In this 60-minute webinar, you will learn the basic concepts of SPC, where to start using Process Capability Analysis, and more.

1. Beyond Compliance
Webinar & Podcast Series for Process Manufacturers
Understand SPC Fundamentals
Michael Parent
Michael Parent Consulting Services
Lean and Six Sigma Master Black Belt, MBA

2. // About SafetyChain
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3. Casual but Professional Format
✔Ask questions! (Q&A at end)
✔Only panelists are displayed
✔Recording link will be shared
✔Audio issues: use call-in number
Before We Get Started
BEYOND COMPLIANCE
Helpful tips

4. BEYOND COMPLIANCE
Meet the Speaker - Michael Parent
● Bachelor of Science in Industrial and Operations
Engineering from the University of Michigan
● MBA from William and Mary, in Williamsburg Virginia
● Named a 40 under 40 “Rising Star” by The American
Society for Quality
● Author of The Lean Innovation Cycle: A Multi-Disciplinary
Framework for Designing Value with Lean and Human-
Centered Design (Routledge, 2022).
Michael Parent, MBA
Lean and Six Sigma Master Black Belt
Principal of Michael Parent Consulting Services

5. BEYOND COMPLIANCE
Objectives
● Define Statistical Process Control (SPC)
○ Understand the math (statistics) behind it
● Apply SPC to process capability
● Understand how to apply control charts to Root Cause Analysis (RCA)
● Improving a system with control charts
Session Overview

6. What Best Describes How You're Currently Using SPC?

7. BEYOND COMPLIANCE
What is Statistical Process Control (SPC)
• A way to use data to improve and control systems and processes
• Improving Quality, Reducing defects
• Helps answer Operational Questions:
• Is a hospital ER capable of seeing patients within 1 hr of arrival?
• For every million products we produce, how many are defective?
• What’s the cost?
• By How much does my product vary from unit to unit?

8. BEYOND COMPLIANCE
1986: Motorola Creates Six Sigma
- a formal methodology to
improve quality by reducing
variation in products and
processes.
Six Sigma is actually a
measurement of Process
Capability.
History of SPC
1920: While at Bell Labs, Walter
Shewart invents control charts as
a way to detect whether or not
sources of variation come from
the process or from external
factors. What is referred to today
as Common Cause vs. Special
Cause variation.
1950s: W. Edwards Deming travels to
Japan as a management consultant.
His efforts greatly affect the
Japanese Economy and instill his 14
quality principles into the culture of
Japanese Manufacturing.
1948-1975: Taiichi Ohno of
Toyota formalizes a system for
in-process quality and
ongoing improvement. The
Toyota Production System will
later be brought to the US
under the umbrella term "Lean"

9. BEYOND COMPLIANCE
Real Life Examples - Variability is Everywhere

10. BEYOND COMPLIANCE
Real Life Examples - Variability is Everywhere

11. BEYOND COMPLIANCE
Real Life Examples Variability is Everywhere

12. BEYOND COMPLIANCE
The Bell Curve

13. BEYOND COMPLIANCE
The Bell Curve…continued
Less Disperse

14. BEYOND COMPLIANCE
Process Capability
Too High
Target
Too Low

15. BEYOND COMPLIANCE
Measuring Process Capability
• DPMO: How many defects were created per million products?
• σ Level: How many σs fall within limits?
• Cpk & Ppk: A Capability index score.
• Yield %: Within Spec divided by total Produced.

