SIIP Report

STUDENT INDUSTRIAL PROJECT REPORT
PROJECT TITLE: STATISTICAL PROCESS CONTROL

FOR BASE OIL MONITORING
at
PETRONAS LUBRICANTS INTERNATIONAL
(MELAKA LUBE BLENDING PLANT)
by
ANDERSON JOSEPH
ID: 16740
CHEMICAL ENGINEERING
VERIFICATION STATEMENT
I hereby verify that this report was written by ______________________________________
and all information regarding this company and the projects involved are not confidential.
HC Supervisor Signature & Stamp
Name
Designation
Date
I|Page
ENDORSEMENT BY HOST COMPANY SUPERVISOR
Herewith, I endorse the project titled Statistical Process Control for Base Oil Monitoring to
be pursued under my supervision by _______________________________________. The
above-mentioned person shall adhere to all rules and safety measures as per company
regulations during his or her tenure.
HC Supervisor Signature & Stamp
Name
Designation
Date
II | P a g e
ACKNOWLEDGEMENT
First and foremost, I would like to express my gratitude to Centre of Student Internship,
Mobility and Adjunct Lectureship (CSIMAL) for giving me an opportunity to undergo a 14
weeks internship program in Petronas Lubricants International located in Tangga Batu,
Melaka. CSIMAL has done an excellent job by mapping out an elaborate internship program
which facilitates pursuance of industrial projects with specified objectives and outcomes
besides assigning supervisors to us and carrying out meetings to cater students problem
regarding internship program. Hereby, I would like to thank my UTP supervisor, Madam
Noorfidza Yub Harun who was willing to come all the way to Petronas Lubricants
International to evaluate my presentation and guided me all this while when there is any issue
in my internship period. Furthermore, I am also grateful for my department manager
Pn.Salwa for his valuable support, guidance and encouragement during my internship
training. Without her guidance, I would not be able to learn a lot and gain knowledge as
much as I can.
In addition, there are also other people that helped me a lot throughout the learning process in
Hammer Engineering. I would like to express my immense gratitude to Mr. Mohd Huzzairi,
Quality Control Executive, for being my totem of inspiration in the aspect of always being
hungry for knowledge. Also to Mr. Mustakim and Mr. Zainuddin, Lab Technicians, who
taught me the technical know-hows and performance and quality monitoring system which
has been used within the company. I also would like to thank all the staffs of Quality Control
department, notably Mr.Badrul for offering their assistance which provides me with
wonderful experience. Last but not least, I would like to give acknowledgement to all parties
who had also contributed directly and indirectly to the success of my Industrial Internship
Program.
Yours Sincerely,
Anderson J
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TABLE OF CONTENTS
Page
No
Index
No
Host Company Verification Statement
Endorsement by Host Company Supervisor
II
Acknowledgements
III
Table of Contents
IV
Objectives of SIIP
List of Figures & Tables
VI
Industrial Project Report

7
Chapter 1 Abstract & Introduction
Chapter 2 Background & Literature Review
Chapter 3 Methodology
19
10
Chapter 4 Result & Discussion
29
11
Chapter 5 Conclusion & Recommendations
12
Chapter 6 Safety Training & Value of Practical Experience
13
References
14
Appendix
IV | P a g e
OBJECTIVES OF STUDENT INDUSTRIAL INTERNSHIP PROJECT (SIIP)

Placing bold emphasis on outcome based education, UTP has produced a number of course
learning outcomes that is ought to be achieved at the end of industrial training. Being an
outcome oriented person myself, I would integrate these outcomes to be the main objectives
of my industrial training, which are to:
a) Integrate theoretical knowledge in the industry.
- The SIP offers students with the prospect to use their theoretical knowledge learnt in the
university into real-world engineering problems. Working with people of varied job function
in an industrial environment will develop the aptitude for learning and also teach them to
value the knowledge they have gained and yet to gain.
b) Analyse complex engineering/technical projects or problems.
- During SIP, students will be handed with assignments and projects by their superiors. This
will expose them to a working environment where they would work with other engineers or
independently to investigate and study the engineering/technical part of the projects and tasks
assigned.
c) Evaluate and propose solutions for given complex project or problems.
- Producing a feasible solution for a complex problem of an industrial scale would not be
possible if the student is to think from on his perspective alone. Working with all levels of
employees would reap valuable insight on the problem and also by leveraging on their
knowledge and experience, a solution could be produced.
d) Communicate effectively on complex engineering/technical activities.
- Working on a complex engineering problem means there is an evident need to liaise with a
multitude of industry personnel making inter-disciplinary knowledge exchange highly likely.
The student is expected to harness the technical communication skills needed to present the
problem, findings or any other means of information transfer without having a bottleneck on
the communication process.
V|Page
LIST OF TABLES AND FIGURES
Page
No
List of Tables
No
Table of Base Oil Categorisation
Table of Constants for design of control charts for range
12
Sample data for E3-type base oil
29
29
Sample data for BS-type base oil
30
30
Sample data for M-type base oil
31
VI | P a g e
Page
No
List of Figures
No
Control Chart selection flowchart
10
Example of an I-MR chart
13
Illustration of Test 1 and Test 2
14
Guide for Patter Observation in Control Charts
15
Process Stability Analysis for E3-type
32
33
34
Process Stability Analysis for BS-type
35
Process Stability Analysis for M-type
36
10
Process Capability Analysis for E3-type
38
11
39
12
40
13
Process Capability Analysis for BS-type
41
14
Process Capability Analysis for M-type
42
VII | P a g e
INDUSTRIAL PROJECT REPORT

STATISTICAL PROCESS CONTROL FOR BASE OIL MONITORING
CHAPTER 1
1.0 ABSTRACT AND INTRODUCTION
1.1 OBJECTIVES
I would describe myself as a person who is extremely goal-oriented and have continued to
prove myself to be of that nature. It is vital for me to establish the desired outcomes of this
specific project that I am pursuing apart from the general objectives of the Student Industrial
Internship Project (SIIP) which are loosely fit to cater all the students from multiple
disciplines. Hereby, I have accounted myself to arrive at the objectives I have set down
below, as this this project comes to a conclusion:
To select and apply the process-specific tools of SPC to identify improvement

opportunities in base oil quality monitoring
To introduce and provide a framework for process problem solving and quality
improvement of lubricants
To be knowledgeable and employable in the work function of Statistical Process

Control and Quality Control & Assurance in the lubricant industry and other
industries as well.
It is also my utmost priority and responsibility to cater the companys needs in equipotence
with my desired outcomes. I have addressed the problems that are improvable under my work
function and I have decided to tackle them in this project with the help and advice of my
superiors:
To improvise / upkeep current Statistical Process Control methods at Petronas

Lubricants International (Melaka Lube Blending Plant).
To reduce the number of re-blending procedures via base oil monitoring
To ensure the consistent achievement of Quality Dept.s target of 95% first time right
for blending products.
1|Page
1.2 SCOPE OF STUDY
The Statistical Process Control for Base Oil Monitoring project centralises within the
following scope of study:
Identify variability in process and suggest solutions
To describe the role of variability and statistical methods in controlling and improving
process quality
To describe the major problem solving tools for quality control.
To illustrate the use of quality tools with worked examples.
To provide an understanding of how the techniques can be used together to aid

process improvement.
To be able identify and monitor parameters that are Critical-to-Quality (CTQ) as

