7 QC Tools

E C C I n t e r n a t i o n a l 1
1. Introduction
2. What is the QC Problem Solving Approach
3. Using 7 QC Tools as Part of Problem Solving Approach
Check Sheet
Pareto Chart
Flow Chart
Cause & Effect Diagram
Histogram
Scatter Diagram
Control Chart
Structure of the seminar
4. Putting the QC Problem Solving Approach into Practice
Select Themes
Collect and Analyze Data
Analyze Causes
Plan and Implement Solution
Evaluate Effectiveness
Standardized and Establish Control
Self Evaluation and Future Plan
5. Evaluation of Presentation (Workshop)
Structure of the seminar
Quality is conformance to requirements or specifications.
(P.B. Crosby)
Quality is fitness for use. (J.M. Juran)
Quality means satisfaction of customer (Deming)
Quality is inversely proportional to variability.
Quality improvement is the reduction of variability in processes
and products.
Introduction
Introduction
Customer surveys show that only 4 out
of 100 dissatisfied customer will
complain to manufacturers. The rest will
not buy the products again.

It costs at least 5 times as much to
attract a new customer as it does to
keep an existing one.
Identify quality costs. These are cost of
nonconformance and cost of conformance, as
shown in figure in next slide.

Develop method for collecting data and
reporting on cost of quality.

Identify the most significant costs.

Identify the cause of these major costs.

Identify the solutions to reduce or eliminate
causes.

Implement solutions.
Introduction
Example of Cost of Quality Impact on
Nonconformance
Introduction

Prevention
Appraisal
Internal failures
External failures

Prevention
Appraisal
Failures

Before After
Conformance
Nonconformance
Conformance
Nonconformance
Hidden Costs of Poor Quality
Warranty

expense

Downgrading of Product

Sorting inspection

Customer allowances

Lost sales
Overtime to correct error

Process downtime

Extra inventory

Lost discount

Damaged goods

Premium freight costs

Loss of goodwill

Paperwork error

Delays
Obsolete inventory

Incorrect orders shipped

Customer return

Reject

Reprocessing

Extra process capacity

Introduction
Planning and operating of quality system.
Training and education.
Quality audit.
Quality data acquisition and analysis.
Product design verification.
Quality reporting.
Improvement projects.
Prevention Costs
Introduction
Test and inspection of purchased material.
Laboratory-acceptance sampling.
Inspection and testing.
Checking labor.
Setup for test or inspection.
Test and inspection equipment.
Quality audit.
Outside endorsements, field testing.
Marinating testing, inspection equipment.
Appraisal Costs
Introduction
Scrap
Rework
Retest
Downtime
Yield losses
Disposition
Factory contact engineering
Internal Failure Costs
Introduction
Customer complaints
Warranty
Product servicing and repair
Product liability
Product recall
Return materials
Loss of goodwill
External Failure Costs
Introduction
A matter that must be resolved
A circumstance that a person has perceived consciously
or subconsciously and that the person or the organization
to which he or she belongs must resolved
A gap between the present situation and the ideal
situation or objective.
QC Problem-Solving Approach
1. According to how they come to our attention
Everyday problems
Problems given to us to solve
Problems we have sought out or thought up
2. According to the degree of obviousness of the
cause and the countermeasures needed
Simple problems
Problems requiring high level of technology
Problems where the necessary action is
known but where care is required.
3. Problems Really Worth Solving

Who is a good problem solver
Someone who act with a specific objective in mind,
actively seek out problems to tackle, and get to grips
with them positively and decisively and put all their
energy in solving them.
Problem solving and QC Tools
A problem solving method, based on data, and is very
effective in solving problems in the workplace.
What is QC Problem Solving Approach?
The QC problem-solving approach is being used if the
following conditions are met:

1. The reason for selecting the topic are known and the control
characteristic and objectives are clear.

2. Exhaustive analysis is being performed using QC tools.

3. Analysis has revealed a convincing relationship between the
causes and the effects of the problem

4. Ingenuity and originality are being fully exercised in devising
the countermeasures.

The QC problem-solving approach make the following ten
benefits possible:

1. It enables problems to be solve more rationally, scientifically,
efficiently and effectively than any other method.

2. It heightens every persons problems-formulating and problem-
solving abilities and enables everybody to fulfill an important
role in the workplace.

3. It enables people to acquire the QC viewpoint through solving
problems.

4. It enables people to become competent in applying the QC tools
and allows them to master the scientific approach.
5 . It gives tangible benefits, mainly in terms of quality, but also in
terms of cost, delivery, safety, morale, sales, and so on.

6. It improves work practices and raises management standards.

7. It boots the leadership and management abilities of workplace
leaders.

8. It promotes the personal growth of individual workplace
members.

9. It improves workplace communication and morale and creates
cheerful, effective workplaces.

10. It stimulates QC circle and QC term activities.

Check Sheet
Pareto Chart
Flowchart
Cause & Effect Diagram
Histogram
Scatter Diagram
Control Chart
7 QC
TOOLS
7 QC TOOLS
Effective problem-solving is data driven: Data are impersonal;
opinions are not.
Experience is gained quickest by collecting & analyzing data.
The 7 QC Tools provide common methods of analysis to help
problem solving teams operate effectively.
Operations problems usually may be solved using seven tools

Note: Product process design problems often require more
advanced tools such as design of experiments.
7 QC TOOLS
Why Do We Need 7 QC Tools?
7 QC TOOLS
Check Sheet
A form, or tally sheet, used to physically track the frequency of one
or more specific events or problems (usually one or more mark per
occurrence)
DEFECT
FREQUENCY
CHECK
SUB-
TOTAL
%
DEFORMED IIII 4 6
RUST IIIII-IIIII-IIIII-IIIII-IIIII-IIIII 30 44.8
WRONG DIA. IIIII-IIIII-IIIII-IIIII-I 21 31.3
LENGTH IIIII-IIIII 10 14.9
SCRATCHED II 2 2.99
TOTAL 67 100
7 QC TOOLS
Pareto Chart
(named after Vilfredo Pareto, an Italian sociologist and economist,
who invented this method of information presentation toward the
end of the 19th century.
PARETO CHART FOR ERRORS IN
ACCOUNTING
0
20
40
60
T F O D R W O
ERRORS
N
O
.

