# Statistical Process Control (SPC) Overview. SixSigmaTV.Net

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1 Statistical Process Control (SPC) Overview SixSigmaTV.Net

2 SPC - Agenda Statistical Process Control History Review fundamentals of Control Charts Understand the impact of variation within your process Construct and interpret Control Charts to monitor process performance SixSigmaTV.Net 2

3 Control Charts: A Brief History Dr. Shewhart of Bell Laboratories introduced Control Charts in He developed a theory of variation that states there are two components to variation: 1. Common cause - the collection of conditions inherent in any process 2. Special cause - identifiable causes or conditions directly responsible for process shifts Dr. Shewhart is credited with the development of the standard control chart based on 3 standard deviation limits to separate common cause variation from special cause variation. Control Charts became widely used by the US Military during World War II. Dr. Deming introduced Control Charts to the Japanese in the 1950s. They consider this their turning point to re-building Japan after the war and making them a formidable leader in the industrial world. SixSigmaTV.Net 3

4 Control Charting What is it? A technique for applying statistical analysis to measure, monitor and control processes When do I apply it to my process? To establish a baseline of performance. To determine if a process is stable and predictable. To determine if a shift has taken place. To avoid tampering. To identify impacts of process variation. To monitor and control critical Xs, Ys & implemented solutions. SixSigmaTV.Net 4

5 Control Charting What is it? A technique for applying statistical analysis to measure, monitor and control processes When do I apply it to my process? To establish a baseline of performance. To determine if a process is stable and predictable. To determine if a shift has taken place. To avoid tampering. To identify impacts of process variation. To monitor and control critical Xs, Ys & implemented solutions. SixSigmaTV.Net 5

6 Control Charts - Purpose Provide feedback on process performance Shows the natural variation of the process Provides process monitoring / feedback Measures the health of the process Identify when process performance changes Due to deterioration and neglect Due to the introduction of outside influences ( special causes) Allows timely action for process adjustments Note: Eliminating special cause variation can be one of the easiest ways to reduce variation and improve the process performance. SixSigmaTV.Net 6

7 Control Charts When to Use Define Phase To establish a baseline of current process performance (metrics) Analyze Phase After data collection & MSA, control charts are used to determine process variation (spread / standard deviation), location, normality and stability Control Phase To ensure improvements have positively impacted process variation, location and stability. Also, monitor sustained gains over long term SixSigmaTV.Net 7

8 Control Chart Terminology Control - operating within natural limits without undue impact from outside, extraneous, or special causes Control Limits - statistically calculated boundaries within which a process in control should operate. Identify the natural bounds of the process Based on the Voice of the Process Unrelated to customer specifications Control Chart - a sequential time plot tracking process performance SixSigmaTV.Net 8

9 Control Chart Terminology Common Cause Variation natural variation of a process Consistent, stable, random variability within the process Requires fundamental (systemic) improvement to reduce; usually more difficult to reduce Special Cause Variation variation that is not natural to a process due to an outside influence ( special cause ) that may temporarily or permanently alter the process performance unless identified and addressed. Identified by changes in process performance, outliers, or unusual patterns in the data Requires identifying process changes; usually easier to address and eliminate SixSigmaTV.Net 9

10 Control Chart - Illustration Time plot of sequential process measurements Normal or expected range of measures { Out-ofcontrol point SixSigmaTV.Net 10

11 Control Limits vs. Spec Limits Control Limits Defined based on process performance (+/- 3 estimated standard deviations from the mean). Help determine if your process is in control (without special cause variation). Plotted on control charts. Change when there is a verified, significant change to your process. Represent the voice of the process. Customer Spec Limits Defined based on feedback from the customer(s). Help determine if your process is producing defects. Plotted on histograms (not control charts). Change when your customers say they do! Represent the voice of the customer. Determine product functional requirements SixSigmaTV.Net 11

12 Control Charts Data Types Variable/Continuous ( Measurable ) Processing Cycle Time ( days, weeks, months ) Customer Wait Time ( seconds, minutes, hours ) Can you think of other variable data types in your organization? Attribute / Discrete ( Defects ) Number of Errors on Patient Records ( missing or incorrect information ) Can you think of other attribute data types in your organization? SixSigmaTV.Net 12

13 Sample Range Sample Mean Control Chart: Illustration Xbar-R Chart of Distance Common Cause Variation UC L=408.5 _ X= Sample LC L= Subgroup Variation UC L=457.4 _ R= LC L= Sample SixSigmaTV.Net 13

14 The Family of Control Charts Continuous/Variable data X-bar/R charts for sample averages ImR charts for individual items X-bar/S charts for large samples using standard deviation Always measurable with a tool Attribute/Discrete Examples: stopwatch, caliper, scale p-chart for percent or proportions of defective items np-chart for number of defective items u-chart for defects per unit c-chart for number of defects Operational definitions are always required Examples: good/bad, pass/fail, correct/incorrect SixSigmaTV.Net 14

