SPC Tools

•Seven tools of quality

• Pareto charts
• Flow charts
• Cause-and-effect diagram
• Check sheet
• Histograms
• Control charts
• Scatter diagrams
 Pareto Chart

• Method of prioritizing problems or causes

by frequency of occurrence or cost

• Based in the 80-20 rule:

• 80% of the problem is caused by 20% of the
sources

• Depicted by a vertical bar graph arranged from

left to right descending order
Advantages of a Pareto Chart

• Focuses efforts on problems with greatest

potential for improvement

• Distinguishes the critical causes from the less

significant causes

• Helps prevent “shifting the problem” where the

solution removes some causes but worsens
others
Advantages of a Pareto Chart (cont.)
• Measure the impact of improvement projects
when comparing charts “before” and “after”

• The chart shows the relative importance of

problems in a simple, quickly interpreted,
visual format.

• Progress is measured in a highly visible format

that provides incentive to push on for more
improvement.
Steps to Build a Pareto Chart

• Identify problem
• Choose categories that will be monitored
• Choose the most meaningful unit of measurement
• Frequency
• Cost
• Determine time period
• Long enough to represent situation
• Scheduled time to collect data is typical of a workday
Steps to Build a Pareto Chart (cont.)

• Collect data

• Compare the frequency of each category

• Draw chart:

• List the categories on the horizontal line

• Descending order, from left to right

• Frequencies on the vertical line

Steps to Build a Pareto Chart (cont.)

• Draw the cumulative percentage line showing

categories contribution
• Optional
• Draw vertical line on the right side of the chart
• Plot cumulative values from left to right
• Interpret results
• Tallest bar represents biggest contributor
• Perform analysis of category that has the “most
impact”
EXAMPLE
EXAMPLE
PARETO CHART
 Cum %
Example of a Pareto Chart 100 %
97%
91%

79%

61%
Frequency
30 50 %

35%
20

24
10 18
12
8
4 2
0
Late Wrong Missing Dam Wrong Not received
delivery product parts aged address
container
Delivery complains
Further analysis using Pareto charts

• Major cause breakdown:

• Tallest bar is broken down into sub-causes

30

20

24
10 18
12
8
4 2
0
Late delivery Wrong product Missing parts Dam Wrong Not received
age d addr e s s
containe r

4
8
6 4 4
2

0
Missing a dd re s s Driver mistake Late Tr a n sp o r ta ti o n A d m i n i stra ti v e
d o c u m e n ta ti o n problems delays

Late delivery
Further analysis using Pareto charts
•Before and after:
• New Pareto bars are drawn side-by-side
with the original Pareto showing effect of change
25

20 24

18
15

12
10
10 10
8 8
5
4 4
3 2 1
0
Late Wrong Missing Dam Wrong Not
delivery product parts aged address received
container
Before After
 Further analysis using Pareto charts
•Change measurement scale:
• Same categories are used but
measured differently. Typically cost and
frequency.
• This exercise defines the category of
30
“most impact”.
$3,00
0
25
$2,50
0
20
$2,00
15 0
24 $1,50
10 0 $ 2 , 50
18 0
$1,00 $ 1, 8
12 0 50
5 8 $ 1, 2 0
4 $50 0 $80
2 0
0 0
$22 $20
Late Wrong Missing Dam Wrong Not receive $0 0 0
delivery product parts aged address d Wrong product Not Missing parts Wrong Dam Late delivery
container received addres aged
Delivery com Cost/m s containe
plains onth r
Flow Charts
• Pictorial representation of the steps and decision
points in a process.

• Flow charts are used to identify the actual path

of a product or service.

• Flow charts show:

• Sequential work activities
• Inputs for each action
• Outputs from each activity
Advantages of a Flow Chart

• Provide common understanding of how a

process works.

• Identifies problem areas, unexpected complexity,

redundancies, and areas of potential improvement

• Serves as a training aid

• Provides basis for documentation.

