Learning Objectives

When you complete this supplement,

you should be able to:
Identify or Define:
 Natural and assignable causes of
variation
 Central limit theorem
 Attribute and variable inspection
 Process control
 x-charts and R-charts

© 2006 Prentice Hall, Inc. S6 – 4

 Learning Objectives
When you complete this supplement,
you should be able to:
Identify or Define:
 LCL and UCL
 P-charts (% defective) and c-charts (# of
defects)
 Cp and Cpk Process capability ratio and index
 Acceptance sampling
 OC curve (Operating Characteristic)

© 2006 Prentice Hall, Inc. S6 – 5

 Learning Objectives
When you complete this supplement,
you should be able to:
Identify or Define:
 AQL (Acceptable quality level) and LTPD
(Lot Tolerance Percent Defective)
 AOQ (Average Outgoing Quality)
 Producer’s and consumer’s risk

© 2006 Prentice Hall, Inc. S6 – 6

 Learning Objectives
When you complete this supplement,
you should be able to:
Describe or Explain:

 The role of statistical quality control

© 2006 Prentice Hall, Inc. S6 – 7

 Statistical Process Control
(SPC)
 Variability is inherent in every process
 Natural or common causes
 Special or assignable causes
 Provides a statistical signal when
assignable causes are present
 Detect and eliminate assignable
causes of variation
© 2006 Prentice Hall, Inc. S6 – 8
 Natural Variations
 Also called common causes
 Affect virtually all production processes
 Expected amount of variation
 Output measures follow a probability
distribution
 For any distribution there is a measure
of central tendency and dispersion
 If the distribution of outputs falls within
acceptable limits, the process is said to
be “in control”
© 2006 Prentice Hall, Inc. S6 – 9
 Assignable Variations
 Also called special causes of variation
 Generally this is some change in the process
 Variations that can be traced to a specific
reason
 The objective is to discover when
assignable causes are present
 Eliminate the bad causes
 Incorporate the good causes

© 2006 Prentice Hall, Inc. S6 – 10

 Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
Each of these
represents one
(a) Samples of the sample of five
product, say five boxes of cereal
boxes of cereal
taken off the filling
Frequency
# #

machine line, vary # # #

from each other in # # # #
weight # # # # # # #

# # # # # # # # # #

Figure S6.1 Weight

© 2006 Prentice Hall, Inc. S6 – 11
 Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
The solid line
represents the
(b) After enough distribution
samples are
taken from a
stable process,
they form a Frequency
pattern called a
distribution

Figure S6.1 Weight

© 2006 Prentice Hall, Inc. S6 – 12
 Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
(c) There are many types of distributions, including
the normal (bell-shaped) distribution, but
distributions do differ in terms of central
tendency (mean), standard deviation or
variance, and shape Figure S6.1
Frequency

Central tendency Variation Shape

Weight Weight Weight

© 2006 Prentice Hall, Inc. S6 – 13
 Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
(d) If only natural
causes of
variation are Frequency
present, the Prediction
output of a
process forms a
distribution that Tim
e
is stable over Weight
time and is Figure S6.1
predictable
© 2006 Prentice Hall, Inc. S6 – 14
 Samples
To measure the process, we take samples
and analyze the sample statistics following
these steps
?
?? ??
(e) If assignable ?
? ?
?
causes are ?
?
? ?
?
??
?
present, the Frequency
? ?

process output is Prediction

not stable over
time and is not
predicable Tim
e
Weight
Figure S6.1

© 2006 Prentice Hall, Inc. S6 – 15

 Control Charts
Constructed from historical data, the
purpose of control charts is to help
distinguish between natural variations
and variations due to assignable
causes