required by industry standards.
To learn and perform standardised testing procedures for the CTQ parameters for the
base oils.
To learn and operate various statistical analysis softwares and produce graphical
representation of data that is easily interpreted for evaluation.
2|Page
1.3 PROBLEM STATEMENT
At present, my host company, PETRONAS Lubricants already has statistical process control
as part of their quality control procedure to meet customer requirements. But in my opinion,
this practice is too far on the customer end as the quality testing procedure is performed post
production, where product variation would require a complete re-compounding for the off spec batch .This would prove costly in terms of raw material costs, equipment run-time and
down-time, and also wasted man-hours spent on blending a failed batch of lubricants. There
are cases where blended batches which turned to be off-spec had to be discarded because recompounding had little or no effect on their condition. These are severely uneconomical
situations that could be averted with necessary precaution.
The whole idea of emphasising quality at the end of process is drifting away from the
function of quality control to quality assurance, and in cases of outliers from the product
specification at this point is costly to rework on its quality. My opinion of statistical process
control is not just about its use in quality control but also its role in ensuring competitiveness
of our products in the lubricant industry. In any industry, regardless of their nature, compete
for three things: quality, delivery, and price. Quality alone cant be the single deciding factor
of the products success, but then again, with great quality, the delivery and price
performance would be competitive as well.
To deviate the cost-intensive bottlenecks in the quality control procedure, I have come up
with the notion of using Statistical Process Control for base oils viscosity that are being used
for lubricants. I must admit that this idea is leveraged from the knowledge and experience of
my supervisor, Mr Huzzairi, who is also the Quality Control executive, and Mr Mustakim,
Senior Technician in our Quality Control lab.
They have devised a plan for me to execute the project without going through much of the
organisational red-tapes or resistances and they have also helped me to access and retrieve
data for the lab test reports, batch manufacturing reports, among other remote details via their
SAP account. In addition to that, they have also granted me permission to access all the files
3|Page
and records necessary for the execution of my project provided that I would hold myself
responsible in keeping company confidentiality and product formulation secrecy at all times.
1.4 RELEVANCY
My concern on relevancy is levied on two broad spectrums. The relevancy of this project to
my field of studies and the relevancy of this project to my work function in the Quality
Department.
As far as relevancy of this project to my field of studies is concerned, Statistical Process
Control is major discipline of chemical engineering and is an endorsed training area by
Centre of Student Internship, Mobility, and Adjunct Lectureship (CSIMAL). Although I have
not taken this course earlier, I have taken proactive measures and self-taught myself in this
subject. I have enrolled in the UTP e-learning portal of Dr Bhattacharjees Statistical Process
Control class and have used his study materials extensively. Through his book suggestions, I
have acquired many good textbooks on this matter and have garnered invaluable knowledge
which is essential for this projects execution. In addition, to that I have also used study
materials on this subject matter from universities worldwide namely, Plymouth University,
Arizona State University, King Fahd University, Worcester Polytechnic Institute, and John
Hopkins University.
To pose relevance to my departments work function is not a hard task if exercised, but can
be easily overlooked if one has not planned thoroughly. The aim of the project is not to
actively seek to discontinue cost-intensive re-blending procedures but to reduce costly
reworks by employing strategic quality control procedures, and this is where Statistical
Process Control comes into action. Having the objectives and methodology thoughtfully
planned out and consistently performing checks to ensure if we comply with the
aforementioned aspects would ensure relevancy of this project on all stages.
4|Page
CHAPTER 2
2.1 FEASIBILITY OF PROJECT
In this particular section, we will discuss the reasons that makes this project doable and
within the reach of my competence. The two main aspects we will look into is the feasibility
of the scope within the project and if the project will reach completion in the specified
timeframe, specifically within the internship period.
The scope of study as described in the earlier chapter, is aligned with the subject Statistical
Process Control offered in final year of undergraduate study for Chemical Engineering
students of UTP, provided that they choose the major of Process Analysis and Control.
Although I have not undertaken the course yet, I have made massive effort to self-educate
myself on that topic. I must say Dr. Bhattacharjee of Chemical Engineering Department, UTP
has been a great help to my project without being directly involved. I have downloaded his
lecture materials and followed through his literature suggestions to acquire the much sought
after essential knowledge on Statistical Process Control. Thereby, it is safe to say this project
is bounded well within the scope of studies and is anticipated to cover all of it.
As far as the timeframe is concerned, I was quite hesitant to undertake this project when I
found out from the literatures, that a yearlong data is necessary for accurate, and reliable
analysis. As push came to shove, I realised that any documented data from yesteryears is as
good as the one that I would obtain myself. So I took the challenge of retrieving and
analysing from recorded data, a process that is termed retro-analysis, as it would be
described in the rest of the report. Therein, it would help me to design a solid framework for
another yearlong data acquisition and analysis, which I would hand-over to the quality
department personnel to complete, as I would be concluding my internship beforehand. Thus,
the feasibility of the project within the timeframe is upheld.
5|Page
2.2CRITICAL LITERATURE ANALYSIS
Within one project, this probably the one time where I reviewed the most literatures for one
subject matter. Statistical Process Control (SPC) is a relatively complex statistical tool and
proportionally fruitful with reference to its complexity. Along the journey of in-depth
literature analysis, I have figured out the dire necessities of the project and have acquired the
knowledge to utilise them to produce the project deliverables. I have summarised the gist of
my learnings in this part of the project and I have carefully brought about the knowledge
from the literatures with a fair balance of detail and comprehensibility so the readers may
garner the most out of these literatures.
Along the line, I have briefly introduced our industry, petroleum lubricants and our material
of study, base oils, before we dive on to the details of SPC. I have defined the meaning of
quality as a starter to signify the need to use the tools of quality, primarily SPC. I have
detailed more on the importance of quality to our company in the methodology part of this
report as I find it more relevant to be placed there (Chapter 3).
Beginning with the control charts, I have written in depth on the selection criteria for control
charts, setting up the desired control chart, testing and interpreting a control chart, and finally
the process capability and process performance analysis.
Introduction to Petroleum Lubricants

In the modern-day lubricant industry, lubricants are formulated from a broad range of base
oils and countless additives and performance enhancers. The base oils primary function is to
provide the fluid layer that separates the moving surfaces. In addition to that, it also dissipates
heat and wear whilst minimizing friction. Much of todays lubricants are enhanced with the
aid of chemical additives which gives an abundant value-added properties such as oxidationstability, emulsion-stability, extreme-pressure (EP) resistance, and the list goes on.
Ultimately, the base oil is the host for all these additives and consequently it must be able to
sustain them in a single-phased solution at all working conditions, ideally.
6|Page
Types of base oils

The majority of lubricant base oils are products of crude oil refining, the reasons being the
excellent performance, high availability and economic cost-prices. Non-petroleum origin
base oils are being used for where their specific properties are desired, thus they will not be
discussed here. (Mortier, Fox, & Orszulik, 2010)
Saturates
Sulphur
content (%)
content (%)
Viscosity Index (VI)
Process
Group I
< 90
> 0.03
80 > 120
Solvent-refined
Group II
90
< 0.03
80 > 120
Hydro-treated
Group III
90
< 0.03
120
Hydro-cracked
Group IV
Group V
Poly Alpha Olefins (PAO)
Chemical reaction
All other types of synthetics

Table 1 Table of Base Oil Categorisation
The Meaning of Quality
Commonly, quality has been perceived as the character that signifies superiority of a product
in the eyes of the customer and the manufacturer alike. But what is quality from an industrial
perspective? Below are some definitions of quality verbatim from the literatures;
Fitness for purpose or use ~Juran
The totality of features and characteristics of a product or service that bear on its
ability to satisfy stated or implied needs ~ BS 4778: Part 1: 1987 (ISO 8402: 1986)
The total composite product and service characteristics of marketing, engineering,

manufacture, and maintenance through which the product and service in use will
meet the expectation by the customer ~Feigenbaum
(Oakland, 2003)
7|Page
The term quality has been articulated in many ways in literatures but only (Morris, 2010) had
categorized them efficiently into;
1) Design Quality
2) Manufacturing Quality
3) Performance Quality
Since our project focuses on a manufacturing perspective, we will probe in that a little bit
more. Another significant literature in the field of statistical process control, (Montgomery,
2009) had particularly stated that for service industries, the improvement of quality signifies a
reduction of variability of processes and products.
Thereby, it is evident that conformance to specification, and reduction of variability from the
said specification is the key to manufacturing quality. It describes the very intention of this
project, which is to monitor base oils viscosity and bring it to statistical control, thereby
reducing the variation in lubricant products from its specification.
Statistical Process Control
To manufacture a product that satisfies or goes beyond customer expectations, the production
process of it should be able to operate with little inconsistency in the desired specifications of
the products quality characteristics. This is where statistical process control comes in use. As
(Montgomery, 2009) defines, Statistical process control (SPC) is a powerful range of
problem-solving tools used to achieve process stability and improving capability by reducing
variability. SPC is one of the vital scientific progresses of the twentieth century because it is
based on comprehensive core principles, is easy to use, has substantial effect, and proven
functional to any process.
8|Page
The 7 major tools of SPC has endured the test of time and has proven to be crucial in making
the most out of raw data, deriving quality from numbers. Some details about the tools as
described by (Oakland, 2003), are given below;
1. Flow chart - What is done?

