PROCESS PERFORMANCE

AND QUALITY
 Basics of Statistical
Process Control
 Statistical Process Control
(SPC)
 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
 Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
Each of these
represents one
sample of five
(a) Samples of the boxes of cereal
product, say five
boxes of cereal Frequency
taken off the filling # #

machine line, vary # # #

from each other in # # # #

weight # # # # # # #

# # # # # # # # # #

Weight
 Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
The solid line
represents the
distribution
(b) After enough
samples are
taken from a Frequency
stable process,
they form a
pattern called a
distribution

Weight
 Control Charts

 A graph that establishes  Types of charts

control limits of a
process  Attributes
 Control limits  p-chart
 upper and lower bands of  c-chart
a control chart
 Variables
 range (R-chart)
 mean (x bar – chart)
 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
Normal Distribution

95%
99.74%
-3 -2 -1 =0 1 2 3
 Control Charts for
Attributes

 p-charts
 uses portion defective in a sample
 c-charts
 uses number of defects in an item
p-Chart

UCL = p + zp
LCL = p - zp
z = number of standard deviations from
process average
p = sample proportion defective; an estimate
of process average
p = standard deviation of sample proportion

p(1 - p)
p = n
 p-Chart Example
The Operations Manager of the booking services
department of Hometown Bank is concerned about
the number of wrong customer account numbers
recorded by its personnel. Each week a random
sample of 2500 deposits is taken, and the number
of incorrect account numbers is recorded. The
results for the past 12 weeks are shown in the table
below.
Find out whether the process is out of control. Use
three-sigma control limits.
 Control Charts
for Attributes
Sample Wrong Hometown Bank
Number Account Number
1 15 n = 2500
2 12
UCLp = p + z
3 19 p
Total defectives
4 2
5 19 p = Total observations
LCLp = p - z
6 4 p
7 24
8 7
p =
9 p(1 - p)/n
10
10 17
11 15
12 3
 Control Charts
for Attributes
Sample Wrong
Number Account Number Hometown Bank
1 15
2 12
n = 2500
3 19
UCLp = p + z
4 2 p 147
5 19
6 4 p=
LCLp = p - z
7 24 p
12(2500)
8 7
9 10
10p = p(1 -17p)/n
11 15
12 3
Total 147
 Control Charts
for Attributes
Sample Wrong
Number Account Number Hometown Bank
1 15
2 12
n = 2500
3 19
UCLp = p + z
4 2 p
5 19
6 4 p = 0.0049
LCLp = p - z
7 24 p
8 7
9 10
p10= p(1 - p)/n
17
11 15
12 3
Total 147
 Control Charts
for Attributes
Sample Wrong Proportion
Number Hometown Bank
Account Number Defective
1 15 0.006
2 12 0.0048
n = 2500
3 19 0.0076
UCLp = p + z
4 2 p 0.0008
5 19 0.0076
6 4 0.0016 p = 0.0049
LCLp = p - z
7 24 p 0.0096
8 7 0.0028
9 10 0.004
10p = p(1 -17p)/n 0.0068
11 15 0.006
12 3 0.0012
Total 147
 Control Charts
for Attributes
Hometown Bank
n = 2500 p = 0.0049

UCLp = p + zp
LCLp = p – zp

p = p(1 – p)/n
 Control Charts
for Attributes
Hometown Bank
n = 2500 p = 0.0049

UCLp = p + zp
LCLp = p – zp

p = 0.0049(1 – 0.0049)/2500
 Control Charts
for Attributes
Hometown Bank
n = 2500 p = 0.0049

UCLp = p + zp
LCLp = p – zp

p = 0.0014
 Control Charts
for Attributes
Hometown Bank
n = 2500 p = 0.0049

UCLp = 0.0049 + 3(0.0014)

LCLp = 0.0049 – 3(0.0014)

p = 0.0014
 Control Charts
for Attributes
Hometown Bank
n = 2500 p = 0.0049

UCLp = 0.0091
LCLp = 0.0007

p = 0.0014
 p-Chart
Wrong Account Numbers
 p-Chart
Wrong Account Numbers

 Sample the process

 Find the assignable cause
 Eliminate the problem
 Repeat the cycle
c-Chart

UCL = c + zc
c = c
LCL = c - zc

where
c = number of defects per sample
 c-Chart Example
The Woodland paper company produces paper for the
newspaper industry. As a final step in the process, the
paper passes through a machine that measures various
quality characteristics. When the process is in control, it
averages 20 defects per roll.

a) Set up a control chart for the number of defects per roll.