© 2006 Prentice Hall, Inc. S6 – 16

 Types of Data
Variables Attributes
 Characteristics that  Defect-related
can take any real characteristics
value  Classify products
 May be in whole or as either good or
in fractional bad or count
numbers defects
 Continuous random  Categorical or
variables discrete random
variables
© 2006 Prentice Hall, Inc. S6 – 17
 Central Limit Theorem
Regardless of the distribution of the
population, the distribution of sample means
drawn from the population will tend to follow
a normal curve
1. The mean of the sampling
distribution (x) will be the same x=
as the population mean 
2. The standard deviation of the
sampling distribution (x) will 
equal the population standard x =
n
deviation () divided by the
square root of the sample size, n
© 2006 Prentice Hall, Inc. S6 – 18
 Process Control
(a) In statistical
control and capable
of producing within
Frequency control limits

Lower control limit Upper control limit

(b) In statistical
control but not
capable of producing
within control limits

(c) Out of control

Size
(weight, length, speed, etc.) Figure S6.2

© 2006 Prentice Hall, Inc. S6 – 19

 Population and Sampling
Distributions
Three population Distribution of
distributions sample means
Mean of sample means = x
Beta
Standard
deviation of 
the sample = x =
Normal n
means

Uniform

| | | | | | |

-3x -2x -1x x +1x +2x +3x

95.45% fall within ± 2x
99.73% of all x
fall within ± 3x Figure S6.3

© 2006 Prentice Hall, Inc. S6 – 20

 Sampling Distribution
Sampling
distribution
of means

Process
distribution
of means

x=
(mean)
Figure S6.4

© 2006 Prentice Hall, Inc. S6 – 21

 Steps In Creating Control
Charts
1. Take samples from the population and
compute the appropriate sample statistic
2. Use the sample statistic to calculate control
limits and draw the control chart
3. Plot sample results on the control chart and
determine the state of the process (in or out of
control)
4. Investigate possible assignable causes and
take any indicated actions
5. Continue sampling from the process and reset
the control limits when necessary
© 2006 Prentice Hall, Inc. S6 – 22
 Control Charts for Variables

 For variables that have continuous

dimensions
 Weight, speed, length, strength, etc.
 x-charts are to control the central
tendency of the process
 R-charts are to control the dispersion of
the process
 These two charts must be used together

© 2006 Prentice Hall, Inc. S6 – 23

 Setting Chart Limits
For x-Charts when we know 
Upper control limit (UCL) = x + zx
Lower control limit (LCL) = x - zx
where x =mean of the sample means or
a target value set for the process
z =number of normal standard
deviations
x =standard deviation of the
sample means
= / n
© 2006 Prentice Hall, Inc.
 =population standard S6 – 24
© 2006 Prentice Hall, Inc. S6 – 25
 Setting Control Limits
Hour 1 Hour Mean Hour Mean
Sample Weight of 1 16.1 7 15.2
Number Oat Flakes 2 16.8 8 16.4
1 17 3 15.5 9 16.3
2 13 4 16.5 10 14.8
3 16 5 16.5 11 14.2
4 18 6 16.4 12 17.3
n=9 5 17
6 16 For 99.73% control limits, z = 3
7 15
8 17 UCLx = x + zx = 16 + 3(1/3) = 17 ozs
9 16
Mean 16.1 LCLx = x - zx = 16 - 3(1/3) = 15 ozs
 = 1
© 2006 Prentice Hall, Inc. S6 – 26
 Setting Control Limits
Control Chart
for sample of Variation due
Out of to assignable
9 boxes control causes

17 = UCL

Variation due to
16 = Mean natural causes

15 = LCL

Variation due
| | | | | | | | | | | |
to assignable
1 2 3 4 5 6 7 8 9 10 11 12 Out of causes
Sample number control

