A SIMPLE WAY TO DIGEST SPC

Christy Morrow Loa Olafsson McNeese

Industrial Distribution Group Business Process Improvement
Belmont, NC 28012 Cypress, TX 77429
Christy.B.Morrow@IDG-Corp.com loa@bpiconsulting.com

KEY WORDS

Statistical Process Control

Training

SUMMARY

The purpose of this paper is to demonstrate a simple way of teaching an introduction to statistical process
control (SPC) to associates using peanut M&M's. This paper contains the teaching guide. This teaching guide
includes an overview of how to introduce each SPC tool, the general steps in constructing the SPC tool, and how
to use M&M's to practice the SPC tool. This training is given as part of a two-day introduction to quality to all
associates in an industrial distributor.

INTRODUCTION

Industrial Distribution Group Charlotte (IDG) is an industrial distributor based in Belmont, North
Carolina. IDG has been involved with quality since 1991. Each associate attends a two-day introduction to
quality within the first six months of his or her employment. This training introduces the associates to IDGs
quality process. This process has many components. On the soft side of quality, there is teamwork, motivation,
recognition, reinforcement, social styles and feedback. On the hard side of quality, there is ISO 9000, problem
solving methodologies, and, of course, the basic SPC tools.

The initial SPC training developed for inclusion in this introductory training involved showing examples
of each SPC tool. These tools included Pareto diagrams, process flow diagrams (PFD), histograms, cause and
effect (fishbone) diagrams, and control charts. Participants, in teams, would construct a process flow diagram and
a fishbone on some self-chosen topic. Feedback on this approach indicated that most participants found that this
approach was very boring. In addition, what they learned did not stay with them for very long on the job.

A new approach was definitely needed. This approach had to be fun and had to be something that
associates could easily remember - something like the red bead exercise. Everyone remembers this over time,
especially if they were one of the willing workers. It was decided to build this approach around peanut M&M's.

Associates leaving this training should know how to construct a process flow diagram, cause and effect
(fishbone) diagram and a Pareto diagram. They should also be able to interpret a histogram and a control chart.
More advanced SPC training is available from other sources. The M&M's approach to teach the initial SPC
training is described below.

OUTLINE OF TRAINING

Associates are taught the concept of variation before the SPC tools are introduced. The variation module
includes the following points:

The definition of quality.

Why we should focus on our processes.
What a process is.
The detection and prevention modes of operation.
 The definition of variation.
Why we must trace variation back to its source to eliminate it.
How we have handled variation in the past (specifications and standards).
What common and special causes of variation are.
The Shewhart (control chart) approach to handling variation.
The lessons of the red beads.

The red bead exercise is performed during this module on variation. This background information is
needed before moving into the SPC tools.

The following is covered for each SPC tool:

1. What the SPC tool is and looks like.

2. When to use it.
3. What you can learn with this tool.
4. How to use it.

Actual company examples of each SPC tool are included. The introduction to the SPC tool should only
take 10 to 15 minutes. The rest of the time is spent applying the tools using peanut M&M's. The training
process is described below as if you were teaching the workshop.

TRAINING PROCESS

Before starting, you need to have peanut M&M's available. Use the packages that contain about 22
M&M's per bag. You will need a bag for each person, one for each team and a couple for yourself (in case you
get hungry).

The first SPC tool introduced is the process flow diagram. The following points are made about the
process flow diagram.

What is a PFD? A PFD is a detailed picture of a process. It represents the

When do you use a PFD?
What can you learn from using a
PFD?
How do you use a PFD?
Where have we used a PFD?
logical flow of activities from the beginning of the process
to the end of the process.
You use a PFD when you want to improve the process.
This is the usually the first step in process improvement.
PFDs are also useful for training.
You gain agreement from everyone on what the steps in the
process are. You also can identify potential areas for
improvement and measurement.
You make a PFD using post-it notes following the steps in
Figure 1.
Entering an order; picking a line item in the warehouse,
changing a work procedure, handling a customer complaint

You are now ready to introduce the story of peanut M&M's. Tell the class that we are going to explore
the use of the SPC tools by learning about peanut M&M's. There is a lot of information on the web site for
1
M&M's that you can use to introduce the subject. For example:

M&M's Plain Chocolate Candies were first manufactured in 1940 when Forrest E. Mars, Sr. formed a
company in Newark, New Jersey to make chocolate candies. The original idea was to offer chocolates
that could be sold throughout the year, including summer, when many people stopped buying chocolate
 because of the heat. Many stores either discontinued stocking chocolate or greatly reduced buying
because this was before air conditioning.

