LECTURE 5

STATISTICAL PROCESS
CONTROL
Operations Management - 5th Edition
Roberta Russell & Bernard W. Taylor, III
Chapter 4
Variability in a Process
Random Non-Random
common causes special causes
due to identifiable
inherent in a process
factors
can be eliminated Assignable causes
only through can be modified
improvements in through operator or
the system management action
Generally in control Out of control situation

Nov 13, 2017 Lecture 5 2

Statistical Process Control
Statistical process control (SPC) involves using statistical
techniques to measure and analyze the variation in processes.
Most often used for manufacturing processes, but useful for
services as well, the intent of SPC is to monitor product quality and
maintain processes to fixed targets.
With statistical process control (SPC) methods and periodic process
inspection, we can determine whether a process is staying in
control or is potentially moving out of control at a given point in
time.
The process of SPC involves:
1. Periodically select sample, inspect them, and record result
2. Identify if variations are in samples and determine whether it is
common/random or special
3. Take action

Nov 13, 2017 Lecture 5 3

Elements of SPC
Sampling:
Sampling is concerned with the selection of a subset of individuals from
within a population to estimate characteristics of the whole population.
Control Charts:
Control charts, also known as Shewhart charts or process-behaviour
charts, in statistical process control are tools used to determine whether
or not a manufacturing or business process is in a state of statistical
control.
Corrective actions

Nov 13, 2017 Lecture 5 4

Quality 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
Nov 13, 2017 Lecture 5 5
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

Nov 13, 2017 Lecture 5 6

Control Charts
A graph that Types of charts
establishes control Attributes
limits of a process p-chart
c-chart
Control limits
Variables
upper and lower
range (R-chart)
bands of a control
mean (x bar chart)
chart

Nov 13, 2017 Lecture 5 7

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
Nov 13, 2017 Lecture 5 8
Control Chart

Nov 13, 2017 Lecture 5 9

Risk of Error

Nov 13, 2017 Lecture 5 10

X-Bar Chart (Mean Chart) and R
Chart
X-bar and R (range) chart is a pair of control charts used
with processes that have a subgroup size of two or
more.
The standard chart for variables data, X-bar and R charts
help determine if a process is stable and predictable.
The X-bar chart shows how the mean or average
changes over time.
The R chart shows how the range of the subgroups
changes over time.
It is also used to monitor the effects of process
improvement theories.

Nov 13, 2017 Lecture 5 11

Mean Chart
= +
=
1=1
=


=

Nov 13, 2017 Lecture 5 12
X Bar Chart

Nov 13, 2017 Lecture 5 13

Example

Nov 13, 2017 Lecture 5 14

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

Nov 13, 2017 Lecture 5 15

x- bar Chart Example
5.10

5.08 UCL = 5.08

5.06

5.04
Mean

x= = 5.01
5.02

5.00

4.98
LCL = 4.94
4.96

4.94 | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10
Sample number
4.92
Nov 13, 2017 Lecture 5 16
R-Chart

Nov 13, 2017 Lecture 5 17

 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

Nov 13, 2017 Lecture 5 18

R-Chart Example
0.28
0.24
UCL = 0.243
0.20
0.16
Range

R = 0.115
0.12
0.08
0.04 LCL = 0
0 | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10
Sample number

Nov 13, 2017 Lecture 5 19

Using x- bar and R-Charts
Together
Process average and process
variability must be in control
It is possible for samples to have very
narrow ranges, but their averages is
beyond control limits
It is possible for sample averages to
be in control, but ranges might be
very large
Nov 13, 2017 Lecture 5 20
P-Chart
P chart or proportion chart is used to monitor
the proportion of items in a processes that fall
into a certain category.
In SPC, the p-chart is a type of control chart
used to monitor the proportion of
nonconforming units in a sample, where the
sample proportion nonconforming is defined as
the ratio of the number of nonconforming units
to the sample size, n.

Nov 13, 2017 Lecture 5 21

P-Chart

Nov 13, 2017 Lecture 5 22

 Hometown Bank
Example
The operations manager of the booking services department of Hometown
Bank is concerned about the number of wrong customer account numbers
recorded by Hometown personnel.
Each week a random sample of 2,500 deposits is taken, and the number of
incorrect account numbers is recorded. The results for the past 12 weeks are
shown in the following table.

Is the booking process out of statistical control? Use three-sigma

Nov 13, 2017 Lecture 5 23
control limits.
 Hometown Bank
Using a p-Chart to monitor a process
n = 2500 Sample Wrong Proportion
147 Number Account # Defective
p= = 0.0049
12(2500) 1 15 0.006
2 12 0.0048
p = p(1 p)/n 3 19 0.0076
4 2 0.0008
p = 0.0049(1 0.0049)/2500
5 19 0.0076
6 4 0.0016
7 24 0.0096
p = 0.0014
8 7 0.0028
UCLp = 0.0049 + 3(0.0014) 9 10 0.004
= 0.0091 10 17 0.0068
11 15 0.006
LCLp = 0.0049 3(0.0014)
12 3 0.0012
= 0.0007
Nov 13, 2017 Total
Lecture 5 147 24
 Hometown Bank
Using a p-Chart to monitor a process

Example

Nov 13, 2017 Lecture 5 25

C-Chart
C-Chart used to monitor the number of times a characteristic
occurs in a single unit.

