Statistical Process Control

Learning Objectives

§ Explain the purpose of a control chart

§ Explain the role of the central limit theorem in SPC

§ Build 𝑥-charts
̅ and 𝑅-charts

§ List the five steps involved in building control charts

§ Build 𝑝-charts and 𝑐-charts

§ Explain acceptance sampling

 Statistical Process
Control
§ Application of statistical
techniques to ensure that
processes meet standards.

§ Provide a statistical signal

when assignable (special)
causes of variation are present

§ Eliminate assignable causes of

variation
 Statistical Process
Control
Variability is inherent in every
process
i. Natural or common
causes
ii. Special or assignable
causes
 Variations
Natural Variations Assignable Causes

§ Common causes that affect § Indicates the presence of

all processes changes in the process
§ Expected variations § Variations can be traced to a
specific reason - misadjusted
§ Output measures follow a equipment, machine wear,
probability distribution fatigue, untrained workers, new
§ Process “in control” if the raw material
distribution of output falls § Eliminate bad causes, and
within acceptable limits incorporate new causes
 Key Terms
Terminology Explanation
Population Entire group or set of items under study
Sample Subset of the population selected for the study
Sampling Process of selecting a subset of data points from
larger population for analysis
Sample size Number of observations included in a sample
Distribution Systematic way to describe the likelihood of
different outcomes in a random process
Normal Symmetric, bell-shaped probability distribution
distribution characterized by mean and standard deviation
Sampling Distribution of a statistics (e.g. mean) calculated
distribution from multiple samples of the same size
 Key Terms
Terminology Explanation
Dispersion Extent to which dataset spread out from the
central tendency
Central tendency Center of a distribution – commonly measured
by mean, median or mode
Mean Average of a set of values
Standard A measure of the typical deviation of values from
deviation the mean
 Samples
To measure the process, we take samples and analyze the
sample statistics following these steps
Samples of the product, say five After enough samples are taken
boxes of cereal taken off the filling from a stable process, they form
machine line, vary from each other a pattern called a distribution
in weight
Each of these represents one
sample of five boxes of cereal The solid line represents
the distribution
Frequency

# #

Frequency
# # #
# # # #
# # # # # # #
# # # # # # # # # #

Weight Weight
 Samples
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 Variation Shape

Frequency

Weight Weight Weight

 Samples
If only natural causes of If assignable causes are
variation are present, the output present, the process output is
of a process forms a distribution not stable over time and is not
that is stable over time and is predictable
predictable
?
?? ??
? ?
? ?
? ?
? ?
??? ???

Frequency
Frequency

Prediction Prediction

e e
T im T im
Weight Weight
 Key Terms
Terminology Explanation
Variation Natural and special differences in a process
Control limits Upper and lower bounds on a control chart that
define the acceptable range of variation
Centerline Represents the average or mean of the process –
baseline for accessing the stability
Out of control Points of control chart fall outside the control
limits – presence of special cause variation –
corrective action may be needed
In control All the points on a control chart fall within the
control limit – process is stable and operating as
expected
 Control Charts

Constructed from historical data, the purpose of control

charts is to help distinguish between natural variations
and variations due to assignable causes
 Process Control
(a) In statistical control and
capable of producing
Frequency
within control limits
Lower control limit Upper control limit

(b) In statistical control but

not capable of producing
within control limits
(c) Out of control
Size
(weight, length, speed, etc.)
 Central Limit Theorem
Regardless of the distribution of the population, the distribution of
sample means drawn from the population will tend to follow a
normal curve

1) The mean of the sampling distribution will

be the same as the population mean µ x= = µ

2) The standard deviation of the sampling

distribution (𝜎#̅ ) will equal the population σ
standard deviation (s ) divided by the σx =
square root of the sample size, n n
Population and Sampling Distributions
Population Distribution of sample means
distributions always approaches a normal
distribution
=
Beta Mean of sample means = x
Standard
deviation of σ
the sample =σx =
Normal n
means

Uniform

| | | | | | |

−3σ x −2σ x −1σ x x= +1σ x +2σ x +3σ x

95.45% fall within ± 2σ x
99.73% of all x
fall within ± 3σ x
 Sampling Distribution
Sampling
distribution of means
Process distribution from
Process distribution which the sample was drawn
of means
was also normal, but it could
have been any distribution
𝑥̿ = 𝜇
(mean)
n = 100

n = 50
As the sample size
increases, n = 25
the sampling
distribution narrows
Mean of process
 Types of Control Charts
Known
standard
deviation
𝑥̅ −chart : Changes in
mean
Unknown
Continuous standard
variables deviation
𝑅 −chart: Changes in
dispersion