O
F

E
R
R
O
R
S
7 QC TOOLS
Flow Chart
To allow a team to identify the actual flow or sequence of events in
a process that any product or service follows. Flowcharts can be
applied to anything from the travels of an invoice or the flow of the
material, to the steps in making a sale or servicing a product.
(also called the "Ishikawa" or "fishbone" diagram) It was developed
by Kaoru Ishikawa.
With the use of this new diagram, the user can see all possible
causes of a result, and hopefully find the root of process
imperfections.
7 QC TOOLS
Cause and Effect Diagram
PROBLEM
CAUSES
CAUSES
7 QC TOOLS
Histogram
The histogram is a bar chart showing a distribution of variables.
This tool helps identify the cause of problems in a process by the
shape of the distribution as well as the width of the distribution.
MEASUREMENT
#
7 QC TOOLS
Scatter Diagram
To study and identify the possible relationships between the
changes observed in two different sets of variables.
7 QC TOOLS
Control Chart
To monitor, control, and improve process performance over time by
studying variation and its source.
READING OVER TIME
#
UCL
LCL
x
1. Select the problem or item to be studied.

2. Select the time, period, duration of data gathering.

3. Construct the check sheet having four columns, namely:
a.) type of defects c.) sub-total
b.) frequency check d.) percentage

4. List all the types of defects.

5. Put check marks whenever a defect occurs during the
period of data gathering.

6. Get the sub-total of each item or defect by adding all the
checkmarks in each row.
7 QC TOOLS Check Sheet
Steps on Making Check sheet
CHECK SHEET
7. Add all the sub-total to get the grand total.

8. Compute for the percentage of each defect:

Sub-total
Percentage = x 100
Grand total

9. Determine the no. of rejects or defectives based on the set
standards.

10. Compute for the total percentage of each defect:

Total Rejects
Total % of D = x 100
Total no.Inspected
Steps on Making Check sheet Cont.
DEFECT
FREQUENCY
CHECK
SUB-
TOTAL
%
DEFORMED IIII 4 6
RUST IIIII-IIIII-IIIII-IIIII-IIIII-IIIII 30 44.8
WRONG DIA. IIIII-IIIII-IIIII-IIIII-I 21 31.3
LENGTH IIIII-IIIII 10 14.9
SCRATCHED II 2 2.99
TOTAL 67 100
EXAMPLES
Pareto Chart
A vertical bar chart wherein the bars
represent the components of the total
effect or problem & these are arranged
in descending order according to their
contribution to the total.

A Pareto Diagram allows data to be
displayed as a bar chart and enables the
main contributions to a problem to be
highlighted.
7 QC TOOLS Pareto Chart
Pareto Principle
Named after Italian economist Vilfredo Pareto
In any group of elements, a small
number of elements determine
most of the results.
It is also known as the 80/20 rule e.g., 20% of
the causes account for 80% of the problems.

Concept of vital few-trivial many
1. Gather facts about the problem,
using check sheets or brainstorming

2. Rank the contributions to the problem in
order of most frequent to least frequent

3. Represent the values (errors, facts, etc.)
in the form of a bar chart.
How to Construct a Pareto Chart
Accounting Period 3
Error
Week1 Week2 Week3 Week4
Total
Wrong
Number
0 1 2 0 3
Routing
1 0 1 1 3
Diary
2 1 2 1 6
Omissions
3 2 2 3 10
Typing
15 12 16 13 56
Filing
9 6 7 8 30
Others
1 0 0 0 1
Total
31 22 30 26 109
How to Construct a Pareto Chart Step 1
EXAMPLES
ERROR FREQUENCY
TYPING 56
FILING 30
OMISSIONS 10
DIARY 6
ROUTING 3
WRONG NO. 3
OTHERS 1
TOTAL 109
EXAMPLES
PARETO CHART FOR ERRORS IN
ACCOUNTING
0
20
40
60
T F O D R W O
ERRORS
N
O
.

O
F

E
R
R
O
R
S
EXAMPLES
There are 3 areas where Pareto Analysis may be used:

in separating the vital few from the useful many
problems

in selecting and prioritizing major problem areas

in identifying major effects and causes.
How it Helps?

Pareto Chart Example
EXAMPLES
Pareto Analysis
Example
Reasons Quantity % of total Cum %
Part shorts 2756 46 46
Workmanship 1004 17 63
Design 915 15 78
Part Defects 653 11 89
Wrong Part 260 4 93
Electrical 211 4 97
Others 22 1 100
Gas leak 106 2 99
Total 5927 100%
Part
short
Workman-
ship
Design Part
Defect
Wrong Part
Elec. Gas.
EXAMPLES
FLOWCHART

