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Chapter 3

Statistical Process Control


Operations
Operations Management
Management -- 66thth Edition
Edition
Roberta Russell & Bernard W. Taylor, III

Copyright 2009 John Wiley & Sons, Inc.

Beni Asllani
University of Tennessee at Chattanooga

Lecture Outline

Basics of Statistical Process Control


Control Charts
Control Charts for Attributes
Control Charts for Variables
Control Chart Patterns
Process Capability

Copyright 2009 John Wiley & Sons, Inc.

3-2

Product
launch
activities:
Revise
periodically

Customer Requirements
Product Specifications
Process Specifications
Statistical Process
Control:
Measure & monitor quality

Ongoing
Activities

Meets
Specifications
?

No

Yes
Conformance Quality

Fix
process or
inputs

Basics of Statistical
Process Control
Statistical Process Control
(SPC)

monitoring production process


to detect, correct, and prevent
poor quality

UCL

Sample

subset of items produced to


use for inspection

LCL

Control Chart

Is the process within statistical


control limits?

Copyright 2009 John Wiley & Sons, Inc.

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Variation in a
Transformation Process
Inputs
Facilities
Equipment
Materials
Energy
Employees

Transformation
Process

Outputs
Goods &
Services

Variation in inputs create variation in outputs


Variations in the transformation process create
variation in outputs

Basics of Statistical Process Control


Types of Variation (1)
1. Random variation

Also called common cause variation


This type of variation is inherent in a process.
Caused by usual variations in equipment, tooling,
employee actions, facility environment, materials,
measurement system, etc.
If random variation is excessive, the goods or
services will not meet quality standards.
To reduce random variation, we must reduce
variation in the inputs and the process

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Basics of Statistical Process Control


Types of Variation (2)
2. Non-random variation

Also called special cause variation or assignable


cause variation
Caused by equipment out of adjustment, worn
tooling, operator errors, poor training, defective
materials, measurement errors, etc.
The process is not behaving as it usually does.
The cause can and should be identified and
corrected.

Copyright 2009 John Wiley & Sons, Inc.

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Statistical Process Control (SPC)


When is a process in control?
A process is in control if it has no special cause
variation.
The process is consistent or predictable.
SPC distinguishes between common cause and
special cause variation
Measure characteristics of goods or services that are
important to customers
Make a control chart for each characteristic
The chart is used to determine whether the
process is in control

Specification Limits
The target is the ideal value
Example: if the amount of beverage in a bottle should be 16
ounces, the target is 16 ounces
Specification limits are the acceptable range of values for a
variable
Example: the amount of beverage in a bottle must be at least
15.98 ounces and no more than 16.02 ounces.

Range is 15.98 16.02 ounces.


Lower specification limit = 15.98 ounces or LSPEC = 15.98 ounces
Upper specification limit = 16.02 ounces or USPEC = 16.02 ounces

Specifications and Conformance Quality


A product which meets its specification has
conformance quality.
Capable process: a process which
consistently produces products that have
conformance quality.
Must be in control and meet specifications

Quality Measures
Attributes and Variables
Discrete measures

Discrete means separate or distinct


Good/bad, yes/no (p charts) - Does the product meet
standards?
Count of defects (c charts) the count is a whole number

Variables continuous numerical measures

Length, diameter, weight, height, time, speed,


temperature, pressure - does not have to be a whole
number
Controlled with x-bar and R charts

SPC Applied to Services (1)


A service defect is a failure to meet customer
requirements.
Different customers have different requirements.
Examples of attribute measures used in services
Customer satisfaction surveys provides customer
perceptions
Reports from mystery shoppers, based on
standards
Employee or supervisor inspects cleanliness, etc.,
according to standards
Copyright 2009 John Wiley & Sons, Inc.

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SPC Applied to Services (2)


Examples of variable measures used in
services

Waiting time and service time


On-time service delivery
Accuracy
Number of stockouts (retail and distribution)
Percentage of lost luggage (airlines)
Web site availability (online retailing or technical
support)

Copyright 2009 John Wiley & Sons, Inc.

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SPC Applied to Services (3)


Hospitals

timeliness and quickness of care, staff responses to requests,


accuracy of lab tests, cleanliness, courtesy, accuracy of
paperwork, speed of admittance and checkouts

Grocery stores

waiting time to check out, frequency of out-of-stock items,


quality of food items, cleanliness, customer complaints,
checkout register errors

Airlines

flight delays, lost luggage and luggage handling, waiting time


at ticket counters and check-in, agent and flight attendant
courtesy, accurate flight information, passenger cabin
cleanliness and maintenance

Copyright 2009 John Wiley & Sons, Inc.

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SPC Applied to Services (4)


Fast-food restaurants

waiting time for service, customer complaints,


cleanliness, food quality, order accuracy, employee
courtesy

Catalogue-order companies

order accuracy, operator knowledge and courtesy,


packaging, delivery time, phone order waiting time

Insurance companies

billing accuracy, timeliness of claims processing,


agent availability and response time

Copyright 2009 John Wiley & Sons, Inc.

3-15

Process Control Chart


Out of control
Upper
control
limit
Process
average
Lower
control
limit

10

Sample number
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Control Charts for


Variables
Range chart ( R-Chart )
uses amount of dispersion in a
sample

Mean chart ( x -Chart )


uses process average of a
sample

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Control Charts for Variables


Mean chart: sample means are plotted.
Range chart: sample ranges are plotted.
Two cases:

The standard deviation is known


The standard deviation is unknown.

