QM 18-19 Mte PDF

MIN-310 Quality Management (Dvivedi - 17-02-2019
For limited Circulation)
INDIAN INSTITUTE OF TECHNOLOGY ROORKEE
Quality Management
MIN-310
Instructor – Dr. Akshay Dvivedi
• Session 2018-2019
aterial is for classroom discussion and teachingThis

only material is for classroom discussion and teaching only
The Factory System
FA C T O R Y L I F E
This material is for teaching and classroom

discussion only 1
Cottage Industries
• Before IR (1750-1850) began, people produced goods in their

homes
• Direct interaction with suppliers, merchants and customers
• One person manufactured (created) a product, from start to finish
• My Time – My Plan – My Way – My Family
• Very hard manual labor
• Inconsistency in production
3
Jobs in Factories
• Left homes to work in a place built for industry

• Trained to perform just one task in creating a product
• Men, Women, Children workers
• Workers received orders from managers and factory owners
• Paid salary for their work

discussion only 2
Factory ---- ?
http://www.theatlantic.com/infocus/2012/01/scenes-from-india/100227/
http://bangalore.citizenmatters.in/articles/view/2
422-cage-free-farming-eggs-bangalore
5
Factory ---- ?
• Dangerous
• No regulations
• Machine parts were left exposed so they could be fixed easily
• Severe injuries with accidents
• Long shifts (12 hours or more) for six days
• One meal break a day
• Loud, hot, poorly ventilated, and very dirty

discussion only 3
The Plight of the Workers
• There were far more workers than positions

in the factory
– They had to compete with one another
for a job
– Factory owners could charge lower
wages to people desperate for a job
• Since workers only performed one easily-
learned task, they were easy to replace
– Any worker who complained or who
didn’t meet performance standards was
fired
– Many workers would hide injuries or
illnesses from their managers because
they wanted to keep their job
Factory Act of 1833
• Required inspections of factories

• Inspectors found numerous incidents of torture and imprisonment
– People didn’t have access to bathrooms
– People were chained to machines
– People were not allowed to take breaks
• Shifts could last for 14 hours
• LAWS
• No children under 9 allowed to work
• Children should not work more than 8 hrs/day
• Women should not work more than 12 hrs/day

discussion only 4
KEY TO GROWTH –
KEY TO GROWTH –
Standardization and Specialization !!!
Quality and Quality Control

• Global Market ->(Competiveness) -> New Scenarios (Perform in
terms of cost, quality, delivery, dependability, innovation and
flexibility)
• Organizational performance can be improved through the effective
use of production capability, technology and operations strategy
– Total Quality Management (TQM)
– Quality Function Deployment (QFD)
– Six Sigma
– Business Process Re-engineering (BPR)
– Just In Time (JIT)
– Benchmarking
– Performance Measurement

discussion only 5
Quality Misconception
1. Better quality requires higher cost.
2. Quality is innately perceived as separating good from bad.
3. Increased quality can be achieved through investment in
technology.
4. Quality is confined to the product and therefore
manufacturing process…
5. Quality is responsibility of quality manager and his
department.
Quality Characteristics
Quality Characteristic may be one or more elements which define the intended
quality level of a product or service. Several grouping of these characteristics can be
formed in:
Structural characteristics include such elements as the length of a part, the weight
of a can, the strength of a beam, the viscosity of a fluid, and so on.
Sensory characteristics include the taste of good food, the smell of a sweet
fragrance, and the beauty of a model, among others.
Time-oriented characteristics include such measures as a warranty, reliability, and

maintainability.
Ethical characteristics include honesty, courtesy, friendliness, and so on.

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discussion only 6
Evolution of Quality
• Inspect operators work – Decide (Accept/Reject?)

FOCUS – ONLY Decide -------- do not improve.
• 1920’s - statistical theory in QC

• 1924 - Shewhart (First CC)
• Shewhart’s work was later developed by Deming ----- SPC
• Late 1940’s – Minimalistic use of SPC in manufacturing
13
• In the early 1950’s, quality management practices

developed rapidly in Japanese plants, and become a
major theme in Japanese management philosophy,
such that, by 1960, quality control and management
had become a national preoccupation.
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discussion only 7
• Feigenbaum presented a paper in a conference and the

term “total quality” was used for the first time, It was
referred to wider issues such as planning, organization and
management responsibility.
• Ishikawa authored a paper - “total quality control” in Japan!
• “company wide quality control” - how all employees
(top management to the workers) must study and
participate in QC.
• 1970 - Company wide quality management - common in
Japanese companies.
15
• Late 1980’s to early 1990 - Total quality management

(TQM) came into existence (western world).
• Wider concept - addresses overall organizational
performance and recognizes the importance of
processes…
• 21st century - TQM has developed in many countries into

holistic frameworks, aimed at helping organizations achieve
excellent performance, particularly in customer and
business results.
16

discussion only 8
Evaluation of Quality*
*Saad GH, Siha S (2000),"Managing quality: critical links and a

contingency model", International Journal of Operations &
Production Management, 20 (10),pp. 1146-1164
Stage Associated with Quality Improvement
• Commitment Stage
• Consolidation Stage
• Maturity Stage
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discussion only 9
CoQ
19
CoQ
20

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Prevention
Appraisal
Internal
Quality Costs
External
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CoQ
22

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CoQ
23
CoC
24

discussion only 12
Quality Characteristics
Quality Characteristic may be one or more elements which define the intended
quality level of a product or service. Several grouping of these characteristics can be
formed in:
Structural characteristics include such elements as the length of a part, the weight
of a can, the strength of a beam, the viscosity of a fluid, and so on.
Sensory characteristics include the taste of good food, the smell of a sweet
fragrance, and the beauty of a model, among others.
Time-oriented characteristics include such measures as a warranty, reliability, and
maintainability.
Ethical characteristics include honesty, courtesy, friendliness, and so on.
25
Responsibility Towards Quality
8 Stages of Industrial Cycle

26

discussion only 13
Products and their customer EXPECTATIONS

• Automobile?
• Laptop?
• Mobile Phone?
• Pen?
27
Services and Their Customer EXPECTATIONS

• IIT Roorkee Hospital?
• SBI IIT Roorkee Branch?
• PNB IIT Roorkee Branch?
• Mess Food?
28

discussion only 14

Dimensions of Product Quality (Garvin, 1990*)
• Performance - will the product do the intended job?

• Features - what does the product do?
• Reliability - how often the product fails?
• Conformance - with what precision, the product or service
meets the specified standards?
• Durability - how long the product lasts?
• Serviceability - how easy is to repair the product?
• Aesthetics - what does the product look like?
• Perceived quality - what is the reputation of a company or its products?
*Healthcare Forum Journal, September-October 1990, Vol. 33, #5
Why difference definitions of Quality exist?
• Understanding that definitions and dimensions of quality exist allows

measures to be taken to provide a better basis for communication and
planning in a firm.
• By sharing a common definition of quality, each department within a

company can work toward a common goal.
• Understanding the multiple dimensions of quality desired by customers

can lead to improved product and service design.
• HP embarked on a “customer one-on-one” program that emphasized

customer interaction with production workers.
30

discussion only 15
Dimensions of Service Quality - Carol King

• Responsiveness
• Competence
• Access
• Courtesy
• Communication
• Credibility
• Security
• Understanding
31
Service Quality Dimensions
Parasuraman, Zeithamel, and Berry’s ( PZB) Service Quality

Dimensions
1. Tangibles 6. Availability
2. Service Reliability 7. Professionalism
3. Responsiveness
8. Timeliness
4. Assurance
5. Empathy 9. Completeness
10. Pleasantness
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discussion only 16
1. Tangibles
– Include the physical appearance of the service
facility, the equipment, the personnel, and the
communication material.
2. Service Reliability
– Differs from product reliability in that it relates to
the ability of the service provider to perform the
promised service dependably and accurately.
33
3. Responsiveness
– The willingness of the service provider to be helpful and prompt
in providing service.
4. Assurance
– The knowledge and courtesy of employees and their ability to
inspire trust and confidence.
5. Empathy
– the customer desires caring, individual attention paid to
customers by the service firm.

discussion only 17

6. There are several other dimensions of service quality.
7. It should be noted that service design strives to address

these different service dimensions simultaneously.
8. It is not sufficient for a service firm to provide only empathy

if responsiveness and service reliability are inadequate.
35
Quality Defined ?????
36

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37
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discussion only 19
Relevance ----------------- Quality
“The first job we have, is to turn out quality products that

consumers will buy and keep on buying. If we produce it
efficiently and economically, we will earn a profit, in which
you will share.”
- William Cooper Procter
Grandson of the founder of Procter and Gamble
(October 1887)
Long way to go__________
39
• Quality is the fitness of use (Juran) - it is the value of the goods and
services as perceived by the supplier, producer and customer
• The efficient production of the quality that the market expects (Deming)
• Quality is conformance to requirements (P. Crosby)
• Quality is what the customer says, it is (Feigenbaum)
• Quality is the loss that a product costs to the society after being shipped
to the customer (Taguchi)
40

discussion only 20
• Quotes by Juran
“Without a standard there is no logical basis for making a decision or taking
action.”
“Goal setting has traditionally been based on past performance. This
practice has tended to perpetuate the sins of the past.”
“All improvement happens project by project and in no other way.”
41
Juran’s 10 steps to quality improvement are:

• Build awareness of opportunity to improve.
• Set-goals for improvement.
• Organize to reach goals.
• Provide training
• Carryout projects to solve problems.
• Report progress.
• Give recognition.
• Communicate results.
• Keep score.
• Maintain momentum by making annual improvement part of the
regular systems and processes of the company.
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discussion only 21
The Juran Trilogy

1. Quality Planning
In the planning stage, it is critical to define who your customers are and find
out their needs (the “voice of the customer”). After you know what your
customers need, you’re able to define the requirements for your
product/process/service/system, etc., and develop it. Additionally, any plans
that might need to be transferred to operators or other key stakeholders
should be done during the planning phase. Planning activities should be
done with a multidisciplinary team, with all key stakeholders represented.
43
The Juran Trilogy

2. Quality Control
During the control phase, determine what you need to measure (what data
do you need to know if your process is working?), and set a goal for your
performance. Get feedback by measuring actual performance, and act on the
gap between your performance and your goal.
Use of Statistical Process Control (SPC) tools during control
• Pareto Analysis
• Flow diagrams
• Fishbone diagram, and control charts etc.
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discussion only 22
The Juran Trilogy

3. Quality Improvement
There are four different “strategies” to improvement that could be applied
during this phase:
Repair: Reactive; fix what’s broken.
Refinement: Proactive; continually improve a process that isn’t broken
(like the continual pursuit of perfection in Lean!)
Renovation: Improvement through innovation or technological
advancement
Reinvention: Most demanding approach; start over with a clean slate.
45
The “spiral of progress in quality”

discussion only 23
Breakthrough Sequence
According to Juran, all breakthroughs follow the same

sequence:
1. Proof of the need
2. Project identification
3. Organization for improvement
4. The diagnostic journey
5. Remedial action
6. Breakthrough in cultural resistance to change and
7. Holding the gains – control at the new level
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Project by project approach

discussion only 24
The 80/20 rule can be applied to almost anything:

 80% of customer complaints arise from 20% of your products or
services.
 80% of delays in schedule arise from 20% of the possible causes of
the delays.
 20% of your products or services account for 80% of your profit.
 20% of your sales-force produces 80% of your company revenues.
 20% of a systems defects cause 80% of its problems.

discussion only 25

discussion only 26
FY 2018-2019
Height of vertical axis should

Include descriptive
70 represent sum of all
title and time frame.
occurrences
60
Units clearly "Other" category is
labelled. always last, even if
Number of Occurances
50 not the shortest bar.

Bar height shows relative importance;
40 38
arranged in descending order with
tallest bar on left.
30
20
15
12
10 8
5 5
0
Incomplete Labs not Patient request Anesthesia Insurance Other
H&P complete issues issues
Data are divided into categories. Reasons for Cancellation

discussion only 27
55
Deming’s Philosophy
• In the 1970s, Dr. Deming's philosophy was summarized by some of his

Japanese proponents with the following 'a'-versus-'b' comparison:
– (a) When people and organizations focus primarily on quality, defined by the
following ratio:
Results of Work Efforts
QUALITY = Total Costs
– quality tends to increase and costs fall over time.