𝑝 −chart: Fraction,
proportion or
percentage defects
Categorical
variables
𝑐 −chart: Count
defects per unit output
 Control Charts for Variables
§ Continuous random variables with real values
§ May be in whole or in fractional numbers

% −chart
𝒙 R-chart
• Tracks changes in • Indicates a gain or loss
central tendency (mean) of dispersion
• Due to factors such as • Due to changes in worn
tool wear, gradual bearings, loose tool,
increase in temperature, sloppiness of operators
new materials
 Setting Chart Limits

For 𝑥̅ −charts when we know 𝝈

Lower control limit (LCL#̅ )= 𝑥̿ − 𝑧𝜎#̅
Upper control limit (UCL#̅ )= 𝑥̿ + 𝑧𝜎#̅

where 𝑥̿ = mean of the sample means or a target value set

for the process
𝑧 = number of normal standard deviations
𝜎*̅ = standard deviation of the sample means = +⁄,
𝜎 = population (process) standard deviation
𝑛 = sample size
 Example: Setting Control Limits
§ Randomly select and weigh nine (𝑛 = 9) boxes of cereals
at each hour
§ Managers want to set control limits that include 99.73% of
the sample means (𝑧 = 3)
§ Population standard deviation is known to be 1 oz (𝑠 = 1)

Find the average weight

in the FIRST sample
Example: Setting Control Limits
WEIGHT OF WEIGHT OF WEIGHT OF
SAMPLE SAMPLE SAMPLE
(AVG. OF (AVG. OF (AVG. OF 9
HOUR 9 BOXES) HOUR 9 BOXES) HOUR BOXES)
1 16.1 5 16.5 9 16.3
2 16.8 6 16.4 10 14.8
3 15.5 7 15.2 11 14.2
4 16.5 8 16.4 12 17.3

" 12 % x= = 16 ounces
$ (
∑ Avg of 9 boxes ) '
n=9
Average mean of = $ x= = i=1 '
12 samples $ 12 ' z=3
$ '
# & σ = 1 ounce
 Example: Setting Control Limits
" % x= = 16 ounces
12

(
$ ∑ Avg of 9 boxes
Average mean $= i=1
) '
= x= ' n=9
of 12 samples $ 12 '
$ ' z=3
# & σ = 1 ounce
 Example:
Setting
Control Chart
Variation due
for samples of Out of
to assignable
9 boxes control causes
Control 17 = UCL

Limits 16 = Mean
Variation due to
natural causes

15 = LCL

(AVG. OF 9 (AVG. OF 9 Variation due

HOUR BOXES) HOUR BOXES) | | | | | | | | | | | |
to assignable
1 2 3 4 5 6 7 8 9 10 11 12 Out of causes
1 16.1 7 15.2
Sample number control
2 16.8 8 16.4
3 15.5 9 16.3
4 16.5 10 14.8
5 16.5 11 14.2
6 16.4 12 17.3
 Setting Chart Limits
For 𝑥̅ −charts when we don’t know 𝝈

Lower control limit (LCL#̅ )= 𝑥̿ − 𝐴$ 𝑅9

Upper control limit (UCL#̅ )= 𝑥̿ + 𝐴$ 𝑅9

where 𝑥̿ = mean of the sample means

𝐴; = control chart factor found in Table S6.1
n
R
∑ i = average range of the samples
𝑅) =
R = i=1 =
n
 Control Chart Factors
Table S6.1
Factors for Computing Control Chart Limits (3 sigma)
SAMPLE SIZE, MEAN FACTOR, UPPER RANGE, LOWER RANGE,
n A2 D4 D3
2 1.880 3.268 0
3 1.023 2.574 0
4 .729 2.282 0
5 .577 2.115 0
6 .483 2.004 0
7 .419 1.924 0.076
8 .373 1.864 0.136
9 .337 1.816 0.184
10 .308 1.777 0.223
12 .266 1.716 0.284
Example: Setting Control Limits using
Table Values
Given:
Super Cola Example Process average = 12 ounces
Labeled as “net weight Average range = .25 ounce
12 ounces” Sample size = 5