© 2006 Prentice Hall, Inc. S6 – 27

 Setting Chart Limits
For x-Charts when we don’t know 

Upper control limit (UCL) = x + A2R

Lower control limit (LCL) = x - A2R

where R =average range of the samples

A2 =control chart factor found in
Table S6.1
x =mean of the sample means

© 2006 Prentice Hall, Inc. S6 – 28

 Control Chart Factors
Sample Size Mean Factor Upper Range Lower
Range
n A2 D4 D3
2 1.880 3.268 0
3 1.023 2.574 0
4 .729 2.282 0
5 .577 2.115 0
6 .483 2.004 0
7 .419 1.924 0.076
8 .373 1.864 0.136
9 .337 1.816 0.184
10 .308 1.777 0.223
12 .266 1.716 0.284
Table S6.1
© 2006 Prentice Hall, Inc. S6 – 29
© 2006 Prentice Hall, Inc. S6 – 30
 Setting Control Limits
Process average x = 16.01 ounces
Average range R = .25
Sample size n = 5

© 2006 Prentice Hall, Inc. S6 – 31

 Setting Control Limits
Process average x = 16.01 ounces
Average range R = .25
Sample size n = 5

UCLx = x + A2R
= 16.01 + (.577)(.25)
= 16.01 + .144
= 16.154 ounces
From
Table S6.1

© 2006 Prentice Hall, Inc. S6 – 32

 Setting Control Limits
Process average x = 16.01 ounces
Average range R = .25
Sample size n = 5

UCLx = x + A2R UCL = 16.154

= 16.01 + (.577)(.25)
= 16.01 + .144 Mean = 16.01
= 16.154 ounces

LCLx = x - A2R LCL = 15.866

= 16.01 - .144
= 15.866 ounces
© 2006 Prentice Hall, Inc. S6 – 33
 R – Chart

 Type of variables control chart

 Shows sample ranges over time
 Difference between smallest and
largest values in sample
 Monitors process variability
 Independent from process mean

© 2006 Prentice Hall, Inc. S6 – 34

 Setting Chart Limits
For R-Charts

Upper control limit (UCLR) = D4R

Lower control limit (LCLR) = D3R

where
R =average range of the samples
D3 and D4=control chart factors from
Table S6.1

© 2006 Prentice Hall, Inc. S6 – 35

 Control Chart Factors
Sample Size Mean Factor Upper Range Lower
Range
n A2 D4 D3
2 1.880 3.268 0
3 1.023 2.574 0
4 .729 2.282 0
5 .577 2.115 0
6 .483 2.004 0
7 .419 1.924 0.076
8 .373 1.864 0.136
9 .337 1.816 0.184
10 .308 1.777 0.223
12 .266 1.716 0.284
Table S6.1
© 2006 Prentice Hall, Inc. S6 – 36
© 2006 Prentice Hall, Inc. S6 – 37
 Setting Control Limits
Average range R = 5.3 pounds
Sample size n = 5
From Table S6.1 D4 = 2.115, D3 = 0

UCLR = D4R UCL = 11.2

= (2.115)(5.3)
= 11.2 pounds Mean = 5.3

LCLR = D3R LCL = 0

= (0)(5.3)
= 0 pounds
© 2006 Prentice Hall, Inc. S6 – 38
 Mean and Range Charts
(a)
These (Sampling mean is
sampling shifting upward but
distributions range is consistent)
result in the
charts below

UCL
(x-chart detects
x-chart shift in central
tendency)
LCL
UCL
(R-chart does not
R-chart detect change in
mean)
LCL
Figure S6.5
© 2006 Prentice Hall, Inc. S6 – 39
 Mean and Range Charts
(b)
These
(Sampling mean
sampling
is constant but
distributions
dispersion is
result in the
increasing)
charts below

UCL
(x-chart does not
x-chart detect the increase
in dispersion)
LCL
UCL
(R-chart detects
R-chart increase in
dispersion)
LCL
Figure S6.5
© 2006 Prentice Hall, Inc. S6 – 40
 Automated Control Charts