– (b) However, when people and organizations focus primarily on costs, costs
tend to rise and quality declines over time.
“The most important things cannot be measured."

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Running a company by profit alone is like driving a car by looking in

the rearview mirror. It tells you where you’ve been, not where you are
going!
Dr. E. Deming
57
1. Create constancy of purpose

2. Lead to promote change
3. Build quality into the product; stop depending on inspection
4. Build long term relationships based on performance, not
price
5. Continuously improve product, quality, and service
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discussion only 29
6. Start training
7. Emphasize leadership
8. Drive out fear
9. Break down barriers between departments
10. Stop haranguing workers
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11. Support, help, improve

12. Remove barriers to pride in work
13. Institute a vigorous program of education and self-
improvement
14. Put everybody in the company to work on the
transformation
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The Seven Deadly Diseases
The "Seven Deadly Diseases" include:

– Lack of constancy of purpose
– Emphasis on short-term profits
– Evaluation by performance, merit rating, or annual review of
performance
– Mobility of management
– Running a company on visible figures alone
– Excessive medical costs
– Excessive costs of warranty, fueled by lawyers who work for
contingency fees
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discussion only 31
Philip Crosby Contribution
•Do It Right the First Time

•Zero Defects and Zero Defects
Day
•Four Absolutes of Quality
•Prevention Process
•Quality Vaccine
•Six C's
•Quality Maturity Grid
•Quality is Free
•14 steps of quality
DIRFT (Doing it right the first time)
• DIRFT (Doing it right the first time) is

a theory from managerial accounting that
relates to just-in-time (JIT) inventory
(where a company only receives goods
as they are needed to cut down on
inventory costs) and production
management. The idea behind DIRFT is
that management wants all of the
processes that make up the JIT
philosophy to be done correctly and
efficiently so there are no delays in the
production process.

discussion only 32
DIRFT (Doing it right the first time)
• The importance of DRIFT arises from

the fact that a JIT production system
is heavily reliant on the movement of
parts and information along the
production process.
• Subsequently, if there is the slightest
error at one of the stages of
production the whole production
process will be affected. By "doing it
right the first time" a company is able
to run a smooth production process
without needing to carry excessive
inventory and greatly diminish the
costs of production
Principles of Zero Defects and DIRFT
Zero defects is referred to as a philosophy, a mentality, or a movement

which is aimed at minimizing the number of defects in manufactured
products and service as much as possible. It is often considered as
having no distinct steps to follow or rules to abide by, which leaves
companies open to customizing how they want it to work for
themselves.

discussion only 33
1. QUALITY IS CONFORMANCE TO REQUIREMENTS
Every product or service has a

requirement:
• A description of what the
customer needs.
• When a particular product meets
the requirement, it has achieved
quality, provided that the
requirement accurately describes
what the enterprise and the
customer actually need.
In the technical sense of Zero Defects, the inexpensive disposable
pen is a quality product if it meets requirements: it writes, does not
skip or clog under normal use, and lasts the time specified.
2. DEFECT PREVENTION IS PREFERABLE TO QUALITY

INSPECTION AND CORRECTION
The second principle is based on the observation that it is nearly

always less troublesome, more certain and less expensive to
prevent defects than to discover and correct them.

discussion only 34
3. ZERO DEFECTS IS THE QUALITY STANDARD
The third is based on the normative nature of requirements: if a

requirement expresses what is genuinely needed, then any unit that
does not meet requirements will not satisfy the need and is no good. If
units that do not meet requirements actually do satisfy the need, then
the requirement should be changed to reflect reality.
4. QUALITY IS MEASURED IN MONETARY TERMS – THE PRICE

OF NONCONFORMANCE (PONC)
The fourth principle is key to the methodology. Phil Crosby believes

that every defect represents a cost, which is often hidden.
These costs include inspection time, rework, wasted material and labor,
lost revenue and the cost of customer dissatisfaction.
When properly identified and accounted for, the magnitude of these
costs can be made apparent, which has three advantages.
First, it provides a cost-justification for steps
to improve quality.
Second, it provides a way to measure
progress, which is essential to maintaining
management commitment and to rewarding
employees.
Third, by making the goal measurable,
actions can be made concrete and decisions
can be made on the basis of relative return.

discussion only 35
Four absolutes of quality management:
1. “Quality is defined as conformance to 2. “The system for causing quality is

requirements, not as 'goodness' nor prevention, not appraisal”
'elegance'”
3. “The performance standard must 4. “The measurement of quality is

be zero defects, not “that's close the Price of Non-conformance, not
enough”. indices”.
Philosophy behind 14 steps.
• “Focuses on long-term employee participation,

not short-term motivational tactics.”
- Crosby, Philip (1979) Crosby’s 14 Steps to Improvement

discussion only 36
Step 1: Management Commitment

Top-level view on quality shown to all employees.
• Need for quality improvement discussion, emphasizing the need for defect
prevention.
• Do not confuse “communication” with “motivation.”
• The results of communication are real and long-lasting; the results of influential
conversation are shallow and short-lived.
• Prepare a quality policy that states each individual is expected to “perform exactly
like the requirement or cause the requirement to be officially changed to what we
and the customer really need.”
• Quality improvement profit improvement.
• Quality measurements for each area of activity must be established where they
don’t exist and reviewed where they do.
• Record quality status- improvement, corrective action and documentation.
Defect
Top Quality Customer
Prevention
Management Policy Requirements
Comm.
Step 2: Quality Improvement Team

To pursue the quality regime throughout the business.
• Form the quality improvement team.
• Speak for their departments to commit operations to actions.
• Department heads should participate
• Orient the team members as to the content and purpose of the program.
• Explain their roles. Ensure Bring
• Accomplishment.
Serve
Representative Suggested Tools
Spokesperson
options Together

discussion only 37
Step 3: Quality Measurement

Analysis of business quality performance in a meaningful manner.
• Determine the status of quality throughout the company.

• Quality measurements identifies areas where corrective actions needed &
where improvement efforts be directed.
• Record quality status. Nonmanufacturing measurements, are shown.
• Establish foundation for quality improvement program.
• These principles apply to service operations as well as no. of drafting
errors, no. of contacts.
Determine Identify Foundation

Application
Status of Areas of Of
Of Principles
Quality Correction improvement
Step 4: Cost of Quality Evaluation

Make sure everyone in the business understands the need for a quality system
and the costs to the business if there is no quality system in place.
• Initial estimates are likely to be shaky (although low), and so it is necessary
at this point to get more accurate figures.
• Detailed information provided, constituting COQ.
• COQ is not an absolute performance measurement.
• Corrective action will be profitable for a company.
• The higher the cost, the more corrective action that needs to be taken.
• Establish comptroller, COQ removes any suspected bias from the
calculation.
Implies
Record
Where Comptroller
categorization Of
estimation
Savings Performance
involved

discussion only 38
Step 5: Quality Awareness Step

Again make everyone in the business aware of the impact of quality systems.
• Share the non-quality measurements with employees.
• Train supervisors to orient employees and provide visible evidence of concern for
quality improvement through communication material such as booklets, films and
posters.
• This is an important step. It may be the most important step of all. Service and
administrative people should be included just like everybody else.
• Accomplishment. The real benefit of communication is that it gets supervisors and
employees in the habit of talking positively about quality. It aids the process of
changing, or perhaps clarifying, existing attitudes toward quality. And it sets the
basis for the corrective action and error cause removal steps.
Non Getting
Quality
Quality cost Everybody
to admin attitude
involved
Step 6: Corrective Action for Process Improvement

Ensure a system is in place for analyzing defects in the system and applying
simple cause and effect analysis, to prevent re-occurrence.
• Encourage people to talk about their problems, opportunities for correction

come to light, involving not just the defects found by inspection, audit or
self-evaluation, but also less obvious.
• Problems must be sorted at supervision meetings at each level.
• Those that cannot be resolved are formally passed up to the next level of
supervision for review at their regular meeting.
• Whole process creates stimulating environment of problem identification
& correction.
Open Exposes
Feasible Resolve
Comm. & Unidentified
Solutions problems Problems
Discussion

discussion only 39
Step 7: Establish an Ad Hoc Committee for the Zero Defects

Program
Look for business activities to which zero defect logic should be applied.
• Select three or four members of the team to investigate the zero defects
concept and ways to implement the program.
• The quality manager must be clear, right from the start, that zero defects
not motivation program.
• Purpose- Communicate meaning of “zero defects” and motivate everyone
to do things right the first time DIRFT.
• Ad hoc group seek ways to match the program to the company’s
personality. This must be transmitted to every member of the team.
Zero Achievement Credibility Demonstrates

Defect of To Quality Management
Goal prog. commitment
Comm.
Step 8: Supervisor Training

Get your supervisors trained in both quality logic and zero defect appreciation
which they can apply to their business activities.
• Conduct a formal orientation with all levels of management prior to

implementation of all the steps. All managers must understand each step
well enough to explain it to their people.
• The proof of understanding is the ability to explain it.
• Eventually all supervisors will be tuned into the program and realize its
value for themselves. Then they will concentrate their actions on the
program.

discussion only 40
Step 9: Zero Defects Day

A quality event by which all members of the effected section become aware that a change has taken place.
• Philosophy: Zero Defects day should be established companywide &

should originate one day.
• Establishment of zero defects as the performance standard of the
company should be done in one day. That way, everyone understands it
the same way.
• Supervisors should explain the program to their people and do something
different in the facility so everyone will recognize it is a “new attitude”
day.
• Accomplishment. Management should foster this quality culture
in organization.
Zero
Uniform Quality
Defect Supervision
understanding culture
Implementation
Step 10: Goal Setting

Once a change has been implemented in a section of the business, the next
step is to get the employees and supervisors in that section to set goals
for improvement to bring about continuous improvement.
• Action. During meetings with employees, each supervisor requests they
establish the goals they would like to strive for. Usually, there should be
30-, 60- and 90-day goals.
• All should be specific and measurable.
• This phase helps people learn to think in terms of meeting goals and
accomplishing specific tasks as a team.
Employees
+ 30-,60-,90- Favorable Accomplishm
Supervisors days goal Attitude ent
Specific goals

discussion only 41
Step 11: Error Cause Removal

Communication process by which management are made aware that set goals are
difficult to achieve in order for either the goals to be reset or help given by
management to achieve the goals.
• Employees asked to identified reasons that prevent them from meeting
zero defects goals. They don’t make suggestions but only list problems.
• Task of appropriate functional group is to come up with procedures for
removing these problems..
• Reporting problems should be done quickly.
• Environment of mutual trust is necessary for both the groups to work
together, eliminate problems.
Functional
Employees Elimination
Group Mutual
Identify of
Remove Trust
problems
problems Problems
Step 12: Recognition

Management must recognize the employees who participate in the quality schemes.
• Establish award programs to recognize those who met their goals or

performed outstanding acts.
• Should identify those employees who have either met or succeeded their
goals or have excelled in other ways.
• The prizes or awards should not be financial.
• Genuine recognition of performance is something people really
appreciate. They will continue to support the program whether or not they,
as individuals, participate in the awards.
Identify
Award Encourage
Excelling Participation
program ment
Employees

discussion only 42
Step 13: Quality Councils

Using both specialist knowledge and employee experiences to bring about a
focused approach to business quality regime.
• Action. Bring the quality professionals and team chairpersons
together regularly to communicate
with each other and determine actions necessary to upgrade and improve
the solid quality program
being installed. Council should keep everyone updated on progress.
• These councils are the best source of information on the status of
programs and ideas for action.
They also bring the professionals together on a regular basis.
• Meetings create new ideas for further improvement of quality.
Association:
Update Meetings
Chairperson
On = Improvement
Leaders
progress New ideas
proffesionals
Step 14: Do it over again