UCL = 12.144

Mean = 12

LCL = 11.856
 𝑅-chart

§ Shows sample ranges over time

§ Difference between smallest and largest values in the
sample

§ Monitors process variability

§ Independent from the process mean

 Setting Chart Limits

For 𝑅 −charts
Lower control limit (LCL&% )= 𝐷' 𝑅%
Upper control limit (UCL&% )= 𝐷( 𝑅%

where 𝑈𝐶𝐿"! = upper control limit for the range

𝐿𝐶𝐿"! = lower control limit for the range
𝐷# and 𝐷$ = values from Table S6.1
 Control Chart Factors
Table S6.1
Factors for Computing Control Chart Limits (3 sigma)
SAMPLE SIZE, MEAN FACTOR, UPPER RANGE, LOWER RANGE,
n A2 D4 D3
2 1.880 3.268 0
3 1.023 2.574 0
4 .729 2.282 0
5 .577 2.115 0
6 .483 2.004 0
7 .419 1.924 0.076
8 .373 1.864 0.136
9 .337 1.816 0.184
10 .308 1.777 0.223
12 .266 1.716 0.284
 Example: Setting Control Limits
Given: Average range = 5.3 pounds
Sample size = 5
 Salmon 11.5 –
x Bar Chart
UCL = 11.524
Fillets at

Sample Mean
11.0 – =
x = – 10.959
Darden 10.5 –
Restaurant |
1
|
3
|
5
|
7
|
9
|
11
|
13
|
15
|
17
LCL = – 10.394

Range Chart
0.8 –
UCL = 0.6943

Sample Range
0.4 –
– = 0.2125
R
0.0 – | | | | | | | | | LCL = 0
1 3 5 7 9 11 13 15 17

Even though the process average is under control, the dispersion

of the process may not be. Operations managers use control
charts for ranges to monitor process variability and control
charts for averages to monitor process central tendency
 Mean and Range Charts
The mean chart is sensitive to shifts in the process mean
(a)
These sampling (Sampling mean is
distributions result shifting upward,
in the charts below but range is
consistent)

UCL
( 𝑥-chart
̅ detects shift
𝑥-chart
̅
in central tendency)
LCL
UCL
(𝑅-chart does not detect
𝑅-chart change in mean)
LCL
 Mean and Range Charts
The 𝑹-chart is sensitive to shifts in the process standard deviation
(b)
(Sampling mean is
These sampling constant, but
distributions result dispersion is
in the charts increasing)
below
UCL
( 𝑥-chart
̅ indicates no
𝑥-chart
̅ change in central tendency)
LCL
UCL
(𝑅-chart detects increase
𝑅-chart in dispersion)
LCL
Setting Other Control Limits

Common z Values
𝑧 −value (Standard deviation
Desired control required for desired level of
limits (%) confidence)
90.0 1.65
95.0 1.96
95.45 2.00
99.0 2.58
99.73 3.00
 Exercise Sample
Sample
Mean (inch)
Range
(inch)
1 10.002 0.011
Twelve samples, each containing 2 10.002 0.014
five parts, were taken from a 3 9.991 0.007
process that produces steel 4 10.006 0.022
rods. The length of each rod in 5 9.997 0.013
the samples was determined.
6 9.999 0.012
The results were tabulated and
7 10.001 0.008
sample means and ranges were
8 10.005 0.013
computed. The results were:
9 9.995 0.004
10 10.001 0.011
11 10.001 0.014
12 10.006 0.009
 Exercise
a) Determine the upper and lower control limits and the
overall means for x-bar charts and R-charts.

b) Draw the charts and plot the values of the sample

means and ranges.

c) Do the data indicate a process that is in control?

d) Why or why not?

