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 non-
random 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 Inspect Sample

Take Samples
Is process No
in control?
Create
Stop Process
Control Chart Yes

Find Out Why

S6-4
 Process Control Charts

Plot of Sample Data Over Time

80
Sample Value

60 Upper control limit

40
20
0 Lower control limit
1 5 9 13 17 21
Time

S6-5
 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

Standard deviation of x
x
the sample means
n

3 x 2 x 1 x 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 distribution of mean
gets values becomes
large approximately normal
enough, for any population
distribution.

X
X
S6-8
 Control Chart Types

Control
Categorical or
Continuous Charts
Discrete Numerical
Numerical Data Data
Variables Attributes
Charts Charts

R X P C
Chart Chart Chart Chart

S6-9
 Quality Characteristics

Variables Attributes
Characteristics that you Characteristics for which
measure, e.g., weight, you focus on defects.
length.

Continuous values. Categorical or discrete

values.
Good or Bad.
# of defects.

S6-10
 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

n
xi
i 1
x
x n
n
sample mean = known process
at time i 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
 X Chart Control Limits -
Std. Dev. of Process is Not Known
UCLx x A2 R LCLx x A2 R
A2 is from Table S6.1
n n
xi Ri
x
i 1 R i 1
n n
sample range
sample mean
at time i
at time i

S6-14
Factors for Computing Control
Chart Limits
Sample Mean Upper Lower
Size, n Factor, A 2 Range, D4 Range, D3
2 1.880 3.268 0
3 1.023 2.574 0
4 0.729 2.282 0
5 0.577 2.115 0
6 0.483 2.004 0
7 0.419 1.924 0.076
8 0.373 1.864 0.136
9 0.337 1.816 0.184
10 0.308 1.777 0.223

S6-15
 X Chart - Example 2
Each sample is 4 measurements.
Determine 3 control limits.
sample mean range.
1 5.02 .12 4.96, 5.03, 5.01, 5.08
2 4.99 .08.
3 4.97 .13.
4 5.03 .18.
5 4.99 .14.

x 5.0 R 0.13
UCLx 5 0.729 0.13 5.095
LCLx 5 0.729 0.13 4.905

S6-16
 X Chart - Example 2

5.1 Upper control limit

Sample Mean

5.0

Lower control limit

4.9
Time

S6-17
 Example 2 New Samples
sample values mean range
6 5.05, 5.00, 4.80, 4.95 4.95 0.25
7 5.00, 5.10, 5.10, 5.00 5.05 0.10
8 4.80, 5.20, 5.10, 5.00 5.025 0.40

5.1 Upper control limit

Sample Mean

5.0

Lower control limit

4.9
Time
S6-18
 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.
S6-19
 R Chart Control Limits

UCL R D4 R
From Table S6.1

LCL R D3R

n sample range at
Ri time i
R i 1
n
S6-20
 R Chart - Example 2
Each sample is 4 measurements.
Determine 3 control limits.
sample mean range
1 5.02 .12 4.96, 5.03, 5.01, 5.08
2 4.99 .08
3 4.97 .13
4 5.03 .18
5 4.99 .14

x 5.0 R 0.13
UCLR 2.282 0.13 0.297
LCLR 0 0.13 0

S6-21
Sample Range
R Chart - Example 2

0.3 Upper control limit

0.2
0.1
0 Lower control limit

Time

S6-22
 Example 2 New Samples
sample values mean range
6 5.05, 5.00, 4.80, 4.95 4.95 0.25
7 5.00, 5.10, 5.10, 5.00 5.05 0.10
8 4.80, 5.20, 5.10, 5.00 5.025 0.40
Sample Range

0.3 Upper control limit

0.2
0.1
0 Lower control limit

Time
S6-23
 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.

S6-24
 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.

S6-25
Use of Control Charts

S6-26
 Example 3
sample values mean range
1 4.9, 5.0, 5.1 5.0 0.2
2 5.2, 5.3, 5.4 5.3 0.2
3 5.5, 5.6, 5.7 5.6 0.2
4 5.8, 5.9, 6.0 5.9 0.2

x 5.45 R 0.2
UCL 5.451.0230.2 5.6546
x
LCL 5.451.0230.2 5.2454
x
UCL 2.5740.2 0.5148
R
LCL 00.2 0
R
S6-27
 Example 3 Control Charts
6.0
Sample Mean

Upper control limit = 5.6546

5.5
Lower control limit = 5.2454
5.0
Time

1.0
Sample Range

Upper control limit = 0.5148

0.5

0.0 Lower control limit = 0

Time
S6-28
 Example 4
sample values mean range
1 5.0, 5.0, 5.0 5.0 0.0
2 4.5, 5.0, 5.5 5.0 1.0
3 4.0, 5.0, 6.0 5.0 2.0
4 3.0, 5.0, 7.0 5.0 4.0

x 5.0 R 1.75
UCL 5.0 1.0231.75 6.79025
x
LCL 5.0 1.0231.75 3.20975
x
UCL 2.5741.75 4.5045
R
LCL 01.75 0
R
S6-29
 Example 4 Control Charts
7.0
Sample Mean

Upper control limit = 6.79025

5.0

Lower control limit = 3.20975

3.0
Time

6.0
Sample Range

Upper control limit = 4.5045

3.0

0.0 Lower control limit = 0

Time
S6-30
 p Chart
Attributes control chart.

Shows % of nonconforming items.

Example: Count # defective chairs & divide by

total chairs inspected.
Chair is either defective or not defective.

S6-31
 c Chart
Attributes control chart.

Shows number of defects in a unit.

Unit may be chair, steel sheet, car, etc.
Size of unit must be constant.

Example: Count # defects (scratches, chips

etc.) in each chair of a sample of 100 chairs.

S6-32
 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.

S6-33
 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?

S6-34