Module-7

Control Charts
 2

Control Charts – Learning Objectives

At the end of this section, delegates will:

• Understand how control charts can show if a
process is stable
• Generate and interpret control charts for variable
and attribute data
• Understand the role of control charts within the
DMAIC improvement process
 3

Control Charts – Agenda

1. Introduction to Statistical Process Control, SPC

2. Control Limits

3. Individual and Moving Range Chart

4. Workshop on Control Charts

5. Defective (Binomial) p-Chart

6. Defects (Poisson) u-Chart

7. Workshop on Attribute Control Charts

8. Uses of Control Charts

9. Summary
 4

What is Statistical Process Control?

• Statistical Process Control is a method of

monitoring and detecting changes in
processes.
• SPC uses an advanced form of Time Series
plots.
• SPC provides an easy method of deciding if
a process has changed (in other words, is
the process “in-control”?).
 5

We Need Ways of Interpreting Data

• Everyday we are flooded by data and we are
forced to make decisions:
• Calls handled decreases by 4%
• UK trade deficit rises by £5 billion
• Company X’s earnings are $240Million less
than the previous quarter

• Should we take action ?

 6

How do we manage data historically?

Pain & Leave it alone - Pain &
suffering it ain’t broke suffering

Lower “Customer” Upper “Customer”

Requirement Requirement

This Method
• Tells you where you are in relation to customer’s needs
• It will NOT tell you how you got there or what to do next
• Means that pressure to achieve customer requirements will cause you to:
• Actually Fix The Process
• Sabotage The Process
• Sabotage The Data (Integrity)
 7

What do Control Charts detect?

• Control Charts detect changes in a process.
• All processes change slightly, but process control
aims to detect ‘statistically significant’ changes that
are not just random variation.
• Processes can change in several different ways…
• the process average can change
• the process variation can change
• the process may contain one-off events
 8

Process Control

• Process control refers UCL

to the evaluation of
LCL
process stability over
0 5 10 15 20 25
time Time

• Process Capability LSL USL

refers to the
evaluation of how well
a process meets
specifications
 9

Why would a Process be Incapable?

There are a number of reasons why a
process may not be capable of meeting
specification:
1. The specification is incorrect!
2. Excessive variation
3. The process is not on target
4. A combination of the above
5. Errors are being made
6. The process is not stable
 10

The specification is incorrect

• This issue was discussed during the
Customer Focus section of this course
• If specifications are not clearly related to
customer requirements, then it is always a
good idea to challenge the specification
before attempting to improve the process
 11

Excessive variation
Lower Upper
Specification Specification
Target
Limit Limit

• Excessive variation means that we have a

variation reduction issue
• We will need to understand which process inputs
are causing the variation in the process output
 12

The process is not on target

Lower Upper
Specification Specification
Limit Target Limit

• In this situation we have a process targeting issue

• We will need to understand which process inputs
are causing the process to be off-target
• This situation is sometimes simple to solve!
 13

Excessive variation and not on target

Lower Upper
Specification Specification
Target
Limit Limit

• In this situation we have both excessive variation

and a process targeting issue
• We will need to understand which process inputs
are causing the excessive variation and which
are causing the process to be off-target
 14

Errors are being made

Lower Upper
Specification Specification
Limit Target Limit

• A situation such as this might indicate that errors are

being made which result in occasional excursions
outside of the specification
• This is often an indication of a mistake proofing issue
 15

The process is not stable

Lower Upper
Specification Specification
Limit Target Limit
Last week
This week
Next week?

• A situation such as this is an indication that the process

is unstable
• Whenever this situation is encountered in a DMAIC
activity, then the reason(s) for the instability must be
found and removed before assessing process capability
 16

The process is not stable

Lower Upper
Specification Specification
Target
Limit Limit
Last week
This week
Next
week?

