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[object Object],INTRODUCTION TO  SPC (Statistical Process Control)
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],F EXERCISE IMAGINE FOR ONE BRIEF MOMENT THAT EACH OF THE ONE HUNDRED AND FORTY-ONE WORDS OF THIS PARAGRAPH IS A SEPARATE COMPONENT FORM A FIRST SHIFT RUN OF FOURTEEN-INCH FLYWHEELS.  YOU ARE ONE OF FIVE INSPECTORS PERFORMING THE FINAL INSPECTION OF THSES FINSISHED COMPONENTS WHICH WERE PRODUCED ON FOUR FAIRLY SMALL DIAL INDEX MACHINES THAT ARE NOT BEING CONTROLLED BY THE USE OF STATISTICAL TECHNIQUES.  AS CAN BE EXPECTED FROM AN OPERATION OF THIS NATURE, THERE ARE A NUMBER OF DEFECTIVES  COMPONENTS BEING MADE.  EACH WORD THAT CONTAINS AN F REPRESENTS A DEFECTIVE COMPONENT.  HOW MANY OF THE DEFECTIVES ARE YOU ABLE TO FIND? CHECK AGAIN AND INSPECT FOR THE PRESENTS OF F'S.  WRITE YOUR FINAL COUNT IN THE BOTTOM LEFT HAND CORNER OF THIS PAGE.  THIS EXAMPLE SHOULD GIVE YOU A FAIR IDEA OF HOW RELIABLE 100% INSPECTION CAN BE.
[object Object],Draw sample Meets spec. ? ACCEPT REJECT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],Lower Spec. A B What's the difference between ball A and B? Why is the spec there and not somewhere else? What is the purpose of the spec?
[object Object],Great!!! I'm in spec.
[object Object],Hey!!!!! But I'm in spec.
[object Object],Every specification has a TARGET. The upper and lower specification is meant to serve as a  guide line.  What you  really want is the stuff that hits the TARGET.
[object Object],TARGET= .25 UPPER SPEC = .27 LOWER SPEC = .23 SCREW TOLERANCE = +/- .02"
[object Object],TARGET= .26 UPPER SPEC = .28 LOWER SPEC = .24 NUT TOLERANCE = +/- .02"
[object Object],UPPER SPEC = .28 LOWER SPEC = .24 TARGET= .25 UPPER SPEC = .27 LOWER SPEC = .23 SCREW NUT SCREW = 26.8" NUT = 24.8" COMBINED TOLERANCE
[object Object],[object Object],[object Object],LEANRING 1
Average Income Country X Country Y 10,000 Rs/Month 11000 Rs/Month Which country is ECONOMICALLY more stable ???  Example
Country X Country Y 8000 46000 12000 3000 10000 1000 9000 3000 11000 2000 Avg.  10000 11000 Std dev. 1414 17516
[object Object],[object Object],[object Object],[object Object],LEANRING 2
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],What is SPC?
[object Object],[object Object],[object Object],[object Object],WHY SPC?
[object Object],SPC, how does it work  Ooopps tough to understand……
[object Object],SPC quantifies  variability and allows you to determine if a process changed. It is simple and easy to understand.
[object Object],size DISCUSSION ON VARIABILITY lower spec. Upper spec.
[object Object],size lower spec. Upper spec.
[object Object],size lower spec. Upper spec.
[object Object],size lower spec. Upper spec.
[object Object],[object Object],size lower spec. Upper spec.
[object Object],[object Object],size If the source of the material is stable, over a long  time period, a bell like shaped curve will emerge  from the inspection.  The Bell shape curve is also commonly referred to as the  Normal distribution Upper spec.
Plot HISTOGRAM for following DATA What is HITOGRAM? Why we need it to understand? What is this  BELL  shape and normal distribution?
