One and Two Sample Z Proportion Hypothesis Tests

The one and two-sample proportion hypothesis tests involve one factor with one and two samples, and likewise, these tests may assume a binomial distribution. If more than two samples exist then use the Chi-Square test.

One Sample Z Proportion Hypothesis Test

The One Sample Proportion Test is used to estimate the proportion of a population. It compares the proportion to a target or reference value and also calculates a range of values that is likely to include the population proportion. This is also called the hypothesis of inequality.

Furthermore, use normal approximation or binomial enumeration based on the sample size. If the sample size is large, then normal approximation will give more accurate results. If the sample size is less then binomial enumeration gives much more accurate results.

Assumptions of the one sample Z Proportion test

  • Firstly, the data are random values from the population
  • Secondly, the population follows a binomial distribution
  • When both mean (np) and variance( n(1-p)) values are greater than 10, the binomial distribution can be approximated by the normal distribution

Hypothesis of one sample Z proportion test

  • Null hypothesis: population proportion is equal to the hypothesized proportion
  • Alternative hypothesis: population proportion is not equal to or different from the hypothesized proportion (two-tailed)
  • Population proportion is greater than the hypothesized proportion (one-tailed)
  • Population proportion is less than the hypothesized proportion (one-tailed)

Test statistic for one sample Z proportions test

One and Two Sample Proportion Hypothesis Tests

Where

  • z is the test statistic
  • p̂is observed proportion
  • P0 is the hypothesized probability
  • n is the sample size

Procedure to execute One Sample Z Proportion Hypothesis Test

  • Firstly, state the null hypothesis and alternative hypothesis
  • State alpha, in other words, determines the significance level
  • Thirdly, compute the test statistic
  • Fourthly, determine the critical value (from the critical value table)
  • Then, define the rejection criteria
  • Finally, interpret the result. In the event that the test statistic falls in the critical region, reject the null hypothesis

Example of One Sample Z Proportion Test

A researcher claims that Republican Party will win in the next Senate elections, especially in Florida State. Statistical data reported that 23% voted for Republican Party in the last election. To test the claim a researcher surveyed 80 people and found 22 said they voted for Republican Party in the last election. Is there enough evidence at α=0.05 to support this claim?

  • P0=0.23
  • n=80
  • p̂=22/80=0.275

Then, define the Null and Alternative hypothesis

  • Null Hypothesis: p= 0.23
  • Alternative Hypothesis: p≠0.23

State Alpha

  • α=0.05

State decision rule

Example of One Sample Proportion  Test
The one and two sample proportion hypothesis

The critical value is ±1.96, hence reject the null hypothesis if the calculated value is less than -1.96 or greater than +1.96

Then, calculate the test statistic

One and Two Sample Proportion Hypothesis Tests
Calculate test statistic

= 0.045 / 0.047 = 0.957

Calculate test statistic

Since the calculated value is between -1.96 and 1.96 and it is not in the critical region, hence failed to reject the null hypothesis.

Six Sigma Black Belt Certification One Sample Proportion Z Test Questions:

Question: Which of the following statement is true, the right-tailed test of a single sample proportion test statistic value is +1.12 and the critical value from the table is +2.89.

(A) Reject the null hypothesis
(B) Failed to reject the null hypothesis
(C) Accept the null alternative hypothesis
(D) None of the above

Answer:

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Mann-Whitney Hypothesis Test

Mann-Whitney Non Parametric U Test

The preferred non-parametric method for unpaired samples is the Mann-Whitney non parametric hypothesis test or Mann-Whitney test (it is also called as Wilcoxon Rank Sum Test or the Mann-Whitney Wilcoxon Test) and thus the non parametric solution to evaluating two independent datasets comparable to the Student’s T-test.

The Mann-Whitney U test is a non-parametric statistical test used to compare two independent samples. It assesses whether the distribution of values in one sample is stochastically greater or less than the distribution of values in another sample. This test does not specifically compare sample means, but rather it evaluates whether the two samples come from the same population or if one tends to have higher values than the other.

How Decision Rules Differ Between Mann-Whitney U and Parametric t-Tests

It’s important to understand how the Mann-Whitney U test differs in decision-making from parametric tests like the independent or paired t-test. While all of these tests aim to determine if two groups differ, their approaches and interpretations are different:

  • Parametric t-Tests: These tests compare means and assume that the underlying data follows a normal distribution. A small p-value in a t-test typically leads to the conclusion that there is a statistically significant difference in average values between the two groups.
  • Mann-Whitney U Test: This test does not compare means. Instead, it ranks the data and tests whether values in one group tend to be higher or lower than those in the other group. It makes no assumption about the shape of the distribution, making it a safer option when data is skewed or ordinal. A significant p-value here suggests that one population tends to yield higher (or lower) values than the other, but not necessarily that their medians or means differ.

