Technical Note 8

Statistically Process Control

Basic Forms of Statistical Sampling for
Quality Control
Sampling to accept or reject the immediate lot
of product at hand (Acceptance Sampling).

Sampling to determine if the process is within
acceptable limits (Statistical Process Control)


Statistical Fundamentals
Statistical Thinking
Is a decision-making skill demonstrated by the
ability to draw to conclusions based on data.
Why Do Statistics Sometimes Fail in the
Workplace?
Regrettably, many times statistical tools do not
create the desired result. Why is this so? Many
firms fail to implement quality control in a
substantive way.

Basic Forms of Variation
Common (random) variation is inherent
in the production process.
Assignable (nonrandom) variation is
caused by factors that can be clearly
identified and possibly managed.
Statistical Fundamentals
Sampling Methods
To ensure that processes are stable, data are
gathered in samples.
Random samples. Randomization is useful
because it ensures independence among
observations. To randomize means to sample is
such a way that every piece of product has an equal
chance of being selected for inspection.
Systematic samples. Systematic samples have
some of the benefits of random samples without the
difficulty of randomizing.
Statistical Fundamentals
Sampling Methods
To ensure that processes are stable, data are
gathered in samples (continued)
Sampling by Rational Subgroup. A rational
subgroup is a group of data that is logically
homogenous; variation within the data can provide a
yardstick for setting limits on the standard variation
between subgroups.
UCL
LCL
UCL
LCL
UCL
LCL
Statistical
Process
Control
Charts
Number or percent of defective items in a lot.
Number of defects per item.
Types of defects.
Value assigned to defects
(minor=1, major=5, critical=10)
Length
Weight
Time
Diameter
Tensile Strength
Strength of Solution
Height
Volume
Temperature
Types of Data
Things we count
Variables Data
Attribute Data
Things we measure
Process Control Charts
Variables and Attributes
Variables
Attributes
X (process population average) P (proportion defective)
X-bar (mean for average) np (number defective)
R (range) C (number conforming)
MR (moving range) U (number nonconforming)
S (standard deviation)
Process Control Charts
X-bar and R Charts
The X-bar chart is a process chart used to
monitor the average of the characteristics being
measured. To set up an X-bar chart select
samples from the process for the characteristic
being measured. Then form the samples into
rational subgroups. Next, find the average value
of each sample by dividing the sums of the
measurements by the sample size and plot the
value on the process control X-bar chart.