16. BEYOND COMPLIANCE
Process Capability Example
V
en
t

17. BEYOND COMPLIANCE
Process Capability Example
Bead Vent:
12 mm
Bead Vent:
7 mm

18. BEYOND COMPLIANCE
Process Capability Example
Not Centered
Not Capable
Large Outliers

19. BEYOND COMPLIANCE
Vendor Relationships
Pizza Company contracts vendor. Contract specifies
packs of pepperoni must have 13 slices, +/- 2 slices

20. BEYOND COMPLIANCE
Intro to Control Charts

21. BEYOND COMPLIANCE
Special Cause vs. Common Cause
• All processes vary
• There are two sources of variation
• Common Cause: regular variation within the process creating the output
• Factors external to the process affecting the output
• Control charts help us identify and discriminate between the two

22. BEYOND COMPLIANCE
Special Cause vs. Common Cause

23. BEYOND COMPLIANCE
Other Control Chart Uses
● Weight per unit (Defects)
● Time between batches (Productivity)
● Defects per 5,000 units (Defects)
● Cold Chain Temperature (Quality Control)

24. Opinion: What Are the Best Uses of SPC?

25. BEYOND COMPLIANCE
● What if your data is Pass/Fail?
● Use subgroups to calculate a (P)roportion of defects per group.
● Example:
• 24 turtles
• 3 defects
• P = 0.125 (1/8th)
Types of Control Charts – P Chart

26. BEYOND COMPLIANCE
Types of Control Charts – P Chart
● Subgroup Size affects our confidence to detect a signal.
● We can become more sensitive to changes in the
process with the more data we observe

27. BEYOND COMPLIANCE
• In Excel, Control charts are time consuming to create
• In Excel, Control charts are time consuming to update
• Can Become Difficult to Read
Control Charts without Charts
How Many
Signals?
Where?

28. BEYOND COMPLIANCE
Control Charts without Charts
=Countif(“HIGH”)
We can create signals
without building charts.
● Saves Time
● Get Clear Signals
● Easy to count
signals and perform
calculations

29. BEYOND COMPLIANCE
Solving Special Cause
● Special cause alerts us to something other than the process.
● It invites us to identify the root cause.
● We use Root Cause Analysis (RCA) tools.

30. BEYOND COMPLIANCE
Why was my water bill higher than normal?
• I used more water this month
Why?
• A pipe had a small leak
Why?
• The fitting was not tightly sealed
Why?
• The rubber gasket had cracked
Why?
• It was old and worn away
RCA #1 – 5-Whys
COUNTERMEASURES:
1. Replace the rubber gasket
2. Determine how old the gasket was and how it failed.
3. Set up PM plan for all gaskets.
4. Inspect all gaskets in house.
5. Buy spare gaskets.

31. BEYOND COMPLIANCE
RCA #2 – Fault Tree Analysis (FTA)

32. BEYOND COMPLIANCE
Systems Improvement #1 – Shift the Mean
● We can increase capability by
shifting the average of our process.
● This is a systems based
improvement. There will be no
smoking gun on “what went wrong”.

33. BEYOND COMPLIANCE
Systems Improvement #2 – Decrease Variation
● We can increase capability by
decreasing variation in our process.
● This is a systems based
improvement. There will be no
smoking gun on “what went wrong”.

34. BEYOND COMPLIANCE
Process Capability Example
New Tooling = Systems-
based solution
Shifted
Mean
Decreased
Variation

35. BEYOND COMPLIANCE
Prioritizing Systems Solutions
Which target is easiest to
improve to get to the
desired state?
General Rule: Improve
Variation First

36. BEYOND COMPLIANCE
Conclusion
● SPC is an effective technique for understanding and quantifying
current process capability
● By understanding and improving process capability companies can
reduce defects and waste
● Process Control Charts are particularly useful to understand changes
over time and diagnose the root cause of issues
● In particular, common cause and special cause issues require
different approaches toward improvement

37. Q&A
BEYOND COMPLIANCE

38. BEYOND COMPLIANCE
Contact the Speaker
● Website: www.sixsigma-consulting.com
● Twitter: @Lean_Innovator
● Linkedin: https://www.linkedin.com/in/parent-michael/
● Book: https://www.amazon.com/Lean-Innovation-
Cycle-Multi-Disciplinary-Human-Centered-
ebook/dp/B09SVQJ98G
● Udemy: https://www.udemy.com/user/michael-
16068/
Michael Parent, MBA
Lean and Six Sigma Master Black Belt
Principal of Michael Parent Consulting Services

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