So, while both tests help you reject or accept a null hypothesis, the t-test focuses on differences in central tendency (mean), and the Mann-Whitney focuses on differences in rank distributions.

A few researchers also interpret the Mann-Whitney test will help to compare the medians of the two populations. Usually, parametric tests will compare the means (Null hypothesis: μ1=μ2) between the independent groups. Whereas, the null hypotheses and the two-sided hypotheses non-parametric tests can be indicated as follows:

  • Null Hypothesis (H₀): The two populations come from the same distribution.
  • Alternative Hypothesis (H₁): The two populations come from different distributions.

Note: Unlike t-tests, Mann-Whitney does not assume a difference in means, only a difference in distribution or tendency.

The Mann-Whitney test is regularly performed as a two-sided test, therefore the investigative hypothesis indicates that the two populations are not equal, instead of specifying the directionality.

Assumptions of the Mann-Whitney:

  • The sample drawn from the population is random.
  • Independence within the samples and also mutual independence is assumed.  That means that an observation is in one group or in the other (it cannot be in both).
  • Identical (non-normal) distributions
  • An Ordinal measurement scale is assumed.

Uses of Mann-Whitney

The Mann-Whitney U test can be used in many industries, but it is most frequently applied in healthcare, nursing, business, and related fields. In medicine, it is a more efficient method to know the effect of two medicines and whether they are equal or not.  It is also used to know whether or not a particular medicine cures an ailment or not. 

Procedure to conduct Mann-Whitney test

  • Combine the two data samples into a single dataset and sort them in ascending order.
  • Assign ranks to all observations.
  • Separate the ranks back into their original groups.
  • Calculate the U statistic using the sum of ranks for each group.
  • Find the critical U value from the Mann-Whitney table based on your sample sizes and significance level.
  • Compare the calculated U value to the critical value and draw a conclusion.

Calculation of Mann-Whitney Test

Case 1: For comparing two small sets of observations (samples sizes less than 20)

U1 = n1n2+0.5n1(n1+1)-R1

U2 = n1n2+0.5n2(n2+1)-R2

Where U1+U2=n1n2

  • n1 is the observations from the first population
  • n2 is the observations from the second population
  • R1 is the sum of observation ranks for the first population
  • R2 is the sum of observation ranks for the second population

Finally, calculate the U statistic as the smaller U1 and U2. U= min (U1, U2)

Case2: Normal approximation and tie correction

For sample sizes above ~20, the distribution of U rapidly approaches the normal distribution

U mean = μU =0.5 n1n2

Example of Mann-Whitney Test

A researcher, while conducting studies on the Biomass of various trees, wished to determine if there was a difference in the biomass of male and female Juniper trees. So, he randomly selected 6 individuals of each gender from the field. He dries them to constant moisture, chips them, and then weighs them to the nearest kg.

  • H0: There is no difference between the biomass of male and female Juniper trees– Biomassmale = Biomassfemale (medians are equal)
  • H1: There is a difference between the biomass of male and female Juniper trees– Biomassmale ≠ Biomassfemale (medians are not equal)

The data are ratings (ordinal data), and hence a non-parametric test is appropriate – the Mann-Whitney U test (the non-parametric counterpart of an independent measures t-test).

  • n1 =6
  • n2 =6
  • R1 = 1.5 + 3 + 5.5 + 7.5 + 4 + 1.5 = 23
  • R2 = 5.5 + 11 + 10 + 12 + 9 + 7.5 = 55

And then calculate U1 and U2

  • U1 = n1n2+0.5n1(n1+1)-R1 = 6 *6 + 0.5 * 6(7) – 23 = 34
  • U2 = n1n2+0.5n2(n2+1)-R2 = 6 * 6 + 0.5 * 6(7) – 55 = 2

U= min (U1, U2) = 2

Mann-Whitney Table: For Two-Tailed Test at a 5% Significance Level

Mann-Whitney Non Parametric Hypothesis test table

Ucritical = 5

Calculated U is a value less than the critical value of U for a 0.05 significance level. Ucalculated < Ucritical . Hence, we can reject the null hypothesis.

Therefore, we reject the null hypothesis and conclude that there is a statistically significant difference in the biomass distributions between male and female Juniper trees.

Six Sigma Black Belt Certification Mann-Whitney Test Questions:

Question: Which of the following test is calculated by ranking all the participant’s scores from lowest to highest and adding up the ranks separately for each of the groups?

(A) Wilcoxon signed rank test
(B) Kruskal Wallis test
(C) Mann-Whitney test
(D) Friedman Test

Answer:

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Clarifying Six Sigma Jargon

Six Sigma terminology, sometimes politely called “terminology” but more accurately described as jargon, can overwhelm new learners. If you are studying for a Green Belt or Black Belt, the vocabulary alone can feel like learning a new language.

