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    2001 ConceptFlow 0

    Statistical Process Control for Variables Data(SPC)

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    2001 ConceptFlow 1

    Module Objectives

    By the end of this module, the participant will be able to:Apply SPC rules

    Interpret run and trend patterns in control charts

    Create and interpret

    Xbar-R Charts

    I-MR charts

    Target I-MR charts

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    2001 ConceptFlow 2

    Why Learn About SPC for Variables?

    SPC for variable data will: Keep process centered

    Minimize variation

    Reduce excursions

    Validate improvements

    Focus Six Sigma process activity

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    2001 ConceptFlow 3

    What is SPC for Variables?

    SPC for variable data is Industry standard control language

    Reliable, easy method of determining

    Common cause variation

    Special cause variation

    Graphical communication

    Set of statistical tools for analyzing variables performance data

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    2001 ConceptFlow 4

    Introduction to SPC

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    2001 ConceptFlow 5

    SPM and SPC

    Statistical Process Control before six sigma Stat ist ical Process Monitor in g

    Usual focus of SPC tools

    Looks at output

    Corrective action after output is out of control

    Statistical Process Control after Six Sigma

    Same tools, additional focus

    Focus on inputs

    Corrective action on inputs prior to output out of control

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    Sources of Variation

    KPOVsKPIVs

    ProcessControl

    Process

    Materials

    Methods

    OperatorsMeasurements

    Machines

    Policies

    Procedures

    People

    Places

    EnvironmentStatistical

    Process

    Control

    Statistical

    Process

    Monitor

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    SPC Defined

    Statistical Process Control Is application of statistical tools and methods to provide feedback

    Sets limits of variation

    Provides trigger for action

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    SPC Function

    SPC Charts Used to monitor and control process under local responsibility

    Require process owners to

    take measurements

    Plot and interpret data

    Take action

    Provide a history of the process

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    Components of a Control Chart

    10

    9

    8

    7

    6

    5

    4

    3

    2

    1

    0

    0 5 10 15 20

    Upper Control

    Limit

    Lower Control

    Limit

    Mean

    Nonrandom Variation Region

    Observation number

    Observationval

    ue

    Random Variation RegionObservation 10

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    Statistics of a Control Chart

    10

    9

    8

    7

    6

    5

    4

    3

    2

    1

    0

    0 5 10 15 20

    Nonrandom Variation Region

    Observation number

    Observationvalue

    Random Variation Region

    LCL

    - 3s

    UCL

    + 3s

    Mean

    99.73%

    area

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    Establishing Process Control Limits

    Control limits areAre statistical limits set +/- 3 standard deviations from the mean

    Set when process is in control

    Fixed at baseline value

    Adjusted for improvements

    Never widened

    Control limits are not related to specification limits

    Control Limits arenotspecification limits

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    2001 ConceptFlow 12

    Definition of Control

    In c ontro lis A statistical term for process variation

    Within three standard deviations of the mean

    That is random without cause

    That does not show run patterns

    That does not show trend patterns

    No assignable cause variation

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    2001 ConceptFlow 13

    Western Electric Rules for ControlOverview

    Any point outside control limits 7 consecutive points on same side of

    centerline

    7 consecutive points increasing or

    decreasing

    2 of 3 points in same zone A or

    beyond

    4 of 5 points in same zone B or

    beyond

    14 consecutive points alternating up

    and down

    14 consecutive points in either zoneC

    2 s4 s6 s

    A

    C

    CB

    B

    A

    LCL

    UCL

    Established rules for

    run and trend

    analysis

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    2001 ConceptFlow 14

    Nelson Tests for Special Causes

    2 s4 s6 s

    A

    C

    CB

    B

    A

    LCL

    UCL 1. Any point outside control limits

    2. 9 consecutive points on same

    side of centerline

    3. 6 consecutive points increasing

    or decreasing

    4. 2 of 3 points in same zone A or

    beyond

    5. 4 of 5 points in same zone B or

    beyond

    6. 14 consecutive points

    alternating up and down

    7. 15 consecutive points in either

    zone C

    8. 8 points in a row outside zone

    C, same side of centerline

    Tests proposed by Lloyd

    Nelson (1984) and used by

    MINITAB for run and trend

    analysis

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    2001 ConceptFlow 15

    Which Tests are Better?

