S6 - 1 2011 Pearson Education, Inc.

publishing as Prentice Hall

S6
Statistical Process
Control
PowerPoint presentation to accompany
Heizer and Render
Operations Management, 10e
Principles of Operations Management, 8e

PowerPoint slides by Jeff Heyl
S6 - 2 2011 Pearson Education, Inc. publishing as Prentice Hall
Statistical Process Control
The objective of a process control
system is to provide a statistical
signal when assignable causes of
variation are present
S6 - 3 2011 Pearson Education, Inc. publishing as Prentice Hall
Variability is inherent
in every process
Natural or common
causes
Special or assignable causes
Provides a statistical signal when
assignable causes are present
Detect and eliminate assignable causes
of variation
Statistical Process Control
(SPC)
S6 - 4 2011 Pearson Education, Inc. publishing as Prentice Hall
Natural Variations
Also called common causes
Affect virtually all production processes
Expected amount of variation
Output measures follow a probability
distribution
For any distribution there is a measure
of central tendency and dispersion
If the distribution of outputs falls within
acceptable limits, the process is said to
be in control
S6 - 5 2011 Pearson Education, Inc. publishing as Prentice Hall
Assignable Variations
Also called special causes of variation
Generally this is some change in the process
Variations that can be traced to a specific
reason
The objective is to discover when
assignable causes are present
Eliminate the bad causes
Incorporate the good causes
S6 - 6 2011 Pearson Education, Inc. publishing as Prentice Hall
Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
(a) Samples of the
product, say five
boxes of cereal
taken off the filling
machine line, vary
from each other in
weight
F
r
e
q
u
e
n
c
y

Weight
#
# # #
# #
# #
#
# # # # # # #
# # # # # # # # # #
Each of these
represents one
sample of five
boxes of cereal
Figure S6.1
S6 - 7 2011 Pearson Education, Inc. publishing as Prentice Hall
Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
(b) After enough
samples are
taken from a
stable process,
they form a
pattern called a
distribution
The solid line
represents the
distribution
F
r
e
q
u
e
n
c
y

Weight
Figure S6.1
S6 - 8 2011 Pearson Education, Inc. publishing as Prentice Hall
Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
(c) There are many types of distributions, including
the normal (bell-shaped) distribution, but
distributions do differ in terms of central
tendency (mean), standard deviation or
variance, and shape
Weight
Central tendency
Weight
Variation
Weight
Shape
F
r
e
q
u
e
n
c
y

Figure S6.1
S6 - 9 2011 Pearson Education, Inc. publishing as Prentice Hall
Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
(d) If only natural
causes of
variation are
present, the
output of a
process forms a
distribution that
is stable over
time and is
predictable
Weight
F
r
e
q
u
e
n
c
y

Prediction
Figure S6.1
S6 - 10 2011 Pearson Education, Inc. publishing as Prentice Hall
Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
(e) If assignable
causes are
present, the
process output is
not stable over
time and is not
predicable
Weight
F
r
e
q
u
e
n
c
y

Prediction
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
Figure S6.1
S6 - 11 2011 Pearson Education, Inc. publishing as Prentice Hall
Control Charts
Constructed from historical data, the
purpose of control charts is to help
distinguish between natural variations
and variations due to assignable
causes
S6 - 12 2011 Pearson Education, Inc. publishing as Prentice Hall
Process Control
Figure S6.2
Frequency
(weight, length, speed, etc.)
Size
Lower control limit
Upper control limit
(a) In statistical
control and capable
of producing within
control limits
(b) In statistical
control but not
capable of producing
within control limits
(c) Out of control
S6 - 13 2011 Pearson Education, Inc. publishing as Prentice Hall
Types of Data
Characteristics that
can take any real
value
May be in whole or
in fractional
numbers
Continuous random
variables
Variables Attributes
Defect-related
characteristics
Classify products
as either good or
bad or count
defects
Categorical or
discrete random
variables
S6 - 14 2011 Pearson Education, Inc. publishing as Prentice Hall
Central Limit Theorem
Regardless of the distribution of the
population, the distribution of sample means
drawn from the population will tend to follow
a normal curve
1. The mean of the sampling
distribution (x) will be the same
as the population mean m
x = m
s
n
s
x
=
2. The standard deviation of the
sampling distribution (s
x
) will
equal the population standard
deviation (s) divided by the
square root of the sample size, n
S6 - 15 2011 Pearson Education, Inc. publishing as Prentice Hall
Population and Sampling
Distributions
Three population
distributions
Beta
Normal
Uniform
Distribution of
sample means
Standard
deviation of
the sample
means
= s
x
=
s
n
Mean of sample means = x
| | | | | | |
-3s
x
-2s
x
-1s
x
x +1s
x
+2s
x
+3s
x

