HOT SHOT PLASTICS COMPANY

CASE ANALYSIS
OM-2 GROUP PRESENTATION
In God we trust.. all others must bring data

Group 06
Ankita Biyani
Nimeet Dhokai
Nimit Khurana
Pavan Kumar Dhulipala
Prabhat Kumar
Rizina Patrawala

(PGP-11-014)
(PGP-11-038)
(PGP-11-039)
(PGP-11-044)
(PGP-11-047)
(PGP-11-063)

STATISTICAL PROCESS CONTROL

Pioneered by Walter A. Shewhart in early 1920s.
Later Edwards Deming applied SPC methods in US
during WW-II, improving quality in manufacture of
munitions.
SPC can be thought of as the application of
statistical methods for the purposes of quality
control and improvement.

FORMS OF VARIATIONS
Random Variability

Non- Random Variability

Also known as Common

Causes/natural causes.

Also known as Assignable/ special

causes.

It is inherent in a process.

It is due to identifiable factors.

It can be eliminated only through

improvements in the system.

It can be modified through operator

or management action.

IMPLEMENTING SPC
Identify defined processes
Identify measurable attributes
of the process
Characterize natural variation
of attributes

Track process variation

IMPLEMENTING SPC (CONTD.)

If the process is in control, continue

to track

If the process is not in control:

Identify assignable cause
Remove assignable cause
Return to Track Process variation

CONTROL CHARTS
X-bar & Rcharts
Variables

X-bar & scharts

Control
Charts

Defectives
(p & np-chart)
Attributes
Defects
(c & u-chart)

X-BAR AND R-CHARTS

X Chart Control Limits
Central Line = X
Upper Control Limit = X + A2* R
Lower Control Limit = X A2*R

R-Chart Control Limits

Central Line = R
Upper Control Limit = D4*R
Lower Control Limit = D3*R

PROCESS IN CONTROL
No sample points
outside control limits

Most of the points near

to the central line

PROCESS IN
CONTROL

Equal number of points

above and below the
central line

Points appear to be
randomly distributed

APPLICATIONS

Hospitals
Grocery Stores
Catalogue-Order Companies
Airlines
Fast Food Restaurants

CASE ANALYSIS
Sample
Number
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

Obs 1

Obs 2

Obs 3

Obs 4

X-bar

Range

27.34667
27.79695
33.53255
37.98409
33.82722
29.68356
32.62640
30.29575
28.43856
28.27790
26.91885
28.46547
32.42677
28.84273
30.75136
31.25754
31.24921
31.41554
32.20230
26.91603
35.05322
32.12483
30.09172
30.04835
29.30273

27.50085
26.15006
29.32971
32.26942
30.32543
29.56677
26.32030
30.52868
30.48251
33.94916
27.66133
28.29937
26.10410
30.51801
32.99922
24.29473
28.57954
35.80049
32.02005
29.77775
32.93284
29.32853
32.43938
27.23709
30.83735
Mean

29.94412
31.21295
29.70460
31.91741
28.38117
27.23077
32.07892
24.43315
32.43083
30.47406
31.46936
28.99441
29.47718
32.23614
28.08452
35.46477
35.00865
33.60909
32.71018
33.92696
31.51641
30.99709
27.84725
22.01801
30.82735

28.21249
31.33272
31.05300
29.44279
33.70124
34.00417
36.17198
26.85241
30.76162
28.87447
29.66928
31.14511
37.20079
30.47104
26.19981
28.41126
31.23591
27.82131
29.37620
33.78366
27.73615
31.39641
30.70726
28.69624
31.90733

28.25103
29.12317
30.90497
32.90343
31.55877
30.12132
31.79940
28.02750
30.52838
30.39390
28.92971
29.22609
31.30221
30.51698
29.50873
29.85708
31.51833
32.16161
31.57718
31.10110
31.80966
30.96172
30.27140
26.99992
30.71869
30.40289

2.59745
5.18266
4.20284
8.54130
5.44605
6.77340
9.85168
6.09553
3.99227
5.67126
4.55051
2.84574
11.09669
3.39341
6.79941
11.17004
6.42911
7.97918
3.33398
7.01093
7.31707
2.79630
4.59213
8.03034
2.60460
5.93216

CONTROL LIMITS
X-bar Chart
Upper Control Limit for X = X + A2*R

= 30.40289 + 0.73 * 5.932155

34.73336

Lower Control Limit for X= X - A2*R

= 30.40289 - 0.73 * 5.932155

26.07242

Upper Control Limit for R = D4*R

= 2.28 * 5.932155

13.52531

R Chart

Lower Control Limit for R = D3*R

= 0 * 5.932155
Process
is in control and stable.

