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Statistical Process Control (SPC) Chapter 6

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Page 1: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Statistical Process Control (SPC)

Chapter 6

Page 2: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

MGMT 326

Foundations

of Operatio

nsIntroductio

n

Strategy

ManagingProjects

QualityAssuran

ce

Capacityand

Facilities

Planning& Control

Products &

Processes

ProductDesign

ProcessDesign

ManagingQuality

Statistical

ProcessControl

Just-in-Time & Lean Systems

Page 3: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Assuring Customer-Based Quality

Customer Requirements

Product Specifications

Process Specifications

Product launch

activities: Revise

periodically

Statistical Process Control:

Measure & monitor quality

Ongoingactivity

Page 4: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Statistical Process Control (SPC)

Meancharts

Rangecharts

and known

, unknown

CapableProcess

es

= target

= target

Variation

Basic SPC

Concepts

Objectives

First steps

Types ofMeasure

s

Attributes

Variables

SPC for Variabl

es

Page 5: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Variation in a Transformation Process

•Variation in inputs create variation in outputs• Variations in the transformation process create variation in outputs

Inputs• Facilities• Equipment• Materials• Energy

Transformation Process

OutputsGoods &Services

Page 6: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Variation in a Transformation Process

•Variation in inputs create variation in outputs• Variations in the transformation process create variation in outputs

Inputs• Facilities• Equipment• Materials• Energy

Transformation Process

OutputsGoods &Services

Customerrequiremen

tsare not met

Page 7: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Variation

All processes have variation. Common cause variation is random

variation that is always present in a process.

Assignable cause variation results from changes in the inputs or the process. The cause can and should be identified. Assignable cause variation shows that

the process or the inputs have changed, at least temporarily.

Page 8: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Objectives of Statistical Process Control (SPC)

Find out how much common cause variation the process has

Find out if there is assignable cause variation.

A process is in control if it has no assignable cause variation Being in control means that the process is

stable and behaving as it usually does.

Page 9: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

First Steps in Statistical Process Control (SPC)

Measure characteristics of goods or services that are important to customers

Make a control chart for each characteristic The chart is used to determine whether the

process is in control

Page 10: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Types of Measures (1)Variable Measures

Continuous random variables Measure does not have to be a whole

number. Examples: time, weight, miles per

gallon, length, diameter

Page 11: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Types of Measures (2)Attribute Measures

Discrete random variables – finite number of possibilities Also called categorical variables The measure may depend on perception or

judgment. Different types of control charts are

used for variable and attribute measures

Page 12: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Examples of Attribute Measures

Good/bad evaluations Good or defective Correct or incorrect

Number of defects per unit Number of scratches on a table

Opinion surveys of quality Customer satisfaction surveys Teacher evaluations

Page 13: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

SPC for VariablesThe Normal Distribution

= the population mean = the standard deviation for the population99.74% of the area under the normal curve is between - 3 and + 3

Page 14: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

SPC for Variables The Central Limit Theorem

Samples are taken from a distribution with mean and standard deviation .k = the number of samplesn = the number of units in each sample

The sample means are normally distributed with mean and standard deviation

when k is large.

x n

Page 15: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Limits for the Sample Mean when and are known x is a variable, and samples of size n are

taken from the population containing x. Given: = 10, = 1, n = 4Then

A 99.7% confidence interval for is

1 10.5

24x n

x

x

( 3 , 3 ) 3 , 3x x n n

Page 16: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Limits for the Sample Mean when and are known (2)

The lower control limit for is

x

x

13 3 10 3

4xLCL

n

10 1.5 8.5

Page 17: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Limits for the Sample Mean when and are known (3)

The upper control limit for is

x

x

13 3 10 3

4xUCL

n

10 1.5 11.5

Page 18: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Limits for the Sample Mean when and are unknown

If the process is new or has been changed recently, we do not know and

Example 6.1, page 180 Given: 25 samples, 4 units in each

sample and are not given k = 25, n = 4

x

Page 19: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Limits for the Sample Mean when and are unknown (2)

1. Compute the mean for each sample. For example,

2. Compute

x

1

15.85 16.02 15.83 15.9315.91

4x

95.1525

75.398

25

94.15...00.1691.15

25

25

11

m

m

k

m

m x

k

xx

Page 20: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Limits for the Sample Mean when and are unknown (3)

For the ith sample, the sample range is Ri = (largest value in sample i )

- (smallest value in sample i )3. Compute Ri for every sample. For

example,

R1 = 16.02 – 15.83 = 0.19

x

Page 21: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Limits for the Sample Mean when and are unknown (4)

4. Compute , the average range

We will approximate by , whereA2 is a number that depends on the sample size n. We get A2 from Table 6.1, page 182

x

R

3x

2A R

29.025

17.7

25

30.0...27.019.01

k

RR

k

ii

Page 22: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Limits for the Sample Mean when and are unknown (5)

5. n = the number of units in each sample = 4.From Table 6.1, A2 = 0.73.

The same A2 is used

for every problemwith n = 4.

x

Factor for x-Chart

A2 D3 D42 1.88 0.00 3.273 1.02 0.00 2.574 0.73 0.00 2.285 0.58 0.00 2.116 0.48 0.00 2.007 0.42 0.08 1.928 0.37 0.14 1.869 0.34 0.18 1.8210 0.31 0.22 1.7811 0.29 0.26 1.7412 0.27 0.28 1.7213 0.25 0.31 1.6914 0.24 0.33 1.6715 0.22 0.35 1.65

Factors for R-ChartSample Size (n)

Page 23: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Limits for the Sample Mean when and are unknown (6)

6. The formula for the lower control limit is

7. The formula for the upper control limit is

x

2 15.95 0.73(0.29) 15.74LCL x A R

2 15.95 0.73(0.29) 16.16UCL x A R

Page 24: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Chart for x

The variation between LCL = 15.74 and UCL = 16.16is the common cause variation.