Process Control Charts
X-bar and R Charts (continued)
The R chart is used to monitor the variability or
dispersion of the process. It is used in
conjunction with the X-bar chart when the
process characteristic is variable. To develop
an R chart, collect samples from the process
and organize them into subgroups, usually of
three to six items. Next, compute the range, R,
by taking the difference of the high value in the
subgroup minus the low value. Then plot the R
values on the R chart.
Process Control Charts
X-bar and R Charts
Example of x-Bar and R Charts:
Required Data
Sample Obs 1 Obs 2 Obs 3 Obs 4 Obs 5
1 10.682 10.689 10.776 10.798 10.714
2 10.787 10.86 10.601 10.746 10.779
3 10.78 10.667 10.838 10.785 10.723
4 10.591 10.727 10.812 10.775 10.73
5 10.693 10.708 10.79 10.758 10.671
6 10.749 10.714 10.738 10.719 10.606
7 10.791 10.713 10.689 10.877 10.603
8 10.744 10.779 10.11 10.737 10.75
9 10.769 10.773 10.641 10.644 10.725
10 10.718 10.671 10.708 10.85 10.712
11 10.787 10.821 10.764 10.658 10.708
12 10.622 10.802 10.818 10.872 10.727
13 10.657 10.822 10.893 10.544 10.75
14 10.806 10.749 10.859 10.801 10.701
15 10.66 10.681 10.644 10.747 10.728
Example of x-bar and R charts: Step 1. Calculate
sample means, sample ranges, mean of means, and
mean of ranges.
Sample Obs 1 Obs 2 Obs 3 Obs 4 Obs 5 Avg Range
1 10.682 10.689 10.776 10.798 10.714 10.732 0.116
2 10.787 10.86 10.601 10.746 10.779 10.755 0.259
3 10.780 10.667 10.838 10.785 10.723 10.759 0.171
4 10.591 10.727 10.812 10.775 10.73 10.727 0.221
5 10.693 10.708 10.79 10.758 10.671 10.724 0.119
6 10.749 10.714 10.738 10.719 10.606 10.705 0.143
7 10.791 10.713 10.689 10.877 10.603 10.735 0.274
8 10.744 10.779 10.11 10.737 10.75 10.624 0.669
9 10.769 10.773 10.641 10.644 10.725 10.710 0.132
10 10.718 10.671 10.708 10.85 10.712 10.732 0.179
11 10.787 10.821 10.764 10.658 10.708 10.748 0.163
12 10.622 10.802 10.818 10.872 10.727 10.768 0.250
13 10.657 10.822 10.893 10.544 10.75 10.733 0.349
14 10.806 10.749 10.859 10.801 10.701 10.783 0.158
15 10.660 10.681 10.644 10.747 10.728 10.692 0.103
Averages 10.728 0.220400
Example of x-bar and R charts: Step 2. Determine
Control Limit Formulas and Necessary Tabled
Values
x Chart Control Limits
UCL = x + A R
LCL = x - A R
2
2
R Chart Control Limits
UCL = D R
LCL = D R
4
3
n A2 D3 D4
2 1.88 0 3.27
3 1.02 0 2.57
4 0.73 0 2.28
5 0.58 0 2.11
6 0.48 0 2.00
7 0.42 0.08 1.92
8 0.37 0.14 1.86
9 0.34 0.18 1.82
10 0.31 0.22 1.78
11 0.29 0.26 1.74
Example of x-bar and R charts: Steps 3&4.
Calculate x-bar Chart and Plot Values
10.601
10.856
= ) .58(0.2204 - 10.728 R A - x = LCL
= ) .58(0.2204 10.728 R A + x = UCL
2
2
=
+ =
10.550
10.600
10.650
10.700
10.750
10.800
10.850
10.900
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Sample
M
e
a
n
s
UCL
LCL
Example of x-bar and R charts: Steps
5&6. Calculate R-chart and Plot Values
0
0.46504
= =
= =
) 2204 . 0 )( 0 ( R D = LCL
) 2204 . 0 )( 11 . 2 ( R D = UCL
3
4
0 . 0 0 0
0 . 1 0 0
0 . 2 0 0
0 . 3 0 0
0 . 4 0 0
0 . 5 0 0
0 . 6 0 0
0 . 7 0 0
0 . 8 0 0
1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5
S a m p l e
R
UCL
LCL
UCL
LCL
Samples
over time
1 2 3 4 5 6
UCL
LCL
Samples
over time
1 2 3 4 5 6
UCL
LCL
Samples
over time
1 2 3 4 5 6
Normal Behavior
Possible problem, investigate
Possible problem, investigate
Interpreting Control
Charts
Interpreting Control Charts
Process Control Charts
Implications of a Process Out of Control
If a process loses control and becomes
nonrandom, the process should be
stopped immediately.
In many modern process industries where just-
in-time is used, this will result in the stoppage
of several work stations.
The team of workers who are to address the
problem should use a structured problem
solving process.

Process Control Charts
Control Charts for Attributes
We now shift to charts for attributes. These
charts deal with binomial and Poisson processes
that are not measurements.
We will now be thinking in terms of defects
and defectives rather than diameters or widths.
A defect is an irregularity or problem with a larger
unit.
A defective is a unit that, as a whole, is not
acceptable or does not meet specifications.
Process Control Charts
p Charts for Proportion Defective
The p chart is a process chart that is used to
graph the proportion of items in a sample that
are defective (nonconforming to specifications)
p charts are effectively used to determine when
there has been a shift in the proportion
defective for a particular product or service.
Typical applications of the p chart include
things like late deliveries, incomplete orders,
and clerical errors on written forms.

Process Control Charts
np Charts
The np chart is a graph of the number of
defectives (or nonconforming units) in a
subgroup. The np chart requires that the
sample size of each subgroup be the same each
time a sample is drawn.
When subgroup sizes are equal, either the p or
np chart can be used. They are essentially the
same chart.


Example of Constructing a p-Chart:
Required Data
1 100 4
2 100 2
3 100 5
4 100 3
5 100 6
6 100 4
7 100 3
8 100 7
9 100 1
10 100 2
11 100 3
12 100 2
13 100 2
14 100 8
15 100 3
Statistical Process Control Formulas:
Attribute Measurements (p-Chart)
p =
T o t al N u m b er o f D efe ct i v es
T o t al N u m b er o f O b s e rv at i o n s
n
s
) p - (1 p
=
p
p
p
z - p = LCL
z + p = UCL
s
s
Given:
Compute control limits:
1. Calculate the sample
proportions, p (these
are what can be plotted
on the p-chart) for each
sample.

