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Managerial Issues

Sampling (technique for data collection)

Use appropriate Control Charts

Control Charts for Variables

Setting Mean Chart Limits ( x-Charts)

Setting Range Chart Limits (R-Charts)

Control Charts for Attributes

P-Charts: For single attributes

C-Charts: For multiple attributes

Decide UCL and LCL for each control chart

Process Capability and Acceptance Sampling

Show changes in data pattern

e.g., trends

Make corrections before process is out of

control

Find causes of changes in data

Assignable causes

Data outside control limits or trend in data

Natural causes

Random variations around average

Purposes of Control Chart

Natural (Normal) Variations

Comprised of a myriad of small sources that

are always present in a process and affect all

elements of the process.

Vibration

Humidity

Temperature

Lighting

Other uncontrollable factors

Usually is difficult or costly to control

Assignable (Abnormal)

Variations

Caused by the controllable quality problems

in a product or process.

Poor product design

Machines out of order

Tools wear out

Poor incoming materials

Low skills and qualification of workers

Workers’ fatigue

Unpleasant working conditions

Poor training

Produce Good

Provide Service

Stop Process

Yes

No

Assign.

Variation?

Take Sample

Inspect Sample

Find Out Why

Create

Control Chart

Start

Statistical Process Control

Steps

Characteristics for

which you focus on

defects

Classify products as

either ‘good’ or

‘bad’, or count #

defects

Categorical or

discrete random

variables

Attributes Variables

Two Types of Quality

Characteristics

•Characteristics that

can be measured

continuously, e.g.,

weight, length

•May be in whole or in

fractional numbers

•Continuous random

variables

Control

Charts

R

Chart

Variables

Charts

Attributes

Charts

X

Chart

P

Chart

C

Chart

Continuous Numerical

Data

Categorical or Discrete

Numerical Data

Control Chart Types

Sampling Techniques in

Quality Control

Why sampling

Too costly to inspect all outcomes from a process

Sample size: SPC usually uses average of a

small number of items as a sample

Individual pieces tend to be too erratic to make

trends quickly visible

Serve as the input of all control charts

Both sampling rule and sample sizes affect

the cost and accuracy of quality control

Monitoring the Weights of Oat

Flakes (Example S1, p226)

Purpose of sampling and the sampling rule

The weights of boxes of Oat Flakes within a large

production lot are sampled each hour

Sample Frequency

Sampling every hour

Sample size

In each sampling, 9 boxes are randomly selected

and weighted

Confidence and number of standard deviation

o = 2 for 95.5% confidence; o = 3 for 99.73%

confidence

X

Mean

o

o

x

x

n

=

Standard

deviation (STD)

X = µ

Central Limit Theorem

n

x

i

n

i

x

1 =

¿

=

Normalization of Sample

Distributions

Uniform

Normal

Beta

(mean)

x

2 within fall x all of 95.5% o ±

x

3 within fall x all of 99.7% o ±

x

3

x

2

x

x

x

1

x

2

x

3 o + o + o 1 + o ÷ o ÷ o ÷

Three population distributions

Relationship of Confidence

and Number of STD (o)

Properties of normal distribution

x

2 within

fall x l al of 95.5%

o ±

x

3 within

fall x l al of 99.7%

o ±

x

µ = x

Type of variables control chart

Interval or ratio scaled numerical data

Shows sample means over time

Monitors process average

Example: Weigh samples of coffee &

compute means of samples; Plot

X Chart

X Chart and Control Limits

(Formula 1)

If the process mean and standard deviation are known:

where: _

X = average mean of samples

Z = number of standard deviations

o

x

= standard deviation of sample means

o

x

= process standard deviation,

n = number of observations in a sample

X X

X X

Z X LCL

Z X UCL

o

o

÷ =

+ =

n

X

X

o

o =

Sample

Range at

Time i

# Samples

Sample

Mean at

Time i

From

Table S6.1

R A x

x

LCL

R A x

x

UCL

2

÷ =

2

+ =

n

R

R

i

n

1 i=

¿

=

n

x

i

n

i

x

1 =

¿

=

X Chart and Control Limits

(Formula 2)