2. Check sheet How often it is done?
3. Cause-and-effect diagram What are the causes and effects?
4. Pareto chart What causes the most effects?
5. Histogram/stem-and-leaf plot - What does the variation look like?
6. Control chart Which variations to control and how?
7. Scatter diagram What are the relationship between the diagrams?
Control Charts
Developed by Walter Shewhart in 1920s, control chart is perhaps the most significant and
sophisticated tool among the 7 tools of quality. Shewharts postulated the notion of
assignable causes (common causes) and non-assignable causes (special causes). With the
development of control charts, he devised a rule to detect the special causes and also
accurately anticipated the range which common causes fall in the charts. This helps the users
minimise the risk of reacting to a special cause when it is in fact a common cause, and the
risk of not reacting to a special cause when one is present.
Before we get all technical on the calculations, lets get along with the types of control charts
present. The flowchart below summarises the types of control charts with much ease of
understanding.
9|Page
Figure 1 Control Chart selection flowchart
(Minitab Assistant, 2015)
In the field of SPC in manufacturing, the most common chart is the Xbar- R chart as it is the
most sensitive chart in terms of process variation, especially with sample sizes more than
4.This is in line with the justification of (Oakland, 2003)the larger the sample size, the
closer the mean control chart limits to the process mean. But for our specific application,
for batch manufacturing, an Individual-Moving Range (I-MR) chart would be more
pragmatic as multiple samples from the same tank of base oil will only yield identical results.
Moreover, its simplicity and ease of interpretation would prove useful for my lab mates
(technicians, chemist and others) as the goal here is to produce base oil monitoring system
with repeatability and accessibility. Much alike the Xbar-R chart, the I-MR chart is good at
indicating changes in mean level (accuracy/ central tendency) and variation (precision/
spread) with much dependability. The only downside is the reduced sensitivity due lack of
subgroups unlike the Xbar - R Chart but with continuous observation and monitoring that can
be accounted for. Thus, I-MR chart will be control chart of choice for our project purpose.
10 | P a g e
Setting up the I-MR chart

Unlike the Xbar R chart which plots sample mean and sample range against a time-series,
the I-MR chart plots individual values and moving range between them against a time-series.
Other than that, the set-up and interpreting method of I-MR charts are similar to those for
conventional mean and range charts.
Data Collection for the I-MR chart

First things first, for a precise I-MR chart data collection must be done with much caution.
Data must be collected at a reasonably regular time intervals
At least 100 data points are needed for a control chart to labelled perfect. If you have
less than 100, consider it a preliminary study and re-assess the process after you get
100 data points.
Data must be tested for normality. Normality tests will be discussed later in the Tests
and Interpretation.
Centreline
The centreline shall signify the process mean, and shall be labelled as thus .The centreline
(CL) will typically be positioned at:
Centre of specification
Mean of past process performance
Predicted/ Desired target value

(Oakland, 2003)
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Control Limits and Warning Limits

For moving range chart;
Refer the constants used in the design of control charts for range for the values of D. Table
below highlights the value for n = 2 only. n = 2 is used because the value for moving range is
observed from two successive observations.
Table 2 Constants for design of control charts for range
Upper Control Limit (UCL):
.001
Lower Control Limit (LCL):
.999
Upper Warning Limits (UWL):
.025
Lower Warning Limits (LWL):
.975
(Oakland, 2003)
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For individuals chart;
The standard deviation, can be calculated from a previous data from a stable process or can
be calculated from the mean moving range. The d2 is known as the Hartleys Constant with
the value of 1.128 for n = 2.
Control limits:
Warning limits:
or
[3 ]
or
[2 ]
Figure 2 Example of an I-MR chart
(Montgomery, 2009)
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Testing and Interpreting a Control Chart
Normality Tests
As our chart requires our data to have an assumption of normality we are obliged to put our
data to a normality test. Upon going through a handful of normality tests such as the
probability plot, Anderson- Darling test, Ryan- Joiner test and the Kolmogorov- Smirnov test,
I have found the Anderson Darling test to be the most compatible with our application. The
Anderson- Darling test relates the empirical cumulative distribution function of your sample
data with the distribution projected if the data was normal. If this measured difference is
adequately large, the test will reject the null hypothesis of population normality (Minitab
Assistant, 2015).
In case your data is not normal, you can apply a function of transformation to enable your
data to be approximately normal for your analysis. For our case, since we have all positive
integers we are best apt at using a Box- Cox transformation. (Minitab Assistant, 2015)
Variability tests
There are a total of eight tests for the Shewhart control charts test for special causes as
described (Nelson, 1984). But as for general ease of use and predictability Test 1 and Test 2
have been apparent in the quality control area.
Figure 3 Illustration of Test 1 and Test 2
(Nelson, 1984)
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Pattern observation tests

Surprisingly for a start-up statistical software, Minitab 17 provides much detail on this pattern
observation and automatically reporting special causes. A graphical guide for pattern
observation is given below.
Figure 4 Guide for Patter Observation in Control Charts
(Minitab Assistant, 2015)
Process Capability and Process Performance Analysis

In laymans terms, both process capability and process performance simply comes to
Engineering Tolerance divided by Natural Tolerance.

. .
=

6
The difference between Upper Specification Limit (USL) and Lower Specification Limit
(LSL) is termed as Engineering Tolerance whilst the Natural Tolerance is derived from the
range where assignable or common causes fall into, 3 (from +3 to -3, hence 6 range) .
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The reason to use Process Capability and Process Performance Analysis is mainly because
the synergistic enhancement it provides to the control charts. To understand this, Dr. Hans
(Bajaria, 2011) has claimed that these three questions could identify three unique sets of
causes.
1. Is the process stable?
Method to know: Control Chart
2.
Is there too much variation?

Method to know: Cp or Pp
3. Is the process off-target?

Method to know: Cpk or Ppk
Thus, this is an opportunity for us to further refine our results to a greater precision while
gaining knowledge about yet another powerful statistical tool. The fine line of difference
between Process Capability and Process Performance is distinguished from the value for
standard deviation used. Process performance are computed just like the Process capability
apart from the fact that Process performance uses overall standard deviation for the time
period, overall instead of the one that is used for short-term which is the standard deviation
(within) the particular data set, within.
If we have a Cp or Pp index of 1, the natural tolerance is in the range of specifications. A Cp

or Pp index of 2 implies that the process is capable of or performing by producing products
with half the variability allowed by the specifications. If the Cp or Pp is 0.5, the process has
twice the variability required to produce products in spec. The larger the Cp or Pp value, the
better the capability or performance. This index relates the range of the specs to that of the
natural tolerance. But then, it does not show us how centred the process is. Cp or Pp stays the
same, irrespective of the centre lines position or quantity of product that is out of
specification. It only reacts to deviations in the process variability. Process centring is also
influential, as an off-centred process produces more out of specification products than a well
centred one. We utilise the Cpk or Ppk index to measure process centring. We use the Cpk or
16 | P a g e
Ppk for process centring capability and process centring performance respectively. This index
is the spread of the process average to the closest specification limit divided by half the
natural tolerance. (Morris, 2010)
Pp and Ppk should ideally be used to check against Cp and Cpk and to gauge and enable
improvement over time.
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2.3 CITATION AND REFERENCES
Bibliography
Bajaria, D. H. (2011, December 14). American Society of Quality. Retrieved from American Society of
Quality: http://asq.org/learn-about-quality/overview.html
Minitab Assistant. (2015, November 2). Retrieved from Minitab Statistical Software :
http://support.minitab.com
Montgomery, D. (2009). Introduction to Statistical Quality Control (6th edition). Jefferson City: John
Wiley & Sons Inc.
Morris, R. (2010). The Book of Statistical Process Control (2nd edition). Cincinnati: The Zontec Press.
Mortier, R., Fox, M., & Orszulik, S. (2010). Chemistry and Technology of Lubricants (3rd edition). New
York: Springer Science+Business Media B.V.
Nelson, L. (1984). The Shewhart Control Chart--Tests for Special Causes. Journal of Quality
Technology Vol.16, 237-239.
Oakland, J. (2003). Statistical Process Control (5th edition). Oxford: Butterworth Heinemann.
2.4 RELEVANCY AND RECENTNESS OF THE LITERATURE

All the literatures I reviewed in the critical literature analysis section are from established and
knowledgeable authors of the topic. The most notable ones are Montgomerys Introduction to
Statistical Quality Control and John Oaklands Statistical Process Control. These two are
suggested study material for SPC subject by Dr. Bhattacharjee of UTP, who is teaching the
course in the current semester.
With the exception of Nelsons Journal of Quality Management, every other literature I
reviewed are from the year 2000-onwards. Hence, the recentness of the literatures are not
overlooked. Besides Nelsons journal was the most comprehensive literature on the methods
of original inventor of SPC, Walter Shewhart, at that time. Herewith, it is affirmative that the
relevancy and recentness of the literature is spot-on.
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CHAPTER 3
3.0 METHODOLOGY
CASE STUDY
Here, I will explain the problem statement briefly to understand the process problem as a
whole part. When I first presented the notion of improvising the current SPC system, my
supervisor and lab technician werent in agreement as I proposed to revise the SPC of the
product line which was advised by consultants hired by the company to liaise on quality
issues and improvement considerations.
After much brainstorming and going through documented quality records from the past, we
agreed that if theres a room for improvement it should be on one of our departments Key
Performance Index (KPI), which is First Time Right for products. The target for the
aforementioned KPI is 95% which is achieved most of the time, but variability and
inconsistency of which has not been satisfactory. As I type this case, we had just underwent
quality audit for ISO TS 16494, for which the above problem have been highlighted.
Thereby, Mr.Huzzairi, being the quality executive and chemist for our lab, has conducted the
Root Cause Analysis (RCA) of this particular matter and discovered the root causes of the
said problem. The documents of which I will be unable to provide as they are not meant to be
disclosed but the causes are described briefly as follows:
Effect: - Re-blending / Unable to achieve First Time Right target.
Cause(s): - Technical difficulties in the DCS (Distributary Control System)
-
Instability in the Base Oil viscosity
Ergo, Mr. Huzzairi explained to me that there lies the potential for improvisation in our
current Base Oil Monitoring system. Mr. Mustakim, the lab technician had provided me the
details and records of the current Base Oil Monitoring system. Upon going through the files, I
had developed confidence to develop a statistical monitoring system for Base Oils and hence
it gave rise to this project, Statistical Process Control of Base Oil Monitoring System.
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3.1 RESEARCH METHODOLOGY
As stated in the case study, I have decided that ultimately I will be developing a framework
for statistical process control of base oil monitoring system. But in order to come up with an
effective system, I need to analyse the existing condition of the base oil monitoring system.
As stated in the feasibility study, it is impractical for me to gather enough data to observe
significant trends/ pattern that produces meaningful statistical information about the process
in the duration of 14 weeks of my internship. Hence, I have prioritised myself to these two
project deliverables:
I.
Collect a year-long data from Base Oil Monitoring System and retro-analyse them
using SPC tools, producing graphical representation of my findings, together with my
interpretation of it.
II.
Develop a sustainable framework for Statistical Process Control of Base Oil