Continuous improvement means starting from the beginning again and again.
• The typical program takes a year to 18 months. By that time, turnover and
changing situations will have wiped out most of the education effort.
• Therefore, it is necessary to set up a new team of representatives and
begin again. For instance, mark zero defects day as an anniversary. Or give
a special lunch for all employees.
• The point is that the program is never over. The whole process of Quality
improvement is continuous.
• Repetition makes the program perpetual. It repeats again as quality
philosophy becomes ingrained.
Whole Continuous
Repeat Improve
process Process

discussion only 43
Crosby’s five characteristics of highly successful

organizations
According to Crosby, five characteristics of a highly successful

organizations are:
• People routinely do things right first time
• Change is anticipated and used to advantage
• Growth is consistent and profitable
• New products and services appear when needed
• Everyone is happy to work there
Crosby’s – 4 Absolutes
1. Quality means conformance to requirements
(Requirements needed to be clearly specified so that
everyone knew what was expected of them).
2. Quality comes from prevention (prevention was a result

of training, discipline, example, leadership and more).
3. Quality performance standard is zero defects. Errors

should not be tolerated.
4. Quality measurement is the price of nonconformnace.
88
88

discussion only 44
“Eternally Successful Organisation”
• People routinely do things right first time
• Change is anticipated and used to advantage
• Growth is consistent and profitable
• New products and services appear when needed
• Everyone is happy to work there
89
89
90

discussion only 45
Feigenbaum’s Quality
• Everybody Nobody
• Quality must be actively managed
• Should have visibility at the highest levels of
organization.
91
Hidden Plant
Finished
Product
Good
Quality
Product
Industry Customer
Rework
Defected
Product(s)
92

discussion only 46
Hidden Plant
• Reduced Cost
-Transportation costs
-Re-setup costs
• Avoids lost opportunity
• Prevents negative advertisement (word of mouth).
• More effective use of factors of production.
• Increase in Quality Standards.
93
COST-Inspection
Cost of inspection
Total Cost
Cost
Cost of passing defectives
Optimal
Amount of Inspection
94

discussion only 47
Error - “The sooner, the better”

Prevention
Appraisal
Error elimination cost ratio for Internal
External
development: production : delivery is 1:10:100
Stage Error Prevention Error Correction 1:10:100 Time Cost
Process Adaptive X1 Best Best
Development
Early Review of X1 Slight Delay Low
Design/Process
Mass Good QA X10 Good Expensive
Production
QC After X10 Conditional High
Production Delay Expenses
Delivered Service/Exchange X100 - Very High
Expenses
Unhappy X100 - Loss of
Customer Keeps business
Bad Product
95
Three Issues
1. Productivity
2. Cost
3. Quality
96

discussion only 48
Significant Issue
Of these three determinants of the profitability, the most
significant factor in determining the long range success or failure
of an organization is Quality.
Good quality of product and service can provide:

1. Competitive edge
2. Reduce cost due to returns, rework, and scrap
3. Productivity and Profits

4. Generates Satisfied customers:
Continued Patronage and word of mouth advertisement
97
97
QC-Inspection
• Inspection - generally refers to the activity of checking products

• “Activity such as measuring, examining, testing or gauging one or
more characteristics of a product or service, and comparing the
results with specified requirements in order to establish whether
conformity is achieved for each characteristic” - ISO 2859
• The inspected products can be the components used for production,
work-in-process inventory, or finished goods.

discussion only 49

Inputs Conversion Outputs
Raw Materials,
Production Products and
Parts, and
Processes Services
Supplies
Control Charts Control Charts

and Control Charts and
Acceptance Tests Acceptance Tests
Quality of Quality of Quality of
Inputs Partially Completed Outputs
Products
Pre-production Insp.
In-line/In-process Insp. Pre-shipment Insp.
Timely corrections of any
Evaluation of the average Representative of whole
non-conformities detected
product quality batch
QC Throughout Production Systems
QC-Inspection
Inspection and Quality built
Inspection of lots
corrective into the
before/after
action during process
production
production
Inputs Transformation Outputs
Production
The least The most

progressive progressive
How Much/How Often
Where/When
Centralized vs. On-site

discussion only 50
QC-Inspection
Where to Inspect in the Process COPY-Exactly

• Raw materials and purchased parts NO VARIATION
• Finished products
HOW?
• Before a costly operation
• Before an irreversible process DATA
• Before a covering process
Statistics
Statistics is the study of the collection, organization, analysis, interpretation, and

presentation of data
Statistical Control
Statistical quality control (SQC) is the term used to describe the set
of statistical tools used by quality professionals.
– Descriptive statistics are used to describe quality characteristics and
relationships (mean, standard deviation, the range etc.)
– Statistical process control (SPC) involves inspecting a random sample
of the output from a process and deciding whether the process is
producing products with characteristics that fall within a predetermined
range. SPC answers the question of whether the process is functioning
properly or not.
– Acceptance sampling is the process of randomly inspecting a sample of
goods and deciding whether to accept the entire lot based on the results.
Acceptance sampling determines whether a batch of goods should be
accepted or rejected.

discussion only 51
103
103
Have you ever…

• Shot a rifle?
• Played darts?
• Played basketball?
What is System of point of

these sports?
104

discussion only 52
Have you ever…

Shot a rifle?
Played darts?
Played basketball? Ram
Arjun
Who is the better shot? 105
Discussion
• What do you measure in your process?
• Why do those measures matter?
• Are those measures consistently the same?
• Why not?
106

discussion only 53
Variability
• Deviation = distance between 8

7
observations and the mean (or 10
average) 8
9
Ram
Observations Deviations
10 10 - 8.4 = 1.6
9 9 – 8.4 = 0.6
8 8 – 8.4 = -0.4
8 8 – 8.4 = -0.4
7 7 – 8.4 = -1.4
averages 8.4 0.0
Arjun
107
Variability
• Deviation = distance between

observations and the mean (or
average) Ram
Observations Deviations
7
7 7 – 6.6 = 0.4 6
7 7 – 6.6 = 0.4 7
7 7 – 6.6 = 0.4 7
6 Arjun
6 6 – 6.6 = -0.6
6 6 – 6.6 = -0.6
averages 6.6 0.0
108

discussion only 54
Variability
8
7
10
• Variance = square of average distance 8
between observations and the mean 9
Ram
Observations Deviations Squared Deviations

10 10 - 8.4 = 1.6 2.56
9 9 – 8.4 = 0.6 0.36
8 8 – 8.4 = -0.4 0.16
Arjun
8 8 – 8.4 = -0.4 0.16
7 7 – 8.4 = -1.4 1.96
averages 8.4 0.0 1.04 Variance
109
Variability
• Variance
– Average distance between observations and the mean
squared
– Measures fluctuations of observations around the mean
Ram
Observations Deviations Squared Deviations

7
7 7 - 6.6 = 0.4 0.16
6
7 7 - 6.6 = 0.4 0.16 7
7 7 - 6.6 = 0.4 0.16 7
6 6 – 6.6 = -0.6 0.36 6 Arjun
6 6 – 6.6 = -0.6 0.36
averages 6.6 0.0 0.24 Variance
110

discussion only 55
Variability
• Standard deviation = square root

of variance
Ram
Variance Standard
Deviation
Ram 1.04 1.0
Arjun 0.24 0.4898979 Arjun
But what good is a standard deviation

111
Variability
The world tends to

be bell-shaped
Even very rare Fewer Most Fewer Even very rare

outcomes are in the outcomes in the outcomes are
possible “tails” occur in the “tails” possible
(probability > 0) (lower) middle (upper) (probability > 0)
112

discussion only 56
Variability
Here is why: Even outcomes that are equally

likely (like dice), when you add
them up, become bell shaped
Add up the dots on the dice
0.2
0.15
Probability
1 die
0.1 2 dice
0.05 3 dice
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Sum of dots
113
“Normal” bell shaped curve

Y-axis represents the "density of probability”
Add up about 30 or most things

and you start to be “normal”
Normal distributions are divided up

into 3 standard deviations on
each side of the mean
Once you know that, you

know a lot about
what is going on
And that is what a standard deviation

is good for 114

discussion only 57
Potential Reasons of Variations

The Operator
• Training, supervision, technique
The Method
• Procedure, Set-up, temperature, etc.
The Material
• Moisture content, blending, contamination
The Machine
• Machine condition, inherent precision
Management
• Poor Process management, Poor System
115
Causes of Variations
Common Causes : Improvement in system
• Variation inherent in process
• Can be eliminated only through improvement in system
• No pattern
Assignable Causes : Control of Process

• Variation due to identifiable factors
• Can be modified through operator or management action
• May exhibit a pattern
• Examples of special causes include: wrong tool, wrong production
method, improper raw material, operator’s skill, wrong die etc.
SPC uses samples to identify that Assignable causes have occurred116

discussion only 58
Statistical Process Control
• The underlying concept of statistical process control is based on a

comparison of what is happening today with what happened previously.
• We take a snapshot of how the process typically performs or build a

model of how we think the process will perform and calculate control
limits for the expected measurements of the output of the process.
• Then we collect data from the process and compare the data to the control
limits.
The majority of measurements should fall within the control limits.
Measurements that fall outside the control limits are examined to see
if they belong to the same population as our initial snapshot or model.
117
Statistical Quality Control
• The purpose of statistical quality control is to ensure, in a cost efficient

manner, that the product shipped to customers meets their specifications.
• Inspecting every product is costly and inefficient, but the consequences of

shipping non conforming product can be significant in terms of customer
dissatisfaction.
• Statistical Quality Control is the process of inspecting enough

product from given lots to ensure a specified quality level.
118

discussion only 59
What are SPC Techniques?
There are many ways to implement process control.

Key monitoring and investigating tools include:
• Histograms
• Run Charts
• Pareto Charts
• Cause and Effect Diagrams
• Flow Diagram
• Scatter Diagrams
• Control Charts
119
Control Charts:
Recognizing Sources of Variation
• Why Use a Control Chart?
To monitor, control, and improve process performance over time by
studying variation and its source.
What Does a Control Chart Do?

• Focuses attention on detecting and monitoring process variation over
time;
• Distinguishes special from common causes of variation, as a guide to
local or management action;
• Serves as a tool for ongoing control of a process;
• Helps improve a process to perform consistently for higher quality, lower
cost, and higher effective capacity;
• Provides a common language for discussing process performance.
120
120

discussion only 60
Control Charts:
Recognizing Sources of Variation
Variables “Things we measure”
Length Blood Pressure Diameter

Weight Volume Tensile strength
Time Temperature
Attributes “Things we count”
Number or percent defective items

Number of defects per item
Types of defects etc.
121
121
Before We Start….
Mean
∑
=
(μ)
Range and Standard Deviation

Range – Difference between largest and smallest observation
Sample Std. Dev. – Measures variability (sq. root of variance)
(μ)

discussion only 61
Before We Start….
Sampling
distribution
Process
distribution
Mean
Central Limit Theorem – if plotted statistic is a sample average, it
will tend to have a normal distribution.
Thus, even if the parent population is not normally distributed,
control charts for averages are based on normal distributions
Before We Start….
Distribution of Data
294 296 290 300 302 304 306
(ml)
294 296 290 300 302 304 306

(ml)

discussion only 62
Control Charts: Types

Control Charts for Variables Data
_
X and R charts : for sample averages and ranges
_
X and s charts : for sample averages and standard deviations
Md and R charts : for sample medians and ranges
X and Rm charts : for individual measures and moving ranges
Control Charts for Attributes Data
p charts : proportions of units nonconforming
np charts : number of units nonconforming
c charts : number of defects/nonconformities
u charts : number of defects/nonconformities per unit

125
125
Control Charts: Selection
• How Do I Select Control Charts?
Use the following tree diagram to determine which chart

will best fit your situation.
Only the most common types of charts are addressed.
126
126

discussion only 63
Control Chart Selection

n Large X, s
Variables n small X, R
n=1 X-chart, Moving Range

Control
Chart n constant p or np
Defective
n variable p
Attributes
n constant c or u
Defects
n variable u
127
127
Basis of Control Chart