[object Object],LOCATION SPREAD LEANRING 3 LOCATION:   The central tendency it is usually expressed as the AVERAGE SPREAD: The dispersion it is usually expressed as SIGMA
Distribution Patterns Saw tooth Positively Skewed Negatively Skewed Sharp Drop Twin Peak Bell Shape
[object Object],[object Object],A B
[object Object],[object Object],A B
[object Object],B Average different Spread different
[object Object],LEANRING 4 sigma
[object Object],32% 14% 14% 2% 2% +/- 1 sigma +/- 2 sigma +/-3 sigma
[object Object],32% 14% 14% 2% 2% 64.25% 96.45% 99.73% +/-3 sigma +/-2 sigma +/-1 sigma
34.13% 34.13% 13.6% 13.6% 2.14% 2.14% +/- 1 sigma +/- 2 sigma +/-3 sigma 68.26% 95.45% 99.73% LEANRING 5
[object Object],14  2 32 gallons IF the upside-down bell curve could hold 100 gallons of water..... 96% 99.7% +/-3 sigma +/-2 sigma +/-1 sigma
[object Object],[object Object],[object Object],[object Object],[object Object],Properties of a normal model curve  :- LEANRING 6
Sources of Variation Common Cause Special Cause
[object Object],PREDICTION If only common cause of variation are present, the  output of a process forms a distribution that is stable over time and is  PREDICTABLE. LEANRING 7
[object Object],[object Object],[object Object],[object Object],[object Object],SO WHAT?
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Why Average ???? LEANRING 8
The Central Limit Theorem The Central Limit Theorem states that the mean values of samples taken from ANY distribution tend towards a normal distribution as the sample size increases .  This computer demonstration provides convincing evidence of this surprising fact. Thus, taking samples from a distribution and averaging the observations within the samples effectively eliminates the effect of the underlying distribution, however 'non-normal' it may be. This demonstration works with two symmetrical distributions: one is triangular and has some features in common with the normal distribution while the other is a 'V'-shaped notch - almost the total opposite of the type of distributions we see in applied statistics.  Both  distributions have a mean of 50.00.  We can model these distributions by supposing we have two packs  containing cards numbered 1 - 99.  The first pack would have:  One 1, two 2s .... fifty 50s, forty nine 51s, .... two 98s, and one 99  While the second would have: Fifty 1s, forty nine 2s ... two 48s, one 50, two 51s, .....  fifty 99s The computer draws cards according to these distributions for sample sizes of 1 (to verify the concept of 'distribution'), 2, 5 and 10.  When the sample size is 1, we are really confirming that the data 'in the long run' will behave like the distribution - which is in itself an important statistical lesson. The case {Sample Size = 2} is particularly interesting.  It is not easy to to 'outguess' the computer and predict the shape of the lower curve; however, once the curve is seen, it can be readily explained in terms of basic probability. Although the second case is very extreme (literally!) compared with the first, it eventually falls into a 'normal' shape although it takes longer to do so. LEANRING 9
The Arithmetic mean : Most of the time when we refer to the average of something we are talking about arithmetic mean only. To find out the arithmetic mean , we sum the values and divide by the number of observation. Advantages  : it's a good measure of central tendency.It easily understood by most people Disadvantages  :- Although the mean is reliable in that it reflects all the values in the data set, it may also be affected by extreme values that are not representative of the rest of the data.
The Median : The median is a single value from the data set that measures the central item in the set of numbers.Half of the item lie above this point and the other half lie below it. We can find median even when our data are qualitative descriptions. For example we have five runs of the printing press the results of which must be rated according to the sharpness of the image. Extremely sharp, very sharp, sharp slightly blurred,  and very blurred. Mode :- The mode is a value that is repeated most often in the data set. Infect it is the value with highest frequency.
