Operations Management

Statistical Process
Control

Abhishek Mathur (002)

Amratesh Pandey (007)
Ranodip Saha (047)
Roma Juneja (052)
Sahil Sandooja (053)

Group A3
Contents

 Introduction / Abstract
 Statistical Process Control Application and Usage
 Understanding and Measuring Process Variation
 Process Capability & its significance
 SPC Procedures
 P-charts
 N-charts
 Process control using X bar & R charts
 Sampling
 An illustration –SPC
 Conclusion
Abstract

The study discussed the execution of SPC tools and techniques in manufacturing
organizations. Execution of SPC, degree of use of various SPC tools, benefits, challenges
experienced amid usage and the utilization of SPC to screen and control process. Many
Organizations value that SPC is useful as a general quality improvement tool and that it is an
activity to accomplish quality administration framework. Numerous organizations are at
different phases of actualizing SPC with an end goal to coordinate their rivals through
utilization of these quality tools. Most popular tools used are check sheets and flow charts.
Although utilization of the SPC was extremely low because of monetary difficulties the
economy is experiencing, and some serious stimulation is required to put the manufacturing
on an awareness drive to adopt SPC initiatives for them to compete well in regional and
global markets. On the off chance that an association works in a third world economy and
requirements to contend on a worldwide scale, grasping SPC is a need. At the point when
SPC is used appropriately, it empowers maker to avert issues, control their creation forms,
and eventually increment benefits and consumer loyalty

Introduction
In 1924 Walter Shewhart built up a basic graphical strategy for plotting gathered
information with foreordained control limits. This was the first of a developing scope of SPC
outlines, dispatched by Bell Laboratories to improve the nature of phones produced.
Understanding the reasons for variety inside a modern procedure demonstrated irreplaceable
to recognize activities to improve procedure and yield. In the 1950's, with the specific
utilization of SPC, Deming changed over post war Japan into the world head of assembling
greatness. This methodology is progressively being connected in administration industry by
considering frameworks forms. Just as giving a premise to quality improvement, SPC Charts
additionally offer elective strategies for showing information. (source: Nicola Mezzetti, Ph.D.
Statistical Process Control)

Statistical Process Control (SPC) is an industry standard approach for estimating and
controlling quality amid the assembling procedure. Quality information (estimations) is
gathered from items as they are being created. By setting up upper and lower limits, varieties
in the procedures are observed before they result in an inadequate item.

SPC empowers procedures to

i. Reduce the measure of material piece alongside immediate and aberrant work wastages

ii. Eliminating the requirement for definite review

iii. Increasing productivity

Excessive variability in process performance often results in waste and rework. For
improvement in quality and productivity process variation needs to be reduced. For this
Statistical Process Control techniques are used. SPC uses statistics to detect variations in the
process so that it can be controlled. Control charts are used in SPC for measuring the
variation in the process and that can be continuously improved by the different techniques
used in the SPC such as 7 QC tools. This paper shows applicability of the statistical process
control techniques in different manufacturing industries.

A typical control chart has control limits set at values such that if the process is in control,
nearly all points will lie within the upper control limit (UCL) and the lower control limit
(LCL). On the other hand, if one or more points fall beyond control limits, the process is said
to be out of control and needs corrective actions.

SPC covers the quantitative aspects of quality management. Managing quality performance
using SPC usually involves periodic sampling of a process and analysis for deriving
performance. Variations that is caused by factors that can be clearly identified and possibly
even managed is called assignable variation whereas variation that is inherent in the process
itself is called common or random variation.

While the underlying cost of statistical procedure control can be considerable the extent and
quality of information and knowledge from the data using this tool makes turns out to be an
effective action on numerous occasions. This technique requires a lot of coordination and
whenever done effectively can extraordinarily improve a procedures capacity to be controlled
and broke down amid procedure improvement ventures.

Statistical Process Control Application and Usage

Knowing that we have the ability to act before we encounter difficulties gives us a feeling of
security. In a production process, this secure feeling is accompanied by cost savings,
customer satisfaction and the ability to face official inspections calmly.

Statistical Process Control (SPC) has been around for a long time. But only in the last several
years have many modern companies have begun working with it more actively – not least
because of the propagation of comprehensive quality systems, such as ISO, QS9000, Six
Sigma and MSA (Measurement System Analysis).

