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4.5. Calculate how much data is outside the specifications
As indicated in the previous step, some of the distribution is outside the specification limit. The question is, how much? To determine the percentage that falls outside the specification limits, it is necessary to find how many estimated standard deviations exist between the overall average and each specification limit. The number of standard deviations is known as the Z value. Z values are used to determine the percentage of output that is outside the specification limits using the standard normal distribution table.
>> 5.1. Find the percentage above the upper specification
>> 5.2. Find the percentage below the lower specification
>> 5.3. Determing the total percentage outside the specifications
The above article is an excerpt from the “Operational definition” chapter of Practical Tools for Continuous Improvement Volume 2 Statistical Tools.
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5.3. Determining the total percentage outside the specifications
The total percentage outside the specification limits or requirements is found by adding the percentage outside the upper and lower specification limits. The total percent of output located outside the specification limits for the example is:
2.28 + 0 = 2.28%
The above article is an excerpt from the “Operational definition” chapter of Practical Tools for Continuous Improvement Volume 2 Statistical Tools.
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5.2. Find the percentage below the lower specification
The Z value for the lower specification is found by subtracting the lower specification from the overall average, and then dividing by the estimated standard deviation. The Z value for the lower specification is denoted as Zlower. The lower specification for the example is 0, the overall average is 10.00, and the estimated standard deviation is 2.00. Thus, the value for Zlower for the example is:
This means that the lower specification is located 5.00 estimated standard deviations away from the overall average. Look up the Z value in the standard normal distribution table as previously described. Since the table shows Z values up to only 4, the proportion and percentage outside of the specification is taken as 0. If any of the data is outside the specification, add the percentage to the diagram.
The above article is an excerpt from the “Operational definition” chapter of Practical Tools for Continuous Improvement Volume 2 Statistical Tools.
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5.1. Find the percentage above the upper specification
The first step in determining the percentage above the upper specification is to calculate the Z value for the upper specification. This is found by subtracting the overall average from the upper specification, and then dividing by the estimated standard deviation. The Z value for the upper specification is denoted as Zupper. The upper specification for the example is 14, the overall average is 10.00, and the estimated standard deviation is 2.00. Thus, the value of Zupper for the example is:
This means that the upper specification is located 2.00 estimated standard deviations away from the overall average. Look up the Z value in the standard normal distribution table to find the estimated proportion of output that is outside the upper specification.
Z values are listed along the left and top of the table. The whole number (number to the left of the decimal) and the tenths digit (first number to the right of the decimal) are listed on the left hand side of the table, and the hundredths digit (second number to the right of the decimal) is along the top. The table shows Z values only up to 4. If the Z value is greater than 4, the proportion outside the specification is virtually 0. In the example, the Z value is 2.00. To find the percentage outside the specification, go down the left hand side of the table to 2.0 and then across to the column marked x.x0. The number is 0.0228, which is the proportion outside the specification. To convert the proportion to a percentage, multiply it by 100. The percentage outside the upper specification is 2.28 percent. Place this percentage on the diagram.
The above article is an excerpt from the “Operational definition” chapter of Practical Tools for Continuous Improvement Volume 2 Statistical Tools.
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4. Draw the specification limits on the distribution
Draw vertical lines on the distribution to represent the lower and upper specification limits. In the example, the lower specification limit (LSL) is 0 minutes (on time) and the upper specification limit (USL) is 14 minutes. Estimate where the two lines should be located in reference to the overall average and the tails of the curve. Label each specification with its abbreviation and value. The example completed through this step follows.
The diagram shows whether any portion of the curve is beyond the specifications. In the example, some of the distribution is beyond the upper specification. If the overall average of the distribution is outside the specification, refer to “Variation – Capability analysis where the overall average is outside the specification” later in this section.
The above article is an excerpt from the “Operational definition” chapter of Practical Tools for Continuous Improvement Volume 2 Statistical Tools.
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3. Determine the location of the tails for the distribution
he next step is to determine where (at what value) the tails or ends of the curve are located. These values can be estimated by adding and subtracting three times the estimated standard deviation from the overall average. Remember, from the histogram section, that for a normal distribution, plus or minus three times the standard deviation from the overall average includes 99.73 percent of the area under the curve.
The calculation for the location of the left tail is:
For the example the left tail is:
The right tail is calculated as follows:
For the example the right tail is:
Add the values to the distribution drawn earlier. The example completed through this step follows.
The above article is an excerpt from the “Operational definition” chapter of Practical Tools for Continuous Improvement Volume 2 Statistical Tools.
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2. Calculate the estimated standard deviation
The next stage is to calculate the position of the tails of the distribution that has just been drawn. However, in order to calculate the position of the tails, the standard deviation is required. In this version of capability analysis where data has been collected over a period of time, an estimated standard deviation is used. The symbol for the estimated standard deviation is (read “sigma hat”). The formula for the estimated standard deviation is:
is calculated when constructing a control chart. Substitute M
for
if an X-MR chart has been completed. In the example, the value is 4.653. The denominator (d2) is a weighting factor whose value is based on the subgroup size, n, from the control chart. The value for d2 in the example, based on a subgroup size of 5, is 2.326. A short listing of the d2 values for other subgroup sizes follows. The full table of values is given in the appendix.
n
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
d2
|
1.128
|
1.693
|
2.059
|
2.326
|
2.534
|
2.704
|
2.847
|
2.970
|
3.078
|
The estimated standard deviation for the example is:
The estimated standard deviation is calculated to one more decimal place than the original data.
The above article is an excerpt from the “Operational definition” chapter of Practical Tools for Continuous Improvement Volume 2 Statistical Tools.
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1. Sketch the distribution
Sketch a picture of a normal distribution. Begin by drawing a horizontal line (axis). Next, draw a normal (bell-shaped) curve centered on the horizontal axis. Then draw a vertical line from the horizontal axis through the center of the curve, cutting it in half. This line represents the overall average of the data and is always located in the center of a normal distribution. Label the line with the value for the overall average and its symbol. The value of the overall average in the example is 10.00 and the symbol for the overall average from the chart is
. The example completed through this step follows.
The above article is an excerpt from the “Operational definition” chapter of Practical Tools for Continuous Improvement Volume 2 Statistical Tools.
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What the chart pairs mean
Variables control chart pairs, which can be creating using SQCpack, illustrate central location and variability.
Analyzing for variability
To look for process variability, study the range, standard deviation (sigma), or moving range chart of the control chart pair. These will show how data points within the subgroup differ from each other. Interpret for variability first. If out-of-control conditions exist here, address them before continuing. Too much variability in the subgroups can be a difficult challenge, but until this variability is reduced, it does little good to work on the target or central location.
To understand this, consider a marksman. If the pattern of shot varies wildly, one time tight and another time loose, all the marksman can do is aim at the middle of the target and hope for the best (see Figure A). If he can tighten up the shot pattern, though, he can place shots to his choosing inside the target (see Figure B).

Figure A

Figure B
Analyzing for central location
Use the average (X-bar), median, or individuals (X) chart to analyze the central location of the process. This indicates where the middle of the subgroup is.
Here the marksman’s shot pattern is tight, showing little variability, but where is it placed in relation to the bullseye? Figure C shows the variability is tight or precise, but there is no accuracy. Figure D shows a marksman whose shots are both precise and on target or accurate.
If you are considering an individuals and moving range chart, keep in mind that you are looking at actual readings from the system, not averages or medians. Individual readings may not be normally distributed for a stable system. They may be skewed if the system is naturally bounded on one side. Characteristics such as flatness and timeliness are bounded by zero.

Figure C

Figure D