• Identifies location where additional data can be

collected and investigated
Symbols of a Flow Chart

Shows an activity performed in the process

Shows a point in the process where a Yes/No

question is being asked or a decision is required

Identifies a break in the flow chart and is continued

A elsewhere on the same page or another page

Shows the flow of the process

Shows the beginning and end process

Steps to Build a Flow Chart

• List the basic steps of the process.

• Determine the logical sequence of the steps.
• Identify the inputs of each step.
• Determine the outputs of each step.
• Draw the chart using the symbols to show the

actions and decisions.

Example of a Flow Chart

Team is given task

to write procedure Review
draft

yes Complete Send to

Develop Draft
Final
approved
version Release
outline
Dept.

No

Complete Revise Draft Release

procedure
draft with changes
Cause and Effect Analysis

• Pictorial representation of all possible causes

contributing to a problem.

• Developed by Dr.Kaoru Ishikawa

•Also known as “Fishbone” or “Ishikawa”
diagrams
Advantages of a Cause and Effect Diagram

• Clearly illustrates the various causes affecting a

process:
• Relationship between these causes
• Where are they occurring

• Helps in finding the most basic cause of the

problem

• Motivates team members participation

Steps to Build a Cause and Effect Diagram
• Place problem statement in a box to the right-hand
side of the paper.

• Select the major cause or categories and place them

to the left of the problem statement.
• 4 M’s (Production process):
• Materials
• Manpower
• Machinery/equipment
• Method
•4 P’s (Service process):
• Policies
• Procedures
• People
• Plant / equipment
Steps to Build a Cause and Effect Diagram
(cont.)

• Draw a box around each category and connect

to a line pointing out towards the problem statement.

• Using the brainstorming technique, generate ideas

of causes, on the major categories.

• Record these ideas on a line off the applicable

major category line.
Steps to Build a Cause and Effect Diagram
(cont.)

• For each cause listed on the diagram, ask “why

does this happen?”.
• For each response, ask the same question.
• Each successive answer is another possible
cause
• Look for causes that repeat across major cause
categories.
• Ensure all team members agree on the problem
and causes statements.
 Example of a Cause and Effect Diagram

Machinery/equipment Manpower

Drivers don’t
Unreliable trucks Show up

Drivers get lost

Not enough trucks
Wrong address
Not capacity for on shipper
peak periods
Database Input error
Late deliveries

Poor dispatching Run out of

products
Poor handling of Poor planning

large orders Lack of

training
Lack of
training
Method Material
Example of a Cause and Effect Diagram
Check Sheets

• Tool used to record and compile frequency of

observations as they occur

• Used for Pareto charts and histograms

• Design varies depending on information

needed
Advantages of a Check Sheet
• Patterns of information are clearly detected
and shown

• Easy-to-understand data from a simple

process

• Based on facts, not opinions

• Forces agreement on the definition of each

condition
Steps to Build a Check Sheet
• Agree on the definition of the events or conditions
to observe.

• Decide who will collect the data.

• Determine the time period.

• Design a check sheet form that is clear and

easy to use.
• Define Source of information.
• Determine Content of information.

• Collect data consistently and accurately.

 Example of a Check Sheet

Project: Defects on fastener installation Performed by: John Doe Location: Cost
Center 727 Reason: Defect reduction
Time period: W/E 4/23/04

Type of defects 4/19 4/20 4/21 4/22 4/23 Total

Gapped fasteners 15 15 12 10 14 66

Missing fasteners 3 0 0 1 1 5

Damaged fasteners 8 3 12 8 4 35

Defective fasteners 12 3 5 3 6 29
Total 38 21 29 22 25 135
Histograms

• Graphical representations of the frequency

distribution of data in bar form.

• Summarizes data from a process that has been

collected over a period of time

• Provide a quick representation of the “spread”

and “centering” of a process
Histogram (Definition)
A histogram is a bar graph that shows frequency
data. Histograms provide the easiest way to evaluate

the distribution of data.

