STATISTICAL PROCESS

CONTROL

(SPC)

REFERENCE MANUAL

Second Edition, Issued July 2005

Issued 1992, Second Printing March 1995 (new cover only)
Copyright © 1992, © 1995, © 2005
Daimler Chrysler Corporation, Ford Motor Company, and General Motors Corporation
STATISTICAL PROCESS CONTROL
SPC

FOREWORD to Second Edition

This Reference Manual was developed by the Statistical Process Control (SPC) Work Group,
sanctioned by the DaimlerChrysler/Ford/General Motors Supplier Quality Requirements Task
Force, and under the auspices of the American Society for Quality (ASQ) and the Automotive
Industry Action Group (AIAG). The Work Group responsible for this Second edition was prepared
by the quality and supplier assessment staffs at DaimlerChrysler Corporation, Delphi Corporation,
Ford Motor Company, General Motors Corporation, Omnex, Inc. and Robert Bosch Corporation
working in collaboration with the Automotive Industry Action Group (AIAG).

The Task Force charter is to standardize the reference manuals, reporting formats and technical
nomenclature used by DaimlerChrysler, Ford and General Motors in their respective supplier
assessment systems. Accordingly, this Reference Manual can be used by any supplier to develop
information responding to the requirements of either DaimlerChrysler's, Ford's or General Motors'
supplier assessment systems. This second edition was prepared to recognize the needs and changes
within the automotive industry in SPC techniques that have evolved since the original manual was
published in 1991.

The manual is an introduction to statistical process control. It is not intended to limit evolution of
SPC methods suited to particular processes or commodities. While these guidelines are intended to
cover normally occurring SPC system situations, there will be questions that arise. These questions
should be directed to your customer's Supplier Quality Assurance (SQA) activity. If you are
uncertain as to how to contact the appropriate SQA activity, the buyer in your customer's
purchasing office can help.

The Task Force gratefully acknowledges: the leadership and commitment of Vice Presidents Peter
Rosenfeld at DaimlerChrysler Corporation, Thomas K. Brown at Ford Motor Company and Bo
Andersson of General Motors Corporation; the assistance of the AIAG in the development,
production and distribution of the manual; the guidance of the Task Force principals Hank Gryn
(DaimlerChrysler Corporation), Russ Hopkins (Ford Motor Company), and Joe Bransky (General
Motors Corporation). Therefore this manual was developed to meet the specific needs of the
automotive industry.

This Manual is copyrighted by DaimlerChrysler Corporation, Ford Motor Company, and General
Motors Corporation, all rights reserved, 2005. Additional manuals can be ordered from AIAG
and/or permission to copy portions of this manual for use within supplier organizations may be
obtained from AIAG at 248-358-3570 or http://www.aiag.org.

i
ACKNOWLEDGEMENTS to Second Edition

The joint consensus on the contents of this document was effected through Task Team
Subcommittee Members representing DaimlerChrysler, Ford, and General Motors, respectively,
whose approval signatures appear below, and who gratefully acknowledge the significant
contribution of Gregory Gruska of Omnex Inc., Gary A. Hiner of Delphi Corporation, and David
W. Stamps of The Robert Bosch Corp.

The latest improvements were updating the format to conform to the current AIAG/ ISO/ TS
16949:2002 documentation, more clarification and examples to make the manual more user friendly
and additional areas which where not included or did not exist when the original manual was
written.

The current re-write subcommittee is chaired by Mike Down from General Motors Corporation and
consists of Todd Kerkstra and Dave Benham from DaimlerChrysler Corporation, Peter Cvetkovski
from Ford Motor Company, Gregory Gruska, as a representative of the Omnex Inc. and ASQ, Gary
A. Hiner of Delphi Corporation, and David W. Stamps of The Robert Bosch Corp.

Michael H. Down Todd Kerkstra

General Motors Corporation DaimlerChrysler Corporation

Peter Cvetkovski David R. Benham

Ford Motor Company DaimlerChrysler Corporation

ii
 STATISTICAL PROCESS CONTROL
SPC

FOREWORD to First Edition

This Reference Manual was prepared by the quality and supplier assessment staffs at Chrysler, Ford and
General Motors, working under the auspices of the Automotive Division of the American Society for
Quality Control Supplier Quality Requirements Task Force, in collaboration with the Automotive
Industry Action Group.

The ASQC/AIAG Task Force charter is to standardize the reference manuals, reporting formats and
technical nomenclature used by Chrysler, Ford and General Motors in their respective supplier
assessment systems: Supplier Quality Assurance, Total Quality Excellence and Targets for Excellence.
Accordingly, this Reference Manual can be used by any supplier to develop information responding to
the requirements of either Chrysler's, Ford's or General Motors' supplier assessment systems. Until now,
there has been no unified formal approach in the automotive industry on statistical process control.
Certain manufacturers provided methods for their suppliers, while others had no specific requirements.
In an effort to simplify and minimize variation in supplier quality requirements, Chrysler, Ford, and
General Motors agreed to develop and, through AIAG, distribute this manual. The work team
responsible for the Manual's content was led by Leonard A. Brown of General Motors. The manual
should be considered an introduction to statistical process control. It is not intended to limit evolution of
statistical methods suited to particular processes or commodities nor is it intended to be comprehensive
of all SPC techniques. Questions on the use of alternate methods should be
referred to your customer's quality activity.

The Task Force gratefully acknowledges: the senior leadership and commitment of Vice Presidents
Thomas T. Stallkamp at Chrysler, Clinton D. Lauer at Ford, and Donald A. Pais at General Motors; the
technical competence and hard work of their quality and supplier assessment teams; and the invaluable
contributions of the Automotive Industry Action Group (under AIAG Executive Director Joseph R.
Phelan) in the development, production and distribution of this Reference manual. We also wish to thank
the ASQC reading team led by Tripp Martin of Peterson Spring, who reviewed the Manual and in the
process made valuable contributions to intent and content.

Bruce W. Pince
Task Force Coordinator
Sandy Corporation
Troy, Michigan
December, 1991

This Manual is copyrighted by Chrysler Corporation, Ford Motor Company, General Motors
Corporation, all rights reserved, 1991. Additional copies can be ordered from A.I.A.G., and/or
permission to copy portions of the Manual for use within supplier organizations may be obtained from
A.I.A.G. at (248) 358-3570.

iii
ACKNOWLEDGEMENTS to First Edition

The joint consensus on the contents of this document was effected through Task Team Subcommittee
Members representing General Motors, Ford, and Chrysler, respectively, whose approval signatures
appear below, and who gratefully acknowledge the significant contribution of Pete Jessup of the Ford
Motor Company, who was responsible for developing the majority of the material found in Chapters I,
II, and III, and the Appendix of this document.

Harvey Goltzer of the Chrysler Corporation contributed concepts relative to process capability and
capability studies, found in the introduction section of Chapter I. Jack Herman of Du Pont contributed
some of the concepts relative to capability and performance indices and the importance of measurement
variability, found in portions of Chapters II and IV, respectively.

