Operations

Management
Supplement 6
Statistical Process Control
PowerPoint presentation to accompany
Heizer/Render
Principles of Operations Management, 6e
Operations Management, 8e
2006
Prentice
Hall, Inc. Hall, Inc.

2006
Prentice

S6 1

Statistical Process Control

(SPC)
Variability is inherent in every process
Natural or common causes
Special or assignable causes

Provides a statistical signal when

assignable causes are present
Detect and eliminate assignable
causes of variation
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S6 2

Natural Variations
Natural variations in the production
process
These are to be expected
Output measures follow a probability
distribution
For any distribution there is a measure
of central tendency and dispersion

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S6 3

Assignable Variations
Variations that can be traced to a specific
reason (machine wear, misadjusted
equipment, fatigued or untrained workers)
The objective is to discover when
assignable causes are present and
eliminate them

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S6 4

Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps

Figure S6.1
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Frequency

(a) Samples of the

product, say five
boxes of cereal
taken off the filling
machine line, vary
from each other in
weight

Each of these
represents one
sample of five
boxes of cereal

# #
# # #
# # # #
# # # # # # #
#

# # # # # # # # #

Weight
S6 5

Samples

Figure S6.1
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Frequency

(b) After enough

samples are
taken from a
stable process,
they form a
pattern called a
distribution

The solid line

represents the
distribution

Weight
S6 6

Samples

Frequency

(c) There are many types of distributions, including

the normal (bell-shaped) distribution, but
distributions do differ in terms of central
tendency (mean), standard deviation or
variance, and shape
Central tendency

Weight

Variation

Weight

Shape

Weight
Figure S6.1

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S6 7

(d) If only natural

causes of
variation are
present, the
output of a
process forms a
distribution that
is stable over
time and is
predictable

Frequency

Samples

Prediction

e
Tim

Weight
Figure S6.1

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S6 8

Samples

Frequency

(e) If assignable
causes are
present, the
process output is
not stable over
time and is not
predicable

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?? ??
?
?
?
?
?
?
?
?
?
??
?
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?

Prediction

e
Tim

Weight
Figure S6.1

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S6 9

Control Charts
Constructed from historical data, the
purpose of control charts is to help
distinguish between natural variations
and variations due to assignable
causes

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S6 10

Types of Data
Variables
Characteristics that
can take any real
value
May be in whole or
in fractional
numbers
Continuous random
variables
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Attributes
Defect-related
characteristics
Classify products
as either good or
bad or count
defects
Categorical or
discrete random
variables
S6 11

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

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S6 12

Setting Chart Limits

For x-Charts when we know
Upper control limit (UCL) = x + z x
Lower control limit (LCL) = x - z x
where

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x
=
mean of the sample means
or a target value set for the process
z
=
number of normal standard
deviations
x =
standard deviation of the
sample means
=
/ n

=
population standard

S6 13

Setting Control Limits

Hour 1
Sample
Weight of
Number
Oat Flakes
1
17
2
13
3
16
4
18
n=9
5
17
6
16
7
15
8
17
9
16
Mean 16.1
=1
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Hour
1
2
3
4
5
6

Mean
16.1
16.8
15.5
16.5
16.5
16.4

Hour
7
8
9
10
11
12

Mean
15.2
16.4
16.3
14.8
14.2
17.3

For 99.73% control limits, z = 3

UCLx = x + z x = 16 + 3(1/3) = 17 ozs
LCLx = x - z x = 16 - 3(1/3) = 15 ozs
S6 14

Setting Control Limits

Control Chart
for sample of
9 boxes

Out of
control

Variation due
to assignable
causes

17 = UCL
Variation due to
natural causes

16 = Mean
15 = LCL
| | | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10 11 12

Sample number

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Variation due
to assignable
Out of
causes
control

S6 15

Setting Chart Limits

For x-Charts when we dont know
Upper control limit (UCL) = x + A2R
Lower control limit (LCL) = x - A2R
where

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R
=
samples
A2 =
Table S6.1
x
=

average range of the

control chart factor found in
mean of the sample means
S6 16

Control Chart Factors

Sample Size
Range
n
2
3
4
5
6
7
8
9
10
12

Mean Factor

Upper Range

A2
1.880
1.023
.729
.577
.483
.419
.373
.337
.308
.266

D4
3.268
2.574
2.282
2.115
2.004
1.924
1.864
1.816
1.777
1.716

Lower
D3

0
0
0
0
0
0.076
0.136
0.184
0.223
0.284
Table S6.1

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S6 17

Setting Control Limits

Process average x = 16.01 ounces
Average range R = .25
Sample size n = 5

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S6 18

Setting Control Limits

Process average x = 16.01 ounces
Average range R = .25
Sample size n = 5
UCLx

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= x + A2R
= 16.01 + (.577)(.25)
= 16.01 + .144
= 16.154 ounces
From
Table S6.1

S6 19

Setting Control Limits

Process average x = 16.01 ounces
Average range R = .25
Sample size n = 5
UCLx

LCLx

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= x + A2R
= 16.01 + (.577)(.25)
= 16.01 + .144
= 16.154 ounces
= x - A2R
= 16.01 - .144
= 15.866 ounces

UCL = 16.154

Mean = 16.01

LCL = 15.866

S6 20

R Chart
Type of variables control chart
Shows sample ranges over time
Difference between smallest and
largest values in sample

Monitors process variability

Independent from process mean

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S6 21

Setting Chart Limits

For R-Charts
Upper control limit (UCLR) = D4R
Lower control limit (LCLR) = D3R
where
R
=
average range of the
samples
D3 and D4 =
control chart factors
from Table S6.1
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S6 22

