balancs score cards etc
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The balanced scorecard is a strategic planning and management system that is used extensivelybusiness and industry, government, and nonprofit organizations worldwide to align business
activities to the vision and strategy of the organization, improve internal and externalcommunications, and monitor organization performance against strategic goals. It was originate
Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance measuremenframework that added strategic non-financial performance measures to traditional financial met
to give managers and executives a more 'balanced' view of organizational performance. While tphrase balanced scorecard was coined in the early 1990s, the roots of the this type of approachdeep, and include the pioneering work of General Electric on performance measurement reportin
the 1950s and the work of French process engineers (who created the Tableau de Bord literal
"dashboard" of performance measures) in the early part of the 20th century.
The balanced scorecard has evolved from its early use as a simpleperformance measurement framework to a full strategic planning
and management system. The new balanced scorecardtransforms an organizations strategic plan from an attractive but
passive document into the "marching orders" for the organizationon a daily basis. It provides a framework that not only provides
performance measurements, but helps planners identify whatshould be done and measured. It enables executives to truly
execute their strategies.
This new approach to strategic management was first detailed in a
series of articles and books by Drs. Kaplan and Norton.
Recognizing some of the weaknesses and vagueness of previousmanagement approaches, the balanced scorecard approach
provides a clear prescription as to what companies should
measure in order to 'balance' the financial perspective. Thebalanced scorecard is a management system (not only a
measurement system) that enables organizations to clarify theirvision and strategy and translate them into action. It provides
feedback around both the internal business processes and externaloutcomes in order to continuously improve strategic performance
and results. When fully deployed, the balanced scorecardtransforms strategic planning from an academic exercise into the
nerve center of an enterprise.
Kaplan and Norton describe the innovation of the balanced
scorecard as follows:
"The balanced scorecard retains traditional financial measures. But
financial measures tell the story of past events, an adequate storyfor industrial age companies for which investments in long-term
capabilities and customer relationships were not critical forsuccess. These financial measures are inadequate, however, forguiding and evaluating the journey that information age
companies must make to create future value through investment
in customers, suppliers, employees, processes, technology, andinnovation."
Why Implement a Balanc
Scorecard?
Increase focus onstrategy and results
Improve organizatio
performance bymeasuring what
matters Align organization
strategy with the wo
people do on a day-tday basis
Focus on the drivers
future performance
Improvecommunication of th
organizations Visionand Strategy
Prioritize Projects /
Initiatives
Also see:
The Benefits of Balanced ScorecarStrategic Planning and ManagemeReturn on investment is an importantconsideration before investing a significanamount of money to build and implement
new strategic management system.Read
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Adapted from Robert S. Kaplan and David P. Norton, Using the Balanced Scorecard as aStrategic Management System, Harvard Business Review (January-February 1996): 76.
Perspectives
The balanced scorecard suggests that we view the organizationfrom four perspectives, and to develop metrics, collect data and
analyze it relative to each of these perspectives:
The Learning & Growth Perspective
This perspective includes employee training and corporate culturalattitudes related to both individual and corporate self-
improvement. In a knowledge-worker organization, people -- the
only repository of knowledge -- are the main resource. In thecurrent climate of rapid technological change, it is becoming
necessary for knowledge workers to be in a continuous learning
mode. Metrics can be put into place to guide managers in focusingtraining funds where they can help the most. In any case, learning
and growth constitute the essential foundation for success of anyknowledge-worker organization.
Kaplan and Norton emphasize that 'learning' is more than
'training'; it also includes things like mentors and tutors within theorganization, as well as that ease of communication amongworkers that allows them to readily get help on a problem when it
is needed. It also includes technological tools; what the Baldrigecriteria call "high performance work systems."
The Business Process PerspectiveThis perspective refers to internal business processes. Metrics
based on this perspective allow the managers to know how well
More >>
A Balancing Actby InstitutePresident & CEO Howard RohmA seminal article on how to implemethe balanced scorecard.
