Operations Management

POMG2710
Chapter (10) Quality Control
 Quality Control

 Quality Control: a process that evaluates process output relative to a

standard and takes corrective action when output doesn’t meet standards.

 Approaches to quality control:

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Inspection
 Inspection: an appraisal activity that
compares goods or services to standards

INSPECTION is done before, during, or after production

The purpose: to provide information on the degree to which items conform to a standard.
Basic issues:
1. How much to inspect and how often?
2. At what points in the process to inspect?
3. Whether to inspect in a centralized or on-site location
4. Whether to inspect attributes (i.e. count the number of times something occurs) or variables (i.e.
measure the value of a characteristic).
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Inspection – Cont.
 How much to inspect?
 The amount to inspect ranges from no inspection to inspection of each time numerous time.
 Low-cost, high-volume items requires little inspection (e.g. wooden pencils)
 High-cost, low-volume items requires more intensive inspection
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Inspection – Cont.
Where to inspect?
 Manufacturing 
1. Raw materials and purchased items
2. Finished products
3. Before a costly operation
4. Before an irreversible process (e.g. pottery)
5. Before a covering process (e.g. painting)

 Service 
1. Incoming purchased materials and suppliers
2. Personnel
 3. Service interfaces (e.g. service counters)
4. Outgoing completed work (e.g. repaired appliances)
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Inspection – Cont.
 Examples of inspection points in service:
Type of Inspection Points Characteristics
Business
Fast food Cashier Accuracy
Counter area Appearance, productivity
Easting area Cleanliness, no loitering
Building and grounds Appearance, safety hazards

Kitchen Cleanliness, purity of food, food storage, health regulations.

Doctor’s Office Waiting room Appearance, comfortable
Examination room Clean, temperature control

Doctor Neat, friendly, concerned, skillful, knowledgeable

Doctor’s assistant Neat, friendly, concerned, skillful
Patient records Accurate, up-to-date
Billing Accurate
 Other Waiting time minimal, adequate time with doctor

 Inspection can be performed on-site or centralized (e.g. in labs)

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Statistical Process Control
Quality Control: Concerned with the quality of conformance of a process:
 Does the output of a process conform to its intended design specifications.

A tool used to help in this process: Statistical Process Control (SPC)

= Statistical evaluation of the process output to
decide if a process is:
 “in control”, or
 If out of control, a corrective action is required.
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Process Variability
All processes generate output that exhibits some degree of variability.

The fundamental question: Is the output variation within acceptable boundaries?

Two types of variations:

1. Random (common cause) variation: Natural variation in the

output of a process, created by countless minor factors 
unimportant factors, even if identified and eliminated, their
impact on the process will be negligible!! (e.g. older machines
generally exhibit higher variation than new machines).

2. Assignable (special cause) variation: A variation whose cause

can be identified and eliminated (non-adjusted machines,
defective materials, … etc.)
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Process Variability – Cont.
 Two basic questions to address process variations:
1. Are the variations random?
o Use  Process control
o If nonrandom, the process is unstable and will need a corrective action by
eliminating the causes of nonrandom variations.

2. Given a stable process, is the inherent variability of the process within a range that
conforms to performance criteria
o Use  Process capability
o If a process is not capable, this situation will need to be addressed.
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Control Charts: The Voice of the Process
Control Charts:
 A time ordered plot of representative sample statistics obtained from an ongoing
process (e.g. sample means), used to distinguish between random and nonrandom
variability
 Upper and lower control limits define the range of acceptable variation
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Control Charts For Variables
 Variables generate data that are measured:
1. Mean control charts: used to monitor the central tendency of a process  X-bar charts
2. Range control charts: used to monitor the process dispersion (or variability)  R charts
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X- bar Chart
UCLx x  z x