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SPC for Variables


The Normal Distribution
= the population mean
= the standard deviation
for the population
99.74% of the area under the
normal curve is between
- 3 and + 3

SPC for Variables


The Central Limit Theorem
Samples are taken from a distribution with
mean and standard deviation .
k = the number of samples
n = the number of units in each sample
The sample means are normally distributed

with mean and standard deviation x


n
when k is large.

x-bar Chart:
Standard Deviation Known
UCL = =
x + z x LCL = =
x - z x
=
x
=

x1 + x2 + ...
xn
n

where
=
x = average of sample
means
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3-21

x-bar Chart Example:


Standard Deviation Known (cont.)
Given: The standard deviation is 0.08

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x-bar Chart Example:


Standard Deviation Known (cont.)

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3-23

x-bar Chart Example:


Standard Deviation Unknown
=A R
UCL = x +
2

LCL =
= x - A2R

A2 is a factor that depends on n,


the number of units in each sample

Copyright 2009 John Wiley & Sons, Inc.

3-24

Control
Limits
In this problem,
n=5

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x-bar Chart Example:


Standard Deviation Unknown
OBSERVATIONS (SLIP- RING DIAMETER, CM)
SAMPLE k

1
2
3
4
5
6
7
8
9
10

5.02
5.01
4.99
5.03
4.95
4.97
5.05
5.09
5.14
5.01

5.01
5.03
5.00
4.91
4.92
5.06
5.01
5.10
5.10
4.98

4.94
5.07
4.93
5.01
5.03
5.06
5.10
5.00
4.99
5.08

4.99
4.95
4.92
4.98
5.05
4.96
4.96
4.99
5.08
5.07

4.96
4.96
4.99
4.89
5.01
5.03
4.99
5.08
5.09
4.99

4.98
5.00
4.97
4.96
4.99
5.01
5.02
5.05
5.08
5.03

0.08
0.12
0.08
0.14
0.13
0.10
0.14
0.11
0.15
0.10

50.09

1.15

Example 15.4
Copyright 2009 John Wiley & Sons, Inc.

3-26

x-bar Chart Example:


Standard Deviation Unknown (cont.)
R

R=
0.115k

1.15
10

50.09
= x
x=
=
= 5.01 cm
k
10
UCL = x= + A2R = 5.01 + (0.58)(0.115) = 5.08
LCL = x= - A2R = 5.01 - (0.58)(0.115) = 4.94
Retrieve Factor Value A2
Copyright 2009 John Wiley & Sons, Inc.

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5.10
5.08
UCL = 5.08

5.06
5.04

Mean

5.02

x= = 5.01

5.00
4.98

x- bar
Chart
Example
(cont.)

4.96
4.94

LCL = 4.94

4.92
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1

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2

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3

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4
5
6
7
Sample number

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A Process Is in
Control If
1. There are no sample points outside limits &
2. Most points are near the process average &
3. The number of points above and below the
center line is about equal &
4. The points appear to be randomly distributed
This is only a rough guide. Quality analysts
use more precise rules.
Copyright 2009 John Wiley & Sons, Inc.

3-29

R- Chart
UCL = D4R

LCL = D3R

R
R=
k
where
R = range of each sample
k = number of samples
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3-30

R-Chart Example
OBSERVATIONS (SLIP-RING DIAMETER, CM)
SAMPLE k

1
2
3
4
5
6
7
8
9
10

5.02
5.01
4.99
5.03
4.95
4.97
5.05
5.09
5.14
5.01

5.01
5.03
5.00
4.91
4.92
5.06
5.01
5.10
5.10
4.98

4.94
5.07
4.93
5.01
5.03
5.06
5.10
5.00
4.99
5.08

4.99
4.95
4.92
4.98
5.05
4.96
4.96
4.99
5.08
5.07

4.96
4.96
4.99
4.89
5.01
5.03
4.99
5.08
5.09
4.99

4.98
5.00
4.97
4.96
4.99
5.01
5.02
5.05
5.08
5.03

0.08
0.12
0.08
0.14
0.13
0.10
0.14
0.11
0.15
0.10

50.09

1.15

Example 15.3
Copyright 2009 John Wiley & Sons, Inc.

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R-Chart Example (cont.)


UCL = D4R = 2.11(0.115) =
0.243
LCL = D3R = 0(0.115) = 0
Retrieve Factor Values D3 and D4

Example 15.3
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R-Chart Example (cont.)


0.28
0.24

Range

0.20
0.16
0.12

UCL = 0.243
R = 0.115

0.08
0.04
0

LCL = 0
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2
3

Copyright 2009 John Wiley & Sons, Inc.

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5
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Sample number

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Using x- bar and R-Charts


Together
Process average and process variability must be
in control
It is possible for samples to have very narrow
ranges, but their averages might be beyond
control limits
It is possible for sample averages to be in
control, but ranges might be very large
It is possible for an R-chart to exhibit a distinct
downward trend, suggesting some nonrandom
cause is reducing variation
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Non-random Patterns in Control Charts


Change in Mean
UCL

UCL
LCL
Sample observations
consistently below the
center line

LCL
Sample observations
consistently above the
center line

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Non-random Patterns in Control Charts


Trend
UCL

UCL
LCL
Sample observations
consistently increasing

LCL
Sample observations
consistently decreasing

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Process Capability
Tolerances

design specifications reflecting product


requirements

Process capability

range of natural variability in a process


what we measure with control charts

A capable process consistently produces


products that conform to specifications
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Copyright 2009 John Wiley & Sons, Inc.


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Copyright
2009 John
Wiley & Sons,