Monitoring System, with ease of reproducibility for future use.
20 | P a g e
Herewith, I will detail in on the methodologies I have employed in the execution of the
project deliverables mentioned above.
Methodologies for Project Deliverable I:
1. Find the base oil types which are in use and has been on production from last year to
this year. Negate any types of base oil deemed obsolete.
2. Trace back all the documented records of the types of base oils selected for the study.
Use the SAP/ERP software or manually refer the hardcopies of the records from the
files in the filing cabinet.
3. Record the data in Microsoft Excel for future use. Return all the files to their
respective places.
4. Refer to the existing SPC system for the lubricant products developed by consultant.
Analyse the SPC tools being used and find out how relevant and appropriate they are
to our specific application. Refer back to the related literatures and look for
improvisation prospects.
5. Compare and contrast between the Statistical Process Control tools that are available
with the one that is currently being used. At the end of reviewing literatures, you
should arrive at the most accurate SPC tool(s) suited for our specific application.
6. Scout and try out different statistical analysis softwares. Select the most appropriate
software for our specific application. Do pay attention to the functionalities and
standards of it, not forsaking its cost/benefit ratio or overall cost efficiency for that
matter.
7. Using the desired statistical software, analyse the collected data by the selected
Statistical Process Control method(s)/tool(s).
8. Produce graphical representations of the data and interpret them with statistical
significance. Record the findings in the results section of the project report.
21 | P a g e
Methodologies for Project Deliverable II:
1. Critically review the findings of project deliverable I. Identify the problems (special
cause variations/ outliers/ instability/ abnormality/ etc.) and address them. This will
help us improvise the existing monitoring system.
2. The problems are from a retro-analysed data. The causes of which must be known to
the person-in-charge (Mr. Huzzairi/ Mr. Mustakim). Liaise with them and identify the
nature of the problems.
3. Record all findings in a file, in both hard copy and soft copy. Make sure the time of
occurrence for the variations/abnormality/instability tallies with the retro-analysed
data. Documentation of these findings is important as a precaution in the future and
also to come up with a mitigation plan in case it should occur.
4. Based on the findings and knowledge of pre-existing base oil monitoring system,
outline the procedures to monitor the base oil to be used in accordance with the
statistical process control tool(s) selected earlier.
5. Ensure the reproducibility of methods/ documents/charts of the new framework for
base oils monitoring system.
6. Present the findings to the supervisor, Mr. Huzzairi and ensure the rectification of
earlier limitations from the existing base oils monitoring system.
7. Thank and acknowledge team for invaluable support and sharing of knowledge.
22 | P a g e
Test Methods for CTQ (Critical-to Quality) Parameters

Here I have outlined the specific testing procedures for the parameters of base oils in the tank
which are observed in this study. The specific instructions for these procedures are derived
from the standards set out by American Society of Testing and Materials (ASTM), namely
the
I)
ASTM D 7042: Test Method for Dynamic Viscosity and Density of Liquid by
Stabinger Viscometer, and the calculation of Kinematic Viscosity.
II)
ASTM D 4052: Test method by Anton Parr densitometer for Density, Relative
Density and API gravity of liquids.
Testing for Kinematic Viscosity at 100

Method(s) used: ASTM D 7042
1. Record sample identification in the inspection form.
2. Flush the sample syringe with toluene and introduce the toluene to the measuring
cell to flush out any remaining sample from previous use in the measuring cell
3. Ensure the measuring cell is clean (air density at least 0.0012 g/cm3).
4. Extract 5ml of sample in the syringe.
5. Remove any visible air bubbles as they can cause incorrect reading.
6. Inject the sample to the measuring cell and press START. Do not remove the
sample syringe.
7. Wait for test completion and collect the printed result.
8. Record the result in the inspection form and attach the printed result for reference.
23 | P a g e
Testing for Kinematic Viscosity at 40

sample syringe.
Testing for Density at 15
4. Check the temperature setting.
sample syringe.
24 | P a g e
3.2 KEY MILESTONES
Data Collection
Identifying
Improvement
Opportunities
Selection of SPC
tool(s)
Data Analysis
Data Identification
and
Documentation
Outline the Base

Oil Monitoring
System
Reporting the
findings
Selection of Case
Study
25 | P a g e
3.1 GANTT CHART
No
Activities
Category
Week
1
1.
Selecting a proper case study
2.
Determining the objectives and the scope of study
3.
Research on literatures related to project
4.
Determine methods to test case study
5.
Data collection
6.
Selection of SPC tools
7.
Analyse and Interpret the Data
8.
Outline the framework for base oil monitoring
9.
Prepare report
10.
Present the findings to the supervisors
11.
Submission of SIIP report and logbook summary
Planning
Executing
10
11
12
13
14
/
/
/
/
Reporting
26 | P a g e
3.4 TOOLS AND SOFTWARES USED

