Total Quality Management

Statistical Concepts in Quality Management

Module 6

Statistical Concepts in Quality Management

Learning Outcomes:

At the end of this module, the students are expected to:

1. Define variation.
2. Identify the two types of variation.
3. Differentiate the categories of quality control measurement.

“If you can’t measure it, you don’t understand it.”

Lord Kelvin

Introduction

The quality control function that is now referred to as total quality management (TQM)
emphasizes the strategic importance of quality to the whole organization and not just the factory
floor. TQM involves a never ending process of continuous improvement with the objective of
achieving perfection. The two main approaches to quality control are:

(1) Acceptance sampling

(2) Statistical process control

Bird’s-eye view:

Common and special causes are the two distinct origins of variation in a process, as defined in the
statistical thinking and methods of Walter A. Shewhart and W. Edwards Deming

Variation

Variation is the enemy of quality. The less variation there is in a product or process, the
greater the number of items that will work as designed. One must measure variation to reduce it.
The concept of variation states that no two items will be perfectly identical even if extreme care
is taken to make them identical in some respect. All processes are subject to a certain degree of
variability. Usually, variations are of two types:
a. Natural (common)

b. Assignable (special)

These variations are caused by two types of factors.

 Natural variations are due to “common causes” and assignable variations are
due to “special causes.”
 Common cause variation is natural and exists in every process.
o It can be reduced by process improvement activities, but not eliminated.
o In other words, it is the variation that is inherent in a process that
is operating as designed.
 Special cause variation, on the other hand, is an unnatural variation in a process.
It should be identified, and the reasons may be assigned and addressed.
o Control charts enable us to determine the type of variation that exists in a
process.

Variation Due to Natural Causes

The variations due to natural causes are inevitable in any process or product. They are
difficult to trace and difficult to control even under best conditions.
 These variations maybe due to some inherent characteristics of the process which
functions at random.

Variation Due to Assignable Causes

These variations possess greater magnitude as compared to those caused by chance and
can be easily traced or detected. The variations due to assignable causes may occur because of
the following factors:
1. Differences among materials
2. Differences among machines
3. Differences among workers
 4. Differences in each of these factors over time
5. Differences in their relationship to one another

These variations may also be caused due to changes in working conditions, human errors, lack of
knowledge about quality, etc.

Statistical Process Control (SPC)

SPC is the application of statistical methods to the measurement and analysis of variation
in any process. It is used to measure the performance of a process and thereby ensure that the
process is meeting the specified standards. It is a methodology for monitoring a process
to identify special causes of variation and signaling the need to take corrective action
when appropriate. The process is deemed to be out of control when special causes are
present and responsible for the situation. If the variation in the process is due to common causes
alone, then the process is said to be under statistical control. A practical definition of statistical
control is that both the process averages and variances are constant over time.

SPC relies on control charts, one of the basic quality improvement tools, which will be
discussed under the seven statistical tools.

Bird’s-eye view:

Statistical process control (SPC) is a method of quality control which

uses statistical methods.

Bird’s-eye view:

SPC is applied in order to monitor and control a process. Monitoring

and controlling the process ensures that it operates at its full potential.
Quality Control Measurements
Quality control measurements and indicators fall into one of the following two categories:
1. Attribute
2. Variable

A useful thumb rule would be to say that data obtained by counting are attributes (discrete
data), while data obtained by actual measurement are variables (continuous).

Bird’s-eye view:

Both variable data and attribute data measure the state of an object or a
process, but the kind of information that each describes differs.

Attribute (discrete data)

An attribute is a performance characteristic that is either present or absent in the product
or service under consideration. Attributes data are discrete and indicate whether the
characteristics confirm to specifications. Attributes can be measured by visual inspection or by
comparing dimensions to specifications. Attributes measurements are typically expressed as
proportions or rates. In this system, each item is classified into one of the two categories such as
acceptable or defective, good or bad, conforming or not conforming, etc.

Examples of attributes are:

 Surface finish of furniture
 The number of defective pieces found in a sample
 Cracks in sheets by spot welds

Variable (continuous data):

Variable measurements are concerned with the degree of conformance to specifications.
Variable measurements are generally expressed through such statistics as averages and standard
deviations.
Examples of variables are:
 A dimension of a part measured
 Temperature in degree centigrade
  Weight of a part in kg
 Tensile/compressive strength in kg/cm2

Bird’s-eye view:

Variable data involve numbers measured on a continuous scale, while

attribute data involve characteristics or other information that you can’t
quantify.

It is usually easier to collect attribute data than variable data because the assessment can
be done quickly by a simple inspection or count.
 Variable data require the use of some type of measuring instrument. In a statistical sense,
attributes inspection is less efficient than variables inspection; that is, it does not yield as
much information.
o This means that attributes inspection requires a larger sample than variables
inspection to obtain the same amount of statistical information pertinent to
the quality of the product.
o This difference can become significant when inspection of each item is
time consuming or expensive. Most quality characteristics in services are
attributes.