Statistical Process Control,

Control charts,
Process capability &
Six sigma
Variation
Three types
Within piece (ex: surface roughness)
Piece to piece (ex: light intensity of bulbs produced at same time)
Time to time (at different times of day)
Caused by
Equipment
Materials
Environment
Operator
The above account for true variation.
Reported variation due to inspection activity
(inspector, inspection equipment, environment)
Control Charts
Run Chart
Diameter

Time (Hours)
Say 5 samples average is plotted for each sample group
 Control Charts (Tracking Improvements)

UCL
UCL
UCL

LCL
LCL
Additional improvements
LCL Process centred made to the process
and stable
Process not centred
and not stable

The centre dotted line can be average of X or reference value or

Statistical Process Control
Collective set of tools & techniques used to
develop a quality assurance system when
business processes exhibit variations is known
as Statistical Process Control (SPC)
Key issues addressed in SPC based quality
assurance system:
How does one ensure that the random events are
indeed rare events?
How do we know whether the observed changes are
due to random variations or assignable causes?

5
Common & Assignable Causes
Two types of variations occur in business processes
Chance variations due to common causes
Common or chance causes are those due to random
events that cannot be controlled
Non-random variations due to assignable causes
When observed variations are not statistically found
to be due to random events, it clearly points to the
existence of assignable causes
Errors due to operator skill level differences
Changes in the operating condition of an equipment
Changes introduced in the standard operating
procedures
In the case of assignable causes, the system will
drift from desired level of performance over time 6
Causes of Variation

Common causes
Random, unavoidable sources of variation
Location

Spread

Shape

Assignable causes
Can be identified and eliminated
Change in the mean, spread, or shape
Used after a process is in statistical control

57
Assignable Causes

Average

Time
(a) Location
Effects of Assignable Causes on the Process Distribution for the Lab Analysis Process

58
Assignable Causes

Average

Time
(b) Spread

Effects of Assignable Causes on the Process Distribution for the Lab Analysis Process

59
Assignable Causes

Average

Time
(c) Shape

Effects of Assignable Causes on the Process Distribution for the Lab Analysis Process

5 10
Control Chart
A generalised representation

Upper Control Limit (UCL)

Plot of
sample data

Process Average

Lower Control Limit (LCL)

11
Control Charts

Time-ordered diagram of process

performance
Mean
Upper control limit
Lower control limit
Steps for a control chart
1. Random sample
2. Plot statistics
3. Eliminate the cause, incorporate improvements
4. Repeat the procedure

5 12
 Setting up a process control
system
Choose the characteristic
for process control

Choose the Choose an appropriate

Measurement method Sampling procedure

Choose the type of

Control Chart Calculate
control limits

Plot the data & Analyse

13
 Characteristics for process control
Some examples
Sl. No. Type of Applications
1 Component
Manufacturing
2 Final Assembly
3 Process Industries
4 Service Systems
Characteristic for Measurement
Conformance of physical measurements of
components and sub-assemblies to specifications
Conformance to operating characteristics of
machines and other resources involved in the
process
Number of defects in the product
Conformance to test specifications
Number of missing elements
Temperature, Pressure and Heat specifications
Conformance to product specifications
Conformance to equipment specifications
Vibrations and other variations in equipments and
sub-systems
Conformance to specifications of the automation &
control system
Number of defects in various business processes
Errors in processing documents
Conformance to waiting time/lead time related
specifications
14
Choosing a characteristic
Examples from service industry
How long does it take to complete the
patient admission process in a hospital?
How dissatisfied were the customers when
they stayed in a hotel for a holiday?
Does our process of understanding
customer requirements needs
improvement?
How capable are my sub-processes in
software development?