Tools and Equipment
Most of the tools I have used during the execution of this project were mostly lab equipment.
Basic office equipment used such as laptops, hard binder files, printers, and stationeries are
not mentioned here as it would not be necessary.
1. Manufacturer: Anton Parr
Type: Stabinger Viscometer
Model: SYM 3000 G2-100
Use(s): To measure kinematic viscosity at 100
Model: SYM 3000 G2-40
Use(s): To measure kinematic viscosity at 40
Model: DMA 4500
Use(s): To measure density and API gravity at 15
Softwares
1. Microsoft Excel Microsoft Excels spread sheeting functions are not unheard of. Its
use in that particular scope is unparalleled. I have used Microsoft Excel for tabulating
collected data for base oils. I have noted that currently we are using Microsoft Excel
for Statistical Process Control in our premises. However, I was keen on creating more
detail and clarity in the graphical representation of my data, hence a more subtle
software was chosen, particularly one whose function is statistical analysis.
2. Minitab Statistical Software Minitab is a statistical software that fulfils the need
for charting and analyses almost exclusively for quality control field. It performs
27 | P a g e
almost all types of statistical analyses imaginable, or at least the ones that I have come
across so far in every literature that I analysed. The control charts and process
capability and performance analyses I have performed were generated using this
software. This software has a vital role in putting the clarity of graphical
representation of data in this project which I believe would certainly be of great value
for this project.
Conclusively, I have utilised the least of resources to achieve and garner most benefits as I
planned. This is inspired from the Paretos principle of 80/20. Pareto proposed that 80 percent
of effects originates from 20 percent of causes. Akin to that, out of five softwares I tried out
for SPC purposes, Statit, Qi Macros, Dell Statistica, Excel and Minitab, only Minitab fits our
specific application.
28 | P a g e
CHAPTER 4
4.0 RESULTS AND DISCUSSION
4.1 FINDINGS
The findings from data collection is tabulated as follows. The following conditions applies
for all the following data sets:
1. Some data sets are naturally larger due to difference in production demand
2. Dates are omitted as sampling date differs for each type of base oil.
3. Data sets are ordered chronologically.
Sample,n
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
26
KV@100C KV@40C
cSt
cSt
3.194
12.745
2.862
11.176
2.69
10.12
2.81
10.55
2.9135
11.237
2.954
11.296
3.082
11.31
2.96
11.2
2.883
11.28
3.13
12.19
3.067
11.75
3.0245
11.767
3.051
11.64
2.989
11.51
2.55
9.18
2.72
10.12
2.919
11.16
2.929
11.516
2.75
10.321
2.807
10.599
2.82
10.561
2.77
10.545
2.672
9.9371
2.776
10.412
2.768
10.399
2.788
10.503
@15
g/cm3
0.8345
0.8382
0.8326
0.8358
0.8343
0.8341
0.8340
0.8337
0.8333
0.8317
0.8299
0.8294
0.8297
0.8311
0.8298
0.8293
0.8310
0.8303
0.8336
0.8332
0.8319
0.8331
0.8332
0.8331
0.8330
0.8320
Sample,n
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
KV@100C KV@40C
cSt
cSt
6.06
32.94
6.08
33.74
6.08
33.74
6.11
33.62
6.11
34.12
6.15
34.34
6.19
34.82
6.38
34.42
6.11
34.42
6.15
34.55
6.12
33.92
6.12
33.94
6.11
33.44
6.26
35.24
6.05
33.22
6.03
33.06
6.23
34.75
6.22
34.72
6.10
33.71
6.09
33.75
6.10
33.67
6.16
34.44
6.18
34.06
6.13
33.69
6.11
33.45
@15
g/cm3
0.8480
0.8465
0.8472
0.8454
0.8472
0.8496
0.8480
0.8483
0.8483
0.8486
0.8462
0.8462
0.8444
0.8478
0.8462
0.8460
0.8477
0.8478
0.8469
0.8469
0.8473
0.8482
0.8481
0.8465
0.8470
Table 4 Sample data for E6-type base oil
29 | P a g e
Sample,n
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
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
KV@100C KV@40C
cSt
cSt
31.30
471.68
30.76
448.26
31.27
473.16
31.44
472.80
30.70
455.90
33.50
515.50
33.43
517.92
33.51
519.76
33.59
515.24
33.10
514.43
33.14
514.50
33.52
515.65
33.49
515.30
33.38
514.40
33.41
516.52
31.04
460.04
30.98
462.37
30.66
461.80
30.54
449.12
30.92
451.86
30.97
460.48
30.98
446.23
30.97
463.58
33.07
510.52
30.95
462.57
30.94
459.83
30.35
462.22
30.37
454.78
30.05
461.65
30.38
448.69
32.99
504.97
30.73
461.12
30.21
476.92
32.77
506.68
32.64
488.04
31.76
483.05
31.76
484.68
31.92
488.54
32.11
490.71
31.71
485.10
31.66
486.86
32.72
508.74
31.92
488.54
31.65
483.07
31.94
488.10
31.10
471.43
31.50
474.80
30.84
460.02
31.23
459.00
@15
g/cm3
0.9002
0.9001
0.9020
0.9012
0.8966
0.9013
0.9014
0.9110
0.9009
0.8998
0.9001
0.9011
0.9013
0.9011
0.9011
0.8975
0.8969
0.8969
0.8969
0.8968
0.8966
0.8970
0.8968
0.9016
0.8967
0.8970
0.8969
0.8970
0.8970
0.8929
0.9028
0.8962
0.9016
0.9028
0.9041
0.9033
0.9028
0.9016
0.9028
0.9027
0.9032
0.9027
0.9016
0.9018
0.9018
0.9048
0.9049
0.9005
0.9006
Sample,n
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
26
27
28
29
30
31
32
33
KV@100C KV@40C
cSt
cSt
4.20
19.03
4.17
19.40
4.24
19.13
4.19
18.94
4.19
19.12
4.19
18.93
4.24
19.20
4.20
19.02
4.20
18.84
4.27
19.35
4.23
19.17
4.31
19.69
4.17
18.65
4.20
18.84
4.16
18.57
4.25
19.00
4.26
18.65
4.24
18.70
4.24
18.89
4.22
18.89
4.23
18.91
4.33
19.63
4.27
19.33
4.28
19.19
4.28
19.30
4.32
19.20
4.29
19.36
4.20
18.72
4.25
19.04
4.26
19.03
4.30
19.06
4.29
19.05
4.28
19.25
@15
g/cm3
0.8351
0.8353
0.8351
0.8345
0.8342
0.8344
0.8344
0.8342
0.8340
0.8345
0.8343
0.8348
0.8322
0.8333
0.8334
0.8339
0.8337
0.8345
0.8343
0.8341
0.8342
0.8357
0.8353
0.8353
0.8352
0.8361
0.8357
0.8350
0.8355
0.8358
0.8357
0.8357
0.8358
30 | P a g e
Sample,n
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
26
27
28
KV@100C KV@40C
cSt
cSt
10.52
79.77
10.62
79.38
10.61
79.33
10.43
77.98
10.46
78.19
10.45
78.98
10.57
78.96
10.53
79.33
10.39
76.73
10.34
77.08
10.29
76.50
10.32
76.50
10.82
83.22
10.80
82.83
10.80
82.80
10.44
78.89
10.41
78.79
10.43
78.94
10.30
78.03
10.54
80.38
10.53
80.37
10.40
78.65
10.58
79.93
10.59
80.69
10.24
76.41
10.62
80.45
10.32
77.68
10.41
79.16
@15
g/cm3
0.8638
0.8625
0.8625
0.8625
0.8626
0.8641
0.8642
0.8641
0.8625
0.8625
0.8624
0.8626
0.8654
0.8654
0.8654
0.8657
0.8658
0.8655
0.8663
0.8661
0.8661
0.8658
0.8662
0.8662
0.8658
0.8672
0.8656
0.8665
Table 7 Sample data for M-type base oil
31 | P a g e
4.2 DATA ANALYSIS

PROCESS STABILITY ANALYSIS
E3-TYPE Base Oil
Capability Analysis for E3-Type

Diagnostic Report
Moving Range
Individual Value
I-MR Chart
Confirm that the process is stable.
3.00
2.75
2.50
0.4
0.2
0.0
1
10
13
16
19
Normality Plot
The points should be close to the line.
22
25
Normality Test
(Anderson-Darling)
Results
P-value
Pass
0.893
Figure 5 Process Stability Analysis for E3-type
The E3-type base oil is the least used base oil among all the other types in this study. The
data collection for E3-type had to be taken from late 2014 to obtain a yearlong data with
regular interval. The reason behind this is because it has been diminishingly reduced in use
for blending as of this year.
1. General Pattern: The I-MR chart exhibits a global trend. The abnormality of point 15
(below lower control limit) and point 13, 14 being 9th, 10th consecutive points on one
side of the control limit may indicate a shift in mean.
2. Variations/ Abnormalities: Test 1 - Point 1, Point 15
Test 2 - Point 13, Point 14
32 | P a g e
3. Presence of special cause(s): No. Highly Unlikely. Normality Test suggests that the
process is following its expected natural distribution, hence the outliers can be
regarded as common cause variation.
4. Process Mean Stability: Unstable. 4 points (15.4%) of the data is out of control limits.
For the process mean to be considered stable, % of out-of-control points should be
less than 5%.
E4-TYPE Base Oil
Diagnostic Report
Moving Range
Individual Value
I-MR Chart
4.32
4.24
4.16
0.10
0.05
0.00
1
10
13
16
19
22
Normality Plot
25
28
31
Normality Test
(Anderson-Darling)
Results
P-value
Pass
0.502
1. General Pattern: The I-MR chart shows an oscillating trend in the first half and
progresses into a global trend towards the end. Theres little hiccups at point 9, 9th
consecutive point on one side of the control limit, and point 13, an outlier.
Nevertheless, its a somewhat safe and stable process.
2. Variations/ Abnormalities: Test 1 - Point 13
Test 2 - Point 9
33 | P a g e
3. Presence of special cause(s): No. Highly Unlikely. Normality Test suggests that the
process is following its expected natural distribution, hence the outliers can be
regarded as common cause variation.
4. Process Mean Stability: Very stable. 1 point (3.0%) of the data is out of control limits.
less than 5%.
E6-TYPE Base Oil
Diagnostic Report
Moving Range
Individual Value
I-MR Chart
6.2
6.1
6.0
0.2
0.1
0.0
1
11
13
15
17
Normality Plot
19
21
23
25
Normality Test
(Anderson-Darling)
Results
P-value
Pass
0.188
1. General Pattern: The I-MR chart was very stable and was varying randomly within
the central line until point 15 went out-of-control above the upper control limit and
the process seemed oscillatory. Causative data was tracked, and the value (6.20) was
well within the specification (6.00 - 6.50). As the point out of control is too few
(4.0%) compared to the bulk of the data, a mean shift is unlikely and the outlier is
deemed as a common-cause variation.
2. Variations/ Abnormalities: Test 1 - Point 14
34 | P a g e
3. Presence of special cause(s): No. Highly Unlikely. There is only one out of control
point on the I-MR chart. Besides, Normality Test also confirms that the process is
following its expected natural distribution, hence the outliers can be regarded as
common cause variation.
4. Process Mean Stability: Very stable. 1 point (4.0%) of the data is out of control limits.
less than 5%.
BS-TYPE Base Oil