Read More >>
Sustaining NewDirectionsby Howard Rohm anLarry HalbachSequel to A Balancing Act -- an articRead More >>
What are the PrimaryImplementation Success Factors
Click Here to Find Out
Want to learn more?Please visit the Institute'sPublic
Workshop Schedule orcontacttheInstitute abouton-site training or
consulting services. Or schedule a
live, customizedwebinarwith an
Institute consultant, or try theInstitute's newE-Learningprogram
Other Resources:
Definitions of BalancedScorecard Strategic
Planning & Managemen
Terms
Definitions of GeneralManagement Terms
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their business is running, and whether its products and servicesconform to customer requirements (the mission). These metrics
have to be carefully designed by those who know these processes
most intimately; with our unique missions these are notsomething that can be developed by outside consultants.
The Customer PerspectiveRecent management philosophy has shown an increasing
realization of the importance of customer focus and customersatisfaction in any business. These are leading indicators: if
customers are not satisfied, they will eventually find othersuppliers that will meet their needs. Poor performance from this
perspective is thus a leading indicator of future decline, eventhough the current financial picture may look good.
In developing metrics for satisfaction, customers should beanalyzed in terms of kinds of customers and the kinds of
processes for which we are providing a product or service to thosecustomer groups.
The Financial PerspectiveKaplan and Norton do not disregard the traditional need for
financial data. Timely and accurate funding data will always be apriority, and managers will do whatever necessary to provide it. In
fact, often there is more than enough handling and processing offinancial data. With the implementation of a corporate database, it
is hoped that more of the processing can be centralized andautomated. But the point is that the current emphasis on
financials leads to the "unbalanced" situation with regard to otherperspectives. There is perhaps a need to include additional
financial-related data, such as risk assessment and cost-benefitdata, in this category.
Strategy Mapping
Strategy maps are communication tools used to tell a story of howvalue is created for the organization. They show a logical, step-
by-step connection between strategic objectives (shown as ovalson the map) in the form of a cause-and-effect chain. Generally
speaking, improving performance in the objectives found in theLearning & Growth perspective (the bottom row) enables the
organization to improve its Internal Process perspective Objectives(the next row up), which in turn enables the organization to create
desirable results in the Customer and Financial perspectives (thetop two rows).
Using the Balanced Scoreca
to Align Your Organizationby Howard RohmBalanced Scorecards, when developestrategic planning and managementsystems, can help align an organizatbehind a shared vision of success.
Read More >>
The Balanced Scorecard --
Just Another Projectby Paul ArvesonThe balanced scorecard managemensystem is not just another project. Itfundamentally different from projectmanagement in several respects.Read More >>
Web 2.0 and the Automated BalanceScorecardby David WilseyImprove Your Performance "News"Read More >>
The Balanced Scorecarand Measurement-Base
Managementby Paul Arveson
Improve GovernmenPerformanceRead More>>
What is a BalancedScorecard?Need more information? Sign up forwebinar or our e-learning program fomore.
http://www.balancedscorecard.org/Portals/0/PDF/BalancedPerformance_Article1.pdfhttp://www.balancedscorecard.org/Portals/0/PDF/BalancedPerformance_Article1.pdfhttp://www.balancedscorecard.org/Portals/0/PDF/BalancedPerformance_Article1.pdfhttp://www.balancedscorecard.org/LinkClick.aspx?link=168&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?link=168&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?link=168&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?fileticket=m9H3wN2br50%3D&tabid=61http://www.balancedscorecard.org/LinkClick.aspx?fileticket=m9H3wN2br50%3D&tabid=61http://www.balancedscorecard.org/LinkClick.aspx?fileticket=m9H3wN2br50%3D&tabid=61http://www.balancedscorecard.org/LinkClick.aspx?link=340&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?link=340&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?link=340&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?link=377&tabid=55http://www.balancedscorecard.org/Store/tabid/351/pid/7/Balanced-Scorecard-Executive-Overview-Webinar.aspxhttp://www.balancedscorecard.org/Store/tabid/351/cid/3/E-Learning-Courses.aspxhttp://www.balancedscorecard.org/Portals/0/PDF/BalancedPerformance_Article1.pdfhttp://www.balancedscorecard.org/Portals/0/PDF/BalancedPerformance_Article1.pdfhttp://www.balancedscorecard.org/Portals/0/PDF/BalancedPerformance_Article1.pdfhttp://www.balancedscorecard.org/LinkClick.aspx?link=168&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?link=168&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?link=168&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?link=168&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?fileticket=m9H3wN2br50%3D&tabid=61http://www.balancedscorecard.org/LinkClick.aspx?fileticket=m9H3wN2br50%3D&tabid=61http://www.balancedscorecard.org/LinkClick.aspx?fileticket=m9H3wN2br50%3D&tabid=61http://www.balancedscorecard.org/LinkClick.aspx?link=340&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?link=340&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?link=340&tabid=55http://www.balancedscorecard.org/LinkClick.aspx?link=377&tabid=55http://www.balancedscorecard.org/Store/tabid/351/pid/7/Balanced-Scorecard-Executive-Overview-Webinar.aspxhttp://www.balancedscorecard.org/Store/tabid/351/cid/3/E-Learning-Courses.aspx -
