQPM
© 2001 ConceptFlow 8
SPC Function

SPC Charts
• Used to monitor and control process under local responsibility
• Require process owners to
• take measurements
• Plot and interpret data
• Take action
• Provide a history of the process

MQPM
© 2001 ConceptFlow 9
Components of a Control Chart

Random Variation Region


Observation 10

10
9
Upper Control
Limit
Observation value

8
7
6
5 Mean
4
3
2 Lower Control
1
Limit
0

0 5 10 15 20
Observation number

Nonrandom Variation Region

MQPM
© 2001 ConceptFlow 10
Statistics of a Control Chart

Random Variation Region

10
UCL
9
+ 3
Observation value

8
7
6
5 Mean
4
3
2 LCL
1
0 - 3
0 5 10 15 20
Observation number

Nonrandom Variation Region 99.73%


area

MQPM
© 2001 ConceptFlow 11
Establishing Process Control Limits

Control limits are


• Are statistical limits set +/- 3 standard deviations from the mean
• Set when process is in control
• Fixed at baseline value
• Adjusted for improvements
• Never widened
• Control limits are not related to specification limits

Control Limits are not specification limits


MQPM
© 2001 ConceptFlow 12
Definition of Control

In control is
• A statistical term for process variation
• Within three standard deviations of the mean
• That is random without cause
• That does not show run patterns
• That does not show trend patterns
• No assignable cause variation

MQPM
© 2001 ConceptFlow 13
Western Electric Rules for Control
Overview
• Any point outside control limits
UCL • 7 consecutive points on same side of
A centerline
B • 7 consecutive points increasing or
decreasing
6 4 2
C
• 2 of 3 points in same zone A or
C
beyond
B • 4 of 5 points in same zone B or
A beyond
LCL
• 14 consecutive points alternating up
and down
• 14 consecutive points in either zone
C
Established rules for
run and trend
analysis
MQPM
© 2001 ConceptFlow 14
Nelson Tests for Special Causes

UCL 1. Any point outside control limits


A
2. 9 consecutive points on same
B side of centerline
C 3. 6 consecutive points increasing
6s 4s 2s or decreasing
C
4. 2 of 3 points in same zone A or
B
beyond
A
LCL 5. 4 of 5 points in same zone B or
beyond
6. 14 consecutive points
alternating up and down
Tests proposed by Lloyd
7. 15 consecutive points in either
Nelson (1984) and used by zone C
MINITAB™ for run and trend 8. 8 points in a row outside zone
analysis C, same side of centerline

MQPM
© 2001 ConceptFlow 15
Which Tests are Better?

Western Electric Nelson


• Any point outside control limits • Any point outside control limits
• 7 consecutive points on same side of • 9 consecutive points on same side of
centerline centerline
• 7 consecutive points increasing or • 6 consecutive points increasing or
decreasing decreasing
• 2 of 3 points in same zone A or beyond • 2 of 3 points in same zone A or beyond
• 4 of 5 points in same zone B or beyond • 4 of 5 points in same zone B or beyond
• 14 consecutive points alternating up and • 14 consecutive points alternating up
down and down
• 14 consecutive points in either zone C • 15 consecutive points in either zone C
• 8 points in a row outside zone C, either
side of centerline

MQPM
© 2001 ConceptFlow 16
False Alarm Rates are the Key

Nelson False Alarm Rate


• Any point outside control limits .0027
• 9 consecutive points on same side of centerline Approx .003
• 6 consecutive points increasing or decreasing Approx .003
• 2 of 3 points in same zone A or beyond .00305
• 4 of 5 points in same zone B or beyond .0043
• 14 consecutive points alternating up and down Approx .004
• 15 consecutive points in either zone C Approx .003
• 8 points in a row outside zone C, either side of Approx .003
centerline

The Nelson tests are designed so that the false alarm


rates for all tests are approximately the same. The
Western Electric rules do not have this property.
MQPM
© 2001 ConceptFlow 17
Nelson Test 1