99.73% of all x
fall within 3s
x

95.45% fall within 2s
x

Figure S6.3
S6 - 16 2011 Pearson Education, Inc. publishing as Prentice Hall
Sampling Distribution
x = m
(mean)
Sampling
distribution
of means
Process
distribution
of means
Figure S6.4
S6 - 17 2011 Pearson Education, Inc. publishing as Prentice Hall
Control Charts for Variables
For variables that have
continuous dimensions
Weight, speed, length,
strength, etc.
x-charts are to control
the central tendency of the process
R-charts are to control the dispersion of
the process
These two charts must be used together
S6 - 18 2011 Pearson Education, Inc. publishing as Prentice Hall
Setting Chart Limits
For x-Charts when we know s
Upper control limit (UCL) = x + zs
x

Lower control limit (LCL) = x - zs
x

where x = mean of the sample means or a target
value set for the process
z = number of normal standard deviations
s
x
= standard deviation of the sample means
= s/ n
s = population standard deviation
n = sample size
S6 - 19 2011 Pearson Education, Inc. publishing as Prentice Hall
Setting Control Limits
Hour 1
Sample Weight of
Number Oat Flakes
1 17
2 13
3 16
4 18
5 17
6 16
7 15
8 17
9 16
Mean 16.1
s = 1
Hour Mean Hour Mean
1 16.1 7 15.2
2 16.8 8 16.4
3 15.5 9 16.3
4 16.5 10 14.8
5 16.5 11 14.2
6 16.4 12 17.3
n = 9
LCL
x
= x - zs
x
= 16 - 3(1/3) = 15 ozs
For 99.73% control limits, z = 3
UCL
x
= x + zs
x
= 16 + 3(1/3) = 17 ozs
S6 - 20 2011 Pearson Education, Inc. publishing as Prentice Hall
17 = UCL
15 = LCL
16 = Mean
Setting Control Limits
Control Chart
for sample of
9 boxes
Sample number
| | | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10 11 12
Variation due
to assignable
causes
Variation due
to assignable
causes
Variation due to
natural causes
Out of
control
Out of
control
S6 - 21 2011 Pearson Education, Inc. publishing as Prentice Hall
Setting Chart Limits
For x-Charts when we dont know s
Lower control limit (LCL) = x - A
2
R
Upper control limit (UCL) = x + A
2
R
where R = average range of the samples
A
2
= control chart factor found in Table S6.1
x = mean of the sample means
S6 - 22 2011 Pearson Education, Inc. publishing as Prentice Hall
Control Chart Factors
Table S6.1
Sample Size Mean Factor

Upper Range

Lower Range

n A
2
D
4
D
3

2 1.880 3.268 0
3 1.023 2.574 0
4 .729 2.282 0
5 .577 2.115 0
6 .483 2.004 0
7 .419 1.924 0.076
8 .373 1.864 0.136
9 .337 1.816 0.184
10 .308 1.777 0.223
12 .266 1.716 0.284
S6 - 23 2011 Pearson Education, Inc. publishing as Prentice Hall
Setting Control Limits
Process average x = 12 ounces
Average range R = .25
Sample size n = 5
S6 - 24 2011 Pearson Education, Inc. publishing as Prentice Hall
Setting Control Limits
UCL
x
= x + A
2
R
= 12 + (.577)(.25)
= 12 + .144
= 12.144 ounces
Process average x = 12 ounces
Average range R = .25
Sample size n = 5
From
Table S6.1
S6 - 25 2011 Pearson Education, Inc. publishing as Prentice Hall
Setting Control Limits
UCL
x
= x + A
2
R
= 12 + (.577)(.25)
= 12 + .144
= 12.144 ounces
LCL
x
= x - A
2
R
= 12 - .144
= 11.857 ounces
Process average x = 12 ounces
Average range R = .25
Sample size n = 5
UCL = 12.144
Mean = 12
LCL = 11.857
S6 - 26 2011 Pearson Education, Inc. publishing as Prentice Hall
Restaurant Control Limits
For salmon filets at Darden Restaurants
S
a
m
p
l
e