Flowcharts are pictorial representations of a process. By
breaking the process down into its constituent steps,
flowcharts can be useful in identifying where errors are likely
to be found in the system.
By breaking down the process into a series of steps, the
flowchart simplifies the analysis and gives some indication
as to what event may be adversely impacting the process.
Note :
You can only improve a process if everyone agrees what a
process is.
7 QC TOOLS Flow Chart
Flow chart Symbols
Symbols Meaning
Oval
The process begins or ends with this symbol
Arrow
The arrow denotes direction of the flow of
ordered events.
An
operation
is
performed
An operation is performed when some
change occurs or when you do something.
Flow chart Symbols (cont.)
Symbols Meaning
A decision point is a point in the process
where a decision is made that changes the
ordered flow of events.
The parallelogram represents a concrete
output of some form, such as, a product,
report, a paper, or, another concrete result.
This symbol represents a report, a paper, or
document.
Decision
Point
Concrete
output
or result
Document
Flow chart Symbols (cont.)
Symbols Meaning
The circle connects the flow chart to other
related, or tangential processes.
When you must continue the chart on another
page, this symbol represents the connector.
Circle
Off-page
connector
Writing Effective Flowchart
Consider having combination of these things:
1. Flow of interested items: such as from "Raw Material" to
"Work-in-Process" to "Finished Goods"
2. Flow of Information: such as "forecast information" with
"existing raw material / finished goods inventory" to
"quarterly production plan" (maybe via MRP system) and
"Monthly Production Plan / Monthly Purchasing
schedule".
3. Flow of Paperwork : such as from "Requesters
requirement" to "P.R." to "P.O." to "Vendors invoice" to
"Vendor Credit Record".
Writing Effective Flowchart (Cont.)
4. Flow of Authority delegation such as flow showing "Line
of Command".
5. Flow of Policy deployment: such as from "Customer
Expectation, Company Mission, Benchmarking
Information" to "Business Plan" to "Operational Plan" to
"Shop Floor Action Plan" and then feed back into
"Management Review" .
Guidelines for using Flow chart
Create a flow chart beginning with general operations on
the first draft.
Do not be concerned about defining the process
specifically on the first draft.
Refrain from trying to fix a process until it is completely
diagrammed and analyzed.
Review your chart. Does it show the proper flow of
information or operations; sequential and simultaneous
events; accurately capture what really happens; reflect all
major decisions?

When you have the operations and decisions and the
flow as it actually happens, you can begin to analyze the
process to determine possible improvements,
eliminating steps that are unnecessary or inefficient.
You can perform a highly detailed analysis of any
process using the flow chart. Be sure to involve people
who are actually involved in the process to get accurate
perceptions.
Guidelines for using Flow chart (Cont.)
EXAMPLES
Primary
Congested?
The
Best Way
Home
Leaving the office
Check time
and weather
Weather Clear?
Before 5 pm?
Yes
Check congestion
on primary route
Yes
Take
Alternate
A Home
Drive to
Alternate
B
Take the
Primary
Route Home
Arrive Safely
No
No
No
Yes
EXAMPLES
The cause and effect diagram is also called the Fishbone Chart
because of its appearance and the Ishikawa Chart after the man who
popularized its use in Japan. Its most frequent use is to list the cause
of particular problems. The lines coming off the core horizontal line
are the main causes and the lines coming off those are sub causes.
7 QC TOOLS Cause & Effect Diagram
Delivery Mixed-up
CAUSES
Man Machine
Method Materials
PROBLEM
CAUSE & EFFECT DIAGRAM
Does the team...

Need to study a problem/issue to determine the root cause?

Want to study all the possible reasons why a process is
beginning to have difficulties, problems, or breakdowns?

Need to identify areas for data collection?

Want to study why a process is not performing properly or
producing the desired results?

When should a fishbone diagram be used?
Basic Steps:
1. Clearly identify and define the problem, symptom, or effect for
which the causes must be identified.

2. Place the problem or symptom being explored at the right,
enclosed in a box.

3. Draw the central spine as a thick line pointing to it from the
left.

4. Brainstorm to identify the "major categories" of possible
causes (not less than 2 and normally not more than 6 or 7). If
other applicable data such as check sheets are present,
incorporate them as well.

How is a fishbone diagram constructed?
Causes Categories

Manufacturing Administration & Service

- manpower - equipment
- methods - policies
- materials - procedures
- machinery - people

How is a fishbone diagram constructed? Cont.
5. Place each of the identified "major categories" of causes
in a box or on the diagram and connect it to the central
spine by a line at an angle of about 70 degrees from the
horizontal.

6. Within each "major category" ask, "Why does this
condition exist?"

7. Continue to add clauses to each branch until the
fishbone is completed.

8. Once all the bones have been completed, identify the
likely, actionable Root Cause(s).
Some points to keep in mind:
State causes, not solutions.
Take note of causes that appear repeatedly.
Review each major cause category. Circle the most
likely causes on the diagram.
Test the most likely cause and verify with data.
Helps the group to visualize the problem
Encourages divergent thinking but along a logical path
Provides diagram for easy discussion
Based on brainstorming but more visual
Effect/
Problem
Major
Cause
Major
Cause
Major
Cause
Major Cause
e.g. Manpower
Major
Cause
1st, 2nd and 3rd
order causes
Major Cause
e.g. Machines
Major Cause
e.g. Methods
Major Cause
e.g. Materials
Uses of Cause & Effect Diagram
EXAMPLES
Example

EXAMPLES
EXAMPLES
HISTOGRAM
- A graphical representation of the frequency
distribution displaying the patterns of variation in data
7 QC TOOLS Histogram
The histogram is a bar chart showing a distribution of
variables. An example would be to line up by height a group of
people in a course.

Normally one would be the tallest and one would be the
shortest and there would be a cluster of people around an
average height.

Hence the phrase "normal distribution".

This tool helps identify the cause of problems in a process by
the shape of the distribution as well as the width of the
distribution.