[object Object],23 24 26 27 1 2 3 4 5 Average Range How was our process behaving over time?  Let's calculate the average and range of each set average = (23+23+24+26+27)/5 =  24.6 Range = 27 - 23  = 4 CONTROL CHART TEMPLATE
[object Object],23 23 24 26 27 24.6 4 22 25 25 26 27 25.0 5 23 23 24 27 27 22 24 24 25 26 24.8 24.2 4 4 Plott the average and  the range on the control chart template Notice the center and the spread of the process varies much like when we looked at the histogram 2 3 4 5 avg Min. Max Range average range CONTROL CHART TEMPLATE
[object Object],x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x-bar Chart If you thought of the control charts as a stretched out slinky, it would look like a histogram if you collapsed it.  Since the control chart is nothing more than a histogram expressed over time, what we said about SIGMA applies to the control chart as well. LEANRING 9
[object Object],14  2 32 gallons IF the upsidedown bell curve could  hold 100 gallons of water..... Reminder, what we said about sigma 96% 99.7% +/-3 sigma +/-2 sigma +/-1 sigma
[object Object],x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x +/- 3 sigma We can calculate the sigma of all the points in the  control charts and draw lines at +/- 3 sigma.  Since  99.7% of the vaules are suppose to fit in the line we can say that a process has changed if it one of  the points are outside the +/- 3 sigma lines.  We will call the +/-3 sigma lines the  CONTROL LIMIT
[object Object],In the past it was important for operators and auditors to be able to calculate the control limit.  Today, in most manufacturing plants the computer calculates the  control limits and people interpret them.  This makes sense because computers are excellent at calculating number.  However, computers are not  too intelligent.  They can not reason and make good decisions.  People are very capable of reasoning and making good decision.  However, people need good information.  SPC is a tool that converts process data to information allowing people to focus on what they do best.
Control Limits for  Average and Range Chart R = R+R+R+…R 1  2  3  n n UCL = X + A 2 R CL = X LCL = X -  A 2 R UCL = D 4 R CL = R LCL = D 3 R LEANRING 10 X = X+X+X+…X 1  2  3  n n
[object Object],WE USE STATISTICS EVERYDAY
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],Bill, Nice guy.  works in the accounting department.  He lives 10 miles away from work.  In order to get to work he takes the interstate I-95 and gets off at exit 23 and zips right into work.  He never hits  any trafficand there is no traffic light between his home and work. He's never late to work. Judge Lance Ito.  Nice guy.  Works in Los Angeles.  He lives 5 miles from work.  In order to get to work he has to get through 5 traffic light onto interstate I-5(which is frequently backed up)  to downtown Los Angeles.  There he has to find parking and then fight the reporters on his way into the court to preside over the O.J. Simpson trial.  He is late to work quite frequently.
[object Object],Bill Arrives to work between 7:48 to 7:56 AM. Judge Lance Ito Arrives to work between 7:48 to 8:06 AM 8:06 8:12 8:00 7:54 7:48 7:42 Late to work Arrival time at work Early  to  work
[object Object],Bill Judge Ito 8:06 8:12 8:00 7:54 7:48 7:42 Late to work Arrival time at work Early  to  work If we thought of being early or late to work as our specification, then we can say that  Bill IS capable  meeting the specification.  Judge Ito IS NOT capable  of meeting the specification.
[object Object],Bill Arrives to work between 7:48 to 7:56 AM 99.7% of time.  6 sigma = 7:56 -7:48 = 8 min. Judge Lance Ito Arrives to work between 7:48 to 8:06 AM 99.7% of time.  6 sigma = 8:06 - 7:48 = 18 min. Tolerance = late - early = 8:00 - 7:46 = 14 minutes Capability =  tolerance   if greater than 1 we say it  6 sigma  is capable of meeting spec.  Bill's Capability = 14 / 8 = 1.75  (Bill is capable) Ito's Capability = 14/18  = .78  (Ito IS NOT capable)
LEANRING 11 Cp = Tol band / 6 sigma Cpk = Min of (Avg - LSL) or (USL - Avg) / 3 sigma    (R abr) R d 2 =    (n-1) = √ (x-x ) + (x-x ) + … (x-x ) (n - 1) _ _ _ 1 2 n 2 2 2
[object Object],The control limits can be drawn around both the average (x-bar) and the Range chart.  Therefore,  you can detect several different types of change.  x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x +/- 3 sigma +/- 3 sigma X-bar chart Range chart
[object Object],Process spread remains same while center  increases let's see what  that looks like in a control chart
[object Object],+/- 3 sigma X-bar chart Range chart Spread remains same Center shifts up
[object Object],Process spread increase while center remain  same let's see what  that looks like in a control chart
[object Object],+/- 3 sigma X-bar chart Range chart Spread increased Center remain same ?
