Operations Management

Supplement 6 Statistical Process Control

PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 6e Operations Management, 8e
2006 Prentice 2006 Prentice Hall, Inc. Hall, Inc. S6 1

Statistical Process Control (SPC)

Variability is inherent in every process
Natural or common causes
Special or assignable causes

Provides a statistical signal when assignable causes are present

Detect and eliminate assignable causes of variation
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Natural Variations
Natural variations in the production process

These are to be expected

Output measures follow a probability distribution

For any distribution there is a measure of central tendency and dispersion

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Assignable Variations
Variations that can be traced to a specific reason (machine wear, misadjusted equipment, fatigued or untrained workers) The objective is to discover when assignable causes are present and eliminate them

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Samples
To measure the process, we take samples and analyze the sample statistics following these steps
(a) Samples of the product, say five boxes of cereal taken off the filling machine line, vary from each other in weight
Figure S6.1
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Each of these represents one sample of five boxes of cereal

Frequency

# # # # # # # # # # # # # # # # # # # # # # # # # #

Weight
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Samples

Frequency

(b) After enough samples are taken from a stable process, they form a pattern called a distribution
Figure S6.1
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The solid line represents the distribution

Weight
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Samples
(c) There are many types of distributions, including the normal (bell-shaped) distribution, but distributions do differ in terms of central tendency (mean), standard deviation or variance, and shape
Frequency Central tendency Variation Shape

Weight

Weight

Weight
Figure S6.1

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Samples
(d) If only natural causes of variation are present, the output of a process forms a distribution that is stable over time and is predictable

Frequency

Prediction

Weight
Figure S6.1

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Samples

(e) If assignable causes are present, the process output is not stable over time and is not predicable

? ? ? ?? ? ? ? ? ? ? ? ? ? ?? ?? ?

Frequency

Prediction

Weight
Figure S6.1

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Control Charts
Constructed from historical data, the purpose of control charts is to help distinguish between natural variations and variations due to assignable causes

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Types of Data
Variables
Characteristics that can take any real value

Attributes
Defect-related characteristics

May be in whole or in fractional numbers Continuous random variables

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Classify products as either good or bad or count defects

Categorical or discrete random variables
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Control Charts for Variables

For variables that have continuous dimensions
Weight, speed, length, strength, etc.

x-charts are to control the central tendency of the process

R-charts are to control the dispersion of the process

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Setting Chart Limits

For x-Charts when we know s
Upper control limit (UCL) = x + zsx Lower control limit (LCL) = x - zsx
where x = mean of the sample means or a target value set for the process z = number of normal standard deviations sx = standard deviation of the sample means = s/ n s = population standard deviation n = sample size
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Setting Control Limits

Hour 1 Sample Weight of Number Oat Flakes 1 17 2 13 3 16 4 18 n=9 5 17 6 16 7 15 8 17 9 16 Mean 16.1 s= 1
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Hour 1 2 3 4 5 6

Mean 16.1 16.8 15.5 16.5 16.5 16.4

Hour 7 8 9 10 11 12

Mean 15.2 16.4 16.3 14.8 14.2 17.3

For 99.73% control limits, z = 3 UCLx = x + zsx = 16 + 3(1/3) = 17 ozs LCLx = x - zsx = 16 - 3(1/3) = 15 ozs
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Setting Control Limits

Control Chart for sample of 9 boxes 17 = UCL 16 = Mean 15 = LCL
| | | | | | | | | | | | 1 2 3 4 5 6 7 8 9 10 11 12

Out of control

Variation due to assignable causes

Variation due to natural causes

Sample number

Out of control

Variation due to assignable causes

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Setting Chart Limits

For x-Charts when we dont know s
Upper control limit (UCL) = x + A2R
Lower control limit (LCL) = x - A2R
where R = average range of the samples A2 = control chart factor found in Table S6.1 x = mean of the sample means

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Control Chart Factors

Sample Size n 2 3 4 5 6 7 8 9 10 12
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Mean Factor A2 1.880 1.023 .729 .577 .483 .419 .373 .337 .308 .266

Upper Range D4 3.268 2.574 2.282 2.115 2.004 1.924 1.864 1.816 1.777 1.716

Lower Range D3 0 0 0 0 0 0.076 0.136 0.184 0.223 0.284

Table S6.1
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Setting Control Limits

Process average x = 16.01 ounces Average range R = .25 Sample size n = 5

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Setting Control Limits

Process average x = 16.01 ounces Average range R = .25 Sample size n = 5

UCLx

= x + A2R = 16.01 + (.577)(.25) = 16.01 + .144 = 16.154 ounces From Table S6.1

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Setting Control Limits

Process average x = 16.01 ounces Average range R = .25 Sample size n = 5

UCLx

= x + A2R = 16.01 + (.577)(.25) = 16.01 + .144 = 16.154 ounces = x - A2R = 16.01 - .144 = 15.866 ounces

UCL = 16.154

Mean = 16.01

LCLx

LCL = 15.866

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R Chart
Type of variables control chart Shows sample ranges over time
Difference between smallest and largest values in sample

Monitors process variability Independent from process mean

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Setting Chart Limits

For R-Charts
Upper control limit (UCLR) = D4R Lower control limit (LCLR) = D3R
where
R = average range of the samples D3 and D4 = control chart factors from Table S6.1

