Academic Group 39

Deepak Gupta| PGP-18-183

Manaswi Sankrityayan | PGP-18-200
Pazhani Raj Thanuj| PGP-18-206
Preet Shah | PGP-18-240
Varun Singh| PGP-18-234

STATISTICAL PROCESS CONTROL

IMPLEMENTATION IN AN INDUSTRIAL CONTEXT

Abstract

Usage of statistics in process control has proved to be very effective in reducing waste and improving
efficiency of processes in various industries. Process control concerns itself with the monitoring of quality as
the products or services are being manufactured or produced. The archetypal objectives pertaining to process
control plans are generally concerned about providing information on a timely basis regarding the fulfilment
of the design specifications of the currently produced items while additionally being able to detect process
shifts that point towards future products not being able to meet specifications. Statistical Process Control
(SPC) encompasses testing a random output sample from a process to conclude whether the concerned process
is manufacturing products within a predetermined range.

In this project, we have examined current business practices in manufacturing and the service industry.
Through this, we aim to provide insights regarding principles of Statistical Process Control and by extension
Quality control, how SPC can help improve processes in industries, why SPC is a must in current scenario
and various method of implementing the tools associated to it.

Introduction

Walter A. Shewhart is considered to be the pioneer of SPC while being at Bell Laboratories in the early 1920s.
The concept of control chart was developed by 1924 and the notion of a state of statistical control.

In other words, SPC is a process of quality control which utilizes statistical methods to observe and control a
process. This helps in ensuring the efficient operation of a process, manufacturing more specification-
conforming items with comparatively lesser waste (in the form of rework or scrap). Key quality control tools
(commonly known as the 7 QC tools) used as part of SPC include control charts, run charts, design of
experiments and a focus on continuous improvement. An advantage of statistical process control over other
approaches of quality control, like "inspection", is that it stresses on the principle of early detection and
problem prevention, in contrast to the reactionary approach of correcting problems after they have occurred.

SPC has a distinct set method and is proceeded in 2 phases: Initial formation of the process makes up the first
phase, while the second phase is the processes’ regular production use. In the second phase, a decision of the
period to be inspected must be made, generally depending on a change in the wear rate of parts used in the
manufacturing process (jigs, fixtures and machine parts) and 5M &1E conditions (which are Man, Machine,
Material, Method, Movement and Environment).

The basic value of improving processes is on the assumption that the variability in the values of the quality
indices have two types of causes:

1. Random causes (chance, common causes) are a part of the process which are permanent in nature and
influence all process components. They are responsible for a wide variety of individually
unidentifiable causes, which cumulatively contributes slightly towards the overall variability in a said
process.
 2. Assignable causes (definable, special causes) forms the non-permanent part of the process, as they do
not influence every process component available but arise as a result of particular circumstances. They
bring real changes in a process, which gets reflected in the abnormal fluctuation in data used for
assessing process variability.

Figure 1. SPC Implementation steps

DMAIC (Define, Measure, Analyse, Improve and Control) pertains to a data-driven improvement cycle
utilized for optimizing, improving and stabilizing business designs and processes. The DMAIC improvement
cycle is the essential tool used to drive Six Sigma projects and by extension forms an integral part of the SPC
techniques.

Define - The purpose of this step is to appropriately explain the business problem, project scope, goal, potential
resources, and project timeline. This information is generally recorded in the project charter. This includes
writing down what we currently know, while seeking to clarify facts, set clear objectives and create the project
team.

Measure - The objective of this step is to factually form current baselines as the reference for improvement.
This is considered as a data collection step, the primary aim of which is to form baselines for process
performance. Comparison of the performance metric baseline from the Measure step with the performance
metric is done at the conclusion of the project to determine tangibly whether any worthwhile improvement
has been realized. The team chooses what needs to be measured and how to measure it.

Analyse - The objective of this step is to recognise, validate and choose root cause for elimination. Potential
root causes in large number for the project problem are identified through root cause analysis (Ishikawa or
fishbone diagram). The top 4-5 potential root causes are chosen using consensus tools like multi-voting for
further confirmation and validation. Formation of a data collection plan is done and data is curated to identify
the relative contribution of each root cause with respect to the project metric. Repeating of this process is done
until "valid" root causes are identified.

Improve - This step is aimed at identifying, testing and implementing a solution for the problem at hand; in
part or for the entire whole problem which depends on the situation. Identification of creative solutions to
eliminate the major root causes are required to fix and prevent process problems. Brainstorming or techniques
like Random Word and Six Thinking Hats are utilized.