SPC is far more than a control chart or a mere capability index. It is a system that uses
process data to describe a prototypical manufacturing process in connection with its
environment. The goal of the method is to intervene in the process before tolerance violators
occur, and thereby optimize the entire process. The method uses a variety of elements,
Control limits, Cumulative Sum, specification limits, cp and cpk are the elements available
that allow us to have even better control over the processes being monitored, to document
them, and, if needed, to intervene even faster.

Manufacturing companies today are facing ever increasing competition. At the same time raw
material costs continue to increase. These are factors that companies, for the most part,
cannot control. Therefore, companies must concentrate on what they can control: their
processes. Companies must strive for continuous improvement in quality, efficiency and cost
reduction. Many companies still rely only on inspection after production to detect quality
issues. The SPC process is implemented to move a company from detection based to
prevention-based quality controls. By monitoring the performance of a process in real time
the operator can detect trends or changes in the process before they result in non-conforming
product and scrap.

Before implementing SPC or any new quality system, the manufacturing process should be
evaluated to determine the main areas of waste. Some examples of manufacturing process
waste are rework, scrap and excessive inspection time. It would be most beneficial to apply
the SPC tools to these areas first. During SPC, not all dimensions are monitored due to the
expense, time and production delays that would incur. (https://quality-one.com/spc/)

By addressing any special causes, trends or shifts in the process we can assure we are
producing parts that meet the customer’s requirements. Remember the control limits should
always fall between the spec limits determined by the engineer and / or the customer.

The data points recorded on a control chart should fall between the control limits, provided
that only common causes and no special causes have been identified. Common causes will
fall between the control limits whereas special causes are generally outliers or are outside of
the control limits. For a process to be deemed in statistical control there should be no special
causes in any of the charts. A process in control will have no special causes identified in it
and the data should fall between the control limits.

Understanding and Measuring Process Variation

The notion prevalent today is that as we reduce variation, quality can be improved.
Sometimes this notion is intuitive. Suppose, if clothing sizes were consistent all over the
world, or maybe in a certain geography, time and cost could have been saved by ordering
from the catalogue, without trying each and every cloth. But whenever you are designing any
mechanical device, for e.g. a water pump, then every mechanical and electrical component
needs to be in the desired variation, otherwise the quality will be unacceptable, resulting in
dissatisfied customers.

However, we also know that it is impossible to have zero variability. For this particular
reason, designers or engineers not only define the target value of something, but also define
or set the acceptable limits within which a given sample can be accepted. For example, if the
target value of a sample is 100 mm, then the design specifications can be 100 mm +/- 2mm.
In this way, the design team can aim within 98-102 mm, and anything between these
specifications will be acceptable. These design limits are often called as upper and lower
specification limits. In a traditional way, we can say that any sample falling in between the
specification limit is good, whereas any sample falling outside is bad.
Genichi Taguchi, a noted quality expert from Japan, pointed out two flaws in the traditional
system: -

1) If we look from the customer’s point of view, there is often no difference between
a product just inside specifications and a product just outside. In fact, there is far
greater difference between the quality of the product which is at the target and the
quality of the product near a limit.
2) As customers get demanding, there is pressure to reduce variability.
As per Taguchi, cost is represented by the above displayed Taguchi’s curve. With this
approach, the specification range is more important than the target value.

Process Capability & its significance

Manufacturing processes must meet or be able to meet the product specifications. Also,
product specifications must be based on the customer requirements.

Process Capability is the repeatability and consistency of a manufacturing process relative to

the customer requirements in terms of specification limits of a product parameter. This
measure is majorly used to measure whether the process is or is not meeting the requirements.

Capability indices have been developed to portray that measure. These indices help us to
place the distribution of process in with respect to the product specification limits. Capability
indices can be used to compare the product and processes and identify the product or process
with the lowest capability. The purpose of process capability study is to determine the limits
within which a process operates and thereby reduce its variability.

The process capability index, Cp relates the natural variation of the process with the design
specifications in a single, quantitative measure. Cp is defined as the ratio of the specification
width to the natural tolerance of the process.

If process is in statistical control, and the process mean is centered on the target, then Cp can
be calculated as

Cp = (USL-LSL)/6 sigma
If, Cp<1, means process variation exceeds specification, and a number of significant defects
are being made

Cp=1, process is meeting specifications, and minimum of 0.3% defects will be made

Cp>1, process variation is less than the specification, defects can be observed if process is not
centered on target value.