One reader captured this challenge perfectly in a survey response:

“I’m studying for Green Belt and the jargon is mind blowing. I think to make this more accessible and understandable for fresh students who are not aware of LSS, the narrative needs to be diluted and the jargon made simpler. The classic example is something like the explanation of a standard distribution as the mechanism for gaining the benchmark is not very clear.”
– Karle

Karle is absolutely right.

Many Six Sigma books and instructors assume you already speak the language. Terms like sigma level, process capability, control limits, and standard deviation are often introduced quickly, sometimes with little connection to real-world applications.

The result is predictable: students memorize vocabulary without understanding how it works.

This article fixes that.

Instead of repeating textbook definitions, we will explain the most common Six Sigma terms in clear language, connect them to real business problems, and show how they fit inside the broader improvement framework. If you want the more formal definitions alongside these, ASQ’s quality glossary is a solid cross-reference.


Why Six Sigma Jargon Exists

Before learning the terminology, it helps to understand why the jargon exists in the first place.

Six Sigma developed at Motorola in the 1980s as a data-driven methodology for reducing defects and improving processes. The approach draws heavily from statistics, quality engineering, and operations management.

That heritage explains the language.

Much of Six Sigma vocabulary comes from:

• Statistics
• Manufacturing quality control
• Industrial engineering
• Scientific experimentation

Unfortunately, when these technical ideas move into corporate training programs, the language often remains highly technical.

The goal of this guide is to translate that language into plain English without sacrificing accuracy.


The Six Sigma Vocabulary Landscape

Six Sigma terminology generally falls into five categories:

CategoryExamplesPurpose
Methodology TermsDMAIC, DMADVFrameworks for improvement
Statistical TermsMean, Standard Deviation, Z ScoreMeasuring variation
Process TermsDefects, Yield, ThroughputDescribing performance
Project RolesGreen Belt, Black Belt, ChampionOrganizational structure
Analytical ToolsControl Charts, Pareto ChartsData analysis and visualization

Understanding the context of a term is often more important than memorizing the definition.

For example:

A defect in manufacturing might mean a scratched surface.
A defect in healthcare might mean a medication error.

Same concept, different context.


The Core Six Sigma Framework: DMAIC

At the center of most Six Sigma projects is the DMAIC methodology, which provides a structured way to improve processes.

For a full breakdown see:
DMAIC

DMAIC stands for:

PhasePurpose
DefineIdentify the problem
MeasureCollect data on the current process
AnalyzeIdentify root causes of defects
ImproveImplement solutions
ControlSustain the improvement

Think of DMAIC as a scientific method for business problems.


Essential Six Sigma Terms Explained

Defect

A defect is any outcome that does not meet customer requirements.

Examples:

Manufacturing: scratched product
Healthcare: delayed medication
Finance: incorrect invoice

Key insight:

A defect is defined by the customer’s expectations, not internal company standards.


Variation

Variation refers to differences in outcomes from one process execution to another.

Example:

A coffee shop promises drinks in 4 minutes.

Actual times:

3 minutes
5 minutes
6 minutes
4 minutes

The variation is the difference between those results.

Reducing variation is the central goal of Six Sigma.


Mean (Average)

The mean represents the average value of a dataset.

Example:

Delivery times:
4, 5, 6, 5 minutes

Mean:

(4 + 5 + 6 + 5) / 4 = 5 minutes

However, averages alone can hide problems. That is where variation measurements become critical.


Standard Deviation

Standard deviation measures how spread out data points are around the average.

Small standard deviation:

Results are tightly clustered.

Large standard deviation:

Results are widely scattered.

This concept is foundational to Six Sigma.

z=x−μσz = \frac{x-\mu}{\sigma}

z=x−μσz = \frac{x-\mu}{\sigma}z=σx−μ​

xxx

μ\muμ

σ\sigmaσ

z=x−μσ≈1.2z=\frac{x-\mu}{\sigma}\approx 1.2z=σx−μ​≈1.2

Φ(z)≈88.5%\Phi(z)\approx 88.5\%Φ(z)≈88.5%

The formula above shows how individual values are compared to the average using standard deviation.

Where:

• x = observed value
• μ = mean
• σ = standard deviation

This formula creates the standard score, or Z-score.

Learn more here:
Z Scores


Understanding the Normal Distribution

One of the most confusing ideas for beginners is the normal distribution, sometimes called the bell curve.

In simple terms:

Most outcomes occur near the average.
Extreme outcomes occur rarely.

Visualize exam scores in a class.

Most students score near the middle.
Few score extremely high or extremely low.

The normal distribution helps us predict how often defects will occur.

Typical distribution pattern:

Sigma LevelDefects per Million
1 Sigma690,000
2 Sigma308,000
3 Sigma66,800
4 Sigma6,210
5 Sigma233
6 Sigma3.4

A Six Sigma process produces only 3.4 defects per million opportunities.


