Capability Analysis

An Introduction to
Statistical Process Control
LL UL

6σ
 Course Content

• Course Objectives
• What is Variation?
• Seeing Variation
• Measuring Variation
• Normal Distribution
• Cp and Cpk Calculations
• Pp and Ppk Calculations
• Examples
• Review
• Additional Resources
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 Course Objectives

Upon completion of this course,

participants should be able to:

• Understand why measuring variation is important

• Calculate mean, standard deviation, Cp and Cpk
• Estimate the percent of data beyond the
specifications
• Interpret the results of a capability analysis
• Understand how to improve the capability of a
product or process

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 What is variation?

Variation
the differences that exist
between individual units of a
product or process

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 What is variation?

There is variation in everything…

• No two processes, individuals,
machines, products, are exactly the
same
• Variation can be measured, if
measurement unit is small enough
• Individual values can not be predicted
– However, group of values create a
predictable pattern

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 Real Life Examples

Grocery bill each week

$43.72
$39.89
$57.02
$49.12
$50.54
$46.33
$45.21

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 Real Life Examples

Calories eaten per day

2285
2107
1998
2767
2488
2610
2575

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 Seeing variation

In order to understand variation, need

to know what the middle value is

Two ways of measuring the “middle” or

center of a data set

Average (Mean)

Median

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 Average

Average (or mean) is the weighted

middle of the data set
Sum of data set
Average =
sample size of data set

Calculate average for data set: 1, 6, 12, 10, 8, 22, 7

Sum of measurements = 1+6+12+10+8+22+7 = 66
Sample size = 7
Average = 66/7 = 9.43

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 Median

Median is the center of the data set

• First sort data (smallest to largest)
1, 6, 12, 10, 8, 22, 7  1, 6, 7, 8, 10, 12, 22
• Find the point where half the data points are on each side
1, 6, 7, 8, 10, 12, 22
Median = 8

• For even number data sets, find point between two values and
average the two values (8.5 is middle of 7 and 10)
1, 6, 7, 10, 12, 22
Median = 8.5

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 Skewed Distributions

mean = median

mean median
median mean Average class shoe size
– No skew

Time to drive to work – Skewed right Hours of sleep per week – Skewed left

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 Average vs Median

Average/mean = uses all data points for

calculation, which is a better indication of
the true center of the data, but is influenced
by outliers

Median = only uses some of the data for

calculation and rest is wasted, but not
influenced by outliers

Summary: Use the average, except when you

have skewed data (time studies, housing
prices) or extreme outliers in the data

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 Measuring Variation

To quantify the amount of variation in a

data set, there are two statistics you
can use:

Range

Standard Deviation

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 Range

Range (R)= the difference between the

smallest and largest value in the data
set

1, 6, 12, 10, 8, 22, 7

Largest = 22
Smallest = 1
Range = 22 – 1 = 21

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 Standard Deviation

Standard Deviation (σ) = the average

difference of each value from the mean

Std dev =
√ Σ(x - )2
n -1

It is a measure of how spread apart each

individual data point is from the mean

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 Standard Deviation

• Calculate Standard Deviation of the sample

1, 6, 12, 10, 8, 22, 7
• Calculate average = 66/7 = 9.43
• Add up the differences between each value and the
mean, and square that difference
1 2 3 4
Value Mean Value - Mean Sq Diff
1 9.43 -8.43 71.065
6 9.43 -3.43 11.765
12 9.43 2.57 6.605
10 9.43 0.57 0.325
8 9.43 -1.43 2.05
22 9.43 12.57 158.0
7 9.43 -2.43 5.905

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 Standard Deviation

• Sum up the squared differences

71.065 + 11.765 + 6.605 + 0.325 + 2.05 + 158.0
+ 5.905 = 255.715
• Average the squared differences by dividing by
(sample size – 1)
= 255.715 / 6 = 42.62
• Take square root of the squared differences

sample standard deviation (s) = √ (42.62) = 6.53

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 Range vs Standard Deviation

Range = easy to calculate, but only uses two

data values in the sample, less accurate

Standard Deviation = more difficult to

calculate, but it uses all data values. Can be
influenced by outliers

Summary = Use standard deviation in most

cases. Range can be used if sample size is
less than 5

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 Test Your Knowledge

Quiz
12 21 13
Calculate the mean,
median, range and standard 14 18 20
deviation of the following 22 17 24
data set
19 16 22
15 15 14
15 13 15
11 15 18
20 14 16
16 16 19
17 12 14