© 2006 Prentice Hall, Inc. S6 – 41

 Control Charts for Attributes
 For variables that are categorical
 Good/bad, yes/no,
acceptable/unacceptable
 Measurement is typically counting
defectives
 Charts may measure
 Percent defective (p-chart)
 Number of defects (c-chart)
© 2006 Prentice Hall, Inc. S6 – 42
 Control Limits for p-Charts
Population will be a binomial distribution,
but applying the Central Limit Theorem
allows us to assume a normal distribution
for the sample statistics

UCLp = p + zp^ p(1 - p)

p =
^
n
LCLp = p - zp^
p =mean fraction defective in the sample
z =number of standard deviations
p =standard
^ deviation of the sampling distribution
n =sample size
© 2006 Prentice Hall, Inc. S6 – 43
© 2006 Prentice Hall, Inc. S6 – 44
 p-Chart for Data Entry
Sample Number Fraction Sample Number Fraction
Number of Errors Defective Number of Errors Defective
1 6 .06 11 6 .06
2 5 .05 12 1 .01
3 0 .00 13 8 .08
4 1 .01 14 7 .07
5 4 .04 15 5 .05
6 2 .02 16 4 .04
7 5 .05 17 11 .11
8 3 .03 18 3 .03
9 3 .03 19 0 .00
10 2 .02 20 4 .04
Total = 80
80 (.04)(1 - .04)
p= = .04 p^ = = .02
(100)(20) 100
© 2006 Prentice Hall, Inc. S6 – 45
 p-Chart for Data Entry
UCLp = p + zp^ = .04 + 3(.02) = .10
LCLp = p - zp^ = .04 - 3(.02) = 0
.11 –
.10 – UCLp = 0.10
.09 –
Fraction defective

.08 –
.07 –
.06 –
.05 –
.04 – p = 0.04
.03 –
.02 –
.01 – LCLp = 0.00
.00 – | | | | | | | | | |
2 4 6 8 10 12 14 16 18 20
Sample number
© 2006 Prentice Hall, Inc. S6 – 46
 p-Chart for Data Entry
UCLp = p + zp^ = .04 + 3(.02) = .10
Possible
LCLp = p - zp^ = .04 - 3(.02) =assignable
0
causes present
.11 –
.10 – UCLp = 0.10
.09 –
Fraction defective

.08 –
.07 –
.06 –
.05 –
.04 – p = 0.04
.03 –
.02 –
.01 – LCLp = 0.00
.00 – | | | | | | | | | |
2 4 6 8 10 12 14 16 18 20
Sample number
© 2006 Prentice Hall, Inc. S6 – 47
 Control Limits for c-Charts
Population will be a Poisson distribution,
but applying the Central Limit Theorem
allows us to assume a normal distribution
for the sample statistics

UCLc = c + 3 c LCLc = c - 3 c

c =mean number defective in the sample

© 2006 Prentice Hall, Inc. S6 – 48

© 2006 Prentice Hall, Inc. S6 – 49
 c-Chart for Cab Company
c = 54 complaints/9 days = 6 complaints/day

UCLc = c + 3 c 14
UCLc = 13.35
14 –

Number defective
=6+3 6 12 –
= 13.35 10 –
8 –
6 – c= 6
LCLc = c - 3 c 4 –
=3-3 6 2 – LCLc = 0
0 – | | | | | | | | |
=0 1 2 3 4 5 6 7 8 9
Day

© 2006 Prentice Hall, Inc. S6 – 50

 Patterns in Control Charts

Upper control limit

Target

Lower control limit

Normal behavior.
Process is “in control.”
Figure S6.7

© 2006 Prentice Hall, Inc. S6 – 51

 Patterns in Control Charts

Upper control limit

Target

Lower control limit

One plot out above (or
below). Investigate for
Figure S6.7 cause. Process is “out
of control.”
© 2006 Prentice Hall, Inc. S6 – 52
 Patterns in Control Charts

Upper control limit

Target

Lower control limit

Trends in either
direction, 5 plots.
Figure S6.7 Investigate for cause of
progressive change.
© 2006 Prentice Hall, Inc. S6 – 53
 Patterns in Control Charts

Upper control limit

Target

Lower control limit

Two plots very near
lower (or upper)
Figure S6.7 control. Investigate for
cause.
© 2006 Prentice Hall, Inc. S6 – 54
 Patterns in Control Charts

Upper control limit

Target

Lower control limit

Run of 5 above (or
below) central line.
Figure S6.7 Investigate for cause.