Capability Analysis for BS-Type
Diagnostic Report
Moving Range
Individual Value
I-MR Chart
34
32
30
2
1
0
1
11
16
21
26
31
Normality Plot
36
41
46
Normality Test
(Anderson-Darling)
Results
P-value
Fail
< 0.005
Figure 8 Process Stability Analysis for BS-type
1. General Pattern: The I-MR chart has serious case of out-of-control points most
evidently on the first half of the chart. Heavily one-sided data point also indicates a
shift in mean. The abnormalities indicates a special-cause variation exists in this data
set. The frequently alarming points in the MR-chart shows suggestive evidence that
the process is excessively out of control.
35 | P a g e
2. Variations/ Abnormalities: Test 1 - Point 6-9, 12-15,29

Test 2 Point 14 and 15
3. Presence of special cause(s): Yes. The normality plot is flawed and the normality test
has failed. Special cause(s) exists and mitigation action must have been taken as the
plot returned to stability as it approaches the end of time series.
4. Process Mean Stability: Unstable. 9 points (18.4%) of the data is out of control limits.
less than 5%.
M-TYPE Base Oil
Capability Analysis for M-Type
Diagnostic Report
Moving Range
Individual Value
I-MR Chart
10.8
10.5
10.2
0.4
0.2
0.0
1
10
13
16
19
Normality Plot
22
25
28
Normality Test
(Anderson-Darling)
Results
P-value
Pass
0.248
Figure 9 Process Stability Analysis for M-type
1. General Pattern: The I-MR chart is very steadily showing pattern of global trend,
though it may not be called ideal at this nature. Nevertheless, the process obeys to the
control limits very well and there are little reason to investigate the random shifts in
moving range which are not strongly suggesting any unassignable variation.
36 | P a g e
2. Variations/ Abnormalities: None

3. Presence of special cause(s): No. Highly Unlikely. The I-MR chart is convincing in
terms of process stability. Normality Test also confirms that the process is following
its expected natural distribution.
4. Process Mean Stability: Very stable. No point (0%) of the data is out of control
limits. For the process mean to be considered stable, % of out-of-control points should
be less than 5%.
37 | P a g e
PROCESS CAPABILITY ANALYSIS

E3-TYPE Base Oil
Figure 10 Process Capability Analysis for E3-type
1. Reliability of study: Reliable. The total number of observation satisfies the Total N
needed for the study. From earlier test for normality (Anderson Darling test), the
data has displayed normal behaviour. Hence, no reason for false or inaccurate
capability and performance analysis.
2. Process Performance: The process is marginally under-performing. Ppk of 1.11
obeys the 3 standard (Ppk = 1.00), but it is still below our customer requirement of
4 standard of Ppk = 1.33.
3. Process Capability: The process has the potential capability of going beyond 5
standards of Cpk = 1.67 if the process is well centred and the variations are removed.
38 | P a g e
E4-TYPE Base Oil
2. Process Performance: The process is severely under-performing. Ppk of 0.67
indicates the 2 standard (Ppk = 0.67). There is much work to be done to hike up two
sigma levels to meet our customer requirement of 4 standard of Ppk = 1.33.
3. Process Capability: With a Cpk of 0.89, the process is not capable of meeting
customers desired quality requirement even if the process is well centred and the
variations are removed from the current data set. The process has to be investigated
for special cause variation, and the said variation must be removed from the data set,
before the process is re-evaluated. Upon re-evaluation, if the process fails capability
analysis again, there is a serious need for intervention.
39 | P a g e
E6-TYPE Base Oil
2. Process Performance: The process is severely under-performing. Ppk of 0.77
indicates the 2 standard (Ppk = 0.67). There is much work to be done to hike up two
sigma levels to meet our customer requirement of 4 standard of Ppk = 1.33.
customers desired quality requirement even if the process is well centred and the
variations are removed from the current data set. The process has to be investigated
for special cause variation, and the said variation must be removed from the data set,
before the process is re-evaluated. Upon re-evaluation, if the process fails capability
analysis again, there is a serious need for intervention.
40 | P a g e
BS-TYPE Base Oil
Figure 13 Process Capability Analysis for BS-type
1. Reliability of study: Unreliable. The total number of observation satisfies the Total N
needed for the study. However, from earlier test for normality (Anderson Darling
test), the data has displayed non-normal behaviour. Thereby, it is highly likely that we
encounter false alarms and inaccurate results.
2. Process Performance: The process is severely under-performing. Ppk of 0.53 means
the process has the lowest sigma standard of 1 (Ppk = 0.67). Needless to say, this
process has overall inconsistency in its performance even if its capability index
suggests otherwise.
customers desired quality requirement. The process has to be investigated for special
cause variation, and the said variation must be removed from the data set, before the
41 | P a g e
process is re-evaluated. Upon re-evaluation, if the process fails capability analysis

again, there is a serious need for intervention.
M-TYPE Base Oil
Figure 14 Process Capability Analysis for M-type
2. Process Performance: The process is performing well. Ppk of 1.06 indicates the 3
standard (Ppk = 1.00). With sufficient effort, we can go one sigma level up to meet
our customer requirement of 4 standard of Ppk = 1.33.
3. Process Capability: With a Cpk of 1.42, the process is capable of meeting customers
desired quality requirement even if the process is well centred and the variations are
removed from the current data set.
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4.3 PROJECT DELIVERABLES

Summary of SPC analysis
The aim of this study was to gauge the reliability of the retro-analysed data for process
stability and also to effectively estimate the trends and patterns in which the process may
behave in the future. This gives us an advantage when we implement the SPC analysis for the
ongoing base oil monitoring data. We will know what to expect and what not to expect given
that we have records of special cause variations in the processes.
For the I-MR chart:
Though the E3-Type base oil showed some degree of instability, it can be safely regarded a
stable process along with the control charts of E4, E6, SN, and M-Type base oils with the BSType base oil being an exception. BS-Type base oil had failed the normality test and has also
displayed excessive out of control behaviour on the control chart. Thus, I have decided to
resolve the unassignable error that caused this behaviour in the process for BS-Type. This
shall be discussed later after process capability and process performance analysis has been
concluded.
For Process Capability and Performance Analysis:
Unlike the results from control charts, the outcome of process capability and performance
analysis has turned very unexpectedly undesirable for us. All the base oil types, except the
M-Type have failed the minimum required spec set by customer for finished product
capability, which is 4 = 1.33. I must mention at this point that the 4 standard is for finished
product, not base oils, so we are not betraying our customers trust by selling products that
have not met quality standards. I have personally assisted Mr. Huzzairi, Quality Control
Executive in the SPC studies for finished products, and I can assert the fact that all of our
OEM products surpass the 4 (Cpk = 1.33) standards.
Then, why is poor capability and performance of base oils is an issue? This might be your
question, just like how it pricked my mind continuously when I first stumbled upon this
problem. The answer is cost. The cost of quality. The cost that is expended on recurring
reblending procedures and the array of losses that follows such as loss man hours, loss
productivity, waste of power, and the highly likely occurrence of an entire batch going to
waste. To briefly explain how re-blending works, one can say the chemist alters formulation
of other additives to follow the deviation caused by unstable, or unknown viscosity of base
43 | P a g e
oils (though DCS failure is another reason, it is not within our scope of study). The additional
use of additives is also cost intensive. As I type, I had just been informed of 60tons of lube
blend going to waste due to use of 40kgs of faulty additive. I suppose that is enough to
signify the magnitude and seriousness of the matter at hand. In a business perspective,
continuously running on additional costs to adhere to quality standards and requirements is
going to cause serious implications on our competitiveness. Soon, our price-cost ratio is
going tip-off and show our poor performance in the use of resources in achieving the
production plan.
Sources of Unassignable Errors
Special Cause Variations
When I brought these problems to the lab technician, Mr Mustakim, as I expected he had the
answers for me. The source of variation is known and has been addressed by the quality
department and that explains the chart for BS-Type returning to normal on the later end of the
time series in the control chart. Mr. Mustakim had shared with me that the management took
a cost cutting initiative on the base oils and the resultant management decision was a
proposed change of supplier. Since our supplier was from Singapore, we had suffered in
terms of pricing, due to transactions being processed in a foreign currency Secondly, time for
transportation and the man-hours spent for loading was also considered as our shipments
arrives in vessels and has to be transported via long-distance pipelines to our tanks. Therein,
decision was made to procure the goods from a Malaysian base oil manufacturer and
supplier, and the realization of the decision commenced.
Sadly though, the cost-cutting step has proven costly as it turned out to be quality-cutting
as well. A significant reduction in first time right for blended product was logged on May
2014. Mitigation action was pursued to avoid further losses and threats to quality. We
resumed procurement of base oils from our Singapore supplier the following month and we
have continued to do so until now.
44 | P a g e
Incapability and underperformance