• Causes of process instability are sometimes referred

to as “special causes”
• Removing these special causes may result in the
process becoming capable of consistently meeting the
target
 17

Unstable Process
Total
Variation
“Special”
causes of
variation are
present

e
m
Ti
Target
 18

Stable Process
Total
Variation
Only “Common”
causes of
variation are
present

e
m
Ti
Target
 19

Capable Process
Process is Stable and CAPABLE
Process is Capable

Management Action
(DMAIC) to reduce
common cause variation

e
m
Ti
NOT
CAPABLE Process is Stable but
Process is not Capable
Spec Limits
 20

Control Charts test for Stability

(Control Chart of Average)

1.3
Process Average

1.29
Upper Control Limit
1.28

1.27
Lower Control Limit
1.26
0 5 10 15 20 25

Time
 21

Transactional Improvement Process

Define Measure Analyse Improve Control

Select Project
Develop Detailed
Brainstorm Potential
Control Critical x ’s

Define Project

Define Measures (y ’s) Process Maps Improvement Strategies
10.2 Upper Control Limit
Objective START

Select Improvement
PROCESS Strategy 10.0

Form the Team STEPS
9.8 Lower Control Limit

Check Data Integrity
DECISION Criteria A B C D 9.6
1 5 10 15 20
Time + s - +
STOP
Cost + - + s
Monitor y’s
Service - + - +

Identify Critical Etc s s - +
Process Steps (x ’s)

Map the Process
Determine Process by looking for:

Plan and Implement y

Identify Customer Stability – Process Bottlenecks Pilot
Requirements
Determine Process – Rework / Repetition
Verify Improvement
Validate Control
Capability – Non-value Added Plan
Steps LSL USL
LSL USL
– Sources of Error /
Mistake

Map the Ideal 15 20 25 30 35
15 20 25 30 35 Process
Identify further

Identify Priorities
Implement opportunities

Identify gaps
Countermeasures
Close Project

Update Project File
Set Targets for between current and
Measures ideal

Phase Review Phase Review Phase Review Phase Review Phase Review
 22

Role of Control Charts

Measure Phase:
• used during capability studies to assess process stability
Improve Phase:
• used to establish if the modified, improved process is stable
Control Phase
• used to control critical process input variables (x’s) in order to
reduce variability in process outputs (y’s)
• used to monitor process outputs (y’s) on an ongoing basis to
ensure that the process remains in control
 23

Control Charts
Variable Attribute
Data Data

No Subgroups Subgroups Defect Data Defective Data

Subgroups n = 2-9 n>9 (Poisson) (Binomial)

Individuals & X Bar & R X Bar & s Varying Constant Varying Constant
Moving Range Chart Chart Subgroup Subgroup Subgroup Subgroup
Chart Size Size Size Size

u Chart c Chart p Chart np Chart

 24

What do Control Charts tell us?

1.3

1.29

X-bar
1.28

1.27

1.26
0 5 10 15 20 25
Subgroup

• Is the process stable?

• Should we be taking action?
• Are there any special causes?
• What is the average process output?
• What is the variability?
Control Limits
 26

Total Variation

Within Subgroup
Variation

Between Subgroup Total

Variation Variation
 27

Control Limits Use Within Subgroup

Variation

• The total variation and Within Subgroup variation are

the same only if the process is stable
• The Within Subgroup variation is an estimate of what
the total variation would be if the process were
stable
• The Within Subgroup variation is used to calculate
the control limits since these limits represent the
range of values expected for a stable process
 28

Controls Limits

• Controls limits are always:

Average ± 3 Standard Deviations
Where the average and standard deviation are the
average and standard deviation of whatever data
is plotted:

−4σ −3σ −2σ −1σ 0 +1σ +2σ +3σ +4σ

99.7%
 29

Control Limits
Upper Control Limit

Lower Control Limit

• Control Limits are statistical boundaries which tell us whether or

not the process is stable
• Based on the normal distribution, 99.7% of the points plot within
the control limits if the process is stable
• The chance of a point outside the control limits, falsely indicating
the process is unstable, is only 0.3% or 1 in 370
Individuals Control Chart
 31

Individuals Control Chart

• Used when only a single observation per time period
(subgroup):
 Monthly reporting data:
• On-time shipments, In-process Inventory, Complaints, etc.
 Rare events
 Sales
 Stock Price
 Inventory Levels
 Customer Response Time
 Lost Time Accidents
 Complaints
 Anything that can be measured and varies
 32

Within Subgroup Variation

• The best estimate is obtained by taking the differences between
consecutive samples i.e. the Moving Range (MR).
• We can use the the average MR, R, or the median MR, R˜
• When using R the Short Term standard deviation is estimated by:

R R
σ Within = =
d 2 1.128
˜ the standard deviation is estimated by:
• When using R
~ ~
R R
σWithin = =
d4 0.954
 33

