Chapter 3

Statistical Process Control

Russell & Taylor

Operations Management, 9th Edition
 Statistical Process Control (SPC)
• Statistical Process Control
• monitoring production process
to detect and prevent poor UCL
quality
• Sample
• subset of items produced to
use for inspection LCL
• Control Charts
• process is within statistical
control limits

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 Process Variability

• Random • Non-Random
• inherent in a process • special causes
• depends on equipment • identifiable and
and machinery, correctable
engineering, operator, • include equipment out of
and system of adjustment, defective
measurement materials, changes in
• natural occurrences parts or materials, broken
machinery or equipment,
operator fatigue or poor
work methods, or errors
due to lack of training

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 SPC in Quality Management
• SPC uses
• Is the process in control?
• Identify problems in order to make
improvements
• Contribute to the TQM goal of continuous
improvement

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 Quality Measures:
Attributes and Variables
• Attribute
• A characteristic which is evaluated with a
discrete response
• good/bad; yes/no; correct/incorrect
• Variable measure
• A characteristic that is continuous and can be
measured
• Weight, length, voltage, volume

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 SPC Applied to Services
• Nature of defects is different in services
• Service defect is a failure to meet customer requirements
• Monitor time and customer satisfaction

• Hospitals
• timeliness & quickness of care, staff responses to requests, accuracy of lab tests, cleanliness, courtesy, accuracy of
paperwork, speed of admittance & 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 & luggage handling, waiting time at ticket counters & check-in, agent & flight attendant
courtesy, accurate flight information, cabin cleanliness & maintenance

• Fast-food restaurants
• waiting time for service, customer complaints, cleanliness, food quality, order accuracy, employee courtesy

• Catalog-order companies
• order accuracy, operator knowledge & courtesy, packaging, delivery time, phone order waiting time

• Insurance companies
• billing accuracy, timeliness of claims processing, agent availability & response time

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 Control Charts
• A graph that monitors process quality
• Control limits
• upper and lower bands of a control chart
• Attributes chart
• p-chart
• c-chart
• Variables chart
• mean (x bar – chart)
• range (R-chart)
• Where to use control charts
• Process
• Has a tendency to go out of control
• Is particularly harmful and costly if it goes out of control
• Examples
• At beginning of process because of waste to begin production process with
bad supplies
• Before a costly or irreversible point, after which product is difficult to rework
or correct
• Before and after assembly or painting operations that might cover defects
• Before the outgoing final product or service is delivered

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 Process Control Chart
Out of control
Upper
control
limit

Process
average

Lower
control
limit

1 2 3 4 5 6 7 8 9 10
Sample number

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 Normal Distribution
• Probabilities for Z= 2.00 and Z = 3.00

95%
99.74%
-3s -2s -1s µ=0 1s 2s 3s

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 A Process Is in Control If …

1. … no sample points outside limits

2. … most points near process average
3. … about equal number of points above
and below centerline
4. … points appear randomly distributed

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 Control Charts for Attributes
UCL = p + zsp
• p-chart
LCL = p - zsp
• uses portion defective in a sample
• z = number of standard deviations from process average
• p = sample proportion defective; estimates process mean
• sp = standard deviation of sample proportion

p(1 - p)
sp = n

• c-chart
• uses number of defects (non-conformities) in a sample

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 p-Chart in Excel
Click on “Insert” then “Charts”
to construct control chart

I4 + 3*SQRT(I4*(1-I4)/100)

I4 - 3*SQRT(I4*(1-I4)/100)

Column values copied

from I5 and I6
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 Construction of p-Chart

NUMBER OF PROPORTION
SAMPLE # DEFECTIVES DEFECTIVE
1 6 .06
2 0 .00
3 4 .04
: : :
: : :
20 18 .18
200

20 samples of 100 pairs of jeans

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 Construction of p-Chart

total defectives
p= =
total sample observations

p(1 - p)
UCL = p + z =
n
UCL =

p(1 - p)
LCL = p - z =
n
LCL =

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 Construction of p-Chart

total defectives
p= = 200 / 20(100) = 0.10
total sample observations

p(1 - p) 0.10(1 - 0.10)

UCL = p + z = 0.10 + 3
n 100
UCL = 0.190

p(1 - p) 0.10(1 - 0.10)

LCL = p - z = 0.10 - 3
n 100
LCL = 0.010

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 Construction of p-Chart

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 c-Chart

UCL = c + zsc
sc = c
LCL = c - zsc

where
c = number of defects per sample

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 c-Chart
Number of defects in 15 sample rooms
NUMBER
OF
SAMPLE DEFECTS