The General Motors Powertrain Division contributed the discussion and examples relative to
subgrouping and process over-adjustment. The section in Chapter II which provides understanding of
process capability and related issues was developed by the General Motors Corporate Statistical Review
Committee. This committee also contributed to the development of Chapter IV, Process Measurement
Systems Analysis, as well as to some Appendix items.

Finally, valuable input to all sections of the manual was provided by ASQC representatives
Gregory Gruska, Doug Berg, and Tripp Martin.

Leonard A. Brown, Victor W. Lowe, Jr David R. Benham,

G.M. Ford Chrysler

iv
 TABLE OF CONTENTS
CHAPTER I ................................................................ 1
Continual Improvement and Statistical Process Control ........................................................................... 1
Introduction ........................................................................................................................................... 3
Six Points ............................................................................................................................................... 4
CHAPTER I – Section A ........................................................................................................................ 7
Prevention Versus Detection ..................................................................................................................... 7
CHAPTER I – Section B ........................................................................................................................ 9
A Process Control System ......................................................................................................................... 9
CHAPTER I – Section C ........................................................................................................................ 13
Variation: Common .................................................................................................................................. 13
and Special Causes ................................................................................................................................... 13
CHAPTER I – Section D ........................................................................................................................ 17
Local Actions And Actions On The System ............................................................................................ 17
CHAPTER I – Section E ...................................................... 19
Process Control and Process Capability ................................................................................................... 19
Control vs. Capability ............................................................................................................................ 19
Process Indices ...................................................................................................................................... 21
CHAPTER I – Section F ........................................................................................................................ 25
The Process Improvement Cycle and Process Control ............................................................................. 25
CHAPTER I – Section G ........................................................................................................................ 29
Control Charts: Tools For Process Control and Improvement ................................................................. 29
How do they work? ................................................................................................................................ 30
Approach: .............................................................................................................................................. 32
CHAPTER I – Section H ........................................................................................................................ 37
Effective Use and Benefits of Control Charts .......................................................................................... 37
CHAPTER II ........................................................................... 41
Control Charts .......................................................................................................................................... 41
Introduction: .......................................................................................................................................... 43
Variables Control Charts ..................................................................................................................... 45
Attributes Control Charts ...................................................................................................................... 47
Elements of Control Charts .................................................................................................................. 48
CHAPTER II - Section A ..................................................... 53
Control Chart Process ............................................................................................................................... 53
Preparatory Steps ................................................................................................................................. 53
Control Chart Mechanics ..................................................................................................................... 55
Establish Control Limits ................................................................................................................... 59
Interpret for Statistical Control ......................................................................................................... 60
Final Comments ............................................................................................................................... 63
Extend Control Limits for Ongoing Control .................................................................................... 65
CHAPTER II - Section B ...................................................................................................................... 69
Defining "Out-of-Control" Signals .......................................................................................................... 69
Point Beyond a Control Limit ............................................................................................................... 69
Patterns or Trends Within the Control Limits ...................................................................................... 70
Special Cause Criteria ......................................................................................................................... 75
Average Run Length (ARL) .................................................................................................................. 76
CHAPTER II - Section C ..................................................................................................................... 79
Control Chart Formulas ............................................................................................................................ 79

v
 Variables Control Charts .....................................................................................................................79
Average and Range Charts ................................................................. 79
Average and Standard Deviation Charts ................................................................ 83

Median and Range Charts ) ..................................................................... 85

Individuals and Moving Range Charts (X, MR) .................................................... 87
Attributes Control Charts .....................................................................................................................89
Control Charts for Nonconforming Items .........................................................................................89
Proportion Nonconforming (p Chart) .................................................................................................89
Number of Nonconforming Chart (np Chart) ....................................................................................93
Number of Nonconformities per Unit Chart (u Chart) ......................................................................95
Number of Nonconformities Chart ( c Chart) ....................................................................................97
CHAPTER III ............................................................................................................................................99
Other Types of Control Charts ................................................................................................................99
Introduction ........................................................................................................................................101
Probability Based Charts ...................................................................................................................101
Short-Run Control Charts ................................................................................................................... 107
Charts for Detecting Small Changes ..................................................................................................109
Non-Normal Charts ............................................................................................................................113
Multivariate ........................................................................................................................................116
Other Charts .......................................................................................................................................117
Regression Control Charts ..............................................................................................................117
Residual Charts ...............................................................................................................................118
Autoregressive Charts .....................................................................................................................118
Zone Charts .....................................................................................................................................121
CHAPTER IV ..........................................................................................................................................125
Understanding Process Capability .........................................................................................................125
and Process Performance for Variables Data ........................................................................................125
Introduction ........................................................................................................................................127
CHAPTER IV - Section A ......................................................................................................................131
Definitions of Process Terms ................................................................................................................131
Process Measures for Predictable Processes .........................................................................................132
Indices Bilateral Tolerances ...............................................................................................................132
Indices – Unilateral Tolerances .........................................................................................................137
CHAPTER IV - Section B .......................................................................................................................139
Description of Conditions .....................................................................................................................139
Handling Non-Normal and Multivariate Distributions .........................................................................140
Relationship of Indices and Proportion Nonconforming ....................................................................140
Non-Normal Distributions Using Transformations ............................................................................140
Non-Normal Distributions Using Non-Normal Forms .......................................................................142
Multivariate Distributions ..................................................................................................................144
CHAPTER IV - Section C ......................................................................................................................147
Suggested Use of Process Measures .....................................................................................................147
The Loss Function Concept ................................................................................................................ 148
Alignment of Process to Customer Requirements ...............................................................................153
APPENDIX A ..........................................................................................................................................157
Some Comments on Sampling ..............................................................................................................157
Effects of Subgrouping ........................................................................................................................157

vi
 Autocorrelated Data .......................................................................................................................... 157
Multiple Stream Process Example ..................................................................................................... 162
Effects of Sample Size on Indices ....................................................................................................... 168
APPENDIX B ......................................................... 171
Some Comments on Special Causes .................................................................................................... 171
Over-Adjustment ................................................................................................................................ 171
Time Dependent Processes ............................................................................................................... 173
Repeating Patterns ............................................................................................................................. 175
APPENDIX C ......................................................... 177
Selection Procedure for the Use of the Control Charts Described in This Manual .............................. 177
APPENDIX D ......................................................... 179
Relationship Between Cpm and Other Indices ....................................................................................... 179
APPENDIX E ......................................................... 181
Table of Constants and Formulas for Control Charts ........................................................................... 181
APPENDIX F ......................................................... 185
Capability Index Calculations Example ............................................................................................... 185
Data Set: ............................................................................................................................................... 186
Analysis ................................................................................................................................................ 187
Diameter Statistics: .......................................................................................................................... 188
Conclusion: ...................................................................................................................................... 190
APPENDIX G ......................................................... 191
Glossary of Terms and Symbols .......................................................................................................... 191
Terms Used in This Manual ............................................................................................................. 191
Symbols as Used in This Manual ...................................................................................................... 204
APPENDIX H ......................................................... 211
References and Suggested Readings .................................................................................................... 211
APPENDIX I ......................................................... 215
Standard Normal Tables ....................................................................................................................... 215
INDEX .............................................................. 217
S.P.C. Manual User Feedback Process ................................................................................................. 221

