04 Handout 1
04 Handout 1
In other words:
𝜎𝜎
𝑥𝑥̅̅ = 𝜇𝜇 𝜎𝜎𝑥𝑥𝑥 =
√𝑛𝑛
�-Charts)
Setting Mean Chart Limits ( 𝒙𝒙
𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 (𝑈𝑈𝑈𝑈𝑈𝑈) = 𝑥𝑥̄̄ + 𝑧𝑧𝜎𝜎𝑥𝑥𝑥
𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 (𝐿𝐿𝐿𝐿𝐿𝐿) = 𝑥𝑥̄̄ − 𝑧𝑧𝜎𝜎𝑥𝑥𝑥
Let:
be the mean of the sample means or a target value set for the process
𝑧𝑧 be the number of normal standard deviations (2 for 95.45% confidence, 3 for 99.73%)
𝜎𝜎𝑥𝑥𝑥 be the standard deviation of the sample means
𝜎𝜎 be the population (process) standard deviation
𝑛𝑛 be the sample size
Example:
The weights of boxes of Oat Flakes within a large production lot are sampled each hour. Managers
want to set control limits that include 99.73% of the sample means. The population (process)
standard deviation (𝜎𝜎) is known to be one (1) ounce.
Solution:
∑12
𝑡𝑡=1 (𝐴𝐴𝐴𝐴𝐴𝐴 𝑜𝑜𝑜𝑜 𝑛𝑛) 192
𝑥𝑥̅̅ = = = 16 ounces.
12 12
Since the standard deviation is 99.73%, 𝒛𝒛 = 3,
1 1
𝑈𝑈𝑈𝑈𝐿𝐿𝑥𝑥̅ = 𝑥𝑥̄̄ + 𝑧𝑧𝜎𝜎𝑥𝑥𝑥 = 16 + 3 � � = 16 + 3 � � = 16 + 1 = 17 ounces.
√9 3
1 1
𝐿𝐿𝐿𝐿𝐿𝐿𝑥𝑥̅ = 𝑥𝑥̄̄ − 𝑧𝑧𝜎𝜎𝑥𝑥̄ = 16 − 3 � � = 16 − 3 � � = 16 − 1 = 15 ounces.
√9 3
17.5
17
16.5
16
15.5
15
14.5
14
1 2 3 4 5 6 7 8 9 10 11 12
Note: Because the means of recent sample averages fall outside the upper and lower control limits
of 17 and 15, we can conclude that the process is becoming erratic and is not in control.
Because process standard deviations are often not available, calculate control limits based on the
average range values rather than on standard deviations.
Example:
Super Cola’s bottled soft drinks are labeled “net weight 12 ounces.” Indeed, it has been found that
there is an overall process average of 12 ounces by taking 10 samples, in which each sample
contained five (5) bottles. The OM team wants to determine the upper and lower control limits for
averages in this process.
Weight of lightest Weight of heaviest Range (𝑹𝑹𝒊𝒊 ) =
Sample bottle in sample of bottle in sample of Average difference between
𝒏𝒏=5 𝒏𝒏=5 these two
1 11.50 11.72 11.61 0.22
2 11.97 12.00 11.99 0.03
3 11.55 12.05 11.80 0.50
4 12.00 12.20 12.10 0.20
5 11.95 12.00 11.98 0.05
6 10.55 10.75 10.65 0.20
7 12.50 12.75 12.63 0.25
8 11.00 11.25 11.13 0.25
9 10.60 11.00 10.80 0.40
10 11.70 12.10 11.90 0.40
Total 𝑅𝑅𝑖𝑖 = 2.50
Solution:
2.50
𝑅𝑅� = = 0.25 ounces.
10 samples
Values from Table 1 shows that 𝐴𝐴2 with a sample size of 5 is 0.577. Therefore,
𝑈𝑈𝑈𝑈𝐿𝐿𝑥𝑥̅ = 𝑥𝑥̅̅ + 𝐴𝐴2 𝑅𝑅� = 12 + 0.577(0.25) = 12 + 0.144 = 12.144 ounces.
𝐿𝐿𝐿𝐿𝐿𝐿𝑥𝑥̅ = 𝑥𝑥̅̅ − 𝐴𝐴2 𝑅𝑅� = 12 − 0.577(0.25) = 12 − 0.144 = 11.856 ounces.
13
12.5
12
11.5
11
10.5
1 2 3 4 5 6 7 8 9 10
Figure 2. x-Chart of Super Cola
Case:
Roy Clinton’s mail-ordering business wants to measure the response time of its operators in taking
customer orders over the phone. Clinton lists below the time recorded (in minutes) from five different
samples of the ordering process with four customer orders per sample. He wants to determine the upper
and lower range control chart limits.
