S6-1

Operations
Management

Statistical Process Control
Supplement 6
S6-2
Outline
+Statistical Process Control (SPC).
+ Mean charts or X-Charts.
+ Range chart or R-Charts.
+ Control charts for attributes.
+ Managerial issues and control charts.

+Acceptance Sampling.
S6-3
+Statistical technique to identify when non-
random variation is present in a process.
+All processes are subject to variability.
+ Natural causes: Random variations.
+ Assignable causes: Correctable problems.
+ Machine wear, unskilled workers, poor materials.
+Uses process control charts.
Statistical Process Control (SPC)
S6-4
Produce Good
Provide Service
Stop Process
No
Yes
Is process
in control?
Take Samples
Find Out Why
Create
Control Chart
Start
Statistical Process Control Steps
Take Sample
Inspect Sample
S6-5
Process Control Charts
Plot of Sample Data Over Time
0
20
40
60
80
1 5 9 13 17 21
Time
S
a
m
p
l
e

V
a
l
u
e

Upper control limit
Lower control limit
S6-6
+Process is not in control if:
+ Sample is not between upper and lower control
limits.
+ A non-random pattern is present, even when
between upper and lower control limits.
+Based on sample being normally distributed.
Control Charts
S6-7
Distribution of Sample Means
x means sample of Mean =
n
x
x
o
o = =
Standard deviation of
the sample means
(mean)
x
2 within fall x all of 95.5% o
x
3 within fall x all of 99.7% o

x
3
x
2
x
x
x
1
x
2
x
3 o + o + o 1 + o o o
S6-8
X
As sample size
gets
large
enough,
distribution of mean
values becomes
approximately normal
for any population
distribution.
Central Limit Theorem
X
Central Limit Theorem
S6-9
Control
Charts
R
Chart
Variables
Charts
Attributes
Charts
X
Chart
P
Chart
C
Chart
Continuous
Numerical Data
Categorical or
Discrete Numerical
Data
Control Chart Types
S6-10
+ Characteristics for which
you focus on defects.


+ Categorical or discrete
values.
+ Good or Bad.
+ # of defects.

Attributes Variables
Quality Characteristics


+ Characteristics that you
measure, e.g., weight,
length.

+ Continuous values.
S6-11
+Shows sample means over time.
+Monitors process average.
+Example: Weigh samples of coffee.
+Collect many samples, each of n bags.
+ Sample size = n.
+ Compute mean and range for each sample.
+ Compute upper and lower control limits (UCL, LCL).
+ Plot sample means and control limits.
X Chart
S6-12
X Chart Control Limits -
Std. Dev. of Process Is Known
sample mean
at time i
x x
z x
x
LCL z x
x
UCL = + =
n
i
x
x
n
i

=
=
1

n

x
=
o = known process
standard deviation
S6-13
Each sample is 4 measurements.
Process mean is 5 lbs.
Process standard deviation is 0.1 lbs.
Determine 3o control limits.

X Chart - Example 1
85 . 4
4
1 . 0
3 5
15 . 5
4
1 . 0
3 5
= =
= + =
x
LCL
x
UCL
S6-14
X Chart Control Limits -
Std. Dev. of Process is Not Known
sample range
at time i
A
2
is from Table S6.1
R A x
x
LCL R A x
x
UCL
2 2
= + =
n
i
R
n
i
R
1 =

=
sample mean
at time i
n
i
x
x
n
i

=
=
1

S6-15
Factors for Computing Control
Chart Limits
Sample
Size, n
Mean
Factor, A
2
Upper
Range, D
4
Lower
Range, D
3
2 1.880 3.268 0
3 1.023 2.574 0
4 0.729 2.282 0
5 0.577 2.115 0
6 0.483 2.004 0
7 0.419 1.924 0.076
8 0.373 1.864 0.136
9 0.337 1.816 0.184
10 0.308 1.777 0.223
S6-16
Each sample is 4 measurements.
Determine 3o control limits.
sample mean range.
1 5.02 .12 4.96, 5.03, 5.01, 5.08
2 4.99 .08.
3 4.97 .13.
4 5.03 .18.
5 4.99 .14.

X Chart - Example 2
905 . 4 13 . 0 729 . 0 5
095 . 5 13 . 0 729 . 0 5
= =
= + =
x
LCL
x
UCL
13 . 0 0 . 5 = = R x
S6-17
X Chart - Example 2
4.9
5.0
5.1
Time
S
a
m
p
l
e

M
e
a
n

Upper control limit
Lower control limit
S6-18
sample values mean range
6 5.05, 5.00, 4.80, 4.95 4.95 0.25
7 5.00, 5.10, 5.10, 5.00 5.05 0.10
8 4.80, 5.20, 5.10, 5.00 5.025 0.40
4.9
5.0
5.1
Time
S
a
m
p
l
e