Control - The main purpose of this step is to sustain the gains made through the improvement process.
Monitoring of the improvements is required to ensure sustained and continuous success. A control plan needs
to be created while the updating of documents, business process and training records are required as well. A
Control chart can thus be helpful during the Control stage to measure the stability of the improvements over
a period of time by acting as

1. A guide to continuously monitor the process and,

2. Deliver a response plan for all the measures being monitored in the situation where the process becomes
unstable.

Literature Review

Through the thorough investigation of academic journals, we were able to clearly present the idea of
implementation of Statistical Process Control for both the major category of industries in question, the
manufacturing as well as the service industry.

Gejdoš (2015) put forth the idea regarding the application of particular tools of statistical process control,
using which we can attain continuous quality improvement. The distinct advantage these tools presented was
the ease in identifying the effects of the processes that leads to abnormal variability in processes that causes
errors and by extension, poor quality. Tools like histogram, control chart, model DMAIC, capability index
etc. can consistently determine the processes’ anomalous variability and thus add to the quality improvement.
In the paper through Shewhart control charts action and histograms revealing the systemic consequences of
the processes and therefore abnormal variability in processes, which can lead to non-compliance. The results
evidently show that the DMAIC model can consistently and systematically lead to improved quality.
Additionally, Shewhart control charts show that the examined processes are under statistical control while,
the histograms showcases the contribution of the normal distribution of frequencies observed quality
characteristics. Hence, there was sufficient evidence to conclude that the use of DMAIC model as well as
other statistical quality tools can be realistically used to achieve continuous quality improvement.

On the feasibility of application of SPC in the manufacturing sector of a developing country, Madanhire and
Mbohwa (2016) focused on reviewing the statistical process control tool in manufacturing systems with the
extensive aim of improving them to improve on cost and quality effectiveness. It signifies an attempt to tackle
the lack of literature in the field of SPC implementation. With a special emphasis on early detection and
prevention of the problems, statistical process control was revealed to have a unique advantage over other
quality methods like inspection of the end product. There was a multi-pronged need to check machines and
gauges, and determine need for some overhaul or maintenance work to be taken up as faulty machines were
not capable of producing good quality products. Additionally, there was need of training for the operators,
actions for the future to be agreed on and, new documents to be produced. A system of checking the progress
and monitoring the result was to be followed with as much importance as that given to general financial results.

Similarly, in case of application of SPC in a service sector business, Mirzaei et al. (2016) took a survey and
analysed a restaurant in a college campus in Cyprus with the aim of applying SPC to improve the quality and
efficiency of the service operations at the restaurant. The study utilized the tools such as cause-and-effect
analysis, Pareto chart, and the SERVQUAL methodology to measure and improve the quality of the system.
The SERVQUAL technique uses the concept of customer expectations versus customer perceptions in order
to measure the level of service quality. Customers’ judgment about services that they receive and entity’s
overall value or advantage makes up the perceived quality.

Figure 2. SERVQUAL Model (Parasuraman et al. (1988))

The authors concluded by suggesting that the proposed model can mentor and guide service managers to
monitor and increase service quality while creating a more competent and satisfactory service environment
for the customers. In order to generalize the proposed model, the authors proposed the application of this
model in other service industries as well where the quality of the system is assessed based on the customer
satisfaction, such as in banking, telecom and restaurants.

The concept of statistical process control can be extended to the industry as a service as well which has been
covered in detail by Škulj et al. (2013) where a service-driven approach for SPC is proposed, by the route of
outsourcing through the use of modern communication and information technologies, like the web services.
Strong operations support is a major requirement for success in a competitive environment of modern
manufacturing firms.

Figure 3. Manufacturing operations support - eSPC role

To attain this, a SPC proposal for a service-driven approach is made through utilizing the modern
communication and information technology (ICT) solutions in order to build a distributed electronic SPC
system (eSPC). The heart of the system will be a web service, which delivers the means for remotely creating
SPC reports such as control charts.

Statistical Process Control in India

Indian industries are thriving to excel in SPC to reduce defects per unit (DPU) in products on a large scale
now. Additionally, waste and productivity of their operations have significantly improved because of the
cascading effect. SPC and as an extension quality control is a must to remain competitive in industry both
locally and globally. With the current phenomenal growth in India of manufacturing as well as service sector,
Indian industry is incorporating SPC tools as a part of the lean strategies as well to enhance performance and
retain market share by providing better quality of services and goods. Automobile, Aerospace and
Pharmaceutical sectors have highest penetration of SPC practices in their operations. Rai (2008) studied the
status of implementation and usage of SPC in various sectors in Indian industry. Following table highlights
the study,

