EXPLANATION FOR SLIDE # 1

Statistical Process Control or SPC is a process used to monitor standards by taking measurements and
corrective action as a product or service is being produced. It is used at BetzDearborn, at Arnold Palmer
Hospital, at GE, and at Southwest Airlines to achieve quality standards.

A process is said to be operating in statistical control when the only source of variation is common
(natural) causes. The process must first be brought into statistical control by detecting and eliminating
special (assignable) causes of variation. Once the special causes were eliminated, its performance will
become predictable, and its ability to meet customer expectations can be assessed.

EXPLANATION FOR SLIDE # 2

As I have said earlier, a process must be brought into statistical control by detecting and eliminating
special (assignable) causes of variation, in order to be operating in statistical control the only source of
variation must be the common or natural causes. So as to detect and distinguish between natural and
assignable variations, Walter Shewart developed a tool called Control chart to separate the two
variations.

Natural variations are the variability that affects every production process to some degree and is to be
expected; also known as common cause. While Assignable variation in a process can be traced to a
specific reason. Factors such as machine wear, misadjusted equipment, fatigued or untrained workers,
or new batches of raw material are all potential sources of assignable variations.

Natural and assignable variations distinguish two tasks for the operations manager. The first is to ensure
that the process is capable of operating under control with only natural variation. The second is, of
course, to identify and eliminate assignable variations so that the processes will remain under control.

The variables of interest here are those that have continuous dimensions. They have an infinite number
of possibilities. Examples are weight, speed, length, or strength. Control charts for the mean, x or x -bar,
and the range, R , are used to monitor processes that have continuous dimensions.

The x -chart tells us whether changes have occurred in the central tendency (the mean, in this case) of a
process. These changes might be due to such factors as tool wear, a gradual increase in temperature, a
different method used on the second shift, or new and stronger materials.

The R -chart values indicate that a gain or loss in dispersion has occurred. Such a change may be due to
worn bearings, a loose tool, an erratic flow of lubricants to a machine, or to sloppiness on the part of a
machine operator. The two types of charts go hand in hand when monitoring variables because they
measure the two critical parameters: central tendency and dispersion.

EXPLANATION FOR SLIDE # 3

Control charts for x and R do not apply when we are sampling attributes, which are typically classified as
defective or non-defective. Measuring defectives involves counting them (for example, number of bad
lightbulbs in a given lot, or number of letters or data entry records typed with errors), whereas variables
are usually measured for length or weight. There are two kinds of attribute control charts: (1) those that
measure the percent defective in a sample—called p -charts—and (2) those that count the number of
defects—called c -charts.
A tool called a run test is available to help identify the kind of abnormalities in a process. In general, a
run of 5 points above or below the target or centerline may suggest that an assignable, or nonrandom,
variation is present. When this occurs, even though all the points may fall inside the control limits, a flag
has been raised. This means the process may not be statistically in control.

EXPLANATION FOR SLIDE # 4 is already in the slide.

EXPLANATION FOR SLIDE # 5

Process capability is the ability to meet design specifications, which are set by engineering design or
customer requirements.

There are two popular measures for quantitatively determining if a process is capable: process capability
ratio ( Cp ) and process capability index ( Cpk ).

Process capability ratio is a ratio for determining whether a process meets design specifications; a ratio
of the specification to the process variation. For a process to be capable, its values must fall within
upper and lower specifications while the process capability index, measures the difference between the
desired and actual dimensions of goods or services produced.