Solution:
40
�=
𝑹𝑹 =8
5
Values from Table 1 shows that 𝐷𝐷4 with a sample size of 4 is 2.282. Therefore,
𝑼𝑼𝑼𝑼𝑳𝑳𝑹𝑹 = 𝐷𝐷4 𝑅𝑅� = 2.282(8) = 18.256.
Values from Table 1 shows that 𝐷𝐷3 with a sample size of 4 is 0. Therefore,
𝑳𝑳𝑳𝑳𝑳𝑳𝑹𝑹 = 𝐷𝐷3 𝑅𝑅� = 0(8) = 0.
18
16
14
12
10
0
1 2 3 4 5
Note: Since there was no sample plotted out of the control limits, the process is in control.
𝑧𝑧 be the number of standard deviations (𝑧𝑧 = 2 for 95.45% limits; 𝑧𝑧 = 3 for 99.73% limits)
𝜎𝜎𝑝𝑝 be the standard deviation of the sampling distribution
𝑝𝑝̅ (1 − 𝑝𝑝̅ )
𝜎𝜎𝑝𝑝 = �
𝑛𝑛
Case:
Clerks at Mosier Data Systems key in thousands of insurance records each day for a variety of client
firms. CEO Donna Mosier wants to set control limits to include 99.73% of the random variation in the
data entry process when it is in control.
Samples of the work of 20 clerks are gathered. Mosier carefully examines 100 records entered by each
clerk and counts the number of errors.
Solution:
𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑜𝑜𝑜𝑜 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑 80
�=
𝒑𝒑 = = .04
𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 × 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑜𝑜𝑜𝑜 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 100(20)
𝑝𝑝̅ (1 − 𝑝𝑝̅ ) . 04(1 − .04)
� 𝑝𝑝 = �
𝝈𝝈 =� = .02
𝑛𝑛 100
0.12
0.1
0.08
0.06
0.04
0.02
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Note: Only one (1) data-entry clerk (number 17) is out of control.
C-Charts
C-Charts are used to control the number of defects per unit of output. Control charts for defects are
helpful for monitoring processes in which a large number of potential errors can occur, but the actual
number that does occur is relatively small. Defects may be errors in newspaper words, bad circuits
in a microchip, blemishes on a table, or missing pickles on a fast-food hamburger.
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 = 𝑐𝑐̅ ± 3√𝑐𝑐̅
Red Top Cab Company receives several complaints per day about the behavior of its drivers. Over a
nine-day period (where days are the units of measure), the owner, Gordon Hoft, received the following
numbers of calls from irate passengers: 3, 0, 8, 9, 6, 7, 4, 9, 8, for a total of 54 complaints. Hoft wants
to compute 99.73% control limits.
Solution:
54
𝑐𝑐̅ = = 6 complaints per day
9
14
12
10
0
1 2 3 4 5 6 7 8 9
Process Capability
Process capability is the ability of the process to meet or exceed the technical specifications obtained
from customers. A process that is not capable of meeting specifications means that defective outputs are
being produced (Schroeder & Goldstein, 2018).
Case:
The design specification to meet customer expectations is 210 ± 3 minutes. So the Upper
Specification is 213 minutes and the lower specification is 207 minutes. The OM manager wants
to compute the process capability ratio.
Solution:
𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 − 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 213 − 207
𝑪𝑪𝒑𝒑 = = = 𝟏𝟏. 𝟗𝟗𝟗𝟗𝟗𝟗
6𝜎𝜎 6(.516)
Case:
You are the process improvement manager and have developed a new machine to cut insoles for
the company’s top-of-the-line running shoes. You are excited because the company’s goal is no
more than 3.4 defects per million, and this machine may be the innovation you need. The insoles
cannot be more than ±.001 of an inch from the required thickness of .250”. You want to know if you
should replace the existing machine, which has a 𝐶𝐶𝑝𝑝𝑝𝑝 of 1.0.
Solution:
𝑼𝑼𝑼𝑼𝑼𝑼𝑼𝑼𝑼𝑼 𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔 𝒍𝒍𝒍𝒍𝒍𝒍𝒍𝒍𝒍𝒍 = 0.250 + 0.001 = .251 inches.
REFERENCES
Heizer, J., Render, B., & Munson, C. (2017). Operations management: Sustainability and supply chain
management (12th ed.). Boston: Pearson Education Inc.
Schroeder, R. & Goldstein, S. M. (2018). Operations management in the supply chain: Decisions and cases
(7th ed.). New York: McGraw-Hill Education.