Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

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Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke

Transcript of Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Page 1: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Using Control Charts to Keep an Eye on Variability

Operations Management

Dr. Ron Lembke

Page 2: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Goal of Control Charts See if process is “in control”

Process should show random values No trends or unlikely patterns

Visual representation much easier to interpret Tables of data – any patterns? Spot trends, unlikely patterns easily

Page 3: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

NFL Control Chart?

Page 4: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Control Charts

UCL

LCL

avg

Values

Sample Number

Page 5: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Definitions of Out of Control1. No points outside control limits

2. Same number above & below center line

3. Points seem to fall randomly above and below center line

4. Most are near the center line, only a few are close to control limits

1. 8 Consecutive pts on one side of centerline

2. 2 of 3 points in outer third

3. 4 of 5 in outer two-thirds region

Page 6: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Control Charts

Normal Too Low Too high

5 above, or below Run of 5 Extreme variability

Page 7: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Control Charts

UCL

LCL

avg

Page 8: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Control Charts

2 out of 3 in the outer third

Page 9: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Out of Control Point? Is there an “assignable cause?”

Or day-to-day variability?

If not usual variability, GET IT OUT Remove data point from data set, and recalculate

control limits

If it is regular, day-to-day variability, LEAVE IT IN Include it when calculating control limits

Page 10: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Attributes vs. VariablesAttributes: Good / bad, works / doesn’t count % bad (P chart) count # defects / item (C chart)

Variables: measure length, weight, temperature (x-bar

chart) measure variability in length (R chart)

Page 11: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

p Chart Control Limits

# Defective Items in Sample i

# Samples

Sample iSize

z = 2 for 95.5% limits z = 3 for 99.7% limitsp = avg defect raten = avg sample sizesp = sample std dev

pp szpUCL

pp szpLCL

n ni

i1

k

k

p X i

i1

k

ni

i1

k

n

ppsp

)1(

Page 12: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

p Chart ExampleYou’re manager of a 1,700 room hotel. For 7 days, you collect data on the readiness of all of the rooms that someone checked out of. Is the process in control (use z = 3)?

© 1995 Corel Corp.

Page 13: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

p Chart Hotel Data# Rooms No. Not Proportion

Day n Ready p

1 1,300 130 130/1,300 =.1002 800 90 .1133 400 21 .0534 350 25 .0715 300 18 .066 400 12 .037 600 30 .05

Page 14: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

p Chart Control Limits

079.0150,4

326

150,4

30...90130

1

1

k

ii

k

ii

n

Xp

8.5927

150,4

7

600...80013001

k

nn

k

ii

068.7/)05.0...113.010.0( p

Page 15: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

p Chart Solution

8.592,079.0 np

111.0*3079.0CL pszp

0457.0LCL,1123.0UCL

0333.0079.0

0111.0

8.592

079.01079.01sp

n

pp

Page 16: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Hotel Room Readiness P-Bar

1 2 3 4 5 6 70

0.02

0.04

0.06

0.08

0.1

0.12

UCL

Actual

LCL

Page 17: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

R Chart Type of variables control chart

Interval or ratio scaled numerical data

Shows sample ranges over time Difference between smallest & largest values

in inspection sample

Monitors variability in process Example: Weigh samples of coffee &

compute ranges of samples; Plot

Page 18: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Why do we need 2 charts?Consistent, but the average is in the wrong place

UCL

LCL

UCL

LCL

X-Bar Chart R Chart

The average works out ok, but way too much variability between points

X-Bar Chart R Chart

UCL

LCL

UCL

LCL

Page 19: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

You’re manager of a 500-room hotel. You want to analyze the time it takes to deliver luggage to the room. For 7 days, you collect data on 5 deliveries per day. Is the process in control?