 σ is Known: LCLx  x  zx

where
 x n
 x SD of distribution of sample mean
 Estimate of process standard deviation
n  Sample size
UCLx  x  A2 R
z  Standard normal deviate
LCLx  x  A2 R x  Average of sample mean
where
A2  A factor based on sample size  σ is unknown (use range):
R  Average of sample range
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Range Chart
LCLR  4D3
A2 n
 σ is Known:
UCLR  3D4
A2 n
where
D3  a factor based on sample size
D4  a factor based on sample size
LCLR  D3 R
UCLR  D4 R
where
 σ is unknown (use range):
D3  a factor based on sample size
D4  a factor based on sample size
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 Using Mean and Range Charts
 Mean and range charts used together
complement each other:
 Mean charts: sensitive to shifts in the
process mean
 Range charts: sensitive to changes in
process dispersion

Out of control, additional cases:

1) If there is a trend
2) There is no variation around the mean (the
points either more than the mean or less than the
mean)
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Using Mean and Range Charts
 Procedure to determine initial control limits:
1. Obtain 20 to 25 samples
2. Compute appropriate sample statistics
3. Establish preliminary control limits
4. Determine if any points fall outside of the control limits
o If you find no out-of-control signals, assume the process is in control
o If you find an out-of-control signal, search for and correct the assignable cause of variation
5. Resume the process and collect another set of observations on which to base control limits
6. Plot the data on the control chart and check for out-of-control signals
o If there is a trend (increasing or decreasing)
o There is no variation around the mean (all points either above or below the mean)
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 Exercise1: Mean and Range Charts
Processing new accounts at a bank is intended to average 10 minutes each. Five samples of four
observations each have been taken. Use the sample data to construct upper and lower control
limits for both a mean chart and a range chart. Do the results suggest that the process is in control?

Sample 1 Sample 2 Sample 3 Sample 4 Sample 5

10.2 10.3 9.7 9.9 9.8
9.9 9.8 9.9 10.3 10.2
9.8 9.9 9.9 10.1 10.3
10.1 10.4 10.1 10.5 9.7
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Problem (3)

Checkout time at a supermarket is monitored using a

mean and a range chart. Six samples of n = 20
observations have been obtained and the sample 3. a. n = 20
means and ranges computed: A2 = 0.18 = = 
,X = 3.10 Mean Chart: ,X ± A ,R = 3.1 ± 0.18(0.45)
2
Sample Mean Range
D3 = 0.41  = 3.1 ± .081
,R = 0.45
1 3.06 0.42 D4 = 1.59 Hence, UCL is 3.181
2 3.15 0.50 and LCL is 3.019. All means are within these limits.

3 3.11 0.41 Range Chart: UCL is D4 ,R = 1.59(0.45) = .7155
4 3.13 0.46 
LCL is D3 ,R = 0.41(0.45) = .1845
5 3.06 0.46 In control since all points are within these limits.
6 3.09 0.45
rmine
1. Using the factors in the Table, dete
upper and lower limits for mean and
range charts.
2. Is the process in control?
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 Problem (4)

Computer upgrades have a nominal time of 80 minutes. Samples of five observations each have
been taken, and the results are listed. Determine upper and lower control limits for mean and
range charts, and decide if the process is in control.

1 79.2 78.8 80.0 78.4 81.0 5 observation means n= 5

2 80.5 78.7 81.0 80.4 80.1 No. of Samples = 6
3 79.6 79.6 80.4 80.3 80.8
4 78.9 79.4 79.7 79.4 80.6 Sample Mean Range
= 
5 80.5 79.6 80.4 80.8 78.8 1 79.48 2.6 Mean Chart: ,X ± A2 ,R = 79.96 ± 0.58(1.87)
6 79.7 80.6 80.5 80.0 81.1 2 80.14 2.3 = 79.96 ± 1.08
3 80.14 1.2 UCL = 81.04, LCL = 78.88

4 79.60 1.7 Range Chart: UCL = D4 ,R = 2.11(1.87) = 3.95

,R = 0(1.87) = 0
5 80.02 2.0 LCL = D3
6 80.38 1.4 [Both charts suggest the process is in control: Neither has any
points outside the limits.]
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