Now that we have reasons (supplier change) for the special cause variations in the control
charts, but to what degree do we relate that information to the consistently below par results
in process capability and process performance studies? I digress. I believe that the overall
inconsistency of data in meeting the target value, even when it has fallen within the
nominated range of spec, is what has brought us the results that we have obtained.
For instance, the spec range for E6-type is 6.00 to 6.50 cSt. And the target value expected is
6.36 cSt, simply taken from previous measured value or calculated from the mean of
measured value from a set period of time. From my observation, during data collection and
analysis, the measured value had almost always deviated from the target value, but had
mostly stayed within the spec range. This will greatly influence process centring, reducing
the ability of the process to achieve central tendency, and consequently reducing Cp, Cpk, Pp,
and Ppk values.
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Framework for Base Oil Monitoring System

Current practice for Base Oil Monitoring
At present, the only documented base oil monitoring procedure is the inspection check that is
performed every time when the base oil shipment arrives from our supplier, right before the
tank is replenished with new base oil supply. First things first, this sort of inspection would
fall under the classification of quality assurance, and has little relevance to quality control.
The dependability of this method is ambiguous and is always a hit and miss, when it comes to
getting first time right during blending. The reasons behind this uncertainty are but a few
significant points. Ultimately, for a process to be brought to statistical control it has to be
monitored for a period of time at reasonable regular intervals. That goes without saying.
Truth be told, the source of these uncertainty originates from not monitoring the base oil
viscosity in the tanks regularly.
When the base oil tanks are replenished, the current amount of base oil topped up with the
freshly shipped supply. At that moment itself, the base oil experiences marginal variation in
viscosity from the reading taken during inspection which was not long before. Besides that, I
have also got to know from the technicians of maintenance department Mr. Bobby and Mr.
Hafiz, that it is not uncommon to observe moisture build-up in any tank, not just base oil
tanks for that matter, yet again proving that sources of variations are everywhere.
Mr Mustakim has also reminded me of the possibility of contamination in the supplies that
are transported by road tankers as they could have loaded a different chemical on their
previous shipment, and their flushing methods are not as efficient as ours. This proves the
need for continuous monitoring to eliminate all the guesswork and to have reliable
information on the base oil viscosity in the tank.
46 | P a g e
Projected Framework for Base Oil Monitoring

My proposed framework begins with collecting base oil samples from the tank every week,
and monitor for three parameters, Kinematic Viscosity at 100, Kinematic Viscosity at 40,
and Density at 15 . These are required parameters for base oils taken from their inspection
form, though some base oils have been observed to undergo additional tests for colour, flash
point, emulsion so on and so forth. I have finalised these three parameters to be tested for the
new base oil monitoring system, standardised for all base oils in the tank.
I have only used Kinematic Viscosity at 100 for the SPC of retro-analysed data as KV@
100 is the single most quantifiable parameter that is critical-to-quality(CTQ) in automotive
lubricants(engine oils). I have detailed in on how the additional parameters can be utilised for
Multivariate Analysis, should needs arise, in the Suggestions for Continuation and
Expansion section of this report.
The data for KV@ 100 of the base oil in the tank shall be updated on the statistical analysis
software every month. The data can be updated on top of the previous data that I have
collected for monitoring the deviation and stability. On the other hand, if the SPC reports
were to be documented exclusively based on current years data, the assessment shall be done
following the outline as follows. The capability and performance analysis can be performed
with about 20 data sets which can be done every 5 months whilst control charts requires a
longer period of assessment for accurate depiction of the state of process quality control, thus
I would recommend a thorough assessment on a particular year from a year long data.
Before even I started retro-analysing the documented data for base oils, I have already started
testing and documenting the samples for base oils in the tank, concurrently. As I type right
now, I have documented test reports 7 weeks for base oil monitoring. Therein, there is
sufficient foundation for continuation on the study of Statistical Process Control for Base Oil
Monitoring. A point to note here is that, this suggested framework would not replace the
earlier inspection procedure or make it obsolete. The earlier inspection procedure is for
quality assurance, which is to ensure the product that we buy from the supplier affirms to a
predefined standard. This framework that I propose will complement the existing technique
to provide reliable data for reducing ambiguity of parameters during blending.
47 | P a g e
CHAPTER 5
5.0 CONCLUSION AND RECOMMENDATIONS
5.1 IMPACT
Surprisingly, much of my work has gathered attention not just during the commencement but
throughout the data collection up till the development of results everybody in the lab was
keen on knowing and they were keeping themselves updated with my work and it had me
driven on delivering the end results to them for them to reap the benefits.
The other two interns who were placed together with me in the lab even helped me to
troubleshoot my framework every time I am stuck at a bottleneck. With the advantage of
having their attention, it only made it easier for me to brief the lab personnel on the Statistical
Process Control for Base Oil Monitoring methods and know-hows.
As this had been an uprising issue before the audit, everybody had acknowledged the
importance of this issue and the impactful benefit that this system may provide. Continuous
monitoring of base oil shall ideally keep the CTQ (Critical to Quality) parameters in a stable,
ideal control. A significant reduction in the need for reblending procedures is expected from
the said action. Needless to say, this will bring us closer to the goal of achieving 95% first
time right for blended product, every time.
5.2 RELEVANCY TO THE OBJECTIVES

I believe the most complete way of gauging a project completion is equating its relevancy to
the objectives, rather than checking on its results or findings. For that purpose, I shall list
down the objectives again and reinstate how the execution of the project helped me to
achieve the objectives;
1. To select and apply the process-specific tools of SPC to identify improvement

opportunities in base oil quality monitoring
-
I have gone through a multitude of statistical analysis tools and have found the
ideal ones for our batch manufacturing process to be the I-MR chart and process
48 | P a g e
capability and performance analysis. Through the passage of literature review

process I have come across a wide array of tools for statistical analysis and have
acquired the ability to select the tool for any process in the future.
2. To introduce and provide a framework for process problem solving and quality
improvement of lubricants
-
Much of the information on this framework of base oil monitoring was provided
to me by the lab technicians so I had little hurdle in introducing it to them. But I
admit it was challenging to select the right SPC tools that is suited to solve our
process problem whilst maintaining user friendliness and ease of access for
reproducibility. Fulfilling these criteria while providing this to them was my
biggest achievement as far as our objective is concerned.
3. To be knowledgeable and employable in the work function of Statistical Process

Control and Quality Control & Assurance in the lubricant industry and other
industries as well.
-
I must admit this objective was not just tied to this project alone. Needless to say,
much of my knowledge that I gained at Petronas Lubricants International, be it
technical or non-technical, was mostly from sharing sessions with my supervisor
and the lab technicians. The knowledge I gained on my own is only theoretical
and sometimes impractical but it is the leverage of their experience that led me to
yield pragmatic solutions for this project.
5.3 SUGGESTED FUTURE WORK FOR EXPANSION & CONTINUATION

1. Multivariate Analysis - I had thoughts of including this on the literature review part
but that would make the literature review more complex for my evaluators to
understand. Frankly, the primary reason for me to refrain from performing
Multivariate Analysis is because of its complexity and difficulty to interpret. But its
benefits outweigh its complexity. Needless to say, monitoring multiple variables with
one statistical tool is definitely signifies excellence of quality. Some tools that can be
used for this purpose is Hotelings T2 distribution, Multivariate Cumulative Sum
(MCUSUM) Chart, Multivariate Exponential Weighted Moving Average (MEWMA)
Chart, Principal Components Analysis (PCA), and Factor Analysis. I really hope in
49 | P a g e
the near future the Quality Department of Petronas Lubricants International will
consider using multivariate analysis as the SPC tool of choice.
2. Monitoring the Additives Monitoring the base oil was just the first step, to create a
systematic monitoring for the tanks in the tank farm. If a monitoring system for
additives is created in the near future, we would have a complete analysis system for
every tank in the tank farm. And if our resources allow, we can incorporate real time
monitoring similar to those of engineering process control via Distributary Control
System (DCS).
3. In the meantime, whilst expecting an aggressive growth of reliance in SPC tools, it is
necessary to maintain and upkeep the current system. My suggestion on this area is
just a piece of borrowed wisdom from the literatures (Minitab Assistant, 2015), which
is to re-assess the process regularly using SPC tools after you get 100 data points in a
specified time period.
50 | P a g e
CHAPTER 6
6.0 SAFETY TRAINING AND THE VALUE OF PRACTICAL EXPERIENCE
6.1 LESSONS LEARNT AND EXPERIENCE GAINED
I believe with the Student Industrial Internship Project coming to a conclusion, there is much
left for me to learn and practice in a boundlessly complex engineering world ahead of me.
Adhering to the SIIP objectives set by the university and the project objectives laid out by
myself, I have an ultimately superior objective that had been motivating me to pursue all of
the other objectives with great enthusiasm. The pursuit of increasing my employability by
enhancing my practical skills is what has been my driving force ever since I commenced the
internship program 8 months ago.
By continuously putting myself on the grind, I have acquired the invaluable wealth of
knowledge this industry has to offer me, and I humbly admit that I am not yet done learning,
and what I have learnt is just a grain of sand in the sea of knowledge. I have briefly described
my understandings and experiences during the period of my SIIP at Petronas Lubricants
International Sdn Bhd.
Safety Training
The safety training here was conducted by Mr. Ikhwan Razak, our safety coordinator in the
first day of reporting in to Petronas Lubricants itself. Since I have the OGSP (Oil and Gas
Safety Passport) from my previous host company, I have better understanding of the terms
explained in the safety training. Here, I will explain briefly the about the safety regulations in
Petronas Lubricants.
LOTO - Lock Out and Tag Out before servicing, repairing, cleaning, or retooling any
equipment or machinery.
UAUC Unsafe Acts and Unsafe Conditions: Unsafe Acts are the ones which arises
from human factor, and Unsafe Conditions are the safety failures in the system or the
management.
BEHAVIOURAL SAFETY Another topic that revolves around human factor, it is