Characteristics of HISTOGRAM
MEASUREMENT
#
NORMAL
MEASUREMENT
#
SKEWED
BIMODAL
MEASUREMENT
#
MIXED / ERRATIC
MEASUREMENT
#
What HISTOGRAMS can reveal
about the Process?
Variability & centering of the process in relation to
specifications.
Presence of 2 or more sources of variation
Passing of products/service which are slightly off-
specs
An erratic process
Preparing Histogram
1. Make a Frequency Distribution
DATA (mm) FREQUENCY
89 56
84 30
86 10
85 6
88 3
87 3
90 1
TOTAL 109
EXAMPLES
Preparing Histogram
2. Mark the horizontal axis with the scale of the
data values
EXAMPLES
84 85 86 87 88 89 90
EXAMPLES
Preparing Histogram
3. Mark the vertical axis with the frequency
scale
10
20
30
40
50
84 85 86 87 88 89 90
EXAMPLES
Preparing Histogram
4. Draw the height of each interval equal to the
number of data values that fall within each
interval
10
20
30
40
50
84 85 86 87 88 89 90
1. The team decides to look at the waiting time data in a
different way. They decide to create a Histogram that
represents the varying amounts of time that users wait before
being registered. To create a histogram, they must first go
back to their raw data and create a frequency table for the
waiting time data they collected.

2. According to their raw data, the following waiting periods (in
minutes) were measured for users at registration: 10, 12, 15,
18, 23, 38, 45, 48, 50, 64, 68, 72, 75, 80, 81, 84, 85, 88, 98, 110,
125, 130, 135, and 140. The team counted the number of data
points in the series, and it is 24.

Using a Histogram
EXAMPLES
3. To organize their data, they first determine the range of the
data, which is the difference between the highest and
lowest data points: 140-10=130.

4. Next, they decide on the number of categories they will use
to group the data. The manager and the team have 24 data
points, so they decide to create 5 categories.

5. They determine the interval of the categories by dividing
the range by the number of categories: 130/5=26 minutes
(rounded to 30 minutes).

6. They determine the range of each interval by starting at 0
and adding the interval each time: 30, 60, 90, 120, 150. So
the first interval will be 0-30, the second 31-60, and so on.
EXAMPLES
Now they look at their data and see how many times they observed data points
in each interval. Then they construct what is called a frequency table:

Frequency Table for Waiting Time Data

Waiting Time in Minutes Number of Users Percentage
0 30 5 21
31 60 4 17
61 90 9 37
91 120 2 8
121- 150 4 17
Total 24 100
EXAMPLES
7. Next, to create the histogram, the team draws a horizontal
axis and vertical axis: the horizontal axis (x), represents
waiting time in minutes, and the vertical axis (y) represents
the number of users.

8. For each data category, they draw a rectangle. The height of
the rectangle represents the observed number of users in
each category. Here is the histogram they create:

EXAMPLES
By looking at the data in a histogram, it is easy to see that the
majority of users wait from 61 to 90 minutes for registration
A Scatter Diagram is effectively a line graph with no line -
i.e. the point intersections between the two data sets are
plotted but no attempt is made to physically draw a line.

It examines the relationships between data collected for
two different characteristics. The analysis produced by the
Scatter Diagram is called Regression Analysis.
7 QC TOOLS Scatter Diagram
SCATTER DIAGRAM
A scatter diagram is composed of a horizontal axis containing the
measured values of one variable and a vertical axis representing the
measurements of the other variable.
Variable 1
Cause
Variable 2
Effect
X axis
Y axis
Use of Scatter Diagram

1. Validating "hunches" about a cause-and-effect relationship
between types of variables
(e.g.: Is there a relationship between the production
speed of an operator and the number of defective parts
made)

2. Displaying the direction of the relationship (positive,
negative, etc.)
(e.g.: Will increasing assembly line speed increase or
decrease the number of defective parts made?
1. Collect two pieces of data (a pair of numbers) on a student,
process, or product. Create a summary table of the data.

2. Draw a diagram labeling the horizontal and vertical axes.
Cause" variable be the horizontal (X) axis and the Effect"
variable be vertical (Y) axis. The values should increase up
the vertical scale and toward the right on the horizontal
scale.

3. Plot the data pairs on the diagram by placing a dot at the
intersections of the X and Y coordinates for each data pair.

4. Interpret the diagram.
Construction of Scatter Diagram
Data patterns may be:

Positive relationship
Negative relationship
No relationship between the two variables.
Interpreting Scatter Diagram
Positive Relationship - indicated by an ellipse of points that
slopes upward; increase in the cause variable also
increases the effect variable.

Negative Relationship - indicated by an ellipse of points that
slopes downward; increase in the cause variable results in
a decrease in the effect variable.

diagram with a cluster of points such that it is difficult or
impossible to determine whether the trend is upward
sloping or downward sloping indicates that there is no
relationship between the two variables.
Beware of "saturated" points. When more than one data point falls
on the same location some computer programs only plot one
("saturated") point.

Make each axis the same scale ("square grid")

Graph all the data. The graph should cover the complete range of
both variables, even if the collected data may not cover it.

Keep it simple. Again, the enhancements are great and can add a
wealth of information to a graph, but, sometimes making more
graphs is just as effective and much more readable.