Page 25: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Common Cause andSpecial Cause Variation

The range between the LCL and UCL, inclusive, is the common cause variation for the process. When is in this range, the process is in control. When a process is in control, it is

predictable. Output from the process may or may not meet customer requirements.

When is outside control limits, the process is out of control and has special cause variation. The cause of the variation should be identified and eliminated.

x

x

Page 26: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Limits for R

1. From the table, get D3 and D4

for n = 4.

D3 = 0

D4 = 2.28

Factor for x-Chart

A2 D3 D42 1.88 0.00 3.273 1.02 0.00 2.574 0.73 0.00 2.285 0.58 0.00 2.116 0.48 0.00 2.007 0.42 0.08 1.928 0.37 0.14 1.869 0.34 0.18 1.8210 0.31 0.22 1.7811 0.29 0.26 1.7412 0.27 0.28 1.7213 0.25 0.31 1.6914 0.24 0.33 1.6715 0.22 0.35 1.65

Factors for R-ChartSample Size (n)

Page 27: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Limits for R (2)

2. The formula for the lower control limit is

2. The formula for the upper control limit is

3 0(0.29) 0LCL D R

66.0)29.0(28.24 RDUCL

Page 28: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

fig_ex06_03

Page 29: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Statistical Process Control (SPC)

CapableProcess

es

= target

= target

Meancharts

Rangecharts

and known

, unknown

Variation

Basic SPC

Concepts

Objectives

First steps

Types ofMeasure

s

Attributes

Variables

SPC for Variabl

es

Page 30: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Capable Transformation Process

Capable Transformation

Process

Inputs• Facilities• Equipment• Materials• Energy

OutputsGoods &Servicesthat meet

specifications

a specification that meets customer requirements+ a capable process (meets specifications)= Satisfied customers and repeat business

Page 31: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Review of Specification Limits

The target for a process is the ideal value Example: if the amount of beverage in a bottle

should be 16 ounces, the target is 16 ounces Specification limits are the acceptable range of

values for a variable Example: the amount of beverage in a bottle must

be at least 15.8 ounces and no more than 16.2 ounces.

The allowable range is 15.8 – 16.2 ounces. Lower specification limit = 15.8 ounces or LSL = 15.8

ounces Upper specification limit = 16.2 ounces or USL = 16.2

ounces

Page 32: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Control Limits vs. Specification Limits

Control limits show the actual range of variation within a process What the process is doing

Specification limits show the acceptable common cause variation that will meet customer requirements. Specification limits show what the

process should do to meet customer requirements

Page 33: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Process is Capable: Control Limits are

within or on Specification Limits

UCL

LCL

X

Lower specification limit

Upper specification limit

Page 34: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Process is Not Capable: One or BothControl Limits are Outside Specification

Limits

UCL

LCL

X

Lower specification limit

Upper specification limit

Page 35: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Capability and Conformance Quality

A process is capable if It is in control and It consistently produces outputs that meet

specifications. This means that both control limits for the

mean must be within the specification limits A capable process produces outputs that have

conformance quality (outputs that meet specifications).

Page 36: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Process Capability Ratio

Use to determine whether the process is capable when = target.

If , the process is capable, If , the process is not

capable.

pC

pC

6p

USL LSLC

1pC

1pC

Page 37: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Example

Given: Boffo Beverages produces 16-ounce bottles of soft drinks. The mean ounces of beverage in Boffo's bottle is 16. The allowable range is 15.8 – 16.2. The standard deviation is 0.06. Find and determine whether the process is capable.

pC

pC

Page 38: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Given: = 16, = 0.06, target = 16LSL = 15.8, USL = 16.2

The process is capable.

Example (2)pC

16.2 15.81.11

6 6(0.06)p

USL LSLC

1pC

Page 39: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Process Capability Index Cpk

If Cpk > 1, the process is capable.

If Cpk < 1, the process is not capable.

We must use Cpk when does not equal the target.

smaller ,3 3pk

USL LSLC

Page 40: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Cpk Example

Given: Boffo Beverages produces 16-ounce bottles of soft drinks. The mean ounces of beverage in Boffo's bottle is 15.9. The allowable range is 15.8 – 16.2. The standard deviation is 0.06. Find and determine whether the process is capable.

pkC

Page 41: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Cpk Example (2)

Given: = 15.9, = 0.06, target = 16LSL = 15.8, USL = 16.2

Cpk < 1. Process is not capable.

smaller ,3 3pk

USL LSLC

16.2 15.9 15.9 15.8

smaller ,3(0.06) 3(0.06)

0.3 0.1, {1.67,0.56} 0.56

0.18 0.18smaller smaller

Page 42: Statistical Process Control (SPC) Chapter 6. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Capacity and

Statistical Process Control (SPC)

CapableProcess

es

= target

= target

Meancharts

Rangecharts

and known

Variation

Basic SPC

Concepts

Objectives

First steps

Types ofMeasure

s

Attributes

Variables

SPC for Variabl

es

, unknown