1 12 c=
2 8 UCL = c + zsc
3 16
: : LCL = c - zsc
: :
15 15
190

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 c-Chart
Number of defects in 15 sample rooms
NUMBER
OF
SAMPLE DEFECTS
190
1 12 c= = 12.67
15
2 8
UCL = c + zsc
3 16
= 12.67 + 3 12.67
: : = 23.35
: : LCL = c - zsc
15 15 = 12.67 - 3 12.67
190 = 1.99

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c-Chart

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 Control Charts for Variables

§ Range chart ( R-Chart )

§ Plot sample range (variability)
§ Mean chart ( x -Chart )
§ Plot sample averages

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 x-bar Chart Example: s Known
Observations(Slip-Ring Diameter, cm) n

Sample k 1 2 3 4 5
-
x

We know σ = .08

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 x-bar Chart: s Known

UCL = =
x + z sx-
LCL = =
x - z s-x
Where - + x- + ... + x-
= x 1 2 k
X= k
s = process standard deviation
sx = standard deviation of sample means =s/ n
k = number of samples (subgroups)
n = sample size (number of observations)

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 x-bar Chart Example: s Known

= x- 1 + x- 2 + ... + x- k
X= k

=
UCL = =
x + z s-x LCL = x - z s-x

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3-24
 x-bar Chart Example: s Known

= 50.09
X = _____ = 5.01
10
=
UCL = x + z s-x LCL = =x - z s-x
= 5.01 + 3(.08 / 10) = 5.01 - 3(.08 / 10)
= 5.09 = 4.93

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 x-bar Chart Example: s Unknown

_ _
UCL = =x + A2R LCL = =x - A2R

where
=
x = average of the sample means
_
R = average range value

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3-26
Control Sample
Size Factor for X-chart Factors for R-chart
n A2 D3 D4
Chart 2
3
1.880
1.023
0.000
0.000
3.267
2.575

Factors 4
5
0.729
0.577
0.000
0.000
2.282
2.114
6 0.483 0.000 2.004
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
11 0.285 0.256 1.744
12 0.266 0.283 1.717
13 0.249 0.307 1.693
14 0.235 0.328 1.672
15 0.223 0.347 1.653
16 0.212 0.363 1.637
17 0.203 0.378 1.622
18 0.194 0.391 1.609
19 0.187 0.404 1.596
20 0.180 0.415 1.585
21 0.173 0.425 1.575
22 0.167 0.435 1.565
23 0.162 0.443 1.557
24 0.157 0.452 1.548
25 0.153 0.459 1.541

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 x-bar Chart Example: s Unknown
OBSERVATIONS (SLIP- RING DIAMETER, CM)
SAMPLE k 1 2 3 4 5 x R
1 5.02 5.01 4.94 4.99 4.96 4.98 0.08
2 5.01 5.03 5.07 4.95 4.96 5.00 0.12
3 4.99 5.00 4.93 4.92 4.99 4.97 0.08
4 5.03 4.91 5.01 4.98 4.89 4.96 0.14
5 4.95 4.92 5.03 5.05 5.01 4.99 0.13
6 4.97 5.06 5.06 4.96 5.03 5.01 0.10
7 5.05 5.01 5.10 4.96 4.99 5.02 0.14
8 5.09 5.10 5.00 4.99 5.08 5.05 0.11
9 5.14 5.10 4.99 5.08 5.09 5.08 0.15
10 5.01 4.98 5.08 5.07 4.99 5.03 0.10
Totals 50.09 1.15

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 x-bar Chart Example: s Unknown
_ ∑R
____
R= k

_
= åx
___
x=
k
_
=
UCL = x + A2R
_
=
LCL = x - A2R

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 x-bar Chart Example: s Unknown
_ ∑R
____ 1.15
____
R= k = 10 = 0.115

_
= åx
___ 50.09
_____
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

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 x- bar
Chart
Example

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 R- Chart

UCL = D4R LCL = D3R

åR
R=
k
Where
R = range of each sample
k = number of samples (sub groups)

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 R-Chart Example

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 R-Chart Example
OBSERVATIONS (SLIP- RING DIAMETER, CM)
SAMPLE k 1 2 3 4 5 x R
1 5.02 5.01 4.94 4.99 4.96 4.98 0.08
2 5.01 5.03 5.07 4.95 4.96 5.00 0.12
3 4.99 5.00 4.93 4.92 4.99 4.97 0.08
4 5.03 4.91 5.01 4.98 4.89 4.96 0.14
5 4.95 4.92 5.03 5.05 5.01 4.99 0.13
6 4.97 5.06 5.06 4.96 5.03 5.01 0.10
7 5.05 5.01 5.10 4.96 4.99 5.02 0.14
8 5.09 5.10 5.00 4.99 5.08 5.05 0.11
9 5.14 5.10 4.99 5.08 5.09 5.08 0.15
10 5.01 4.98 5.08 5.07 4.99 5.03 0.10
Totals 50.09 1.15