[object Object],+/- 3 sigma X-bar chart Range chart Spread increased Center remain same
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],LEANRING 12
[object Object],target TREND Rule of thumb, if there are 7 points in a row all higher or lower than the preceeding point.  In this case from the start of the  trend to the time a point went outside the control limit there were 12 samples.  An experinced operator/auditor would begin looking for assignable cause much sooner.
[object Object],target SHIFT Rule of thumb, if there are 6 consequetive points above or below the  target line, a process shift has occurred. In this case, because the  process shifted to somewhere between the target and the upper control limit, there is a good chance that a point will be outside the control limit  soon.  In the above example, it took about 11 points to go outside the control limit.  An experienced operator/auditor would have looked for assignable cause sooner.
[object Object],Small shift ..  in Center while Spread same in Spread while Center same  Large shift in Center up or down while Spread same Spread increase while Center same Center slowly trending up or down while spead same Center shift up or down at the same time the spread increase
[object Object],[object Object],PROCESS CAPABILITY
[object Object],8:12 8:00 7:54 7:48 7:42 Lower spec. Upper spec. Cp Cpk TARGET Cp Cpk.....  Say what?
[object Object],8:12 8:00 7:54 7:48 7:42 Lower spec. Upper spec. Cpk TARGET Cpk  =  Target - lower spec  or  Upper spec - Target 3 sigma  3 sigma Cpk looks at the likelihood of making product outside either lower or upper specification Cpk
[object Object],LEANRING
[object Object],x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x UPPER SPEC LOWER SPEC Each point is an average of five indivdual points x  x x =   x x x Each red x represents five individual reading (blue x) that are spread out more than the average (red x) Control chart will not differentiate a capable and a not capable process.  it will only signal change. The control chart does not care what the spec is. UpperControl Limit LowerControl Limit x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x
[object Object],machine capability Upper spec Lower spec If your process is not capable, then there is a good  chance that some of your sample will have values outside the specification.  Chances are if you are not running SPC control chart, you may be tempted to  make an adjustment.  Let's see what would happen. LEANRING x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x
[object Object],machine capability Upper spec Lower spec x x xx =   x x If by the luck of the draw you get a reading below the  lower specification even though the process has not  changed, and adjusted the machine up.  The distribution will shift up. Sample Adjust machine up LEANRING x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x
[object Object],machine capability Upper spec Lower spec After the distribution shifted up, there is now a much greater chance of getting a value outside  upper specification.  So the machine is adjusted  down, slightly more than it was adjusted up. Chance of out of spec is now = 40% Chance of out of spec was = 10% Adjust machine down LEANRING x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x
[object Object],The adjustments continues until, the actual products  produced varies much more than the capability of the  machine.  LEANRING 13 x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Actual range of product produced machine capability Upper spec Lower spec
[object Object],machine capability Upper spec Lower spec If you are controlling your process using SPC Method, even if your process is not capable, no adjustment would take place.  Therefore, the product you produced is what the machine is capable of and not more. x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x  x x =   x x x UpperControl Limit LowerControl Limit LEANRING 14 x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x
ATTRIBUTE CONTROL CHARTS Variable  Sample Fixed Sample Defects Defectives
Measurement System Analysis (MSA)

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  • 13. Average Income Country X Country Y 10,000 Rs/Month 11000 Rs/Month Which country is ECONOMICALLY more stable ??? Example
  • 14. Country X Country Y 8000 46000 12000 3000 10000 1000 9000 3000 11000 2000 Avg. 10000 11000 Std dev. 1414 17516
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  • 26. Plot HISTOGRAM for following DATA What is HITOGRAM? Why we need it to understand? What is this BELL shape and normal distribution?
