1

Quality Management
Part 2: Statistical Process Control
 2

OBJECTIVES

Statistical Process Control

Control Charts
x-chart and R-chart
p-chart
Process Capability
 3

Variation in Process Outputs

Any process must have variation in its outputs

e.g.) weights of cereal boxes
We can not eliminate the variation completely, but
should minimize it
Two basic categories of variation
Common (or random) variation is inherent and
unavoidable with the current process
Assignable variation is caused by factors that can be
identified and possibly eliminated
e.g.) variation caused by improper machine adjustment or
workers not well trained
 4

Statistical Process Control (SPC)

Statistical process control is the application

of statistical techniques to monitor and
control a process
SPC deals with two types of quality
characteristics
Variables (Continuous)
e.g.) weight of a cereal box
Attributes (good or bad)
e.g.) whether a light bulb is working or not
 5

Control Charts

Control chart is a time-ordered diagram

used in SPC to determine whether a
process is in (statistical) control
A control chart has a central line and two
control limits
CL: Central Line
UCL: Upper Control Limit
LCL: Lower Control Limit
 6

Monitoring and Controlling a Process

using Control Charts
UCL

Normal Behavior CL

LCL
Samples over time

Possible problem, investigate

Possible problem, investigate

 7

Monitoring and Controlling a Process

using Control Charts (Contd)

When the sample statistic from a sample

falls outside the control limits, we conclude
that the process is out of control and
investigate the process

UCL

CL

LCL
 8

Considerations in Determining
Control Limits
The sample statistic is random
The sample statistic from a sample can fall outside
control limits when actually the process is in control
The sample statistic from a sample can fall inside
control limits when actually the process is out of control
Costs of investigating the process vs. ability to
detect problems

UCL

CL

LCL
 9

Standard Practice in SPC

Standard practice in SPC is to set control limits as

plus/minus 3 standard deviations of the sample
statistic from the central line, so that we can
expect 99.73% of our sample data to fall within
these limits when the process is in control

99.73%

LCL CL UCL
 10

Sample Statistic
Sample mean = average value of observations in
a sample
Sample range = difference between the largest
and the smallest observations in a sample

15 Sample mean = (15+12+21)/3 = 16

12
21 Sample range = 21 12 = 9

Sample proportion = proportion of defectives in a

sample
Example: 2 defective items in a sample of 50 items
Sample proportion = 2/50 = 0.04
 11

Types of Control Charts

Control charts for variables

-chart
R-chart
Control chart for attributes
p-chart
 12

Control Charts for Variables

-chart
is used to monitor the mean of the
process output
= sample mean
R-chart is used to monitor the variability of
the process output
R = sample range
 13

-chart
Backgrounds about

=
= mean of the sample mean
= mean of the process output
=
= standard deviation of the sample mean
= standard deviation of the process output
= sample size
is approximately normally distributed
(according to the central limit theorem)
 14

-chart (Contd)
Backgrounds about

Central line (CL) is set by:

Target value of the mean of the process output, or
Current mean of the process (or its estimate)
If the process is in control, the values of the
sample mean () should be around CL
Determining control limits
If (or its accurate estimate) is known, the control limits
can be set by UCL = CL + 3 and LCL = CL 3 ,
where =
If is not known, 3 can be estimated by 2
See the next slide for more details
 15

Determining CL, UCL, and LCL

for x -chart and R-chart
Compute x = average of sample means ( x )
R = average of sample ranges (R)
n A2 D3 D4
Determine CL, UCL, and LCL
2 1.880 0.000 3.267
3 1.023 0.000 2.575
-chart
R-chart
4 0.729 0.000 2.282
CL = x CL R
5 0.577 0.000 2.115
UCL = x A2 R UCL D4 R 6 0.483 0.000 2.004
LCL = x A2 R LCL D3 R 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
The values of A2, D3, and D4 depend on
sample size (n) = number of observations in a sample
 16

Steps for Constructing and Using

x -chart and R-chart
1. Collect data
2. Compute sample ranges
3. Determine R-chart control limits
4. Plot the sample ranges on the R-chart.
If all are in control, proceed to step 5.
Otherwise, find the assignable causes,
correct them, and return to step 1.
 17

