Outline

Managerial Issues
Sampling (technique for data collection)
Use appropriate Control Charts
Control Charts for Variables
Setting Mean Chart Limits ( x-Charts)
Setting Range Chart Limits (R-Charts)
Control Charts for Attributes
P-Charts: For single attributes
C-Charts: For multiple attributes
Decide UCL and LCL for each control chart
Process Capability and Acceptance Sampling
Show changes in data pattern
e.g., trends
Make corrections before process is out of
control
Find causes of changes in data
Assignable causes
Data outside control limits or trend in data
Natural causes
Random variations around average
Purposes of Control Chart
Natural (Normal) Variations
Comprised of a myriad of small sources that
are always present in a process and affect all
elements of the process.
Vibration
Humidity
Temperature
Lighting
Other uncontrollable factors
Usually is difficult or costly to control
Assignable (Abnormal)
Variations
Caused by the controllable quality problems
in a product or process.
Poor product design
Machines out of order
Tools wear out
Poor incoming materials
Low skills and qualification of workers
Workers fatigue
Unpleasant working conditions
Poor training
Produce Good
Provide Service
Stop Process
Yes
No
Assign.
Variation?
Take Sample
Inspect Sample
Find Out Why
Create
Control Chart
Start
Statistical Process Control
Steps
Characteristics for
which you focus on
defects
Classify products as
either good or
bad, or count #
defects
Categorical or
discrete random
variables
Attributes Variables
Two Types of Quality
Characteristics


Characteristics that
can be measured
continuously, e.g.,
weight, length
May be in whole or in
fractional numbers
Continuous random
variables
Control
Charts
R
Chart
Variables
Charts
Attributes
Charts
X
Chart
P
Chart
C
Chart
Continuous Numerical
Data
Categorical or Discrete
Numerical Data
Control Chart Types
Sampling Techniques in
Quality Control
Why sampling
Too costly to inspect all outcomes from a process
Sample size: SPC usually uses average of a
small number of items as a sample
Individual pieces tend to be too erratic to make
trends quickly visible
Serve as the input of all control charts
Both sampling rule and sample sizes affect
the cost and accuracy of quality control
Monitoring the Weights of Oat
Flakes (Example S1, p226)
Purpose of sampling and the sampling rule
The weights of boxes of Oat Flakes within a large
production lot are sampled each hour
Sample Frequency
Sampling every hour
Sample size
In each sampling, 9 boxes are randomly selected
and weighted
Confidence and number of standard deviation
o = 2 for 95.5% confidence; o = 3 for 99.73%
confidence
X
Mean
o
o
x
x
n
=
Standard
deviation (STD)
X =
Central Limit Theorem
n
x
i
n
i
x
1 =

=
Normalization of Sample
Distributions
Uniform
Normal
Beta
(mean)
x
2 within fall x all of 95.5% o
x
3 within fall x all of 99.7% o

x
3
x
2
x
x
x
1
x
2
x
3 o + o + o 1 + o o o
Three population distributions
Relationship of Confidence
and Number of STD (o)
Properties of normal distribution
x
2 within
fall x l al of 95.5%
o
x
3 within
fall x l al of 99.7%
o
x
= x
Type of variables control chart
Interval or ratio scaled numerical data
Shows sample means over time
Monitors process average
Example: Weigh samples of coffee &
compute means of samples; Plot
X Chart
X Chart and Control Limits
(Formula 1)
If the process mean and standard deviation are known:



where: _
X = average mean of samples
Z = number of standard deviations
o
x
= standard deviation of sample means


o
x
= process standard deviation,
n = number of observations in a sample

X X
X X
Z X LCL
Z X UCL
o
o
=
+ =
n
X
X
o
o =
Sample
Range at
Time i
# Samples
Sample
Mean at
Time i
From
Table S6.1
R A x
x
LCL
R A x
x
UCL
2
=
2
+ =
n
R
R
i
n
1 i=

=
n
x
i
n
i
x
1 =

=
X Chart and Control Limits
(Formula 2)
Factors for Computing Control
Chart Limits (3 sigma, p.227)
Sample
Size, n
Mean
Factor, A
2
Upper
Range, D
4
Lower
Range, D
3
2 1.880 3.268 0
3 1.023 2.574 0
4 0.729 2.282 0
5 0.577 2.115 0
6 0.483 2.004 0
7 0.419 1.924 0.076
8 0.373 1.864 0.136
9 0.337 1.816 0.184
10 0.308 1.777 0.223
0.184
Super Cola (Example S2, p228)
Super Cola bottles soft drinks labeled
net weight 16 ounces. An overall
16.01 ounces has been found by taking
several batches of samples, in which
each sample contained 5 bottles. The
average range of the process is 0.25
ounce. Determine the upper and lower
control limits for averages in this
process.
Sample Range at
Time i
# Samples
From Table S6.1
R Chart
Control Limits
n
R
R
R D LCL
R D UCL
i
n
1 i
3 R
4 R
=