Advantages of a Histogram
• Display large amounts of data that are difficult
to interpret in a tabular form

• Show the relative frequency of occurrences of the

various data values

• Reveal the variation, centering, and distribution

shape of the data

• Very useful when calculating capability of a

process

• Helps predict future performance of a process

Steps to Build a Histogram
• Collect data for analysis.
• At least 50 to 100 data points
• Use historical data to find patterns or to use as a
baseline for past performance

• Determine the range of the data set.

• Smallest value subtracted from largest value

• Determine quantity of categories.

• Take the square root of total number of data points
and round to nearest whole number
Steps to Build a Histogram (cont.)

• Determine each category’s data point.

• Mid-point of each category

• Plot data on a vertical bar-graph.

• Frequency on Y-axis
• Categories on X-axis
• For each class interval, draw bar with the height
equal to frequency count.
Example of a Histogram
Clas
Category Mid-point Frequency
boundary
1 10.00 - 10.19 10.1 1
2 10.20 - 10.39 10.3 6
3 10.40 - 10.59 10.5 12
4 10.60 - 10.79 10.7 8
5 10.80 - 10.99 10.9 6
6 11.00- 11.19 11.1 3

14

12

10

8
6 12

4 8
6 6
2
3
1
0
10.00 - 10.20 - 10.40 - 10.60 - 10.80 - 11.00-
10.19 10.39 10.59 10.79 10.99 11.19
Control Charts
• Line graph of measurements of a process overtime
that has statistically based control limits placed on it

• Process control charts monitor and display variations

in a process output.

• Control limits are based on process variation

• Define expected variation range due to common causes
• +/- three standard deviations from centerline

• Centerline represents the average of all

measurements used.
Types of Control Charts

• Two primary types are:

• Control charts for variables:
• Most used: X –R
• X is average values
• R is range
• Others: Run charts, moving range charts (MX –MR charts)

• Control charts for attributes:

• p chart: fraction defective
• np chart: number of defectives
• c chart: number of defects
Advantages of Control Charts
• Focuses attention on detecting and monitoring
process variation over time

• Distinguishes “special” from “common” causes

• Helps predict performance of a process

• Helps improve a process to perform

consistently

• Provides a common language to discuss process

behavior
Steps to Build a Control Chart

• Select the process to be charted.

• Determine type of chart.
• Determine sampling method and plan.
• Initiate data collection.
• Calculate control limits and centerline.
• Build the control chart.
• Plot data.
• Interpret results.
Example of a Control Chart Point out-of-control
(out of the control limits boundaries)

Data plot
Upper control limit

3 std.deviations

Centerline

3 std.deviations

Lower control limit

 Scatter Diagrams

• Chart used to identify the possible relationship

between two process characteristics

• Advantages of the scatter diagram

• Provides visual and statistical means to test the

strength of a potential relationship

• Provides a good follow-up to the cause and effect

diagram to find out if there is a connection between
the cause and the effect
Steps to Build a Scatter Diagram

• Collect 50 – 100 paired samples of data.

• Construct a data sheet.
• Draw the Y-axis and the X-axis of the diagram.
• Plot the data on the diagram.
Example of a Scatter Diagram
Variable 2

Variable 1
 Summary

• The seven tools of quality discussed in this module

are considered to make up the fundamental
continuous improvement toolkit.

• It is the intent of this course to touch basis on these

tools and not to study them in depth.

• Depth analysis of these theories is considered subject

for another course.
Run Charts

• Run Charts Defined

– Run charts are used to
analyze processes
according to time or
order.
Run Charts

• Creating a Run Chart

– Gathering Data
• Some type of process or operation must be available to take
measurements for analysis.
– Organizing Data
• Data must be divided into two sets of values X and Y. X values represent
time and values of Y represent the measurements taken from the
manufacturing process or operation.
– Charting Data
• Plot the Y values versus the X values.
– Interpreting Data
• Interpret the data and draw any conclusions that will be beneficial to the
process or operation.
Run Chart

• An Example of Using a
Run Chart
– An organization’s desire is
to have their product arrive
to their customers on time,
but they have noticed that it
doesn’t take the same
amount of time each day of
the week. They decided
to monitor the amount of
time it takes to deliver
their product over the next
few weeks.