vii
 LIST OF ILLUSTRATIONS
Figure I.1: A Process Control System ........................................................................................................................8
Figure I.2: Variation: Common Cause and Special Cause ....................................................................................12
Figure I.3: Process Control and Process Capability ...............................................................................................18
Figure I.4: The Process Improvement Cycle ..........................................................................................................24
Figure I.5: Control Charts ...........................................................................................................................................28
Figure II.1: Variables Data ..........................................................................................................................................44
Figure II.2: Attributes Data ........................................................................................................................................46
Figure II.3: Elements of Control Charts ..................................................................................................................49
Figure II.4a: Sample Control Chart (Front side) ....................................................................................................51
Figure II.4b: Sample Control Chart (back side) — Event Log ...........................................................................52
Figure II.5: Extending Control Limits .....................................................................................................................56
Figure II.6: Control Limits Recalculation ................................................................................................................61
Figure II.7: Extend Control Limits for Ongoing Control ....................................................................................64
Figure II.8: Process Variation Relative to Specification Limits ...........................................................................67
Figure II.9: Points Beyond Control Limits ..............................................................................................................70
Figure II.10: Runs in an Average Control Chart ....................................................................................................71
Figure II.11: Runs in a Range Control Chart ..........................................................................................................72
Figure II.12: Nonrandom Patterns in a Control Chart .........................................................................................74
Figure II.13: Average and Range Charts ..................................................................................................................78
Figure II.14: Average and Standard Deviation Charts ..........................................................................................82
Figure II.15: Median and Range Charts ...................................................................................................................84
Figure II.16: Individual and Moving Range Charts ...............................................................................................86
Figure II.17: Proportion Nonconforming Chart ....................................................................................................88
Figure II.18: Number of Nonconforming Chart ...................................................................................................92
Figure II.19: Number of Nonconforming per Unit Chart ...................................................................................94
Figure II.20: Number of Nonconformities Chart ..................................................................................................96
Figure III.1: Control Charts .................................................................................................................................... 100
Figure III.2: Stoplight Control ................................................................................................................................ 102
Figure III.3: Pre-Control .......................................................................................................................................... 105
Figure III.4: DNOM Control Chart ...................................................................................................................... 108
Figure III.5: CUSUM Chart with V-Mask ............................................................................................................ 109
Figure III.6: X, MR Chart ......................................................................................................................................... 110
Figure III.7: EWMA Chart of Viscosity ............................................................................................................... 112
Figure III.8: X, MR Chart of Viscosity .................................................................................................................. 112
Figure IV.1: Within- and Between-Subgroup Variation .................................................................................... 130
Figure IV.2: Cpk and Ppk Comparison ..................................................................................................................... 133
Figure IV.3: Comparison between a Predictable and Immature Process ....................................................... 135
Figure IV.4: Cpk and Ppk Values Produced by a Predictable and Immature Process ................................ 136
Figure IV.5: "Goal Post" vs. Loss Function ........................................................................................................ 148
Figure IV.6: Comparison of Loss Function and Specifications ....................................................................... 150
Figure IV.7: Comparison of Loss Functions ....................................................................................................... 151
Figure IV.8: A Process Control System ................................................................................................................ 152
Figure IV.9: Process Alignment to Requirements .............................................................................................. 154

viii
 CHAPTER I

Continual Improvement
and
Statistical Process Control

1
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2
 CHAPTER 1
Continual Improvement and Statistical Process Control

Introduction
To prosper in today's economic climate, we – automotive
manufacturers, suppliers and dealer organizations – must be
dedicated to continual improvement. We must constantly seek more
efficient ways to produce products and services. These products and
services must continue to improve in value. We must focus upon our
customers, both internal and external, and make customer satisfaction
a primary business goal.
To accomplish this, everyone in our organizations must be
committed to improvement and to the use of effective methods. This
manual describes several basic statistical methods that can be used to
make our efforts at improvement more effective. Different levels of
understanding are needed to perform different tasks. This manual is
aimed at practitioners and managers beginning the application of
statistical methods. It will also serve as a refresher on these basic
methods for those who are now using more advanced techniques. Not
all basic methods are included here. Coverage of other basic methods
(such as check sheets, flowcharts, Pareto charts, cause and effect
diagrams) and some advanced methods (such as other control charts,
designed experiments, quality function deployment, etc.) is available
in books and booklets such as those referenced in Appendix H.
The basic statistical methods addressed in this manual include those
associated with statistical process control and process capability
analysis.
Chapter I provides background for process control, explains several
important concepts such as special and common causes of variation.
It also introduces the control chart, which can be a very effective
tool for analyzing and monitoring processes.
Chapter II describes the construction and use of control charts for
both variables 1 data and attributes data.
Chapter III describes other types of control charts that can be used
for specialized situations – probability based charts, short-run charts,
charts for detecting small changes, non-normal, multivariate and
other charts.
Chapter IV addresses process capability analysis.
The Appendices address sampling, over-adjustment, a process for
selecting control charts, table of constants and formulae, the normal
table, a glossary of terms and symbols, and references.

1
The term "Variables", although awkward sounding, is used in order to distinguish the difference
between something that varies, and the control chart used for data taken from a continuous
variable.
3
CHAPTER 1
Continual Improvement and Statistical Process Control

Six Points

Six points should be made before the main discussion begins:

1) Gathering data and using statistical methods to interpret them are not
ends in themselves. The overall aim should be increased
understanding of the reader's processes. It is very easy to become
technique experts without realizing any improvements. Increased
knowledge should become a basis for action.
2) Measurement systems are critical to proper data analysis and they
should be well understood before process data are collected. When
such systems lack statistical control or their variation accounts for a
substantial portion of the total variation in process data, inappropriate
decisions may be made. For the purposes of this manual, it will be
assumed that this system is under control and is not a significant
contributor to total variation in the data. The reader is referred to the
Measurement Systems Analysis (MSA) Manual available from AIAG
for more information on this topic.
3) The basic concept of studying variation and using statistical signals
to improve performance can be applied to any area. Such areas can
be on the shop floor or in the office. Some examples are machines
(performance characteristics), bookkeeping (error rates), gross sales,
waste analysis (scrap rates), computer systems (performance
characteristics) and materials management (transit times). This
manual focuses upon shop floor applications. The reader is
encouraged to consult the references in Appendix H for
administrative and service applications.
4) SPC stands for Statistical Process Control. Historically, statistical
methods have been routinely applied to parts, rather than processes.
Application of statistical techniques to control output (such as parts)
should be only the first step. Until the processes that generate the
output become the focus of our efforts, the full power of these
methods to improve quality, increase productivity and reduce cost
may not be fully realized.
5) Although each point in the text is illustrated with a worked-out
example, real understanding of the subject involves deeper contact
with process control situations. The study of actual cases from the
reader's own job location or from similar activities would be an
important supplement to the text. There is no substitute for hands-on
experience.
6) This manual should be considered a first step toward the use of
statistical methods. It provides generally accepted approaches, which
work in many instances. However, there exist exceptions where it is
improper to blindly use these approaches. This manual does not
replace the need for practitioners to increase their knowledge of
statistical methods and theory. Readers are encouraged to pursue
formal statistical education. Where the reader's processes and
application of statistical methods have advanced beyond the material

4
 CHAPTER 1
Continual Improvement and Statistical Process Control

covered here, the reader is also encouraged to consult with persons

who have the proper knowledge and practice in statistical theory as to
the appropriateness of other techniques. In any event, the procedures
used must satisfy the customer's requirements.