Use 2-sigma control limits.

a) Five Rolls had 16, 21, 17, 22, and 24 defects respectively,
The sixth roll, using pulp from a different supplier had
5 defects. Is the process in control?
Control Charts
for Attributes

Woodland
Paper
Company
Woodland Control Charts
Paper
Company for Attributes

c = 20 z=2

UCLc = c + z c

LCLc = c – z c
Woodland Control Charts
Paper
Company for Attributes

c = 20 z=2

UCLc = 20 + 2 20

LCLc = 20 – 2 20
Woodland Control Charts
Paper
Company for Attributes

c = 20 z=2

UCLc = 28.94

LCLc = 11.06
Woodland Control Charts
Paper
Company for Attributes
 Woodland Control Charts
Paper
Company for Attributes
 Sample the process
 Find the assignable cause
 Incorporate the improvement
 Repeat the cycle
 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
x-bar Chart

x1 + x2 + ... xk
=
x= k
= =
UCL = x + A2R LCL = x - A2R

where
=
x = average of sample means
R- Charts

UCL = D4R LCL = D3R

R
R= k

where
R = range of each sample
k = number of samples
 Control Charts
for Variables

West Allis Industries

 x-bar Chart Example

The management of West Allis Industries is

concerned about the production of a special
metal screw used by the several of the
company’s largest customers. The diameter of
the screw is crucial. It is designed to be 0.5025”,
and the average range has been 0.0020”. Data
form the last five samples are shown in the
accompanying table. The sample size is 4. Is the
process under control?
 Control Charts
for Variables
Special Metal Screw
Sample Sample
_
Number 1 2 3 4 R x
1 0.5014 0.5022 0.5009 0.5027
2 0.5021 0.5041 0.5024 0.5020
3 0.5018 0.5026 0.5035 0.5023
4 0.5008 0.5034 0.5024 0.5015
5 0.5041 0.5056 0.5034 0.5039
 Control Charts
for Variables
Special Metal Screw
Sample Sample
_
Number 1 2 3 4 R x
1 0.5014 0.5022 0.5009 0.5027 0.0018 0.5018
2 0.5021 0.5041 0.5024 0.5020
3 0.5018 0.50260.5027
0.5035– 0.5023
0.5009 = 0.0018
4 0.5008 0.5034 0.5024 0.5015
5 0.5041 0.5056 0.5034 0.5039
 Control Charts
for Variables

Special Metal Screw

Sample Sample
_
Number 1 2 3 4 R x
1 0.5014 0.5022 0.5009 0.5027 0.0018 0.5018
2 0.5021 0.5041 0.5024 0.5020
3 0.5018 0.5027
0.5026 – 0.5009
0.5035 0.5023 = 0.0018
4 0.5008 0.5034 0.5024 0.5015
5 0.5041 0.5056 0.5034 0.5039
 Control Charts
for Variables
Special Metal Screw
Sample Sample
_
Number 1 2 3 4 R x
1 0.5014 0.5022 0.5009 0.5027 0.0018 0.5018
2 0.5021 0.5041 0.5024 0.5020
3 0.5018 0.5026 0.5035 0.5023
4 0.5008 0.5027
0.5034 – 0.5009
0.5024 0.5015 = 0.0018
5 0.5041 (0.5014
0.5056 0.5034+ 0.5022
0.5039 +
0.5009 + 0.5027)/4 = 0.5018
 Control Charts
for Variables
Control Charts – Special Metal Screw
R-Charts R = 0.0021

UCLR = D4R
LCLR = D3R
 Control Charts
for Variables
Control Chart Factors
Factor for UCL Factor for Factor
Size of and LCL for LCL for UCL for
Sample x-Charts R-Charts R-Charts
(n) (A2) (D3) (D4)
2 1.880 0 3.267
3 1.023 0 2.575
4 0.729 0 2.282
5 0.577 0 2.115
6 0.483 0 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
 Control Charts
for Variables
Control Charts—Special Metal Screw
R-Charts R = 0.0021 D4 = 2.282
D3 = 0
UCLR = D4R
LCLR = D3R
 Control Charts
for Variables
Control Charts—Special Metal Screw
R-Charts R = 0.0021 D4 = 2.282
D3 = 0
UCLR = D4R
LCLR = D3R

UCLR = 2.282 (0.0021) = 0.00479 in.

 Control Charts
for Variables
Control Charts—Special Metal Screw
R-Charts R = 0.0021 D4 = 2.282
D3 = 0
UCLR = D4R
LCLR = D3R

UCLR = 2.282 (0.0021) = 0.00479 in.

LCLR = 0 (0.0021) = 0 in.
 Control Charts
for Variables
Control Charts—Special Metal Screw
R-Charts R = 0.0021 D4 = 2.282
D3 = 0
UCLR = D4R
LCLR = D3R

UCLR = 2.282 (0.0021) = 0.00479 in.