Factors for Computing Control

Chart Limits (3 sigma, p.227)

Sample

Size, n

Mean

Factor, A

2

Upper

Range, D

4

Lower

Range, D

3

2 1.880 3.268 0

3 1.023 2.574 0

4 0.729 2.282 0

5 0.577 2.115 0

6 0.483 2.004 0

7 0.419 1.924 0.076

8 0.373 1.864 0.136

9 0.337 1.816 0.184

10 0.308 1.777 0.223

0.184

Super Cola (Example S2, p228)

Super Cola bottles soft drinks labeled

”net weight 16 ounces.” An overall

16.01 ounces has been found by taking

several batches of samples, in which

each sample contained 5 bottles. The

average range of the process is 0.25

ounce. Determine the upper and lower

control limits for averages in this

process.

Sample Range at

Time i

# Samples

From Table S6.1

R Chart

Control Limits

n

R

R

R D LCL

R D UCL

i

n

1 i

3 R

4 R

=

¿

=

=

=

Loading Trucks (Example S3,

p228)

The average range of a process for

loading trucks is 5.3 pounds. If the

sample size is 5, determine the upper

and lower control limits for the R-Chart.

X-bar and R Charts

Complement Each Other

Three Types of Output for

Variable

Frequency

Lower control limit

Size

Weight, length, speed, etc.

Upper control limit

(b) In statistical control, but not

capable of producing within control

limits. A process in control (only

natural causes of variation are

present) but not capable of

producing within the specified

control limits; and

(c) Out of control. A process out of

control having assignable causes of

variation.

(a) In statistical control and

capable of producing within

control limits. A process with

only natural causes of

variation and capable of

producing within the specified

control limits.

Control chart for attributes with scaled

categorical data (e.g., good-bad)

Normally measure the percent of defective in

a sample

Assume the outcome of each sample follows

binomial distribution

Example:

Count number defective chairs & divide by total

chairs inspected in each sample

plot the result along the time line

Chair is either defective or not defective

p Chart

Control limit of p Charts

# Defective Items

in Sample i

Size of sample i

z = 2 for 95.5% limits;

z = 3 for 99.7% limits

i

k

1 i

i

k

1 i

n

x

p

) 1 (

) 1 (

=

=

¿

¿

=

÷

÷ =

÷

+ =

n

p p

z p LCL

n

p p

z p UCL

p

p

ARCO (Example S4, p231)

Data-entry clerks at ARCO key in thousands

of insurance records each day. Samples of

the work of 20 clerks are shown in the table.

One hundred records by each clerk were

carefully examined and the number of errors

counted. The fraction in each sample was

then computed as p-bar.

Set the control limits to include 99.73% of

the random variation in the entry process

when it is in control.

Attributes control chart for discrete data

Shows the number of nonconformities

(defects) in a unit (unit may be chair, steel

sheet, car etc).

UCL and LCL are not sensitive to the sample size

Assume the defect number is Poison distribution

Example:

Derive the average number of defects

(scratches, chips etc.) in each chair of a

sample of 100 chairs

Plot the average number along the timeline

c - Chart

Control Limits of c-Charts

# Defects in

Unit i

# Units Sampled

Use 3 for 99.7%

limits

k

c

c

i

k

1 i=

¿

=

÷ =

+ =

c c LCL

c c UCL

c

c

3

3

Red Top Cap (Example S5,

p233)

Red Top Cab Company receives several

complaints per day about the behavior

of its drivers. Over a 9-day period

(where days are the units of measure),

the owner received the following

number of calls from rate passengers:

{3, 0, 8, 9, 6, 7, 4, 9, 8} for a total of

54 complaints. Compute the UCL and

LCL limits at 99.7% confidence.

