Term Paper

Of
Operations
Management
Submitted to: submitted by:

Mr. Mandeep Hayer Ranbir singh

Reg no. 3020070151

STATISTICAL PROCESS CONTROL

Statistical Process Control (SPC) can be applied to software development processes.  A

process has one or more outputs, as depicted in the figure below.  These outputs, in turn,
have measurable attributes.  SPC is based on the idea that these attributes have two sources
of variation: natural (also known as common) and assignable (also known as special)
causes.  If the observed variability of the attributes of a process is within the range of
variability from natural causes, the process is said to be under statistical control.  The
practitioner of SPC tracks the variability of the process to be controlled.  When that
variability exceeds the range to be expected from natural causes, one then identifies and
corrects assignable causes.

SPC is a powerful tool to optimize the amount of information needed for use in making
management decisions.  Statistical techniques provide an understanding of the business
baselines, insights for process improvements, communication of value and results of processes,
and active and visible involvement.  SPC provides real time analysis to establish controllable
process baselines; learn, set, and dynamically improve process capabilities; and focus business
on areas needing improvement.  SPC moves away from opinion-based decision making.

These benefits of SPC cannot be obtained immediately by all organizations.  SPC requires
defined processes and a discipline of following them.  It requires a climate in which personnel
are not punished when problems are detected and strong management commitment.

The key steps for implementing Statistical Process Control are:

o        Identify defined processes

o        Identify measurable attributes of the process
o        Characterize natural variation of attributes
o        Track process variation
o        If the process is in control, continue to track
o        If the process is not in control:
-          Identify assignable cause
-          Remove assignable cause
-          Return to “Track process variation”
  

In practice, reports of SPC in software development and maintenance tend to concentrate on a

few software processes.  Specifically, SPC has been used to control software (formal)
inspections, testing, maintenance, and personal process improvement.  Control charts are the
most common tools for determining whether a software process is under statistical control.  A
variety of types of control charts are used in SPC.  Table 1, based on a survey of SPC usage in
organizations attaining Level 4 or higher on the SEI CMM metric of process maturity, shows
what types are most commonly used in applying SPC to software.  The combination of an Upper
Control Limit (UCL) and a Lower Control Limit (LCL) specify, on control charts, the variability
due to natural causes.  Table 2 shows the levels commonly used in setting control limits for
software SPC.  Table 3 shows the most common statistical techniques, other than control charts,
used in software SPC.  Some of these techniques are used in trial applications of SPC to explore
the natural variability of processes.  Some are used in techniques for eliminating assignable
causes.  Analysis of defects is the most common technique for eliminating assignable causes. 
Causal Analysis-related techniques, such as Pareto analysis, Ishikawa diagrams, the Nominal
Group Technique (NGT), and brainstorming, are also frequently used for eliminating assignable
causes.
  Table 1:  Usage of Control Charts

Type of Control/Attribute Percentage

Chart
Xbar-mR 33.3%
u-Chart 23.3%
Xbar 13.3%
c-Chart 6.7%
z-Chart 6.7%
Not clearly stated 16.7%

 Table 2:  Location of UCL-LCL in Control Charts

Location Percentage
Three-sigma 16%
Two-sigma 4%
One-Sigma 8%
Combination 16%
None/Not 24%
Clear

  Table 3:  Usage of Other Statistical Techniques

Statistical Percentage
Technique
Run Charts 22.8%
Histograms 21.1%
Pareto Analysis 21.1%
Scatter Diagrams 10.5%
Regression 7.0%
Analysis
Pie Charts 3.5%
Radar/Kiviat 3.5%
Charts
Other 10.5%

Control charts are a central technology for SPC.  Figure 3 shows a sample control chart
constructed from simulated data.  This is an X-chart, where the value of the attribute is graphed. 
Control limits are graphed.  In this case, the control limits are based on a priori knowledge of the
distribution of the attribute when the process is under control.  The control limits are at three
sigma.  For a normal distribution, 0.2% of samples would fall outside the limits by chance.  This

control chart indicates the process is out of control.  If this control chart were for real data, the
next step would be to investigate the process to identify assignable causes and to correct them,
thereby bringing the process under control.

Figure 3:  A Control Chart

Some have extended the focus of SPC in applying it to software processes.  In manufacturing,
the primary focus of control charts is to bring the process back into control.  In software, the
product is also a focus.  When a software process exceeds the control limits, rework is typically
performed on the product.  In manufacturing, the cost of stopping a process is high.  In software,
the cost of stopping is lower, and few shutdown and startup activities are needed [Jalote and
Saxena 2002].

SPC is one way of applying statistics to software engineering.  Other opportunities for applying
statistics exist in software engineering.  Table 4 shows, by lifecycle phase, some of these uses of
statistics. The National Research Council recently sponsored the Panel on Statistical Methods in
Software Engineering [NRC 1996].  The panel recommended a wide range of areas for applying
statistics, from visualizing test and metric data to conducting controlled experiments to
demonstrate new methodologies.

Table 4:  Some Applications of Statistics in Software Engineering

Phase Use of Statistics

Requirements Specify performance goals that can be measured statistically, e.g., no
more than 50 total field faults and zero critical faults with 90%
confidence.
Design Pareto analysis to identify fault-prone modules. Use of design of
experiments in making design decisions empirically.
Coding Statistical control charts applied to inspections.
Testing Coverage metrics provides attributes. Design of experiments useful in
creating test suites. Statistical usage testing is based on specified
operational profile. Reliability models can be applied.