5
CHAPTER 1 – Section A
Prevention Versus Detection

THE NEED FOR PROCESS

CONTROL

Detection – Tolerates Waste

Prevention – Avoids Waste

6
 CHAPTER 1 – Section A
Prevention Versus Detection

CHAPTER I - Section A
Prevention Versus Detection
In the past, Manufacturing often depended on Production to make the
product and on Quality Control to inspect the final product and
screen out items not meeting specifications. In administrative
situations, work is often checked and rechecked in efforts to catch
errors. Both cases involve a strategy of detection, which is wasteful,
because it allows time and materials to be invested in products or
services that are not always usable.
It is much more effective to avoid waste by not producing unusable
output in the first place — a strategy of prevention.
A prevention strategy sounds sensible — even obvious — to most
people. It is easily captured in such slogans as, "Do it right the first
time". However, slogans are not enough. What is required is an
understanding of the elements of a statistical process control system.
The remaining seven subsections of this introduction cover these
elements and can be viewed as answers to the following questions:

• What is meant by a process control system?

• How does variation affect process output?

• How can statistical techniques tell whether a problem is local in

nature or involves broader systems?
• What is meant by a process being in statistical
control? What is meant by a process being
capable?
• What is a continual improvement cycle, and what part can
process control play in it?

• What are control charts, and how are they used?

• What benefits can be expected from using control charts?

As this material is being studied, the reader may wish to refer to the
Glossary in Appendix G for brief definitions of key terms and
symbols.

7
CHAPTER 1 – Section B
A Process Control System

Figure I.1: A Process Control System

8
 CHAPTER 1 – Section B
A Process Control System

CHAPTER I - Section B
A Process Control System
A process control system can be described as a feedback system.
SPC is one type of feedback system. Other such systems, which are
not statistical, also exist. Four elements of that system are
important to the discussions that will follow:
1. The Process – By the process, we mean the whole combination
of suppliers, producers, people, equipment, input materials,
methods, and environment that work together to produce output,
and the customers who use that output (see Figure 1.1). The total
performance of the process depends upon communication between
supplier and customer, the way the process is designed and
implemented, and on the way it is operated and managed. The rest
of the process control system is useful only if it contributes either
to maintaining a level of excellence or to improving the total
performance of the process.
2. Information About Performance – Much information about
the actual performance of the process can be learned by studying the
process output. The most helpful information about the
performance of a process comes, however, from understanding the
process itself and its internal variability. Process characteristics
(such as temperatures, cycle times, feed rates, absenteeism,
turnover, tardiness, or number of interruptions) should be the
ultimate focus of our efforts. We need to determine the target
values for those characteristics that result in the most productive
operation of the process, and then monitor how near to or far from
those target values we are. If this information is gathered and
interpreted correctly, it can show whether the process is acting in a
usual or unusual manner. Proper actions can then be taken, if
needed, to correct the process or the just-produced output. When
action is needed it must be timely and appropriate, or the
information-gathering effort is wasted.
3. Action on the Process – Action on the process is frequently
most economical when taken to prevent the important
characteristics (process or output) from varying too far from their
target values. This ensures the stability and the variation of the
process output is maintained within acceptable limits. Such action
might consist of:
• Changes in the operations
9 operator training
9 changes to the incoming materials
• Changes in the more basic elements of the process itself
9 the equipment
9 how people communicate and relate
9 the design of the process as a whole – which may be
vulnerable to changes in shop temperature or humidity
The effect of actions should be monitored, with further analysis
and action taken if necessary.

9
CHAPTER 1 – Section B
A Process Control System

4. Action on the Output — Action on the output is frequently least

economical when it is restricted to detecting and correcting out-of-
specification product without addressing the underlying process
problem. Unfortunately, if current output does not consistently meet
customer requirements, it may be necessary to sort all products and
to scrap or rework any nonconforming items. This must continue
until the necessary corrective action on the process has been taken
and verified.
It is obvious that inspection followed by action on only the output is
a poor substitute for effective process management. Action on only
the output should be used strictly as an interim measure for unstable
or incapable processes (see Chapter I, Section E). Therefore, the
discussions that follow focus on gathering process information and
analyzing it so that action can be taken to correct the process itself.
Remember, the focus should be on prevention not detection.

10
 CHAPTER 1 – Section B
A Process Control System

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11
CHAPTER 1 – Section C
Variation: Common and Special Causes

Figure I.2: Variation: Common Cause and Special Cause

12
 CHAPTER 1 – Section C
Variation: Common and Special Causes

CHAPTER I - Section C
Variation: Common and Special Causes
In order to effectively use process control measurement data, it is
important to understand the concept of variation, as illustrated in
Figure I.2.

No two products or characteristics are exactly alike, because any

process contains many sources of variability. The differences among
products may be large, or they may be immeasurably small, but they
are always present. The diameter of a machined shaft, for instance,
would be susceptible to potential variation from the machine
(clearances, bearing wear), tool (strength, rate of wear), material
(diameter, hardness), operator (part feed, accuracy of centering),
maintenance (lubrication, replacement of worn parts), environment
(temperature, constancy of power supply) and measurement system.
Another example is the time required to process an invoice could
vary according to the people performing various steps, the reliability
of any equipment they were using, the accuracy and legibility of the
invoice itself, the procedures followed, and the volume of other work
in the office.

Some sources of variation in the process cause short-term, piece-to-

piece differences, e.g., backlash and clearances within a machine and
its fixturing, or the accuracy of a bookkeeper's work. Other sources
of variation tend to cause changes in the output only over a longer
period of time. These changes may occur either gradually as with tool
or machine wear, stepwise as with procedural changes, or irregularly
as with environmental changes such as power surges. Therefore, the
time period and conditions over which measurements are made are
critical since they will affect the amount of the total variation that will
be observed.