    Western Electric

    Any point outside control limits

    7 consecutive points on same side of

    centerline

    7 consecutive points increasing ordecreasing

    2 of 3 points in same zone A or beyond

    4 of 5 points in same zone B or beyond

    14 consecutive points alternating up

    and down 14 consecutive points in either zone C

    Nelson

    Any point outside control limits

    9 consecutive points on same side of

    centerline

    6 consecutive points increasing ordecreasing

    2 of 3 points in same zone A or beyond

    4 of 5 points in same zone B or beyond

    14 consecutive points alternating up

    and down 15 consecutive points in either zone C

    8 points in a row outside zone C, either

    side of centerline

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    2001 ConceptFlow 16

    False Alarm Rates are the Key

    Nelson

    Any point outside control limits

    9 consecutive points on same side of centerline

    6 consecutive points increasing or decreasing

    2 of 3 points in same zone A or beyond

    4 of 5 points in same zone B or beyond

    14 consecutive points alternating up and down

    15 consecutive points in either zone C

    8 points in a row outside zone C, either side ofcenterline

    False Alarm Rate

    .0027

    Approx .003

    Approx .003

    .00305

    .0043

    Approx .004

    Approx .003

    Approx .003

    The Nelson tests are designed so that the false alarm

    rates for all tests are approximately the same. The

    Western Electric rules do not have this property.

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    2001 ConceptFlow 18

    Nelson Test 2

    Rule 2: 9 consecutive points on same side of centerline

    A

    B

    C

    C

    B

    A

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    2001 ConceptFlow 19

    Nelson Test 3

    Rule 3: 6 consecutive points increasing or decreasing

    A

    B

    C

    C

    B

    A

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    2001 ConceptFlow 20

    Nelson Test 4

    Rule 4: 2 of 3 points in same zone A or beyond

    A

    B

    C

    C

    B

    A

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    2001 ConceptFlow 21

    Nelson Test 5

    Rule 5: 4 of 5 points in same zone B or beyond

    A

    B

    C

    C

    B

    A

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    2001 ConceptFlow 22

    Nelson Test 6

    Rule 6: 14 consecutive points alternating up and down

    A

    B

    C

    C

    B

    A

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    2001 ConceptFlow 23

    Nelson Test 7

    Rule 7: 15 consecutive points in either zone C

    A

    B

    C

    C

    B

    A

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    2001 ConceptFlow 24

    Nelson Test 8

    Rule 8: 8 points in a row outside zone C, either side

    A

    B

    C

    C

    B

    A

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    2001 ConceptFlow 25

    Nelson Tests in MINITAB

    Stat>Control Charts>Xbar-R

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    2001 ConceptFlow 26

    Control Chart Roadmap

    Variable

    Xbar-R

    Chart

    I-MR

    Chart

    Xbar-schart

    N

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    2001 ConceptFlow 27

    Xbar-R: Average, Range Charts

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    2001 ConceptFlow 28

    Xbar-R Chart Principles

    Xbar-R Charts (and Xbar-s) are two separate charts of the samesubgroup data

    Xbar chart is a plot of the subgroup means

    R chart is a plot of the subgroup ranges (or if s, plot of subgroup

    standard deviation)

    Most sensitive charts for tracking and identifying assignable cause ofvariation

    Based on control chart factors that assume a normal distribution within

    subgroups

    Establish three sigma process limits

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    2001 ConceptFlow 29

    Xbar-R and Subgroup Data

    X1 X2 X3 X4 X5

    SG 1 43.8 43.7 47.2 46.3 44.4

    SG 2 44.7 43.2 45.7 45.8 44.4

    SG 3 45.3 43.8 44.3 46.2 46.6

    SG 4 45.4 44.1 44.6 45.3 45.0

    SG 5 43.8 45.6 44.6 44.8 45.0

    SG 6 45.7 46.0 45.6 45.9 46.5

    SG 7 46.5 45.6 45.7 46.9 45.6SG 8 46.1 45.8 45.5 45.9 45.1

    SG 9 44.5 44.0 45.4 45.8 44.7

    SG 10 47.8 43.6 44.5 46.0 44.5

    SG 11 45.5 45.4 42.8 47.0 45.1

    SG 12 46.8 43.5 43.4 46.0 45.0

    SG 13 44.2 44.7 46.1 44.5 45.8

    SG 14 44.6 44.7 45.2 43.0 45.5

    SG 15 46.0 46.0 45.0 44.5 47.2

    SG 16 46.3 43.7 44.8 46.0 45.4

    SG 17 43.2 43.0 45.6 44.8 45.4

    SG 18 45.2 45.1 46.9 45.0 44.8

    SG 19 44.6 44.5 44.6 43.7 45.1

    SG 20 45.6 44.2 46.0 43.5 45.9

    You measure the revenue per FA

    earned from 20 complexes over five

    days.