L
=
E
θ
E
s
t
i
m
a
t
e
s
o
f
θ
C
 
C
L
=
E
+
K
σ
θ
S
.
D
o
f
E
S
T
I
M
A
T
O
R
θ
U
 
C
L
=
E
-
K
σ
θ
L
K: - No. of std. deviations of the sample statistics that the

control limits are placed from the centerline.
If we assume normal distribution k=3, 99.74% fall in the range of UCL & LCL
0.26% or 0.0026 fraction out of range.
K can be decided on % outside the limits. 0.2%--K=3.09
128
128

discussion only 64

• Type I error (false alarm)
– Concluding a process is not in control when it actually is
in control. Probability of Type I error is α
• Type II error (lost opportunity)
– Concluding a process is in control when it is not.
Probability of Type II error is β
β
/2 /2
Mean
LCL UCL
/2
Mean
LCL UCL
Type I and Type II Errors
In control Out of control
In control No Error Type I error

(producers risk)
Out of control Type II Error No error
(consumers risk)

discussion only 65
The general formula for the probability density function of the normal distribution
is
Standard deviation
Standard normal distribution
   

Mean
95.44%
99.74%
CL = μ (mean)
UCL = μ + K σx̄ (K=number of standard deviations of the sample statistic)
LCL = μ - K σx̄
σx̄ = σ/√n where, σx̄ is std. dev of sample mean x̄
A machining process for a particular dimension has process mean

as 30 mm and standard deviation as 1.5mm. Construct a control
chart for 3σ limits if samples of size 5 are randomly selected
Sample Ave Dimension x̄ Sample Ave Dimension x̄ Sample Ave Dimension x̄
1 31.45 6 30.20 11 31.56
2 29.70 7 29.10 12 29.50
3 31.48 8 30.85 13 30.50
4 29.52 9 31.55 14 30.72
5 28.30 10 29.43 15 28.92
CL = 30 mm
σx̄ = 1.5/√5 = 0.671 mm
UCL = 30 + 3(0.671) = 32.0123 mm
LCL = 30 - 3(0.671) = 27.987 mm

discussion only 66
a. Construct a control chart for average breaking strength of rope.

Samples of size 5 are randomly chosen from the process.
Given - Process mean and standard deviation are 120 kg and 8 kg
respectively.
b. If control limits are placed at 3 σ, what is probability of Type I
error.
CL = 120 kg
σx̄ = 8/√5
UCL = 120 + 3(8/√5) = 130.733 kg
LCL = 120 - 3(8/√5) = 109.267 kg
X- 130.733-120
Z=   3.00
X 8 5
This table gives a probability that a statistic is less than Z. This equates to the area of
the distribution below Z.
Probability of Type I error will be .0026

discussion only 67
c. If process mean shifts to 125 kg, what is the probability that

process is in control and hence making a type II error
?
CL = 120 kg
σx̄ = 8/√5
UCL = 120 + 3(8/√5) = 130.733 kg
LCL = 120 - 3(8/√5) = 109.267 kg
X- 130.733-125
Z
Z1 =   1.60
2 X 8 5
X- 109.267-125 β= 0.9452
Z
Z2 =   4.40
1 X 8 5

Error - > Mean has shifted but concluded as Process in Control = Area Between Limits
Area above UCL is 0.0548, Area below LCL is 0,
Area between control limits is 1-(0.0548 + 0) = 0.9452
Hence, probability of making a type II error is 0.9452
0.0548

discussion only 68

Type II error: - results from inferring that a process is in
control when it is actually out of control.
(no of observations goes out of control limit)
137
137
Effect of CL on errors in inference making
Type I error (α) reduces when control limits are placed farther apart.
Control Limits > = 4 sigma , Type I error is negligible.
±
k
σ
μ
Control limits =  

discussion only 69
Operating Characteristic Curve
An operating characteristic (OC) curve is a measure of goodness of a

control chart's ability to detect changes in process parameters.
Specifically, it is a plot of the probability of the Type II error versus
the shifting of a process parameter value from its in-control value.
OC curves enable us to determine the chances of not detecting a shift
of a certain magnitude in a process parameter on a control chart.
139
139
140
140

discussion only 70

Samples of size 5 are randomly chosen from a process whose
mean and standard deviation are estimated to be 120 kg and 8 kg,
respectively. Construct the operating characteristic curve for
increases in the process mean from 120 kg to 123.578, 127.156,
130.733, 134.311, 137.888, 141.466.
CL = 120 kg, σx̄ = 8/√5 X- 130.733-120
UCL = 120 + 3(8/√5) = 130.733 kg Z=   3.00
X 8 5
LCL = 120 - 3(8/√5) = 109.267 kg`
Z2 = (130.733 – 123.578)/3.577 = 1.99 ≈ 2

Z1 = (109.267 – 123.578)/3.577 ≈ -4
Area above UCL is 0.0228, Area below LCL is 0,
Area between control limits is 1-(0.0228 + 0) = 0.9772
Hence, probability of making a type II error is 0.9772
141
141
Z-value at Z-value at Probability of

Process Area above Area above
UCL LCL nondetection,
mean UCL LCL
Z1 Z2
123.578 2.00 .0228 -4.00 .0000 .9772

127.156 1.00 .1587 -5.00 .0000 .8413
130.733 .00 .5000 -6.00 .0000 .5000
134.311 -1.00 .8413 -7.00 .0000 .1587
137.888 -2.00 .9772 -8.00 .0000 .0228
141.466 -3.00 .9987 -9.00 .0000 .0013
142
142

discussion only 71
143
143
Control Chart Performance

Average Run Length
• The average run length (ARL) is a measure of the
performance of the control chart. This denotes the
number of samples on average, required to detect an out-
of-control signal.
• Let p = probability that any point exceeds the control
limits. Then,
3σ Limits
Process in control (P=α), i.e., ARL = 1/α = 1/0.0026 = 385 (False Alarm)
Process out-of-control (P=1-β), i.e., ARL = 1/(1-β)

144
144

discussion only 72
Control Chart Performance

Magnitude of Process Shift α Error β Error ARL Remarks
0 0.0026 - 385 Process in Control
0.5 σ - 0.9938 161.2 Process Out of Control
3.0 σ - 0.5000 2 Process Out of Control
For a process in control we For an out of control process it is

Prefer the ARL to be large desirable for the ARL to be small
Because an observation we want to detect the out of control
Plotting outside the control condition.
Limit represent false alarm.
145
145
Effect of sample size on errors in inference making
n1<n2<n3
146
146

discussion only 73

Control Charts (what they reveal):
• Purpose: to monitor process output to see if it is random
• When to take corrective action
• Pattern of the plot diagnose causes ---- indicates possible remedial
actions
• When to leave process alone?
• Process capability (ability of process to produce within desirable
specifications)
• Possible means for quality improvement

Observations from Sample Distribution
UCL
LCL
1 2 3 4
Sample number
Process should remain random at all times !

discussion only 74

Mean and Range Charts
(process mean is
shifting upward)
Sampling
Distribution
UCL
x-Chart Detects shift

LCL
UCL
Does not
R-chart
detect shift
LCL

Mean and Range Charts
(process variability is increasing)
Sampling
Distribution
UCL
Does not
x-Chart
LCL
reveal increase
UCL
R-chart Reveals increase

LCL

discussion only 75
Warning Limits on Control Charts
Warning limits (if used) are typically set at 2 standard deviations from the
mean.
If one or more points fall between the warning limits and the control limits, or
close to the warning limits the process may not be operating properly.
Good thing: Warning limits often increase the sensitivity of the control chart.
Bad thing: Warning limits could result in an increased risk of false alarms.
151
151
General Rules for Out of Control Situations
Natural Pattern:
They are indicative of a process that is in control; i.e. they
demonstrate the presence of a stable system of common cause.
Sudden Shift:
Sudden change or jump occurs because of changes – in process
setting as temp, pr., depth of cut, change in customer behavior no.
of tellers changed, new eq, process etc.
152
152

discussion only 76

Gradual Shift :
- Change in the Q. of coming material overtime 

X  
- Change in the maintenance program 
 new operator 
 
R  decrease in worker skill 
 gradual improvement in vendors supply 
 
153
153
Trending Pattern:
X  Tool wear, die wear, gradual deterioration of Machines

R  Operator skill 
154
154

discussion only 77
Cyclic Pattern:
 repetitive periodic behavior

X : Periodic change in temp, rotation of operator, seasonal variation
R : Operators fatigue periodic maintenance
155
155
Set of Control Chart Interpretation

rules to determine "Out of Control"
General rules for detecting out of control or non-random situations
Any Point Above +3 Sigma
------------------------------------------------------------------------ +3 LIMIT
2 Out of the Last 3 Points Above +2 Sigma
---------------------------------------------------------------------- +2 LIMIT
4 Out of the Last 5 Points Above +1 Sigma
---------------------------------------------------------------------- +1 LIMIT
8 Consecutive Points on This Side of Control Line
=========================================== CENTER LINE
8 Consecutive Points on This Side of Control Line
------------------------------------------------------------------------ -1 LIMIT
4 Out of the Last 5 Points Below - 1 Sigma
-------------------------------------------------------------------------- -2 LIMIT
2 Out of the Last 3 Points Below -2 Sigma
------------------------------------------------------------------------- -3 LIMIT
Any Point Below -3 Sigma
TREND RULE :6 in a row trending up or down.

14 in a row alternating up and down
156
156

discussion only 78
Control Chart Construction

• Select the process to be charted;
• Decide what to measure and count; (Pareto sizing)
• Determine sampling method and plan;
How large a sample needs to be selected? Balance the time and cost to collect a
sample with the amount of information you will gather.
As much as possible, obtain the samples under the same technical conditions: the
same machine, operator, lot, and so on. (Rational Sub-grouping)
Frequency of sampling will depend on whether you are able to discern patterns in the
data. Consider hourly, daily, shifts, monthly, annually, lots, and so on. Once the
process is “in control”, you might consider reducing the frequency with which
you sample.
Generally, collect 20-25 groups of samples before calculating the statistics and
control limits.
157
157
• Initiate data collection:

Run the process untouched, and gather sampled data.
Record data on an appropriate Control Chart sheet or other
graph paper. Include any unusual events that occur.
• Calculate the appropriate statistics and control limits:

Use the appropriate formulas.
• Construct the control chart(s) and plot the data.
158
158

discussion only 79
159
159
Control Chart Interpretation
What is Process Control?
Process Control is the active changing of the process

based on the results of process monitoring.
Once the process monitoring tools have detected an out-of-

control situation, the person responsible for the process
makes a change to bring the process back into control.
160
160

discussion only 80
Control Chart Interpretation
What to do if the process is "Out of Control"?
If the process is out-of-control, the process engineer looks

for an assignable cause by following the out-of-control
action plan (OCAP) associated with the control chart.
161
161
Control Charts for Variable Type of Data
Centre line, UCL and LCL are calculated using following formulae:
Sample Mean
n
X i = mean of the ith sample
X i
n = sample size,
Xi  i 1
Xi = ith data
n
Ri  X max ( i )
 X min( i ) Ri = range of ith sample
Xmax(i) = maximum value of the data in ith sample
Centerline (X bar) Xmin (i) = minimum value of the data in ith sample
g
X X = mean of ‘g’ samples (g=number of samples)

X  i 1
i
g
Centerline (R chart)
162

discussion only 81

Centre line, UCL and LCL are calculated using following formulae:
UCL x  X  A2 R (Upper control limit for X bar chart)
LCL x  X  A2 R (Lower control limit for X bar chart)
A2 is constant and its value can be obtained from standard table. Its value depend
upon the size of sample.
UCLR  D4 R (Upper control limit for R chart)
LCLR  D3 R (Lower control limit for R chart)
D3 and D4 are constants and their values can be obtained from standard
tables. Their values depend upon the size of sample.
163