15 Continuous Data Discrete Data Control Chart Roadmap Guidelines for Determining Control Chart Usage Type Appropriate Data Examples of Use c-chart c = counts of relatively infrequent events. To chart defects with constant subgroup size. Number of miss applied payments. Number of lost checks. u-chart p-chart np-chart I-Chart I-MR Chart X bar and Range Charts u = counts of relatively infrequent events. To chart defects per unit with constant or variable subgroup size. p-chart: To chart proportion or percent defective with subgroup size constant or variable. np-chart: To chart number of defective units with constant subgroup size. (Note: A defective may contain many defects.) Measurable data collected on individual items (i.e. the subgroup size is one at any one time). Individual charts are some of the easiest to create, and can be used in a wide variety of situations but require larger shifts to highlight or detect a change. Based on the standard normal distribution. X-Bar: displays the subgroup average. Based on standard normal distribution. R: range (variation) within & between the subgroups. X-Bar and R Charts should be used in conjunction to determine whether a process is in control. Number of miss applied payments per FC. Number of fields missing info. on loan app. p-chart: percent defective, percent of mis-routed mail items from FC (sample sizes may vary), percent of late loan payments. np-chart: Number of defective applications per batch (sample sizes are constant). Cycle time for a process (the item may be a single loan). Amount of money used in the ATM per day. Loan interest rates per day. X-Bar: Average length of time customers wait to be served (multiple customers used). Cycle time for a process (in this case, a group of loans may be monitored and the average time and range tracked). SixSigmaTV.Net 15

16 Discrete/Attribute Chart Decision Tree Count or Classification (Discrete/Attribute Data) Defects Defective Units Fixed sample sizes Variable sample sizes Fixed sample sizes Variable sample sizes C Chart defect count U Chart, defects/ unit NP Chart, # defective P Chart, % or proportion SixSigmaTV.Net 16

17 Continuous/Variable Chart Decision Tree Measurement (Continuous/Variable Data) Subgroup Size of 1 Subgroup Size 2-10 Subgroup Size > 10 I-Chart / I-MR X-bar & R X-bar & S SixSigmaTV.Net 17

18 P-Chart Used whenever monitoring proportion or percent defective Some uses of the p-chart in transactional applications are: Account errors Defective patient records Proportion of statements with errors Missing items SixSigmaTV.Net 18

19 P-Chart: Exercise A Registrar processes patient records and sends them over to Pre-Op. Construct a p-chart and see what percent of records are defective. Day Records Bad Day Records Bad As the Patient Registrar Manager, what are your next steps? SixSigmaTV.Net 19

20 P - bad P-Chart for Errors SixSigmaTV.Net 20

21 U-Chart Used whenever monitoring number of defects per unit. Some uses of the U-Chart in transactional applications are: Number of account errors per customer or batch. Number of defects on each application processed. Number of errors on each patient record processed. SixSigmaTV.Net 21

22 U-Chart: Exercise Now that you now the percent of defective patient records being received from your Registrar, how many defects per record are we getting? Day Records Defects Day Records Defects As the Pre-Op Manager, what are your next steps? SixSigmaTV.Net 22

23 U - defects U-Chart: Exercise SixSigmaTV.Net 23

24 Mov ing Range Indiv idual Value I-MR Chart (Individual and Moving Range) I-MR chart is appropriate for continuous data and focuses on the variation between individual measures Subgroup I and MR Chart for Processing Time 1 UCL=16.25 Mean=10.04 LCL=3.831 UCL=7.627 R=2.334 LCL=0 Usage when: There is no basis for subgrouping. Each measurement represents one batch. Production rate is slow such that measurements are easy to gather or widely spaced in time. SixSigmaTV.Net 24

25 ImR-Chart: Exercise Now that you now how many defects per record you are getting, how much time is your team spending per week reworking the mistakes? Day Records RW Time (hours) Day Records RW Time (hours) As the Pre-Op Manager, what are your next steps? SixSigmaTV.Net 25

26 MR: RW Time Individuals: RW Time ImR-Chart: Exercise RW Time Mean CL: SixSigmaTV.Net 26

27 Sample Range Sample Mean Xbar-R Chart Xbar-R chart is appropriate for continuous data when it is practical to collect frequent samples of subgroups Subgroup Xbar/R Chart for Processing Time Most sensitive (powerful) chart for tracking changes in the mean. UCL=13.08 Mean=10.09 LCL=7.108 UCL=9.351 R=4.099 LCL=0 R chart: Shows changes in the "within" subgroup variation. Asks "Is the variation in the measurements within subgroups stable?" X-bar chart: Shows changes in the average value of the process. Asks "Is the variation between the averages of the subgroups more than that predicted by the variation within the subgroups?" SixSigmaTV.Net 27

28 Contact Us SixSigmaTV.Net (Master Black Belt) (Master Black Belt) SixSigmaTV.Net 28

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