Cp is does not tell us how well the average is close to the target value and so Cp is often
referred as the process potential.

Cpk measures not only the process variation with respect to allowable specifications, it also
considers the location of the process average(X).
Cpk= min (Cpl,Cpu)
Cpl = (X -LSL) / 3 sigma where X is the process mean
Cpu = (USL – X) / 3 sigma where X is the process mean

Process Capability Studies help us to see what the process is capable of doing under
controlled conditions. The studies tell us how capable the process is under ideal conditions.
The individual who is doing the capability study can minimize or eliminate the causes of
variation.

SPC Procedures
Process control mainly deals with monitoring quality while the product or service is being
produced. Statistical Process Control (SPC) mainly deals

Choosing the correct procedure or the correct chart for a given problem or situation is the first
step in every analysis. Control charts can be divided into two groups: -

a) Variable Data – Variable charts are based on variable data that can be measured on a
continuous scale. E.g. height, weight, temperature etc. Variable charts are easy to
understand and use. These include: -
1) Individual Charts (I-Chart) – It is also referred to as an individual, item, I or X-
chart. It plots the process results varying over time.
2) Average Charts (X-bar) – It plots the averages of the number of subgroups and
so is relatively easy. The chart reflects either changes over time or changes
associated with a categorical data variable. The chart shows how consistent and
predictable a process is at achieving the mean.
3) Range Chart (R Chart) – It can be combined with I and X-bar charts. It
measures the variation in the data.
b) Attribute Data – Attribute charts are based on the data that can be grouped or
counted as present or not. These can also be called as count charts and attribute data is
also known as discrete data. It can only be measured with whole numbers. These
include: -
 1) Count Chart (C-Chart) – It tells how the number of defects or nonconformities
is changing over time. It is for constant subgroup size
2) U Chart- It is same as C- chart except the fact that U chart is used for varying
subgroup size.
3) Np- Chart (Number of Rejects Chart) – It displays changes in the number of
defective products, rejects or unacceptable outcomes. It is an indicator of the
consistency and predictability of the level of defects in the process.
4) P- Chart (Percentage Chart) – It displays changes in the proportion of defective
products, rejects or unacceptable outcomes.
Of these attribute charts, I, X-bar and C count the defects data i.e. number of non-
conformities in the group whereas, C, U, np and p charts tell us the rejects data i.e. when the
item is judged to conform the product specifications or not. The count is limit to 0 or 1.

SPC and Control Charts:

As we are aware that SPC is a methodology which monitors the process to identify special
causes of variation and signals the need to take corrective action when required. In order to
achieve its objective SPC relies on control charts. When we analyse a process, we can figure
out some basic forms of variation. These are primarily Assignable and Random variations.
Assignable variations are the one which are caused by factors that can be clearly identified
and possible managed, whereas a Random variation is inherent in the production process.
Attributes or variables can be measured and compared to standards. Attributes are usually
classified usually into 2 categories:

 Defective (not meeting specifications)

 Non-Defective (meeting specifications)

Variables on the other hand are characteristics that can be measured on a continuous scale.

Application of Control Chart includes:

 To establish state of Statistical Control.

 To monitor a process and signal when it goes out of control.
 To determine process capability.

Commonly used Control Charts according to the data are as follows:

For Variable data:

 X-bar and R-charts.

 X-bar and s-charts.

For Attribute data:

 p-chart and np-chart (for defectives)

 c-chart and u-chart (for defects)
P-Chart:
This chart is used to analyse proportions of defective items. Each item on the chart has only 2
possibilities: pass or fail, so we can say that it is based on binomial distribution. An item
could be anything including: gadgets from a production line. With respect to service industry
while using P- chart, we have tried to mention some services and the quality characteristics
associated with them.

 Banking-Number of processing errors.

 Higher Education-Number of complaints received by a librarian.
 Healthcare – Proportion of medical errors.
 Public utilities – Number of errors in water/gas meter readings.

Conditions for applying P-chart:

 We must know the number of items being counted. Unlimited or unknown quantities
can’t be used.
 The probability of failure must be consistent across all items in the sample.

Before charting the data, we need to establish norm for our system. Use data from a system
that is in control. Find the average probability along with the upper/lower control limits for
acceptable defects.

