McGraw-Hill/Irwin

Copyright 2017 by McGraw-Hill Education. All rights reserved.

STATISTICAL PROCESS CONTROL (SPC)

(CONT’D)

Chapter 10

Today’s Objectives
¨ Process Capability
¤What is it? How do we measure?
¨ Statistical Process Control

¤Control Charts
nattribute charts : p and c-charts
nvariable charts : x-bar and r-charts
¨ Acceptance Sampling

10- 2

Process Capability
¨ The ability of a process to consistently produce
a good or deliver a service with a low
probability of generating a defect
¨ Specification limits – range of variation that is
considered acceptable by the designer or
customer
¨ Process limits – range of variation that a
process is able to maintain with a high degree
of certainty
10- 3

1
Variation in Processes

Assignable variation is Example: A poorly trained

caused by factors that
can be clearly
identified and possibly
managed
employee that creates
variation in finished product
output.

Common variation is Example: A molding

inherent in the process that always leaves
production process “burrs” or flaws on a
molded item.

10- 4

Process Capability Example

¨ Suppose that we are in the business of producing
Engine Pistons for car engines
¨ One of the quality characteristics of a certain kind
of Pistons we produce is that its diameter should be
100mm = Target Value

10- 5

Process Capability
¨ Inorder for the pistons to work perfectly with the
Engine Block, the diameter of the Pistons should be
within certain Tolerance Limits (Specification Limits)
of 94mm to 106mm, ideally being 100mm
¨ That is, Diameter should be 100 +/- 6mm
¤If Piston Diameter less than 94 mm, they are too loose in
Engine Block and won't work (piston defective)
¤If the Pistons Diameter greater than 106 mm, they are
too wide to go in the Engine Block and hence won't work
(piston defective)
10- 6

2
Process Capability
¨ Furthermore, as the diameter moves away from the
Target Specification (Target Value) of 100mm, there is
more chance that the Pistons might create engine
problems in the future, causing warranty issues , or
customer dissatisfaction ( quality costs – Taguchi’s
view)
¨ Hence, the ideal situation is try to constantly produce
Piston's with exactly 100mm diameters, all the time!
¨ But, is this even possible ?

¨ NO! (assignable and common variations)

10- 7

Mean and Standard Deviation of a

Variable
¨ The diameters of 15 randomly selected Pistons
that are produced through your production
system are given as follows
Sample Diameter (mm)
Number
1 101.00
∑%
"#$ &"
2 99.50 𝑋= '
= 1500/15 = 100
3 99.40
4 101.50 ∑%
"#$(&")*)
,
5 100.30
𝜎=𝑠= '
=1
6 99.60
7 99.50
8 100.10
9 100.30
10 99.20
11 99.60
12 101.80
13 98.15
14 99.00 10- 9
15 101.00

Process Capability
¨ Assuming that the above data is a good
representation of your system:
¤What percent of your production is expected to be
within the acceptable tolerance limits?
¨ Assuming that the Diameter Variable follows a
Normal Distribution (if random sampling is done
in a certain way, this can be assumed),
¨ We can easily find the above percentage by
calculating the area under the Normal curve
between the UTL and the LTL

10- 10

3
Finding the Percentage of Products
Being Produced within Tolerance Limits
¨ To find the area under the Normal curve between
LTL and UTL, first z-transform LTL and UTL
From the Z-tables (Appendix E), P(LTL<= Diameter <= UTL) =
find the area as
P(LTL<= Diameter <= UTL) =
P(zLTL<= Z <= zUTL) =
𝑃(𝑍 ≤ 𝑧0.- )-𝑃(𝑍 ≤ 𝑧-.- ) =
?
=1-0 =1 LTL=94 𝑋 =100 UTL=106 Diameter
Note that, there are no z values zLTL=
-.-)*
= -6 zUTL=
0.-)*
=6
such as 6 or -6! / /
Which says that all our Pistons
should have a diameter within
the tolerance limits! Which is
practically true!
10- 11

Finding the Percentage of Products

Being Produced within Tolerance Limits
¨ To find the area under the Normal curve between LTL
and UTL, first z-transform LTL and UTL
If one uses Excel’s NORMSDIST P(94<= Diameter <= 106) =
function, this probability can be
calculated more precisely!
𝑃(𝑍 ≤ 𝑧0.- =6) = 0.999999999 99.9999998%
𝑃(𝑍 ≤ 𝑧-.- =-6) = 0.000000001
𝑃(−6 ≤ 𝑍 ≤ 6) = 0.999999998 LTL=94 𝑋 =100 UTL=106 Diameter
12)344 345)344
zLTL= = -6 zUTL= =6
3 3
This means that, on average, only
2 out of 1 Billion Pistons Note that ,
produced will have a diameter LTL = 94 = 𝑋 - 6s = 100-6x1
UTL =106 = 𝑋 + 6s = 100+6x1
outside the tolerance limits!! So, the tolerance limits are 6-sigma apart from
the mean!
10- 12