Process Capability

Process capability measures how well a process meets specifications.

Two commonly used metrics:

MetricMeaning
CpPotential capability
CpkActual capability

Cp assumes the process is centered perfectly.

Cpk accounts for shifts in the process mean.

In real-world operations, Cpk is usually more important.


Control Limits vs Specification Limits

This distinction causes confusion even among experienced practitioners.

Control Limits

Control limits are statistically calculated boundaries that show expected variation.

They are determined by process data.

Specification Limits

Specification limits are customer requirements.

They are determined by business needs.

Example:

TypeExample
Spec limitDelivery must be under 48 hours
Control limitProcess normally varies between 30-60 hours

A process can be statistically stable but still fail customer expectations.


Voice of the Customer (VOC)

VOC refers to the stated and unstated needs of customers.

Methods for capturing VOC include:

• Surveys
• Interviews
• Customer complaints
• Market research

VOC drives the definition of Critical to Quality (CTQ) requirements.


Critical to Quality (CTQ)

CTQs are measurable characteristics that define quality from the customer’s perspective.

Examples:

IndustryCTQ
ManufacturingProduct durability
HealthcarePatient wait time
BankingTransaction accuracy
SoftwareSystem uptime

CTQs translate vague expectations like “good service” into measurable performance metrics.


DPMO (Defects per Million Opportunities)

DPMO standardizes defect measurement across industries.

Formula:

DPMO =
(defects / opportunities) × 1,000,000

Example:

1000 invoices processed
10 errors

DPMO =

10 / 1000 × 1,000,000 = 10,000

This allows organizations to benchmark performance across processes.


First Pass Yield

First Pass Yield measures the percentage of units that move through a process without rework.

Example:

100 units produced
85 meet specifications immediately

First Pass Yield = 85%

Higher FPY means more efficient processes.


Pareto Principle (80/20 Rule)

The Pareto principle states:

80% of problems typically come from 20% of causes.

This principle is commonly visualized using a Pareto chart.

Example causes of defects:

CauseFrequency
Supplier errors40
Machine calibration25
Training gaps15
Packaging issues10

Focusing on the first two causes solves most problems.


Root Cause Analysis

Root cause analysis identifies the true underlying causes of problems, not just symptoms.

Common tools include:

• Fishbone diagrams
• 5 Whys
• Failure Mode and Effects Analysis (FMEA)

Example:

Problem: Shipping delays

Why?

Packing delays

Why?

Inventory missing

Why?

Inventory system inaccurate

Root cause: inventory tracking errors.


Control Charts

Control charts monitor process stability over time.

They help answer a critical question:

Is this variation normal, or is something wrong?

Typical chart components:

ElementMeaning
Center lineProcess average
Upper Control LimitExpected upper boundary
Lower Control LimitExpected lower boundary

Points outside limits signal special cause variation.


Common Misconceptions About Six Sigma

Misconception 1: Six Sigma Is Only for Manufacturing

Many people assume Six Sigma only applies to factories.

In reality, it is widely used in:

• Healthcare
• Finance
• Logistics
• Software
• Government

Any repeatable process can benefit from Six Sigma.


Misconception 2: Six Sigma Eliminates All Variation

Variation can never be completely eliminated.

The goal is to reduce variation to acceptable levels.


Misconception 3: Six Sigma Is Only Statistics

Statistics are tools, not the goal.

Six Sigma is fundamentally about:

• understanding processes
• solving problems
• improving customer outcomes


Real DMAIC Case Study: Reducing Customer Service Delays

Define

A telecommunications company receives complaints about slow support responses.

Goal:

Reduce response time below 10 minutes.


Measure

Data collection shows:

Average response time: 14 minutes
Standard deviation: 6 minutes

Large variation exists.


Analyze

Pareto analysis identifies key drivers:

Cause% of delays
Ticket routing errors45%
Agent availability30%
Incomplete requests15%

Improve

Solutions implemented:

• automated ticket routing
• revised staffing schedules
• improved request forms


Control

Control charts monitor response times weekly.

Result:

Average response time reduced to 7 minutes.

Variation reduced by 40%.


Why Learning the Jargon Still Matters

Although jargon can be frustrating, it serves a purpose.

Standard terminology allows teams to communicate precisely.

When someone says:

“Process capability is 1.33”

Everyone in the room immediately understands the implication.

However, effective practitioners translate these terms into business language for stakeholders.


How to Learn Six Sigma Terminology Faster

Instead of memorizing definitions, try these strategies.

Connect Terms to Real Work

Relate concepts to your own processes.

Visualize the Data

Charts and graphs make statistical concepts intuitive.

Apply the Concepts

Work through small improvement projects.

Ask Questions

If terminology feels confusing, it usually means the explanation was poor, not that the concept is impossible.


