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Nelson Rules
- Rule 1: One point outside the 3σ control limits
- Rule 2: 9+ points same side of mean
- Rule 3: 6+ points trending
- Rule 4: 14+ points alternating
- Rule 5: 2/3 points outside 2σ
- Rule 6: 4/5 points outside 1σ
- Rule 7: 15+ points within 1σ
- Rule 8: 8+ points outside 1σ on both sides
Variance Rules
- Extreme Variance: Any variance > 3σ from mean variance
- Consistent Direction: 6+ consecutive variances in same direction
- Escalating Variance: 4/5 consecutive variances increasing
- Alternating Pattern: 8+ consecutive variances alternating
- Zone Rule: 2/3 consecutive variances between 2σ and 3σ
- Threshold Breach: Variance > 10% of target value
- Cumulative Variance: YTD variance > 1.5x average monthly variance