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K J Somaiya Institute of Management, India 1

Phases of Quality Assurance
• There are 3 aspects of assuring quality:
1. Assurance of incoming Raw materials Quality
2. Assurance of processes operating on the RM
3. Assurance of quality of the outgoing finished goods

Inspection
SAMPLING

How Much/How Often/Where/When ?

Inputs Transformation Outputs

Acceptance Process Acceptance

sampling control sampling
SPC
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Phases of Quality Assurance
Inspection and
Inspection corrective Quality built
before/after action during into the
production production process
Acceptance Process Continuous
sampling control improvement

K J Somaiya Institute of Management, India

 The process of performing a check of raw materials, components and
parts supplied by the vendors is called the incoming inspection.
 Similarly, before dispatching a lot of finished goods to the customers, an
outgoing inspection is done.

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Acceptance Sampling
 Definition: Acceptance sampling refers to the SQC process of
randomly inspecting a certain number of items from a lot or batch
in order to decide whether to accept or reject the entire batch

 Different from SPC because acceptance sampling is performed

either before or after the process rather than during
 Sampling before typically is done to supplier’s material
 Sampling after involves sampling finished items before
shipment or finished components prior to assembly

 Used where 
inspection is expensive,
volume is high
or inspection is destructive

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Setting up a system for acceptance Sampling requires that the following
questions be answered.

1) What should be the size of the sample.

2) What must be the criteria for accepting the lot.
3) Is it enough to have just one sample or go for more samples.

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Decision to accept or reject entire lot depends on sample drawn

 Goal of Acceptance Sampling plans is to determine the criteria for

acceptance or rejection based on:
 Size of the lot (N)-population size
 Size of the sample (n)

 Number of defects above which a lot will be rejected (c)

(acceptance no.)

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Acceptance Sampling
Operating Characteristics

 Acceptable Quality Level (AQL): the percent defect that the buyer is
willing to tolerate in the lot delivered by the supplier
 Lot Tolerance Percent Defective (LTPD): the worst quality beyond which
the manufacturer is not willing to accept the incoming lot
 Producer’s risk: the risk supplier faces in getting his/her lot rejected when
indeed it was conforming to the agreed terms
 Consumer’s risk: the risk that a manufacturer faces of accepting a lot with
poor quality beyond his/her tolerance level
 Operating Characteristics (OC) Curve: A graphical representation of a
sampling plan that reveals the above aspects of a sampling plan

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Operating Characteristics Curve
Example 6.5

1.000
Producer’s
Risk 0.900
OC Curve for n=500, c=2
0.800
Probability of acceptance

0.700

0.600

0.500

0.400

0.300

0.200

Consumer’s 0.100
Risk
0.000
0.00
0.01

0.03
0.04
0.05
0.06

0.08
0.09

0.12
0.14
0.16
0.18
0.02

0.07

0.10

0.20
Percent defective

AQL LTPD
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 Operating Characteristics (OC) Curves

 OC curves are graphs which show

the probability of accepting a lot
given various proportions of
defects in the lot
 X-axis shows % of items that are
defective in a lot- “lot quality”
 Y-axis shows the probability or
chance of accepting a lot
 As proportion of defects
increases, the chance of accepting
lot decreases
 Example: 90% chance of
accepting a lot with 5%
defectives; 10% chance of
accepting a lot with 24%
defectives
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AQL, LTPD, Consumer’s Risk (β) &
Producer’s Risk (α)
Lot Tolerance Percent Defective is the worst quality beyond which buyer is not
willing to accept the incoming lots
P
 AQL is the small % of defects that r
consumers are willing to accept; o
b
order of 1-2% a
b
 LTPD is the upper limit of the i
l
percentage of defective items i
t
consumers are willing to tolerate y
 Consumer’s Risk (β) is the chance o
f
of accepting a lot that contains a
greater number of defects than the a
LTPD limit; Type II error c
c
 Producer’s risk (α) is the chance a
lot containing an acceptable quality
level will be rejected; Type I error.

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Thank You
simsr.somaiya.edu

K J Somaiya Institute of Management, India 12