Managerial Issues and Control

Charts

Three major decisions regarding control chart

Select the points in the process that need

SPC

Which process point is critical

Which point tends to be out of control

Select appropriate chart and UCL/LCL

Set clear and specific SPC policies for workers

to follow

Process Capability C

pk

population process the of deviation standard

mean process x where

3

Limit ion Specificat Lower x

or ,

3

x Limit ion Specificat Upper

of minimum

=

=

(

¸

(

÷

¸

÷

=

o

o

o

pk

C

Measure difference between actual and desire output quality

Application of Process Capacity:

Technology selection

Performance evaluation

Meanings of C

pk

Measures

C

pk

= negative number

C

pk

= zero

C

pk

= between 0 and 1

C

pk

= 1

C

pk

> 1

Form of quality testing used for incoming

materials or finished goods

e.g., purchased material & components

Procedure

Take one or more 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

What Is Acceptance

Sampling?

Shows how well a sampling plan

discriminates between good & bad lots

(shipments)

Shows the relationship between the

probability of accepting a lot & its

quality

Operating Characteristics

Curve

% Defective in Lot

P(Accept Whole Shipment)

100%

0%

Cut-Off

1 2 3 4 5 6 7 8 9 10 0

Return whole

shipment

Keep whole

shipment

OC Curve

100% Inspection

OC Curve with Less than

100% Sampling

P(Accept Whole Shipment)

100%

0%

% Defective in Lot

Cut-Off

1 2 3 4 5 6 7 8 9 10 0

Return whole

shipment

Keep whole

shipment

Probability is not 100%: Risk

of keeping bad shipment or

returning good one.

Supplier/Producer's risk (o)

Probability of rejecting a good lot (type I error)

Probability that a lot get rejected when fraction

defective is AQL

Buyer/Consumer's risk (ß)

Probability of accepting a bad lot (type II error)

Probability of accepting a lot when fraction

defective is LTPD

Producer’s & Consumer’s Risk

Acceptable quality level (AQL)

Quality level of a good lot from producer’s

standard

Producer (supplier) does not want lots with fewer

defects than AQL rejected

Lot tolerance percent defective (LTPD)

Quality level of a bad lot from buyer’s standard

Consumer (buyer) does not want lots with more

defects than LTPD accepted

AQL & LTPD

An Operating Characteristic

(OC) Curve Showing Risks

|= 0.10

Consumer’s

risk for LTPD

Probability of

Acceptance

Percent

Defective

0 1 2 3 4 5 6 7 8

100

95

75

50

25

10

0

o = 0.05 producer’s risk for AQL

Bad lots Indifference zone

Good

lots

LTPD AQL

Set of procedures for inspecting

incoming materials or finished goods

Identifies

Type of sample

Sample size (n)

Criteria (c) used to reject or accept a lot

Producer (supplier) & consumer (buyer)

must negotiate

What Is an Acceptance Plan?

Assignment #3

Solve and Answer the following

problems in the textbook (p245 to

p249)

S6.6, S6.8 (x-Chart and R-Chart)

S.6.15, S6.16, S6.17, S6.18 (P-Chart)

S6.21, S6.23, S6.24 (C-Chart)

S6.29, S6.30, S6.31 (process capability)

**Purposes of Control Chart
**

Show changes in data pattern

e.g., trends

Make corrections before process is out of

control

**Find causes of changes in data
**

Assignable causes

Data outside control limits or trend in data

Natural causes

Random variations around average

**Natural (Normal) Variations
**

Comprised of a myriad of small sources that are always present in a process and affect all elements of the process.

Vibration Humidity Temperature Lighting Other uncontrollable factors

Usually is difficult or costly to control

Assignable (Abnormal) Variations Caused by the controllable quality problems in a product or process. Poor product design Machines out of order Tools wear out Poor incoming materials Low skills and qualification of workers Workers’ fatigue Unpleasant working conditions Poor training .

Variation? Take Sample Inspect Sample Create Control Chart Yes Stop Process Find Out Why .Statistical Process Control Steps Start Produce Good Provide Service No Assign.

e.g.. weight. length •May be in whole or in fractional numbers •Continuous random variables Attributes Characteristics for which you focus on defects Classify products as either ‘good’ or ‘bad’. or count # defects Categorical or discrete random variables .Two Types of Quality Characteristics Variables •Characteristics that can be measured continuously.

