Course Name and Code : Operations Management DM-209

L5-L6
Statistical Process Control (SPC)

By Dr. Aseem K. Mishra

 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
 Variability

• Random/Chance Causes • Non-Random/Assignable

– common causes Causes
– inherent in a process – special causes
– can be eliminated only – due to identifiable factors
through improvements in – can be modified through
the system operator or management
action
Random versus Non-Random
 SPC in TQM

• SPC
– tool for identifying problems and suggest
improvements
– contributes to the TQM goal of continuous
improvements
 Quality Characteristics Measures
• Attribute
– a product characteristic that can be evaluated
with a discrete response
– good – bad; yes - no
• Variable
– a product characteristic that is continuous and can
be measured
– weight – length
 Applying SPC to Service

• Nature of defect is different in services

• Service defect is a failure to meet customer
requirements
• Monitor times, customer satisfaction
 Applying SPC to Service (cont.)
• Hospitals
– timeliness and quickness of care, staff responses to
requests, accuracy of lab tests, cleanliness, courtesy,
accuracy of paperwork, speed of admittance and checkouts
• Grocery Stores
– waiting time to check out, frequency of out-of-stock items,
quality of food items, cleanliness, customer complaints,
checkout register errors
• Airlines
– flight delays, lost luggage and luggage handling, waiting
time at ticket counters and check-in, agent and flight
attendant courtesy, accurate flight information, passenger
cabin cleanliness and maintenance
 Applying SPC to Service (cont.)
• Fast-Food Restaurants
– waiting time for service, customer complaints, cleanliness, food
quality, order accuracy, employee courtesy
• Catalogue-Order Companies
– order accuracy, operator knowledge and courtesy, packaging,
delivery time, phone order waiting time
• Insurance Companies
– billing accuracy, timeliness of claims processing, agent availability
and response time
 Where to Use Control Charts
• Process has a tendency to go out of control
• Process is particularly harmful and costly if it goes
out of control
• Examples
– at the beginning of a process because it is a waste of time
and money to begin production process with bad
supplies
– before a costly or irreversible point, after which product
is difficult to rework or correct
– before and after assembly or painting operations that
might cover defects
– before the outgoing final product or service is delivered
 Control Charts
• A graph that establishes • Types of charts
control limits of a process
• Control limits – Attributes
– Upper Control Limits (UCL) • p-chart
– Lower Control Limit (LCL)
• c-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

68%

95%
99.74%
-3 -2 -1 =0 1 2 3
 A Process Is in Control If …

1. No sample points outside limits

2. Most points near process average
3. About equal number of points above and
below centerline
4. Points appear randomly distributed i.e. no
regular pattern should be followed….
 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 Western Jeans Company produces denim jeans. The
company wants to establish a p-chart to monitor the
production process and maintain high quality. Western
believes that approximately 99.74% of the variability is in
the production process (corresponding to 3-sigma limits, or
z 3.00) is random and thus should be within control limits,
whereas 0.26% of the process variability is not random and
suggests that the process is out of control.
The company has taken 20 samples (one per day for 20
days), each containing 100 pairs of jeans (n 100), and
inspected them for defects, the results of which are as
follows.
 p-Chart Example (cont.)
total defectives
p= = 200 / 20(100) = 0.10
total sample observations

p(1 - p) 0.10(1 - 0.10)

UCL = p + z = 0.10 + 3
n 100

UCL = 0.190

p(1 - p) 0.10(1 - 0.10)

