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# Operations

Management
Supplement 6 –
Statistical Process
Control
PowerPoint presentation to accompany
Heizer/Render
Principles of Operations Management, 7e
Operations Management, 9e
© 2008 Prentice 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
© 2008 Prentice Hall, Inc. S6 – 2
Natural Variations
 Also called common causes
 Affect virtually all production processes
 Expected amount of variation
 Output measures follow a probability
distribution
 For any distribution there is a measure
of central tendency and dispersion
 If the distribution of outputs falls within
acceptable limits, the process is said to
be “in control”
© 2008 Prentice Hall, Inc. S6 – 3
Assignable Variations
 Also called special causes of variation
 Generally this is some change in the process
 Variations that can be traced to a specific
reason
 The objective is to discover when
assignable causes are present
 Incorporate the good causes

## © 2008 Prentice Hall, Inc. S6 – 4

Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
Each of these
represents one
(a) Samples of the sample of five
product, say five boxes of cereal
boxes of cereal
taken off the filling
Frequency
# #

## machine line, vary # # #

from each other in # # # #
weight # # # # # # #

# # # # # # # # # #

## Figure S6.1 Weight

© 2008 Prentice Hall, Inc. S6 – 5
Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
The solid line
represents the
(b) After enough distribution
samples are
taken from a
stable process,
they form a Frequency
pattern called a
distribution

## Figure S6.1 Weight

© 2008 Prentice Hall, Inc. S6 – 6
Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
(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 Figure S6.1
Frequency

## Weight Weight Weight

© 2008 Prentice Hall, Inc. S6 – 7
Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
(d) If only natural
causes of
variation are Frequency
present, the Prediction
output of a
process forms a
distribution that Tim
e
is stable over Weight
time and is Figure S6.1
predictable
© 2008 Prentice Hall, Inc. S6 – 8
Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
?
?? ??
(e) If assignable ?
? ?
?
causes are ?
?
? ?
?
??
?
present, the Frequency
? ?

not stable over
time and is not
predicable Tim
e
Weight
Figure S6.1

## © 2008 Prentice Hall, Inc. S6 – 9

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

## © 2008 Prentice Hall, Inc. S6 – 10

Central Limit Theorem
Regardless of the distribution of the
population, the distribution of sample means
drawn from the population will tend to follow
a normal curve
1. The mean of the sampling
distribution (x) will be the same x=µ
as the population mean µ

## © 2008 Prentice Hall, Inc. S6 – 11

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
 These two charts must be used together

## © 2008 Prentice Hall, Inc. S6 – 12

Setting Chart Limits
For x-Charts when we know σ
Upper control limit (UCL) = x + zσ x

## where x = mean of the sample means

or a target value set for the process
z = number of normal standard
deviations
σ x = standard deviation of the
sample means
= σ / n
σ = population standard S6 – 13
Setting Control Limits
Hour 1 Hour Mean Hour Mean
Sample Weight of 1 16.1 7 15.2
Number Oat Flakes 2 16.8 8 16.4
1 17 3 15.5 9 16.3
2 13 4 16.5 10 14.8
3 16 5 16.5 11 14.2
4 18 6 16.4 12 17.3
n=9 5 17
6 16 For 99.73% control limits, z = 3
7 15
8 17 UCLx = x + zσ x = 16 + 3(1/3) = 17 ozs
9 16
Mean 16.1 LCLx = x - zσ x = 16 - 3(1/3) = 15 ozs
σ = 1
© 2008 Prentice Hall, Inc. S6 – 14
Setting Control Limits
Control Chart
for sample of Variation due
Out of to assignable
9 boxes control causes

17 = UCL

Variation due to
16 = Mean natural causes

15 = LCL

Variation due
| | | | | | | | | | | |
to assignable
1 2 3 4 5 6 7 8 9 10 11 12 Out of causes
Sample number control

## © 2008 Prentice Hall, Inc. S6 – 15

Setting Chart Limits
For x-Charts when we don’t know σ

## 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
© 2008 Prentice Hall, Inc. S6 – 16
R – Chart

##  Shows sample ranges over time

 Difference between smallest and
largest values in sample
 Monitors process variability
 Independent from process mean

## © 2008 Prentice Hall, Inc. S6 – 17

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

## © 2008 Prentice Hall, Inc. S6 – 18

Mean and Range Charts
(a)
These (Sampling mean is
sampling shifting upward but
distributions range is consistent)
result in the
charts below

UCL
(x-chart detects
x-chart shift in central
tendency)
LCL
UCL
(R-chart does not
R-chart detect change in
mean)
LCL
Figure S6.5
© 2008 Prentice Hall, Inc. S6 – 19
Mean and Range Charts
(b)
These
(Sampling mean
sampling
is constant but
distributions
dispersion is
result in the
increasing)
charts below

UCL
(x-chart does not
x-chart detect the increase
in dispersion)
LCL
UCL
(R-chart detects
R-chart increase in
dispersion)
LCL
Figure S6.5
© 2008 Prentice Hall, Inc. S6 – 20
Steps In Creating Control
Charts
1. Take samples from the population and
compute the appropriate sample statistic
2. Use the sample statistic to calculate control
limits and draw the control chart
3. Plot sample results on the control chart and
determine the state of the process (in or out of
control)
4. Investigate possible assignable causes and
take any indicated actions
5. Continue sampling from the process and reset
the control limits when necessary
© 2008 Prentice Hall, Inc. S6 – 21