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ASSIGNMENT NO . 7.

** CONTROL CHART **
A. What Is Control Chart?
B. Basic Block Diagram of Control Chart.
C. Ty!s of Control Chart.
D. Cas! "t#$y.
%. Alication An$ Common &s!s

- ABHISHEK TIWARI

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ASSIGNMENT NO. 7.
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A. What is Control Chart?
* D!finitions of Control Chart '
A control chart is a grah or chart (ith limit lin!s) call!$ control lin!s. Th!r! ar! *asically thr!! kin$s of control
lin!s'
th! #!r control limit +&CL,)
th! c!ntral lin! +act#al nominal si-! of ro$#ct,)
th! lo(!r control limit +LCL,.
Th! control chart is a grah #s!$ to st#$y ho( a roc!ss chang!s o.!r tim!. Data ar! lott!$ in tim! or$!r
* Intro$#ction to Control Chart '
Th! control chart (as in.!nt!$ *y Walt!r A. "h!(hart (hil! (orking for B!ll La*s in th! /012s. Th! comany3s
!ngin!!rs ha$ *!!n s!!king to imro.! th! r!lia*ility of th!ir t!l!hony transmission syst!ms. B!ca#s! amlifi!rs
an$ oth!r !4#im!nt ha$ to *! *#ri!$ #n$!rgro#n$) th!r! (as a *#sin!ss n!!$ to r!$#c! th! fr!4#!ncy of fail#r!s an$
r!airs. By /012 th!y ha$ alr!a$y r!ali-!$ th! imortanc! of r!$#cing .ariation in a man#fact#ring roc!ss.
5or!o.!r) th!y ha$ r!ali-!$ that contin#al roc!ss6a$7#stm!nt in r!action to non6conformanc! act#ally incr!as!$
.ariation an$ $!gra$!$ 4#ality. "h!(hart fram!$ th! ro*l!m in t!rms of Common6 an$ s!cial6ca#s!s of .ariation
an$) on 5ay /8) /019) (rot! an int!rnal m!mo intro$#cing th! control chart as a tool for $isting#ishing *!t(!!n th!
t(o. Dr. "h!(hart3s *oss) :!org! %$(ar$s) r!call!$' ;Dr. "h!(hart r!ar!$ a littl! m!moran$#m only a*o#t a ag!
in l!ngth. A*o#t a thir$ of that ag! (as gi.!n o.!r to a siml! $iagram (hich (! (o#l$ all r!cogni-! to$ay as a
sch!matic control chart. That $iagram) an$ th! short t!<t (hich r!c!$!$ an$ follo(!$ it) s!t forth all of th! !ss!ntial
rincil!s an$ consi$!rations (hich ar! in.ol.!$ in (hat (! kno( to$ay as roc!ss 4#ality control.;
=/>
"h!(hart
str!ss!$ that *ringing a ro$#ction roc!ss into a stat! of statistical control) (h!r! th!r! is only common6ca#s!
.ariation) an$ k!!ing it in control) is n!c!ssary to r!$ict f#t#r! o#t#t an$ to manag! a roc!ss !conomically.
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B. Basic Diagram Of Control Chart :
* N!!$ of Control Chart ?
Control charts ar! #s!f#l for analy-ing an$ controlling r!!titi.! roc!ss!s *!ca#s! th!y h!l to $!t!rmin! (h!n
corr!cti.! actions ar! n!!$!$. B!ca#s! th!y $islay r#nning r!cor$s of !rformanc!) control charts ro.i$!
n#m!ro#s ty!s of information to manag!m!nt.
This control chart ro.i$!s a .is#al ict#r! of th! int!rnal control o.!r th! ayroll roc!ss for 12 s#cc!ssi.! ay
!rio$s.Control charts may also *! #s!f#l in h!ling a firm imro.! its financial osition.
To !.al#at! th! c#stom!r *illing roc!ss) *oth control charts m#st *! consi$!r!$. Th! first control chart is #s!$ to
!.al#at! chang!s in .ariation in th! *illing roc!ss from saml! to saml!. To !.al#at! th! !rformanc! of th! firm3s
!rsonn!l) !ach r!ar!r3s o#t#t can *! grah!$ on a s!arat! control chart. Organi-ations can #s! control charts to
manag! costs an$ !<!ns!s.A comany can tak! saml!s of tra.!l an$ !nt!rtainm!nt !<!ns! .o#ch!rs on a monthly
*asis.