Be consistent. If you are comparing multiple graphs scaling must be
consistent. In order not to distort slopes and linearity.
Dos and Donts
Example of a Scatter Diagram

CONCEPTS: Shewhart (1925):
All Manufactured Parts are subject to have variation.
This variation may be separated according to cause:
Chance Causes (Common)
Assignable Causes (Special)
Assignable causes may be detected and corrected easily.
Chance causes are inherent in the process.
This does not mean variation due to chance causes cannot
be reduced. This is a challenge!
Control charts provide a simple means to separate chance
and assignable causes.
7 QC TOOLS Control Charts
CONTROL CHARTS
Four Stages in the Use of Control Charts
1. Perform process capability study

2. Establishing process control

3. Evaluating impact of process improvement

4. Maintaining process control at improved levels
A stable manufacturing process is a process in statistical
control. Its variability can be predicted over time.
Equipment, materials, operators and management policies
determine the stability of a manufacturing process.
A process is either in control or out of control. When a
process is in control, it eventually goes out of control. Once
a process is out of control, it may remain in this state until a
corrective action is taken.
SPC is used to detect as soon as possible if a process is in
control: when to take action and when to leave it alone.
Process Stability
In control (No shift)
Out of control (Process shift)
About Variation
Possible variability
- machine operation - operator control
- tool dimensions - environment
- setup - other sources
- materials
Chance causes (common causes, random causes)
- Variability due to something inherent to a process.
Assignable causes (special causes)
- Variability caused by some identifiable reasons.
Chance Causes Assignable Causes
85% 15%
Management MGT & Workers
Control chart is a device for describing in a precise
manner what is meant by statistical control. Its uses
are:

1. It is a proven technique for improving productivity.
2. It is effective in defect prevention.
3. It prevents unnecessary process adjustments.
4. It provides diagnostic information.
5. It provides information about process capability.
Uses of Control Charts
Benefits of Control Charts
Properly used, control charts can:
Be used by operators for ongoing
control of a process

Allow the process to achieve
Higher quality
Lower unit cost
Higher effective capacity

Provide common language for
discussing the performance of
the process
Distinguish special from common
causes of variation, as a guide to
local action or action on the
system
Help the process perform
consistently, predictably, for
quality and cost
Continued
CHART & ANALYZE
1. COLLECTION
- Gather data and plot on chart

2. CONTROL
- Calculate trial control limits
from process data
- Identify special causes of variation
and act upon them.

3. ANALYSIS and IMPROVEMENT
- Quantify common cause variation;
take action to reduce it.
1. Establish an environment suitable
for action

2. Define the process

3. Determine characteristics to be
managed. Considerations:
The customers needs
Current and potential problem areas
Correlation between characteristics
Preparation for Use of Control Charts
4. Define the measurement system
5. Minimize unnecessary variation
Preparation for Use of Control Charts (Cont.)
Variable Control Chart
- measurable in continuous scale
- actual values of measurement

Attribute Control Chart
- countable binary results (pass / fail)
discrete measurements
Types of Control Chart
VARIABLE CONTROL CHARTS
X R Chart : Plots the average and range
X S Chart : Plots the average and standard
deviation
X Rm Chart : Plots the average and moving
range
Xm-Rm : plots the moving-average and
moving range
7 QC TOOLS Control Charts Variable Control Chart
TYPE OF
CHART
WHY USE? SUBGROUP SIZE
RECOMMENDED
SUBGROUP SIZE
X / R
- easy to calculate and
relatively efficient
2 to 7 4 to 5
X / S
- more sensitive to
detect small variations
in the process average
8 15
X / Rm
-measurements are
expensive or destructive
to take
- output at any point in
time is relatively
homogeneous
- 1
- grouped to form
moving range between
2 to 4
check variability

over time

Xm / Rm
- similar to X/Rm except
that process average
trend needs emphasis
than point to point
fluctuation
- 1
- grouped to form
moving range and
moving average
between 2 to 4
check variability

over time
Average and Range Chart
Steps in Constructing an x-R Chart
1. Collect Data
2. Calculate xs
3. Calculate x
4. Calculate R
5. Calculate R
6. Calculate the
Control Lines