Setting Control Limits

Average range R = 5.3 pounds
Sample size n = 5
From Table S6.1 D4 = 2.115, D3 = 0
UCLR = D4R
= (2.115)(5.3)
= 11.2 pounds

UCL = 11.2

LCLR

LCL = 0

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= D3 R
= (0)(5.3)
= 0 pounds

Mean = 5.3

S6 23

Mean and Range Charts

(a)
(Sampling mean is
shifting upward but
range is consistent)

These
sampling
distributions
result in the
charts below
UCL

x-chart
LCL

(x-chart detects
shift in central
tendency)

UCL

R-chart
LCL

(R-chart does not

detect change in
mean)

Figure S6.5
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S6 24

Mean and Range Charts

(b)
These
sampling
distributions
result in the
charts below

(Sampling mean
is constant but
dispersion is
increasing)
UCL

x-chart
LCL

(x-chart does not

detect the increase
in dispersion)

UCL

R-chart
LCL

(R-chart detects
increase in
dispersion)

Figure S6.5
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S6 25

Automated Control Charts

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S6 26

Control Charts for Attributes

For variables that are categorical
Good/bad, yes/no,
acceptable/unacceptable

Measurement is typically counting

defectives
Charts may measure
Percent defective (p-chart)
Number of defects (c-chart)
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S6 27

Control Limits for p-Charts

Population will be a binomial distribution,
but applying the Central Limit Theorem
allows us to assume a normal distribution
for the sample statistics
UCLp = p + z p^

p =
^

LCLp = p - z p^
where
^

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p
z
p
n

=
=
=
=

p(1 - p)
n

mean fraction defective in the sample

number of standard deviations
standard deviation of the sampling dis
sample size
S6 28

p-Chart for Data Entry

Sample Number
Number of Errors

1
2
3
4
5
6
7
8
9
10

p=
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Fraction
Defective

Sample Number
Number of Errors

Fraction
Defective

.06
.05
.00
.01
.04
.02
.05
.03
.03
.02

11
6
12
1
13
8
14
7
15
5
16
4
17
11
18
3
19
0
20
4
Total = 80

.06
.01
.08
.07
.05
.04
.11
.03
.00
.04

6
5
0
1
4
2
5
3
3
2
80
(100)(20)

= .04

p^ =

(.04)(1 - .04)
100

= .02
S6 29

p-Chart for Data Entry

UCLp = p + z p^ = .04 + 3(.02) = .10

Fraction defective

LCLp = p - z p^ = .04 - 3(.02) = 0

.11
.10
.09
.08
.07
.06
.05
.04
.03
.02
.01
.00

UCLp = 0.10

p = 0.04

10

12

14

16

18

20

LCLp = 0.00

Sample number
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S6 30

p-Chart for Data Entry

UCLp = p + z p^ = .04 + 3(.02) = .10

Fraction defective

Possible
LCLp = p - z p^ = .04 - 3(.02) =assignable
0
causes present

.11
.10
.09
.08
.07
.06
.05
.04
.03
.02
.01
.00

UCLp = 0.10

p = 0.04

10

12

14

16

18

20

LCLp = 0.00

Sample number
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S6 31

Control Limits for c-Charts

Population will be a Poisson distribution,
but applying the Central Limit Theorem
allows us to assume a normal distribution
for the sample statistics
UCLc = c + 3 c
where

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LCLc = c - 3 c
=

mean number defective in the sam

S6 32

c-Chart for Cab Company

c = 54 complaints/9 days = 6 complaints/day

LCLc = c - 3 c
=3-3 6
=0
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14
12
10
8
6
4
2
0

Number defective

UCLc = c + 3 c
=6+3 6
= 13.35

|
1 2

UCLc = 13.35

c= 6

| |
3 4

|
5

|
6

|
7

LCLc = 0

| |
8 9

Day
S6 33

Patterns in Control Charts

Upper control limit

Target

Lower control limit

Figure S6.7
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Normal behavior.
Process is in control.
S6 34

Patterns in Control Charts

Upper control limit

Target

Lower control limit

Figure S6.7
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One plot out above (or

below). Investigate for
cause. Process is out
of control.
S6 35

Patterns in Control Charts

Upper control limit

Target

Lower control limit

Figure S6.7
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Trends in either
direction, 5 plots.
Investigate for cause of
progressive change.
S6 36

Patterns in Control Charts

Upper control limit

Target

Lower control limit

Figure S6.7
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Two plots very near

lower (or upper)
control. Investigate for
cause.
S6 37

Patterns in Control Charts

Upper control limit

Target

Lower control limit

Figure S6.7
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Run of 5 above (or

below) central line.
Investigate for cause.
S6 38

Patterns in Control Charts

Upper control limit

Target

Lower control limit

Figure S6.7
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Erratic behavior.
Investigate.
S6 39

Which Control Chart to Use

Variables Data
Using an x-chart and R-chart:
Observations are variables
Collect 20 - 25 samples of n = 4, or n =
5, or more, each from a stable process
and compute the mean for the x-chart
and range for the R-chart
Track samples of n observations each

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S6 40

Which Control Chart to Use

Attribute Data
Using the p-chart:
Observations are attributes that can
be categorized in two states
We deal with fraction, proportion, or
percent defectives
Have several samples, each with
many observations

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S6 41

Which Control Chart to Use

Attribute Data
Using a c-Chart:
Observations are attributes whose
defects per unit of output can be
counted
The number counted is often a small
part of the possible occurrences
Defects such as number of blemishes
on a desk, number of typos in a page
of text, flaws in a bolt of cloth
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S6 42