A Commitment to Jargon-Free Learning

At SixSigmaStudyGuide.com, the goal is simple:

Make Six Sigma clear and practical.

There are already hundreds of jargon-free articles on the site, and more are being added regularly.

If you encounter a term that still feels confusing:

  1. Use the search bar on the site
  2. Read the related articles
  3. Leave a question in the comments if anything remains unclear

Thousands of learners visit the site, and the community frequently helps answer questions.

Sometimes the fastest way to learn Six Sigma is to hear the concept explained in plain language by someone who has applied it in real life.

IASSC Lean Six Sigma Green Belt Study Guide

The IASSC Lean Six Sigma Green Belt Study Guide is a free, quick-reference list of essential material to prepare for and pass the certification exam. Master the IASSC Six Sigma Greenbelt Body of Knowledge with this Study Guide.

Speaking of passing their exam, did you know that my Lean Six Sigma Green Belt study guide comes with a pass-or-refund guarantee? Complete the course, and if you don’t pass your exam (IASSC, ASQ, Villanova, etc), I’ll refund you. Sign up here.

 IASSC Six Sigma Greenbelt

IASSC Universally Accepted Lean Six Sigma Body of Knowledge for Green Belts

1.0 Define Phase

1.1 The Basics of Six Sigma
1.1.1 Meanings of Six Sigma
1.1.2 General History of Six Sigma & Continuous Improvement
1.1.3 Deliverables of a Lean Six Sigma Project
1.1.4 The Problem Solving Strategy Y = f(x)
1.1.5 Voice of the Customer, Business and Employee
1.1.6 Six Sigma Roles & Responsibilities

1.2 The Fundamentals of Six Sigma
1.2.1 Defining a Process
1.2.2 Critical to Quality Characteristics (CTQ’s)
1.2.3 Cost of Poor Quality (COPQ)
1.2.4 Pareto Analysis (80:20 rule)
1.2.5 Basic Six Sigma Metrics
a. including DPU, DPMO, FTY, RTY Cycle Time, deriving these metrics and these metrics. (Also see lean metrics)

1.3 Selecting Lean Six Sigma Projects
1.3.1 Building a Business Case & Project Charter
1.3.2 Developing Project Metrics
1.3.3 Financial Evaluation & Benefits Capture

1.4 The Lean Enterprise
1.4.1 Understanding Lean
1.4.2 The History of Lean
1.4.3 Lean & Six Sigma

1.4.4 The Seven Elements of Waste
a. Overproduction, Correction, Inventory, Motion, Overprocessing, Conveyance, Waiting.
1.4.5 5S
a. Straighten, Shine, Standardize, Self-Discipline, Sort

2.0 Measure Phase

2.1 Process Definition
2.1.1 Cause & Effect / Fishbone Diagrams
2.1.2 Process Mapping, SIPOC, Value Stream Map (Also see: Process Map, Difference between Process Map and Value Stream Map)
2.1.3 X-Y Diagram
2.1.4 Failure Modes & Effects Analysis (FMEA)

2.2 Six Sigma Statistics
2.2.1 Basic Statistics
2.2.2 Descriptive Statistics
2.2.3 Normal Distributions & Normality
2.2.4 Graphical Analysis

Rusty on the math behind these topics? Join the Math Confidence for Six Sigma waitlist and I’ll let you know when the course opens.

2.3 Measurement System Analysis
2.3.1 Precision & Accuracy
2.3.2 Bias, Linearity & Stability
2.3.3 Gage Repeatability & Reproducibility
2.3.4 Variable & Attribute MSA

2.4 Process Capability
2.4.1 Capability Analysis
2.4.2 Concept of Stability
2.4.3 Attribute & Discrete Capability
2.4.4 Monitoring Techniques

3.0 Analyze Phase

3.1 Patterns of Variation
3.1.1 Multi-Vari Analysis
3.1.2 Classes of Distributions

3.2 Inferential Statistics
3.2.1 Understanding Inference
3.2.2 Sampling Techniques & Uses
3.2.3 Central Limit Theorem

3.3 Hypothesis Testing
3.3.1 General Concepts & Goals of Hypothesis Testing
3.3.2 Significance; Practical vs. Statistical
3.3.3 Risk; Alpha & Beta
3.3.4 Types of Hypothesis Test

3.4 Hypothesis Testing with Normal Data
3.4.1 1 & 2 sample t-tests
3.4.2 1 sample variance
3.4.3 One Way ANOVA
a. Including Tests of Equal Variance, Normality Testing and Sample Size calculation, performing tests and interpreting results.

3.5 Hypothesis Testing with Non-Normal Data
3.5.1 Mann-Whitney
3.5.2 Kruskal-Wallis
3.5.3 Mood’s Median
3.5.4 Friedman
3.5.5 1 Sample Sign
3.5.6 1 Sample Wilcoxon
3.5.7 One and Two Sample Proportion
3.5.8 Chi-Squared (Contingency Tables)
a. Including Tests of Equal Variance, Normality Testing and Sample Size calculation, performing tests and interpreting results.