Control Chart Types Continuous Numerical Data Control Charts Categorical or Discrete Numerical Data Variables Charts R Chart X Chart P Chart Attributes Charts C Chart .

Sampling Techniques in Quality Control Why sampling Too costly to inspect all outcomes from a process Sample size: SPC usually uses average of a small number of items as a sample Individual pieces tend to be too erratic to make trends quickly visible Serve as the input of all control charts Both sampling rule and sample sizes affect the cost and accuracy of quality control .

73% confidence Sample size Confidence and number of standard deviation . = 3 for 99. 9 boxes are randomly selected and weighted = 2 for 95.5% confidence.Monitoring the Weights of Oat Flakes (Example S1. p226) Purpose of sampling and the sampling rule The weights of boxes of Oat Flakes within a large production lot are sampled each hour Sample Frequency Sampling every hour In each sampling.

Central Limit Theorem Mean x i xi n X n Standard deviation (STD) x x n X .

7% of all x fall within 3 x .Normalization of Sample Distributions Three population distributions Beta Normal Uniform 3 x 2 x 1 x x (mean) x 2 x 3 x 95.5% of all x fall within 2 x 99.

5% of al l x fall within 2 x 99.Relationship of Confidence and Number of STD () Properties of normal distribution 95.7% of al l x fall within 3 x x x .

Plot .X Chart Type of variables control chart Interval or ratio scaled numerical data Shows sample means over time Monitors process average Example: Weigh samples of coffee & compute means of samples.

X Chart and Control Limits (Formula and standard deviation are known: 1) If the process mean UCL X X Z X LCL X X Z X where: _ X = average mean of samples Z = number of standard deviations x = standard deviation of sample means X X n x = process standard deviation. n = number of observations in a sample .

1 x i xi n n Sample Mean at Time i R # Samples i 1 Ri n n .X Chart and Control Limits (Formula 2) UCL x x A R LCL x x A R Sample Range at Time i From Table S6.

227) Sample Size.076 0.864 1.924 1.268 0 1.483 0. A2 Range.816 1.Factors for Computing Control Chart Limits (3 sigma.373 0.184 0.004 1.777 0 0 0 0 0.282 2.115 2. n 2 3 4 5 6 7 8 9 10 Mean Upper Lower Factor.337 0. D3 1.223 0.577 0.184 . D4 Range.419 0.880 3.574 2.136 0.023 0.729 0. p.308 2.

in which each sample contained 5 bottles.01 ounces has been found by taking several batches of samples. . Determine the upper and lower control limits for averages in this process.” An overall 16. p228) Super Cola bottles soft drinks labeled ”net weight 16 ounces.25 ounce. The average range of the process is 0.Super Cola (Example S2.

1 LCL R D3R R i 1 n Ri n Sample Range at Time i # Samples .R Chart Control Limits UCL R D4 R From Table S6.

p228) The average range of a process for loading trucks is 5. If the sample size is 5. determine the upper and lower control limits for the R-Chart. .Loading Trucks (Example S3.3 pounds.

X-bar and R Charts Complement Each Other .

length.Three Types of Output for Variable Frequency Lower control limit (a) In statistical control and capable of producing within control limits. A process out of control having assignable causes of variation. speed. Upper control limit (b) In statistical control. . A process in control (only natural causes of variation are present) but not capable of producing within the specified control limits. A process with only natural causes of variation and capable of producing within the specified control limits. and (c) Out of control. etc. Size Weight. but not capable of producing within control limits.

g.. good-bad) Normally measure the percent of defective in a sample Assume the outcome of each sample follows binomial distribution Example: Count number defective chairs & divide by total chairs inspected in each sample plot the result along the time line Chair is either defective or not defective .p Chart Control chart for attributes with scaled categorical data (e.

z = 3 for 99.7% limits LCL p p z # Defective Items in Sample i Size of sample i p i 1 k i 1 .Control limit of p Charts UCLp p z p (1 p ) n p (1 p ) n xi ni k z = 2 for 95.5% limits.