7. Draw the
Control Lines
8. Plot the points
9. Write the
necessary items
PLANT: DEPARTMENT: OPERATION: DATECONTROL LIMITS CALCULATED: SPECIFICATION: PART NO.:
MACHINENO.: DATES: CHARACTERISTIC: SAMPLESIZE(n): PART NAME:
AVEX' = 25.6 X'UCL = 27.8 X'LCL = 23.4 AVERAGES (X BAR CHART)
SUBGROUP
SI ZE
2 1.88 * 3.27
3 1.02 * 2.57
4 0.73 * 2.28
5 0.58 * 2.11
6 0.48 * 2.00
AVER = 3.8 RUCL = 8.0 RLCL = 0.0 RANGES (R CHART) 7 0.42 0.08 1.92
8 0.37 0.14 1.86
9 0.34 0.18 1.82
10 0.31 0.22 1.78
FORM ULAS:
n = SAMPLESIZE
k = NO. OFDATES
X' = (X1 + X2 + X3 + X4 + X5) / n
R = Xmax - Xmin
AVEX' = (X' i + X' 1 +..+ X' k) / k
Date 6/ 1 6/ 2 6/ 3 6/ 4 6/ 5 6/ 6 6/ 7 6/ 8 6/ 9 6/ 10 6/ 11 6/ 12 6/ 13 6/ 14 6/ 15 6/ 16 6/ 17 6/ 18 6/ 19 6/ 20 6/ 21 6/ 22 6/ 23 6/ 24 6/ 25 6/ 26 6/ 27 6/ 28 6/ 29 6/ 30 AVER = (Ri + R1 + ..+ Rk) / k
X1 25.0 21.0 26.0 25.0 26.0 29.0 26.0 29.0 27.0 28.0 29.0 25.0 28.0 29.0 28.0 26.0 29.0 28.0 23.0 29.0 25.0 20.0 25.0 24.0 26.0 29.0 23.0 23.0 24.0 23.0 X' UCL = AVEX' +
X2 26.0 23.0 25.0 25.0 25.0 27.0 25.0 29.0 28.0 25.0 28.0 24.0 28.0 28.0 29.0 25.0 28.0 29.0 21.0 26.0 25.0 21.0 26.0 25.0 25.0 25.0 20.0 24.0 25.0 25.0 X' LCL = AVEX' -
X3 28.0 22.0 28.0 26.0 24.0 28.0 28.0 29.0 29.0 26.0 27.0 26.0 26.0 25.0 29.0 24.0 28.0 27.0 21.0 25.0 26.0 21.0 20.0 26.0 26.0 27.0 20.0 25.0 25.0 24.0 RUCL =
X4 29.0 25.0 29.0 25.0 28.0 29.0 29.0 28.0 25.0 24.0 28.0 25.0 25.0 24.0 28.0 26.0 27.0 29.0 24.0 24.0 21.0 23.0 24.0 25.0 24.0 28.0 21.0 26.0 22.0 25.0 RLCL =
X5 27.0 24.0 27.0 24.0 25.0 26.0 28.0 25.0 26.0 28.0 25.0 25.0 24.0 26.0 27.0 28.0 26.0 24.0 25.0 25.0 22.0 24.0 25.0 24.0 28.0 29.0 21.0 21.0 24.0 26.0
X' 27.0 23.0 27.0 25.0 25.6 27.8 27.2 28.0 27.0 26.2 27.4 25.0 26.2 26.4 28.2 25.8 27.6 27.4 22.8 25.8 23.8 21.8 24.0 24.8 25.8 27.6 21.0 23.8 24.0 24.6
R 4.0 4.0 4.0 2.0 4.0 3.0 4.0 4.0 4.0 4.0 4.0 2.0 4.0 5.0 2.0 4.0 3.0 5.0 4.0 5.0 5.0 4.0 6.0 2.0 4.0 4.0 3.0 5.0 3.0 3.0
0.0
5.0
10.0
15.0
Range RLCL AVER
15.0
20.0
25.0
30.0
35.0
X' X'UCL X'LCL AVEX'
R
E
A
D
I
N
G
S
ACTION
ON SPECIAL CAUSES
- ANYPOINTOUTSIDEOF THECONTROL
LIMITS
- A RUN OF7 POINTS ALL ABOVEOR ALL
BELOWTHECENTRAL LINE(AVEX' OR AVER)
- A RUN OF7 POINTS UP OR DOWN
- ANYOTHER OBVIOUSLYNON-RANDOM
PATTERN
A 2
D 3 D 4
A2(AVER)
A2(AVER)
D4(AVER)
D3(AVER)
THE PROCESS M UST BE I N
CONTROL BEFORE CAPABI LI TY
CAN BE DETERM I NED
Subgroup Size (n)
Number of Subgroups (k)
X and R Chart
1. Gather data: n - subgroup size
k - number of subgroups
x - subgroup average
= x
1
+ x
2
+ x
3
+ + x
n

n
For each subgroup, calculate:
R = x
max
- x
min

Steps in constructing X and R Chart
(Detailed)
2. Select Scale
For X Chart:
The difference between the highest and lowest values on
the scale should be at least 2 times the difference between
the highest and lowest of the subgroup averages( X )
For R Chart:
Values should extend from a lower value of zero to an
upper value about 2 times the largest range(R) encountered
during the initial period
3. Plot the Averages and Ranges
4. Calculate the average range ( R ) and the
process average ( X )
R = R
1
+ R
2
+ R
3
++ R
k

k
X = X
1
+ X
2
+ X
3
++ X
k

k
5. Calculate the Control Limits
UCL
R
= D
4
R
LCL
R
= D
3
R
UCL
X
= X + A
2
R
LCL
X
= X - A
2
R
n 2 3 4 5 6 7 8 9 10
D
4
3.27 2.57 2.28 2.11 2.00 1.92 1.86 1.82 1.78
D
3
* * * * * 0.08 0.14 0.18 0.22
A
2
1.88 1.02 0.73 0.58 0.48 .42 0.37 0.34 0.31
6. Draw lines for the Averages and the Control
Limits on the Charts
UPPER CONTROL LIMIT
LOWER CONTROL LIMIT
AVERAGE
7. Interpret for Process Control
Process is out of control if any of the following is present:
Points beyond the control limits
Runs
Obvious non-random patterns
8. Find and Address Special Causes (Range Chart)
9. Recalculate Control Limits
- repeat Process 5 to 7 until all special causes
are eliminated
10. Calculate the Standard Deviation
s =

( X
i
- X )
2

n - 1

11. Calculate the Process Capability
Z = SL - X
s
Where:
SL - specification limit
limits determined externally by
management, customer, or
engineering groups
C
pk
= Z
3
Z - distance of the process average from the
specification limits in standard deviation
units
C
pk
- Capability Index
Required:

Z 3
C
pk
1
ATTRIBUTE CONTROL CHART
P Chart : measures the fraction of rejected
items in a group of items being inspected
nP Chart : Plots the actual number rejected in
a lot inspected
c Chart : Plots the number of defects in an
inspecton
u Chart : plots the number of defects per unit
7 QC TOOLS Control Charts Attribute Control Chart
TYPE OF
CHART
WHY USE? SUBGROUP SIZE
p
- fraction or proportion. defective
is reported per inspection lot
-- large enough to have 5 defectives
-- may vary 25%
-- may not be constant
np
- actual number of defective is
reported per constant subgroup
size
-- large enough to have 5 defectives
-- constant

c
-defects are scattered through a
continuous flow of product and
where average rate of defects are
expressed per product
- defects from many different
sources as measured in a single
inspection unit.
- constant
u
- similar to c except that number
of defects that occur in various
units is expressed on a per unit
basis.