Factors for Calculating Limits for and R Charts
n A2 D3 D4
2 1.880 0 3.267
3 1.023 0 2.575
4 0.729 0 2.282
5 0.577 0 2.115
6 0.483 0 2.004
7 0.419 0.076 1.924
8 0.373 0.136 1.864
9 0.337 0.184 1.816
10 0.308 0.223 1.777
n = observations in an sample
164

discussion only 82

The mean values and ranges of data from 16 samples (sample size = 5) are
given as under:
Mean of Mean of Mean of Mean of
S.No Range S.No Range S.No Range S.No Range
Sample Sample Sample Sample
1 10 4 5 9 5 9 10 4 13 12 4
2 15 4 6 11 6 10 11 6 14 12 3
3 12 5 7 11 4 11 12 5 15 11 3
4 11 4 8 9 4 12 13 4 16 15 4
16
X
i 1
Average of mean values of 16 samples = = 11.5 (Center Line of x bar Chart)
16
A2 = 0.577 for sample size 5
Upper Control Limit of x bar chart = 11.5 + A2*4.3125 = 13.98

Lower Control Limit of x bar chart = 11.5 - A2*4.3125 = 9.01
165
UCL = 13.98
CL= 11.5
LCL = 9.01
X-Bar Chart
Sample data at S.N 2, and 16 are slightly above the UCL. Sample data at S.
No. 5 and 8 are slightly below LCL.
Efforts must be made to find the special causes and revised limits are
advised to calculate after deleting these data.
166

discussion only 83
= 4.3125
UCLR  D4 R = 2.115*4.3125 = 9.12
LCLR  D3 R = 0*4.3125 = 0
10
UCL 9
8
7 All the data are within the
6 LCL and UCL
5 Variability of the process
CL 4 data is not an issue
3
2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
R Chart
167
168

discussion only 84
Consider a process by which coils are manufactured. Samples of size 5 are

randomly selected from the process, and the resistance values (in ohms) of the
coils are measured. The data values are given in Table
R i
87
R i 1
  3.48
g 25
For a sample of size 5, D4 = 2.114 and D3 = 0. The trial control limits for the
R-chart are calculated as follows:
UCLR  D4 R  (2.114)(3.48)  7.357

LCLR  D3 R  (0)(3.48)  0

Sample Observation (ohms) X R Comments
1 20,22,21,23,22 21.60 3
2 19,18,22,20,20 19.80 4
New vendor
3 25,18,20,17,22 20.40 8
4 20,21,22,21,21 21.00 2
5 19,24,23,22,20 21.60 5
6 22,20,18,18,19 19.40 4
7 18,20,19,18,20 19.00 2
8 20,18,23,20,21 20.40 5
9 21,20,24,23,22 22.00 4
10 21,19,20,20,20 20.00 2
11 20,20,23,22,23 21.00 3
12 22,21,20,22,23 21.60 3
13 19,22,19,18,19 19.40 4
14 20,21,22,21,22 21.20 2
15 20,24,24,23,23 22.80 4
16 21,20,24,20,21 21.20 4
17 20,18,18,20,20 19.20 2
18 20,24,22,23,23 22.40 4
19 20,19,23,20,19 20.20 4
20 22,21,21,24,22 22.00 3
21 23,22,22,20,22 21.80 3
22 21,18,18,17,19 18.60 4 High Temperature
Wrong Die
23 21,24,24,23,23 23.00 3
24 20,22,21,21,20 20.80 2
25 19,20,21,21,22 20.60 3
Sum=521.00 Sum=87 170

170

discussion only 85

g
X i
521.00
UCL X  X  A 2 R  20.84  (0.577)(3.48)  22.848
X i 1
  20.840
g 25 LCL X  X  A 2 R  20.84  (0.577)(3.48)  18.832
The revised control limits on the R-chart are

UCLR  D4 R  (2.114)(3.273)  6.919
LCLR  D3 R  (0)(3.273)  0
The revised center line on the X BAR chart
459
X  20.864
22
The revised control limits on the
UCL X  X  A 2 R  20.864  (0.577)(3.273)  22.753
LCL X  X  A 2 R  20.864  (0.577)(3.273)  18.975
Sample 15 falls close to UCL on the chart. On further investigation, no special

causes could be identified for this sample. So, the revised limits will be used for
future observations until a subsequent revision takes place.

discussion only 86

Variable Sample Size
A change in the sample size has an impact on the control limits for the
X bar and R charts
An increase in the sample size n reduces the width of the control limits.
Standardized Control Charts

When the sample size varies, the control limits on an X bar and an R-chart will
change . With fluctuating control limits, the rules for identifying out-of-control
conditions become difficult to apply—that is, except for Rule 1 (which assumes
a process to be out of control when an observation plots outside the control
limits). One way to overcome this drawback is to use a standardized control
chart.
To standardize a statistic
Subtract its mean from its value −
=
Divide with its SD ⁄
173
173

g
n X ni – sample size for sample i

i i
X  i1
X i  sam ple m ean si – standard deviation
g
g – no of samples
n
i1
i
Estimate of process SD is the square root of the weighted average of the sample variance
g
^  (n i  1)s i 2
  i1
g
s i  s a m p le S D
 i1
(n i  1)
Xi  X
Standardized value for the mean Zi  ^
 / ni
+3
Zi values are plotted on
0
a CC with CL=0
UCL & LCL +3 & -3 -3
174
174

discussion only 87

Ri
ri  ^
R a n g e 'R i', E s tim a to r o f P ro c e s s S D

ri  d2
Range 'K i '  Mean 'd2', SD 'd3'
d3
+3
0
Ki values are plotted on
a CC with CL=0
-3
UCL & LCL +3 & -3
175
175

Control limits for given target or standard
X given process mean (target) For R chart

0 st.dev ^ R

CL X  X0 d2
^
3 0
UCL X  X0   X 0  A 0  R   d2 0  given
n
3 0 CLR = d2 0
LCL X  X0   X 0  A 0
n UCLR = + 3 R=d2 0+3d3 0
= (d2+3d3) 0 = D2 0
UCLR = D2 0
LCLR = D1 0
Care must be taken while interpreting CC based on standard values
Target value is specified as too high or too low
176
176

discussion only 88

Target values for the average and standard deviation are 21.0
and 1.0 ohms, respectively. The sample size is 5. The center
line and the control limits for the chart are as follows:
CL X  X 0  21.0
UCL X  X 0  A  0  21.0  (1.342)(1.0)  22.342
LCL X  X 0  A  0  21.0  (1.342)(1.0)  19.658
The center line and control limits for the R-chart are
CLR = d2 0 = (2.326)(1.0) = 2.326
UCLR = D2 0 = (4.918)(1.0) = 4.918
LCLR = D1 0 = (0)(1.0) = 0
177
177
The process seems to be out of control with respect to the given standard. Two
samples are above the upper control limit, and a majority of the points lie
above the center line.
Only six of the points plot below the center line. thus it reveals that the
process is not capable of meeting the company guidelines Sigma as 1.0. If
estimated process standard deviation (calculated after the process
was brought to control) is more than target then management must
look at common causes. ^ R

d2
178
178

discussion only 89
22.342
19.658
Several points are out-side the control limits—four points below and two
points above. the revised center line for the X bar chart was found to
be 20.864. Our target center line is now 21.0. Adjusting
controllable process parameters could possibly shift the average
level up to 21.0.
179
179

SD provides a better measure of variability
and s charts
Generally n greater than 10
Centre line, upper, & lower control limit for s charts are calculated.
The formulae used are as following:
Suppose we have g preliminary samples at our disposition,

each of size n, and let si be the standard deviation of the ith sample.
Then the average of the g standard deviations is
g
Where B3 and B4
 1
S 
g  i 1
si (Center Line for ‘s’ chart)
are constants and
their values can
be obtained from
UCL  B S S 4
(Upper control limit for ‘s’ chart)
standard tables.
These values
depend upon the
LCL  B S S 3
(Lower control limit for ‘s’ chart) size of sample.
180
180

discussion only 90

Factors for Calculating Limits for and S Charts
N A3 B3 B4
2 2.359 0 3.267
3 1.954 0 2.568
4 1.628 0 2.266
5 1.427 0 2.089
6 1.287 0.030 1.970
7 1.182 0.118 1.882
8 0.185 1.815
9 0.239 1.761
10 0.284 1.716
181
181

Centre line, upper, & lower control limit for x bar charts are calculated.
n
X i
Xi  i 1
X i = mean of the ith sample

n = sample size,
Xi = ith data
g
X X
X  i 1
i
 CL
= mean of ‘g’ samples
Where A3 is
g x
constants and its

value can be
obtained from
UCL x  X  A3 S (Upper control limit for X bar chart)
standard table. Its
value depend
LCL x  X  A3 S (Lower control limit for X bar chart)
upon the size of
182
sample. 182

discussion only 91

Example
Mean values and SD of data from 30 samples (sample size = 5) are shown in
the table below:
SN Mean SD SN Mean SD SN Mean SD SN Mean SD SN Mean SD

1 55.6 9.63 7 46.8 6.72 13 44 14.35 19 50.2 7.6 25 44.6 8.96
2 61 8.63 8 44.2 8.53 14 51.6 5.18 20 44 8.46 26 46.8 6.5
3 45.2 7.4 9 50.8 11.95 15 53.2 5.36 21 50 5.15 27 49.2 3.19
4 46.2 4.09 10 48.4 6.19 16 52.4 9.48 22 47 5.15 28 45.6 7.96
5 46.8 7.22 11 51.2 6.83 17 50.6 3.44 23 50.6 5.55 29 57.6 14.38
6 49.8 8.76 12 49.4 5.46 18 56 7 24 48.8 6.5 30 51.4 6.8
g
 1
Average of Ranges of 30 samples = S 
g 
i 1
s i = 7.41 (Center Line of s Chart)
Upper Control Limit of s chart = B4*7.41 (B4 = 2.089 for sample size 5)
= 15.48
Lower Control Limit of s chart = B3*7.41 (B3 = 0 for sample size 5) = 0
183
183

Example
Mean values and SD of data from 30 samples (sample size = 5) are shown in
the table below:
SN Mean SD SN Mean SD SN Mean SD SN Mean SD SN Mean SD

1 55.6 9.63 7 46.8 6.72 13 44 14.35 19 50.2 7.6 25 44.6 8.96
2 61 8.63 8 44.2 8.53 14 51.6 5.18 20 44 8.46 26 46.8 6.5
3 45.2 7.4 9 50.8 11.95 15 53.2 5.36 21 50 5.15 27 49.2 3.19
4 46.2 4.09 10 48.4 6.19 16 52.4 9.48 22 47 5.15 28 45.6 7.96
5 46.8 7.22 11 51.2 6.83 17 50.6 3.44 23 50.6 5.55 29 57.6 14.38
6 49.8 8.76 12 49.4 5.46 18 56 7 24 48.8 6.5 30 51.4 6.8
30
X
i 1
Average of mean values of 30 samples = = 49.63 (Center Line of x bar Chart)
30
Upper Control Limit of x bar chart = 49.63 + A3*7.41 = 60.21 (A3 = 1.427 for sample size 5)
Lower Control Limit of x bar chart = 49.63 - A3*7.41 = 39.05 (A3 = 1.427 for sample size 5)
184
184

discussion only 92
60
Sample data at S.N 2, is
55 slightly above the UCL.
Sample Mean
Efforts must be made to find

50 the special causes and
revised limits are advised to
45 calculate after deleting these
data.
40
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
X Bar chart
14
10
All the data are within the
Sample SD
LCL and UCL in S Chart.

6 Hence variability of the
process data is not an issue to
2
worry.
-2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
S chart
185
185

Example
Data for Magnetic Coating Thickness (in microns)
Sample Sample
Sample Mean Sample Standard
Sample Sample Mean Standard
X Deviation, s
X Deviation, s
1 36.4 4.6 11 36.7 5.3
2 35.8 3.7 12 35.2 3.5
3 37.3 5.2 13 38.8 4.7
4 33.9 4.3 14 39.0 5.6
5 37.8 4.4 15 35.5 5.0
6 36.1 3.9 16 37.1 4.1
7 38.6 5.0 17 38.3 5.6
8 39.4 6.1 18 39.2 4.8
9 34.4 4.1 19 36.8 4.7
10 39.5 5.8 20 37.7 5.4
186
186

discussion only 93

The control limits for the s-chart are (sample size – 4)
UCL s = B 4 s = (2.266)(4.790) = 10.854
LCL s = B3 s = (0)(4.790) = 0
187
187

The center line of the X Bar Chart is
20
 X i
7 4 3 .5
UCL X = X + A 3 s = 37.175 + (1.628)(4.790) = 44.973
CL X = X = i =1
= = 3 7 .1 7 5
20 20 LCL X = X - A 3 s = 37.175 - (1.628)(4.790) = 29.377
188
188

discussion only 94

Assuming the thickness of the coating to be normally
distributed, what proportion of the product will not meet
specifications (38 ± 4.5)?
33.5-37.175 42.5-37.175
̅
σ = = 5.199 z1 = =-0.71 z2 = =1.02
4 5.199 5.199
Hence, the proportion of product not meeting specifications is 0.2389+0.1539=0.3928.