M&Ms Plain Chocolate Candies are made of milk chocolate inside a thin and colorful sugar shell.
The chocolate used in M&Ms melts just like fine chocolate. This gives the product its great taste -- but
the thin and colorful sugar shell surrounds the chocolate and gives it the crunchy texture. In other words,
the milk chocolate melts in your mouth, not in your hand.

M&Ms Peanut Chocolate Candies are made of whole peanuts covered with milk chocolate inside a
thin and colorful sugar shell. The Peanut variety of M&Ms Chocolate Candies debuted in 1954.

Tell the class we are going to learn about peanut M&M's through the use of our SPC tools. Ask the
class the following questions:

Have you ever had trouble opening a bag of peanut M&M's?

Have you ever tried to open one end, could not and turned the bag around to try the other end?
Have you ever ripped the bag open only to see the peanut M&M's go everywhere, ending up on
the floor?
What is your horror story about opening a bag of M&M's?
It is evident that the people at Mars, Inc., the makers of peanut M&M's, need our help in
developing the process for opening the bag. What SPC tool can you use to describe the process of
opening a bag of peanut M&M's?

The answer to the last question, of course, is the PFD. Then:

Divide the class into teams of 4 5 Figure 1: Steps in Constructing a PFD

people to make a process flow diagram
on how to open a bag of peanut
Determine the
M&M's using the PFD in Figure 1. Decide on
Tape flip chart starting and
a process
Use the same teams throughout the SPC to study
paper on the wall ending points of
the process
exercises.
Give each team one bag to look at, but
Put the ending point on
tell them not to open the bag. As a team, sketch out
a Post-it note and place
Put the starting point on
the process step-by- a Post-it note and place
As a class, determine the starting and step, writing each step
it in the lower right-
hand corner of the flip
in the upper left-hand
on a Post-it note. corner of the flip chart
ending steps for the PFD. chart

Each team constructs a process flow

diagram using flip chart paper on the
wall with post-it notes. Draw in the lines to
Does everyone
Remind the teams that it is not a very agree on
Yes indicate the
direction of
the steps?
good PFD without a decision box in it. activity flow

When all teams are finished, have the

teams move to the PFD to their left. No
Share the PFD
Using that PFD, see if the team can open Continue to discuss with all those
closest to the
the bag of M&M's. until consensus is
reached process for more
Then have the participants return to their input

seats and debrief the exercise.

When debriefing the PFD, ask the class the following questions:

How many teams could open the bag of M&M's based on the PFD?
Did the PFD you used agree with the one your team developed?
Why are there differences in the PFDs?
 What insights into PFDs did this exercise give you?

An example of a PFD from one of the classes is given in Figure 2.

Figure 2: Process Flow Diagram for Opening a Bag of Peanut M&M's

Hold bag of No Turn bag to

Is bag
M&M's firmly in vertical
vertical?
left hand position

Yes

Firmly grasp left

Move right hand
top corner of bag
above left top
between index
corner of bag
finger and thumb

Slowly tear corner of

Fold torn part of the
bag until you reach the
bag to the right
middle of the bag

The next SPC tool introduced is the Pareto diagram. The following points are highlighted about the
Pareto diagram.

What is a Pareto diagram?
When do you use a Pareto
diagram?
What can you learn from using a
Pareto diagram?
How do you use a Pareto
diagram?
Where have we used a Pareto
diagram?
The Pareto diagram is a special type of bar chart used to
determine which problem to work on first to improve a
process. It is based on the 80/20 rule (80% of our problems
are due to only 20% of the possible causes).
You use a Pareto diagram to determine what problem to
work on first.
You can learn what the vital few problems or causes of a
problem are. This allows you to focus your time and
attention where you will get the most return.
You make a Pareto diagram using the steps in constructing
a Pareto diagram shown in Figure 3.
Reasons for credits, reasons for customer complaints,
supplier errors by supplier, reasons for computer
downtime.