Table of Constants for ImR charts

Sample size d2 d3 d4 D3 D4 D5 D6 E2 E5
2 1.128 0.853 0.954 0 3.267 0 3.865 2.660 3.145
3 1.693 0.888 1.588 0 2.574 0 2.744 1.772 1.889
4 2.059 0.880 1.978 0 2.282 0 2.376 1.457 1.517
5 2.326 0.864 2.257 0 2.114 0 2.179 1.290 1.329
6 2.534 0.848 2.472 0 2.004 0 2.054 1.184 1.214
7 2.704 0.833 2.645 0.076 1.924 0.055 1.967 1.109 1.134
8 2.847 0.820 2.791 0.136 1.864 0.119 1.901 1.054 1.075
9 2.970 0.808 2.915 0.184 1.816 0.168 1.850 1.010 1.029
10 3.078 0.797 3.024 0.223 1.777 0.209 1.809 0.975 0.992

We would generally calculate the differences between

consecutive samples, which corresponds to a “sample
size” of 2 in this table.
Minitab will calculate the control chart limits for us!
 34

Control Limits
The controls limits for the average, based on R are:

R R
X ± 3σWithin = X ± 3 = X ± 3 = X ± E2 R = X ± 2.66R
d2 1.128

The controls limits for the range, based on R are:

LCLRange = D3 R = 0 × R = 0
UCLRange = D4 R = 3.267R
 35

Control Limits
~
The controls limits for the average, based on R are:
~ ~
R R ~ ~
X ± 3σWithin = X ± 3 = X ± 3 = X ± E5R = X ± 3.145R
d4 0.953

~
The controls limits for the range, based on R are:
~ ~
LCLRange = D5R = 0 × R = 0
~ ~
UCLRange = D6R = 3.865R
 36

˜
¯ Versus R
R
• Some of the differences may be contaminated by
shifts in the mean (special Causes).
~
• R, the median MR, is more robust to this
contamination so is generally preferred.
• When many of the differences are zero, it might
be necessary to use R instead.
• A conversion factor can be developed:
~
R R
= σ within =
1.128 0.954
~ 1.128 ~
R = R× = R × 1.182
0.954
 37

Call Out Time

Sample Number Call Out Time
1 5.35
2 3.28
3 1.07
4 1.06
5 4.29
6 3.23
7 5.40
8 6.42
9 3.25
10 8.55
11 4.26
12 7.48
13 5.35
14 2.14
15 4.24
16 6.44
17 3.21
18 9.66
19 4.28
20 5.33
 38

Call Out Time

Sample Number Call out Time Difference Ordered
1 5.35
2.07 0.01
2 3.28
2.21 1.02
3 1.07
0.01 1.05
4 1.06
3.23 1.06
5 4.29
1.06 2.07
6 3.23
2.07 2.07
7 5.40
1.02 2.10
8 6.42
5.30 2.13
9 3.25
4.29 2.20
10 8.55
3.22 2.21
11 4.26
2.13 2.21
12 7.48
3.21 3.21
13 5.35
2.10 3.22
14 2.14
2.20 3.23
15 4.24
3.23 3.23
16 6.44
6.45 4.29
17 3.21
5.38 5.30
18 9.66
1.05 5.38
19 4.28
2.21 6.45
20 5.33

4.71 2.82
Average Average Difference Median
 39

Individuals chart - Minitab

Open Worksheet: Call Out Time
Stat>Control Charts>Variables Charts for Individuals>I-MR
Select Variable: Call Out Time
Click “I-MR” Options
Click “Estimate” – select “Median moving range”
Click “Tests” - select “1 point > 3 standard deviations from center line”
 40

˜
IMR Chart – Minitab (using R)
I-MR Chart of Call out Time
12 U C L=11.66
Individual Value

_
X=4.71
4

LC L=-2.24
2 4 6 8 10 12 14 16 18 20
O bser vation

U C L=8.538
8
M oving Range

4 ~
__ Median R = 2.21
M R=2.613 ~
2 R = R × 1.182 = 2.613

0 LC L=0
2 4 6 8 10 12 14 16 18 20
O bser vation
 41

Lognormal and other non –

normal data

• When dealing with lognormal and other non-normal data

we need to be cautious.
• X-bar and Range charts will be acceptable for most non-
normal data with a sub-group size of 5 or larger.
• I-MR charts may give false indications of instability.
 42