LCL = p - z = 0.10 - 3
n 100

LCL = 0.010
 0.20

0.18 UCL = 0.190

0.16

0.14
Proportion defective

0.12
p = 0.10
0.10

0.08

0.06

0.04

0.02 LCL = 0.010

2 4 6 8 10 12 14 16 18 20
Sample number
 c-Chart
• A c-chart is used when it is not possible to compute a
proportion defective and the actual number of defects
must be used.
• For example, when automobiles are inspected, the
number of defects in the paint job can be counted for
each car, but a proportion cannot be computed, since
the total number of possible blemishes is not known.
In this case a single car is the sample.
• Since the number of defects per sample is assumed to
derive from some extremely large population, the
probability of a single defect is very small.
 C-Chart_Example
The Ritz Hotel has 240 rooms. The hotel’s housekeeping
department is responsible for maintaining the quality of the
rooms’ appearance and cleanliness. Each individual
housekeeper is responsible for an area encompassing 20 rooms.
Every room in use is thoroughly cleaned and its supplies,
toiletries, and so on are restocked each day. Any defects that
the housekeeping staff notice that are not part of the normal
housekeeping service are supposed to be reported to hotel
maintenance as well.
Every room is briefly inspected each day by a housekeeping
supervisor. However, hotel management also conducts
inspection tours at random for a detailed, thorough inspection
for quality-control purposes.
 C-Chart_Example
The management inspectors not only check for normal
housekeeping service defects like clean sheets, dust,
room supplies, room literature, or towels, but also for
defects like an inoperative or missing TV remote, poor TV
picture quality or reception, defective lamps, a
malfunctioning clock, tears or stains in the bedcovers or
curtains, or a malfunctioning curtain pull.
An inspection sample includes each room from lot of 20
rooms per housekeepers, that is, one room selected at
random from each of the 20 room blocks serviced by a
housekeeper. Following are the results from 15
inspection samples conducted at random during a one-
month period:
 c-Chart

UCL = c + zc
c = c
LCL = c - zc
where
c-bar = number of defects per sample
(average defects)
 c-Chart (cont.)
Number of defects in 15 sample rooms
NUMBER
SAMPLE OF
DEFECTS
190
1 12 c= = 12.67
15
2 8
UCL = c + zc
3 16
= 12.67 + 3 12.67
: : = 23.35
: : LCL = c + zc
15 15 = 12.67 - 3 12.67
190 = 1.99
 24
UCL = 23.35
21

18
Number of defects

c = 12.67

15

12

3 LCL = 1.99

2 4 6 8 10 12 14 16
Sample number
Control Charts for Variables
Copyright 2006 John Wiley & Sons, Inc. 4-31
 Example
The Goliath Tool Company produces slip-ring bearings,
which look like flat doughnuts or washers. They fit
around shafts or rods, such as drive shafts in machinery
or motors. At an early stage in the production process
for a particular slip-ring bearing, the outside diameter of
the bearing is measured.
Employees have taken 10 samples (during a 10-day
period) of 5 slip-ring bearings (per sample) and
measured the diameter of the bearings. The individual
observations from each sample (or subgroup) are shown
as follows:
x-bar Chart:-When the process standard deviation
is not known
 x-bar Chart Example
OBSERVATIONS (SLIP- RING DIAMETER, CM)
SAMPLE k 1 2 3 4 5 x R
1 5.02 5.01 4.94 4.99 4.96 4.98 0.08
2 5.01 5.03 5.07 4.95 4.96 5.00 0.12
3 4.99 5.00 4.93 4.92 4.99 4.97 0.08
4 5.03 4.91 5.01 4.98 4.89 4.96 0.14
5 4.95 4.92 5.03 5.05 5.01 4.99 0.13
6 4.97 5.06 5.06 4.96 5.03 5.01 0.10
7 5.05 5.01 5.10 4.96 4.99 5.02 0.14
8 5.09 5.10 5.00 4.99 5.08 5.05 0.11
9 5.14 5.10 4.99 5.08 5.09 5.08 0.15
10 5.01 4.98 5.08 5.07 4.99 5.03 0.10
50.09 1.15
x- bar Chart Example (cont.)

= x 50.09
x= = = 5.01 cm
k 10

=
UCL = x + A2R = 5.01 + (0.58)(0.115) = 5.08
=
LCL = x - A2R = 5.01 - (0.58)(0.115) = 4.94
 5.10 –

5.08 –
UCL = 5.08
5.06 –

5.04 –

5.02 – x= = 5.01
Mean

x- bar 5.00 –
Chart 4.98 –
Example 4.96 –
(cont.) LCL = 4.94
4.94 –

4.92 –
| | | | | | | | | |
1 2 3 4 5 6 7 8 9 10
Sample number
 R- Chart

UCL = D4R LCL = D3R

R
R=
k
where
R = range of each sample
k = number of samples
 R-Chart Example
OBSERVATIONS (SLIP-RING DIAMETER, CM)
SAMPLE k 1 2 3 4 5 x R
1 5.02 5.01 4.94 4.99 4.96 4.98 0.08
2 5.01 5.03 5.07 4.95 4.96 5.00 0.12
3 4.99 5.00 4.93 4.92 4.99 4.97 0.08
4 5.03 4.91 5.01 4.98 4.89 4.96 0.14
5 4.95 4.92 5.03 5.05 5.01 4.99 0.13
6 4.97 5.06 5.06 4.96 5.03 5.01 0.10
7 5.05 5.01 5.10 4.96 4.99 5.02 0.14
8 5.09 5.10 5.00 4.99 5.08 5.05 0.11
9 5.14 5.10 4.99 5.08 5.09 5.08 0.15
10 5.01 4.98 5.08 5.07 4.99 5.03 0.10
50.09 1.15
 R-Chart Example (cont.)