4.0 Improve Phase

4.1 Simple Linear Regression
4.1.1 Correlation
4.1.2 Regression Equations
4.1.3 Residuals Analysis

4.2 Multiple Regression Analysis
4.2.1 Non- Linear Regression
4.2.2 Multiple Linear Regression
4.2.3 Confidence & Prediction Intervals
4.2.4 Residuals Analysis
4.2.5 Data Transformation, Box Cox

5.0 Control Phase

5.1 Lean Controls
5.1.1 Control Methods for 5S
5.1.2 Kanban
5.1.3 Poka-Yoke (Mistake Proofing)

5.2 Statistical Process Control (SPC)
5.2.1 Data Collection for SPC
5.2.2 I-MR Chart
5.2.3 Xbar-R Chart
5.2.4 U Chart

5.2.5 P Chart

5.2.6 NP Chart
5.2.7 X-S chart
5.2.8 CumSum Chart
5.2.9 EWMA Chart
5.2.10 Control Chart Anatomy

5.3 Six Sigma Control Plans
5.3.1 Cost Benefit Analysis
5.3.2 Elements of the Control Plan
5.3.3 Elements of the Response Plan

Be sure to check the official IASSC Green Belt page for latest updates.

When you’re ready, there are a few ways I can help:

First, join 12,000+ other Six Sigma professionals by subscribing to my email newsletter. A short read every Monday to start your work week off correctly. Always free.

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You’ve spent so much effort learning Lean Six Sigma. Why leave passing your certification exam up to chance? This comprehensive study guide offers 1,000+ exam-like questions for Green Belts (2,000+ for Black Belts) with full answer walkthroughs, access to instructors, detailed study material, and more.

​ Thousands have used this system to prepare. Join them here. 

Control Charts Study Guide

Control charts are among the hardest things to understand for those studying Six Sigma. Here’s an easy Control Charts Study Guide for you.

While studying for the Six Sigma Black Belt Exam, I noticed many questions on the control charts. Besides that, I noticed that there were a lot of different types of control charts. You had to use one for certain kinds of data or the number of units in the sample. Then you had to use other control charts in different instances.

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Beyond that, several of the data sets go with different distribution types. You take this for granted when a question is specifically about data. However, I found it was easy to get tripped up on the exam when it came up in control chart questions.

Very confusing, right????

So, in the spirit of continuous improvement, we made the following control charts study guide.

Control Charts Study Guide Overview

Control Chart: A control chart is one of the primary techniques of statistical process control (SPC). It plots quality characteristics measured or computed from a sample against the sample number or time. Walter Shewhart invented the control chart at Bell Labs in the 1920s.

Statistical Process Control: Statistical Process Control (SPC) is a statistical method to measure, monitor, and control a process. In other words, SPC is a quality control method that employs statistical methods to measure, monitor, and control a process.

Common Cause: A cause of variation in the process is due to chance but not assignable to any factor. It is the variation that is inherent in the process. A process under the influence of a common cause will always be stable and predictable.

Assignable Cause (“Special Cause”): You can identify and eliminate the variation in a process that is not due to chance. A process under the influence of a special cause will not be stable and predictable.

Rational Sub-Grouping: Rational sub-grouping is the process of organizing the data into groups produced under the same conditions. Rational subgroups help in the estimation process of short-term variations. Thus, rational subgrouping is the basis for operating control charts in a successful manner. These variations later help us predict the long-term variations and their control limits, depending on the type of causes for the variation (special or common).

Control Charts by Data Type Study Guide

The control chart is a graph used to study how a process changes over time. A control chart always has a central line for the average. It also has an upper line for the upper control limit and a lower line for the lower control limit. The control limits are ±3σ from the centerline.

Selecting an appropriate control chart is very important in control chart mapping. Otherwise, we end up with inaccurate control limits for the data. Not all control charts are the same. Different Data Types require different charts.

Control Charts Study Guide

Control Charts for Continuous Data

Measure the output on a continuous scale. It is possible to measure the quality characteristics of a product. Once you know you are charting continuous data, determine if your population is normal or not and the sample size (n) you are charting.

No matter what you decide, I think you could start off just making a basic Run chart and seeing where that brings you. It is just a basic graph that displays data values in a time order. It can be useful for identifying trends or shifts in the process. A run chart also allows you to test for randomness in the process.

The Data is Normal

Subgroup size n = 1, then use an X-MR or I-MR chart: Use an Individual moving range (I-MR ) chart when data is continuous and not collected in subgroups. In other words, collect a single observation at a time. An I-MR chart provides process variation over time in a graphical method. 