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Setting Control Limits

Average range R = 5.3 pounds Sample size n = 5 From Table S6.1 D4 = 2.115, D3 = 0

UCLR = D4R = (2.115)(5.3) = 11.2 pounds

UCL = 11.2

Mean = 5.3

LCLR

= D3R = (0)(5.3) = 0 pounds

LCL = 0

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Mean and Range Charts

(a)
These sampling distributions result in the charts below
UCL

(Sampling mean is shifting upward but range is consistent)

x-chart
LCL UCL

(x-chart detects shift in central tendency)

R-chart
LCL Figure S6.5
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(R-chart does not detect change in mean)

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Mean and Range Charts

(b)
These sampling distributions result in the charts below
UCL

(Sampling mean is constant but dispersion is increasing)

x-chart
LCL UCL

(x-chart does not detect the increase in dispersion)

R-chart
LCL Figure S6.5
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(R-chart detects increase in dispersion)

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Automated Control Charts

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Control Charts for Attributes

For variables that are categorical
Good/bad, yes/no, acceptable/unacceptable

Measurement is typically counting defectives

Charts may measure

Percent defective (p-chart) Number of defects (c-chart)
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Control Limits for p-Charts

Population will be a binomial distribution, but applying the Central Limit Theorem allows us to assume a normal distribution for the sample statistics
^ UCLp = p + zsp ^ LCLp = p - zsp

sp =
^

p(1 - p) n

where

p z ^ sp n

= = = =

mean fraction defective in the sample number of standard deviations standard deviation of the sampling distribution sample size
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p-Chart for Data Entry

Sample Number Number of Errors Fraction Defective Sample Number Number of Errors Fraction Defective

1 2 3 4 5 6 7 8 9 10

6 5 0 1 4 2 5 3 3 2

.06 .05 .00 .01 .04 .02 .05 .03 .03 .02

11 6 12 1 13 8 14 7 15 5 16 4 17 11 18 3 19 0 20 4 Total = 80
^ sp =

.06 .01 .08 .07 .05 .04 .11 .03 .00 .04

80 p = (100)(20) = .04
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(.04)(1 - .04) = .02 100

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p-Chart for Data Entry

^ UCLp = p + zsp = .04 + 3(.02) = .10 ^ LCLp = p - zsp = .04 - 3(.02) = 0 .11 .10 .09 .08 .07 .06 .05 .04 .03 .02 .01 .00

Fraction defective

UCLp = 0.10

p = 0.04 LCLp = 0.00

2
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10

12

14

16

18

20
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Sample number

p-Chart for Data Entry

^ UCLp = p + zsp = .04 + 3(.02) = .10

Possible ^ LCLp = p - zsp = .04 - 3(.02) = 0 assignable causes present

UCLp = 0.10

.11 .10 .09 .08 .07 .06 .05 .04 .03 .02 .01 .00

Fraction defective

p = 0.04 LCLp = 0.00

2
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10

12

14

16

18

20
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Sample number

Control Limits for c-Charts

Population will be a Poisson distribution, but applying the Central Limit Theorem allows us to assume a normal distribution for the sample statistics

UCLc = c + 3 c
where

LCLc = c - 3 c

c = mean number defective in the sample

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c-Chart for Cab Company

c = 54 complaints/9 days = 6 complaints/day UCLc = c + 3 c =6+3 6 = 13.35 LCLc = c - 3 c =3-3 6 =0
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Number defective

14 12 10 8 6 4
| 1 2 | 3 | 4 | 5 | 6 | 7

UCLc = 13.35

c= 6
LCLc = 0
| 9

2 0 |

| 8

Day
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Patterns in Control Charts

Upper control limit

Target

Lower control limit Normal behavior. Process is in control.

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Figure S6.7

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Patterns in Control Charts

Upper control limit

Target

Lower control limit One plot out above (or below). Investigate for cause. Process is out of control.
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Figure S6.7

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Patterns in Control Charts

Upper control limit

Target

Lower control limit Trends in either direction, 5 plots. Investigate for cause of progressive change.
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Figure S6.7

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Patterns in Control Charts

Upper control limit

Target

Lower control limit Two plots very near lower (or upper) control. Investigate for cause.
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Figure S6.7

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Patterns in Control Charts

Upper control limit

Target

Lower control limit Run of 5 above (or below) central line. Investigate for cause.
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Figure S6.7

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Patterns in Control Charts

Upper control limit

Target

Lower control limit Erratic behavior. Investigate.

Figure S6.7
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Which Control Chart to Use

Variables Data
Using an x-chart and R-chart:
Observations are variables Collect 20 - 25 samples of n = 4, or n = 5, or more, each from a stable process and compute the mean for the x-chart and range for the R-chart Track samples of n observations each

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Which Control Chart to Use

Attribute Data
Using the p-chart:
Observations are attributes that can be categorized in two states We deal with fraction, proportion, or percent defectives Have several samples, each with many observations

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Which Control Chart to Use

Attribute Data
Using a c-Chart:
Observations are attributes whose defects per unit of output can be counted The number counted is often a small part of the possible occurrences Defects such as number of blemishes on a desk, number of typos in a page of text, flaws in a bolt of cloth
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