Industry Sector Level of Penetration

Automobile, Auto Ancillaries Very High

FMCG Low to Medium

Pharmaceutical High to Very High

Aerospace Very High

Machine Tool Medium to High

Table 1. Industry-wise penetration level

Statistical Process Control implementation in Manufacturing Industry

Case of Daimler Trucks Asia – Powertrain Connecting Rod Fabrication Process

Taking the case of a powertrain production unit in a manufacturing industry setting, we were able to get the
quality control data for the connecting rod fabrication process. As the process is a critical constituent for the
final engine assembly, there is an additional impetus for consistent high quality output which is ensured
through the use of SPC tools such as run charts, histograms and control charts. As per the data we were able
to gather, during the production process, there is the possibility of occurrence of 88 defects or errors. The
connecting rod – the product in question, includes 12 critical parameters according to customer and product
specifications. Through the utilization of Pareto analysis of the 12 parameters we were able to divide them
into two groups. The parameters included in the first group are required to be controlled during the production
process due to the higher possibility of occurrence of quality defects. The parameters included in the second
group do not necessarily need special procedural attention as they are crucially on the instrument that depend
on the release and dimensional measuring will create distortions at the minimum possible level. Table 2
illustrates the 7 critical parameters from the first group,

Parameter Product Specifications

1 Cone Location 0.55 ± 0.1 mm

2 Toothing Gear Height 2.11 ± 0.05 mm

3 Radial distance of tooth to cone <0.16 mm

4 Cone Roundness <0.04 mm

5 Angle of Cone, Ca 6.60 10’ ± 15’

6 Bridge-gearing replacer 4.65 ± 0.1 mm

7 Roller Gearing dimension 80.707 – 80.925 mm

Table 2. Critical Quality Parameters – 1st Group

Utilizing the DMAIC model,

D – Measure – A – I - C

In this part focus was given for the measurement of critical parameters in the first group. Due to limited
resources, the scope of the investigated sample data points was set at, n = 100. Sampling data was churned out
at a regular interval of 10 minutes. On each of the individual sample data points, measurements for all the
seven critical parameters were made.

D – M – Analyze – I - C

According to the standard IATF 16949, measured values were arranged in 25 subgroups each of size 4. We
evaluate them in order to obtain the capability index Cpk and check which of the parameters are meeting the
requirements for process capability. For parameters with a capability index below 1.67 we present the
Shewhart control charts.
 Parameter

1 2 3 4 5 6 7

Maximum Value 0.614 2.108 0.088 0.035 6.500 4.631 80.820

Minimum Value 0.516 2.079 0.022 0.012 6.443 4.596 80.750

R 0.098 0.029 0.066 0.023 0.057 0.035 0.07

Standard Deviation, s 0.0213 0.0061 0.0153 0.00478 0.0109 0.0071 0.0145

Average, x 0.5684 2.0956 0.0491 0.02033 6.4743 4.6135 80.7855

Upper Spec Limit (USL) 0.650 2.160 0.160 0.040 6.582 4.750 80.707

Lower Spec Limit (LSL) 0.450 2.060 - - 6.249 4.550 80.925

Cpk 1.434 2.445 2.199 1.369 3.369 4.083 1.714

Table 3. Analyzed Data for critical characteristics

As shown by the indicator Cpk, five of the parameters satisfies the underlying condition of process capability
Cpk > 1.67. Our aim is to analyze the effects that are leading to the disqualification/non-conformance for the
process with respect to the two parameters as studied in the table.

Figure 4. Histograms for non-conforming characteristics – Cone Location & Cone Roundness

Checking for these non-conforming characteristics, using the Shewhart control charts, for Cone Location,

USL

UCL

LCL

LSL

Figure 5. Control Chart for Cone Location

 USL

UCL

LCL

LSL

Figure 6. Control Chart for Roundness of cone

D – M – A – Improve - Control

From the statistical analysis of the Shewhart charts, we were able to determine that the steadiness of the
performance of the process in question cannot be decreased by eliminating non-random cause/assignable cause
variability. It was consequently important for us to assess the current state of quality control in the product
process. After reviewing all the results of the analysis and identifying possible solutions, we can conclude that
to improve the results achieved by the powertrain department, it could use other methods such as ANOVA,
Poka Yoke, Six Sigma, DOE and other means, which can help in improving the performance of their
processes, which is already currently high.

Observations and Result

As we can visualize through the results, that powertrain department is successfully managing quality
improvement tool such as SPC can help achieve very high performance of the related processes and associated
products. The results confirm the claims made by various authors about the positive effects of SPC and a few
other quality tools for attaining continuous quality improvement. Our assumption was hence, confirmed by
the following case analysis

Statistical Process Control in Service Industry

The services industry in the USA amounts for almost 80% of their total GDP and in case of India, it is close
to 54% of the GDP. In the past few decades, the service industry of India has also served as a significant part
of exports. The conspicuous rise in globalization of businesses and an ever growing demand for cost effective
solutions have led the services industry to strive amidst a constant pressure for high productivity, quality with
focus on increased flexibility and cutting down on lead times.