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Balanced Scorecard Software
The balanced scorecard is not a piece of software. Unfortunately,
many people believe that implementing software amounts to
implementing a balanced scorecard. Once a scorecard has beendeveloped and implemented, however, performance managementsoftware can be used to get the right performance information to
the right people at the right time. Automation adds structure and
discipline to implementing the Balanced Scorecard system, helpstransform disparate corporate data into information and
knowledge, and helps communicate performance information. The
Balanced Scorecard Institute formally recommends the QuickScorePerformance Information SystemTM developed by Spider Strategies
and co-marketed by the Institute.More about Software >>
Professional Certification
Did you know that
the Institute'sProfessional
CertificationProgram is offered in
association withGWU?
Read More >>View Schedule >>
CloseMove
What are the Primary Implementation Success Factors?
Obtaining executive sponsorship and commitment
Involving a broad base of leaders, managers and employees in scorecard development
Agreeing on terminology
Choosing the right BSC Program Champion
Beginning interactive (two-way) communication first
Working through mission, vision, strategic results, and strategy mapping first to avoid
rushing to judgement on measures or software
Viewing the scorecard as a long-term journey rather than a short-term project
Planning for and managing change
Applying a disciplined implementation framework
Getting outside help if needed
CloseMove
Definitions of Balanced Scorecard Strategic Planning &Management Terms
Customer Value PropositionThe Customer Value Proposition is the unique added value an organization offers customers through its operationthe logical link between action and payoff that the organization must create to be effective. Three aspects of theproposition include Product/Service Attributes (Performance/ Functionality considerations such as quality, timelinor price), Image and Relationship.
Mission
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A mission statement defines why an organization exists; the organization's purpose
Performance MeasuresPerformance Measures are metrics used to provide an analytical basis for decision making and to focus attentionwhat matters most. Performance Measures answer the question, 'How is the organization doing at the job of meeits Strategic Objectives?' Lagging indicators are those that show how successful the organization was in achievin
desired outcomes in the past. Leading indicators are those that are a precursor of future success; performancedrivers.
PerspectivesA Perspective is a view of an organization from a specific vantage point. Four basic perspectives are traditionallyused to encompass an organization's activities. The organization's business model, which encompasses mission,vision, and strategy, determine the appropriate perspectives.
Strategic InitiativesStrategic Initiatives are programs or projects that turn strategy into operational terms and actionable items, provan analytical underpinning for decisions, and provide a structured way to prioritize projects according to strategicimpact. Strategic Initiatives answer the question, What strategic projects must the organization implement to mits Strategic Objectives?
Strategic ObjectivesObjectives are strategy components; continuous improvement activities that must be done to be successful.Objectives are the building blocks of strategy and define the organization's strategic intent. Good objectives areaction-oriented statements, are easy to understand, represent continuous improvement potential and are usually'on-off' projects or activities.
Strategic ResultStrategic results are the desired outcome for the main focus areas of the business. Each Strategic Theme has acorresponding Strategic Result.
Strategic ThemeStrategic Themes are key areas in which an organization must excel in order to achieve its mission and vision, andeliver value to customers. Strategic Themes are the organization's "Pillars of Excellence."
Strategy MapA Strategy Map displays the cause-effect relationships among the objectives that make up a strategy. A goodStrategy Map tells a story of how value is created for the business.
StrategyHow an organization intends to accomplish its vision; an approach, or game plan.