Uses of P-Chart:

 To detect sudden changes in systems, which can be attributed to a cause.

 Show whether the system is stable (i.e. control).
 Compare systems before and after a major change.

NP-chart:
This chart is very similar to the P-chart. The basic difference between these two charts is that
NP chart plots the number of items while the p-chart plots the proportions of items. It helps
achieve the following objectives:

 Keep track of whether a measurement process is within bounds or its ‘out of control’.
 It records the number of non-conforming units or we can say defective instances in
the process.

The data that gets recorded is very simple, binary data such as conforming v/s non-
conforming, pass/fail.

An example from Service process where NP-Chart is used is that of Transport (Airline
Industry) where the Quality characteristics is lost or damaged baggage.
Process control using X bar & R charts
An X bar chart is a plot of the means of the samples that were taken from a process. X bar is
the average of the means. Process mean can be monitored when calculating subgroups at
regular intervals from a process. Control limits have to be established for x bar charts and
then these limits are used to monitor the mean of the process going forward. When a point is
outside these established control limits, it signifies that the mean of the process is deviating
from the prescribed limits.

An R chart is a plot of the average of the range within each sample. The range is the
difference between the highest and lowest numbers in a sample. R values provide an easily
calculated measure of variation used. R bar is the average of the range of each sample.

Sampling
Acceptance sampling is a statistical quality control used to measure the quality of a batch of
products. The company cannot test each and every product and hence requires sampling to
decide whether to accept or reject the lot. First step is to design the control limits. Then
manufacturing or service process is set. Next, the quality of the lot manufactured or the
service level provided is evaluated against the control limits. The sampling process involves
batch size, sample size and the number of defects acceptable in the lot. A lot is accepted if the
number of defects is below the specified acceptable quality level. If the number of defects
goes above the acceptable quality level, the lot is rejected.

An Illustration –SPC
Hot shot Plastic Company produces plastic key chains. Plastic material is first moulded and
then trimmed to the required shape. The cooling time for plastic during the moulding process
affect the edge quality of the key chains produced. The aim is to achieve statistical control of
the cooling time using X-bar and R charts.

Cooling time data for 25 samples, each of size four; have been taken when the process is
assumed to be in control. These are shown as follows:

Sample Mean (X
No. Obs 1 Obs 2 Obs 3 Obs 4 bar) Range (R)
1 27.34667 27.50085 29.94412 28.21249 28.25103 2.59745
2 27.79695 26.15006 31.21295 31.33272 29.12317 5.18266
3 33.53255 29.32971 29.7046 31.053 30.90497 4.20284
4 37.98409 32.26942 31.91741 29.44279 32.90343 8.5413
5 33.82722 30.32543 28.38117 33.70124 31.55877 5.44605
6 29.68356 29.56677 27.23077 34.00417 30.12132 6.7734
7 32.6264 26.3203 32.07892 36.17198 31.7994 9.85168
8 30.29575 30.52868 24.43315 26.85241 28.0275 6.09553
9 28.43856 30.48251 32.43083 30.76162 30.52838 3.99227
10 28.2779 33.94916 30.47406 28.87447 30.3939 5.67126
 11 26.91855 27.66133 31.46936 29.66928 28.92963 4.55081
12 28.46547 28.29937 28.99441 31.14511 29.22609 2.84574
13 32.42677 26.1041 29.47718 37.20079 31.30221 11.09669
14 28.84273 30.51801 32.23614 30.47104 30.51698 3.39341
15 30.75136 32.99922 28.08452 26.19981 29.50873 6.79941
16 31.25754 24.29473 35.46477 28.41126 29.85708 11.17004
17 31.24921 28.57954 35.00865 31.23591 31.51833 6.42911
18 31.41554 35.80049 33.60909 27.82131 32.16161 7.97918
19 32.2023 32.02005 32.71018 29.3762 31.57718 3.33398
20 26.91603 29.77775 33.92696 33.78366 31.1011 7.01093
21 35.05322 32.93284 31.51641 27.73615 31.80966 7.31707
22 32.12483 29.32853 30.99709 31.39641 30.96172 2.7963
23 30.09172 32.43938 27.84725 30.70726 30.2714 4.59213
24 30.04835 27.23709 22.01801 28.69624 26.99992 8.03034
25 29.30273 30.83735 30.82735 31.90733 30.71869 2.6046