Those applying SPC to industrial organizations, in general, have built process improvements on
top of SPC.  The focus of SPC is on removing variation caused by assignable causes.  As defined
here, SPC is not intended to lower process variation resulting from natural causes.  Many
corporations, however, have extended their SPC efforts with Six Sigma programs.  Six Sigma
provides continuous process improvement and attempts to reduce the natural variation in
processes.  Typically, Six Sigma programs use the “Seven Tools of Quality” (Table 5).  The
Shewhart Cycle (Figure 4) is a fundamental idea for continuous process improvement.

  Table 5: The Seven Tools of Quality

 Tool Example of Use
Check Sheet To count occurrences of problems.
Histogram To identify central tendencies and any skewing to one side or
the other.
Pareto Chart To identify the 20% of the modules which yield 80% of the
issues.
Cause and Effect For identifying assignable causes.
Diagram
Scatter Diagram For identifying correlation and suggesting causation.
Control Chart For identifying processes that are out of control.
Graph For visually displaying data, e.g., in a pie chart.

Figure 4:  Shewhart Cycle

Advantages of Statistical Process Control

Statistical process control works to improve quality while maintaining high production
levels.
 Statistical process control (SPC) allows for maintaining certain standards without inspecting
and regulating every step and product of the process. Similar to statistical quality control,
SPC is utilized in manufacturing and service applications when a process (a series of steps
designed to produce a repeated and consistent result) can remain autonomous from constant
oversight. SPC can be used in such varied environments as chemical processes or
information management. Although the product and steps may be different, the statistical
analysis of the process remains consistent. Professionals versed and confident in statistical
process control procedures can apply their experience in a multitude of industries.

Productivity

2. An advantage of SPC over other control methods is production is less affected because
there is less interruption and process slowdowns than with more direct examination and
inspection methods.

The leading variable in maintaining an SPC work environment is determining the necessary
statistical sampling necessary. Constant sampling of every aspect of the process will defeat
the SPC purpose. But statistical analysis with too much interval between sampling can allow
discrepancies and poor quality results to slip through. When implementing an SPC system
the sampling should at least represent traditional quality issues already established.

Tools

3. SPC relies heavily on control charts, continually improving the statistical analysis, and
experiments designed to create possible variations for additional statistical results. Control
charts track the various causes and solutions for statistical variations. The control chart
results and ongoing experiments provide the necessary information for continually
improving the statistical model for the process.

Application
4. When instituting SPC, it is important to not let the analysis hinder productivity. Apply
SPC as an adjunct to the process to analyze and produce data necessary for improvements.
When the SPC application becomes the center of management and operations, then the
process may suffer. Use SPC as a tool to improve the process, not use the process to
improve SPC methods and procedures.

How to Use SPC

Statistical Process Control may be broadly broken down into three sets of activities:
understanding the process; understanding the causes of variation; and elimination of the sources
of special cause variation.

In understanding a process, the process is typically mapped out and the process is monitored
using control charts. Control charts are used to identify variation that may be due to special
causes, and to free the user from concern over variation due to common causes. This is a
continuous, ongoing activity. When a process is stable and does not trigger any of the detection
rules for a control chart, a process capability analysis may also be performed to predict the
ability of the current process to produce conforming (i.e. within specification) product in the
future.

When excessive variation is identified by the control chart detection rules, or the process
capability is found lacking, additional effort is exerted to determine causes of that variance. The
tools used include Ishikawa diagrams, designed experiments and Pareto charts. Designed
experiments are critical to this phase of SPC, as they are the only means of objectively
quantifying the relative importance of the many potential causes of variation.

Once the causes of variation have been quantified, effort is spent in eliminating those causes that
are both statistically and practically significant (i.e. a cause that has only a small but statistically
significant effect may not be considered cost-effective to fix; however, a cause that is not
statistically significant can never be considered practically significant). Generally, this includes
development of standard work, error-proofing and training. Additional process changes may be
required to reduce variation or align the process with the desired target, especially if there is a
problem with process capability.

Statistical Process Control Concepts

SPC is the primary analysis tool of quality improvement. It is the applied science that helps
you collect, organize and interpret the wide variety of information available to your business.
Whether you track revenues, billing errors, or the dimensions of manufactured components, SPC
can help you measure, understand and control the variables that affect your business processes.

SPC analyzes the variation in whatever process you are measuring:

 First, control charts demonstrate how consistently your process is performing, and
whether you should, or should not, attempt to adjust it.
 Next, the statistical process control chart compares the process performance to your
customers' requirements, providing a process capability index as an ongoing, accurate
direction for quality improvement.
 Finally, control charts and its resulting process capability index quickly evaluate the
results of quality initiatives designed to improve process consistency.

As part of an ongoing cycle of continuous process improvement, SPC can help you fine-tune
your processes to the virtually error free Six Sigma level.

Statistical Process Control is easy to do. Although it involves complex mathematics,

computers are ideally suited to the task. They easily collect, organize and store information,
calculate answers, and present results in easy to understand graphs, called control charts.
Computers accept information typed in manually, read from scanners or manufacturing
machines, or imported from other computer databases. The resulting control charts can be
examined in greater detail, incorporated into reports, or sent across the Internet. A computer
collecting information in real time can even detect very subtle changes in a process, and even
warn you in time to prevent process errors before they occur.
SPC can help you understand and reduce the variation in any business process. Greater
consistency in fulfilling your customer's requirements leads to greater customer satisfaction.
Reduced variation in your internal processes leads to less time and money spent on rework and
waste. Both directly yield greater profitability and security for your business. SPC is one of the
essential tools necessary to maintain an advantage in today's competitive marketplace.
 References:

1) https://goldpractice.thedacs.com/practices/spc/index.php
2) http://www.qualityamerica.com/knowledgecente/knowctrSPC_Concepts
.htm
3) http://www.ehow.com/list_6767176_advantages-statistical-process-
control.html
4) http://www.qualityi2.com/spc.htm