Chapter 4 Supplement

Acceptance Sampling
Operations Management - 5th Edition
Roberta Russell & Bernard W. Taylor, III

Copyright 2006 John Wiley & Sons, Inc.

Beni Asllani University of Tennessee at Chattanooga

Lecture Outline
Single-Sample Attribute Plan Operating Characteristic Curve Developing a Sampling Plan with Excel Average Outgoing Quality Double - and Multiple-Sampling Plans

Copyright 2006 John Wiley & Sons, Inc.

Supplement 4-2

Acceptance Sampling
Accepting or rejecting a production lot based on the number of defects in a sample Not consistent with TQM or Zero Defects philosophy

producer and customer agree on the number of acceptable defects a means of identifying not preventing poor quality percent of defective parts versus PPM

Copyright 2006 John Wiley & Sons, Inc.

Supplement 4-3

SingleSample Attribute Plan

Single sampling plan
N = lot size n = sample size (random) c = acceptance number d = number of defective items in sample

If d c, accept lot; else reject

Copyright 2006 John Wiley & Sons, Inc.

Supplement 4-4

Producers and Consumers Risk

AQL or acceptable quality level

proportion defect the customer will accept a given lot limit on the number of defectives the customer will accept

LTPD or lot tolerance percent defective

or producers risk

probability of rejecting a good lot

probability of accepting a bad lot
Supplement 4-5

or consumers risk

Copyright 2006 John Wiley & Sons, Inc.

Producers and Consumers Risk (cont.)

Accept Good Lot Reject

No Error

Type I Error Producer Risk

Bad Lot

Type II Error Consumers Risk

No Error

Sampling Errors

Copyright 2006 John Wiley & Sons, Inc.

Supplement 4-6

Operating Characteristic (OC) Curve

shows probability of accepting lots of different quality levels for a specific sampling plan assists management to discriminate between good and bad lots exact shape and location of the curve is defined by the sample size (n) and acceptance level (c) for the sampling plan
Copyright 2006 John Wiley & Sons, Inc. Supplement 4-7

OC Curve (cont.)
1.00
= 0.05 0.80 Probability of acceptance, Pa

0.60

OC curve for n and c

0.40

0.20

= 0.10

| | | | | | | | | | 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 0.20

AQL Copyright 2006 John Wiley & Sons, Inc.

Proportion defective

LTPD Supplement 4-8

Developing a Sampling Plan with Excel

ABC Company produces mugs in lots of 10,000. Performance measures for quality of mugs sent to stores call for a producers risk of 0.05 with an AQL of 1% defective and a consumers risk of 0.10 with a LTPD of 5% defective. What size sample and what acceptance number should ABC use to achieve performance measures called for in the sampling plan?

N = 10,000 = 0.05 = 0.10 AQL = 1% LTPD = 5%

n=? c=?

Copyright 2006 John Wiley & Sons, Inc.

Supplement 4-9

Sampling Plan and OC Curve

Input Use Poisson distribution function to calculate PAs Use chart wizard to graph OC

Use Solver to find values for n and c

Copyright 2006 John Wiley & Sons, Inc.

Supplement 4-10

Average Outgoing Quality (AOQ)

Expected number of defective items that will pass on to customer with a sampling plan Average outgoing quality limit (AOQL)

maximum point on the curve worst level of outgoing quality

Supplement 4-11

Copyright 2006 John Wiley & Sons, Inc.

AOQ Curve

AOQL 1.39%

Copyright 2006 John Wiley & Sons, Inc.

Supplement 4-12

Double Sampling Plans

Take small initial sample
If # defective < lower limit, accept If # defective > upper limit, reject If # defective between limits, take second sample

Accept or reject based on 2 samples Less costly than single-sampling plans

Copyright 2006 John Wiley & Sons, Inc.

Supplement 4-13

Multiple Sampling Plans

Uses smaller sample sizes Take initial sample
If # defective < lower limit, accept If # defective > upper limit, reject If # defective between limits, resample

Continue sampling until accept or reject lot based on all sample data
Copyright 2006 John Wiley & Sons, Inc. Supplement 4-14

Copyright 2006 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein. Copyright 2006 John Wiley & Sons, Inc. Supplement 4-15