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 Answers

Mean = 493/30 = 16.43

Median = 16
Range = 24 -11 = 13
Standard Deviation =

√ (311.367 29) = 3.276

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 Real Life Examples

Calories eaten per day, taken 2285

2107
2417
2177
for 40 days 1998 2351
2767 2203
2488 2599
2610 2042
2575 2287
2366 2073
1899 2383
2832 2197
2431 2312
2898 2541
2619 2305
2975 1821
2402 2379
2630 2300
2254 2912
2411 2232
1800 2000 2200 2400 2600 2800 3000 2518 2065
2523 2420

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 Normal Distribution

This “bell shaped” pattern is called a NORMAL or GAUSSIAN

distribution.

It is one of the most common distributions you will observe,

especially when you plot random variation in a process, product,
machine, etc.

1800 2000 2200 2400 2600 2800 3000

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 Normal Distribution

• Data can be fitted to a normal distribution using the mean and

standard deviation from the sample
• mean indicates the location of the highest point on the bell
curve
• standard deviation helps describes the width of the bell
curve
mean = 2390

1800 2000 2200 2400 2600 2800 3000

1 Std dev = 280

6 Std dev

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 Capability Analysis

Capability is the measure of how well

the variation fits within the required
specification or tolerance

There are two measures that describe

the capability…

Cp Cpk

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 What is Cp?

Cp is a measure of how well the variation in

the data can fit within the tolerance limits
If the variation (6σ) is less If the variation (6σ) is greater
than the tolerance limits, you than the tolerance limits, you
have acceptable variation have unacceptable variation

LL UL LL UL

6σ 6σ

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 How to calculate Cp

allowable

USL - LSL
Cp =
6s
actual
Where …

USL = Upper Specification Limit

LSL = Lower Specification Limit
s = standard deviation of sample

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 Example of calculating Cp

Take a sample of 40 data points from a

process (“calories eaten” example)
2431 2285 2312 2417
2898 2107 2541 2177
2619 1998 2305 2351
2975 2767 1821 2203
2402 2488 2379 2599
2630 2610 2300 2042
2254 2575 2912 2287
2411 2366 2232 2073
2518 1899 2065 2383
2523 2832 2420 2197

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 Example of calculating Cp

Calculate the standard deviation (s)

from the sample
s = 270.29
Determine spec limits (Doctor recommends
between 1800 and 3800 calories per day)

USL - LSL 4000 - 1800 2200

Cp = = =
6s 6*(270.29) 1621.74

Cp = 1.36 GOOD!

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 What does Cp look like?

Cp can be stated as the number of times you could fit your

distribution (variation) within your specification limits

2200
LSL = 1800 USL = 4000

1621
Therefore, you could fit the variation (6-sigma width) of this data 1.36
times within 1800 and 4000

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 Cp Examples

LL UL

GOOD

Cp = 2.0
LL UL

Cp = 0.75
BAD

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 Cp Examples

LL UL

GOOD

Cp = 1.5
LL UL

Cp = 1.5
GOOD

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 What is Cpk?

Cpk measures how well the variation in the

data actually fits within the tolerance limits
If the variation (6σ) is less If the variation (6σ) is less than
than the tolerance limits AND the limits AND/OR the average is
the average is centered , you too far from center, you have
have acceptable capability unacceptable capability
LL UL LL UL

6σ 6σ

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 How to calculate Cpk

USL -   - LSL
Cpk (upper) = Cpk (lower) =
3s 3s

Cpk = minimum of Cpk (upper) and Cpk (lower)

Where …

USL = Upper Specification Limit

LSL = Lower Specification Limit
 = average of sample
s = standard deviation of sample*
* Will discuss this calculation at end of training
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 Example of calculating Cpk

Take the previous “calories eaten”

example of 40 data points
 = 2390
s = 270.29

4000 - 2390 2390 - 1800

Cp (upper) = Cp (lower) =
3*(270.29) 3*(270.29)
Cp (upper) = 1610/810 = 1.99 Cp (lower) = 590/810 = 0.73

Cpk = 0.73 BAD!

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 What does Cpk look like?