    Is the process in control?

    Since the data is subgroup data an

    Xbar-R chart will be used

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    2001 ConceptFlow 30

    Constructing an Xbar-R Chart Graph

    X1 X2 X3 X4 X5 Xbar Range

    SG 1 43.8 43.7 47.2 46.3 44.4 45.1 3.5

    SG 2 44.7 43.2 45.7 45.8 44.4 44.8 2.6

    SG 3 45.3 43.8 44.3 46.2 46.6 45.2 2.8

    SG 4 45.4 44.1 44.6 45.3 45.0 44.9 1.3

    SG 5 43.8 45.6 44.6 44.8 45.0 44.8 1.8

    SG 6 45.7 46.0 45.6 45.9 46.5 45.9 0.9

    SG 7 46.5 45.6 45.7 46.9 45.6 46.1 1.3

    SG 8 46.1 45.8 45.5 45.9 45.1 45.7 1.0SG 9 44.5 44.0 45.4 45.8 44.7 44.9 1.8

    SG 10 47.8 43.6 44.5 46.0 44.5 45.3 4.2

    SG 11 45.5 45.4 42.8 47.0 45.1 45.2 4.2

    SG 12 46.8 43.5 43.4 46.0 45.0 44.9 3.4

    SG 13 44.2 44.7 46.1 44.5 45.8 45.1 1.9

    SG 14 44.6 44.7 45.2 43.0 45.5 44.6 2.5

    SG 15 46.0 46.0 45.0 44.5 47.2 45.7 2.7

    SG 16 46.3 43.7 44.8 46.0 45.4 45.2 2.6

    SG 17 43.2 43.0 45.6 44.8 45.4 44.4 2.6

    SG 18 45.2 45.1 46.9 45.0 44.8 45.4 2.1

    SG 19 44.6 44.5 44.6 43.7 45.1 44.5 1.4

    SG 20 45.6 44.2 46.0 43.5 45.9 45.0 2.5

    45.13 2.36Average

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    2001 ConceptFlow 31

    Defining the Xbar-R UCL and LCL

    2

    2

    X

    X

    UCL X A R

    LCL X A R

    4

    3

    R

    R

    UCL D R

    UCL D R

    A2, D3 and D4 are Shewhart control constants

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    2001 ConceptFlow 32

    n D4 D3 A2

    2 3.27 0.00 1.88

    3 2.57 0.00 1.02

    4 2.28 0.00 0.73

    5 2.11 0.00 0.58

    6 2.00 0.00 0.48

    7 1.92 0.08 0.428 1.86 0.14 0.37

    9 1.82 0.18 0.34

    Shewhart Control Chart Constants

    n is the subgroup size

    2

    2

    45.13 * 2.355 46.49

    45.

    0.5

    13 * 2.355 4

    8

    0.5 78 3. 6

    X

    X

    UCL X A R

    LCL X A R

    4

    3

    * 2.355 4.97

    *2.355

    .

    0

    2 11

    0

    R

    R

    UCL D R

    UCL D R

    Calculated valuesagree with Minitab

    Calculating the Xbar-R UCL and LCL

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    2001 ConceptFlow 33

    Xbar-R Charts in MinitabStep 1

    Copy or enter the data by subgroups into the worksheet Open file SPC VARIABLE XBAR.MTW

    http://localhost/var/windows/TEMP/SPC%20VARIABLE%20XBAR.MTWhttp://localhost/var/windows/TEMP/SPC%20VARIABLE%20XBAR.MTW
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    2001 ConceptFlow 34