After adding twelve additional samples,

Sample
Number
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

Obs 1
27.34667
27.79695
33.53255
37.98409
33.82722
29.68356
32.6264
30.29575
28.43856
28.2779
26.91885
28.46547
32.42677
28.84273
30.75136
31.25754
31.24921
31.41554
32.2023
26.91603
35.05322
32.12483
30.09172
30.04835
29.30273
31.6583
34.4643
41.34268
29.4731
25.4671
46.25184
35.4475
34.55143
43.43549
37.05298
38.57292
27.0305

Obs 2
27.50085
26.15006
29.32971
32.26942
30.32543
29.56677
26.3203
30.52868
30.48251
33.94916
27.66133
28.29937
26.1041
30.51801
32.99922
24.29473
28.57954
35.80049
32.02005
29.77775
32.93284
29.32853
32.43938
27.23709
30.83735
29.7833
28.1848
39.5459
25.3784
34.8516
34.71356
38.83289
33.8633
37.36371
42.47056
39.06772
33.6397

Obs 3
29.94412
31.21295
29.7046
31.91741
28.38117
27.23077
32.07892
24.43315
32.43083
30.47406
31.46936
28.99441
29.47718
32.23614
28.08452
35.46477
35.00865
33.60909
32.71018
33.92696
31.51641
30.99709
27.84725
22.01801
30.82735
31.8791
37.76689
29.5571
25.0438
30.1915
41.41277
33.0886
35.18869
38.85718
35.90282
32.2209
26.6306

Obs 4
28.21249
31.33272
31.053
29.44279
33.70124
34.00417
36.17198
26.85241
30.76162
28.87447
29.66928
31.14511
37.20079
30.47104
26.19981
28.41126
31.23591
27.82131
29.3762
33.78366
27.73615
31.39641
30.70726
28.69624
31.90733
33.9125
39.21143
32.5735
24.0035
31.6222
44.63319
31.6349
42.31515
39.25132
38.21905
33.202
42.79176

X-bar
28.2510325
29.12317
30.904965
32.9034275
31.558765
30.1213175
31.7994
28.0274975
30.52838
30.3938975
28.929705
29.22609
31.30221
30.51698
29.5087275
29.857075
31.5183275
32.1616075
31.5771825
31.1011
31.809655
30.961715
30.2714025
26.9999225
30.71869
31.8083
34.906855
35.754795
25.9747
30.5331
41.75284
34.7509725
36.4796425
39.726925
38.4113525
35.765885
32.52314
31.85029

Range
2.59745
5.18266
4.20284
8.5413
5.44605
6.7734
9.85168
6.09553
3.99227
5.67126
4.55051
2.84574
11.09669
3.39341
6.79941
11.17004
6.42911
7.97918
3.33398
7.01093
7.31707
2.7963
4.59213
8.03034
2.6046
4.1292
11.02663
11.78558
5.4696
9.3845
11.53828
7.19799
8.45185
6.07178
6.56774
6.84682
16.16116
6.83608

NEW CONTROL LIMITS

Many points in X-bar and R-charts out of

control limits and skewed distribution of
points with regards to central line

Iteration1: Since samples 29,31,34 and 35 are outside

limits in X-bar chart, we remove them and get the new
control limits:

X-bar Chart
Upper Control Limit for X = X + A2*R

= 31.29076 + 0.73 * 6.76629

36.23015

Lower Control Limit for X= X - A2*R

= 31.29076 - 0.73 * 6.76629

26.35137

Upper Control Limit for R = D4*R

= 2.28 * 6.76629

15.42714

Lower Control Limit for R = D3*R

= 0 * 6.76629

R Chart

Sample 33 of Xbar chart needs

to be removed in
2nd iteration.

Iteration2: after omitting sample 33, we get

X-bar Chart
Upper Control Limit for X = X + A2*R

= 31.12860 + 0.73 * 6.71362

36.02954

Lower Control Limit for X= X - A2*R

= 31.12860 - 0.73 * 6.71362

26.22766

Upper Control Limit for R = D4*R

= 2.28 * 6.71362

15.30705

Lower Control Limit for R = D3*R

= 0 * 6.71362

R Chart

The X-bar points are

within the control
limits but the range
chart has one point
outside UCL, i.e.
sample 32, which
needs
to
be
removed in the next
iteration.

Iteration3 : Sample 32 removed to bring all samples

within the allowable limits of Range chart.

X-bar Chart
Upper Control Limit for X = X + A2*R

= 30.92754 + 0.73 * 6.39426

35.59535

Lower Control Limit for X= X - A2*R

= 30.92754 - 0.73 * 6.39426

26.25973

Upper Control Limit for R = D4*R

= 2.28 * 6.39426

14.57891

Lower Control Limit for R = D3*R

= 0 * 6.39426

R Chart

Although the R
chart
has
all
samples
within
limits now, one
sample
has
crossed UCL in Xbar chart which
needs
to
be
catered to. This is
done in Iteration 4.

Iteration 4: Deleting sample 28 to make the process in

control.

X-bar Chart
Upper Control Limit for X = X + A2*R

= 30.76109 + 0.73 * 6.20835

35.29319

Lower Control Limit for X= X - A2*R

= 30.76109 - 0.73 * 6.20835

26.22899

Upper Control Limit for R = D4*R

= 2.28 * 6.20835

14.15504

Lower Control Limit for R = D3*R

= 0 * 6.20835

R Chart

The
process
has
finally got all the
samples within the
limits, suggesting that
it is stable and in
control.
Although
the
procedure for X-bar
and R-charts seems to
be fairly simple, the
iterations for deleting
the samples outside
the
limits
and
readjusting is time
consuming.

THANK YOU !!!!