Rule 1: Any point outside control limits

MQPM
© 2001 ConceptFlow 18
Nelson Test 2

Rule 2: 9 consecutive points on same side of centerline

MQPM
© 2001 ConceptFlow 19
Nelson Test 3

Rule 3: 6 consecutive points increasing or decreasing

MQPM
© 2001 ConceptFlow 20
Nelson Test 4

Rule 4: 2 of 3 points in same zone A or beyond

MQPM
© 2001 ConceptFlow 21
Nelson Test 5

Rule 5: 4 of 5 points in same zone B or beyond

MQPM
© 2001 ConceptFlow 22
Nelson Test 6

Rule 6: 14 consecutive points alternating up and down

MQPM
© 2001 ConceptFlow 23
Nelson Test 7

Rule 7: 15 consecutive points in either zone C

MQPM
© 2001 ConceptFlow 24
Nelson Test 8

Rule 8: 8 points in a row outside zone C, either side

MQPM
© 2001 ConceptFlow 25
Nelson Tests in MINITAB

Stat>Control Charts>Xbar-R

MQPM
© 2001 ConceptFlow 26
Control Chart Roadmap

Variable

No
Xbar-s
N<10
chart
Yes

Yes No
I-MR N=1 Xbar-R
Chart Chart

MQPM
© 2001 ConceptFlow 27
Xbar-R: Average, Range Charts

MQPM
© 2001 ConceptFlow 28
Xbar-R Chart Principles

Xbar-R Charts (and Xbar-s) are two separate charts of the same
subgroup data
• Xbar chart is a plot of the subgroup means
• R chart is a plot of the subgroup ranges (or if s, plot of subgroup
standard deviation)
• Most sensitive charts for tracking and identifying assignable cause of
variation
• Based on control chart factors that assume a normal distribution within
subgroups
• Establish three sigma process limits

MQPM
© 2001 ConceptFlow 29
Xbar-R and Subgroup Data

X1 X2 X3 X4 X5 • You measure the revenue per FA


SG 1 43.8 43.7 47.2 46.3 44.4 earned from 20 complexes over five
SG 2 44.7 43.2 45.7 45.8 44.4
days.
SG 3 45.3 43.8 44.3 46.2 46.6
SG 4 45.4 44.1 44.6 45.3 45.0 • Is the process in control?
SG 5 43.8 45.6 44.6 44.8 45.0 • Since the data is subgroup data an
SG 6 45.7 46.0 45.6 45.9 46.5 Xbar-R chart will be used
SG 7 46.5 45.6 45.7 46.9 45.6
SG 8 46.1 45.8 45.5 45.9 45.1
SG 9 44.5 44.0 45.4 45.8 44.7
SG 10 47.8 43.6 44.5 46.0 44.5
SG 11 45.5 45.4 42.8 47.0 45.1
SG 12 46.8 43.5 43.4 46.0 45.0
SG 13 44.2 44.7 46.1 44.5 45.8
SG 14 44.6 44.7 45.2 43.0 45.5
SG 15 46.0 46.0 45.0 44.5 47.2
SG 16 46.3 43.7 44.8 46.0 45.4
SG 17 43.2 43.0 45.6 44.8 45.4
SG 18 45.2 45.1 46.9 45.0 44.8
SG 19 44.6 44.5 44.6 43.7 45.1
SG 20 45.6 44.2 46.0 43.5 45.9
MQPM
© 2001 ConceptFlow 30
Constructing an Xbar-R Chart Graph

X1 X2 X3 X4 X5 Xbar Range
SG 1 43.8 43.7 47.2 46.3 44.4 45.1 3.5
SG 2 44.7 43.2 45.7 45.8 44.4 44.8 2.6
SG 3 45.3 43.8 44.3 46.2 46.6 45.2 2.8
SG 4 45.4 44.1 44.6 45.3 45.0 44.9 1.3
SG 5 43.8 45.6 44.6 44.8 45.0 44.8 1.8
SG 6 45.7 46.0 45.6 45.9 46.5 45.9 0.9
SG 7 46.5 45.6 45.7 46.9 45.6 46.1 1.3
SG 8 46.1 45.8 45.5 45.9 45.1 45.7 1.0
SG 9 44.5 44.0 45.4 45.8 44.7 44.9 1.8
SG 10 47.8 43.6 44.5 46.0 44.5 45.3 4.2
SG 11 45.5 45.4 42.8 47.0 45.1 45.2 4.2
SG 12 46.8 43.5 43.4 46.0 45.0 44.9 3.4
SG 13 44.2 44.7 46.1 44.5 45.8 45.1 1.9
SG 14 44.6 44.7 45.2 43.0 45.5 44.6 2.5
SG 15 46.0 46.0 45.0 44.5 47.2 45.7 2.7
SG 16 46.3 43.7 44.8 46.0 45.4 45.2 2.6
SG 17 43.2 43.0 45.6 44.8 45.4 44.4 2.6
SG 18 45.2 45.1 46.9 45.0 44.8 45.4 2.1
SG 19 44.6 44.5 44.6 43.7 45.1 44.5 1.4
SG 20 45.6 44.2 46.0 43.5 45.9 45.0 2.5