R 1.15 UCL = D4R = 2.11(0.115) = 0.243

R= = = 0.115
k 10 LCL = D3R = 0(0.115) = 0
 R-Chart Example (cont.)

0.28 –
0.24 – UCL = 0.243
0.20 –
Range

0.16 – R = 0.115
0.12 –
0.08 –
0.04 – LCL = 0
| | | | | | | | | |
0–
1 2 3 4 5 6 7 8 9 10
Sample number
 Using x- bar and R-Charts together

 Process average and process variability both must

be in control.
 It is possible for samples to have very narrow
ranges, but their averages is beyond control limits.
 In other examples It is also possible for sample
averages to be in control, but ranges might be very
large.
 Control Chart Patterns
UCL

UCL

LCL

Sample observations
consistently below the LCL
center line
Sample observations
consistently above the
center line
 Control Chart Patterns (cont.)
UCL

UCL

LCL

Sample observations
consistently increasing LCL

Sample observations
consistently decreasing
 Zones for Pattern Tests
UCL =
3 sigma = x + A2R
Zone A
=
2 sigma = x + 2 (A2R)
3
Zone B
=
1 sigma = x + 1 (A2R)
3
Zone C
Process =
x
average
Zone C
=
1 sigma = x - 1 (A2R)
3
Zone B
=
2 sigma = x - 2 (A2R)
3
Zone A
=
LCL 3 sigma = x - A2R
| | | | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10 11 12 13
Sample number
 Control Chart Patterns
 8 consecutive points on one side of the center line
 8 consecutive points up or down across zones
 14 points alternating up or down
 2 out of 3 consecutive points in zone A but still inside the
control limits
 4 out of 5 consecutive points in zone A or B
SAMPLE x ABOVE/BELOW UP/DOWN ZONE

1 4.98 B — B
2 5.00 B U C
3 4.95 B D A Performing a
4 4.96 B D A Pattern Test
5 4.99 B U C
6 5.01 — U C
7 5.02 A U C
8 5.05 A U B
9 5.08 A U A
10 5.03 A D B
 Sample Size Determination
 Attribute charts require larger sample sizes
 50 to 100 parts in a sample
 Variable charts require smaller samples
 2 to 10 parts in a sample
SPC with Excel

UCL=0.19

LCL=0.01
SPC with Excel: Formulas
 Process Capability
• Tolerances/Specification limits
– design specifications reflecting product
requirements
• Process capability
– range of natural variability in a process what we
measure with control charts
 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
Copyright 2006 John Wiley & Sons, Inc. 4-55
Process Capability Measures

Process Capability Ratio

tolerance range
Cp =
process range

upper specification limit (USL) -

lower specification limit (LSL)
=
6
 Example
The Munchies Snack Food Company packages potato
chips in bags. The net weight of the chips in each bag is
designed to be 9.0 oz, with a tolerance of 0.5 oz. The
packaging process results in bags with an average net
weight of 8.80 oz and a standard deviation of 0.12 oz.
The company wants to determine if the process is
capable of meeting design specifications.
 Computing Cp

Net weight specification = 9.0 oz  0.5 oz

Process mean = 8.80 oz
Process standard deviation = 0.12 oz

upper specification limit -

lower specification limit
Cp =
6

9.5 - 8.5
= = 1.39
6(0.12)
 Process Capability Measures

Process Capability Index

=
x - lower specification limit
,
Cpk = minimum 3
=
upper specification limit - x
3
 Computing Cpk

Net weight specification = 9.0 oz  0.5 oz

Process mean = 8.80 oz
Process standard deviation = 0.12 oz
=
x - lower specification limit
,
Cpk = minimum 3
=
upper specification limit - x
3

8.80 - 8.50 9.50 - 8.80

= minimum , = 0.83
3(0.12) 3(0.12)
• Although the Cp of 1.39 computed in example
indicated that the process is capable (it is within the
design specifications), the Cpk value of 0.83 indicates
the process mean is off center.
• It has shifted toward the lower specifications limit;
that means underweight packages of chips will be
produced. Thus, the company needs to take action to
correct the process and bring the process mean back
toward the design target.
Thank You