Hotel Example

Page 20: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Hotel DataDay Delivery Time

1 7.30 4.20 6.10 3.455.552 4.60 8.70 7.60 4.437.623 5.98 2.92 6.20 4.205.104 7.20 5.10 5.19 6.804.215 4.00 4.50 5.50 1.894.466 10.10 8.10 6.50 5.066.947 6.77 5.08 5.90 6.909.30

Page 21: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

R &X Chart Hotel Data

SampleDay Delivery TimeMean Range

1 7.30 4.20 6.10 3.45 5.555.32 7.30 + 4.20 + 6.10 + 3.45 + 5.55

5Sample Mean =

Page 22: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

R &X Chart Hotel Data

SampleDay Delivery TimeMean Range

1 7.30 4.20 6.10 3.45 5.555.32 3.85

7.30 - 3.45Sample Range =

Largest Smallest

Page 23: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

R &X Chart Hotel Data

SampleDay Delivery TimeMean Range

1 7.30 4.20 6.10 3.45 5.555.32 3.85

2 4.60 8.70 7.60 4.43 7.626.59 4.27

3 5.98 2.92 6.20 4.20 5.104.88 3.28

4 7.20 5.10 5.19 6.80 4.215.70 2.99

5 4.00 4.50 5.50 1.89 4.464.07 3.61

6 10.10 8.10 6.50 5.06 6.947.34 5.04

7 6.77 5.08 5.90 6.90 9.306.79 4.22

Page 24: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

R Chart Control Limits

UCL D R

LCL D R

R

R

k

R

R

ii

k

4

3

1

Sample Range at Time i

# Samples

Table 10.3, p.433

Page 25: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Control Chart Limits, p.161

n A2 D3 D4

2 1.88 0 3.278

3 1.02 0 2.57

4 0.73 0 2.28

5 0.58 0 2.11

6 0.48 0 2.00

7 0.42 0.08 1.92

Page 26: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

R Chart Control Limits

894.37

22.4...27.485.31

k

RR

k

ii

0894.3*0*

232.8894.3*11.2*

3

4

RDLCL

RDUCL

R

R

10.3 Table from , 43 DD

Page 27: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

R Chart Solution

1 2 3 4 5 6 70

1

2

3

4

5

6

7

8

9

UCLRangeLCL

Page 28: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

X Chart Control Limits

k

RR

k

XX

RAXUCL

k

ii

k

ii

X

11

2

Sample Range at Time i

# Samples

Sample Mean at Time i

Page 29: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

X Chart Control LimitsA2 from Table 10-3

k

RR

k

XX

RAXLCL

RAXUCL

k

ii

k

ii

X

X

11

2

2

Page 30: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Control Chart Factors, p. 161

n A2 D3 D4

2 1.88 0 3.278

3 1.02 0 2.57

4 0.73 0 2.28

5 0.58 0 2.11

6 0.48 0 2.00

7 0.42 0.08 1.92

Page 31: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

R &X Chart Hotel Data

SampleDay Delivery TimeMean Range

1 7.30 4.20 6.10 3.45 5.555.32 3.85

2 4.60 8.70 7.60 4.43 7.626.59 4.27

3 5.98 2.92 6.20 4.20 5.104.88 3.28

4 7.20 5.10 5.19 6.80 4.215.70 2.99

5 4.00 4.50 5.50 1.89 4.464.07 3.61

6 10.10 8.10 6.50 5.06 6.947.34 5.04

7 6.77 5.08 5.90 6.90 9.306.79 4.22

Page 32: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

X Chart Control Limits

894.37

22.4...27.485.3

813.57

79.6...59.632.5

1

1

k

RR

k

XX

k

ii

k

ii

566.3894.3*58.0813.5*

060.8894.3*58.0813.5*

2

2

RAXLCL

RAXUCL

X

X

Page 33: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

X Chart Solution*

1 2 3 4 5 6 70

1

2

3

4

5

6

7

8

9

UCLMeanLCL

Page 34: Using Control Charts to Keep an Eye on Variability Operations Management Dr. Ron Lembke.

Summary Overview of “In Control” Attribute vs Continuous Control Charts P Charts X-bar and R charts