M
e
a
n

x Bar Chart
UCL = 11.524
x 10.959
LCL 10.394
| | | | | | | | |
1 3 5 7 9 11 13 15 17
11.5
11.0
10.5
S
a
m
p
l
e

R
a
n
g
e

Range Chart
UCL = 0.6943
R = 0.2125
LCL = 0
| | | | | | | | |
1 3 5 7 9 11 13 15 17
0.8
0.4
0.0
S6 - 27 2011 Pearson Education, Inc. publishing as Prentice Hall
Restaurant Control Limits
Specifications
LSL 10
USL 12
Capability
Mean = 10.959
Std.dev = 1.88
C
p
= 1.77
C
pk
= 1.7
Capability Histogram
LSL USL
S6 - 28 2011 Pearson Education, Inc. publishing as Prentice Hall
R Chart
Type of variables control chart
Shows sample ranges over time
Difference between smallest and
largest values in sample
Monitors process variability
Independent from process mean
S6 - 29 2011 Pearson Education, Inc. publishing as Prentice Hall
Setting Chart Limits
For R-Charts
Lower control limit (LCL
R
) = D
3
R
Upper control limit (UCL
R
) = D
4
R
where
R = average range of the samples
D
3
and D
4
= control chart factors from Table S6.1
S6 - 30 2011 Pearson Education, Inc. publishing as Prentice Hall
Setting Control Limits
UCL
R
= D
4
R
= (2.115)(5.3)
= 11.2 pounds
LCL
R
= D
3
R
= (0)(5.3)
= 0 pounds
Average range R = 5.3 pounds
Sample size n = 5
From Table S6.1 D
4
= 2.115, D
3
= 0
UCL = 11.2
Mean = 5.3
LCL = 0
S6 - 31 2011 Pearson Education, Inc. publishing as Prentice Hall
Mean and Range Charts
(a)
These
sampling
distributions
result in the
charts below
(Sampling mean is
shifting upward but
range is consistent)
R-chart
(R-chart does not
detect change in
mean)
UCL
LCL
Figure S6.5
x-chart
(x-chart detects
shift in central
tendency)
UCL
LCL
S6 - 32 2011 Pearson Education, Inc. publishing as Prentice Hall
Mean and Range Charts
R-chart
(R-chart detects
increase in
dispersion)
UCL
LCL
Figure S6.5
(b)
These
sampling
distributions
result in the
charts below
(Sampling mean
is constant but
dispersion is
increasing)
x-chart
(x-chart does not
detect the increase
in dispersion)
UCL
LCL
S6 - 33 2011 Pearson Education, Inc. publishing as Prentice Hall
Steps In Creating Control
Charts
1. Take samples from the population and
compute the appropriate sample statistic
2. Use the sample statistic to calculate control
limits and draw the control chart
3. Plot sample results on the control chart and
determine the state of the process (in or out of
control)
4. Investigate possible assignable causes and
take any indicated actions
5. Continue sampling from the process and reset
the control limits when necessary
S6 - 34 2011 Pearson Education, Inc. publishing as Prentice Hall
Manual and Automated
Control Charts
S6 - 35 2011 Pearson Education, Inc. publishing as Prentice Hall
Managerial Issues and
Control Charts
Select points in the processes that
need SPC
Determine the appropriate charting
technique
Set clear policies and procedures
Three major management decisions:
S6 - 36 2011 Pearson Education, Inc. publishing as Prentice Hall
Which Control Chart to Use
Table S6.3
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.
S6 - 37 2011 Pearson Education, Inc. publishing as Prentice Hall
Patterns in Control Charts
Normal behavior.
Process is in control.
Upper control limit
Target
Lower control limit
Figure S6.7
S6 - 38 2011 Pearson Education, Inc. publishing as Prentice Hall
Upper control limit
Target
Lower control limit
Patterns in Control Charts
One plot out above (or
below). Investigate for
cause. Process is out
of control.
Figure S6.7
S6 - 39 2011 Pearson Education, Inc. publishing as Prentice Hall
Upper control limit
Target
Lower control limit
Patterns in Control Charts
Trends in either
direction, 5 plots.
Investigate for cause of
progressive change.
Figure S6.7
S6 - 40 2011 Pearson Education, Inc. publishing as Prentice Hall
Upper control limit
Target
Lower control limit
Patterns in Control Charts
Two plots very near
lower (or upper)
control. Investigate for
cause.
Figure S6.7
S6 - 41 2011 Pearson Education, Inc. publishing as Prentice Hall
Upper control limit
Target
Lower control limit
Patterns in Control Charts
Run of 5 above (or
below) central line.
Investigate for cause.
Figure S6.7
S6 - 42 2011 Pearson Education, Inc. publishing as Prentice Hall
Upper control limit
Target
Lower control limit
Patterns in Control Charts
Erratic behavior.
Investigate.
Figure S6.7
S6 - 43 2011 Pearson Education, Inc. publishing as Prentice Hall
Process Capability