Workshop – Individuals Control Chart

Open Minitab worksheet: PAYMENT TIMES.MTW
Use Minitab to create:
• Individuals and Moving Range chart
• Use the Median with a moving range of 2
• Assess the stability of the process
• What would you want to do next?
• Prepare a short report of your findings
Attribute Control Charts
 44

Control Charts for Defective Items (Binomial)

Sample Defectives Subgroup • A p-Chart is used to track the

Number (np) Size proportion defective
1 8 96
• The p-Chart is constructed using data
2 12 104
on the number of defectives from
3 13 99
varying (or fixed) subgroup sizes
4 8 100
5 7 103 • The data opposite shows the number
6 13 110 of defective orders from random
7 6 97 samples taken over 10 working days
8 7 88 • The subgroups should be large
9 10 111 enough to contain 5 or more defective
10 8 105 items
 45

Control Charts for Defective Items (Binomial)

• The p-chart must satisfy the requirements for the Binomial
Distribution. The particular requirements affecting the p-chart are:
1. Each unit (e.g., transaction, invoice, …) can only be classified
as pass or fail
2. If one unit (e.g., transaction, invoice, …) fails, then the chance
of the next unit failing is not affected
• If the Binomial distribution is not appropriate then it may be
possible to use the Individuals control chart already discussed
• Since we are charting defective items this chart should not be
used when the number of defectives is zero or there are a large
number of zeros (80-90%)
 46

P Chart Construction
Average
Proportion Proportion
Sample Defectives Subgroup Defective Defective
Number (np) Size (n) (p) (pbar) 3 Sigma UCL(p) LCL(p)
1 8 96 0.083 0.091 0.088062 0.179062 0.002938
2 12 104 0.115 0.091 0.084608 0.175608 0.006392
3 13 99 0.131 0.091 0.086718 0.177718 0.004282
4 8 100 0.08 0.091 0.086283 0.177283 0.004717
5 7 103 0.068 0.091 0.085017 0.176017 0.005983
6 13 110 0.118 0.091 0.082268 0.173268 0.008732
7 6 97 0.062 0.091 0.087607 0.178607 0.003393
8 7 88 0.08 0.091 0.091978 0.182978 -0.00098
9 10 111 0.091 0.091 0.081896 0.172896 0.009104
10 8 105 0.076 0.091 0.084204 0.175204 0.006796
Total 92 1013

Σnp 92 p(1- p)
p= = = 0.091, σ =
Σn 1013 n
p(1- p) p(1- p)
UCLp = p + 3σ = p + 3 , LCLp = p − 3σ = p - 3
n n
 47

P Chart - Minitab
P Chart of Defectives
0.20

UCL=0.1749

0.15

Proportion 0.10 _
P=0.0908

0.05

LCL=0.0067
0.00

1 2 3 4 5 6 7 8 9 10
Sample
Tests performed with unequal sample sizes

Open Worksheet P Chart

Stat>Control Charts>Attributes Charts>P
Variable: Defectives
Subgroups in: “Subgroup Size” Click “P Chart – Options”
Click “Tests” – select “1 point > 3 standard deviations from center line”
 48

Control Charts for Defects (Poisson)

Sample Defects Invoices

• A u Chart is used to track the number of Number c n
defects per unit (e.g., transaction, 1 7 40
invoice, …). 2 4 45
• The u chart is constructed using data on 3 8 33
the number of defects from varying 4 5 40
subgroup sizes (number of units). 5 3 39
6 8 46
• The data opposite shows the number of
7 5 27
defects in the given number of invoices
8 7 45
sampled randomly from 10 weeks of
9 9 38
invoicing.
10 4 39
 49

Control Charts for Defects (Poisson)

• Since the u-chart is based on the Poisson

Distribution, the data should be tested to see if it fits
the Poisson distribution (e.g., some “count data”
such as complaints and late shipments may not fit
the Poisson distribution)
• If the Poisson distribution does not fit then it may be
possible to use the Individuals control chart already
discussed
• Since we are charting defects, this chart should not
be used when the number of defects is zero or there
are a large number of zeros (80-90%)
 50

U Chart - Construction
Sample Defects Invoices DPU
Number c n u u bar LCL(u) UCL(u)
1 7 40 0.175 0.153 0 0.34
2 4 45 0.089 0.153 0 0.328
3 8 33 0.242 0.153 0 0.307
4 5 40 0.125 0.153 0 0.339
5 3 39 0.077 0.153 0 0.341
6 8 46 0.174 0.153 0 0.326
7 5 27 0.185 0.153 0 0.378
8 7 45 0.156 0.153 0 0.327
9 9 38 0.237 0.153 0 0.343
10 4 39 0.103 0.153 0 0.341
Total 60 392 0.153
Σc 60
u= = = 0.153, σ = u
Σn 392
u u
UCLu = u + 3σ = u + 3 , LCLu = u − 3σ = u − 3
n n
 51