While individual measured values may all be different, as a group

they tend to form a pattern that can be described as a distribution (see
Figure I2). This distribution can be characterized by:

• Location (typical or "central" value)

• Spread (span or "width" of values from smallest to largest)
• Shape (the pattern of variation whether it is symmetrical,
skewed, etc.)
From the standpoint of minimum requirements, the issue of variation
is often simplified: parts within specification tolerances are
acceptable, parts beyond specification tolerances are not acceptable;
reports on time are acceptable, late reports are not acceptable.
However, the goal should be to maintain the location to a target
value with minimal variability. To manage any process and reduce
variation, the variation should be traced back to its sources. The first
step is to make the distinction between common and special causes of
variation.
Common causes refer to the many sources of variation that
consistently acting on the process. Common causes within a process

2
Processes that have undergone several cycles of continual improvement.
13
 CHAPTER 1 – Section C
Variation: Common and Special Causes

produce a stable and repeatable distribution over time. This is called

"in a state of statistical control. “in statistical control,” or sometimes
just "in control." Common causes yield a stable system of chance
causes. If only common causes of variation are present and do not
change, the output of a process is predictable.

Special causes (often called assignable causes) refer to any factors

causing variation that affect only some of the process output. They
are often intermittent and unpredictable. Special causes are signaled
by one or more points beyond the control limits or non-random
patterns of points within the control limits. Unless all the special
causes of variation are identified and acted upon, they may continue
to affect the process output in unpredictable ways. If special causes
of variation are present, the process output will not be stable over
time.

The changes in the process distribution due to special causes can be

either detrimental or beneficial. When detrimental, they need to be
understood and removed. When beneficial, they should be
understood and made a permanent part of the process. With some
mature processes 2, the customer may give special allowance to run
a process with a consistently occurring special cause. Such
allowances will usually require that the process control plans can
assure conformance to customer requirements and protect the
process from other special causes (see Chapter I, Section E).

2
Processes that have undergone several cycles of continual improvement.
14
 CHAPTER 1 – Section C
Variation: Common and Special Causes

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15
CHAPTER 1 – Section D
Local Actions And Actions On The System

LOCAL ACTIONS AND ACTIONS ON THE SYSTEM

Local Actions
• Are usually required to eliminate special causes of variation
• Can usually be taken by people close to the process
• Can correct typically about 15% of process problems

Actions on the System

• Are usually required to reduce the variation due to common causes
• Almost always require management action for correction
• Are needed to correct typically about 85% of process problems

16
 CHAPTER 1 – Section D
Local Actions And Actions On The System

CHAPTER I - Section D
Local Actions And Actions On The System
There is an important connection between the two types of variation
just discussed and the types of action necessary to reduce them. 3
Simple statistical process control techniques can detect special
causes of variation. Discovering a special cause of variation and
taking the proper action is usually the responsibility of someone who
is directly connected with the operation. Although management can
sometimes be involved to correct the condition, the resolution of a
special cause of variation usually requires local action, i.e., by people
directly connected with the operation. This is especially true during
the early process improvement efforts. As one succeeds in taking the
proper action on special causes, those that remain will often require
management action, rather than local action.
These same simple statistical techniques can also indicate the extent
of common causes of variation, but the causes themselves need more
detailed analysis to isolate. The correction of these common causes
of variation is usually the responsibility of management. Sometimes
people directly connected with the operation will be in a better
position to identify them and pass them on to management for action.
Overall, the resolution of common causes of variation usually
requires action on the system.
Only a relatively small proportion of excessive process variation —
industrial experience suggests about 15% — is correctable locally by
people directly connected with the operation. The majority — the
other 85% — is correctable only by management action on the
system. Confusion about the type of action to take is very costly to
the organization, in terms of wasted effort, delayed resolution of
trouble, and aggravating problems. It may be wrong, for example, to
take local action (e.g., adjusting a machine) when management action
on the system is required (e.g., selecting suppliers that provide
consistent input materials). 4 Nevertheless, close teamwork between
management and those persons directly connected with the operation
is a must for enhancing reduction of common causes of process
variation.

3
Dr. W. E. Deming has treated this issue in many articles; e.g., see Deming (1967).
4
These observations were first made by Dr. J. M. Juran, and have been borne out in Dr. Deming's
experience.
17
CHAPTER 1 – Section E
Process Control and Process Capability

Figure I.3: Process Control and Process Capability

18
 CHAPTER 1 – Section E
Process Control and Process Capability

CHAPTER I - Section E
Process Control and Process Capability
The process control system is an integral part of the overall business
management system. 5 As such, the goal of the process control
system is to make predictions about the current and future state of the
process. This leads to economically sound decisions about actions
affecting the process. These decisions require balancing the risk of
taking action when action is not necessary (over-control or
"tampering") versus failing to take action when action is necessary
(under-control). 6 These risks should be handled, however, in the
context of the two sources of variation - special causes and common
causes (see Figure I.3).
A process is said to be operating in statistical control when the only
sources of variation are common causes. One function of a process
control system, then, is to provide a statistical signal when special
causes of variation are present, and to avoid giving false signals when
they are not present. This allows appropriate action(s) to be taken
upon those special causes (either removing them or, if they are
beneficial, making them permanent).
The process control system can be used as a one-time evaluation tool
but the real benefit of a process control system is realized when it is
used as a continual learning tool instead of a conformance tool
(good/bad, stable/not stable, capable/not capable, etc.)

Control vs. Capability

When discussing process capability, two somewhat contrasting
concepts need to be considered:
• Process capability
• Process performance
Process capability is determined by the variation that comes from
common causes. It generally represents the best performance of the
process itself. This is demonstrated when the process is being
operated in a state of statistical control regardless of the
specifications.

Customers, internal or external, are however more typically

concerned with the process performance; that is, the overall output
of the process and how it relates to their requirements (defined by
specifications), irrespective of the process variation.

5
See TS 16949.
6
See W. E. Deming, (1994), and W. Shewhart, (1931).
19
CHAPTER 1 – Section E
Process Control and Process Capability

In general, since a process in statistical control can be described by a

predictable distribution, the proportion of in-specification parts can
be estimated from this distribution. As long as the process remains
in statistical control and does not undergo a change in location,
spread or shape, it will continue to produce the same distribution of
in-specification parts.

Once the process is in statistical control the first action on the

process should be to locate the process on the target. If the process
spread is unacceptable, this strategy allows the minimum number of
out-ofspecification parts to be produced. Actions on the system to
reduce the variation from common causes are usually required to
improve the ability of the process (and its output) to meet
specifications consistently. For a more detailed discussion of process
capability, process performance and the associated assumptions,
refer to Chapter IV.
The process must first be brought into statistical control by
detecting and acting upon special causes of variation. Then its
performance is predictable, and its capability to meet
customer expectations can be assessed. This is a basis for
continual improvement.

Every process is subject to classification based on capability and

control. A process can be classified into 1 of 4 cases, as illustrated
by the following chart:
Statistical Control

In-Control Out-of-Control

Acceptable Case 1 Case 3

Capability

Unacceptable Case 2 Case 4

To be acceptable, the process must be in a state of statistical control

and the capability (common cause variation) must be less than the
tolerance. The ideal situation is to have a Case 1 process where the
process is in statistical control and the ability to meet tolerance
requirements is acceptable. A Case 2 process is in control but has
excessive common cause variation, which must be reduced. A Case
3 process meets tolerance requirements but is not in statistical
control; special causes of variation should be identified and acted
upon. In Case 4, the process is not in control nor is it acceptable.
Both common and special cause variation must be reduced.
Under certain circumstances, the customer may allow a producer to
run a process even though it is a Case 3 process. These
circumstances may include:
o The customer is insensitive to variation within specifications (see
discussion on the loss function in Chapter IV).