Now return to the M&M's. Ask the class the following questions:

What are the colors in M&M's peanuts?

What color occurs most frequently?
How many peanut M&M's are there in one bag?
How much variation is there in the number of peanuts in one bag?
What do we need to do to answer these questions?

The answer to the last question is data. Then:

 Tell the class we are going to find
out the answers to these questions by Figure 3: Steps in Constructing a Pareto Diagram
collecting data.
Hand out one bag of M&Ms to each
Determine the Total the frequency of
participant. Tell them not to eat the problems or causes to
Select the time
period to be covered
occurrence (or cost) for each
be used in the problem during the time
M&M's until you have said it is diagram.
on the diagram.
period.
OK to do so.
Tell the class to open the bags and Draw in the bars.
record the number of different color Draw the x-axis and y-
Under the x-axis, write in
the most important
The height of the bar
will correspond to
M&Ms they have. axis putting the proper problem (largest the frequency of
units on the y-axis. frequency) first, then the occurrence for each
Then have the class return to their next most important, etc. problem on the x-
axis.
teams and construct one Pareto
diagram for the combined results of
their team. This is done by totaling Calculate the
cumulative
Plot the
cumulative
Title the graph and
include any other
the number of each color for a team. percentages. percent line. important information.

The teams should use the steps in

constructing a Pareto diagram shown in Figure 3. You should provide each team a blank Pareto
diagram with the y-axis filled in.
When each team is done, have the participants return to their seats and debrief the exercise. Tell
them they can now eat their M&Ms.

When debriefing the Pareto diagram, ask the class the following questions:

What did you learn from your Pareto diagram?

Which color appeared most frequently? Least frequently?
Why dont all the Pareto diagrams look the same?

An example of a Pareto diagram done by one team is shown Figure 4.

Figure 4: Pareto Diagram for Colors in Peanut M&Ms Bags (September 2000)

120 100% 100%

92% 90%
100 82% 80%
72% 70%
80
60%
Frequency

Percent

60 50% 50%
40%
40 36
29% 30%
26 26
20%
20 13 12 10
10%
0 0%
Brown Red Yellow Blue Green Orange

As the teams are making the Pareto diagram, take a data collection sheet and go around to each team and
record the number of red, green, yellow, brown, blue and orange M&M's in each bag. This is the data you need
to complete the rest of the SPC training. There should be one line completed on the data collection sheet for each
person in the class. An example of the data collection form is shown in Figure 5. This type of sheet is easily
setup in a spreadsheet program such as Microsoft Excel. Make copies of the completed data collection sheet for
everyone in the class.
 Figure 5: Data Collection Sheet Design for M&M's
B ag Num ber of Num ber of Num ber of Num ber of Num ber of Num ber of Total
Num ber Red Green Y ellow B rown B lue Orange Num ber
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

The next SPC tool introduced is the histogram. The following points are made about the histogram.

What is a histogram? Histograms present a picture of how the process "stacks

up" over time. Histograms illustrate how many times a
certain data value or range of data values occurred in a
given time frame.
When do you use a histogram? You use a histogram to examine the variation in a process.
What can you learn from using a You learn four things from a histogram: how much
histogram? variation there is in the process, what the mode is, what the
shape of the distribution is and the relationship of the
specifications to the data.
How do you use a histogram? You make a histogram using the steps in constructing a
histogram shown in Figure 6.
Where have we used a Freight charges, time to close a customer complaint, lines
histogram? picked per hour, number of credits per week.

Now return to the M&M's. Ask the class the following questions:

How many M&M's did you have in your bag?

Did everybody on your team have the same number of M&M's in his or her bag?
Why do you think there is not the same number each time?
What would happen to Mars, Inc. if there was too much variation in the number of M&M's in a
bag (e.g., from 2 to 40)?
There appears to be valid reasons for Mars, Inc. to control this variation. What SPC tool can you
use to determine the amount of variation present in the number of M&M's in a bag as well as
determining which value occurs most frequently and the shape of the variation?