U Chart - Minitab
U Chart of Defects
0.4

UCL=0.3410
0.3

Sample Count Per Unit 0.2

_
U=0.1531

0.1

0.0 LCL=0

1 2 3 4 5 6 7 8 9 10
Sample
Tests performed with unequal sample sizes

Open Worksheet: U Chart

Stat>Control Charts>Attributes Charts>U
Variable: Defects Subgroups in: “Units”
Click “U Chart Options”
Click “Tests” – select “1 point > 3 standard deviations from center line”
 52

Workshop - Attributes Control Chart

• Using the packets of sweets provided (assume
that each packet has been taken from a different
batch of production over the last few days):
 Randomly select 20 sweets from each packet
 Inspect the sweets for two types of defect-
• Badly mis-shaped/damaged sweet
• Missing or poorly printed logo
• Using Minitab, assess the stability of the process
• Prepare a short report of your findings
Uses of Control Charts
 54

Control Charts
Variable Attribute
Data Data

No Subgroups Subgroups Defect Data Defective Data

Subgroups n = 2-9 n>9 (Poisson) (Binomial)

Individuals & X Bar & R X Bar & s Varying Constant Varying Constant
Moving Range Chart Chart Subgroup Subgroup Subgroup Subgroup
Chart Size Size Size Size

u Chart c Chart p Chart np Chart

 55

Improvement
• Control charts are one of many variation reduction
tools
• Controls charts detect change of the output variable
(y)
• The output changes because a critical input variable
(x) has changed
• Control charts provide clues that can help to identify
these critical inputs (x’s)
 56

Clues to Discovering Critical x’s

• When did the change occur?
• What patterns are emerging?
 Shifts
• Gradual or Sudden?
 Trends
• Increasing or Decreasing?
 Unusual patterns or cycles?
 57

Identification of Critical x’s

• To determine the critical x, i.e., the input causing
the shift, we need to consider:
 Delayed detection
 Multiple inputs causing shifts
 Lack of information on inputs
• We can also use screening experiments, scatter
diagrams, … to determine critical x’s
 58

Transmission of Variation, y = f(x)

• Control charts can help to discover critical x’s that
are causing the process to shift

• Tighter control of these critical x’s will make the

process more stable
Transmitted
O Variation
Relationship Between
U Input and Output
T
P
U
T
Variation of Input

INPUT
 59

Transactional Improvement Process

Define Measure Analyse Improve Control

Select Project
Develop Detailed
Brainstorm Potential
Control Critical x ’s

Define Project

Define Measures (y ’s) Process Maps Improvement Strategies
10.2 Upper Control Limit
Objective START

Select Improvement
PROCESS Strategy 10.0

Form the Team STEPS
9.8 Lower Control Limit

Check Data Integrity
DECISION Criteria A B C D 9.6
1 5 10 15 20
Time + s - +
STOP
Cost + - + s
Monitor y’s
Service - + - +

Identify Critical Etc s s - +
Process Steps (x ’s)

Map the Process
Determine Process by looking for:

Plan and Implement y

Identify Customer Stability – Process Bottlenecks Pilot
Requirements
Determine Process – Rework / Repetition
Verify Improvement
Validate Control
Capability – Non-value Added Plan
Steps LSL USL
LSL USL
– Sources of Error /
Mistake

Map the Ideal 15 20 25 30 35
15 20 25 30 35 Process
Identify further

Identify Priorities
Implement opportunities

Identify gaps
Countermeasures
Close Project

Update Project File
Set Targets for between current and
Measures ideal

Phase Review Phase Review Phase Review Phase Review Phase Review
 60

Control Charts - Summary

• Charts can be constructed for variable or attribute data
• I-MR Charts should always be considered for attribute data
• Control Charts are used during capability studies to
determine process stability
• Real-Time control charts are used to detect shifts so that
causes of shifts can be identified and eliminated
• Should be used to control critical x’s (process input
variables) in order to reduce variability in process outputs
(y’s).
• Used to monitor y’s on an ongoing basis to ensure that the
process remains in control.