20
 CHAPTER 1 – Section E
Process Control and Process Capability

• The economics involved in acting upon the special cause

exceed the benefit to any and all customers. Economically
allowable special causes may include tool wear, tool regrind,
cyclical (seasonal) variation, etc.
• The special cause has been identified and has been documented
as consistent and predictable.
In these situations, the customer may require the following:
• The process is mature.

• The special cause to be allowed has been shown to act in a

consistent manner over a known period of time.
• A process control plan is in effect which will assure
conformance to specification of all process output and
protection from other special causes or inconsistency in the
allowed-special cause.
See also Appendix A for a discussion on time dependent processes.
Process Indices
The accepted practice in the automotive industry is to calculate the
capability (common cause variation) only after a process has been
demonstrated to be in a state of statistical control. These results are
used as a basis for prediction of how the process will perform.
There is little value in making predictions based on data collected
from a process that is not stable and not repeatable over time.
Special causes are responsible for changes in the shape, spread, or
location of a process distribution, and thus can rapidly invalidate
prediction about the process. That is, in order for the various
process indices and ratios to be used as predictive tools, the
requirement is that the data used to calculate them are gathered
from processes that are in a state of statistical control.

Process indices can be divided into two categories: those that are
calculated using within-subgroup estimates of variation and those
using total variation when estimating a given index (see also chapter
IV).
Several different indices have been developed because:
1) No single index can be universally applied to all processes, and
2) No given process can be completely described by a single index.
For example, it is recommended that Cp and Cpk both be used (see
Chapter IV), and further that they be combined with graphical
techniques to better understand the relationship between the
estimated distribution and the specification limits. In one sense, this
amounts to comparing (and trying to align) the "voice of the
process" with the "voice of the customer" (see also Sherkenbach
(1991)).

All indices have weaknesses and can be misleading. Any inferences

drawn from computed indices should be driven by appropriate
interpretation of the data from which the indices were computed.

21
CHAPTER 1 – Section E
Process Control and Process Capability

Automotive companies have set requirements for process capability. It

is the reader's responsibility to communicate with their customer and
determine which indices to use. In some cases, it might be best to use
no index at all. It is important to remember that most capability
indices include the product specification in the formula. If the
specification is inappropriate, or not based upon customer
requirements, much time and effort may be wasted in trying to force
the process to conform. Chapter IV deals with selected capability and
performance indices and contains advice on the application of those
indices.

22
 CHAPTER 1 – Section E
Process Control and Process Capability

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23
CHAPTER 1 – Section F
The Process Improvement Cycle and Process Control

Figure I.4: The Process Improvement Cycle

24
 CHAPTER 1 – Section F
The Process Improvement Cycle and Process Control

CHAPTER I - Section F
The Process Improvement Cycle and Process Control
In applying the concept of continual improvement to processes,
there is a three-stage cycle that can be useful (see Figure L4). Every
process is in one of the three stages of the Improvement Cycle.

1. Analyze the Process

A basic understanding of the process is a must when considering
process improvement. Among the questions to be answered in order
to achieve a better understanding of the process are:
• What should the process be doing?
9 What is expected at each step of the process?
9 What are the operational definitions of the deliverables?
• What can go wrong?
9 What can vary in this process?
9 What do we already know about this process' variability?
9 What parameters are most sensitive to variation?
• What is the process doing?
9 Is this process producing scrap or output that requires rework?
9 Does this process produce output that is in a state of statistical
control?
9 Is the process capable?
9 Is the process reliable?

Many techniques discussed in the APQP Manual 7 may be applied to

gain a better understanding of the process. These activities include:

• Group meetings
• Consultation with people who develop or operate the process
("subject matter experts")
• Review of the process' history
• Construction of a Failure Modes and Effects Analysis (FMEA)

Control charts explained in this manual are powerful tools that should
be used during the Process Improvement Cycle. These simple
statistical methods help differentiate between common and special
causes of variation. The special causes of variation must be
addressed. When a state of statistical control has been reached, the
process' current level of long-term capability can be assessed (see
Chapter IV).

7
Chrysler, Ford, and General Motors, (1995).
25
CHAPTER 1 – Section F
The Process Improvement Cycle and Process Control

2. Maintain (Control) the Process

Once a better understanding of the process has been achieved, the
process must be maintained at an appropriate level of capability.
Processes are dynamic and will change. The performance of the
process should be monitored so effective measures to prevent
undesirable change can be taken. Desirable change also should be
understood and institutionalized. Again, the simple statistical
methods explained in this manual can assist. Construction and use of
control charts and other tools will allow for efficient monitoring of
the process. When the tool signals that the process has changed,
quick and efficient measures can be taken to isolate the cause(s) and
act upon them.
It is too easy to stop at this stage of the Process Improvement Cycle.
It is important to realize that there is a limit to any company's
resources. Some, perhaps many, processes should be at this stage.
However, failure to proceed to the next stage in this cycle can result
in a significant competitive disadvantage. The attainment of "world
class" requires a steady and planned effort to move into the next
stage of the Cycle.

3. Improve the Process

Up to this point, the effort has been to stabilize the processes and
maintain them. However, for some processes, the customer will be
sensitive even to variation within engineering specifications (see
Chapter IV). In these instances, the value of continual improvement
will not be realized until variation is reduced. At this point,
additional process analysis tools, including more advanced statistical
methods such as designed experiments and advanced control charts
may be useful. Appendix H lists some helpful references for further
study.
Process improvement through variation reduction typically involves
purposefully introducing changes into the process and measuring the
effects. The goal is a better understanding of the process, so that the
common cause variation can be further reduced. The intent of this
reduction is improved quality at lower cost.
When new process parameters have been determined, the Cycle
shifts back to Analyze the Process. Since changes have been made,
process stability will need to be reconfirmed. The process then
continues to move around the Process Improvement Cycle.

26
 CHAPTER 1 – Section F
The Process Improvement Cycle and Process Control

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27
CHAPTER 1 – Section G
Control Charts: Tools For process Control and Improvement

Figure I.5: Control Charts

28
 CHAPTER 1 – Section G
Control Charts: Tools For process Control and Improvement

CHAPTER I - Section G
Control Charts:
Tools For Process Control and Improvement
In his books 8, Dr. W. E. Deming identifies two mistakes frequently
made in process control:

“Mistake 1. Ascribe a variation or a mistake to a special cause, when

in fact the cause belongs to the system (common causes).
Mistake 2. Ascribe a variation or a mistake to a system (common
causes), when in fact the cause was special.
Over adjustment [tampering] is a common example of mistake No.
1. Never doing anything to try to find a special cause is a common
example of mistake No.2."