 Sample Range
Sample
Mean (inch) (inch)
1 10.002 0.011
2 10.002 0.014
3 9.991 0.007
4 10.006 0.022
5 9.997 0.013
6 9.999 0.012
7 10.001 0.008
8 10.005 0.013
9 9.995 0.004
10 10.001 0.011
11 10.001 0.014
12 10.006 0.009
 Sample Range
Sample
Mean (inch) (inch)
1 10.002 0.011
2 10.002 0.014
3 9.991 0.007
4 10.006 0.022
5 9.997 0.013
6 9.999 0.012
7 10.001 0.008
8 10.005 0.013
9 9.995 0.004
10 10.001 0.011
11 10.001 0.014
12 10.006 0.009
Steps in Creating Control Charts
Collect samples

)
Compute overall means (𝑥̿ and 𝑅)

Set appropriate control limits (𝑧 values)

Calculate UCL and LCL

Graph 𝑥̅ and 𝑅 charts

Investigate patterns

Identify and address assignable causes

Revalidate with new data

 Control Charts for Variables
§ Categorical variables – defective/non-defective, good/bad,
yes/no, acceptable/non-acceptable
§ Measurement is typically counting defects

𝒑 −chart 𝒄 −chart

• Percent defective • Number of defects

• Requires a sample size • Does not require sample
size information
 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
σ p
is estimated by
UCL p = p + zσ p
(
p 1− p )
LCL p = p − zσ p σ̂ p =
n

where
p = mean fraction (percent) defective in the samples
z = number of standard deviations
σ p = standard deviation of the sampling distribution
n = number of observations in each sample
 Example: 𝑝–Charts for Data Entry
CEO wants to set control limit to include 99.73% of the random variation in the
data entry process. He examines 100 records entered and counts the number of
errors and the fraction defective in each samples. Samples of the work of 20
clerks are as follows:
SAMPLE NUMBER OF FRACTION SAMPLE NUMBER OF FRACTION
NUMBER ERRORS DEFECTIVE NUMBER ERRORS DEFECTIVE
1 6 .06 11 6 .06
2 5 .05 12 1 .01
3 0 .00 13 8 .08
4 1 .01 14 7 .07
5 4 .04 15 5 .05
6 2 .02 16 4 .04
7 5 .05 17 11 .11
8 3 .03 18 3 .03
9 3 .03 19 0 .00
10 2 .02 20 4 .04
80
 Example: p-Chart for Data Entry
NUMBER NUMBER
SAMPLE OF FRACTION SAMPLE OF FRACTION
NUMBER ERRORS DEFECTIVE NUMBER ERRORS DEFECTIVE
1 6 .06 11 6 .06
2 5 .05 12 1 .01
3 0 .00 13 8 .08
4 1 .01 14 7 .07
5 4 .04 15 5 .05
6 2 .02 16 4 .04
7 5 .05 17 11 .11
8 3 .03 18 3 .03
9 3 .03 19 0 .00
10 2 .02 20 4 .04
80

UCL p = p + zσ p
LCL p = p − zσ p
 Example: p-Chart for Data
Entry
.11 –
.10 – UCLp = 0.10
.09 –
Fraction defective
.08 –
.07 –
.06 –
.05 –
.04 – p = 0.04
.03 –
.02 –
.01 – LCLp = 0.00
| | | | | | | | | |
.00 –
2 4 6 8 10 12 14 16 18 20
Sample number
 Example: p-Chart for Data
Entry
Possible assignable
causes present
.11 –
.10 – UCLp = 0.10
.09 –
Fraction defective

.08 –
.07 –
.06 –
.05 –
.04 – p = 0.04
.03 –
.02 –
.01 – LCLp = 0.00
| | | | | | | | | |
.00 –
2 4 6 8 10 12 14 16 18 20
Sample number
 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

Lower control limit (LCL) )= 𝑐̅ − 3 𝑐̅

Upper control limit (UCL) )= 𝑐̅ + 3 𝑐̅

where
𝑐̅ = mean number of defects per unit
𝑐̅ = standard deviation of defects per unit
 Example: c-Chart for Cab Company
The company receives complaints everyday, and over a 9-day
period, the owner received the following number of calls: 3, 0, 8, 9, 6,
7, 4, 9, 8 for a total of 54 complaints. It wants to compute 99.73%
control limits.

14 – UCLc = 13.35

Number defective
12 –
10 –
8 –
6 – c= 6
4 –
2 – LCLc = 0
0 – | | | | | | | | |
1 2 3 4 5 6 7 8 9
Day
Example: c-Chart for Cab Company

14 – UCLc = 13.35

Number defective
12 –
10 –
8 –
6 – c= 6
4 –
2 – LCLc = 0
0 – | | | | | | | | |
1 2 3 4 5 6 7 8 9
Day
Managerial Issues and Control Charts
Which parts are
critical to success?
Select points in
the processes
that need SPC Which parts have a
tendency to become
out of control?