189
189

Control limits for given target or standard
Limits for s chart
CLs = c4 0
UCLs= B6 0
LCLs = B5 0
Limits for X bar chart
UCL X = X0 + A 0
LCL X = X0 - A 0
190
190

discussion only 95

Control Charts for Individual Units:
100% inspection, Destructive Testing
Quality characteristic is represented as X, Variability as MR

 =
MR Given Standard
d2
C L MR = MR
 U C L M R = D 4 M R 
  n = 2 ,D 3 = 0 ,D 4 = 3 .2 6 7
 L C L M R = D 3 M R 
CL X = X
 MR 
UCL = X + 3 
 d2 
  we can plot sp.lim it over control chart.
LCL = X - 3 MR 
 d2 
 
191
191

Table below shows the Brinell hardness number (BHN) of 20 individual
steel fasteners and the moving ranges. The testing process dents the parts so
that it cannot be used for their intended purpose. Construct the X- chart and
the MR- chart based on two successive observations. Specification limits
are 32±7.
Sample BHN MR Sample BHN MR
1 36.3 - 11 29.4 1.1

2 28.6 7.7 12 35.2 5.8
3 32.5 3.9 13 37.7 2.5
4 38.7 6.2 14 27.5 10.2
5 35.4 3.3 15 28.4 0.9
6 27.3 8.1 16 33.6 5.2
7 37.2 9.9 17 28.5 5.1
8 36.4 0.8 18 36.2 7.7
9 38.3 1.9 19 32.7 3.5
10 30.5 7.8 20 28.3 4.4
192
192

discussion only 96

 MR CL = X
= X
d2
 M R 
CLMR = MR U C L = X + 3 
 d2 
UCLMR = D 4 MR   
  n = 2,D 3 = 0,D 4 = 3.267 L C L = X - 3 M R 
LCLMR = D3 MR   d2 
 
X 658 . 7

MR 
 MR  96  5.053
i X   i
 32 . 90
19 19 20 20
 3 * 5 . 053
UCLMR  D4 MR  3.267* 5.053  16.508 UCL  32 . 9   46 . 339
1 . 128
x

LCLMR  D3 MR  0 * 5.053  0 3 * 5 . 053
LCL  32 . 9   19 . 461
1 . 128
x
193
193
194
194

discussion only 97
Moving-average control chart

Standard Shewhart control charts are quite insensitive to small shifts.
A control chart using the moving average is a way to alleviate the
problem.
n  sample size
the means of first t samples are
X 1 , X 2 .......... X t 1 ,X t
w  moving average width ( w samples )

  
X t X t 1  ........ X t  w 1
M t 
w 195
195
Moving-average control chart
when t  w
 2
Var (M )  t
X
t
nw  i
CL  X M  i  1
t
t

UCL  X  3
nw CL  X
 
LCL  X  3
nw
UCL  X  3
nt

LCL  X  3
nt
196
196

discussion only 98

Moving-Average control chart
The amount of a coloring pigment in polypropylene plastic,

produced in batches, is a variable of interest. For 20 random samples
of size 5, the average amount of pigment (in kilograms) is shown in
Table. Construct a moving-average control chart of width 6. The
process has up to this point been in control with an average range R
of 0.40 kg.
20
 Xt
503.2
X = i=1 = = 25.16
20 20
S ince R = 0.40, an estim ate of the process standard deviation is
 R 0.40
σ= = = 0.172
d 2.326
2
197
197
Control Charts for Variable Type of Data: Moving Av. Example

Moving Average Control Limits for Mt
Sample Sample Average, Xt
Mt LCL UCL
1 25.0 25.0 24.929 25.391
2 25.4 25.2 24.997 25.323
3 25.2 25.2 25.037 25.293
4 25.0 25.15 25.045 25.275
?
5 25.2 25.16 25.057 25.263
6 24.9 25.21 25.066 25.254
7 25.0 25.12 25.066 25.254
8 25.4 25.12 25.066 25.254
9 24.9 25.07 25.066 25.254
10 25.2 25.10 25.066 25.254
11 25.0 25.07 25.066 25.254
12 25.7 25.20 25.066 25.254
13 25.0 25.20 25.066 25.254
14 25.1 25.15 25.066 25.254
15 25.0 25.17 25.066 25.254
16 24.9 25.12 25.066 25.254
17 25.0 25.12 25.066 25.254
18 25.1 25.02 25.066 25.254
19 25.4 25.08 25.066 25.254
20 25.8 25.20 25.066 25.254 198
198

discussion only 99

Sample Moving Control Limits for Mt
Sample
Average, Xt Average Mt LCL UCL
CL  X  503.2/20  25.16
1 25.0 25.0 24.929 25.391
R 0.40
2 25.4 25.2 24.997 25.323 σ   0.172
d 2 2.326
3 25.2 25.2 25.037 25.293 σ 0.172
UCL1  X  3  25.16  3 *  25.391
4 25.0 25.15 25.045 25.275 nt 5 *1
5 25.2 25.16 25.057 25.263 σ 0.172
LCL1  X  3  25.16  3 *  24.929
6 24.9 25.21 25.066 25.254 nt 5 *1
σ 0.172
7 25.0 25.12 25.066 25.254 UCL 2  X  3  25.16  3 *  25.323
nt 5* 2
8 25.4 25.12 25.066 25.254 σ 0.172
LCL 2  X  3  25.16  3 *  24.997
9 24.9 25.07 25.066 25.254 nt 5* 2
10 25.2 25.10 25.066 25.254
σ 0.172
11 25.0 25.07 25.066 25.254 UCL 5  X  3  25.16  3 *  25.263
nt 5*5
12 25.7 25.20 25.066 25.254 σ 0.172
LCL5  X  3  25.16  3 *  25.057
13 25.0 25.20 25.066 25.254 nt 5*5
14 25.1 25.15 25.066 25.254
σ 0.172
15 25.0 25.17 25.066 25.254 UCL 7  X  3  25.16  3 *  25.254
nw 5*6
16 24.9 25.12 25.066 25.254 σ 0.172
LCL72  X  3  25.16  3 *  25.066
17 25.0 25.12 25.066 25.254 nw 5*6
18 25.1 25.02 25.066 25.254
19 25.4 25.08 25.066 25.254
20 25.8 25.20 25.066 25.254 199
199
The moving average for sample 18 plots below the lower

control limit, indicating that the process mean has drifted
downward. Special causes should be investigated for this out-
of-control condition, and appropriate corrective action should
be taken.
200
200

discussion only 100
Control Charts for Attribute Type of Data
Control chart for attributes

Attribute: - Quality characteristic for which a numerical
value is not specified.
Taste, paint quality, SF, Quality of output,
Nonconformity (defect)
Nonconforming (defective)
Attribute - at all levels, cost effective
Variable - at lowest level
 rules are not used because distribution in attributes
charts are non-normal
201
201

p-Charts proportions of units nonconforming
• When observations can be placed into two categories
– Good or bad
– Pass or fail
– Operate or don’t operate
• When the data consists of multiple samples of several
observations each

discussion only 101

The p-Chart
• Assessment for item as defective or not?

• Sampling by attributes - If number of defective items from a
particular sample of series of samples are observed
• p-charts calculates the percent defective in sample
• They are used when observations can be placed in two categories
such as yes or no, good or bad, pass or fail etc.
• Larger samples are ordinarily used when sampling for

attributes than for variables.
(p-chart) Binomial Distribution

for BD:- validity the pnc=constant from sample to
sample and the sample must be independent.
n!
P( X  x)  p x (1  p ) n  x
(n  x)! x!
p  prob.of nonconforming
n  sample size
E(p̂)  p
p(1 - p)
var(p̂) 
n 204
204

discussion only 102
p chart: chart for proportion nonconforming
p-charts calculates the percent defective in sample. p-charts

are used when observations can be placed in two categories
such as yes or no, good or bad, pass or fail etc.
205
205

Centre line, upper, & lower control limit for p charts are calculated.
sum of defectives in all samples = centre line of p chart

p
total number of items in all samples
p (1  p ) (Upper control limit for p chart)

UCL  p  3
n
p (1  p) (Lower control limit for p chart)

LCL  p  3
n
Where n is the sample size. Sample size in p chart must be  50
Sometimes LCL in p chart becomes negative, in such cases LCL should be taken as 0 206
206

discussion only 103

Example
Data for defective CDs from 20 samples (sample size = 100) are shown in the
table below:
Sample No. No. of Proportion Sample No. No. of Proportion
Defective Defective = Defective Defective =
CDs = x x/sample size CDs = x x/sample size
1 4 .04 11 6 .06
2 3 .03 12 5 .05
3 3 .03 13 4 .04
4 5 .05 14 5 .05
5 6 .06 15 4 .04
6 5 .05 16 7 .07
7 2 .02 17 6 .06
8 3 .03 18 8 .08
9 5 .05 19 6 .06
10 6 .06 20 8 .08
p (1  p ) . 051 (1  . 051 )
UCL  p  3  0 . 051  3  . 12
sum of defectives 101
n 100
CL =   0 . 051
sum of allsamples 2000
p (1  p ) .051(1  .051)
LCL  p  3  0 .051  3   .02  0
n 100
207
207

P CHART
0.14
0.12
0.10
MEANP
0.08 UCLP
0.06 LCLP
P
0.04
0.02
0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
There is important observation that is clearly visible from the data points that
there is an increasing trend in the average proportion defectives beyond
sample number 15. Also, data show cyclic pattern. Process appears to be out
of control and also there is strong evidence that data are not from
independent source. 208
208

discussion only 104

The c-Chart
• Some cases - particular items being subjected to inspection may
have more than one defect, e.g., no. of scratches, cracks, etc.
• c-charts counts the number of defects in an item.
• c-charts are used only when the number of occurrence per unit of
measure can be counted.
Poisson distribution Assumptions
• The number of opportunities or potential locations for
nonconformities is very large
• The probability of nonconformity at any location is small and
constant
• The inspection procedure is same for each sample and is carried
out consistently from sample to sample

The c-Chart
• Some cases - particular items being subjected to inspection may
have more than one defect, e.g., no. of scratches, cracks, etc.
• c-charts counts the number of defects in an item.
• c-charts are used only when the number of occurrence per unit of
measure can be counted.
Centre line, upper, & lower control limit for c charts are calculated using
following formulae:
sum of defects in all samples = centre line of c chart

c
number of samples

discussion only 105
The c-Chart
UCL  c  3 c (Upper control limit for c chart)
(Lower control limit for c chart)

LCL  c  3 c

The c-Chart
Data for defects on TV set from 20 samples (sample size = 10) are shown in the
table below:
Sample No. of Sample No. of Sample No. of Sample No. of

No. Defects No. Defects No. Defects No. Defects
1 4 6 4 11 6 16 5
2 4 7 4 12 5 17 4
3 5 8 6 13 4 18 6
4 6 9 8 14 7 19 6
5 4 10 7 15 6 20 6
sum of defects 107

CL =   5.35
number of samples 20
UCL  c  3 c  5.35  3 5.35  12.289
LCL  c  3 c  5.35  3 5.35  1.589  0

discussion only 106

The c-Chart
14
12
10
Defects
4
2
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Cyclic trend !
213
np chart: chart for the number of nonconforming
np-charts calculates the number of defective in sample. np-

charts are used when observations can be placed in two
categories such as yes or no, good or bad, pass or fail etc.
It is easier to relate the number of defectives than to the

proportion defective. However, the np charts should not be
used when the sample size varies as the Centre line and the
control limits will vary.
214
214

discussion only 107

Centre line, upper, & lower control limit for np charts are calculated.
sum of defectives
np  = centre line of np chart
total number of samples
    (Upper control limit for np chart)