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C. T!"s of control charts :
Th! ty!s of charts ar! oft!n classifi!$ accor$ing to th! ty! of 4#ality charact!ristic that th!y ar! s#os!$ to
monitor' th!r! ar! 4#ality control charts for variables an$ control charts for attributes. "!cifically) th! follo(ing
charts ar! commonly constr#ct!$ for controlling .aria*l!s'
#$% &'(ar chart: In this chart th! saml! means ar! lott!$ in or$!r to control th! m!an .al#! of a .aria*l! +!.g.)
si-! of iston rings) str!ngth of mat!rials) !tc.,.
#)% * chart: In this chart) th! saml! ranges ar! lott!$ in or$!r to control th! .aria*ility of a .aria*l!.
#+% S chart: In this chart) th! saml! standard deviations ar! lott!$ in or$!r to control th! .aria*ility of a .aria*l!.
#,% S--) chart: In this chart) th! saml! variances ar! lott!$ in or$!r to control th! .aria*ility of a .aria*l!.
?or controlling 4#ality charact!ristics that r!r!s!nt attributes of th! ro$#ct) th! follo(ing
chart ar! commonly constr#ct!$.
#$% C chart:
In this chart +s!! !<aml! *!lo(,) (! lot th! number of defectives +!r *atch) !r $ay) !r machin!) !r /22 f!!t of
i!) !tc.,. This chart ass#m!s that $!f!cts of th! 4#ality attri*#t! ar! rare) an$ th! control limits in this chart ar!
com#t!$ *as!$ on th! Poisson $istri*#tion +$istri*#tion of rar! !.!nts,.
#)% N! chart:
In this chart) (! lot th! n#m*!r of $!f!cti.!s +!r *atch) !r $ay) !r machin!, as in th! C chart. Ho(!.!r) th!
control limits in this chart ar! not *as!$ on th! $istri*#tion of rar! !.!nts) *#t rath!r on th! *inomial $istri*#tion.
Th!r!for!) this chart sho#l$ *! #s!$ if th! occ#rr!nc! of $!f!cti.!s is not rar! +!.g.) th!y occ#r in mor! than @A of
th! #nits ins!ct!$,. ?or !<aml!) (! may #s! this chart to control th! n#m*!r of #nits ro$#c!$ (ith minor fla(s.
#+% . chart:
In this chart (! lot th! rate of defectives) that is) th! n#m*!r of $!f!cti.!s $i.i$!$ *y th! n#m*!r of #nits ins!ct!$
+th! nB !.g.) f!!t of i!) n#m*!r of *atch!s,. &nlik! th! C chart) this chart $o!s not r!4#ir! a constant n#m*!r of
#nits) an$ it can *! #s!$) for !<aml!) (h!n th! *atch!s +saml!s, ar! of $iff!r!nt si-!s.
#,% / chart:
In this chart) (! lot th! !rc!nt of $!f!cti.!s +!r *atch) !r $ay) !r machin!) !tc., as in th! & chart. Ho(!.!r) th!
control limits in this chart ar! not *as!$ on th! $istri*#tion of rar! !.!nts *#t rath!r on th! *inomial $istri*#tion +of
roortions,. Th!r!for!) this chart is most alica*l! to sit#ations (h!r! th! occ#rr!nc! of $!f!cti.!s is not rar!
+!.g.) (! !<!ct th! !rc!nt of $!f!cti.!s to *! mor! than @A of th! total n#m*!r of #nits ro$#c!$,.
* Example
C
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D. Cas" St01 :
* Wh!n to &s! a Control Chart '
Wh!n controlling ongoing roc!ss!s *y fin$ing an$ corr!cting ro*l!ms as th!y occ#r.
Wh!n r!$icting th! !<!ct!$ rang! of o#tcom!s from a roc!ss.
Wh!n $!t!rmining (h!th!r a roc!ss is sta*l! +in statistical control,.
Wh!n analy-ing att!rns of roc!ss .ariation from s!cial ca#s!s +non6ro#tin! !.!nts, or common ca#s!s
+*#ilt into th! roc!ss,.
Wh!n $!t!rmining (h!th!r yo#r 4#ality imro.!m!nt ro7!ct sho#l$ aim to r!.!nt s!cific ro*l!ms or to
mak! f#n$am!ntal chang!s to th! roc!ss.