Sample n Defectives p
1 100 4 0.04
2 100 2 0.02
3 100 5 0.05
4 100 3 0.03
5 100 6 0.06
6 100 4 0.04
7 100 3 0.03
8 100 7 0.07
9 100 1 0.01
10 100 2 0.02
11 100 3 0.03
12 100 2 0.02
13 100 2 0.02
14 100 8 0.08
15 100 3 0.03
Example of Constructing a p-chart: Step 1
2. Calculate the average of the sample proportions.
0.036 =
1500
55
= p
3. Calculate the standard deviation of the sample
proportion
.0188 =
100
.036) - .036(1
=
) p - (1 p
=
p
n
s
Example of Constructing a p-chart:
Steps 2&3
4. Calculate the control limits.
3(.0188) .036
UCL = 0.0924
LCL = -0.0204 (or 0)
p
p
z - p = LCL
z + p = UCL
s
s
Example of Constructing a p-chart: Step 4
Example of Constructing a p-Chart: Step 5
5. Plot the individual sample proportions, the average
of the proportions, and the control limits
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Observation
p
UCL
LCL
Sample n Defectives p
1 100 4 0.04
2 100 2 0.02
3 100 5 0.05
4 100 3 0.03
5 100 6 0.06
6 100 4 0.04
7 100 3 0.03
8 100 7 0.07
9 100 1 0.01
10 100 2 0.02
11 100 3 0.03
12 100 2 0.02
13 100 2 0.02
14 100 8 0.08
15 100 3 0.03
Process Capability
Process Stability and Capability
Once a process is stable, the next emphasis is to
ensure that the process is capable.
Process capability refers to the ability of a
process to produce a product that meets
specifications.


Process Capability
Process limits
Tolerance limits
How do the limits relate to one another?
Process Capability
Process Versus Sampling Distribution
To understand process capability we must first
understand the differences between population
and sampling distributions.
Population distributions are distributions with all the
items or observations of interest to a decision maker.
A population is defined as a collection of all the
items or observations of interest to a decision maker.
A sample is subset of the population. Sampling
distributions are distributions that reflect the
distributions of sample means.


99.7% of all
sample means
Population,
Individual
items
Sample
means
Central Limit Theorem Illustrated
m-3s
x
m+3s
x
m
Process Control Charts
Summary of Chart Formulas (Table 12.2 in the textbook)

Control Limits are based on the
Standard Normal Distribution Curve
x
0 1 2 3 -3 -2 -1
z

Standard
deviation
units or z
units.
4 (95.5%)
6 (99.7%)
2
(68%)

o
o
o
Process Capability (PC) is the range in
which "all" output can be produced.
Definition:
PC = 6
o
We establish the Upper Control Limits (UCL) and the Lower
Control Limits (LCL) with plus or minus 3 standard deviations.
Based on this we can expect 99.7% of our sample observations to
fall within these limits.

If the process capability of a normally distributed
process is .084, the process is in control, and is
centered at .550. What are the upper and lower
control limits for this process?


Process Capability = 6 o
6 o = .084 o = .014
UCL = .550 + 3(.014) = .592
LCL = .550 - 3(.014) = .508
LCL
UCL










In control
Process
is stable
Process center
has shifted
Out of control
-3o
x
+3o
x

Process Capability
X
4.90 4.95
5.00
5.05 5.10 5.15
cm
Tolerance band
Process capability (6 )
LTL UTL
Output
out of spec
Output
out of spec
Process output
distribution
5.010
s
Process Capability Chart
LCL UCL
This process is
CAPABLE of
producing all good
output.

Control the process.
This process is
NOT CAPABLE.

INSPECT - Sort out
the defectives

Lower
Tolerance
Limit
Upper
Tolerance
Limit
Process Capability
Process Capability Index, C
pk
|
|
.
|

\
|

o o 3
X - UTL
or
3
LTL X
min = C
pk
Shifts in Process Mean
Capability Index shows
how well parts being
produced fit into design
limit specifications.
As a production
process produces
items small shifts in
equipment or systems
can cause differences
in production
performance from
differing samples.
Upper Tol Limit - X
3
Upper Tol Limit - X

3
X - Lower Tol Limit


X - Lower Tol Limit

OR
OR
Where Z
min
is the smaller of:
the smaller of:
C
pk
=
Z
min
3
C
pk
=
Index C
pk
compares the spread and location
of the process, relative to the specifications.
{
{
Alternate Form
Process Capability Index
s
s
s
s
Given:
process mean = 1.0015
o = .001
LTL = .994
UTL = 1.006
Process Capability Index- Example
3
Upper Tol Limit - X
3
X - Lower Tol Limit