Nov 13, 2017 Lecture 5 26

c-Chart (cont.)
Number of defects in 15 sample rooms

NUMBER
OF
SAMPLE DEFECTS
c = 190/15 = 12.67
1 12
2 8
3 16 UCL = c + zc
= 12.67 + 3 12.67
: : = 23.35

: :
15 15 LCL = c + zc
190 = 12.67 - 3 12.67
= 1.99

Nov 13, 2017 Lecture 5 27

 Example C Chart
24
UCL = 23.35
21
Number of defects

18
c = 12.67

15

12

3 LCL = 1.99

2 4 6 8 10 12 14 16
Sample number

Nov 13, 2017 Lecture 5 28

Process Capability
After a process has been determined to be stable
(remaining samples all lie within control limits), the
process parameters can be used to estimate the process
capability.
The process capability is how capable the process is of
producing output that conforms to certain
requirements.
Process capability is determined by comparing the natural
variability of a process (or product or service) to customer or
engineering specifications.

Nov 13, 2017 Lecture 5 29

Process capability quantification
The capability is quantified with a measure called a process
capability index, Cp, the ratio of the spec width to the natural
tolerance of the process, where
Spec width is the difference between upper and lower specification
limits, that is, USL - LSL.
Natural tolerance is defined as 6, where is the process standard
deviation, usually as estimated from the R -chart.
In numerical terms, the process capability ratio is expressed as
USL LSL
Cp
6

Nov 13, 2017 Lecture 5 30

Process Capability
Tolerances
design specifications reflecting product requirements
Process capability
range of natural variability in a process what we measure with control
charts
Technically, Cp = 1 means that the process is capable because
virtually the entire process distribution lies within the specs.

Nov 13, 2017 Lecture 5 31

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
6(0.12)
= 1.39
Nov 13, 2017 Lecture 5 32
Process capability Index
We are often required to compare the output of a stable process
with the process specifications and make a statement about how
well the process meets specification.
To do this we compare the natural variability of a stable process
with the process specification limits.

Nov 13, 2017 Lecture 5 33

Process Capability Index

Nov 13, 2017 Lecture 5 34

 Intensive Care Lab
Example

The intensive care unit lab process has an average turnaround

time of 26.2 minutes and a standard deviation of 1.35
minutes.
The nominal value for this service is 25 minutes with an upper
specification limit of 30 minutes and a lower specification
limit of 20 minutes.
The administrator of the lab wants to have three-sigma
performance for her lab. Is the lab process capable of this
level of performance?

Upper specification = 30 minutes

Lower specification = 20 minutes
Average service = 26.2 minutes
= 1.35 minutes
Nov 13, 2017 Lecture 5 35
 Intensive Care Lab
Assessing Process Capability

Example Upper specification = 30 minutes

Lower specification = 20 minutes
Average service = 26.2 minutes
= 1.35 minutes

= =
Cpk = Minimum of
x Lower specification ,
Upper specification x
3 3

26.2 20.0 30.0 26.2

Cpk = Minimum of
3(1.35) , 3(1.35)

Process
Cpk = Minimum of 1.53, 0.94 = 0.94 Capability
Index
Nov 13, 2017 Lecture 5 36
 Intensive Care Lab
Assessing Process Capability
Example
Upper specification - Lower specification
Cp =
6
30 - 20
Cp = = 1.23 Process Capability Ratio
6(1.35)

Does not meet 3 (1.00 Cpk) target due to a shift in mean

(Note variability is ok since Cp is over 1.0)

Before Process Modification

Upper specification = 30.0 minutes Lower specification =
20.0 minutes
Average service = 26.2 minutes
= 1.35 minutes Cpk = 0.94 Cp = 1.23
Nov 13, 2017 Lecture 5 37
Problem 4-1
The Great North Woods Clothing
Company sells specialty outdoor
clothing through its catalogue. A quality
problem that generates customer
complaints occurs when a warehouse
employee fills an order with the wrong
items. The company has decided to
implement a process control plan by
inspecting the ordered items after they
have been obtained from the warehouse
and before they have been packaged.
The company has taken 30 samples
(during a 30-day period), each for 100
orders, and recorded the number of
"defective" orders in each sample, as in
table.
Construct a p-chart for the company
that describes 99.74% (3) of the
random variation in the process, and
indicate if the process seems to be out of
control at any time.