Samples of the work of 20 clerks are shown in the table.ARCO (Example S4.73% of the random variation in the entry process when it is in control. One hundred records by each clerk were carefully examined and the number of errors counted. . Set the control limits to include 99. The fraction in each sample was then computed as p-bar. p231) Data-entry clerks at ARCO key in thousands of insurance records each day.

UCL and LCL are not sensitive to the sample size Assume the defect number is Poison distribution Example: Derive the average number of defects (scratches. car etc). chips etc. steel sheet.Chart Attributes control chart for discrete data Shows the number of nonconformities (defects) in a unit (unit may be chair.) in each chair of a sample of 100 chairs Plot the average number along the timeline .c .

Control Limits of c-Charts UCLc c LCLc c ci k c c Use 3 for 99.7% limits # Defects in Unit i # Units Sampled c i1 k .

9. Compute the UCL and LCL limits at 99. Over a 9-day period (where days are the units of measure). 8. 0. 6. 8} for a total of 54 complaints.7% confidence. 4. . 7.Red Top Cap (Example S5. p233) Red Top Cab Company receives several complaints per day about the behavior of its drivers. 9. the owner received the following number of calls from rate passengers: {3.

Managerial Issues and Control Charts Three major decisions regarding control chart Select the points in the process that need SPC Which process point is critical Which point tends to be out of control Select appropriate chart and UCL/LCL Set clear and specific SPC policies for workers to follow .

Process Capability Cpk Upper Specificat ion Limit x C pk minimum of 3 x Lower Specificat ion Limit 3 where x process mean Measure difference between actual and desire output quality . or standard deviation of the process population Application of Process Capacity: Technology selection Performance evaluation .

Meanings of Cpk Measures Cpk = negative number Cpk = zero Cpk = between 0 and 1 Cpk = 1 Cpk > 1 .

.What Is Acceptance Sampling? Form of quality testing used for incoming materials or finished goods e.g. purchased material & components Take one or more 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 Procedure .

Operating Characteristics Curve Shows how well a sampling plan discriminates between good & bad lots (shipments) Shows the relationship between the probability of accepting a lot & its quality .

OC Curve 100% Inspection P(Accept Whole Shipment) 100% Keep whole shipment Return whole shipment 0% 0 1 2 3 Cut-Off 4 5 6 7 8 9 10 % Defective in Lot .

OC Curve with Less than 100% Sampling P(Accept Whole Shipment) 100% Probability is not 100%: Risk of keeping bad shipment or returning good one. Return whole shipment Keep whole shipment 0% 0 1 2 3 4 Cut-Off 5 6 7 8 9 10 % Defective in Lot .

Producer’s & Consumer’s Risk Supplier/Producer's risk () Probability of rejecting a good lot (type I error) Probability that a lot get rejected when fraction defective is AQL Probability of accepting a bad lot (type II error) Probability of accepting a lot when fraction defective is LTPD Buyer/Consumer's risk (ß) .

AQL & LTPD Acceptable quality level (AQL) Quality level of a good lot from producer’s standard Producer (supplier) does not want lots with fewer defects than AQL rejected Quality level of a bad lot from buyer’s standard Consumer (buyer) does not want lots with more defects than LTPD accepted Lot tolerance percent defective (LTPD) .

05 producer’s risk for AQL 50 25 = 0.An Operating Characteristic (OC) Curve Showing Risks 100 95 75 Probability of Acceptance = 0.10 Consumer’s risk for LTPD 10 0 0 1 Good lots 2 AQL 3 4 5 6 7 8 LTPD Bad lots Percent Defective Indifference zone .

What Is an Acceptance Plan? Set of procedures for inspecting incoming materials or finished goods Identifies Type of sample Sample size (n) Criteria (c) used to reject or accept a lot Producer (supplier) & consumer (buyer) must negotiate .

S6. S6. S6.31 (process capability) . S6.18 (P-Chart) S6.21.17. S6.24 (C-Chart) S6.6.Assignment #3 Solve and Answer the following problems in the textbook (p245 to p249) S6.30.29.8 (x-Chart and R-Chart) S.16. S6. S6. S6.6.15.23.

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