Steps for Constructing and Using

x -chart and R-chart
5. Compute sample means
6. Determine x -chart control limits
7. Plot the sample means on the x -chart.
If all are in control, proceed to step 8.
Otherwise, find the assignable causes,
correct them, and return to step 1.
8. Continue to take random samples and
monitor the process
 18

Example of x -chart and R-chart

The management of West Allis Industries is

concerned about the production of a special
metal screw used by several of the
companys largest customers. The diameter
of the screw is critical to the customers. The
management wants to establish x -chart and
R-chart with sample size of 5 items to
monitor the production process.
 19
Example of x -chart and R-chart:
1. Collect Data
Sample Obs 1 Obs 2 Obs 3 Obs 4 Obs 5
1 10.682 10.689 10.776 10.798 10.714
2 10.787 10.86 10.601 10.746 10.779
3 10.78 10.667 10.838 10.785 10.723
4 10.591 10.727 10.812 10.775 10.73
5 10.693 10.708 10.79 10.758 10.671
6 10.749 10.714 10.738 10.719 10.606
7 10.791 10.713 10.689 10.877 10.603
8 10.944 10.979 11.156 10.895 10.855
9 10.769 10.773 10.641 10.644 10.725
10 10.718 10.671 10.708 10.85 10.712
11 10.787 10.821 10.764 10.658 10.708
12 10.622 10.802 10.818 10.872 10.727
13 10.657 10.822 10.893 10.544 10.75
14 10.806 10.749 10.859 10.801 10.701
15 10.66 10.681 10.644 10.747 10.728
 20
Example of x -chart and R-chart:
2. Compute Sample Ranges
Sample Obs 1 Obs 2 Obs 3 Obs 4 Obs 5 Range
1 10.682 10.689 10.776 10.798 10.714 0.116
2 10.787 10.86 10.601 10.746 10.779 0.259
3 10.78 10.667 10.838 10.785 10.723 0.171
4 10.591 10.727 10.812 10.775 10.73 0.221
5 10.693 10.708 10.79 10.758 10.671 0.119
6 10.749 10.714 10.738 10.719 10.606 0.143
7 10.791 10.713 10.689 10.877 10.603 0.274
8 10.944 10.979 11.156 10.895 10.855 0.301
9 10.769 10.773 10.641 10.644 10.725 0.132
10 10.718 10.671 10.708 10.85 10.712 0.179
11 10.787 10.821 10.764 10.658 10.708 0.163
12 10.622 10.802 10.818 10.872 10.727 0.250
13 10.657 10.822 10.893 10.544 10.75 0.349
14 10.806 10.749 10.859 10.801 10.701 0.158
15 10.66 10.681 10.644 10.747 10.728 0.103

Average 0.196
 21
Example of x -chart and R-chart :
3. Determine R-Chart Control Limits

R-chart control limits n A2 D3 D4

2 1.880 0.000 3.267
CL R 0.196 3 1.023 0.000 2.575
4 0.729 0.000 2.282
UCL D4 R (2.115)(0.196) 5 0.577 0.000 2.115
0.415 6 0.483 0.000 2.004
7 0.419 0.076 1.924
LCL D3 R (0)(0.196) 8 0.373 0.136 1.864
0 9 0.337 0.184 1.816
10 0.308 0.223 1.777

In this example, sample size (n) = 5

 22
Example of x -chart and R-chart :
4. Plot the Sample Ranges

R-Chart
0.600

0.500

0.400 UCL
Range

0.300

0.200
CL
0.100

0.000 LCL
0 2 4 6 8 10 12 14 16 18 20

Sample
 23

Example of x -chart and R-chart :