    Xbar-R Charts in MinitabStep 2

    Stack the data

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    2001 ConceptFlow 35

    Xbar-R Charts in MinitabStep 3

    Stat>Control Charts>Xbar-R

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    2001 ConceptFlow 36

    Xbar-R Charts in Minitab

    Step 4

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    2001 ConceptFlow 37

    Xbar-R Charts in Minitab

    Step 5

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    2001 ConceptFlow 38

    Xbar-R Class Exercise

    Using Xbar Charts Data tab of file SPC Variable Class Exercises.xls

    1. Find Xbars, Xdbar and Rbar

    2. Determine applicable Shewhart constants

    3. Calculate UCL and LCL for Xbar and R

    4. Copy the data into Minitab

    5. Stack the data

    6. Verify your calculations

    7. Determine if process is in control

    http://localhost/var/windows/TEMP/SPC%20Variable%20Class%20Exercises.xlshttp://localhost/var/windows/TEMP/SPC%20Variable%20Class%20Exercises.xls
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    2001 ConceptFlow 40

    I-MR Chart Principles

    I-MR Charts are two separate charts of the same data

    I chart is a plot of the individual data

    MR chart is a plot of the moving range of the previous individuals

    I-MR charts are sensitive to trends, cycles and patterns

    Used when subgroup variation is zero or no subgroups exist

    Destructive testing

    Batch processing

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    2001 ConceptFlow 41

    I-MR and Individual Data

    Revenue2.38

    2.06

    2.46

    1.96

    2.22

    2.44

    2.16

    2.13

    1.97

    2.29

    2.07

    1.97

    2.09

    2.16

    2.57

    2.83

    2.04

    2.13

    2.55

    2.39

    Once a day the office measures

    the revenue generated by its FAs.

    Is the process in control?

    Since the data is individual data an I-MR

    chart will be used.

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    2001 ConceptFlow 42

    Constructing an I-MR ChartGraph

    Revenue MR (2)1 2.38

    2 2.06 0.32

    3 2.46 0.40

    4 1.96 0.50

    5 2.22 0.26

    6 2.44 0.22

    7 2.16 0.28

    8 2.13 0.03

    9 1.97 0.16

    10 2.29 0.32

    11 2.07 0.22

    12 1.97 0.10

    13 2.09 0.12

    14 2.16 0.07

    15 2.57 0.41

    16 2.83 0.26

    17 2.04 0.7918 2.13 0.09

    19 2.55 0.42

    20 2.39 0.16

    Ave 2.244 0.270

    Note: calculated for a

    moving range of 2

    Revenues

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    2001 ConceptFlow 43

    E2, D3 and D4 are Shewhart control constants

    Defining the I-MR UCL and LCL

    2

    2

    X

    X

    UCL X E R

    LCL X E R

    4

    3

    MR

    MR

    UCL D R

    UCL D R

    Revenues

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    2001 ConceptFlow 44

    n D4 D3 A2 E2

    2 3.27 0.00 1.88 2.66

    3 2.57 0.00 1.02 1.77

    4 2.28 0.00 0.73 1.46

    5 2.11 0.00 0.58 1.29

    6 2.00 0.00 0.48 1.18

    7 1.92 0.08 0.42 1.11

    8 1.86 0.14 0.37 1.05

    9 1.82 0.18 0.34 1.01

    n is the data or moving range subgroup size

    Shewhart Control Chart Constants

    4

    3

    *0.270 0.88

    *0.270

    3

    0

    .27

    0

    MR

    MR

    UCL D R

    UCL D R

    2

    2

    2.244 * 0.270 2.96

    2.244 * 0.270 1.52

    2.66

    2.66

    X

    X

    UCL X E R

    LCL X E R

    Calculated valuesagree with Minitab

    Calculating the I-MR UCL and LCL

    Revenues

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    2001 ConceptFlow 45

    I-MR Charts in MinitabStep 1

    Copy or enter the data by subgroups into the worksheet

    Open file SPC VARIABLE IM.MTW

    Revenues

    http://localhost/var/windows/TEMP/SPC%20VARIABLE%20IMR.MTWhttp://localhost/var/windows/TEMP/SPC%20VARIABLE%20IMR.MTW
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    2001 ConceptFlow 46

    I-MR Charts in Minitab

    Step 2

    Stat>Control Charts>I-MR

    Revenues

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    2001 ConceptFlow 47

    I-MR Charts in Minitab

    Step 3

    Revenues

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    2001 ConceptFlow 48

    I-MR Charting an Improvement in Process

    A process improvement has been made to increaserevenues. Is it real?