15
Control Charts

UCL

Nominal

LCL
Assignable
causes likely

1 2 3
Samples

How Control Limits Relate to the Sampling Distribution:

Observations from Three Samples

5 16
Control Charts

UCL
Variations

Nominal

LCL

Sample number

(a) Normal No action

Control Chart Examples

5 17
Control Charts

UCL
Variations

Nominal

LCL

Sample number

(b) Run Take action

Control Chart Examples

5 18
Control Charts

UCL
Variations

Nominal

LCL

Sample number

(c) Sudden change Monitor

Control Chart Examples

5 19
Control Charts

UCL
Variations

Nominal

LCL

Sample number

(d) Exceeds control limits Take action

Control Chart Examples

5 20
Measurement Methods
Attribute Based
simple clustering of the characteristic into a few categories
(such as good or bad)
Two frequently used attribute measures are:
Proportion of defects (denoted as p)
Number of defects (denoted as c)
measurements are easy to make, quick & less expensive,
but reveal very little information about the process
Variable Based
Detailed observation of the characteristic (such as length,
diameter, weight)
measurement will be expensive and more time consuming
but will provide a wealth of information about the process

21
Types of Control Charts
Variable based control chart
X bar and R Charts
Attribute based control chart
P chart
C chart

22
Steps in construction (Variable)
Subgroup size = n (each subgroup of n observations)
Subgroup measures: Mean X , Range R computed for
each subgroup R = Xmax - Xmin

Let the number of Subgroups be g ( means g

measurements are used for establishing the sample
distribution & control chart)
Mean of the sampling distribution of the subgroups

X =
X R=
R
g g

Standard deviation of the sampling distribution of the

subgroups: A2 R equals 3 X for X chart. Three standard
deviations on either side of the center line are the control limits for the
respective charts. For R chart, range used to estimate Std deviation.
UCL X = X + A2 R UCL R = D 4 R
LCL = X - A2 R LCL R = D 3 R 23
X
X bar and R Chart
Setting control limits

Computations for the X chart

Process average or center line: X =

X
g

Upper Control Limit : UCL X = X + A2 R

Lower Control Limit: LCL X = X - A2 R

Computations for the R chart

Process average or center line: R=

R
g
Upper Control Limit : UCLR = D4 R
Lower Control Limit: LCLR = D3 R (Note: Typo error in Page 442 in text book)

* The values A 2, D 3 and D 4 can be read directly from tables (see next slide)
24
 Coefficients for computing LCL and UCL
in X-bar and R charts*
Sample size (n) A2 D3 D4
2 1.880 0 3.268
3 1.023 0 2.574
4 0.729 0 2.282
5 0.577 0 2.114
6 0.483 0 2.004
7 0.419 0.076 1.924
8 0.373 0.136 1.864
9 0.337 0.184 1.816
10 0.308 0.223 1.777
Source: Juran, J.M. and F.M. Gryna, (1995), Quality Planning and Analysis, Tata McGraw-Hill, 3rd Edition, New Delhi, pp 385.

25
X bar Chart
An example

X-bar Chart
Sample Means Centre Line UCL LCL
12.50
12.49
12.48
12.47
12.46
Mean Diameter (cms)

12.45
12.44
12.43
12.42
12.41
12.40
12.39
12.38
12.37
12.36
12.35
12.34
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Sample Number 26
R Chart
An example

R Chart
Sample Range Centre Line UCL LCL
0.28
0.26
0.24
0.22
0.20
Mean Range (cms)

0.18
0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Sample Number 27
Example Trial central lines & control limits
Quality Characteristic: Shaft key way depth of 6.35 mm
Rational subgroup plan: 4 (5 subgroups per day for 5 days)
Subgroup
Number
Date Time X1 X2 X3 X4 X bar R Comment

1 23/7 8:50 35 40 32 37 6.36 0.08

2 11:30 46 37 36 41 6.40 0.10

3 1:45 34 40 34 36 6.36 0.06
4 3:45 69 64 68 59 6.65 0.10 New, temporary worker
5 4:20 38 34 44 40 6.39 0.10
.... .... .... ..... ..... ..... .....
17 29/7 9:25 41 40 29 34 6.36 0.12
18 11:00 38 44 28 58 6.42 0.30 Damaged oil line
19 2:35 35 41 37 38 6.38 0.06
20 3:15 56 55 45 48 6.51 0.11 Bad material
21 30/7 9:35 38 40 45 37 6.40 0.08
22 10:20 39 42 35 40 6.39 0.07
23 11:35 42 39 39 36 6.39 0.06
24 2:00 43 36 35 38 6.38 0.08
25 4:25 39 38 43 44 6.41 0.06
Sum 160.25 2.19 28
 X bar and R Chart
Setting control limits - TRIAL
Computations for the X chart