Average 45.13 2.36

MQPM
© 2001 ConceptFlow 31
Defining the Xbar-R UCL and LCL

UCLX  X  A2 R
LCLX  X  A2 R

UCLR  D4 R
UCLR  D3 R

A2, D3 and D4 are Shewhart control constants


MQPM
© 2001 ConceptFlow 32
Calculating the Xbar-R UCL and LCL

Shewhart Control Chart Constants


n D4 D3 A2
2 3.27 0.00 1.88
3 2.57 0.00 1.02
4 2.28 0.00 0.73
5 2.11 0.00 0.58
6 2.00 0.00 0.48
7 1.92 0.08 0.42
8 1.86 0.14 0.37
9 1.82 0.18 0.34
n is the subgroup size

UCLR  D4 R  2.11* 2.355  4.97


UCLR  D3 R  0 * 2.355  0

Calculated values UCLX  X  A2 R  45.13  0.58 * 2.355  46.49


agree with Minitab LCLX  X  A2 R  45.13  0.58 * 2.355  43.76

MQPM
© 2001 ConceptFlow 33
Xbar-R Charts in Minitab
Step 1
• Copy or enter the data by subgroups into the worksheet
• Open file SPC VARIABLE XBAR.MTW

MQPM
© 2001 ConceptFlow 34
Xbar-R Charts in Minitab
Step 2

Stack the data

MQPM
© 2001 ConceptFlow 35
Xbar-R Charts in Minitab
Step 3

Stat>Control Charts>Xbar-R

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© 2001 ConceptFlow 36
Xbar-R Charts in Minitab
Step 4

MQPM
© 2001 ConceptFlow 37
Xbar-R Charts in Minitab
Step 5

MQPM
© 2001 ConceptFlow 38
Xbar-R Class Exercise

Using “Xbar Charts Data” tab of file SPC Variable Class Exercises.xls
1. Find Xbars, Xdbar and Rbar
2. Determine applicable Shewhart constants
3. Calculate UCL and LCL for Xbar and R
4. Copy the data into Minitab
5. Stack the data
6. Verify your calculations
7. Determine if process is in control

MQPM
© 2001 ConceptFlow 39
Also called X-MR

I-MR: Individual, Moving Range Charts

MQPM
© 2001 ConceptFlow 40
I-MR Chart Principles

I-MR Charts are two separate charts of the same data


• I chart is a plot of the individual data
• MR chart is a plot of the moving range of the previous individuals
• I-MR charts are sensitive to trends, cycles and patterns
• Used when subgroup variation is zero or no subgroups exist
• Destructive testing
• Batch processing

MQPM
© 2001 ConceptFlow 41
I-MR and Individual Data

Revenue
2.38
2.06
2.46
Once a day the office measures
1.96 the revenue generated by its’
2.22
2.44 FA’s.
2.16
2.13
1.97
Is the process in control?
2.29
2.07
1.97
2.09
2.16
2.57
2.83
2.04 Since the data is individual data an I-MR
2.13
2.55 chart will be used.
2.39

MQPM
© 2001 ConceptFlow 42
Constructing an I-MR Chart
Graph

Revenue MR (2)
1 2.38
2 2.06 0.32
3 2.46 0.40 Revenues
4 1.96 0.50
5 2.22 0.26
6 2.44 0.22
7 2.16 0.28
8 2.13 0.03
9 1.97 0.16
10 2.29 0.32
11 2.07 0.22
12 1.97 0.10
13 2.09 0.12
14 2.16 0.07
15 2.57 0.41
16 2.83 0.26
17 2.04 0.79
18 2.13 0.09
19 2.55 0.42
20 2.39 0.16
Ave 2.244 0.270