TargetsDesired levels of performance for performance measures
VisionA vision statement is an organization's picture of future success; where it wants to be in the future
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nt Gcom
RegiLog
The matrix organization is an attempt to combine the advantages of the pure functional
structure and the product organizational structure. This form is identically suited for
companies, such as construction, that are project-driven. The figure below shows a typical
Matrix organization.
In a matrix organization, each project manager reports directly to the vice president and the
general manager. Since each project represents a potential profit centre, the power and
authority used by the project manager come directly from the general manager.
Information sharing is mandatory in such an organization, and several people may be
required for the same piece of work. However, in general, the project manager has the total
responsibility and accountability for the success of the project. The functional departments, on
the other hand, have functional responsibility to maintain technical excellence on the project.
Each functional unit is headed by a department manager whose prime responsibility is to
ensure that a unified technical base is maintained and that all available information can be
exchanged for each project.
Typical Matrix organization
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The basis for the matrix organization is an endeavor to create synergism through shared
responsibility between project and functional management. Other advantages of a pure matrix
organizational form, to project management, include:
Because key people can be shared, the project cost is minimized
Conflicts are minimal, and those requiring hierarchical referrals are more easilyresolved
There is a better balance between time, cost and performance
Authority and responsibility are shared
Stress is distributed among the team
Material Requirements Planning (MRP)
A computerized system for managing dependent-demandinventory, scheduling replenishment orders, and meeting demandfor end items as given in the Master Production Schedule.
Two basic characteristics of MRP:
1. MRP derives demand for components, subassemblies, materials, etc.,from demand for and production schedules ofparent items.
2. MRP offsets replenishment orders (purchase orders or productionschedules) relative to the date when replenishment is needed.
Information Needed for MRP Information Obtained from MRP
Demand for all products. Lead times for all finished
goods, components, partsand raw materials
Lot sizing policies for allparts
Opening inventory levels Safety stock requirements
Any orders previouslyplaced but which haven'tarrived yet
Planned orders: replenishment orders tobe released at a future time
Order release notice: notices to releaseplanned orders
Action notices: notices to expedite, de-expedite, or cancel orders, or to change
order quantities or due dates Priority reports: information regarding
which orders should be given priority Inventory status information
Performance reports such as inactiveitems, actual lead times, late orders, etc.
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MRP Inputs1. 1. Master Production Schedule2. Product Structure3. Inventory Levels
p and np Control Charts
Control Limits
Binomial Distribution
Small Sample Case
Summary
Quick Links
Greetings,
Two control charts used with yes/no type data are the p and np control charts.
We usually collect the data and then calculate the average and the control limits,
either manually or with software. But did you know that the control limit equations
for the p and np control charts are only valid under certain conditions? The
equations are not valid when you have what is called the "small sample case" for
p and np control charts. This newsletter discusses this small sample case and
how the control limits are determined.
Best regards,
Bill
p and np Control Chartsp and np control charts are used with yes/no type attributes data. These two
charts are commonly used to monitor the fraction (p chart) or number (np chart)
of defective items in a subgroup of items.
With this type of data, there are only two possible outcomes: either the item is
defective or it is not defective. For example, suppose you are using a p control
chart to track the fraction (or %) of hospital admissions that had incorrect
insurance information each week. There are only two possible outcomes: either
the admission had the correct insurance information or it did not have the correct
insurance information. This type of data is referred to as yes/no data. It either
http://www.spcforexcel.com/small-sample-case-for-p-and-np-control-charts#pAndnpControlCharts%23pAndnpControlChartshttp://www.spcforexcel.com/small-sample-case-for-p-and-np-control-charts#controlLimits%23controlLimitshttp://www.spcforexcel.com/small-sample-case-for-p-and-np-control-charts#binomialDistribution%23binomialDistributionhttp://www.spcforexcel.com/small-sample-case-for-p-and-np-control-charts#smallSampleCase%23smallSampleCasehttp://www.spcforexcel.com/small-sample-case-for-p-and-np-control-charts#summary%23summaryhttp://www.spcforexcel.com/small-sample-case-for-p-and-np-control-charts#quick%23quickhttp://www.spcforexcel.com/small-sample-case-for-p-and-np-control-charts#pAndnpControlCharts%23pAndnpControlChartshttp://www.spcforexcel.com/small-sample-case-for-p-and-np-control-charts#controlLimits%23controlLimitshttp://www.spcforexcel.com/small-sample-case-for-p-and-np-control-charts#binomialDistribution%23binomialDistributionhttp://www.spcforexcel.com/small-sample-case-for-p-and-np-control-charts#smallSampleCase%23smallSampleCasehttp://www.spcforexcel.com/small-sample-case-for-p-and-np-control-charts#summary%23summaryhttp://www.spcforexcel.com/small-sample-case-for-p-and-np-control-charts#quick%23quick -
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meets some preset specification (yes) or it does not meet the preset specification
(no). You would collect data each week on the number of hospital admissions (n,
the subgroup size) and the number with incorrect insurance information (np, the
number defective). Each week you calculate the fraction defective, p, which is
equal to np/n. The values of p are plotted over time. Once enough data isavailable, you calculate the average (pbar) and control limits (LCLp and UCLp).