Process average or center line: X =

X = 160.25/25 = 6.41 mm
g

Upper Control Limit : UCL X = X + A2 R = 6.41 + (0.729) (0.0876) = 6.47 mm

Lower Control Limit: LCL = X - A2 R = 6.41 (0.729) (0.0876) = 6.35 mm

X

Computations for the R chart

Process average or center line: R=

R
g = 2.19/25 = 0.0876 mm
Upper Control Limit : UCL R = D 4 R = (2.282) (0.0876) = 0.20 mm
Lower Control Limit: LCL R = D 3 R = (0) (0.0876) =0

29
 X bar and R Chart
Setting control limits - REVISED
Computations for the X chart

Process average or center line: X =

X = 147.09/23 = 6.40 mm
g

Upper Control Limit : UCL X = X + A2 R = 6.40 + (0.729) (0.079) = 6.46 mm

Lower Control Limit: LCL = X - A2 R = 6.40 (0.729) (0.079) = 6.34 mm

X

Computations for the R chart

Process average or center line: R=

R
g = 1.89/24 = 0.079 mm
Upper Control Limit : UCL R = D 4 R = (2.282) (0.079) = 0.18 mm
Lower Control Limit: LCL R = D 3 R = (0) (0.079) =0
(recalculated after discarding out-of-control
data points with assignable causes)
30
Light bulbs are tested for their luminance, with the intensity of brightness desired
to be within a certain range.
Random samples of 5 bulbs are chosen from the output and their luminance values
measured the sample mean X and the standard deviation S are found.
After 30 samples, the following summary information is obtained
Find the control limits for the X bar and S charts. (Jan 2014)

30 30
Xi bar =2,550 Si = 195
i=1 i=1

X = 2,550/30 = 85 lumens S = 195/30 = 6.5 lumens

UCLX = X + A3 S = 85 + (1.427 X 6.5) = 94.28 lumens

LCLX = X - A3 S = 85 (1.427 X 6.5) = 75.72 lumens

UCLS = B4 S = 2.089 (6.5) = 13.58

LCLS = B3 S =0 31
University Question (Jan 2013)
A process fills boxes with detergent. Construct an appropriate set of control
charts to monitor the process. Historical data for fill weight (in ounces) of eight
samples in presented below. A sample size of 6 was used. (16 Marks)
For n = 6, A2 = 0.483, D3 = 0, D4 = 2.004

Sample Sample Mean Sample Range

1 15.80 0.42
2 16.10 0.38
3 16.02 0.08
4 15.95 0.15
5 16.12 0.42
6 16.18 0.23
7 15.87 0.36
8 16.20 0.40
32
 X bar and R Chart
Setting control limits - TRIAL
Computations for the X chart

Process average or center line: X =

X
= 128.24/8 = 16.03 Oz
g

Upper Control Limit : UCL X = X + A2 R = 16.03 + (0.483)(0.304) = 16.18 Oz

Lower Control Limit: LCL = X - A2 R

X = 16.03 (0.483)(0.304) = 15.88 Oz

Computations for the R chart

Process average or center line: R=

R = 2.43/8 = 0.304 Oz
g
Upper Control Limit : UCL R = D 4 R = (2.004) (0.304) = 0.61 Oz

Lower Control Limit: LCL R = D 3 R = (0) (0.0876) =0

33
Steps in construction (Attribute)
Subgroup size = n (each subgroup consists of n
observations)
Subgroup measures: computed for each subgroup
Proportion of defects p < Or> Number of defects c
Let the number of Subgroups be g ( means g
measurements are used for establishing the sample
distribution & control chart)
Mean of the sampling distribution of the subgroups
Proportion of defects Number of defects

p =
p =
c
g
c g

Standard deviation of the sampling distribution of the

subgroups:

34
P & C charts
Setting the control limits

35
P Chart
An example
p Chart
p Centre Line UCL LCL

0.21

0.18
Proportion of defects

0.15

0.12

0.09

0.06

0.03

0.00
1 2 3 4 5 6 7 8 9 10 11 12
Sample No.
36
C Chart
An example (with an outlier)
c Chart
c Centre Line UCL LCL
24

21

18
Number of defects

15

12

0
1 2 3 4 5 6 7 8 9 10
Sample No. 37
Example Trial central lines & control limits
Quality Characteristic: Nonconforming Hairdryer blower motor
Rational subgroup plan: n=300 (25 subgroups)
Subgroup Number Number Proportion
Number Inspected (n) Nonconforming Nonconforming
1 300 12 0.040
2 300 3 0.010
3 300 9 0.030
.... .... .... ....
.... .... .... ....
.... .... .... ....
19 300 16 0.053
20 300 2 0.007
21 300 5 0.017
22 300 6 0.020
23 300 0 0.0
24 300 3 0.010
25 300 2 0.007
Total 7,500 138 38
P chart
Setting the control limits

p =
p = 138/7500 = 0.018
g
= 0.018+ 3 0.018(1-0.018)/300

= 0.041

= 0.039 (new p = 0.017)

REVISED after discarding #19

= 0.018- 3 0.018(1-0.018)/300

= -0.005 0r 0.0

39
 Control Chart Selection
Quality Characteristic
variable attribute
defective defect
no
n>1? x and MR
yes constant
yes constant
p or sampling
sample
np unit?
size?
n>=10 or no
x and R
computer? yes no
no
yes
p-chart with c u
x and s variable sample
size

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 40
 TYPE Central line Upper Control Limit Lower Control Limit

X &R X X + A2 R X - A2 R
R D4 R D3 R

X &S X X + A3 S X - A3 S
S B4 S B3 S

P P p+3

p 1- p p -3

p 1- p
n n

np np n p + 3 n p 1- p n p - 3 n p 1- p
c c c+3 c c -3 c
Quality Assurance using SPC
Some terminologies
Designed Standard Status of process

Centre of specification Centre of the process

limits (Target) (Process Average)
Upper Specification Limit Upper Control Limit
(USL) (UCL)
Lower Specification Limit Lower Control Limit
(LSL) (LCL)
(USL LSL): Desired (UCL LCL): Spread of
tolerance the process

This represents the voice This represents the voice

of the customer of the process

42
 Predictive capability of processes
Which process is better?

Spread of a
process is
indicative of
its capability

43
Predictive capability of processes Offset
Which process is better?

A process that is
aligned closer to Process B
the desired target is
likely to be more
capable

Process A

44
LSL Target USL
Process Capability
Process Capability is defined by the spread
of the process
Potential capability (Cp) is defined as the
ratio of the difference in specification limits
to the process spread
Specification Range (USL - LSL)
Cp = Pr ocess Capability = 6

Actual capability (Cpk) takes into

consideration the extent to which the
process has deviated from the desired
target
Pr ocess Centre - LSL USL - Pr ocess Centre
Cpk = Min
3 ,
3
45
 Examples of Process Capability
(a) (b)

specification specification

natural variation natural variation

(c) (d)

specification specification

natural variation natural variation

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 46
 Process Capability & Defects
Process Capability Index Total Products outside two-
(Cpk) sided specification limits
0.25 453,255 ppm
0.50 133,614 ppm
0.60 71,861 ppm
0.80 16,395 ppm
1.00 2,700 ppm
1.20 318 ppm
1.50 7 ppm
1.70 0.34 ppm
2.00 0.0018 ppm
47
Source: Quality Planning & Analysis, Juran & Gryna, Chapter 17, 3e
Consider a 99% quality level
5000 incorrect surgical operations per
week!
200,000 wrong drug prescriptions per
year!
2 crash landings at most major
airports each day!
20,000 lost articles of mail per hour!
Six sigma quality
A graphical representation