As per given data,

Mean of X bars (called X double bar) = 30.40289
Mean of Range (called R bar) = 5.932155

In order to draw X-bar chart, first control limits need to be determined

As per factor table, Value of A2, D3 & D4 for n=4 are as follows

A2 = 0.73
D3 = 0
D4 = 2.28

Now,

Upper Control Limit (UCL) = (X double bar) + A2*(R bar)

= 30.40289 + (0.73*5.932155)
= 34.73337

Lower Control Limit (UCL) = (X double bar) - A2*(R bar)

= 30.40289 - (0.73*5.932155)
= 26.07240
 X Bar
UCL
34.73337

Mean

LCL
26.0724
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Fig: X-bar chart for 25 samples of cooling time data, Hot shot plastic Co.

From the chart, It is evident that process is under control as points are either below UCL or
above LCL.

Now for R-bar chart, control limits can be determined in similar way

As per factor table, Value of A2, D3 & D4 for n=4 are as follows

A2 = 0.73
D3 = 0
D4 = 2.28

Upper and Lower control limits for range chart can be calculated as follows:

Upper control limit (UCL) = D4 * (R-bar)

= 2.28 * (5.932155)
= 13.52531

Lower control limit (LCL) = D3 * (R-bar)

= 0 * (5.932155)
=0

UCL

R-bar

LCL

Fig: R chart for 25 samples of cooling time data, Hot shot plastic Co.
From the chart, it is evident that process is under control as points are either below UCL or
above LCL.

Conclusion
Above study signifies that SPC is concerned not only with control charting of processes but
has application beyond. Furthermore, key factors needed for SPC are managerial skills,
engineering skills, statistical skills &teamwork. With advent of technology and complexity in
modern industrial practises, there is a need to go beyond teaching only control charting of
processes, to a more embracing curriculum regarding SPC.

The study discussed the execution of SPC tools and techniques in manufacturing
organizations. Information accumulation, examining systems to distinguish the significant
intentions of execution of SPC, degree of use of various SPC tools, benefits, challenges
experienced amid usage and the utilization of SPC to screen and control process just as items
shrouded in detail. Many Organizations value that SPC is useful as a general quality
improvement exertion and that it is an activity to accomplish quality administration
framework. Numerous organizations are at different phases of actualizing SPC with an end
goal to coordinate their rivals through utilization of these quality tools. Most popular tools
used are check sheets and flow charts. Although utilization of the SPC was extremely low
because of monetary difficulties the economy is experiencing, and some serious stimulation
is required to put the manufacturing on an awareness drive to adopt SPC initiatives for them
to compete well in regional and global markets. On the off chance that an association works
in a third world economy and requirements to contend on a worldwide scale, grasping SPC is
a need. At the point when SPC is used appropriately, it empowers maker to avert issues,
control their creation forms, and eventually increment benefits and consumer loyalty

It may be presumed that to get by in the focused market, organizations need to deliver the
quality items. Also, quality can be accomplished by utilizing the SPC tools and techniques.
SPC procedures can result in overall improvement to the quality. These instruments and
procedures are easy to execute and it needs the best administration inclusion and
representative help. The SPC information is critical to the usage and alignment is required.
SPC instruments can be connected to various items to decrease defects. Consequently, the
SPC strategies are utilized to improve quality performance. Although SPC seems to be a
collection of statistically based problem-solving tools, there is more to the successful use of
SPC than learning and using these tools. SPC is most effective when it is integrated into an
overall, companywide quality improvement program.
References
-[1] Managing Service Quality: An International Journal
- [2] Emerald www.emeraldinsight.com
- [3] TIR1406040 Journal of Emerging Technologies and Innovative Research (JETIR)
www.jetir.org 583
- [4] Implementation of Statistical Process Control Techniques in Industry: A Review
Application of Statistical Process Control (SPC) in Manufacturing Industry in a Developing
Country (Ignatio Madanhirea, Charles Mbohwab)
- [5] (source: Nicola Mezzetti, Ph.D. Statistical Process Control)
- [6] (https://quality-one.com/spc/)
- [7] Operations and Supply chain Management (Richard B Chase, Ravi Shankar, F Robert
Jacobs)
- [8] http://www.statit.com/services/SPCOverview_mfg.pdf

- [9] http://www.npd-solutions.com/proccap.html