Process Analysis
Order Description
Modern managers have many responsibilities which pull their resources in varying directions. They do not have the time to be chasing problems that are not problems at all. Statistical process
control (SPC) can aid a manager in making decisions based upon fact versus feeling. SPC is a tool that aids managers in determining what common cause variation is (which does not require action)
and what assignable cause variation is (which does require them to take action).
Objective
Upon completion of this assignment you should be able to use statistical process controls (SPC) to analyze processes and develop improvements. (3.3)
Theory and Context
The tools listed below are used to track and analyze performance, and to determine whether manufacturing and/or other processes are in control. The tools, p-charts and c-charts, provide visual,
specific data trends to be used for analysis and to drive current and future decisions.
Resources
Prof. Bussom – Widener University. (2014). P Charts and C Charts (Video 42) [Video file]. Retrieved from
https://www.youtube.com/watch?v=FD9o2iz6gq0
Sixsigmamoneybelt. (2010). SPC Simplified – Control Charts [Video file]. Retrieved from https://www.youtube.com/watch?v=RYMIcEOh5M8
Excel Tools (found under Course Documents)
• p-chart solver
• c-chart solver
Instructions
1. Case Study 1: A well-known manufacturer of heavy trucks wants to determine if its manufacturing processes are in control. To do so, they determined the daily proportion of trucks with defects to
the total number of vehicles produced. Using a p-chart, determine if the process is stable (in control), if it is not, explain why.
Defective trucks
per day Trucks built
per day
12 78
15 69
19 75
13 73
9 71
26 79
18 68
14 73
17 76
18 78
16 73
24 81
11 76
31 82
2. Case Study 2: The accounts payable department of a construction firm is struggling to process invoices due to typos. Each invoice has the same number of potential defects (equal areas of
opportunity). As the accounting manager, you decide to use a c-chart to analyze the data. Upon completing your analysis, determine if the process is stable (in control), if it is not, explain why.
Number of
invoice typos
2
5
1
3
9
2
1
4
6
4
2
1
3
3. Enter the information into the related, specified charts, click on the “chart key,” review and analyze the generated chart to determine if the process results suggest whether each of the
processes are “in control” or not, and why.
4. Using one APA formatted paper respond to both case studies. Create a heading to separate information from each exercise. Each problem should include 1-2 pages of analysis with the associated
graphs inserted. References are not required, however if used, should follow APA formatting standards.