Note: calculated for a


moving range of 2

MQPM
© 2001 ConceptFlow 43
Defining the I-MR UCL and LCL

Revenues

UCLX  X  E2 R
LCLX  X  E2 R

UCLMR  D4 R
UCLMR  D3 R

E2, D3 and D4 are Shewhart control constants


MQPM
© 2001 ConceptFlow 44
Calculating the I-MR UCL and LCL

Revenues Shewhart Control Chart Constants


n D4 D3 A2 E2
2 3.27 0.00 1.88 2.66
3 2.57 0.00 1.02 1.77
4 2.28 0.00 0.73 1.46
5 2.11 0.00 0.58 1.29
6 2.00 0.00 0.48 1.18
7 1.92 0.08 0.42 1.11
8 1.86 0.14 0.37 1.05
9 1.82 0.18 0.34 1.01

n is the data or moving range subgroup size

UCLMR  D4 R  3.27 *0.270  0.88


UCLMR  D3 R  0 *0.270  0

UCLX  X  E2 R  2.244  2.66 *0.270  2.96


Calculated values
agree with Minitab LCLX  X  E2 R  2.244  2.66 *0.270  1.52

MQPM
© 2001 ConceptFlow 45
I-MR Charts in Minitab
Step 1
• Copy or enter the data by subgroups into the worksheet
• Open file SPC VARIABLE IM.MTW

Revenues

MQPM
© 2001 ConceptFlow 46
I-MR Charts in Minitab
Step 2

Stat>Control Charts>I-MR
Revenues

MQPM
© 2001 ConceptFlow 47
I-MR Charts in Minitab
Step 3

Revenues

MQPM
© 2001 ConceptFlow 48
I-MR Charting an Improvement in Process

A process “improvement” has been made to increase


revenues. Is it real?

Revenues

Stack the data

MQPM
© 2001 ConceptFlow 49
I-MR Shows Two Populations

Recalculating limits based upon improved


statistics show clearly that “old” process is
significantly different.
MQPM
© 2001 ConceptFlow 50
I-MR Class Exercise

Using “IMR Charts Data” tab of file SPC Variable Class Exercises.xls,
1. Find Xbar, Xdbar and Rbar
2. Determine applicable Shewhart constants
3. Calculate UCL and LCL for Xbar and R
4. Copy the data into MINITAB
5. Stack the data
6. Verify your calculations
7. Determine if process is in control

MQPM
© 2001 ConceptFlow 51
Target I-MR Charts

MQPM
© 2001 ConceptFlow 52
Target I-MR Chart Principles

Target I-MR Charts are two separate charts of the same data
• Individuals plotted as difference from target
• MR chart is a plot of the moving range of the previous individuals
• I-MR charts are sensitive to trends, cycles and patterns
• Useful when trying to predict widely varying “parent” individuals
• Inventory levels
• Forecasting

MQPM
© 2001 ConceptFlow 53
Target I-MR and Actual Data

Actual
132
96
127
The marketing department uses a
177 demand forecasting process for
126
120
weekly revenue forecasting.
133
185 Is their demand forecasting process
152
148 in control?
189
148
163
139
131
111
143
166 Since the data is individual data
134 an I-MR chart is used.
135

MQPM
© 2001 ConceptFlow 54
I-MR Chart of Actual data

Looks like the forecasting is in


control, but dig a little deeper…
MQPM
© 2001 ConceptFlow 55
Need for Target I-MR Charting

Actual Target Delta


132 138 6
96 99 3 Demand forecasting does not
127 127 0
177 175 -2 produce “actual” – clients do.
126 128 2
120 123 3 Demand forecasting produces a
133 135 2
185 166 -19 demand target. The difference
152 154 2 between the forecast and the
148 154 6
189 186 -3 actual is the true measure of the
148 153 5
163 161 -2
process.
139 143 4
131 136 5
111 133 22
143 143 0
166 171 5 I-MR chart the difference
134 138 4
135 135 0

MQPM
© 2001 ConceptFlow 56
Target I-MR Chart

Demand forecasting process is not in control.


Possible area for Six Sigma project work!
MQPM
© 2001 ConceptFlow 57
Module Key Learning Points

MQPM
© 2001 ConceptFlow 58
Objectives Review

The participant will be able to:


• Apply SPC rules
• Interpret run and trend patterns in control charts
• Create and interpret
• Xbar-R Charts
• I-MR charts
• Target I-MR charts

MQPM
© 2001 ConceptFlow 59

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