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* Control Chart Basic Droc!$#r! '
/. Choos! th! aroriat! control chart for yo#r $ata.
1. D!t!rmin! th! aroriat! tim! !rio$ for coll!cting an$ lotting $ata.
E. Coll!ct $ata) constr#ct yo#r chart an$ analy-! th! $ata.
9. Look for Fo#t6of6control signalsG on th! control chart. Wh!n on! is i$!ntifi!$) mark it on th! chart an$
in.!stigat! th! ca#s!. Doc#m!nt ho( yo# in.!stigat!$) (hat yo# l!arn!$) th! ca#s! an$ ho( it (as corr!ct!$.
* O#t6of6control signals '
o A singl! oint o#tsi$! th! control limits. In ?ig#r! /) oint si<t!!n is a*o.! th! &CL +#!r control
limit,.
o T(o o#t of thr!! s#cc!ssi.! oints ar! on th! sam! si$! of th! c!nt!rlin! an$ farth!r than 1 from
it. In ?ig#r! /) oint 9 s!n$s that signal.
o ?o#r o#t of fi.! s#cc!ssi.! oints ar! on th! sam! si$! of th! c!nt!rlin! an$ farth!r than / from
it. In ?ig#r! /) oint // s!n$s that signal.
o A r#n of !ight in a ro( ar! on th! sam! si$! of th! c!nt!rlin!. Or /2 o#t of //) /1 o#t of /9 or /8
o#t of 12. In ?ig#r! /) oint 1/ is !ighth in a ro( a*o.! th! c!nt!rlin!.
o O*.io#s consist!nt or !rsist!nt att!rns that s#gg!st som!thing #n#s#al a*o#t yo#r $ata an$ yo#r
roc!ss.
Control Chart: O0t'of'Control Signals
@. Contin#! to lot $ata as th!y ar! g!n!rat!$. As !ach n!( $ata oint is lott!$) ch!ck for n!( o#t6of6control
signals.
8. Wh!n yo# start a n!( control chart) th! roc!ss may *! o#t of control. If so) th! control limits calc#lat!$
from th! first 12 oints ar! con$itional limits. Wh!n yo# ha.! at l!ast 12 s!4#!ntial oints from a !rio$
(h!n th! roc!ss is o!rating in control) r!calc#lat! control limits.
* Ho( control chart (ork?
Control charts ar! #s!f#l for analy-ing an$ controlling r!!titi.! roc!ss!s *!ca#s! th!y h!l to $!t!rmin! (h!n
corr!cti.! actions ar! n!!$!$. B!ca#s! th!y $islay r#nning r!cor$s of !rformanc!) control charts ro.i$!
n#m!ro#s ty!s of information to manag!m!nt. ?or !<aml!) control charts ar! #s!f#l for'
/. Din ointing !rratic or #nr!$icta*l! roc!ss!s.
1. O*taining (arning of im!n$ing tro#*l!) s#ch as an #n!<!ct!$ chang! in a roc!ss.
E. %.al#ating ro$#ct +s!r.ic!, consist!ncy o.!r tim!.
9. D!cr!asing !rformanc! .aria*ility in a roc!ss) th!r!*y $!cr!asing th! l!.!l of ost6roc!ss ins!ction of th!
o#t#t g!n!rat!$ *y th! roc!ss.
@. D!t!rmining th! ca#s! of tro#*l! (h!n a roc!ss is g!n!rating o#t#t (hich has !rrors an$ mistak!s.
* D!scrition '
Th! control chart is a grah #s!$ to st#$y ho( a roc!ss chang!s o.!r tim!. Data ar! lott!$ in tim! or$!r. A control
chart al(ays has a c!ntral lin! for th! a.!rag!) an #!r lin! for th! #!r control limit an$ a lo(!r lin! for th! lo(!r
control limit. Th!s! lin!s ar! $!t!rmin!$ from historical $ata. By comaring c#rr!nt $ata to th!s! lin!s) yo# can
$ra( concl#sions a*o#t (h!th!r th! roc!ss .ariation is consist!nt +in control, or is #nr!$icta*l! +o#t of control)
aff!ct!$ *y s!cial ca#s!s of .ariation,.
Control charts for .aria*l! $ata ar! #s!$ in airs. Th! to chart monitors th! a.!rag!) or th! c!nt!ring of th!
