Control chart, also known as Shewhart chart or process-behavior chart, is widely used to determine if a manufacturing or business process is in a state of statistical control. This tutorial introduces the detailed steps about creating a control chart in Excel.
For example, you have below base data needed to create a control chart in Excel .
Now please follow the steps to finish a control chart.
1. Firstly, you need to calculate the mean (average) and standard deviation. Select a blank cell next to your base data, and type this formula =AVERAGE(B2:B32), press Enter key and then in the below cell, type this formula =STDEV.S(B2:B32), press Enter key.
Note: In Excel 2007, please enter this formula =STDEV(B2:B32) to calculate the standard Deviation. In the above formulas, B2: B32 is the base data range.
2. Then go to the Control Line column, and in the first cell below the header, cell C2, type this formula =$H$1 (cell $H$1 is the average result), and drag the fill handle to fill the data range you need.
3. In the first cell below Up Control Line column, cell D2, type this formula =$H$1+($H$2*3) ($H$1 is the average result and $H$2 is the standard deviation result), then drag the auto fill handle to the range you need.
4. Under Below Control Line column, type =$H$1-($H$2*3) ($H$1 is the average result and $H$2 is the standard deviation result), then drag the auto fill handle to the range you need.
Now you can insert a chart.
5. Select Date and Sample Measure columns and click Insert > Line > Line to insert a line chart. See screenshot:
6. Then right click on the line chart and click Select Data from context menu.
7. In the Select Data Source dialog, click Add button, then in the Edit Series dialog, select Control Line as the Series Name, and select the relative data into the Series values text box.
8. Click OK, then repeat step 7 to add Up Control Line and Lower Control Line as the series in the Legend Entries (Series) section.
9. Click OK to exit the dialog, now a control chart is created.
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This is not Shewharts method. This is an incorrect method of calculating control limits. Global standard deviation should not be used as shown in this tutorial. Instead we should use estimated standard deviation based on Moving range and the appropriate statistical constant (1.128). Sigma = MR/1.128.
When we use global sample standard deviation, almost ALL of the data points will always fall within control limits until we have a very large data set. This is not ideal in practice.