Tighter Tolerance Limits

¨ What if the Tolerance limits were a bit tighter, that
is, we planned that the diameters of the Pistons
need to be in [97mm,103mm]?
¨ That is, the Tolerance limits are as follows:
¤TV=100mm, UTL = 103mm, LTL = 97mm

¨ What percent of the Pistons we produce will be

within the specification limits?

10- 13

4
Tighter Tolerance Limits
¨ Tofind the area under the Normal curve between
LTL and UTL, first z-transform LTL and UTL
From the Z-tables (Appendix E), P(LTL<= Diameter <= UTL) =
find the area as
P(zLTL<= Diameter <= zUTL) =
𝑃(𝑍 ≤ 𝑧0.- ) - 𝑃(𝑍 ≤ 𝑧-.- ) = ?
𝑃(𝑍 ≤ 3) - 𝑃(𝑍 ≤ −3) =
0.9987 – 0.0013 = 0.9973 LTL=97 𝑋 =100 UTL=103 Diameter
-.-)* 0.-)*
zLTL= = -3 zUTL= = 3
Which says that 99.73% our / /
Pistons should have a diameter Note that,
within the tolerance limits! That is, LTL = 97 = 𝑋 - 3s = 100-3x1
on average, about 3 out of 1000 UTL =103 = 𝑋 + 3s = 100+3x1
So, the tolerance limits are 3-sigma apart from
Pistons will be defective! the mean!
10- 14

What is the problem here?

¨ When the Tolerances got tighter, our process is producing
way too many defectives!
¨ How can we improve our system such that we decrease the
number of Pistons out of the tolerance limits? Depending
on situation:
¤ Shift your process mean so that it matches the Target Value
¤ Decrease the process variation
¤ Do both
¨ The mean diameter (x-bar) of our pistons is right on the
Target Value (TV=100 mm)! So, we do not have to worry
about that!
¨ Problem is the high variation of the diameters (s=1) as
compared to the tight tolerance limits!

10- 16

5
How can the problem be resolved?
¨ If we can decrease the standard deviation of our
process (which could be possible by replacing our
machinery with more accurate Computer Controlled
Machinery), or by training the workers better,
replacing the tools (such as cutting , weighing, etc..) in
a timely manner, etc….. ), then we can expect more of
our products to fall in the Tolerance limits.

¨ Let us assume that the standard deviation, s, is actually

decreased to 0.5 from 1
10- 17

Old Process with Std Dev. = 1

¨ Instead of the tolerance limits being 3-sigma
away from the mean
Normal (mean=100, s=1)

0.9973

LTL=97. 𝑋 =100 UTL=103 Diameter

16)344 347)344
zLTL= = -3 zUTL= =3
3 3

Note that,
LTL = 97 = 𝑋 - 3s = 100-3x1
UTL =103 = 𝑋 + 3s = 100+3x1
So, the tolerance limits are 3-sigma apart from the mean!

10- 18

New Process with Std Dev. = 0.5

¨ Now,the tolerance limits are 6-sigma away from
the mean
Normal (mean=100,s=0.5)
Normal (mean=100,s=1)
99.9999998%

LTL=97 𝑋 =100 UTL=103 Diameter

16)344 347)344
zLTL= = -6 zUTL= =6
4.9 4.9

Note that, LTL = 97 = 𝑋 - 6s = 100-6x0.5

UTL= 103 = 𝑋 + 6s = 100+6x0.5
So, the tolerance limits are 6-sigma apart from the mean!
10- 19

6
 New Process with Std Dev. = 0.5
¨ As before, using Excel’s NORMSDIST function, this
probability can be calculated as follows:
P(LTL<= Diameter <= UTL) = P(zLTL<= Z <= zUTL) =
= 𝑃(𝑍 ≤ 𝑧"#$ ) - 𝑃(𝑍 ≤ 𝑧$#$ ) =
So, 𝑃(−6 ≤ 𝑍 ≤ 6) = 𝑃(𝑍 ≤ 6) - 𝑃(𝑍 ≤ −6)
¨ where,

𝑃(𝑍 ≤ 𝑧"#$ =6) = 0.999999999

𝑃(𝑍 ≤ 𝑧$#$ =-6) = 0.000000001
¨ And, 𝑃(−6 ≤ 𝑍 ≤ 6) = 0.999999998

¨ This means that, on average, only 2 out of 1 Billion Pistons

produced will have a diameter outside the tolerance limits if the
standard deviation of the process can be decreased to s=0.5 !!
10- 20