If 1 < n < 10, then use an X bar-R chart. It monitors the process performance of continuous data collected in subgroups at set time periods. Since n is small, use the range to estimate the process variation. It consists of two plots to monitor the process mean and the process variation over time.

Else, If n >= 10, then use an X bar-S chart. It is often used to examine the process mean and standard deviation over time. Use the X bar-S chart when the subgroups have a large sample size. The S chart also gives a better understanding of the spread of subgroup data than the range.

Special Note: If your data is Not Normal

Note that there is some lively conversation in the industry on this. For your application purposes, I suggest you read the following and make your own decisions (if you’re just studying for certification, you can probably skip):

Control Charts for Discrete / Attribute Data Study Guide

Attribute control charts work with attribute data.  In other words, the data that counts the number of defective items or the number of defects per unit. For example, the number of tubes failed on a shop floor. Unlike variable charts, attribute charts plot only one chart.

Four types of control charts exist for attribute data. P charts plot the proportion of defective items, and np charts are for the number of defectives. U charts are for the average number of defects per unit, and C charts are for the number of defects.

Control Charts Study Guide

When there are Multiple Defects (i.e., chances of being defective): It computes control limits based on the Poisson distribution.

C chart-control chart for defects. It generally monitors the number of defects in constant-size units. 

U chart-control chart for defects per unit. It generally monitors the count type of data where the sample size is greater than one. Plots the average number of defects per sample unit.

When there are NOT Multiple Defects:

This population sorts defects into two piles (it’s Binomial). Samples are either good or bad, positive or negative, right or wrong.

np chart-control chart for defectives. It generally monitors the number of non-conforming or defective items in the measurement process.

p chart-control chart for proportions. It generally analyzes the proportions of non-conforming or defective items in a process.

Significance of Central Limit Theorem

The Central Limit Theorem is important for inferential statistics because it allows us to safely assume that the sampling distribution of the mean will be normal in most cases. This means that we can take advantage of statistical techniques that assume a normal distribution.

The Central Limit Theorem is one of the most profound and useful statistical and probability results. Large samples (more than 30) from any distribution of the sample means will follow a normal distribution. The central limit theorem is vital in statistics for two main reasons: the normality assumption and the precision of the estimates.

The spread of the sample means is less (narrower) than the spread of the population you’re sampling from. So, it does not matter how the original population is skewed.

  • The means of the sampling distribution of the mean is equal to the population mean µx̅ =µX
  • The standard deviation of the sample means equals the standard deviation of the population divided by the square root of the sample size: σ(x̅) = σ(x) / √(n)

Central Limit Theorem allows using confidence intervals, hypothesis testing, DOE, regression analysis, and other analytical techniques. Many statistics have approximately normal distributions for large sample sizes, even when we are sampling from a non-normal distribution.

Control charts and the central limit theorem

The analysis in the above graph uses subgroup sizes of 2, 8, 16, and 32. We can see the impact of the subgrouping. In figure 2 (n=8), the histogram is not as wide and looks more “normally” distributed than Figure 1. Figure 3 shows the histogram for subgroup averages when n = 16. It is even more narrow, and it looks more normally distributed. Figures 1 through 4 show that as n increases, the distribution becomes narrower and more bell-shaped, just as the central limit theorem says. 

This means that we can often use well-developed statistical inference procedures and probability calculations based on a normal distribution. That holds even if we are sampling from a population that is not normal, provided we have a large sample size.

Control Chart Analysis Study Guide

The main purpose of a control chart is to improve the process. It provides a “voice of the process” that helps teams to identify special causes of variation in the process. By removing the special cause from the process, the process becomes more stable and consistent.

Out-of-control: A process is “out-of-control,” meaning special causes exist in either the average chart, range chart, or both. Teams must identify and eliminate special causes to achieve a stable process. We can say the process is out-of-control if any point in the control chart is out of control limits or has abnormal patterns of variability.  

Control limits are three standard deviations above and below the mean. If the process is in control, 99.73% of the averages will fall within these limits. The same is true for the range control limits because there are two components to every control chart: the average and the range.

Four possible conditions may occur in any process.

Control Charts Study Guide

Average stable, Variation changing (Example)

Five Common Rules for Control Chart Interpretation

Control Chart Rules

Control Charts Study Guide Videos

Other Helpful Articles

I love MoreSteam’s visual that shows the layering of multiple tools here.

Practical Notes on Using Control Charts and Control Limits to Make Process Improvements

Practical Uses and Questions on Control Charts
Practical Uses and Questions on Control Charts. Photo by runran

Here are some Practical Notes on Using Control Charts and Control Limits to Make Process Improvements. I recently got into a great discussion on LinkedIn. Before replying to a post, I wanted to clarify my thoughts. Well, 1300 words later and a lot of digging around on forums, this is what I discovered. Hope this helps bring clarity on practical uses of Control Charts – it was a fun Sunday morning exercise!