Cpk “penalizes” the potential capability for not being

centered between the limits

LSL = 1800 USL = 4000

penalty

Cpk = 0.73 Cp = 1.36

actual capability potential capability

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 Summary of Cp and Cpk

Cp tells you if the Cpk deducts from the Cp

process variation value depending on how
COULD fit well enough far the average is from
within the limits, if the center
centered

Variation Centering Result

Cp Cpk
GOOD
GOOD GOOD
maintain
BAD
GOOD BAD
recenter
BAD
BAD GOOD
reduce variation
BAD
BAD BAD
reduce and recenter
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 Cpk Examples

LL UL
GOOD
Cp = 2.0
Cpk = 2.0
LL UL

Cp = 0.75
Cpk = 0.75
BAD

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 Cpk Examples

LL UL
BAD
Cp = 1.5
Cpk = 0.8
LL UL

Cp = 1.5
Cpk = 1.5
GOOD

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 Applying Cp and Cpk

Cp and Cpk = probability of failure

The smaller the Cp or Cpk, the higher the

chance (probability) of falling outside of
specifications due to random variation
Cp Probability of Failure Defects per Million
0.33 31.73% 317,311
0.67 4.55% 45,500
1.0 0.27% 2700
1.33 0.0063% 63
2.0 0.0000002% 0.002

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 Percentages of Normal Distribution

68.3%

95.45%

-3 -2 -1 0 +1 +2 +3
99.73%

6 sigma
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 Percentages of Normal Distribution

34.13% 34.13%

13.6%
13.6%

2.14%
2.14%

0.135% 0.135%

-3 -2 -1 0 +1 +2 +3

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 Examples

USL
Cpk = 0.33

15.87%
Predicted failure
rate

-3 -2 -1 0 +1 +2 +3

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 Examples

LSL USL
Cp = 0.67 5.54%
Predicted failure
rate

2.27% 2.27%

-3 -2 -1 0 +1 +2 +3

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 Examples

USL
Cpk = 0.5
USL = 300

= 270 ____%
Predicted failure
S = 20 rate

-3 -2 -1 0 +1 +2 +3

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 Determine Z-value

1. Determine the number of standard

deviations from the mean (Z-value)
Value – Average X - 
Z-value = =
standard deviation s

2. Look up Z-value in standard normal

table

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 Example

X -  300 - 270 30
Z-value = = = = 1.5
s 20 20

From standard normal table …

Z = 1.5 

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 z
percentile
Standard Normal (Z) Table

Z = 1.50

43.32%
 Examples

USL
50% - 43.32% = 6.68%

6.68%
Predicted failure
rate

50%

-3 -2 -1 0 +1 +2 +3

Z = 1.5
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 Calories Percent Fallout

Avg = 2390
Std Dev = 270.3
Value = 1800 (lower spec)

2390 - 1800
Z= = 2.18
270.3

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 Calories Percent Fallout

LSL
50% - 48.54% = 1.46%

1.46%
Predicted failure
rate

48.54%

-3 -2 -1 0 +1 +2 +3
1579 1849 2120 2390 2660 2930 3201

Z = 2.18
LSL = 1800
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z percentile
Standard Normal (Z) Table
 What is Pp and Ppk?

• There are new terms related to

capability that are becoming more
popular
• Pp and Ppk are very similar to Cp and
Cpk, but with different estimates of
standard deviation
• Some confusion exists, since
requirements may ask for Cp and Cpk,
but formula is actually Pp and Ppk

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 Difference between Cp/Cpk and Pp/Ppk

Cp/Cpk Pp/Ppk
-Uses within estimate of -Uses overall standard
standard deviation deviation formula
-Estimates potential (assumed for this course)
capability (if outliers -Estimates actual
removed) capability (includes
-Estimates short term outliers)
variability -Estimates long term
variability

Unsure? Use Pp and Ppk calculations to be safe

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 Calculating Standard Deviation

Cp/Cpk Pp/Ppk
• Formula for within • Formula for overall
standard deviation standard deviation
• One of the following,
depending on
subgroup sizes:

S = MR/d2
S = S/c4
S=
√ Σ(x - )2
n -1
S = R/d2
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 Review

You learned:
• What is average and variation, and
how to calculate it
• What is capability and how to calculate
Cp and Cpk
• How to use Cp and Cpk to understand
a process
• How to convert Cp and Cpk to percent
of failure

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 Additional Resources

Business Performance Improvement

http://www.biz-pi.com

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