$istri*#tion of $ata from th! roc!ss. Th! *ottom chart monitors th! rang!) or th! (i$th of th! $istri*#tion. If yo#r
$ata (!r! shots in targ!t ractic!) th! a.!rag! is (h!r! th! shots ar! cl#st!ring) an$ th! rang! is ho( tightly th!y ar!
cl#st!r!$. Control charts for attri*#t! $ata ar! #s!$ singly.
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E. A!!lication :
Cas! /66 Int!rnal A#$iting.
A f#nction of int!rnal a#$iting is to $!t!rmin! th! !<t!nt to (hich comany olici!s an$ roc!$#r!s ar! *!ing
follo(!$. "inc! many of th! roc!$#r!s ar! r!!titi.!) int!rnal a#$itors can #s! control charts to monitor .ario#s
acco#nting roc!ss!s thro#gho#t th! y!ar. Droc!ss!s that can *! monitor!$ .ia control charts incl#$! ayroll
acco#nting) in.oic! aym!nts) an$ r!.!n#! coll!ction. Dayroll acco#nting is ill#strat!$ h!r!. '
Cas! 1 66 C#stom!r Billing.
Control charts may also *! #s!f#l in h!ling a firm imro.! its financial osition. ?or !<aml!) on! m!tho$ of
imro.ing cash osition is to s!!$ # coll!ctions from c#stom!rs. R!$#cing th! amo#nt of tim! *!t(!!n th! oint
that goo$s +s!r.ic!s, ar! ro.i$!$ an$ th! oint that c#stom!rs ar! *ill!$ is a k!y st! in s!!$ing # coll!ctions.
Cas! E66 Ta< R!t#rn Dr!aration.
Altho#gh th! r!c!$ing ill#strations ha.! foc#s!$ on acco#nting roc!$#r!s (ithin a comany) #*lic acco#ntants
can also #s! control chart t!chni4#!s for !.al#ating int!rnal controls of a#$it cli!nts or for !.al#ating th!ir firm3s
int!rnal *illing roc!ss. In a$$ition) #*lic acco#nting firms may also fin$ #ni4#! #s!s for control charts) s#ch as in
ta< r!t#rn r!aration. ?or !<aml!) if com#t!rs ar! #s!$ for r!aring ta< r!t#rns) th! acco#ntant tak!s
information ro.i$!$ *y th! ta<ay!r an$ transf!rs it to com#t!r in#t sh!!ts. Th! in#t sh!!ts may *! s!nt to a ta<
s!r.ic! (hich g!n!rat!s th! ta< r!t#rn) or th! r!t#rn may *! g!n!rat!$ in6ho#s!. Imro!r coml!tion of an in#t
form r!s#lts in an incorr!ct ta< r!t#rn) an$ th! roc!ss m#st *! r!!at!$. Th! !n$ r!s#lt is lo(!r rofits for th! firm.
Cas! 9 66 Tra.!l an$ %nt!rtainm!nt %<!ns!s.
Organi-ations can #s! control charts to manag! costs an$ !<!ns!s. %ff!cti.! monitoring of !<!ns!s incl#$!s
controls that !ns#r! that !<!ns!s ar! ro!rly a#thori-!$ an$ $oc#m!nt!$) an$ controls that monitor th! l!.!l of
!<!ns!s.
* &s!s Of Control Chart '
Control chart is a $!.ic! for $!scri*ing in a r!cis! mann!r (hat is m!ant *y statistical control. Its #s!s ar!
/. It is a ro.!n t!chni4#! for imro.ing ro$#cti.ity.
1. It is !ff!cti.! in $!f!ct r!.!ntion.
E. It r!.!nts #nn!c!ssary roc!ss a$7#stm!nts.
9. It ro.i$!s $iagnostic information.
@. It ro.i$!s information a*o#t roc!ss caa*ility.
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* Concl#sion'
Control chart control an action ori!nt!$ (ay of analy-ing c!r.ical sm!ar $ata. By highlighting ar!as of f#rth!r th!y
acts as a tool for hyoth!sis g!n!ration a*o#t th!ir ca#s!s of th! .ariation in this (ay $ir!ct as to(ar$s *! most
!ffici!nt action that (ill achi!.! 4#ality imro.!m!nt this st#$y has sho(n that control chart can *! #s! to analy-!
ro#ting c!r.ical $ata as a h!alth a#thority l!.!l.
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H I J K L