The natural variation of a process
should be small enough to produce
products that meet the standards
required
A process in statistical control does not
necessarily meet the design
specifications
Process capability is a measure of the
relationship between the natural
variation of the process and the design
specifications
S6 - 44 2011 Pearson Education, Inc. publishing as Prentice Hall
Process Capability Ratio

C
p
=
Upper Specification - Lower Specification
6s
A capable process must have a C
p
of at
least 1.0
Does not look at how well the process
is centered in the specification range
Often a target value of C
p
= 1.33 is used
to allow for off-center processes
Six Sigma quality requires a C
p
= 2.0
S6 - 45 2011 Pearson Education, Inc. publishing as Prentice Hall
Process Capability Ratio

C
p
=
Upper Specification - Lower Specification
6s
Insurance claims process
Process mean x = 210.0 minutes
Process standard deviation s = .516 minutes
Design specification = 210 3 minutes
S6 - 46 2011 Pearson Education, Inc. publishing as Prentice Hall
Process Capability Ratio

C
p
=
Upper Specification - Lower Specification
6s
Insurance claims process
Process mean x = 210.0 minutes
Process standard deviation s = .516 minutes
Design specification = 210 3 minutes
= = 1.938
213 - 207
6(.516)
S6 - 47 2011 Pearson Education, Inc. publishing as Prentice Hall
Process Capability Ratio

C
p
=
Upper Specification - Lower Specification
6s
Insurance claims process
Process mean x = 210.0 minutes
Process standard deviation s = .516 minutes
Design specification = 210 3 minutes
= = 1.938
213 - 207
6(.516)
Process is
capable
S6 - 48 2011 Pearson Education, Inc. publishing as Prentice Hall
Process Capability Index
A capable process must have a C
pk
of at
least 1.0
A capable process is not necessarily in the
center of the specification, but it falls within
the specification limit at both extremes
C
pk
= minimum of ,
Upper
Specification - x
Limit
3s
Lower
x - Specification
Limit
3s
S6 - 49 2011 Pearson Education, Inc. publishing as Prentice Hall
Process Capability Index
New Cutting Machine
New process mean x = .250 inches
Process standard deviation s = .0005 inches
Upper Specification Limit = .251 inches
Lower Specification Limit = .249 inches
S6 - 50 2011 Pearson Education, Inc. publishing as Prentice Hall
Process Capability Index
New Cutting Machine
New process mean x = .250 inches
Process standard deviation s = .0005 inches
Upper Specification Limit = .251 inches
Lower Specification Limit = .249 inches
C
pk
= minimum of ,
(.251) - .250
(3).0005
S6 - 51 2011 Pearson Education, Inc. publishing as Prentice Hall
Process Capability Index
New Cutting Machine
New process mean x = .250 inches
Process standard deviation s = .0005 inches
Upper Specification Limit = .251 inches
Lower Specification Limit = .249 inches
C
pk
= = 0.67
.001
.0015
New machine is
NOT capable
C
pk
= minimum of ,
(.251) - .250
(3).0005
.250 - (.249)
(3).0005
Both calculations result in
S6 - 52 2011 Pearson Education, Inc. publishing as Prentice Hall
Interpreting C
pk

C
pk
= negative number
C
pk
= zero
C
pk
= between 0 and 1
C
pk
= 1
C
pk
> 1
Figure S6.8
S6 - 53 2011 Pearson Education, Inc. publishing as Prentice Hall
Automated Inspection
Modern
technologies
allow virtually
100%
inspection at
minimal costs
Not suitable
for all
situations
S6 - 54 2011 Pearson Education, Inc. publishing as Prentice Hall
SPC and Process Variability
(a) Acceptance
sampling (Some
bad units accepted)
(b) Statistical process
control (Keep the
process in control)
(c) C
pk
>1 (Design
a process that
is in control)
Lower
specification
limit
Upper
specification
limit
Process mean, m
Figure S6.10