5. Compute Sample Means
Sample Obs 1 Obs 2 Obs 3 Obs 4 Obs 5 Avg
1 10.682 10.689 10.776 10.798 10.714 10.732
2 10.787 10.86 10.601 10.746 10.779 10.755
3 10.78 10.667 10.838 10.785 10.723 10.759
4 10.591 10.727 10.812 10.775 10.73 10.727
5 10.693 10.708 10.79 10.758 10.671 10.724
6 10.749 10.714 10.738 10.719 10.606 10.705
7 10.791 10.713 10.689 10.877 10.603 10.735
8 10.944 10.979 11.156 10.895 10.855 10.966
9 10.769 10.773 10.641 10.644 10.725 10.710
10 10.718 10.671 10.708 10.85 10.712 10.732
11 10.787 10.821 10.764 10.658 10.708 10.748
12 10.622 10.802 10.818 10.872 10.727 10.768
13 10.657 10.822 10.893 10.544 10.75 10.733
14 10.806 10.749 10.859 10.801 10.701 10.783
15 10.66 10.681 10.644 10.747 10.728 10.692

Average 10.751
 24
Example of x -chart and R-chart :
6. Determine x -chart Control Limits

x -chart control limits

n A2 D3 D4
CL x 10.751
2 1.880 0.000 3.267
UCL x A2 R 3 1.023 0.000 2.575
10.751 + 0.577(0.196) 4 0.729 0.000 2.282
5 0.577 0.000 2.115
10.864 6 0.483 0.000 2.004
LCL x A2 R 7 0.419 0.076 1.924
8 0.373 0.136 1.864
10.751 - 0.577(0.196)
9 0.337 0.184 1.816
10.638 10 0.308 0.223 1.777

In this example, sample size (n) = 5

 25
Example of x -chart and R-chart :
7. Plot the Sample Means

x -Chart

11.000

10.950

10.900
Sample mean

10.850 UCL
10.800

10.750 CL
10.700

10.650
LCL
10.600

10.550
0 2 4 6 8 10 12 14 16 18 20

Sample
 26

Control Charts for Attributes

p-chart is used to monitor the proportion of

defectives in process outputs
p = sample proportion
 27

Backgrounds about p-chart

= 0 and = 0 1 0
= mean of the sample proportion
0 = population proportion of defectives
= standard deviation of the sample proportion
= sample size
p is approximately normally distributed
(according to the central limit theorem)
 28

Backgrounds about p-chart (Contd)

Central line (CL) is set by:

Target value of the proportion of defectives in process
outputs, or
Current proportion of defectives in process outputs (or
its estimate)
If the process is in control, the values of the
sample proportion (p) should be around CL
Determining control limits
Estimate by using = 1 , where is the
CL value
The control limits can be set by UCL = CL + 3 and
LCL = CL 3
 29
Determining CL, UCL and LCL
for p-Chart
p average of sample proportions
Total number of defectives

Total number of observations
s p estimate of standard deviation of p
p 1 p
=
n
CL = p
UCL = p z s p
LCL = p z s p
z = number of standard deviations from the central line
(typically z=3)
n = sample size (number of observations in a sample)
 30

Steps for Constructing and Using

p-Chart

1. Collect data
2. Compute sample proportions
3. Determine p-chart control limits
4. Plot the sample proportions on the p-chart.
If all are in control, proceed to step 5.
Otherwise, find the assignable causes,
correct them, and return to step 1
5. Continue to take random samples and
monitor the process
 31

Example of p-Chart

The data processing department of Arizona

Bank has several data entry clerks. Their
supervisor wants to monitor the accuracy of
the data entry work by using a p-chart with a
sample size of 100 records. A record
containing one or more errors is considered
defective and must be redone. Establish a p-
chart with 3-sigma control limits.
 32
Example of p-Chart:
1. Collect Data
Sample Sample Number of defective
No. size records in each sample
1 100 4
2 100 2
3 100 5
4 100 3
5 100 6
6 100 4
7 100 3
8 100 7
9 100 1
10 100 2
11 100 3
12 100 2
13 100 2
14 100 8
15 100 3
 33

Example of p-Chart:
2. Compute Sample Proportions

Sample n Defects p
1 100 4 0.04
2 100 2 0.02
3 100 5 0.05
4 100 3 0.03
5 100 6 0.06
6 100 4 0.04
7 100 3 0.03
8 100 7 0.07
9 100 1 0.01
10 100 2 0.02
11 100 3 0.03
12 100 2 0.02
13 100 2 0.02
14 100 8 0.08
15 100 3 0.03
 34