(USL - LSL)
Cp = = 2 (USL - LSL) = 12 A spread of 6
6
49
Six Sigma
Six Sigma Approach was developed at Motorola in 1987 by
Bill Smith. It is a strategic tool with the objectives to
reducing defects, developing leadership skills & making a
cultural change; Six Sigma Level of performance
corresponds to a very low defect level of 3.4 ppm.
A popular roadmap of Six Sigma approach is DMAIC:
1. Define
2. Measure
3. Analyze
4. Improve
5. Control
According to this philosophy, processes rarely stay
centered. It tends to shift above & below target
Six Sigma
Solved Problem 1
The Watson Electric Company produces incandescent
lightbulbs. The following data on the number of lumens for 40-
watt lightbulbs were collected when the process was in control.
Observation
Sample 1 2 3 4
1 604 612 588 600
2 597 601 607 603
3 581 570 585 592
4 620 605 595 588
5 590 614 608 604

a. Calculate control limits for an R-chart and an x-chart.

b. Since these data were collected, some new employees were
hired. A new sample obtained the following readings: 570,
603, 623, and 583. Is the process still in control?

5 52
Solved Problem 1
SOLUTION
a. To calculate x, compute the mean for each sample. To
calculate R, subtract the lowest value in the sample from the
highest value in the sample. For example, for sample 1,
604 + 612 + 588 + 600
x= = 601
4
R = 612 588 = 24

Sample x R
1 601 24
2 602 10
3 582 22
4 602 32
5 604 24
Total 2,991 112
Average x = 598.2 R = 22.4

5 53
Solved Problem 1
The R-chart control limits are

UCLR = D4R = 2.282(22.4) = 51.12

LCLR = D3R = 0(22.4) = 0

The x-chart control limits are

UCLx = x + A2R = 598.2 + 0.729(22.4) = 614.53

LCLx = x A2R = 598.2 0.729(22.4) = 581.87

b. First check to see whether the variability is still in control

based on the new data. The range is 53 (or 623 570), which
is outside the UCL for the R-chart. Since the process
variability is out of control, it is meaningless to test for the
process average using the current estimate for R. A search
for assignable causes inducing excessive variability must be
conducted.
5 54
Solved Problem 2

The data processing department of the Arizona Bank has five

data entry clerks. Each working day their supervisor verifies
the accuracy of a random sample of 250 records. A record
containing one or more errors is considered defective and
must be redone. The results of the last 30 samples are shown
in the table. All were checked to make sure that none was out
of control.

5 55
Solved Problem 2

Number of Defective Number of Defective

Sample Sample
Records Records
1 7 16 8
2 5 17 12
3 19 18 4
4 10 19 6
5 11 20 11
6 8 21 17
7 12 22 12
8 9 23 6
9 6 24 7
10 13 25 13
11 18 26 10
12 5 27 14
13 16 28 6
14 4 29 11
15 11 30 9
Total 300

5 56
Solved Problem 2

a. Based on these historical data, set up a p-chart using z = 3.

b. Samples for the next four days showed the following:

Sample Number of Defective Records

Tues 17
Wed 15
Thurs 22
Fri 21

What is the supervisors assessment of the data-entry process

likely to be?

5 57
Solved Problem 2

SOLUTION
a. From the table, the supervisor knows that the total number
of defective records is 300 out of a total sample of 7,500
[or 30(250)]. Therefore, the central line of the chart is

300
p= = 0.04
7,500

The control limits are

p 1 - p 0.04(0.96)
UCL p = p + z = 0.04 + 3 = 0.077
n 250
p 1 - p = 0.04 - 3 0.04(0.96) = 0.003
LCL p = p - z
n 250

5 58
Solved Problem 2

b. Samples for the next four days showed the following:

Sample Number of Defective Records Proportion

Tues 17 0.068
Wed 15 0.060
Thurs 22 0.088
Fri 21 0.084

Samples for Thursday and Friday are out of control. The

supervisor should look for the problem and, upon identifying
it, take corrective action.