-- may vary 25%
Control Chart for Attributes
1. Gather data: n - subgroup size (50 or more)
k - number of subgroups
For each subgroup, calculate:
p Chart for Proportion Nonconforming
p = np
n Where:
p - proportion nonconforming
n - number of items inspected (subgroup size)
np - no. of nonconforming items found
2. Select Scale
Horizontal Scale = plot the subgroup identification
(hour, day, etc.)
Vertical Scale = plot the proportion (or percent)
nonconforming
= should extend from zero to 2 times the
highest proportion nonconforming
3. Plot the Proportion Nonconforming
4. Calculate the Process Average Proportion
Nonconforming
p = n
1
p
1
+ n
2
p
2
++ n
k
p
k

n
1
+ n
2
++ n
k

5. Calculate the Control Limits
UCL
p
= p + 3
p ( 1 -p)
n

LCL
p
= p - 3
p ( 1 -p)
n

* if LCL
p
is negative, there is no lower control limit
6. Interpret for Process Control
Process is out of control if any of the following is present:
Points beyond the control limits
Runs
Obvious non-random patterns
7. Find and Address Special Causes
8. Recalculate Control Limits
- repeat Process 5 to 7 until all special causes
are eliminated
9. Calculate the Process Capability
Process Capability = 1 - p
After six months of utilizing the new flexible scheduling
system, Mrs. Alvarez wants to see if client waiting times are
"under control," that is, are the variations due to an error in
the clinic system, or due to regular human error? She decides
to create an X-R (average-range) control chart.

First, she needs to obtain a sample. She decides to measure
the waiting time of three randomly selected users per day
during four days.
SAMPLE PROBLEM Variable Control Chart
Waiting Time of Users in the Santa Rosa Health Center
Following data were Obtained:
Observations User 1 User 2 User 3 Average Range
Day 1 60 42 48 50 18
Day 2 40 34 46 40 12
Day 3 45 52 38 45 14
Day 4 38 40 42 40 4
Average 43.75 12
Mrs. Alvarez calculates the average waiting time and the
range (the difference between the maximum and the
minimum waiting time) for each day. Then she calculates the
average waiting time for the 3 days, which is 43.75 minutes,
and the average of the range of waiting times, which is 12
minutes.

Next, Mrs. Alvarez consults the "Table of the Constant A."
Since she made three observations per day, she looks at the
Constant A next to the number 3:

Number of
Observations
Constant A
2 1.880
3 1.023
4 0.729
5 0.577
6 0.483
7 0.419
8 0.373
9 0.337
10 0.308
>10 0.3
Table of the Constant A
She will use this number, 1.023, during her final calculations.
Finally, she calculates the Upper Control Limit (UCL) and the
Lower Control Limit (LCL) using the following formulas:
UCL = average waiting time + Constant A + average range
= 43.75 + 1.023 x 12 = 56.03 min.

LCL = average waiting time - Constant A + average range
= 43.75 - 1.023 x 12 = 31.47 min.

Now, the team creates a graph, using the upper control limit,
the lower control limit, and the four averages. The control
graph looks like this:

Since no measurements fall outside the limits, the process is "under control."
Typical groups in which members interact with each
other face to face.
OTHER QC TECHNIQUES Group Decision-Making
An idea generation process that specifically
encourages any and all alternatives, while withholding
any criticism of those alternatives.
A group decision-making method in which individual
members meet face-to-face to pool their judgments in
a systematic but independent fashion.
A meeting which members interact on computers,
allowing for anonymity of comments and aggregation
of votes.

W. Edwards Deming in the 1950's proposed that business
processes should be analyzed and measured.

He recommended that business processes be placed in a
continuous feedback loop so that managers can identify and
change the parts of the process that need improvements.

As a teacher, Deming created a (rather oversimplified)
diagram to illustrate this continuous process, commonly
known as the PDCA cycle for Plan, Do, Check, Act:
OTHER QC TECHNIQUES The PDCA (Plan-Do-Check-Act)
The Deming Cycle
PLAN
Design or revise business process
components to improve results

DO
Implement the plan and measure its
performance

CHECK
Assess the measurements and report
the results to decision makers

ACT
Decide on changes needed to improve
the process.
Deming's PDCA
cycle can be
illustrated as
follows:

The P-D-C-A cycle, promoted by Deming, is
the basis for continuous improvement.

Problems are prioritized and addressed one
at a time, and a solution is implemented on a
small scale first and verified that it works
before implementing on a large scale.

After the most important problem has been
solved, the group moves on to the problem,
cause or solution with the next highest priority
and follows the same cycle.

