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There is more than one type of control chart, but in the manufacturing sector, range control, exponentially weighted moving average, and X-Bar charts are predominately used. These charts look at the upper and lower control limits and the mean, and then analyze the patterns, and if there are many variations or outliers. An example of a manufacturing company who would use these types of charts would be a pharmaceutical company. If the pharmaceutical company would want to know the range in which a certain drugs milligrams per pill are acceptable, they would set the upper and lower control limits. They would they monitor and perform tests to collect the data to plot along the chart. (Riaz, Muhammad, 2012)
Management would then look at data where the upper and lower control limits were crossed. They would then determine what number is an acceptable or unacceptable amount that will fall outside of the control chart. If it is determined that too many points fall outside and they are not random, it is said that the process of manufacturing is out of control.
Riaz, M., Muhammad, F. (2012). An application of control charts in manufacturing industry. Journal of Statistical and Econometric Methods. Vol.1
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