e006823 said:
Is there a reason that you use the sample standard devistion when calculating the control limits rather then using Rbar and the subgroup constant? Everything I've read has suggested that using the standard deviation results in inflated control limits.
There are a few reasons I have chosen to use the sample standard deviation.
1. The sample standard deviation is the Maximum Likelihood Estimator, and is unbiased. It is the most "powerful" of the estimates of the ways to estimate standard deviation.
2. Using Range requires you to assume Normality. The various d2 values come from assuming Normality.
3. Shewhart compared the methods to estimate standard deviation and did make an argument for using the sample standard deviation in Economic Control of Manufactured Product.
4. There is some indication in the older literature that Range was chosen due to you could calculate the standard deviation using a slide rule and adding machine. Now it is actually harder in Excel to calculate using the Range (but not that hard, you just have to set up your forumula) than using the sample standard deviation.
5. My initial work at Hanford was in cycle times of work packages. At first I did Xbar - R in subsamples of 5. Management was very confused. They were used to managing by the calendar month, and depending on how many work packages were completed, there were differing numbers of data points on each monthly update. They wanted a monthly increment. So, we (Phil Monroe and I) shifted the charts to plot the average cycle time for the month, and then we took the standard deviation of the monthly averages.
Here are the disadvantages of using sample standard deviation:
1. Almost all of the SPC literature (including Dr. Wheeler) tell you to use Range.
2. Taking the monthly averages and then taking the standard deviation of that loses a lot of information and loses some of the "power" in the data. On some charts I have experimented with displaying 3 standard deviation limits based upon the sample standard deviation within the month. Preferably also, I should somehow make use of the variation within the month in establishing the standard deviation. Dr. Wheeler definitely points to this disadvantage. But I have yet to find a way to do it that is comprehensible by the people using the charts.
3. If you inadvertenly leave an outlier within the data, the standard deviation estimate will be inflated due to the distance from the mean is squared rather than just added together.
A few final comments:
1. The vast majority of my charts are p, c, or u due to my work with safety and quality data. Not many charts are x charts.
2. On the x charts I have, I at one point about 4 years ago calculated what the moving range gave me. In all cases, there was no difference in interpretation of what the data were telling you. That is, in no case did the range move the control limits inwards enough to suddenly tell me I now had a signal.
3. The Hanford Primer does "allow" you to use xbar R or moving range. I admit I don't go into much detail about it, but it is easy enough to find.