    Stack the data

    Revenues

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    2001 ConceptFlow 49

    I-MR Shows Two Populations

    Recalculating limits based upon improved

    statistics show clearly that old process is

    significantly different.

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    2001 ConceptFlow 50

    I-MR Class Exercise

    Using IMR Charts Data tab of file SPC Variable Class Exercises.xls,

    1. Find Xbar, Xdbar and Rbar

    2. Determine applicable Shewhart constants

    3. Calculate UCL and LCL for Xbar and R

    4. Copy the data into MINITAB

    5. Stack the data

    6. Verify your calculations

    7. Determine if process is in control

    http://localhost/var/windows/TEMP/SPC%20Variable%20Class%20Exercises.xlshttp://localhost/var/windows/TEMP/SPC%20Variable%20Class%20Exercises.xls
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    2001 ConceptFlow 51

    Target I-MR Charts

    T t I MR Ch t P i i l

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    2001 ConceptFlow 52

    Target I-MR Chart Principles

    Target I-MR Charts are two separate charts of the same data

    Individuals plotted as difference from target

    MR chart is a plot of the moving range of the previous individuals

    I-MR charts are sensitive to trends, cycles and patterns

    Useful when trying to predict widely varying parent individuals

    Inventory levels

    Forecasting

    T t I MR d A t l D t

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    2001 ConceptFlow 53

    Target I-MR and Actual Data

    The marketing department uses a

    demand forecasting process for

    weekly revenue forecasting.

    Is their demand forecasting process

    in control?

    Since the data is individual data

    an I-MR chart is used.

    Actual132

    96

    127

    177

    126

    120

    133185

    152

    148

    189

    148

    163

    139131

    111

    143

    166

    134

    135

    I MR Ch t f A t l d t

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    2001 ConceptFlow 54

    I-MR Chart of Actual data

    Looks like the forecasting is in

    control, but dig a little deeper

    N d f T t I MR Ch ti

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    2001 ConceptFlow 55

    Need for Target I-MR Charting

    Actual Target Delta132 138 6

    96 99 3

    127 127 0

    177 175 -2

    126 128 2

    120 123 3

    133 135 2185 166 -19

    152 154 2

    148 154 6

    189 186 -3

    148 153 5

    163 161 -2

    139 143 4131 136 5

    111 133 22

    143 143 0

    166 171 5

    134 138 4

    135 135 0

    Demand forecasting does not

    produce actual clients do.

    Demand forecasting produces a

    demand target. The differencebetween the forecast and the

    actual is the true measure of the

    process.

    I-MR chart the difference

    T t I MR Ch t

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    2001 ConceptFlow 56

    Target I-MR Chart

    Demand forecasting process is not in control.

    Possible area for Six Sigma project work!

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    Obj ti R i

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    2001 ConceptFlow 58

    Objectives Review

    The participant will be able to:

    Apply SPC rules

    Interpret run and trend patterns in control charts

    Create and interpret

    Xbar-R Charts

    I-MR charts

    Target I-MR charts

    Trademarks and Service Marks

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    Trademarks and Service Marks

    Six Sigma is a federally registered trademark of Motorola, Inc.

    Breakthrough Strategy is a federally registered trademark of Six Sigma Academy.

    ESSENTEQ is a trademark of Six Sigma Academy.

    METREQ is a trademark of Six Sigma Academy.

    Weaving excellence into the fabric of business is a trademark of Six Sigma Academy.

    FASTART is a trademark of Six Sigma Academy.

    Breakthrough Design is a trademark of Six Sigma Academy.

    Breakthrough Lean is a trademark of Six Sigma Academy.

    Design with the Power of Six Sigma is a trademark of Six Sigma Academy.

    Legal Lean is a trademark of Six Sigma Academy.

    SSA Navigator is a trademark of Six Sigma Academy.

    SigmaCALC is a trademark of Six Sigma Academy.

    SigmaFlowis a trademark of Compass Partners, Inc.

    SigmaTRAC is a trademark of DuPont.

    MINITAB is a trademark of Minitab, Inc.