Nov 13, 2017 Lecture 5 38

Sample
ProblemNumber of Defectives
Proportion Defective
1 12 0.12
2 14 0.14
3 10 0.1
4 16 0.16
5 18 0.18
6 19 0.19
7 14 0.14
8 20 0.2
9 18 0.18
10 17 0.17
11
12 11
9 0.09
0.11
di
= 0.151
p =
13 14 0.14 100 30
14 12 0.12
15 7 0.07
16 6 0.06 Limit p (1 - p )
17 3 0.03 pz 0.151(1 - 0.151)
n 0.151 3
18 7 0.07 100
19 10 0.1
20 14 0.14 UCL = 0.258415
21 18 0.18 LCL= 0.043585
22 22 0.22
23 26 0.26
24 20 0.2
25 24 0.24
26 18 0.18
27 19 0.19
28 20 0.2
29 17 0.17
30 18 0.18
Total 453 0.151

Nov 13, 2017 Lecture 5 39

 P Chart
0.3

0.25

0.2

0.15

0.1

0.05

0
0 5 10 15 20 25 30 35

Proportion Mean LCL UCL

Nov 13, 2017 Lecture 5 40

Problem

Nov 13, 2017 Lecture 5 41

Problem

Nov 13, 2017 Lecture 5 42

 Exercise 4-5
The Great North Woods Clothing
Company is a mail-order company that
processes thousands of mail and
telephone orders each week. They have a
customer service number to handle
customer order problems, inquiries, and
complaints. The company wants to
monitor the number of customer calls
that can be classified as complaints. The
total number of complaint calls the
customer service department has
received for each of the last 30 weekdays
are shown as follows:
1. Construct a c-chart for this process with
3o control limits and indicate if the
process was out of control at any time.
2.What nonrandom (i.e., assignable)
causes night result in the process being
out of control?

Nov 13, 2017 Lecture 5 43

Sample
Problem Number of Defectives
1 27
2 15
3 38
4 41
5 19
6 23
7 21
8 16
9 33
10 35
11 26 c i
12 42 c = = 24.73333
30
13 40
14 35
15 25
16 19 Limit
17 12 c z c 24.73 3 24.73
18 17
19 18
20 26 UCL = 39.65312
21 31 LCL= 9.813548
22 14
23 18
24 26
25 27
26 35
27 20
28 12
29 16
30 15
Total 742

Nov 13, 2017 Lecture 5 44

 C Chart
45

40

35
D
e 30
f
e 25
c
t 20
i
v 15
e
10

0
0 5 10 15 20 25 30
Samples

Proportion Defective Mean LCL UCL

Nov 13, 2017 Lecture 5 45

Problem

Nov 13, 2017 Lecture 5 46

Problem

Nov 13, 2017 Lecture 5 47

Problem

Nov 13, 2017 Lecture 5 48

Problem

Nov 13, 2017 Lecture 5 49

Problem

Nov 13, 2017 Lecture 5 50

Problem

Nov 13, 2017 Lecture 5 51


Problem 4-42
Metropolitan General Hospital is a city-owned and -operated public hospital. Its
emergency room is the largest and most prominent in the city. Approximately 70%
of emergency cases in the city come or are sent to Metro General's emergency
room. As a result, the emergency room is often crowded and the staff is
overworked, causing concern among hospital administrators and city officials about
the quality of service and health care the emergency room is able to provide. One of
the key quality attributes administrators focus on is patient waiting time-that is, the
time between when a patient checks in and registers and when the patient first sees
an appropriate medical staff member. Hospital administration wants to monitor
patient waiting time using statistical process control charts. At different times of
the day over a period of several days, patient waiting times were recorded at
random with the following results:
a)Develop an z-chart to be used in conjunction with an R-chart to monitor patient
waiting time and indicate if the process appears to be in control.
b)The city has established a requirement that emergency room patients have a
waiting time of 25 minutes 5 minutes. Based on the results in part (a) is the
emergency room capable of meeting this requirement with its current process?

Nov 13, 2017 Lecture 5 52

Problem

Nov 13, 2017 Lecture 5 53

Problem Waiting Times
Sample 1 2 3 4 5 Mean Range
1 27 18 20 23 19 21.4 9
2 22 25 31 40 17 27 23
3 16 15 22 19 23 19 8
4 35 27 16 20 24 24.4 19
5 21 33 45 12 22 26.6 33
6 17 15 22 20 30 20.8 15
7 25 21 26 33 19 24.8 14
8 15 38 23 25 31 26.4 23
9 31 26 24 35 32 29.6 11
10 28 23 29 20 27 25.4 9
245.4 164
24.54 16.4

X Chart x A R A2 0.58 sample =5

2

UCL= 34.052

LCL= 15.028

R Chart D
UCL = D4 R 32.8 2

LCL D3 R 0 0

Nov 13, 2017 Lecture 5 54

 X chart and R Chart
35
40

35 30

30 25

25
20

20
15

15
10
10

5
5

0
0
0 2 4 6 8 10 12
0 2 4 6 8 10 12
Sample
Sample

Range Mean Range UCL LCL

Sample Mean Mean UCL LCL

Nov 13, 2017 Lecture 5 55