The answer to the last question is, of course, the histogram. Then:
 Pass out a copy of the data collection sheet. Figure 6: Steps in Constructing a Histogram
Divide the class back up into their teams to
do a histogram on the total number of
Select the number of classes (K) to
M&M's in a bag (the total is on the data be used on the histogram using the
Select the time frame (history) following guidelines:
collection sheet). Have a blank histogram you are interested in and gather No. of data points K
chart ready to hand out with the x-axis and the data (at least 50 points0 50 - 100 5 - 15
101 - 250 16 - 20
y-axis already filled in. Ask the class over 250 21 - 25
simply to count how many times each
number occurred and plot that as a bar on Calculate the overall
Calculate the class width
(width of bar on the
range (R), where R equals
the chart. the maximum value minus
histogram). The class
width, h, is determined
When the histograms are complete, bring the the minimum value.
by h = R/K.
class back together and debrief.
Select the class
Round h to the boundaries so that data
When debriefing the histogram, ask the class the nearest convenient points do not fall on the
number. boundary between two
following questions: classes.

Record the number of

What is the maximum number of M&M's data points in each Plot the histogram.
class.
in a bag? The minimum?
What is the mode (the most common value)?
Label the histogram and
What does the shape of the distribution look include any other important
information such as the time
like? period covered.
What are the advantages to Mars, Inc. in
keeping the variation in the histogram at a minimum?

The combined histogram from two classes is shown in Figure 7.

Figure 7: Histogram for Number of Peanut M&M's per Bag (September/October 2000)

20
18
18
16
14
Frequency

12
10 9
8 7
6 5 5
4 3
2
2
0
20 21 22 23 24 25 26
Number per Bag

The next SPC is the cause and effect (fishbone) diagram. The following points are made about the cause
and effect diagram.

What is a fishbone diagram? A fishbone diagram is a tool that shows the relationship
between a quality characteristic (effect) and possible
sources of variation for this quality characteristic (causes).
 When do you use a fishbone
diagram?
What can you learn from using a
fishbone diagram?
How do you use a fishbone
diagram?
Where have we used a fishbone?
You use a fishbone to determine the causes of a problem.
The fishbone diagram helps organize the results of a
brainstorming session on causes of the problem. It helps
you identify the possible causes, discuss the causes and
determine the most likely cause.
You make a fishbone diagram using the steps in
constructing a fishbone diagram shown in Figure 8.
To find causes for late deliveries to customers, for
uncollected freight, for picking errors, and for credits.

Now return to the M&M's. The class is going to develop a fishbone diagram on possible causes of
variation in the number of M&M's in a bag. To do this, it is helpful to give them a little background
information on how M&M's are produced. Again, this information is available from their web site. For
example:

M&M's" begin their lives as liquid chocolate -- made with

Figure 8: Steps in
all-natural ingredients like whole milk, cocoa butter, sugar
Constructing a Fishbone
and chocolate liquor (which comes from grinding cocoa
beans). The chocolate is poured into tiny molds to create the Diagram
M&Ms chocolate centers. After they harden, they're Pinpoint the problem Write the problem or goal
moved on a conveyor belt to have their candy shells applied. you want to solve or (effect) on the right hand
the goal you want to side and draw a horizontal
The chocolates are rotated in large containers as the liquid reach. line to the left.
candy is sprayed onto them. They get several coatings to
ensure a complete and even coating on every piece. As the Select the categories for
liquid dries, it turns into M&Ms famous crunchy shell. the causes of variation in Draw in the categories.
the problem or goal.

The single-colored batches of candy are combined into

mixtures of red, yellow, blue, green, brown and orange. Brainstorm detailed Always try to branch
causes for each main further by
They're sifted to eliminate misshapen pieces, and then factor. These detailed continuously asking,
transported to the machine that will put the "m's" on their causes are written on
branches off the
"What causes
variation in this
shells. Next comes the big moment -- when the "m's" on the categories branch?"
candies are put on. A special conveyor belt moves the pieces Materials Machines Measurement

along, each in its own little indentation, past rubber etch

rollers that gently touch each candy, printing that distinctive Problem
or Goal
"m" on its shell.

A special packaging machine then weighs the M&Ms, Methods People Environment

pours the proper amount into each bag, and heat-seals each package to ensure product safety
and freshness. The finished packages are moved along a conveyor belt to a machine that
assembles the shipping cartons, fills them with the right number of packages, and seals the
cartons closed. The cartons are then loaded into trucks and transported to distribution centers,
and then to stores across the country!