UCL  n p  3 n p 1  p 
 
    (Lower control limit for np chart)

LCL  n p  3 n p 1  p 
 
Where n is the sample size. Sample size in np chart must be  50
Sometimes LCL in np chart becomes negative, in such cases LCL should be taken as 0215
215

Example
Data for the number of defective products from 20 samples (sample size =
300) are shown in the table below:
Sample No. No. of Sample No. No. of

Defective Defective
1 10 11 6
2 12 12 19 sum of defectives 184
CL =   9 .2
Number of samples 20
3 8 13 10
4 9 14 8
5 6 15 7
6 11 16 4
7 13 17 11
8 10 18 10
9 8 19 6
10 9 20 7
9 . 2 (1  9 . 2
 
UCL  n p  3 n p (1  p )  9 . 2  3 )  18 . 159
300
LCL  n p  3 n p (1  p )  9 .2  3 9 .2 (1  9 .2
 
)  0 .241
300
216
216

discussion only 108

20
18
16
14
12
Defectives
10
8
6
4
2
0
-2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Sample data at S.N 12, is above the UCL. Efforts must be made to find the
special causes and revised limits are advised to calculate after deleting these
data.
217
217
Variable Sample Size:

100% inspection
Change in the rate of production may cause the sample size to change
Change in the unit cost of inspection
Change in the available inspection personnel
Control Limits for individual samples
p (1  p )
UCL  p  3
ni
Sample proportion nonconforming is p
p (1  p )
LCL  p  3 Sample Size = ni
ni
218
218

discussion only 109

219
219

220
220

discussion only 110

Control Limits based on Average sample Size
 n i
Ave. Sample Size n  i 1
p (1  p )
UCL  p  3
n
p (1  p )
LCL  p  3
n
221
221

Standardized CC
Sample proportion nonconform ing


Mean - E( p)  p
p(1  p)
SD - σ  ni – Size of ith sample
n

Same UCL and LCL

p
p p at 3 times SD
Z CL is at 0
p(1  p)/n i
222
222

discussion only 111

Standardized CC
223
223

Variable Sample Size: Standardized CC
224
224

discussion only 112

Standardized CC
225
225
u charts: Chart for number of nonconformity per unit
u-chart counts the number of defect per sample. The u chart is used when
it is not possible to have a sample size of a fixed size.
UCL and LCL will change with sample size but CL remains constant
226
226

discussion only 113

Variable Sample Size
Centre line, upper, & lower control limit for u charts are calculated.
k
sum of defects in all samples c i
u =
i 1
k = center line of u chart
total number of items in all samples n i
i 1
ci =number of nonconformities (defects) in ith sample

k or g = number of samples
ni = size of ith samples
u
UCL  u  3 (Upper control limit for u chart)
ni
u (Lower control limit for uc chart)

LCL  u  3
ni
227
227
Example
Data for defects in a product from 20 samples are shown in the table below.
The number of products varies from sample to sample. Construct a control
for number of defects per 100 products.
Sample No. of No. of Sample No. of No. of Sample No. of No. of

No. products Defects No. products Defects No. products Defects
Inspected inspected inspected
per unit
1 200 5 8 150 10 15 100 6
2 300 14 9 150 6 16 200 8
3 250 8 10 250 10 17 200 5
4 150 8 11 300 9 18 100 5
5 250 12 12 250 16 19 300 14
6 100 6 13 200 12 20 200 8
7 200 20 14 250 10 TOTAL 4100 or 41 192
1 unit = 100
4.68

k
UCL1  4.68  3  9.27
2
ci
 192 u
u i 1
k

41
 4.68 UCL  u  3
n i 4.68 ni
i 1
LCL1  4.68  3  0.092
2 228
228

discussion only 114
S No. Sample size No. of UCL* LCL* S No. Sample size No. of UCL* LCL*
ni Defects per ni Defects per
100 product 100 product
1 2.0 2.50 9.274 0.092 11 3.0 3.00 8.4 0.9
2 3.0 4.67 8.431 0.935 12 2.5 6.40 8.8 0.6
3 2.5 3.20 8.789 0.577 13 2.0 6.00 9.3 0.1
4 1.5 5.33 10.0 0.0 14 2.5 4.00 8.8 0.6
5 2.5 4.80 8.8 0.6 15 1.0 6.00 11.2 0.0
6 1.0 6.00 11.2 0.0 16 2.0 4.00 9.3 0.1
7 2.0 10.00 9.3 0.1 17 2.0 2.50 9.3 0.1
8 1.5 6.67 10.0 0.0 18 1.0 5.00 11.2 0.0
9 1.5 4.00 10.0 0.0 19 3.0 4.67 8.4 0.9
10 2.5 4.00 8.8 0.6 20 2.0 4.00 9.3 0.1
*UCL & LCL – Values rounded off
12
10
6
Defects
-2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
229
229
CHART FOR DEMERITS PER UNIT (U-CHART)
• c and u charts do not differentiate with the types of

nonconformity
• There is a need to have a system that assigns weights to
nonconformities according to their relative degree of
severity.
• Charts for demerits per unit (U chart) takes care of the
deficiency of the c and u charts.
230
230

discussion only 115

ANSI/ASQC standard A3 (1978)
Class 1 defects- very serious.
Defects that lead directly to severe injury or to catastrophic economic loss.
Class 2 defects- serious.

Defects that lead to significant injury or significant economic loss.
Class 3 defects- major.

Defect that can cause major problems with normal use of a product or service
rendered.
Class 4 defects- minor
Defect that can cause minor problems with normal use of a product or service
rendered.
231
231
ANSI/ASQC standard,
Weight system of 100, 50, 10 and 1 could, for example, be chosen for
the categories of very serious, serious, major and minor, respectively.
232
232

discussion only 116

Suppose we have four categories of nonconformities. Let the
sample size be ‘n’ and let c1, c2, c3 and c4 denote the total number
of nonconformities in a sample for four categories. Let w1, w2,
w3, and w4 denote the weights assigned to each category.
It is assumed that nonconformities in each category are
independent of defects in the other categories. Furthermore, it is
also assumed that the occurrence on nonconformities in any
category is represented by a Poisson distribution.
233
233
For a sample of size ‘n’, the total number of demerits is given
by
D = w 1c 1 + w 2c 2 + w 3c 3+ w 4c 4 (1)
The demerits per unit for the sample are given by
(2)
234
234

discussion only 117
The centre line of the U-chart is given by
(3)
Where, represent the average number of
nonconformities per unit in their respective classes.
235
235
The estimated standard deviation of U is given by
(4)
The control limits for the U-chart are given by
(5)
If the lower control limit is calculated to be less than zero, it is converted to zero.
236
236

discussion only 118
Example:
Customer Survey
Twenty random samples, each involving 10 customers (Sample
size), are taken in which customers are asked about the number of
serious, major, and minor nonconformities that they have
experienced. Clear definitions of each category are provided. The
weights assigned to a serious, major, and minor nonconformity
are 50, 10, and 1, respectively. Construct a control chart for the
number of demerits per unit.
237
237
Table: Data for nonconformities in a department store customer survey

Serious Major Minor Total Demerits per
Sample Nonconformities Nonconformities Nonconformities Demerits unit
c1 c2 c3 D U
1 1 4 2 92 9.2
2 0 3 8 38 3.8
3 0 5 10 60 6.0
4 1 2 5 75 7.5
5 0 6 2 62 6.2
6 0 0 8 8 0.8
7 0 7 5 75 7.5
8 1 1 1 61 6.1
9 1 3 2 82 8.2
10 0 4 12 52 5.2
11 1 5 3 103 10.3
12 2 0 2 102 10.2
13 0 0 9 9 0.9
14 0 6 8 68 6.8
15 1 12 10 180 18.0
16 0 5 7 57 5.7
17 0 1 1 11 1.1
18 1 2 5 75 7.5
19 0 5 6 56 5.6
20 0 3 8 38 3.8
Total 9 74 114 238
238

discussion only 119
Solution:
To find the center line Ū, the average number of nonconformities per
unit for each category is calculated.
For “Serious” nonconformities
74
u2   0.37
Similarly,
200
114
u3   0.57
200 239
239
Using eq. (3), the center line of the U-chart is
The estimated standard deviation of U, using eq. (4) is
(.045)
Hence, the control limits (from eq. (5)) are
L
240
240

discussion only 120

UCL= 18.142
CL= 6.52
LCL= 0
Figure U-chart for department store customer survey.
Note: Figure shows (U-chart) all the point within the control limits
241
241

Three Aspects of Quality
QUALITY
QUALITY
OF
CONFORMANCE
QUALITY QUALITY
OF OF
DESIGN PERFORMANCE

discussion only 121
PROCESS CAPABILITY
Common Questions for Investigating an

Out-of-Control Process
• Are there differences in the measurement accuracy of instruments /

methods used?
• Are there differences in the methods used by different personnel?
• Is the process affected by the environment, e.g. temperature/humidity?
• Has there been a significant change in the environment?
–244
244

discussion only 122

• Is the process affected by predictable conditions such as tool wear?

• Were any untrained personnel involved in the process at the time?
• Has there been a change in the source for input to the process such as
a new supplier or information?
• Is the process affected by employee fatigue?
–245
245

• Has there been a change in policies or procedures such as maintenance

procedures?
• Is the process frequently adjusted?
• Did the samples come from different parts of the process? Shifts?
Individuals?
• Are employees afraid to report “bad news”?
–246
246

discussion only 123
Estimating Sigma
The Control Chart Method for Variables Data
1. Construct the control chart and remove all

special causes.
NOTE: special causes are “special” only in that

they come and go, not because their impact is
either “good” or “bad”.
–247
247
Estimating Sigma
The Control Chart Method for Variables Data
2. Estimate the standard deviation. The approach used

depends on whether a R or S chart is used to monitor
process variability.
^ _ ^ _
 = R / d2  = S / c4
–248
248

discussion only 124
Process Capability
What it is
• Capability is a process which gives a set of

indexes which tell us how capable we are in
meeting customer specifications, in the
short term and in the long term.
–249
249
Process Capability
What it is
• A simple view of Process Control and Process Capability
• Process control - refers only to the “voice of the process” –

looking at the process using an agreed performance
measure to see whether the process forms a stable
distribution over time.
–250
250

discussion only 125
Process Capability
Process Control
Process Control
Note - no reference to
specs !
In Control
(Special Causes Eliminated)
Out of Control
(Special Causes Present)
–251
251
Process Capability
What it is
A simple view of Process Control and Process Capability
Process capability - measures the “goodness of a process” -

comparing the voice of the process with the “voice of the
customer”. The voice of the customer here is the specification
range (tolerance) and/or the nearest customer specification
limit.
–252
252

discussion only 126
Process Capability
Process Capability
Process Capability
In Control and Capable

(Variation from Common
Lower Spec Limit Causes Reduced)
Upper Spec Limit
In Control but not Capable

(Variation from Common Causes
Excessive)
–253
253
Process Capability
Why Processes Fail?
Process variation (spread) is too large

 Process average is not properly centered
 Process average is not properly centered and
Process Variation is too large
–254
254

discussion only 127
Process Capability
Objective ?
• The objective is to get as close to the theoretical best

that your process can achieve by eliminating special
causes of variation,
• so that only common (natural) causes are acting on the

process, and then to reduce these to a minimum,
whenever possible.
–255
255
Process Capability
Measurement
– We are often required to compare the output of a

stable process with the process specifications and
make a statement about how well the process meets
specification.
–To do this we compare the natural variability of a

stable process with the process specification limits.
–256
256

discussion only 128
Process Capability
– Assume that a process involves a quality characteristic

that follows a normal distribution with mean , and
standard deviation, . The upper and lower natural
tolerance limits of the process are
– UNTL =  + 3
– LNTL =  - 3
Actual Process Spread = UNTL – LNTL
Allowable Process Spread = USL - LSL
–257
257
Process Capability
Measurement
– A capable process is one where almost all the
measurements fall inside the specification limits. This can
be represented pictorially by the plot below:
Actual Process Spread < Allowable Process Spread