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 R-Chart Example
_
UCL = D4R =
_
LCL = D3R =

Retrieve chart factors D3 and D4

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 R-Chart Example
_
UCL = D4R = 2.11(0.115) = 0.243
_
LCL = D3R = 0(0.115) = 0

Retrieve chart factors D3 and D4

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X-bar and R charts – Excel & OM Tools

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 Using x- bar and R-Charts Together
• Process average and process variability must be
in control
• Samples can have very narrow ranges, but
sample averages might be beyond control limits
• Or, sample averages may be in control, but
ranges might be out of control
• An R-chart might show a distinct downward
trend, suggesting some nonrandom cause is
reducing variation

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 Control Chart Patterns
• Run
• sequence of sample values that display same
characteristic
• Pattern test
• determines if observations within limits of a control
chart display a nonrandom pattern
• To identify a pattern look for:
• 8 consecutive points on one side of the center line
• 8 consecutive points up or down
• 14 points alternating up or down
• 2 out of 3 consecutive points in zone A (on one side of
center line)
• 4 out of 5 consecutive points in zone A or B (on one
side of center line)
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 Control Chart Patterns

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 Zones for Pattern Tests
UCL =
3 sigma = x + A2R
Zone A
= 2
2 sigma = x + 3 (A2R)

Zone B
= 1
1 sigma = x + 3 (A2R)

Process Zone C =
x
average
Zone C
=
1 sigma = x - 1 (A2R)
3
Zone B
= 2
2 sigma = x - 3 (A2R)
Zone A
=
LCL 3 sigma = x - A2R
| | | | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10 11 12 13
Sample number

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 Sample Size Determination

• Attribute charts require larger sample sizes

• 50 to 100 parts in a sample

• Variable charts require smaller samples

• 2 to 10 parts in a sample

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 Performing a Pattern Test

SAMPLE x ABOVE/BELOW UP/DOWN ZONE

1 4.98 B — B
2 5.00 B U C
3 4.95 B D A
4 4.96 B D A
5 4.99 B U C
6 5.01 — U C
7 5.02 A U C
8 5.05 A U B
9 5.08 A U A
10 5.03 A D B

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 SPC with Excel

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 Process Capability

• Compare natural variability to design variability

• Natural variability
• What we measure with control charts
• Process mean = 8.80 oz, Std dev. = 0.12 oz
• Tolerances
• Design specifications reflecting product
requirements
• Net weight = 9.0 oz ± 0.5 oz
• Tolerances are ± 0.5 oz

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 SPC with OM Tools

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 Process Capability
Design
Specifications

(a) Natural variation

exceeds design
specifications; process is
not capable of meeting
specifications all the
time.
Process
Design
Specifications

(b) Design specifications

and natural variation the
same; process is capable
of meeting specifications
most of the time.

Process
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 Process Capability
Design
Specifications

(c) Design specifications

greater than natural
variation; process is
capable of always
conforming to
specifications.
Process
Design
Specifications

(d) Specifications greater

than natural variation, but
process off center; capable
but some output will not
meet upper specification.

Process

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 Process Capability Measures: Ratio

tolerance range
Cp =
process range

upper spec limit - lower spec limit

=
6s

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 Computing Cp

Net weight specification = 9.0 oz ± 0.5 oz

Process mean = 8.80 oz
Process standard deviation = 0.12 oz

upper specification limit -

lower specification limit
Cp =
6s

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 Computing Cp

Net weight specification = 9.0 oz ± 0.5 oz

Process mean = 8.80 oz
Process standard deviation = 0.12 oz

upper specification limit -

lower specification limit
Cp =
6s

9.5 - 8.5
= = 1.39
6(0.12)

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 Process Capability Index

=
x - lower specification limit
,
3s
Cpk = minimum =
upper specification limit - x
3s

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 Computing Cpk

Net weight specification = 9.0 oz ± 0.5 oz

Process mean = 8.80 oz
Process standard deviation = 0.12 oz
=
x - lower specification limit
,
Cpk = minimum 3s
=
upper specification limit - x
3s

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 Computing Cpk

Net weight specification = 9.0 oz ± 0.5 oz

Process mean = 8.80 oz
Process standard deviation = 0.12 oz
=
x - lower specification limit
,
Cpk = minimum 3s
=
upper specification limit - x
3s

8.80 - 8.50 9.50 - 8.80

= minimum , = 0.83
3(0.12) 3(0.12)

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 Process Capability With Excel

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Process Capability With OM Tools

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