For effective variation management during production, there must be

an effective means of detecting special causes. There is a common
misconception that histograms can be used for this purpose.
Histograms are the graphical representation of the distributional form
of the process variation. The distributional form is studied to verify
that the process variation is symmetric and unimodal and that it
follows a normal distribution.
Unfortunately normality does not guarantee that there are no
special causes acting on the process. That is, some special
causes may change the process without destroying its
symmetry or unimodality. Also a non-normal distribution may
have no special causes acting upon it but its distributional form
is non-symmetric.

Time-based statistical and probabilistic methods do provide

necessary and sufficient methods of determining if special causes
exist. Although several classes of methods are useful in this task, the
most versatile and robust is the genre of control charts which were
first developed and implemented by Dr. Walter Shewhart of the Bell
Laboratories 9 while studying process data in the 1920's. He first
made the distinction between controlled and uncontrolled variation
due to what is called common and special causes. He developed a
simple but powerful tool to separate the two – the control chart.
Since that time, control charts have been used successfully in a wide
variety of process control and improvement situations. Experience
has shown that control charts effectively direct attention toward
special causes of variation when they occur and reflect the extent of
common cause variation that must be reduced by system or process
improvement.
It is impossible to reduce the above mistakes to zero. Dr. Shewhart
realized this and developed a graphical approach to minimize, over
the long run, the economic loss from both mistakes.

8
Deming (1989) and Deming (1994).
9
Shewhart (1931).
29
CHAPTER 1 – Section G
Control Charts: Tools For process Control and Improvement

If process control activities assure that no special cause sources of

variation are active 10, the process is said to be in statistical control
or "in control." Such processes are said to be stable, predictable, and
consistent since it is possible to predict 11 the performance of the
process.
The active existence of any special cause will render the process out
of statistical control or "out of control." The performance of such
unstable processes cannot be predicted.

How do they work?

Control Limits
When Shewhart developed control charts he was concerned with the
economic control of processes; i.e., action is taken on the process
only when special causes are present. To do this, sample statistics
are compared to control limits. But how are these limits determined?
Consider a process distribution that can be described by the normal
form. The goal is to determine when special causes are affecting it.
Another way of saying this is, "Has the process changed since it was
last looked at it or during the period sampled?"

Shewhart's Two Rules for the Presentation of Data:

Data should always be presented in such a way that preserves the
evidence in the data for all the predictions that might be made from
these data.
Whenever an average, range, or histogram is used to summarize
data, the summary should not mislead the user into taking any
action that the user would not take if the data were presented in a
time series.

Since the normal distribution is described by its process location

(mean) and process width (range or standard deviation) this question
becomes: Has the process location or process width changed?

Consider only the location. What approach can be used to determine

if the process location has changed? One possibility would be to look

10
This is done by using the process information to identify and eliminate the existence of special
causes or detecting them and removing their effect when they do occur.
11
As with all probabilistic methods some risk is involved. The exact level of belief in prediction of
future actions cannot be determined by statistical measures alone. Subject-matter expertise is
required.
30
 CHAPTER 1 – Section G
Control Charts: Tools For process Control and Improvement

at every part produced by the process, but that is usually not

economical. The alternative is to use a sample of the process, and
calculate the mean of the sample.

If the process has not changed, will the sample mean be

equal to the distribution mean?
The answer is that this very rarely happens. But how is this
possible? After all, the process has not changed. Doesn't that imply
that the process mean remains the same? The reason for this is that
the sample mean is only an estimation of the process mean.
To make this a little clearer, consider taking a sample of size one.
The mean of the sample is the individual sample itself. With such
random samples from the distribution, the readings will eventually
cover the entire process range. Using the formula:

Range of the distribution of means = Process Range

for a sample of size four, the resulting range of sample averages

will be
of the process range; for a sample of size 100 it will be
of the process range. 12

Shewhart used this sampling distribution to establish an operational

definition of "in statistical control." First, start off with the
assumption that the process is in statistical control, i.e., innocent
until proven guilty. Then, compare the sample to the sampling
distribution using the +3 standard deviation limits 13. These are
called control limits. If the sample falls outside these limits then
there is reason to believe that a special cause is present. Further, it
is expected that all the (random) samples will exhibit a random
ordering within these limits. If a group of samples shows a pattern
there is reason to believe that a special cause is present. (see chapter
I, Section C, and Chapter II, Section A).

12
See the Central Limit Theorem.
13
Sewhart selected the ±3 standard deviation limits as useful limits in achieving the economic control
of processes.
31
CHAPTER 1 – Section G
Control Charts: Tools For process Control and Improvement

Distribution of Averages Distribution of Individuals

LCL UCL
due to Sampling Variation

In general, to set up a control chart we calculate:

Centerline = average of the statistic being analyzed

UCL = upper control limit = centerline + 3 x standard deviation of the averages

LCL = lower control limit = centerline - 3 x standard deviation of the averages

Approach:

Since Control Charts provide the operational definition of "in

statistical control," they are useful tools at every stage of the
Improvement Cycle (see Chapter I, Section F). Within each stage, the
PDSA 14 cycle should be used.

For analysis of existing data sets

For the Analysis and Improvement stages of the cycle:

• Review the data:

9 Is the metric appropriate; i.e., does it reflect a process
attribute and tied to a key business factor?
9 Are the data consistent; i.e., is the same operational
definition used by all parties collecting the data?
9 Are the data reliable; i.e., is a planned data collection
scheme utilized?
9 Is the measurement system appropriate and acceptable?
• Plot the data:
9 Plot using the time order
9 Compare to control limits and determine if there are any
points outside the control limits

14
Plan-Do-Study-Act cycle; also known as the PDCA, (Plan-Do-Check-Act) cycle.
32
 CHAPTER 1 – Section G
Control Charts: Tools For process Control and Improvement

9 Compare to the centerline and determine if there are any

non-random patterns clearly discernible
• Analyze the data

• Take appropriate action

The data are compared with the control limits to see whether the
variation is stable and appears to come from only common causes. If
special causes of variation are evident, the process is studied to
further determine what is affecting it. After actions (see Chapter I,
Section D) have been taken, further data are collected, control limits
are recalculated if necessary, and any additional special causes are
acted upon.
After all special causes have been addressed and the process is
running in statistical control, the control chart continues as a
monitoring tool. Process capability can also be calculated. If the
variation from common causes is excessive, the process cannot
produce output that consistently meets customer requirements. The
process itself must be investigated, and, typically, management
action must be taken to improve the system.
For control
• Review the data collection scheme before starting:
9 Is the metric appropriate; i.e., does it reflect a process
attribute and tied to a key business factor?
9 Will the data be consistent; i.e., is the same operational
definition used by all parties collecting the data?
9 Will the data be reliable; i.e., is a planned data collection
scheme used?
9 Is the measurement system appropriate and acceptable?
• Plot each point as it is determined:
9 Compare to control limits and determine if there are any
points outside the control limits
9 Compare to the centerline and determine if there are any
non-random patterns clearly discernible
• Analyze the data