For more information on p control charts, please see our July 2005 newsletter
that is available on our website.
If the subgroup size is the same each time, the np control chart can be used in
place of the p control chart. In this case, the number of defective items (np) is
plotted over time. Again, once enough data is available, you calculate the
average (npbar) and control limits (UCLnp and LCLnp).
Both these charts involve counts. You are counting items. To use a p or np
control chart, the counts must also satisfy the following two conditions:
1. You are counting n distinct items. np is the number of items
in those n items that fail to conform to specification.
2. Suppose p' is the probability that an item will fail to conform
to the specification. The value of p' must be the same for each of
the n items in a single sample.
If these two conditions are met, the binomial distribution can be used to estimate
the distribution of the counts and the p or np control charts can be used. Becareful here because condition 2 does not always hold. For example, some
people use the p control chart to monitor on-time delivery on a monthly basis.
This is not valid unless the probability of each shipment during the month being
on-time for all the shipments is the same. Big customers often get priority on their
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orders, so the probability of their orders being on time is different than for other
customers and you can't use the p control chart.
Click here to access all our previous newsletters.
Control LimitsThe control limits for the p control chart are given below.
where pbar is the average fraction defective, n is the subgroup size, UCLp is the
upper control limit and LCLp is the lower control limit.
The control limits for the np control chart are given below.
where npbar is the average number of defective items, UCLnp is the upper
control limit and LCLnp is the lower control limit.
These equations for the control limits are commonly used. However, thesecontrol limits are only valid under certain conditions. The basic probability
distribution for the calculation of control limits for the p and np charts is the
binomial distribution. Under certain conditions, the binomial distribution is
symmetrical and the control limits for the p and np control charts are those given
above.
Suppose you have a process that is in statistical control with an average fraction
defective of pbar. Since the process is in control, any p values obtained should
fall between the control limits in a random fashion. The chance that p will fall
outside the control limits is approximately 3 out of 1,000. These control limits aregood as long as n*pbar is sufficiently large. In these cases, the binomial
distribution is symmetrical and the equations above provide good estimates of
the control limits.
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Our SPC for Excel software easily constructs and updates control charts. And it
automatically handles the small sample case for p and np control charts. Click
here.
Binomial DistributionIf n*pbar is not sufficiently large, the binomial distribution is not symmetrical. In
these cases, the control limit equations are no longer valid. n*pbar is not
sufficiently large if n*pbar < 5 or if n*(1-pbar) < 5. This is referred to as small
sample case for p and np charts. The figures below demonstrate how the shape
of the binomial distribution changes as n*pbar changes from 0.5 to 5.0. As can
be seen in the figures, the binomial distribution becomes more symmetrical and
approaches the shape of a normal distribution as n*pbar becomes larger. When
the distribution is symmetrical, the control limit equations are valid.
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Small Sample CaseIf n*pbar < 5 or if n*(1-pbar) < 5, the above control limit equations cannot be used
to determine the control limits. The control limits must be derived from thebinomial distribution. We have generated a table that gives you the control limits
in this small sample case. The table is available for download from the website at
this link (small sample case p and np charts download).