Example of p-Chart:
3. Determine p-Chart Control Limits

Calculate the average of the sample proportions

total # of defectives 55
p 0.0367
total # of observations 1500

Calculate an estimate of the standard deviation of

sample proportion

p 1 p 0.0367 1 0.0367
sp 0.0188
n 100
 35

Example of p-Chart:
3. Determine p-Chart Control Limits

Set CL and compute 3-sigma control limits

CL = p 0.0367
UCL = p 3 s p = 0.0367 + 3 0.0188
= 0.0931
LCL = p 3 s p = 0.0367 3 0.0188
= 0.0197 (or 0)
 36
Example of p-Chart:
4. Plot the Sample Proportions

p-Chart
0.1
0.09 UCL
0.08
0.07
0.06
p 0.05
0.04
CL
0.03
0.02
0.01
0 LCL
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Observation
 37

Process Capability

Process capability is the ability of the

process to meet the design specifications
for the product or service
Design specifications are expressed by:
Nominal value (NV)
Upper specification limit (USL)
Lower specification limit (LSL)
 38

Process Capability (Contd)

Distribution of
process outputs

LSL NV USL LSL NV USL

Process is capable Process is not capable

 39

Process Capability Index, Cpk

Process capability index (Cpk) measures

how well the process is centered and
whether the process variability is acceptable

x LSL USL x
Cpk = min ,
3 3

x = Mean of the process output

= Standard deviation of the process output
 40

Process Capability Ratio, Cp

Process capability ratio (Cp) measures

whether the process variability is
acceptable

USL LSL
Cp =
6
 41

Cpk vs. Cp

x LSL USL x
Cpk = min ,
3 3

USL LSL
Cp =
6

LSL NV USL

If x is located at the middle of USL and LSL, then

Cpk = Cp
 42

Example of Process Capability

Suppose that we are a manufacturer of cereals.

The weight of a cereal box is supposed to be 16
ounces.
Suppose that a government regulation says that
the weight of a cereal box must be within 5
percent of the weight advertised.
Suppose that we go out and take 1,000 boxes of
cereal and find that their average weight is
15.875 ounces with standard deviation of 0.529
ounces
 43

Example of Process Capability (Contd)

Nominal value = 16 ounces

Upper Specification Limit
= 16 + .05(16) = 16.8 ounces
Lower Specification Limit
= 16 .05(16) = 15.2 ounces
x 15.875 ounces

0.529 ounces
 44

Example of Process Capability:

Process Capability Index

x LSL USL x
C pk min ,
3 3
15.875 15.2 16.8 15.875
min ,
3(0.529) 3(0.529)
min 0.425, 0.583
0.425
 45

Example of Process Capability:

Process Capability Ratio

USL LSL
Cp
6
16.8 15.2

6 0.529

0.504
 46

Target Process Capability

Many companies are targeting Cpk = 1.33

Cpk = 1.33 means four-sigma quality
The mean plus/minus 4 sigma of the process
output is within the specification limits

4 4

LSL USL
 47

Cpk = 1.33 means Four-Sigma Quality

= min , = 1.33
3 3

1.33 1.33
3 3

LSL 4 + 4 USL
 48

Four-Sigma Quality

99.9937%
4 4

LSL USL

Theoretically, four-sigma quality means that 99.9937% of

the process outputs are within the specification limits
(defective rate of 0.0063%)
 49

Cpk, Sigma Level and Defective Rate

Cpk Sigma Defective Rate (DPMO)

Level Theoretically Practically
1 3 2700 66,811
(or 0.27%) (or 6.6811%)
1.33 4 63 6,210
(or 0.0063%) (or 0.621%)
2 6 0.002 3.4
* DPMO: Defects Per Million Opportunities
 50

Process Capability Analysis

Given specification limits and a target Cpk value,
1. Obtain the mean and standard deviation of the
process output
2. Calculate the process capability index (Cpk)
3. If Cpk target value, the process is capable.
If not, calculate the process capability ratio (Cp)
4. If Cp target value, the process variability is fine
and management should focus on centering the
process.
If not, management should focus on reducing the
variability of the process outputs as well as
centering the process