The Control Chart is used in Statistical Precess Control (SPC) to monitor a production process.
The control chart can help
To prevent that a process is going out of control.
To determine the range of a process.
Monitor change in process over time (wear out of production equipment).
Snapshot of a production period.
A point falls outside the UCL or LCL (3 sigma lines).
Two out of three successive points are outside the 2 sigma line (second gray line under or above the mean).
Four out of five successive points are outside the 1 sigma line (first gray line under or above the mean).
Eight successive points are on one side of the mean line.
When one of these rules happens it will be visible as a red dot in the plot. If needed corrective actions must be taken to restore the process. Keep in mind a point outside the ULC and LCL will can occur in about 1 in the 371 data-points.