LCLR = 0 (0.0021) = 0 in.
Range Chart -
Special Metal Screw
 Control Charts
for Variables
Control Charts—Special Metal Screw
X-Charts R = 0.0021
x= = 0.5027
=
UCLx = x + A2R
LCL = x= - A R
x 2
 Control Charts
for Variables
Control Chart Factors
Control Charts—Special Metal Screw
Factor for UCL Factor for Factor
X-Charts
Size of and LCLRfor = 0.0021 LCL for UCL for
Sample x= = 0.5027R-Charts
x-Charts R-Charts
(n) (A2) (D3) (D4)
UCL =
2 x=x+A 2R
1.880 0 3.267
LCL
3 = x= - A1.023
x R 2
0 2.575
4 0.729 0 2.282
5 0.577 0 2.115
6 0.483 0 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
 Control Charts
for Variables
Control Charts—Special Metal Screw
x-Charts R = 0.0021 A2 = 0.729
x= = 0.5027
=
UCLx = x + A2R
LCL = x= - A R
x 2
 Control Charts
for Variables
Control Charts—Special Metal Screw
x-Charts R = 0.0021 A2 = 0.729
x= = 0.5027
=
UCLx = x + A2R
LCL = x= - A R
x 2

UCLx = 0.5027 + 0.729 (0.0021) = 0.5042 in.

 Control Charts
for Variables
Control Charts—Special Metal Screw
x-Charts R = 0.0021 A2 = 0.729
x= = 0.5027
=
UCLx = x + A2R
LCL = x= - A R
x 2

UCLx = 0.5027 + 0.729 (0.0021) = 0.5042 in.

LCLx = 0.5027 – 0.729 (0.0021) = 0.5012 in.
x-Chart-Special Metal Screw
x-Chart-Special Metal Screw

 Sample the process

 Find the assignable cause
 Eliminate the problem
 Repeat the cycle
 Control Charts
for Variables Using 
The Sunny Dale bank monitors the time required to serve
customers at the drive-by window, because it is an
important quality factor in competing with other banks in
the city. After analyzing the data gathered in an extensive
study of the window operation, the bank management
determined that the mean time to process a customer at
the peak demand period has been 5 minutes with a
standard deviation of 1.5 minutes. Management wants to
monitor the mean time to process a customer by using a
sample size of 6 customers. Design an X-bar chart so that
there is a 2.5% chance each a sample result will fall below
the LCL and above the UCL. Is the process in control?
 Control Charts
for Variables Using 
=
UCLx = x + zx
Sunny Dale Bank
=
x = 5.0 minutes
=
LCL = x – z
x x  = 1.5 minutes
n = 6 customers
x = / n z = 1.96

UCLx = 5.0 + 1.96(1.5)/ 6 = 6.20 min

LCLx = 5.0 – 1.96(1.5)/ 6 = 3.80 min
 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
 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
 Process Capability (cont.)
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
Process Capability
Nominal value
Six sigma

Four sigma

Two sigma
Lower Upper
specification specification

Mean
Process Capability
Process Capability Ratio
Upper specification - Lower specification
Cp = 6

Process Capability Index

x= – Lower specification
Cpk = Minimum of
3
,
Upper specification – =
x
3
 Process Capability Ratio

Upper Specification - Lower Specification

Cp =
6

 A capable process must have a Cp of at

least 1.0
 Does not look at how well the process
is centered in the specification range
 Often a target value of Cp = 1.33 is used
to allow for off-center processes
 Six Sigma quality requires a Cp = 2.0
 Computing Cp

The light bulb production process yields bulbs

with an average life of 90 hours with a standard
deviation of 4.8 hours. The nominal value of the
tolerance range is 100 hours, with an upper
specification of 120 hours and a lower
specification of 80 hours. The operations
manager wants to determine whether the process
is capable of producing light bulbs to the
specification.
Process Capability

Light Bulb Production

Upper specification = 120 hours

Lower specification = 80 hours
Average life = 90 hours  = 4.8 hours
 Process Capability
Light Bulb Production
Upper specification = 120 hours
Lower specification = 80 hours
Average life = 90 hours σ = 4.8 hours
120 - 80
Cp = = 1.39
6(4.8)

Process
Capabilit
y
Ratio
Process Capability
Light Bulb Production
Upper specification = 120 hours
Lower specification = 80 hours
Average life = 90 hours σ = 4.8 hours

Cpk = Minimum of 90 – 80.0 120.0 – 90

3(4.8)
, 3(4.8)

Process
Capability Index
Process Capability
Light Bulb Production
Upper specification = 120 hours
Lower specification = 80 hours
Average life = 90 hours σ = 4.8 hours

Cpk = Minimum of 0.69, 2.08

Process
= 0.69
Capability Index
Process Capability
Light Bulb Production
The process capability ratio of 1.39 tells us that
the machine’s variability is acceptable relative to
the range of the tolerance limits. However the
process capability index tells us that the
distribution of output is too close to the lower
specification and that short-lived bulbs will be
produced. The manager should look for ways to
bring the average of the process closer to the
nominal value of the design specifications.
 SPC and Process Variability
Lower Upper
specification specification
limit limit (a) Acceptance
sampling (Some
bad units accepted)

(b) Statistical process

control (Keep the
process in control)

(c) Cpk >1 (Design

a process that
is in control)

Process mean, 