Service platforms have advanced majorly from the SPC tools in the various circumstances. SPC principles
and methods have been defined and illustrated in the framework of service industry by Deming (1986), who
had aimed to improve the usage of his quality philosophy for all the processes, including the services. Coming
to the service sector, SPC tools such as control charts have been used liberally and applied in sectors such as
healthcare. Utilizing continuous quality improvement while making use of professional techniques such as
supplier quality evaluation, customer satisfaction evaluation, processes control and statistical quality analysis,
competitive benchmarking and supply chain management to improve the quality of system in the health care
service have been achieved in many cases.

Various research journals have been able to encapsulate and provide a suggestion for the four steps to
implementation of SPC in service processes, and these four steps are:
 - Definition of process

- Diagnosis of the process

- Action and measurements

- Design of control charts

Case of Shiv Sagar Restaurant: Service Operation

Taking the case of Shiv Sagar restaurant for the service dispensing, there can be various parameters
encompassing the service processes such as cleanliness in the restaurant, freshness of the meals and restaurant
service quality as perceived by the customers. To be able to understand the root causes for potential service
issues, we made use of a SPC tool such as Fishbone diagram/Ishikawa diagram to identify potential major
root causes as follows,

1. For restaurant service quality

2. For cleanliness in the restaurant

 3. For freshness of the meal

Observations and Result

One of the most vital roles in any organization or system is regarding the managerial role especially in the
service industry such as the restaurant and hospitality sector, here, continuous quality control is one of the
successive factors. Using SPC to develop an innovative procedure to control and improve upon the quality in
the restaurant sector can in future guide service managers to observe and improve service quality and create a
more efficient and pleasing service environment for the customers.

Barriers to adoption of Statistical Process Control

SPC has evolved with strong founding principles and techniques but there are some barriers too. Based on a
comprehensive journal research, some of the roadblocks that were associated with an apprehension to adopt
the SPC methodology in an industrial context have been enumerated as follows,

BARRIERS (FREQUENCY EXAMPLES/EXPLANATIONS REFERENCES

OF CITATION)

Resistance to change - Prevalent and prominent food firms have not been Jha et al. (1999), Dora et al. (2013),
completely convinced regarding the need of Srikaeo et al. (2005)
continuous improvement techniques
- Fear of ending up with failures

Lack of knowledge - Unfamiliarity regarding the use of advanced statistical Grigg (1998), Hung and Sung (2011),
regarding statistics techniques (QC tools) Alsaleh (2007)

- Resistance to provision of sufficient resources Hersleth and Bjerke (2001), Srikaeo et

- Management lacks awareness on SPC al. (2005), Jha et al. (1999)
Lack of support from - Project activities pertaining to improvement not being
management at the highest priority
- Lack in encouragement for employee involvement

Poor Measurement Gauri (2003), Grigg (1998), Srikaeo et

System al. (2005)

Table 4. Barriers to SPC implementation

Conclusion and Recommendations

Statistical Process control through its wide variety of usage across industries, is something that can is
underrated and still not as well used, especially in the service industry. Additionally, with respect to India and
other developing countries, if an organization operating in a third world economy which needs to compete on
a global scale, accepting SPC is a necessity. When SPC is made use of properly, it helps any manufacturer to
prevent problems, control their production and fabrication processes, and ultimately producing a cascading
effect which will lead to increased profits and customer satisfaction. By means of analysis of the two distinct
cases across the manufacturing and service industries, we aim to validate the claims made by many other
researchers that SPC can be exploited and utilized effectively in conjunction with other initiatives like LEAN
and Six-Sigma to increase value to any firm. To simplify the proposed model as in the case analysis of service
industry: Shiv Sagar Restaurant, future studies can look into replicating this model in other service industries
as well where the quality of the system is gauged according to the customer satisfaction, such as banking,
restaurant and telecommunication. Additionally, successful development and implementation of SPC as a
Service can be looked into. The primary focus of the SPC service is generally on control charts with
transparent online graphical representation of results and statistical tools in real time. eSPC is shaped as a
lightweight and economical building block that can be used as a replacement for documentation and paper
SPC and in small and/or large distributed manufacturing companies.

In the end, we can say that the methods which were developed in the first half of this century by the likes of
Shewhart and others prove to be still very useful in many current applications. Their simplicity and familiarity
relative to other methods can frequently compensate for any sort of loss in efficiency. In our ever-changing
manufacturing environment, however, it is really important to consider some of the methods established more
recently such as those for numerous related multiple processes, quality characteristics, and more erudite
sampling plans. Infusion of fresh ideas into the index of commonly accepted SPC knowledge needs to be done
through cultivation of technical know-how in the managers of firms across industries.

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