Variable chart
Major Determine the
monitor weights or
Management appropriate
dimensions
Decisions charting
Attribute charts are
technique
more of a yes-no or
go-no go gauge

Set clear What to do when

policies and the process is out
procedures of control
 Patterns in Control Charts

Run test – A test to examine the points in a control chart

to see if nonrandom variation is present
§ Identify abnormalities in a process
§ Runs of 5 or 6 points above or below the target or
centerline suggest assignable causes may be present
§ There are a variety of run tests
UCL

Target

LCL
Normal behavior. One plot out. Trends in either
Process is “in Investigate for direction, 5 plots.
control.” cause. Process is Investigate for cause
“out of control.” of progressive
change.
UCL

Target

LCL
Two plots very near Run of 5 above (or Erratic behavior.
lower (or upper) below) central line. Investigate for
control. Investigate Investigate for cause.
for cause. cause.
 Acceptance Sampling
Form of quality testing used for incoming
materials or finished goods

Sampling Inspection Decision

• Take samples • Inspect each • Whether to

at random of the items in reject the lot
from a “lot” / the sample based on the
batches of inspection
items result

Both attributes and variables can be inspected

 Acceptance Sampling

§ Only screen “lots” – does not drive quality

improvement efforts

§ Rejects “lots” can be:

§ Returned to supplier
§ To be 100% inspected to cull out all
defects
§ May be re-graded to a lower specification
Operating Characteristic Curve
§ Shows the relationship between
the probability of accepting a lot
and its quality level

§ The curve pertains to a specific

plan – a combination of n (sample
size) and c (acceptance level)
AQL LTPD

Acceptance Quality Level (AQL)

§ Poorest level of quality we are willing to accept
Lot Tolerance Percent Defective (LTPD)
§ Quality level that we consider bad
 The “Perfect” OC Curve
Keep whole

P(Accept Whole Shipment)

shipment
100 –

75 –
Return whole
50 –
shipment

25 –
Cut-Off

0 |– | | | | | | | | | |

0 10 20 30 40 50 60 70 80 90 100

% Defective in Lot
 An OC Curve
a = 0.05 producer's risk for AQL

The steeper the

Probability of curve, the better
Acceptance the plan

b = 0.10 | | | | | | | | | Percent
0 1 2 3 4 5 6 7 8 defective
AQL LTPD
Consumer's Good Indifference
risk for LTPD lots Bad lots
zone
 Operating Characteristics Curve
Producer
§ Responsible of replacing all the defects in the rejected lot
§ Producer’s risk (𝛼) – mistake of having a good lot rejected through
sampling
§ Probability of rejecting a lot when the fraction defective is at or above the
AQL

Consumer
§ Lots accepted are the responsibility of the consumer
§ Consumer’s risk (𝛽) – mistake of accepting a bad lot overlooked through
sampling
§ Probability of accepting a lot when fraction defective is below the LTPD
 Average Outgoing Quality
The percentage defective in an average lot of goods
inspected through acceptance sampling
1. If a sampling plan replaces all defectives
2. If we know the true incoming percent defective for the
lot

We can compute the average outgoing quality

(AOQ) in percent defective
The maximum AOQ is the highest percent defective or the
lowest average quality and is called the average outgoing
quality limit (AOQL)
Average Outgoing Quality

(Pd)(Pa)(N – n)
AOQ =
N

where
Pd = true percent defective of the lot
Pa = probability of accepting the lot
N = number of items in the lot
n = number of items in the sample
 Recap Learning Objectives

1. Explain the purpose of a control chart

• Provide statistical signal when assignable causes of variation are
present

2. Explain the role of the central limit theorem in SPC

• What does the theorem says? What does it provide?

3. Build 𝑥̅ −charts and 𝑅 −charts

• Know the formula, calculate the upper and lower limits, plot the
graph, investigate patterns
 Recap Learning Objectives
4. List the five steps involved in building control charts
• Collect samples, calculate overall means, graph the means and
ranges, investigate patterns, collect additional samples

5. Build p-charts and c-charts

• Know the formula, calculate the upper and lower limit, plot the
graph, investigate patterns

6. Explain acceptance sampling

• What is an acceptable lot and what is not, what are the risks and
probability of accepting a bad lot