Measuring Process Capability:

Process Capability Index (𝐶!" )

¨A metric that shows how well the parts being

produced (service being given) fit into the
range specified by the design specifications
¨ C pk larger than 1 indicates process is capable

¨ When the two numbers are not close, indicates

mean has shifted

𝑋2 − 𝐿𝑆𝐿 𝑈𝑆𝐿 − 𝑋2
𝐶%& = min ,
3𝜎 3𝜎

10- 21

æ X - LTL UTL - X ö
Meanings of Cpk Measures, C pk = minçç
è 3s
or
3s ø÷
÷

22

Cpk = negative number

Cpk = zero

Cpk = between 0 and 1

Cpk = 1

Cpk > 1

7
23

Example
¨ Design Specs:
¤Average 60psi pressure, upper and lower tolerance
limits are: 65 and 55 psi.

¨ Process:
¤After taking a sample you have
nAverage of 61psi and the standard deviation of 2 psi.

¨ What is the Cpk? What percent of your products

are out of spec (defective)?

10- 23

24

æ X - LTL UTL - X ö
C pk = minçç ÷
What does Cpk mean? è 3s
or
3s ÷ø

¨ If Cpk is a negative number as in the first graph above when Xbar>UTL, or

similarly when Xbar<LTL, then most of the items produced from this machine
(process, system) do not fit in your design limits (tolerance limits). You should
decrease Xbar of your process, or increase in case Xbar<LTL. System is not
capable of producing the parts in desired tolerance limits.

¨ If Cpk <-1 than you should also decrease the standard deviation of your system.
System is not capable of producing the parts in desired tolerance limits.

¨ If Cpk is zero, which happens when Xbar=LTL or Xbar=UTL, then the average
production from this process does not fit in your design limits (tolerance limits).
Approximately 50% of your production is out of limits. See second graph above.
You should decrease Xbar of your process, or increase in case Xbar=LTL. System
is not capable of producing the parts in desired tolerance limits. 10- 24

25

æ X - LTL UTL - X ö
What does Cpk mean? C pk = minçç
è 3s
or
3s ø÷
÷

¨ If Cpk = between 0 and 1, that means either Xbar is not at the center of the
two tolerance limits, or the standard deviation is too high, or both

¤ If standard deviation is smaller than (UTL-LTL)/6, then the system is not

capable of producing the product as Xbar has shifted. And it should be
shifted back to the center.

¤ If Xbar is in the center but Std.Dev > (UTL-LTL)/6, then the deviation in the
process should be decreased, in this case the system is not capable of
producing the product in the design limits.

¤ If Xbar is not in the center and Std.Dev > (UTL-LTL)/6, then the deviation in
the process should be decreased, in this case the system is not capable of
producing the product in the design limits. The deviation of the process has
to be not only decreased but also its average should be centered again.

10- 25

8
26

æ X - LTL UTL - X ö
C pk = minçç ÷
What does Cpk mean? è 3s
or
3s ø÷

¨ If Cpk = 1, then Xbar is at the center, and the std.dev is equal to (UTL-
LTL)/6. Process is barely capable of producing in the design limits.

¨ If Cpk > 1, then the std.dev is low (which is a desired situation), but
depending on which tolerance limit Xbar is close to, there might be a
shift or not in Xbar.

10- 26

Today’s Objectives
¨ Process Capability
¤ What is it? How do we measure; Cpk?
¨ Statistical Process Control
¤ Control Charts
n attribute charts : p and c-charts
n variable charts : x-bar and r-charts
¨ Acceptance Sampling

10- 27

Statistical Process Control

¨ Statistical process control (SPC) is a statistical procedure using
control charts to see if any part of a production or service
process could cause poor quality

¨ SPC is used to inspect and measure the production or service

process to see if it is varying from what it is supposed to be
doing

¨ If there is unusual or undesirable process variability, the process

is corrected so that defects will not occur

10- 28

9
Process Control Chart

Out of control
Upper
control
limit

Process
average

Lower
control
limit

1 2 3 4 5 6 7 8 9 10
Sample number

10- 29

Statistical Process Control (SPC)

¨ Process control is achieved by taking random samples over time

from the process and plotting these sample points on a chart, to
see if the process is within statistical control limits