Why should you use Control Charts to Map your Process?

Charting the process will give you the tools to verify the performance: see if a process is under statistical control. It also helps you monitor the effects of improvement efforts.

Why do you want your Process to be under Statistical Control?

Once you reach an acceptable level of stability, you can feel confident that the process will perform consistently. It is meaningless to say that the process IS 4.5 sigma if its behavior IS NOT consistent over time or is unstable.

Also, once a Process is under statistical control, you can begin to apply some of the other tools to improve performance.  Trying to improve performance before a process is under control can actually make things worse. See the Quincunx demonstration for a great visual on this.

Why you would want Control Limits less than 3 Sigma?

Control charts aim to reflect process stability, or an equivalent behavior, over time. Given a normal distribution, 99.73% of your distribution would lay inside six standard deviations or sigmas. On a control chart, half would be above and half below. Thus, positive three sigmas for the UCL – Upper Control Limit and negative three sigmas for the LCL – Lower Control Limit.

The name of the game here is to use control limits to decide if something is broken in your process. You also use them to determine if it is a special event or a common event, because that dictates your next actions. (See below).

A point outside of that Six Sigma band (above the UCL or below the LCL) means that the process is out of control. The reasoning is that a process behaving as usual is very unlikely to deliver such a point. So you could reasonably suspect that the process is no longer under control.

Too Few Sigmas

If you use control limits at too few sigmas, you are reducing the percent likelihood that a point will land in the band. Thus, you will detect any small shift in the process behavior. However, you will also have too many points outside the limits just by chance when there is no special cause to address, giving you many false alarms.

Too Many Sigmas

If you use control limits at too many sigmas, you are increasing the chances of a point landing in the bands. Virtually the whole population will fall within the limits, so there will be no false alarms. But you’ll miss most shifts in the process. That leads to missed opportunities for improvement – in which case, why are you charting the process in the first place?

The Perfect Balance

The key here is cost/risk management. We are trying to find the economic trade-off between charting the process and investigating vs. the cost of missing an instance of variation. That missed variation would cause financial issues: the cost of poor quality. Practitioners found (and widely accept) that control limits at three sigmas are a good balance.

Control limits come from historical data and process variation. As your process capability improves, you must recalculate the control limits.

When Should I Recalculate My Control Limits?

The short answer is once the control charts cease to have meaningful business applications. This could be either that you have improved or altered the original practice so much that you have, in effect, a new and different process than what you started with.

What does this look like in practice? After your process has reached a point of statistical control, you should have a good data history. Then you can begin using trend analysis.

Basic trend analysis:

  • Lack of plotted points near the control limits
  • Points avoiding the outer zones and various other out-of-control conditions.

As a result of the reduced variation in your process, the new sigma is less than the original sigma. That is, the spread of the new +/- 3 sigma limits will be less than the previous limits.

Can Control Charts tell me the Sigma Level of my Process?

Control charts do NOT measure the sigma level of an overall process. They measure whether a process is in statistical control, i.e., does the process generally follow a normal distribution?

“3 sigma control limits” refers to stability-or equality of behavior over time. “Operating at n sigma” refers to performance.

Since +/- 3 sigma encapsulates 99.73% of the data in a normal distribution, if your process falls within that limit, you have a process that is in statistical control.

The sigma calculation is used to measure the performance or effectiveness of a process at the end of the project. Today, many industries aim for much stricter quality standards, again driven by business.

Performance is how well your process meets the specifications. Note that “specification” is not used in control charts because it has nothing to do with stability. A process operating at six sigma means that the process average is six sigmas away from the closest specification limit. That is twice as far out as the three-sigma control limits (UCL and LCL) on an individuals chart. Thus, virtually no output is out of specification.

Another way to look at this is that the process is what it is regardless of whether you chart it or not, what your control limits are, or what your graph looks like. Changing the control limits does not change your process performance and hence does not change the “sigmas” at which your process operates.

The control chart and sigma calculations are separate measurements, so always treat them that way.

What do you do if a Point falls outside the Control Limits? Ex Above the Upper Control Limit or Below the Lower Control Limit?

This depends on the history of your process.

If you are just getting started and there are points outside the limits, you must get your process under control first. Lower the center and spread of your process values by eliminating or reducing variation.

If a process was under statistical control and then you find a single point outside of the control limits, there is a special cause of variation. First, be sure this is a special, one-time-only variation. Then try to set controls in place to eliminate or prevent it from coming back. Using a prioritization tool like FMEA helps. Note that you may change your standardized process to account for the special cause variation. In that case, you’ll need to re-calculate your control limits, because you now have a new process in place.

If you find multiple points outside the control limits, there is probably a common cause variation. This is when you should apply six sigma methodologies like DMAIC to reduce the variation in your process.

When you’re ready, there are a few ways I can help:

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