vital for developing safety culture by workforce participation.
ZeTo Zero Tolerance (ZeTo) rules were devised by Petronas to be used in all of its
operating units.
51 | P a g e
5S (Sort Out, Shine, Standardise, Simplify and Sustain) is actually a management

principle but I chose to include it here because in PLI, 5S is actually enforced in every
department.
6.2 LEADERSHIP, TEAM WORK AND INDIVIDUAL ACTIVITIES

Leadership
Much of my leadership skills were put to the test when I have to proactively seek out
for answers regarding the status quo of the base oil monitoring system and the
problems faced by it. I also had to consistently seek out field operators and engage
them to get the base oil samples for me week in, week out.
Team Work
I cannot emphasise the importance of this notwithstanding the length of my

explanation. Much of this project was accomplishes by synergistic knowledge
exchange between me and the lab technicians and ultimately my supervisor, who had
always helped me with crisp set of instructions and procedures, making the whole
process doable and the learning curve gentle.
Individual Activities
Most of individual time spent on working out this project was largely allotted on
reviewing literatures, as I believe a good plan will always outwork a good execution.
In my case, both the planning span and the execution of the project went easier than
expected as my supervisor has provided me necessary literatures to get me started on
my knowledge gathering habit on the first day itself. The hunger for knowledge has
not subsided and I am continuing to cater my search for knowledge, with great
enthusiasm.
52 | P a g e
6.3 BUSINESS VALUES, ETHICS AND MANAGEMENT SKILLS

I could have written it down in full form but it would cluttered be ironic to one of the skills I
have learnt which is to present everything in an organized manner. Herewith, I present to you
the list of my learnings in business values, ethics and management skills.
Business Values
Productivity: The rate of work or output that is achieved without sacrificing quality.
Efficiency: Dictates how well we use our resources to achieve our goals
Effectiveness: The degree of realization of our desired outcome.
Ethics
Integrity: To be truthful to our work and to be able to keep promises that we have
made to our work
Commitment to Quality: To wilfully work for customer satisfaction with conscious

effort.
Result Orientation: To understand the goals set for self and the organization and take
ownership of goals.
Management Skills
Communication Skills
To communicate, present, be assertive and speak technical language
Collaborative Skills
To influence, form relationships, manage conflicts and negotiate
Finance Skills
To budget, forecast, understand cash flow, financial statements and business metrics
Project Management Skills
To plan and manage projects, manage risks and time, decision making and workflow
53 | P a g e
6.4 PROBLEMS/CHALLENGES FACED AND SOLUTIONS
Lack of knowledge on the function of other departments

Regardless of their work function, every other department in Petronas Lubricants
International has a quantifiable impact on the product quality. I was completely blind to this
matter, until I had posed questions to my supervisor regarding the root causes of re blending
procedure. Only then, one by one the pieces of the puzzle came together and I have come to
understand that not all but some department has significant impact on the product quality,
most notably DCS (Distributary Control System) department, as they are the one in control of
the real-time blending procedure.
Cluttered data for base oil
I encountered this problem during the data collection phase of this project. At that time, we
had just been audited for our ISO TS 16949 standard certification, all our files and documents
had been reviewed and at the end of which had been disorderly. I took the trouble of
decluttering the data, by sorting out the lab analysis reports, bulk/transfer inspection reports
for base oil samples. Due to irregular time period within the tests of base oil, I had much
trouble specifying a standard time period for the projects preliminary study. This is due to
some base oils being more in demand than others. Thankfully, the problem is resolved by
reviewing literatures, more specifically, the user manuals for statistical softwares had helped
much on that particular issue.
Time management and work-load intensity
If my time management skills were of savaging stature, I wouldnt be able to complete this
project within the specified span of time. But here is where teamwork proves its importance.
Thankfully, I have few other intern from UTP as well, to work synergistically. Myself, along
with Hafiz, Syed and Selvam would participate in each others project to provide assistance
as needed. This not only reduces the workload but also gives each us corrective feedback on
what we are doing.
54 | P a g e
References
Bajaria, D. H. (2011, December 14). American Society of Quality. Retrieved from American Society of
Quality: http://asq.org/learn-about-quality/overview.html
Minitab Assistant. (2015, November 2). Retrieved from Minitab Statistical Software :
http://support.minitab.com
Montgomery, D. (2009). Introduction to Statistical Quality Control (6th edition). Jefferson City: John
Wiley & Sons Inc.
Morris, R. (2010). The Book of Statistical Process Control (2nd edition). Cincinnati: The Zontec Press.
Mortier, R., Fox, M., & Orszulik, S. (2010). Chemistry and Technology of Lubricants (3rd edition). New
York: Springer Science+Business Media B.V.
Nelson, L. (1984). The Shewhart Control Chart--Tests for Special Causes. Journal of Quality
Technology Vol.16, 237-239.
Oakland, J. (2003). Statistical Process Control (5th edition). Oxford: Butterworth Heinemann.
55 | P a g e

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STUDENT INDUSTRIAL PROJECT REPORT

PROJECT TITLE: STATISTICAL PROCESS CONTROL

HC Supervisor Signature & Stamp

ENDORSEMENT BY HOST COMPANY SUPERVISOR

HC Supervisor Signature & Stamp

Host Company Verification Statement

Endorsement by Host Company Supervisor

List of Figures & Tables

Industrial Project Report

Chapter 1 Abstract & Introduction

Chapter 2 Background & Literature Review

Chapter 4 Result & Discussion

Chapter 5 Conclusion & Recommendations

Chapter 6 Safety Training & Value of Practical Experience

OBJECTIVES OF STUDENT INDUSTRIAL INTERNSHIP PROJECT (SIIP)

LIST OF TABLES AND FIGURES

Table of Base Oil Categorisation

Table of Constants for design of control charts for range

Sample data for E3-type base oil

Sample data for E6-type base oil

Sample data for BS-type base oil

Sample data for E4-type base oil

Sample data for M-type base oil

Control Chart selection flowchart

Example of an I-MR chart

Illustration of Test 1 and Test 2

Guide for Patter Observation in Control Charts

Process Stability Analysis for E3-type

Process Stability Analysis for E4-type

Process Stability Analysis for E6-type

Process Stability Analysis for BS-type

Process Stability Analysis for M-type

Process Capability Analysis for E3-type

Process Capability Analysis for E4-type

Process Capability Analysis for E6-type

Process Capability Analysis for BS-type

Process Capability Analysis for M-type

INDUSTRIAL PROJECT REPORT

To select and apply the process-specific tools of SPC to identify improvement

To be knowledgeable and employable in the work function of Statistical Process

To improvise / upkeep current Statistical Process Control methods at Petronas

To reduce the number of re-blending procedures via base oil monitoring

1.2 SCOPE OF STUDY

Identify variability in process and suggest solutions

To describe the major problem solving tools for quality control.

To illustrate the use of quality tools with worked examples.

To provide an understanding of how the techniques can be used together to aid

To be able identify and monitor parameters that are Critical-to-Quality (CTQ) as

1.3 PROBLEM STATEMENT

2.2CRITICAL LITERATURE ANALYSIS

Introduction to Petroleum Lubricants

Types of base oils

Viscosity Index (VI)

Poly Alpha Olefins (PAO)

All other types of synthetics

The Meaning of Quality

Fitness for purpose or use ~Juran

The total composite product and service characteristics of marketing, engineering,

Statistical Process Control

1. Flow chart - What is done?

Figure 1 Control Chart selection flowchart

(Minitab Assistant, 2015)

Setting up the I-MR chart

Data Collection for the I-MR chart