EMgt-475:

Quality Engineering
Kenneth M. Ragsdell, PhD
Professor of Engineering Management
& Systems Engineering

QE04: Data & Statistical Concepts

 Why Statistics?
• We need to carefully examine
performance so that trends can be
observed and used for improvement.
• Let the data talk!
– Don’t let your experience and judgment
speak louder than product performance.
– LET THE DATA TALK!!!!

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 Metrics
• Mean or average
• Standard deviation
• Variance
• Coefficient of variation
• Signal to noise ratio
• Loss function
• Etc…
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 Other Metrics
• Capability index, Cp

• Capability index, Cpk

• Of limited value-not recommended, but

we need to know how to compute these,
as well.

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 Mean or Average

n
1
  y   yi
n i 1
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 Variance

n
1
 s 
2 2

n  1 i 1
(y i  y)
2

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 Standard Deviation

n
1
  s 
n  1 i 1
(y i  y) 2

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 Coefficient of Variation

 s
cv  
 y
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 Signal to Noise Ratio

1 y
= 
cv s

S / N = 10log10 ( ) 2

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 Loss Function

A0  2 L
L(y)   2 ( y  m)
 0 
A0=cost of corrective action A0

point of intolerance
m=target value
y=quality characteristic
 y
L=loss ($) m
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 Process Capability
USL  LSL
cp 
6
c pk  MIN(c pu ,c pl )
USL  
c pu 
3
  LSL
c pl 
3
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 Data Analysis/Robust Design
• Data - types, origins and uses
• Data analysis
– Graphical
– Quantitative
• Mean
• Variance
• Standard deviation
• Coefficient of variation

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 Data Types
• Data comes in all
sizes, shapes and
forms
• Numeric
– Integer
– Real
• Graphical
• Ordered categorical

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 Numeric data
• Numbers, numbers, numbers!!
– 1,2,3,10
– 1.7965432113, 1.25
• Example data set
– Mean
– Variance
– Standard deviation
– Coefficient of variation

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 Graphical Data
• Histogram
• Run chart
• Control chart
• Pie chart
• Flow diagram

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 Factor Effect Plots
Standard Deviation

9.000

8.000

7.000

6.000
A
5.000 B
4.000 C
D
3.000

2.000

1.000

0.000
1 2 3
A 4.598 5.427 5.532
B 2.963 4.594 8.000
NTB Signal to Noise Ratio
C 5.993 5.531 4.034
D 4.811 5.576 5.171

22.000

20.000

A
18.000 B
C
16.000 D

14.000

12.000
1 2 3
A 17.201 18.462 18.995
B 13.845 20.198 20.615
C 15.519 18.193 20.946
D 16.902 19.339 18.417

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 Catapult Spreadsheet

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 Crystal Ball

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 Consider the Possibilities!

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 Crystal Ball
• User-friendly
• Graphically oriented
• Forecasting and risk analysis decision-
making tool
• Monte Carlo simulation
– No special statistical or computer knowledge
• Who should use CB?
– Anyone wishing to predict outcomes in the
presence of uncertainty and risk

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 Linear Gap Analysis

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 Run the Example using CB

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 Sigma Level = 4.25

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 Change Part A to Normal

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 Uniform to Normal
• Notice the negative effects associated
with uniform distributions!
• Uniform = BAD!!!

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 20,000 Samples

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 Summary
• Why do we need • Process capability
statistics? – Example
• Metrics • Data analysis
• Statistics • Data types
– Mean
– Numeric
– Variance
– Graphical
– Standard deviation
– Coefficient of variation • Excel
– S/N ratio • Crystal Ball
– Loss function – example

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Program Completed