© 2006 Prentice Hall, Inc. S6 – 55

 Patterns in Control Charts

Upper control limit

Target

Lower control limit

Erratic behavior.
Investigate.
Figure S6.7

© 2006 Prentice Hall, Inc. S6 – 56

 Which Control Chart to Use
Variables Data
 Using an x-chart and R-chart:
 Observations are variables
 Collect 20 - 25 samples of n = 4, or n =
5, or more, each from a stable process
and compute the mean for the x-chart
and range for the R-chart
 Track samples of n observations each

© 2006 Prentice Hall, Inc. S6 – 57

 Which Control Chart to Use
Attribute Data
 Using the p-chart:
 Observations are attributes that can
be categorized in two states
 We deal with fraction, proportion, or
percent defectives
 Have several samples, each with
many observations

© 2006 Prentice Hall, Inc. S6 – 58

 Which Control Chart to Use
Attribute Data
 Using a c-Chart:
 Observations are attributes whose
defects per unit of output can be
counted
 The number counted is often a small
part of the possible occurrences
 Defects such as number of blemishes
on a desk, number of typos in a page
of text, flaws in a bolt of cloth

© 2006 Prentice Hall, Inc. S6 – 59

 Acceptance Sampling
 Form of quality testing used for
incoming materials or finished goods
 Take 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
 Only screens lots; does not drive
quality improvement efforts
© 2006 Prentice Hall, Inc. S6 – 73
 Operating Characteristic
Curve

 Shows how well a sampling plan

discriminates between good and
bad lots (shipments)
 Shows the relationship between
the probability of accepting a lot
and its quality level

© 2006 Prentice Hall, Inc. S6 – 74

 The “Perfect” OC Curve
Keep whole
shipment
P(Accept Whole Shipment)

100 –

75 – Return whole
shipment
50 –
Cut-Off
25 –

| | | | | | | | | | |
0 –
0 10 20 30 40 50 60 70 80 90 100
% Defective in Lot

© 2006 Prentice Hall, Inc. S6 – 75

 AQL and LTPD
 Acceptable Quality Level (AQL)
 Poorest level of quality we are
willing to accept
 Lot Tolerance Percent Defective
(LTPD)
 Quality level we consider bad
 Consumer (buyer) does not want to
accept lots with more defects than
LTPD
© 2006 Prentice Hall, Inc. S6 – 76
 Producer’s and Consumer’s
Risks
 Producer's risk ()
 Probability of rejecting a good lot
 Probability of rejecting a lot when the
fraction defective is at or above the
AQL
 Consumer's risk ()
 Probability of accepting a bad lot
 Probability of accepting a lot when
fraction defective is below the LTPD
© 2006 Prentice Hall, Inc. S6 – 77
 An OC Curve
Figure S6.9
100 –
95 –  = 0.05 producer’s risk for AQL

75 –

Probability
of 50 –
Acceptance

25 –

10 –
 = 0.10 Percent
0 |– | | | | | | | |
0 1 2 3 4 5 6 7 8 defective
Consumer’s AQL LTPD
risk for LTPD Good Indifference
lots Bad lots
zone

© 2006 Prentice Hall, Inc. S6 – 78

 OC Curves for Different
Sampling Plans

n = 50, c = 1

n = 100, c = 2

© 2006 Prentice Hall, Inc. S6 – 79

 Thank you

© 2006 Prentice Hall, Inc. S6 – 83