Now ask the class the following questions:

Did you think that there are ever any problems with the making of peanut M&M's?
What SPC tool can be used to determine the causes of a problem

The answer to the last question is the fishbone diagram. Then:

 Divide the class back up into their teams to do a fishbone on the reasons for varying numbers of
M&Ms in a bag.
Debrief by going around the room for each team to highlight a few of their answers.

An example of a fishbone diagram from one class is given in Figure 9.

Figure 9: Fishbone Diagram on the Causes of Variation in the Number of Peanut M&M's in a Bag

People Environment Machine

Someone eats them Too hot Counter not

while packaging calibrated
Operator Clogged hole
No inspector distractions

Operator error
Different
number
Heavier of M&M's
Scales arent per bag
No data collection ingredients
calibrated

No documented Bags measured by Different sizes of

procedure weight instead of
peanuts
pieces

Methods Measurement Material

The next SPC tool is the control chart. The following points are made about control charts.

What is a control chart?
When do you use a control
chart?
What can you learn from using a
control chart?
How do you use a control chart?
Where have we used a control
chart?
A control chart is a picture of the variation in your process
over time.
You use a control chart to monitor the key variables in any
process.
You can learn if the process is in statistical control
whether there are just common causes of variation present
or if you have special causes present also.
There are five basic steps in developing a control chart:
1. Gather data.
2. Plot the data.
3. Calculate the average.
4. Calculate the control limits.
5. Interpret the chart.
Picking accuracy, service level, customer complaints, and
average time for delivery.

The details of how to construct a control chart are not covered in this introduction. The focus is on
interpreting the control charts. The following tests are taught to the class:

Points beyond the control limits.

Seven points in a row above or the below the average.
 Seven points in a row trending upward or downward.

Time is spent examining control charts to determine if the chart is in or out of statistical control. The p, c
and individuals control chart are covered. These three charts are all most distributors need.

Now, return to the M&M's.

For the entire class, determine the percentage of different colors in an average peanuts M&M's bag
(add up all of one color and divide by the total number of M&M's)? The percentages from the September 2000
class are shown below.

% Red 17%
% Yellow 25%
% Brown 20%
% Orange 6%
% Blue 19%
% Green 14%

Ask the class:

How do you think this compares to what Mars, Inc. says is in an average peanuts M&M's
bag?

Figure 10 is the % of M&M's per bag on average based on the data from the web site.

Figure 10: Color Percentages in M&M's

25%

20% 20% 20% 20%

20%

15%
Percent

10% 10%
10%

5%

0%
Blue Brown Red Yellow Green Orange
Color

Ask the class the following questions:

Can we predict, based on our sample, what a bag of peanut M&M's may contain?
If yes, what kind of SPC tool will tell us if a process is consistent and predictable?

The answer to the last question, of course, is a control chart. Then:

Divide the class back up into their teams.

 Ask each team to pick a color and use this SPC tool to determine the amount of variation present
in a bag of M&M's for that color. A blank control chart form is used for this. The average and
control limits (based on the average subgroup size) have been calculated previously using the data
collection sheet contained in Microsoft Excel .

When the exercise is done, tell the class to return to their seats and debrief the exercise.

When debriefing the control charts, ask the class the following questions:

How did the averages on the control charts compare to what Mars, Inc says should be in a bag of
M&Ms on average?
How much variation can you expect within a bag?
Are there any special causes of variation?

An example of a p control chart for one class is given in Figure 11.

Figure 11: p Control Chart: % of Yellow M&M's per Bag

50%
45% UCL
40%
35%
Percent of Yellow

30%
25%
20% Avg
15%
10%
5%
0%
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

Avg.=19.6, UCL=45.1, LCL=None Bag Number

Scatter diagrams are not covered in this overview to SPC. However, it would be easy to include scatter
diagrams and plot the number of one color of M&M's against the number of another color of M&M's in the
bags.

CONCLUSIONS

This session has introduced how to use peanut M&M's to introduce the concept of SPC. After using
this approach at IDG, the feedback from participants has been excellent. The enhancements to the SPC portion of
the training have helped evaluations improve. Whats more important, however, is that the participants have been
able to take the concepts back to the workplace and use them. We found a simple way to digest SPC.

REFERENCES
1
www.m-ms.com