This repetitive enactment of the cycle
creates a spiral of improvement that can
continue indefinitely.
The P-D-C-A Cycle
Identify problem.
Develop plan for
improvement.
Implement plan
on test basis
Is the plan working?
Institutionalize
improvement.
Continue cycle.
Plan
Do
Check
Act
Quality Control Circles (QCC) was conceived in Japan in
1961 under the leadership of Dr. Kaoru Ishikawa and the
Union of Japanese Scientists and Engineers. It integrates
behavioral theories and the quality control sciences
introduced by Drs. Deming and Juran. The first QCC was
registered in May 1962. The QCC spread in other Asian
countries in the late 1960s and thereafter in other
countries.
QC CIRCLE
It is voluntary in nature
Small in size, usually not more than 10.
Within the department / section where they belong
Performs problem solving activities continuously.
The circle follows a a step by step sequence in problem solving
and utilizes QC Techniques.
The circle tackle problems within its control only
A part of the company wide total quality control activities of self
development, and improvement.
QC CIRCLE
Self Development
Closer Relationship
Meaningful Workshop
Satisfaction
Recognition
Benefits that can be Gained from QC Circle
QC CIRCLE
QC circles can work on problems in which they are having
difficulty, controllable and they are willing to solve.
Housekeeping
Accident and Sickness Prevention
Waste Reduction
Product Quality Improvement
Improvement of Service Delivery
Problems that QC Circles Can Work On
QC CIRCLE
Work Simplification / Methods Improvement
Energy Conservation
Preventive Maintenance
Improvement on Customer Relations
Teambuilding
Problems that QC Circles Can Work On
QC CIRCLE
Observation
Listing all problems
Analysis of problems on the list
Understand each problem
Select the problem to be solved
Decide on the problem the members are willing to solve
Make the problem very clear and specific
How to Select a Team Selection
QC CIRCLE
Are all members fully understand and are willing to solve the
problem?
Are all members agree that desired result is achievable?
Is the problem within the control of the Circle?
How much is the cost will be?
How long will it take to solve the problem?
Can the problem selected contribute to company /
departmental goal.
Guide in Problem Selection
QC CIRCLE
1. Select a Theme
7. Self Evaluation
and Future Plan
6. Standardize
Solution and
Establish Control
5. Evaluate Effects
4. Plan and Implement
Solution
3. Analyze Causes
2. Collect and
Analyze Data
7 QC STEPS
The 7 QC Steps process is a structured problem
solving approach for improving weak processes.
This approach is known as reactive improvement.
The 7 QC Steps is easy to understand and learn,
easy to use, and easy to monitor.
7 QC Steps
7 QC STEPS
The 7 QC steps process is structured as follows:

Step 1: Select a Theme. In this step, the weakness in the
process or the problem to be solved is clarified in a
theme statement. A Flowchart, a Theme Selection
Matrix, or a Cause & Effect Diagram is used as a tool
in this step.

Step 2: Collect and Analyze Data. This step focuses facts
about the problem and discovers what types of
problems occur frequently. When collecting data, you
must think of all possible causes. Check sheets and
Pareto Diagrams are the tools most often used.
7 QC STEPS
Step 3: Analyze Causes. With sufficient data from step 2,
the root cause, or fundamental cause, is found by
constructing a Cause & Effect Diagram.

Step 4: Plan and Implement Solution. In this step, you
brainstorm for ideas that are causing the problem and
develop a solution that prevents the root cause from
recurring. Then, you implement an adjustment to the
process. The 5W's and 1H Matrix (What, When,
Where, Who, Why and How Matrix) is used to develop
a plan.
7 QC STEPS
Step 5: Evaluate Effectiveness. You evaluate the
effectiveness of implemented solution to make sure the
solution worked and does not have unacceptable results
from the comparison of data, before and after the
implementation of the solution. In this step, comparative
Pareto Charts and Graphs are frequently used to identify
the results.

Step 6: Standardize Solution and Establish Control. A
standardized solution is confirms that the old process is
replaced with an improved process and indicates that the
solution is workable. A flowchart is most often used.
Control Standards such as QC Process Charts,
Inspection Standards and other SOP are also need to be
revised.
7 QC STEPS
Step 7: Self Evaluation and Future Plan. In this step,
you consider what the team's accomplishment was
in the first 6 steps and recommend a weakness to
work on next.
7 QC STEPS
Suppose a fast food restaurant wants to
improve the quality of their product.
#1 Check Sheets
Check sheets are used to record & compile data
to study a process (e.g., defects, complaints, etc.)
Example: Check Sheet for Fast Food Restaurant
SAMPLE PROBLEM USING THE 7 QC TOOLS
1. Begin with the customer. Collect data on
customer complaints via check sheets.
Check Sheet Results
#2 Pareto Analysis
n Ranking of data by importance in
descending frequency.
n Purpose: quickly identify high impact areas
Restaurant Complaints
#3 Flow Chart
n A diagrammatic picture showing all steps or
stages in a process.
n Flow charts help facilitate a greater
understanding of the entire process by
identifying where problems have occurred or
may occur.
#4 Cause & Effect Diagram
n used to sort out potential causes of problems.
n organizes theories by cause-and-effect relationships.
n Tip: Highlight likely root causes (circles or boxes)
Cause-and-Effect Example
Histogram Data
n Table provides data from a study of time under heat
lamp for 30 sandwiches at each of the 3 stores.
n Samples were taken randomly.
Sample A B C
21. 2.9 2.7 4.3
22. 4.4 5.2 3.0
23. 4.8 2.1 3.3
24. 3.7 1.9 3.0
25. 4.3 4.5 4.3
26. 4.6 2.9 3.8
27. 4.4 2.2 4.0
28. 3.8 3.1 2.8
29. 3.3 3.5 2.5
30. 5.2 4.3 2.6
Sample A B C
1. 5.1 3.9 4.1
2. 5.2 4.2 3.3
3. 4.9 4.9 3.3
4. 2.8 2.1 3.0
5. 4.3 3.6 3.9
6. 6.4 2.5 2.7
7. 3.7 3.2 4.8
8. 5.9 4.6 4.4
9. 5.9 4.6 4.5
10. 4.7 3.7 2.6
Sample A B C
11. 4.5 2.9 3.0
12. 6.6 3.2 4.2
13. 3.6 3.8 4.6
14. 3.7 2.5 4.5
15. 3.4 3.9 5.1
16. 2.9 4.6 3.6
17. 6.6 3.6 3.0
18. 7.0 4.2 2.4
19. 5.2 3.2 3.8
20. 3.8 3.1 3.1
This histogram indicates a possible bi-modal
distribution in time under heat lamp.
n Note, this company also collects data by store.
n If we take the previous histogram and stratify the data by
store, we discover the source of the bi-modal distribution.
n Which store has the most problems?
Stratification Analysis

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