5 59
Solved Problem 3
The Minnow County Highway Safety Department monitors
accidents at the intersection of Routes 123 and 14. Accidents at
the intersection have averaged three per month.
a. Which type of control chart should be used? Construct a
control chart with three sigma control limits.
b. Last month, seven accidents occurred at the intersection. Is
this sufficient evidence to justify a claim that something has
changed at the intersection?

5 60
Solved Problem 3
SOLUTION
a. The safety department cannot determine the number of
accidents that did not occur, so it has no way to compute a
proportion defective at the intersection. Therefore, the
administrators must use a c-chart for which

UCLc = c + z c = 3 + 3 3 = 8.20
LCLc = c z c = 3 3 3 = 2.196

There cannot be a negative number of accidents, so the LCL

in this case is adjusted to zero.

b. The number of accidents last month falls within the UCL

and LCL of the chart. We conclude that no assignable
causes are present and that the increase in accidents was
due to chance.

5 61
Solved Problem 4 (Anna Univ)
Random samples of size 5 are selected on the length of a
connector pin. For each sample, the sample mean and range (in
mm) are calculated and shown in table below. The length
specifications are 50 3.5 mm. The daily production rate is
2,000. The unit cost of scrap is Rs 50 and the unit cost of
rework is Rs 12.
a) Find the trial control limits for the X bar and R charts
b) Assuming special causes for out of control points, find the
revised control limits.
c) Find the process capability index Cpk and comment on its
value
d) Find the daily cost of scrap and rework
Jan 2011

5 62
Solved Problem 4
Sample
Average length (mm) Range (mm)
Number
1 50.3 4
2 48.4 2
3 48.5 5
4 49.1 4
5 52.6 3
6 46.2 4
7 50.8 3
8 52.2 4
9 49.5 5
10 51.7 4
11 52.5 5
12 47.8 3
Total 599.6 46

Number of Samples g = 12
For constants A2, D3, D4 refer table for sample size n = 5
5 63
 Control limits Trial & Revisions

= (599.6 - 52.6 - 52.5 46.2)/8 =

= 599.6/12 = 50 mm 49.8 mm

= 50 + (0.577 X 3.83) = 52.21 mm = 49.8 + (0.577 X 3.83) =52.02 mm

= 50 - (0.577 X 3.83) = 47.79 mm = 49.8 - (0.577 X 3.83) = 47.60 mm

= 46/12 = 3.83 mm = 46/12 = 3.83 mm (nc: no change)

= 2.114 X 3.83 = 8.10 mm = 2.114 X 3.83 = 8.10 mm (nc)

= 0 X 3.83 = 0 mm = 0 X 3.83 = 0 mm (nc)

Out of control points sample numbers 5, 6 & 11 Sample number 8 is out of control
Assuming special causes, for X alone. Removing it, final
need to remove the values for two samples
from the data for X alone and = 49.50 mm
compute the revised control limits as shown here = 51.72 mm
= 47.30 mm
No changes in R chart.
5 64
Process Capability & Daily Cost
Population standard deviation = R/d2 = 3.83/2.326 = 1.65
The length specifications are 50 3.5 mm (given) & Process mean X = 49.5
Cpk = Min {(USL- Process Mean) or (Process mean LSL)}/ 3
= Min {(53.5-49.5) or (49.5 46.5)}/ (3 X 1.65) = 3/4.95
= 0.61 >> process does not conform to specifications ( < 1)
Assuming normal distribution, given Process Mean = 49.5 mm, Process Std
deviation = 1.65 mm, USL= 53.5 mm & LSL = 46.5 mm, area outside the curve
On the lower side, Z value = (46.5-49.5)/1.65 = - 1.82 3.5% (Scrap)
On the upper side, Z value = (53.5-49.5)/1.65 = 2.42 0.8% (Rework)
Logic:
Pins with higher lengths than USL can be reworked
But with lower than LSL have to be only scrapped
Given daily production = 2,000 pins,
Estimated numbers below LSL = 2,000 X 3.5% = 70 pcs per day
Scrap cost Rs = 70 X 50 = Rs 3,500 per day
Estimated numbers above USL = 2,000 X 0.8% = 16 pcs per day
Rework cost Rs= 16 X 12 = Rs 192 per day
5 65