Birla Institute of Technology & Science, Pilani

Work Integrated Learning Programmes Division

Statistical Quality Control (SQC)
Digital Learning Handout

Course Title Statistical Quality Control (SQC)

Course No(s) MBA ZG531/ QM ZG531
Credit Units
Credit Model
Instructor-In-Charge Varinder Singh
Version Number
Date

Course Objectives:
 Understand the philosophy and basic concepts of quality improvement
 Demonstrating a comprehensive understanding on the commonly used statistical methods by industry for
quality control and improvement.
 Understand the assumptions, theoretical foundations and basic business and economic principles of
process monitoring.
 Implement and operate valid SQC tools for different quality control/monitoring scenarios.
 To develop basic understating on prevention, detection and analyzing of errors in the quality control
process to take corrective actions accordingly.
 To introduce a variety of techniques commonly used in industries to understand variation,
improve product quality, and reduce costs using statistical software’s.

Text Book(s):
T1 Introduction to Statistical Quality Control By DOUGLAS C. MONTGOMERY, Sixth
Edition 2009 by John Wiley & Sons, Inc

Reference Book(s) & other resources:

R1 John S. Oakland and Roy F. Followell, Statistical Process Control A Practical Guide,
Butterworth-Heinemann An imprint of Elsevier Science., 2007 Edition.
R2 Grant & Leavenworth, Statistical Quality Control, TMH, 7th Ed., New Delhi.
R3 A Zaida, Statistical Process Control Concepts, Methodologies & Tools, PHI, New Delhi.
R4 Senthil and Paul,Total Quality Management, Scitech Publication, 2nd edition.

LEARNING OUTCOMES
 LO1 Students will able to use the methods of statistical process control under different quality
control/monitoring scenarios.

LO2 Students will able to design, use, and interpret control charts for variables and attributes.

LO3 Students will able to perform the analysis of process capability and measurement system
capability through control charts and evaluate simple acceptance sampling plans.

LO4 Students will learn how to manage random variation & out of control process.

LO5 Students will able to apply control charts and experimental design techniques to solve
real-life quality control problems. Students will also learn to apply the methods of SPC
using Software Packages to monitor and control quality.

LO6 Students will able to learn the statistical and economical design issues associated with
the monitoring tools.

Experiential Learning Components:

1. Lab work: Operations Management Simulation: Quality Analytics

2. Project work: None.
3. Case study: None.
4. Work integrated Learning Exercise: None.
5. Design work/Field work: None.

Lab-Description
In this single-player simulation, students learn how to manage quality in service, health care, and
manufacturing settings through the use of analytics related to statistical process control, process
capability, and the cost of quality. Students play four different challenges that ask them to calculate
control limits, use control limits in real time to maintain control of a process, analyze control charts post
hoc to determine whether a process is capable, and make managerial investments in preventive measures
that contribute to the cost of quality in order to minimize the total cost of quality.

No Learning Outcomes of Lab

LO1 A review of essential calculations in SPC, including control limits and process capability
index
LO2 How to use statistical process control in real time to make go/no go decisions about a
process
LO3 The difference between a process that is in control and a process that is capable, through
post hoc analysis of a control chart 
LO4 The relationship between Internal Failure Costs, External Failure Costs, Appraisal Costs
and Prevention Costs and how they contribute to the total cost of quality.

Content Structure:

Contact Hour List of Topic Title Sub-Topics Reference

 Introduction to SQC T1-Ch.1 &
Introduction to SQC Lecture Slides
1-2  Quality Philosophy
 Quality cost
 DMAIC T1-Ch. 2 &
DMAIC Process Lecture Slides
3-4  Six Sigma, TQM
 Introduction To 7 QC Tools
 Probability Variation T1-Ch. 3 &
Modelling Process Lecture Slides
5-6  Discrete Distribution
Quality
 Continuous Distribution
 Statistical Inferencing And T1-Ch.4 &
Interference about Sampling Distribution Lecture Slides
7-8
Process Quality  Hypothesis Testing
 Parameter Estimation Method
Methods & Philosophy  Statistical basis of control charts T1-Ch.5 &
9-10 of Statistical Process  Usage of out of control action plan Lecture Slides
Control  Analysis of patters on control charts
 Control charts for variables T1-Ch.6 &
Control Charts for Lecture Slides
11-12  X bar and R chart
Variables
 X bar and S chart
 Control charts for attributes T1-Ch. 7 &
Control Charts for  Control chart for defects Lecture Slides
13-14
Attributes  choice between attributes and
variables control chart
 Process and measurement system T1-Ch. 8 &
capability analysis Lecture Slides
 process capability analysis using a
histogram or a prob plot
 process capability ratios
Process and
 process capability analysis using
measurement system
15-16 control chart
capability analysis
 process capability analysis using
designed experiment
 gauge and measurement system
capability studies
 estimating natural tolerance
limits of a process
  Review of session 1 to 8 T1-Ch. 1-8 &
17-18 Review Session
Lecture Slides
 Cumulative sum and exponentially T1-Ch. 10 &
weighted moving average control Lecture Slides
Univariate Statistical
charts
Process Monitoring  The cumulative sum control chart
19-20
and Control  Exponentially weighted moving
Techniques average control chart
 Moving average control chart
 Other Statistical process monitoring T1-Ch. 11 &
and control techniques Lecture Slides
 Statistical process control for short
production runs
 Modified and acceptance Control
Multivariate Process Charts
21-22 Monitoring And  Control charts for multiple stream
Control process
 SPC with auto-correlated process
data
 Adaptive sampling procedures
 Economic design of control
charts
 Multivariate process monitoring T1-Ch. 12 &
and control Lecture Slides
 Description of multivariate data
Engineering Process  Hotelling T square chart
23-24
Control And SPC  EWMA chart
 Regression adjustment control chart
for monitoring variability
 Latent structure methods
 Engineering process control and T1-Ch. 13 &
Factorial And Lecture Slides
SQC
Fractional Factorial
 Process monitoring and process
25-26 Experiments For
regulation
Process Design And
 Process control by feedback
Improvement
 Combining SPC and EPC
Process Optimization  Process Design and Improvement T1-Ch. 14 &
27-28 With Designed Lecture Slides
Experiments
 Process optimization with designed T1-Ch. 15 &
Lot-By-Lot experiments Lecture Slides
29-30 Acceptance  Response surface methods and
Sampling For Attributes design
 process robustness studies
 Lot-by-lot acceptance sampling T1-Ch. 16 &
Other Acceptance- Lecture Slides
31-32 single sampling plan for attribute
Sampling Techniques
 Double, multiple and sequential
 sampling plan
 Dodge-Romig sampling
acceptance sampling plan

Project Activity/ Experiential Lab:

Sr No Lab Details Access URL
1 Students are expected to register to the mentioned portal for http://www.hbsp.harvar
accessing the laboratory component. The registration should d.edu/
be done using your BITS mail-id.
The students can take online lab after 14 contact hours.

Evaluation Scheme:
Legend: EC = Evaluation Component; AN = After Noon Session; FN = Fore Noon Session
Evaluation Name Type (Open Weight Duration Day, Date, Session, Time
Component (Quiz, Lab, Project, Mid- book,
term exam, End semester Closed
exam, etc.) book,
Online, etc.)
EC - 1 Quiz-I Online 5% September 10-20, 2020

Quiz-II Online 5% October 20-30, 2020

Quiz-III Online 5% November 10-20, 2020

Lab Online 10% TBA
EC - 2 Mid-Semester Test Closed Book 30% 2 hours Saturday, 10/10/2020
(AN)
2 PM – 4 PM
EC - 3 Comprehensive Exam Open Book 45% 3 hours Saturday, 28/11/2020
(AN)
2 PM – 5 PM

Syllabus for Mid-Semester Test (Closed Book): Topics in Contact Hours: 1 to 16

Syllabus for Comprehensive Exam (Open Book): All topics
Important links and information:
Elearn portal: https://elearn.bits-pilani.ac.in
Students are expected to visit the Elearn portal on a regular basis and stay up to date with the
latest announcements and deadlines.
Contact sessions: Students should attend the online lectures as per the schedule provided on the
Elearn portal.
Evaluation Guidelines:
1. EC-1 consists of either two Assignments or three Quizzes. Students will attempt them
through the course pages on the Elearn portal. Announcements will be made on the
 portal, in a timely manner.
2. For Closed Book tests: No books or reference material of any kind will be permitted.
3. For Open Book exams: Use of books and any printed / written reference material (filed or
bound) is permitted. However, loose sheets of paper will not be allowed. Use of
calculators is permitted in all exams. Laptops/Mobiles of any kind are not allowed.
Exchange of any material is not allowed.
4. If a student is unable to appear for the Regular Test/Exam due to genuine exigencies, the
student should follow the procedure to apply for the Make-Up Test/Exam which will be
made available on the Elearn portal. The Make-Up Test/Exam will be conducted only at
selected exam centres on the dates to be announced later.
It shall be the responsibility of the individual student to be regular in maintaining the self-study
schedule as given in the course handout, attend the online lectures, and take all the prescribed
evaluation components such as Assignment/Quiz, Mid-Semester Test and Comprehensive Exam
according to the evaluation scheme provided in the handout.

Instructor-in-charge

(MBA ZG531/ QM ZG531)