OR
{
o
o
C
pk
=
Smaller of:
C
pk
= min
1.0015 -.994 1.006 - 1.0015
3(.001) 3 (.001)
or
C
pk
= min [2.5 or 1.5] = 1.5

LTL UTL
C
pk
= 1.0
LTL UTL
C
pk
= 0.60
LTL UTL
C
pk
= 1.33
LTL UTL
C
pk
= 0.80
(f)
LTL UTL
C
pk
= 1.0
(d)
LTL UTL
C
pk
= 3.0
Process Capability: C
pk
Varieties
Process Control Charts
Some Control Chart Concepts
How Do We Use Control Charts to
Continuously Improve?
One of the goals of the control chart user is to
reduce variation. Over time, as processes are
improved, control limits are recomputed to show
improvements in stability. As upper and lower
control limits get closer and closer together, the
process improving.
The focus of control charts should be on continuous
improvement and they should be updated only when
there is a change in the process.
Transparency 12-73 2001 Prentice-Hall
Six Sigma Quality
A philosophy and set of methods companies use
to eliminate defects in their products and
processes
Seeks to reduce variation in the processes that
lead to product defects
The name, six sigma refers to the variation
that exists within plus or minus six standard
deviations of the process outputs
o 6
Process Capability
Six-sigma program such as those pioneered by
Motorola Corporation result in highly capable
processes (3.4 defects/million).
Process Capability
The Difference Between Capability and
Stability?
Once again, a process is capable if individual
products consistently meet specifications.
A process is stable if only common variation is
present in the process.


Acceptance Sampling
Acceptance Sampling
A statistical quality control technique used in
deciding to accept or reject a shipment of input
or output.
Acceptance sampling inspection can range from
100% of the Lot to a relatively few items from
the Lot (N=2) from which the receiving firm
draws inferences about the whole shipment.

Acceptance Sampling
Purposes
Determine quality level
Ensure quality is within predetermined level
Advantages
Economy
Less handling damage
Fewer inspectors
Upgrading of the inspection job
Applicability to destructive testing
Entire lot rejection (motivation for improvement)
Acceptance Sampling
Disadvantages
Risks of accepting bad lots and rejecting
good lots
Added planning and documentation
Sample provides less information than 100-
percent inspection
Acceptance Sampling
Acceptance Sampling Fundamentals
Producers and Consumers Risk
Producers risk is the risk associated with
rejecting a lot of materials that has good
quality.
Consumers risk is the exact opposite. The risk
associated with accepting a lot of materials that
has bad quality.

Statistical Sampling Techniques
Acceptable Quality Level (AQL)
The maximum percentage or proportion of
nonconformities in a lot or batch that can be
considered satisfactory as a process average.
Lot Tolerance Percent Defective (LTPD)
The level of poor quality that is included in a
lot of goods.
Statistical Sampling Techniques
n and c
The bottom line in acceptance sampling is that
acceptance sampling plans are designed to give
us two things: n and c, where
n = the sample size of a particular sampling plan
c = the maximum number of defective pieces for a

sample to be rejected
Statistical Sampling Techniques
OC Curves
The operating characteristic (OC) curve
provides an assessment of the probabilities of
acceptance for a shipment, given the existing
quality of the shipment.


Statistical Sampling Techniques
Pa
P
1.00
.01 .02 .03 .04
Lot fraction nonconforming
P
r
o
b
a
b
i
l
i
t
y

o
f

a
c
c
e
p
t
a
n
c
e
optimal sampling plan
Statistical Sampling Techniques
OC curves for a sample size of n = 100 and c = [0, 1, 2, 3].

Statistical Sampling Techniques
Building an OC Curve
There are two ways to construct OC curves.
The first uses the binomial distribution and the
second, the Poisson distribution.
Estimating AQL and LTPD
OC curves can be used to estimate both AQLs
and LTPDs. The figure on the next slide
(Figure 9.8 in the text) shows an OC curve for a
single sampling plan with n = 50 and c = 1.



Statistical Sampling Techniques
OC Curve of Single Sampling Plan n = 50 and c = 1
Taguchi's Loss Function
Target
(t)
L
o
s
s

(
$
)

Customer's Tolerance Band
Loss
Lower
Spec Limit
Upper
Spec Limit
L
d
Any deviation from target causes a loss to society
Robust Design
System
Target
Control Factors, d
Noise Factors, n
Signal Factor, M
Response Factor
Y = f (M,d,n)
Robust Design
Robustness = insensitive to noise variables

Systematically change control variables
Observe noise levels for each change
Determine response factor for each run
Choose best settings