Session 04 - Fall 2023 - Statistical Process Control
Session 04 - Fall 2023 - Statistical Process Control
INTRODUCTION TO OPERATIONS
MANAGEMENT– MBA 2023
Learning Objectives
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required
■ Unacceptable results call for correction action
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Process Variability
● Two basic questions: concerning
variability:
Q1. Issue of Process Control
■ Are the variations random? If nonrandom
variation is present, the process is said to be
unstable.
Q2. Issue of Process Capability
■ Given a stable process, is the inherent variability
of the process within a range that conforms to
performance criteria?
● Variation
○ Random (common cause) variation:
■ Natural variation in the output of a process, created
by countless minor factors
○ Assignable (special cause) variation:
■ A variation whose cause can be identified.
■ A nonrandom variation
● Managements first job is to get rid of special cause
variation
● Once a process is “in control,” the only way to improve
performance is to reduce common cause variation
Examples?
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Two types of risks are involved in controlling quality. These risks have been given names to
identify the injured party. If a process is deemed to be out of control when it in fact is performing
correctly, a Type I error has occurred, which is the producer’s risk. If a process is deemed to be
functioning properly when it in fact is out of control, a Type II error has occurred, which is the
consumer’s risk.
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P-Chart
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P-Chart: Example
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c-Chart
● Use only when the number of occurrences per unit of
measure can be counted; non-occurrences cannot be
counted.
○ Scratches, chips, dents, or errors per item
○ Cracks or faults per unit of distance
○ Breaks or Tears per unit of area
○ Bacteria or pollutants per unit of volume
○ Calls, complaints, failures per unit of time
UCL c c z c
LCLc c z c
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c-Chart: Example
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Process Capability
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Process Capability
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Process Capability
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Specification control limits exceed process limits (for improved process) – process is
capable of meeting requirements
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UTL - LTL
Cp
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where
UTL upper tolerance (specification) limit
LTL lower tolerance(specification) limit
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C pk minC pu , C pl
UTL x x LTL
min ,
3 3
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In Class Problems…
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