M
e
a
n

Upper control limit
Lower control limit
Example 2 New Samples
S6-19
+Shows sample ranges over time.
+ Sample range = largest - smallest value in sample.
+Monitors process variability.
+Example: Weigh samples of coffee.
+ Collect many samples, each of n bags.
+ Sample size = n.
+ Compute range for each sample & average range.
+ Compute upper and lower control limits (UCL, LCL).
+ Plot sample ranges and control limits.
R Chart
S6-20
sample range at
time i
From Table S6.1
R Chart Control Limits
n
R
R
R D LCL
R D UCL
i
n
1 i
3 R
4 R
=

=
=
=
S6-21
Each sample is 4 measurements.
Determine 3o control limits.
sample mean range
1 5.02 .12
2 4.99 .08
3 4.97 .13
4 5.03 .18
5 4.99 .14

R Chart - Example 2
0 13 . 0 0
297 . 0 13 . 0 282 . 2
= =
= =
R
R
LCL
UCL
13 . 0 0 . 5 = = R x
4.96, 5.03, 5.01, 5.08
S6-22
R Chart - Example 2
0
0.2
0.3
Time
S
a
m
p
l
e

R
a
n
g
e

Upper control limit
Lower control limit
0.1
S6-23
sample values mean range
6 5.05, 5.00, 4.80, 4.95 4.95 0.25
7 5.00, 5.10, 5.10, 5.00 5.05 0.10
8 4.80, 5.20, 5.10, 5.00 5.025 0.40
Example 2 New Samples
0
0.2
0.3
Time
S
a
m
p
l
e

R
a
n
g
e

Upper control limit
Lower control limit
0.1
S6-24
Control Chart Steps
+Collect 20 to 25 samples of n=4 or n=5 from a
stable process & compute the mean and range.
+Compute the overall mean and average range.
+Calculate upper and lower control limits.
+Collect new samples, and plot the means and
ranges on their respective control charts.
S6-25
Control Chart Steps - Continued
+Investigate points or patterns that indicate the
process is out of control. Assign causes for
the variations.
+Collect additional samples and revalidate the
control limits.
S6-26
Use of Control Charts
S6-27
sample values mean range
1 4.9, 5.0, 5.1 5.0 0.2
2 5.2, 5.3, 5.4 5.3 0.2
3 5.5, 5.6, 5.7 5.6 0.2
4 5.8, 5.9, 6.0 5.9 0.2

Example 3
2454 . 5 2 . 0 023 . 1 45 . 5
6546 . 5 2 . 0 023 . 1 45 . 5
= =
= + =
x
LCL
x
UCL
2 . 0 45 . 5 = = R x
0 2 . 0 0
5148 . 0 2 . 0 574 . 2
= =
= =
R
LCL
R
UCL
S6-28
Example 3 Control Charts
5.0
5.5
6.0
Time
S
a
m
p
l
e

M
e
a
n

Upper control limit = 5.6546
Lower control limit = 5.2454
0.0
0.5
1.0
Time
S
a
m
p
l
e

R
a
n
g
e

Upper control limit = 0.5148
Lower control limit = 0
S6-29
sample values mean range
1 5.0, 5.0, 5.0 5.0 0.0
2 4.5, 5.0, 5.5 5.0 1.0
3 4.0, 5.0, 6.0 5.0 2.0
4 3.0, 5.0, 7.0 5.0 4.0

Example 4
20975 . 3 75 . 1 023 . 1 0 . 5
79025 . 6 75 . 1 023 . 1 0 . 5
= =
= + =
x
LCL
x
UCL
75 . 1 0 . 5 = = R x
0 75 . 1 0
5045 . 4 75 . 1 574 . 2
= =
= =
R
LCL
R
UCL
S6-30
Example 4 Control Charts
3.0
5.0
7.0
Time
S
a
m
p
l
e

M
e
a
n

Upper control limit = 6.79025
Lower control limit = 3.20975
0.0
3.0
6.0
Time
S
a
m
p
l
e

R
a
n
g
e

Upper control limit = 4.5045
Lower control limit = 0
S6-31
+Attributes control chart.

+Shows % of nonconforming items.

+Example: Count # defective chairs & divide by
total chairs inspected.
+ Chair is either defective or not defective.
p Chart
S6-32
+Attributes control chart.

+Shows number of defects in a unit.
+ Unit may be chair, steel sheet, car, etc.
+ Size of unit must be constant.

+Example: Count # defects (scratches, chips
etc.) in each chair of a sample of 100 chairs.
c Chart
S6-33
+Quality testing for incoming materials or
finished goods.
+Procedure:
+ Take one or more samples at random from a lot
(shipment) of items.
+ Inspect each of the items in the sample.
+ Decide whether to reject the whole lot based on
the inspection results.
Acceptance Sampling
S6-34
+Inspecting all items is too expensive.
+The larger the sample inspected:
+ The greater the cost for inspection.
+ The less likely you are to accept a bad lot or to
reject a good lot.
+Key questions:
+ How many should be inspected in each lot?
+ How confident are you in the accept/reject
decision?
Acceptance Sampling