The table gives the upper and lower control limits for various values of pbar from
0.001 to 0.5 and for values of n from 5 to 50. These control limits are exact
solutions of the equation governing the binomial distribution with the assumption
that the probability (P) of obtaining a point beyond the control limits is less than
or equal to 0.003:
P(p = UCLp)
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LCLnp = None
A portion of the table is shown below.
n 8 9 10
pbar LCL UCL LCL UCL LCL UCL0.01 - 2 - 3 - 30.02 - 3 - 3 - 3
0.03 - 3 - 3 - 3
0.04 - 4 - 4 - 4
0.05 - 4 - 4 - 4
0.06 - 4 - 4 - 4
0.07 - 4 - 4 - 5
0.08 - 4 - 5 - 5
0.09 - 5 - 5 - 5
0.10 - 5 - 5 - 50.11 - 5 - 5 - 5
0.12 - 5 - 5 - 6
0.13 - 5 - 5 - 6
0.14 - 5 - 6 - 6
0.15 - 5 - 6 - 6
0.16 - 6 - 6 - 6
0.17 - 6 - 6 - 6
0.18 - 6 - 6 - 7
0.19 - 6 - 6 - 7
0.20 - 6 - 7 - 7
The control limits are converted from an np chart to a p chart by dividing by n:
UCLp = UCLnp/n = 3/10 = 0.3
LCLp = LCLnp/n = None/10 = None
If the control limit equations were used, the control limits would be:
The LCLp is actually -0.08 but since it is less than zero, there is no LCLp. Note
the difference between the UCLp calculated using the equations (UCLp = 0.1)
and that obtained from the table (UCLp = 0.3). This difference is simply due to
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In the case when n*pbar < 5 or n*(1-pbar) < 5, the actual binomial distribution
must be used. A table has been provided for pbar = .001 to .5 and n from 4 to 50
that provides these control limits.
Attachment Size
small sample case for p and np charts.xls 68 KB
Quick LinksVisit our home page
SPC for Excel Software
What is it: The NP-Chart is used for monitoring the number of
times a condition occurs, relative to a constant sample size,
when each sample can either have this condition, or not have
this condition. The Np-Chart monitors the number of times a
condition occurs, relative to a constant sample size, when each
sample can either have this condition, or not have this condition.
For our example, we would sample a set number of transactions
each month from all the transactions that occurred, and from this
sample count the number of transactions that had one or moreerrors. We would then track on the control chart the number of
transactions with errors per month.
Why use it: The Np Control Chart is used to determine if the
rate of nonconforming product is stable, and will detect when a
deviation from stability has occurred. There is a difference
between a "P-Chart" and an "Np-Chart". A P-Chart is one that
shows the fraction defective (p), whereas the NP-Chart shows
the NUMBER of defectives (Np). They are practically the same
thing with the exception that an NP-Chart is used when the sizeof the subgroup (N) is constant, and a P-Chart is used when it is
NOT constant.
Where to use it: In industrial statistics, the NP-Chart is a
type of control chart that is very similar to the P-Chart except
that the statistic being plotted is a number count rather than a
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sample proportion of items. For example, an NP-Chart often
shows the number of nonconforming items in each sample.
Since we are counting failures or successes, clearly the
appropriate data for NP-charts need to be attribute data. Thesubgroup size must be constant, as comparisons of counts
would otherwise be meaningless.
When to use it: To measure the number of defective items
along a time sequence.
How to use it: NP-Chart overview:
1. The "NP" stands for the number of nonconforming items,
which can be expressed as n (sample size) times P
(proportion of nonconforming items)
2. Need a good definition of nonconforming items usually
a categorical definition
3. Subgroup size must be constant
4. Normally need large subgroups can even be up to total
for the period
Control limits for the NP-Chart are calculated on the basis of the
binomial distribution and an approximation based on the central
limit theorem.
Steps In Constructing a NP-Chart
1. Collect the data recording the number inspected (N) and
the number of defective products (NP). Divide the data
into subgroups.
2. Record the number of defectives on a chart or
spreadsheet, along with the subgroup size.
3. Record the number of defectives for each subgroup and
record on the data sheet. Then total both columns.
4. Compute the Control Limits.5. Draw in the Control Limits and plot the number of
defective parts listed in our chart above. Connect the
dots and observe the chart to determine if there are any
points out of the control limits.
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