=
=
=
Loading Trucks (Example S3,
p228)
The average range of a process for
loading trucks is 5.3 pounds. If the
sample size is 5, determine the upper
and lower control limits for the R-Chart.
X-bar and R Charts
Complement Each Other
Three Types of Output for
Variable
Frequency
Lower control limit
Size
Weight, length, speed, etc.
Upper control limit
(b) In statistical control, but not
capable of producing within control
limits. A process in control (only
natural causes of variation are
present) but not capable of
producing within the specified
control limits; and
(c) Out of control. A process out of
control having assignable causes of
variation.
(a) In statistical control and
capable of producing within
control limits. A process with
only natural causes of
variation and capable of
producing within the specified
control limits.
Control chart for attributes with scaled
categorical data (e.g., good-bad)
Normally measure the percent of defective in
a sample
Assume the outcome of each sample follows
binomial distribution
Example:
Count number defective chairs & divide by total
chairs inspected in each sample
plot the result along the time line
Chair is either defective or not defective
p Chart
Control limit of p Charts
# Defective Items
in Sample i
Size of sample i
z = 2 for 95.5% limits;
z = 3 for 99.7% limits
i
k
1 i
i
k
1 i
n
x
p
) 1 (
) 1 (
=
=

+ =
n
p p
z p LCL
n
p p
z p UCL
p
p
ARCO (Example S4, p231)
Data-entry clerks at ARCO key in thousands
of insurance records each day. Samples of
the work of 20 clerks are shown in the table.
One hundred records by each clerk were
carefully examined and the number of errors
counted. The fraction in each sample was
then computed as p-bar.
Set the control limits to include 99.73% of
the random variation in the entry process
when it is in control.
Attributes control chart for discrete data
Shows the number of nonconformities
(defects) in a unit (unit may be chair, steel
sheet, car etc).
UCL and LCL are not sensitive to the sample size
Assume the defect number is Poison distribution
Example:
Derive the average number of defects
(scratches, chips etc.) in each chair of a
sample of 100 chairs
Plot the average number along the timeline
c - Chart
Control Limits of c-Charts
# Defects in
Unit i
# Units Sampled
Use 3 for 99.7%
limits
k
c
c
i
k
1 i=

=
=
+ =
c c LCL
c c UCL
c
c
3
3
Red Top Cap (Example S5,
p233)
Red Top Cab Company receives several
complaints per day about the behavior
of its drivers. Over a 9-day period
(where days are the units of measure),
the owner received the following
number of calls from rate passengers:
{3, 0, 8, 9, 6, 7, 4, 9, 8} for a total of
54 complaints. Compute the UCL and
LCL limits at 99.7% confidence.
Managerial Issues and Control
Charts
Three major decisions regarding control chart
Select the points in the process that need
SPC
Which process point is critical
Which point tends to be out of control
Select appropriate chart and UCL/LCL
Set clear and specific SPC policies for workers
to follow
Process Capability C
pk

population process the of deviation standard
mean process x where
3
Limit ion Specificat Lower x

or ,
3
x Limit ion Specificat Upper
of minimum
=
=
(

=
o
o
o
pk
C
Measure difference between actual and desire output quality
Application of Process Capacity:
Technology selection
Performance evaluation
Meanings of C
pk
Measures
C
pk
= negative number
C
pk
= zero
C
pk
= between 0 and 1
C
pk
= 1
C
pk
> 1
Form of quality testing used for incoming
materials or finished goods
e.g., purchased material & components
Procedure
Take one or more samples at random from a lot
(shipment) of items
Inspect each of the items in the sample
Decide whether to reject the whole lot based on
the inspection results
What Is Acceptance
Sampling?
Shows how well a sampling plan
discriminates between good & bad lots
(shipments)
Shows the relationship between the
probability of accepting a lot & its
quality
Operating Characteristics
Curve
% Defective in Lot
P(Accept Whole Shipment)
100%
0%
Cut-Off
1 2 3 4 5 6 7 8 9 10 0
Return whole
shipment
Keep whole
shipment
OC Curve
100% Inspection
OC Curve with Less than
100% Sampling
P(Accept Whole Shipment)
100%
0%
% Defective in Lot
Cut-Off
1 2 3 4 5 6 7 8 9 10 0
Return whole
shipment
Keep whole
shipment
Probability is not 100%: Risk
of keeping bad shipment or
returning good one.
Supplier/Producer's risk (o)
Probability of rejecting a good lot (type I error)
Probability that a lot get rejected when fraction
defective is AQL
Buyer/Consumer's risk ()
Probability of accepting a bad lot (type II error)
Probability of accepting a lot when fraction
defective is LTPD
Producers & Consumers Risk
Acceptable quality level (AQL)
Quality level of a good lot from producers
standard
Producer (supplier) does not want lots with fewer
defects than AQL rejected
Lot tolerance percent defective (LTPD)
Quality level of a bad lot from buyers standard
Consumer (buyer) does not want lots with more
defects than LTPD accepted
AQL & LTPD
An Operating Characteristic
(OC) Curve Showing Risks
|= 0.10
Consumers
risk for LTPD
Probability of
Acceptance
Percent
Defective
0 1 2 3 4 5 6 7 8
100
95

75


50


25

10

0

o = 0.05 producers risk for AQL
Bad lots Indifference zone
Good
lots
LTPD AQL
Set of procedures for inspecting
incoming materials or finished goods
Identifies
Type of sample
Sample size (n)
Criteria (c) used to reject or accept a lot
Producer (supplier) & consumer (buyer)
must negotiate
What Is an Acceptance Plan?
Assignment #3
Solve and Answer the following
problems in the textbook (p245 to
p249)
S6.6, S6.8 (x-Chart and R-Chart)
S.6.15, S6.16, S6.17, S6.18 (P-Chart)
S6.21, S6.23, S6.24 (C-Chart)
S6.29, S6.30, S6.31 (process capability)