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  • 28. Distribution Patterns Saw tooth Positively Skewed Negatively Skewed Sharp Drop Twin Peak Bell Shape
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  • 35. 34.13% 34.13% 13.6% 13.6% 2.14% 2.14% +/- 1 sigma +/- 2 sigma +/-3 sigma 68.26% 95.45% 99.73% LEANRING 5
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  • 38. Sources of Variation Common Cause Special Cause
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  • 42. The Central Limit Theorem The Central Limit Theorem states that the mean values of samples taken from ANY distribution tend towards a normal distribution as the sample size increases . This computer demonstration provides convincing evidence of this surprising fact. Thus, taking samples from a distribution and averaging the observations within the samples effectively eliminates the effect of the underlying distribution, however 'non-normal' it may be. This demonstration works with two symmetrical distributions: one is triangular and has some features in common with the normal distribution while the other is a 'V'-shaped notch - almost the total opposite of the type of distributions we see in applied statistics. Both distributions have a mean of 50.00. We can model these distributions by supposing we have two packs containing cards numbered 1 - 99. The first pack would have: One 1, two 2s .... fifty 50s, forty nine 51s, .... two 98s, and one 99 While the second would have: Fifty 1s, forty nine 2s ... two 48s, one 50, two 51s, ..... fifty 99s The computer draws cards according to these distributions for sample sizes of 1 (to verify the concept of 'distribution'), 2, 5 and 10. When the sample size is 1, we are really confirming that the data 'in the long run' will behave like the distribution - which is in itself an important statistical lesson. The case {Sample Size = 2} is particularly interesting. It is not easy to to 'outguess' the computer and predict the shape of the lower curve; however, once the curve is seen, it can be readily explained in terms of basic probability. Although the second case is very extreme (literally!) compared with the first, it eventually falls into a 'normal' shape although it takes longer to do so. LEANRING 9
  • 43. The Arithmetic mean : Most of the time when we refer to the average of something we are talking about arithmetic mean only. To find out the arithmetic mean , we sum the values and divide by the number of observation. Advantages : it's a good measure of central tendency.It easily understood by most people Disadvantages :- Although the mean is reliable in that it reflects all the values in the data set, it may also be affected by extreme values that are not representative of the rest of the data.
  • 44. The Median : The median is a single value from the data set that measures the central item in the set of numbers.Half of the item lie above this point and the other half lie below it. We can find median even when our data are qualitative descriptions. For example we have five runs of the printing press the results of which must be rated according to the sharpness of the image. Extremely sharp, very sharp, sharp slightly blurred, and very blurred. Mode :- The mode is a value that is repeated most often in the data set. Infect it is the value with highest frequency.
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  • 51. Control Limits for Average and Range Chart R = R+R+R+…R 1 2 3 n n UCL = X + A 2 R CL = X LCL = X - A 2 R UCL = D 4 R CL = R LCL = D 3 R LEANRING 10 X = X+X+X+…X 1 2 3 n n
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  • 58. LEANRING 11 Cp = Tol band / 6 sigma Cpk = Min of (Avg - LSL) or (USL - Avg) / 3 sigma  (R abr) R d 2 =  (n-1) = √ (x-x ) + (x-x ) + … (x-x ) (n - 1) _ _ _ 1 2 n 2 2 2
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  • 79. ATTRIBUTE CONTROL CHARTS Variable Sample Fixed Sample Defects Defectives