• Take appropriate action:

9 Continue to run with no action taken; or
9 Identify source of the special cause and remove (if
unacceptable response) or reinforce (if acceptable
response); or
9 Continue to run with no action taken and reduce sample
size or frequency; or
9 Initiate a continual improvement action

Often it is found that although the process was aimed at the target
value during initial setup, the actual process location ( ) 15 may
not match this value.

l5
The Greek letter is used to indicate the actual process mean, which is estimated by the sample
mean .
33
CHAPTER 1 – Section G
Control Charts: Tools For process Control and Improvement

For those processes where the actual location deviates from the
target and the ability to relocate the process is economical,
consideration should be given to adjusting the process so that it
is aligned with the target (see Chapter IV, Section C). This
assumes that this adjustment does not affect the process
variation. This may not always hold true, but the causes for any
possible increase in process variation after re-targeting the
process should be understood and assessed against both
customer satisfaction and economics.
The long-term performance of the process should continue to
be analyzed. This can be accomplished by a periodic and
systematic review of the ongoing control charts. New evidence
of special causes might be revealed. Some special causes,
when understood, will be beneficial and useful for process
improvement Others will be detrimental, and will need to be
corrected or removed.

The purpose of the Improvement Cycle is to gain an understanding

of the process and its variability to improve its performance. As this
understanding matures, the need for continual monitoring of
product variables may become less – especially in processes
where documented analysis shows that the dominant source of
variation are more efficiently and effectively controlled by other
approaches. For example: in processes where maintenance is the
dominant source of variation, the process is best controlled by
preventive and predictive maintenance; for processes where
process setup is the dominant source of variation, the process is
best controlled by setup control charts.

For a process that is in statistical control, improvement efforts will

often focus on reducing the common cause variation in the process.
Reducing this variation will have the effect of "shrinking" the
control limits on the control chart (i.e., the limits, upon their
recalculation, will be closer together). Many people, not familiar
with control charts, feel this is "penalizing" the process for
improving. They do not realize that if a process is stable and the
control limits are calculated correctly, the chance that the process
will erroneously yield an out-of-control point is the same
regardless of the distance between the control limits (see Chapter I,
Section E).
One area deserving mention is the question of recalculation of
control chart limits. Once properly computed, and if no changes to
the common cause variation of the process occur, then the control
limits remain legitimate. Signals of special causes of variation do
not require the recalculation of control limits. For long-term
analysis of control charts, it is best to recalculate control limits as
infrequently as possible; only as dictated by changes in the process.
For continual process improvement, repeat the three stages of the
Improvement Cycle: Analyze the Process; Maintain (Control) the
Process; Improve the Process, see Figure I.4.

34
 CHAPTER 1 – Section G
Control Charts: Tools For process Control and Improvement

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35
CHAPTER 1 – Section H
Effective Use and Benefits Of Control Charts

B E N E F I T S OF C O N T R O L CHARTS

Properly used, control charts can:

• Be used by operators for ongoing control of a process
• Help the process perform consistently and predictably
• Allow the process to achieve
— Higher quality
— Lower unit cost
— Higher effective capability
• Provide a common language for discussing the performance
of the process
• Distinguish special from common causes of variation, as a
guide to local action or action on the system.

36
 CHAPTER 1 – Section H
Effective Use and Benefits Of Control Charts

CHAPTER I - Section H
Effective Use and Benefits of Control Charts
Important benefits can be obtained from the effective use of control
charts. The gains and benefits from the control charts are directly
related to the following:
Management Philosophy: How the company is managed can
directly impact the effectiveness of SPC.
The following are examples of what needs to be present:
• Focus the organization on variation reduction.

• Establish an open environment that minimizes internal

competition and supports cross-functional teamwork.
• Support and fund management and employee training in the
proper use and application of SPC.
• Show support and interest in the application and resulting
benefits of properly applied SPC. Make regular visits and asks
questions in those areas.
• Apply SPC to promote the understanding of variation in
engineering processes.
• Apply SPC to management data and use the information in
day-to-day decision making.

The above items support the requirements contained in ISO

9000:2000 and ISO/TS 16949:2002.

Engineering Philosophy: How engineering uses data to develop

designs can and will have an influence on the level and type of
variation in the finished product.
The following are some ways that engineering can show effective
use of SPC:
• Focus the engineering organization on variation reduction
throughout the design process; e.g., number of design
changes, design for manufacturing and assembly, personnel
moves, etc.
• Establish an open engineering environment that minimizes
internal competition and supports cross-functional teamwork.
• Support and fund engineering management and employees
training in the proper use and application of SPC.
• Apply SPC to promote the understanding of variation in
engineering processes.
• Require an understanding of variation and stability in relation
to measurement and the data that are used for design
development.

37
CHAPTER 1 – Section H
Effective Use and Benefits Of Control Charts

• Support engineering changes proposed due to analysis of SPC

information to aid in the reduction of variation.

Manufacturing: How manufacturing develops and operates

machines and transfer systems can impact the level and type of
variation in the finished product:

• Focus the manufacturing organization on variation reduction;

e.g., number of different processes, impact of multi-fixture and
multi-tool processes, tool and machine maintenance, etc.
• Establish an open engineering environment that minimizes
internal competition and supports cross-functional teamwork.
• Support and fund manufacturing management and employees
training in the proper use and application of SPC.
• Apply SPC in the understanding of variation in the
manufacturing processes.
• Require an understanding of variation and stability in relation to
measurement and the data that are used for process design
development.
• Use the analysis of SPC information to support process changes
for the reduction of variation.
• Do not release control charts to operators until the process is
stable. The transfer of responsibility for the process to
production should occur after the process is stable.
• Assure proper placement of SPC data for optimum use by the
employees.

Quality Control: The Quality function is a critical component in

providing support for an effective SPC process:

• Support SPC training for management, engineering, and

employees in the organization.
• Mentor key people in the organization in the proper application
of SPC.
• Assist in the identification and reduction of the sources of
variation.
• Ensure optimum use of SPC data and information.

Production: Production personnel are directly related to the process

and can affect process variation. They should:

• Be properly trained in the application of SPC and problem

solving.
• Have an understanding of variation and stability in relation to
measurement and the data that are used for process control and
improvement.
• Be alert to and communicate when conditions change.
• Update, maintain and display control charts within area of
responsibility.

38
 CHAPTER 1 – Section H
Effective Use and Benefits Of Control Charts

• Interact and learn about the process from the information

collected.

• Use the SPC information in real time to run the process.

Application of the concepts outlined above will result in the proper

environment for the understanding and reduction of variation. Then
the Plan-Do-Study-Act process can be used to further improve the
process.

At a minimum, the use of SPC for process monitoring will result in

the process being maintained at its current performance level.
However, real improvements can be achieved when SPC is used to
direct the way processes are analyzed.

Proper use of SPC can result in an organization focused on

improving the quality of the product and process.

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CHAPTER 1 – Section H
Effective Use and Benefits Of Control Charts

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