–258
258

discussion only 129
Process Capability
Example
Q. Find NTL. Comment on adjusting process mean.
Ans. Given – QC = Dimension, Specification = 5±0.015 cm, Mean
= 4.99cm, SD 0.004cm
UNTL = 4.99+3(0.004) = 5.002, LNTL = 4.978

Expected value of QC should lie between 4.978 to 5.002
Z = (LSL – Xbar)/SD = (4.985-4.99)/0.004 = -1.25
Area under LSL = 0.1056
Adjust Process mean = YES
LSL = 4.985
UNTL = 5.002
0.1056
LNTL = 4.978 µ= 4.99 USL = 5.015

259
Process Capability
Lower Upper
Specification Specification Actual Process Spread =
Allowable Process Spread
A. Process variability
matches specifications
Lower Upper
Specification Specification
Actual Process Spread <

B. Process variability
well within specifications Lower Upper
Specification Specification
Actual Process Spread >

C. Process variability
exceeds specifications
–260
260

discussion only 130
Process Capability
Process Capability for Bilateral Specification
A process producing a characteristic with a bilateral

specification meets the minimum requirement of
capability when it is stable, and has no more than
0.135 percent of its output for this characteristic
outside either specification limit.
LS L U S L
0 .1 3 5 % 0 .1 3 5 %
0 5 10 15 20
–261
261
Process Capability
Process Capability for Unilateral Specification
A process producing a characteristic with a unilateral

specification meets the minimum requirement of
capability when it is stable, and has no more than
0.135 percent of its output for this characteristic
outside the single specification limit.
L S L
0 .1 3 5 % 9 9 .8 6 5 %
0 5 10 15 20
–262
262

discussion only 131
Process Capability Indices

1 2
CAPABILITY PERFORMANCE
Short Term Long Term
In Control Not in Control
Pooled std dev Total / overall std dev
compares
How spec range
a much (tolerance) Cp Pp
variability to process
width
how close
process
How
b
centred
centre is to
nearest
Cpk Ppk
spec limit
Cp or ENTITLEMENT is the theoretical best

that a process can achieve.
–263
263
Explaining the Terms

1 2
compares
How spec range
width
how close long term
process
How
b
centred
centre is to Cpk Ppk
nearest
spec limit
600
550
500
450
400
350
300
Time
short term
–264
264

discussion only 132

1 2
compares
How spec range
width
how close
process
How
b
centred
nearest
spec limit
LSL USL
Cp, Pp compares specification range (tolerance) to process

width regardless of where the process is centred.
–265
265
Process Capability
Cp, Pp compares specification range (tolerance) to process
width regardless of where the process is centred.
It is the ratio of the specification width to

6 x process standard deviation.
Cp (Process Capability Index) = USL-LSL
6sP
Pp (Process Performance Index) = USL-LSL
6sT
sP = pooled standard deviation sT = total standard deviation
Pooled SD is the SD remaining after removing the effect of errors (special
causes). –266

discussion only 133

1 2
compares
How
X
spec range
width
how close
process
How
b
centred
nearest
spec limit
LSL USL
Cpk, Ppk measure how close the process centre is to the nearest
customer spec.
–267
267
Process Capability
PPL = X-USL
CPL= X-LSL 3sT
3sP
CPU = USL-X PPU = USL- X

3sP 3sT
Cpk = min {CPL, CPU} Ppk = min {PPL, PPU}
–268
268

discussion only 134
Example
Humidity level in the foundry shop is expected to be

between 60% and 80%. Random samples taken yield
the following results:
60, 75, 70, 85, 60, 65,76,80, 70, 75
Average of the above ten values: 71.6,
SD = 8.24
–269
269
Example
USL  LSL 80  60
Cp    0.40 It is required Cp and Cpk
6 6(8.24)
to be at least 1.0, so this is

x  LSL 71.6  60 not a good process. If

CPL    0.47 possible, reduce the
3 3(8.24)
variability or/and center

the process.
USL x 80 71.6
CPU  0.34
3 3(8.24)
C  min(CPL, CPU)  min(0.47,0.34)  0.34

pk
–270
270

discussion only 135
Process Capability
Relationship
The Cpk can also be expressed as Cpk = Cp(1-k), where k
is a scaled distance between the midpoint of the
specification range – TARGET VALUE (m), and the
process mean, µ
Cpk = Cp(1-k) Cpk≤ Cp
–271
271
Process Capability
Example
Q. Find Cp and Cpk. Comment on process mean?
Given – QC = Dimension, USL = 5.015, LSL = 4.985,
Mean = 4.99cm, SD = 0.004cm
Ans: Cp = (USL-LSL)/6SD = (5.015-4.985)/(6*0.004) = 1.25
Cp is greater than 1
Cpk = min [CPL, CPU] = min[(USL-X/3SD, (X-LSL)/3SD]
= min[((5.015-4.99)/(3*0.004)),((4.99-4.985)/(3*0.004))
= min[2.0833, 0.4166] = 0.4166 Cpk is less than 1
Adjust Process mean = YES
LSL = 4.985
UNTL = 5.002
0.1056
LNTL = 4.978 µ= 4.99 272

USL = 5.015

discussion only 136
Process Capability
k = I (5-4.99) I / ((5.015-4.985)/2) = .66666667

Cpk = Cp(1-k) = 1.25(1-0.666667) = 0.416666
Cpk = Cp(1-k) Cpk≤ Cp
–273
273
Example
For a certain process the USL = 18 and the LSL = 6.

The observed process average, = 14, and the standard deviation, s = 2.
USL  LSL 18  6
Cp    1 .0
6 6( 2)
This means that the process is capable as long as it is located

at the midpoint, m = (USL + LSL)/2 = 12.
–274
274

discussion only 137
Example
But it doesn't, since = 14. The k factor is found by

m  x
2
k    0 . 333
( USL  LSL ) / 2 6
C PK  C P (1  k )  0 . 667
It is required to have Cpk at least 1.0, so this is not a good

process. If possible, reduce the variability or/and center the
process.
–275
275
Process Capability Index
–276
276

discussion only 138
Process Capability Index
–277
277
Translating capability into "rejects"
USL - LSL 6 8 10  12 
Cp 1.00 1.33 1.66 2.00
Rejects 2700 ppm 64 ppm 0.6 ppm 0.002ppm
% of spec used 100 75 60 50
–278
278

discussion only 139
–279
279
A process with Cpk of 2.0 (+/- 6 sigma capability) can be expected to have no
more than 0.002 nonconforming parts per million –280
280

discussion only 140
Process Capability
use as a rule of thumb the following chart
Cp Cpk Pp Ppk
Red (Bad) < 1.00 < 1.00 < 1.33 < 1.33
Yellow (OK) 1.00 - 1.33 1.00 - 1.33 1.33 - 1.67 1.33 - 1.67
Green (Good) > 1.33 > 1.33 > 1.67 > 1.67
–281
281
Process Capability
How it helps
• A Process Capability study is the end result of the

analysis done on process output data.
• A Process Capability study reflects what our customer

sees.
• It indicates what our short term and long term situation

looks like.
–282
282

discussion only 141
Process Capability
How it helps
• Recognise however that our processes need to be stable

(in statistical control) as well as capable.
• Before anything, we must have faith in our

measurements, hence the need for a measurement
system analysis.
–283
283
Process Capability
Major uses of data from a process capability analysis
1. Predicting how well the process will hold the

tolerances.
2. Assisting product developers/designers in selecting
or modifying a process.
3. Assisting in Establishing an interval between
sampling for process monitoring.
–284

discussion only 142
Process Capability
Major uses of data from a process capability analysis
4. Specifying performance requirements for new

equipment.
5. Selecting between competing vendors.
6. Planning the sequence of production processes when
there is an interactive effect of processes on
tolerances
7. Reducing the variability in a manufacturing process.
–285
Process Capability
–Setting Tolerances on Assemblies and Components

Assumption
–The process making assemblies and components are barely capable
–i.e. 6σ = USL – LSL
–or Cp = 1
–286
286

discussion only 143
Process Capability
Y = X1 + X2 + X3 +X4
Y = X1 – X2
–287
287
Process Capability
In general (LC)
Y = a1X1+a2X2+…..+akXk
k
= a x
i1
i i
–Xi (component dimension) & Y (assembly dimension) are random variables

–Xi → with mean µi and SD σi
k k
If component dimension are independent Vari (y) = 2 =  ai2 var  x i  =  a 2 2
k y i i
a 
i1 i 1
Mean of Y--- y = i i
i 1
i = mean of Xi (variable)
ai = constant.
–288
288

discussion only 144
Process Capability
K = 4, a1------a4 = 1
Y = X1 + X2 + X3 +X4
 y  1   2  3   4
 y   12   2 2   3 2   4 2
NT onY  y  3 y
Y = X1 – X2
 y  1   2
 y   12   2 2
NT onY  y  3 y
–289
289
Process Capability
Components Mean Length Tolerances
A 2 2±0.3
B 5 5±0.2
C 6 6±0.2
D 7 7±0.1
–Design specifications of assembly length are 20±0.3

–Find the NTL for the assembly length.
–Comp. A σ1 = (2.3-1.7)/ 6 = 0.1 µ1 = 2

– B σ2 = (5.2-4.8)/ 6 = 0.067 µ2 = 5
– C σ3 = 0.067 µ3 = 6
– D σ4 = 0.033 µ4 = 7
–290
290

discussion only 145
Process Capability
–Comp. A σ1 = (2.3-1.7)/ 6 = 0.1 µ1 = 2
– B σ2 = (5.2-4.8)/ 6 = 0.067 µ2 = 5
– C σ3 = 0.067 µ3 = 6
– D σ4 = 0.033 µ4 = 7
    
y 1 2 3 4 NT onY  y  3 y
 2  5  6  7  20 20  3(0.142)  (19.574,20.426)
      
2 2 2 2
y 1 2 3 4
  0.1  0.067  0.067  0.033

y
2 2 2 2
  0.142
y
–291
291
Process Capability
ZUSL = (20.3 – 20)/ 0.142 = 2.11

USL =.0174 
ZLSL = (19.7 – 20)/ 0.142 = -2.11   Total Area =.0348 = 3.48%
LSL =.0174 
–292
292

discussion only 146
Process Capability
Components Mean Length Tolerance on Individual Components.
A 2
–Design specifications of assembly length are
B 5
20±0.3
C 6 –Find the NTL for all the components
D 7
  0.05
 y  1  2  3  4 A  2  3x0.05
20.3  19.7 B  5  3x0.05
y   0.1
6 C  6  3x0.05
 y 2   12   2 2   32   4 2  0.01 D  7  3x0.05
assuming equal distribution of
varianceon all components
A = (1.85, 2.15)
 y 2  4 2 B = (4.85, 5.15)
 y 2 .01 C = (5.85, 6.15)
 
2
  0.0025 D = (6.85, 7.15)
4 4 –293
293
Thanks!!!

discussion only 147

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MIN-310 Quality Management (Dvivedi - 17-02-2019

For limited Circulation)

INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

Instructor – Dr. Akshay Dvivedi

aterial is for classroom discussion and teachingThis

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• Before IR (1750-1850) began, people produced goods in their

• Left homes to work in a place built for industry

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The Plight of the Workers

• There were far more workers than positions

Factory Act of 1833

• Required inspections of factories

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Standardization and Specialization !!!

Quality and Quality Control

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1. Better quality requires higher cost.

2. Quality is innately perceived as separating good from bad.

3. Increased quality can be achieved through investment in

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• Inspect operators work – Decide (Accept/Reject?)

• 1920’s - statistical theory in QC

• Shewhart’s work was later developed by Deming ----- SPC

• Late 1940’s – Minimalistic use of SPC in manufacturing

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Responsibility Towards Quality

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Quality and Quality Control

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• Understanding that definitions and dimensions of quality exist allows

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• HP embarked on a “customer one-on-one” program that emphasized

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Quality and Quality Control