¨ If a sample point is outside the limits, the process may be out of

control, and the cause is sought so that the problem can be
corrected

¨ If a sample point is within the control limits, the process continues

without interference

10- 30

Control Limits
¨ We, generally, establish the Upper Control Limits (UCL) and
the Lower Control Limits (LCL) with plus or minus z = 3
standard deviations from some x-bar or mean value. Based
on this we can expect 99.74% of the products fall within
these limits

99.74%
x
LCL=X-3σ x UCL= X+3σ

¨ Or, the Upper Control Limits (UCL) and the Lower Control
Limits (LCL) can be established with plus or minus z=2.58
standard deviations from some x-bar or mean value. Based
on this we can expect 99% of the products fall within these
limits
10- 31

10
Process Control Charts - Interpretation

10- 32

Quality Measures:
Attributes and Variables
¨ Variable (Continuous)
¤ Usually measured by the mean and the standard deviation.
¤a product characteristic that is continuous and can be measured
¤ E.g. weight, length, etc..
¤ X-bar and R chart applications

¨ Attribute (Go or no-go information)

¤ Defectives refers to the acceptability of product across a range of
characteristics, e.g. light bulb is working or not
¤ Defects refers to the number of defects per unit which may be higher
than the number of defectives, e.g. number of knots in a 2x4 stud
¤ p-chart and c-chart applications

10- 33

Control Charts

¨ A graph that ¨ Types of charts

establishes control ¤Variables
limits of a process n mean (x bar – chart)
n range (R-chart)
¨ Control limits ¤Attributes
¤upper and lower
n p-chart
bands of a control n c- chart
chart

10- 34

11
p-Chart

With a p-chart a sample UCL = p + zsp

of n items is taken
periodically from the
production OR service
process, and the
proportion of defective
items in the sample is
calculated. Using the
average of these
proportions, we create
the chart!
LCL = p – zsp or 0 if less than 0
z = number of standard deviations from
process average
p = sample proportion defective; an
estimate of process average
sp = standard deviation of sample
proportion
p(1 - p)
sp = n

10- 35

p-Chart

¨ How do we determine the sample size n?

¤We want the sample size such that we expect the
occurrence of the attribute twice on average
¤So, if we expect to have 1% defectives on our process,
then we would like to have the sample size, n, to be 200.

10- 36

Process Control Measurements –

p Charts
¨ Usedwhen an item (or service) is either good
or bad (a yes-no decision)
𝑈𝐶𝐿 = 𝑝 + 𝑧𝑠:

𝐿𝐶𝐿 = 𝑝 − 𝑧𝑠:
𝑁𝑢𝑚𝑏𝑒𝑟 𝐷𝑒𝑓𝑒𝑐𝑡𝑖𝑣𝑒 10- 37
𝑝=
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑂𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛𝑠

12
Creating p Charts

Calculate the control limits (UCL and LCL)

Plot the individual sample proportions, the average

of the proportions, and the control limits

10- 38

Example
The operations manager of the booking services
department of a bank is concerned about the number
of wrong customer account numbers recorded by the
bank personnel. Each week a random sample of 2,500
deposits is taken, and the number of incorrect account
numbers is recorded. The results for the past 12 weeks
are shown in the next slide. Is the booking process out of
statistical control? Draw a P-chart. Use three-sigma
control limits.

10- 39

Control Charts for Attributes

Sample Wrong
Number Account Number
1 15
2 12
3 19 n = 2500
4 2
5 19
6 4 Total defectives
7 24
8 7
p= Total observations
9 10
10 17
11 15
12 3
Total 147

10- 40

13
Control Charts for Attributes
Sample Wrong
Number Account Number

1 15
2 12 n = 2500
3 19
4 2
5 19
147
6 4 p=
7 24 12(2500)
8 7
9 10
p = 0.0049
10 17
11 15
12 3

Total 147
10- 41

Control Charts for Attributes

Sample Wrong Proportion
Number Account Number Defective (p)
15/2500 = 0.006
1 15 0.006
2 12 0.0048
3 19 0.0076 n = 2500
4 2 0.0008
5 19 0.0076
6 4 0.0016 p = 0.0049
7 24 0.0096
8 7 0.0028
9 10 0.004
10 17 0.0068
11 15 0.006
12 3 0.0012

Total 147
10- 42

Control Charts for Attributes

n = 2500 p = 0.0049

9(:;9) >.>>@A(:;>.>>@A)
𝑆9 = =
= BC>>
= 0.0014

𝑈𝐶𝐿 % = 𝑝 + 3 𝑆% = 0.0049 + 3x0.0014 = 0.0091

𝐿𝐶𝐿 % = 𝑝 − 3 𝑆% = 0.0049 − 3x0.0014 = 0.0007

10- 43

14
 p-Chart
Wrong Account Numbers

p-Chart
Wrong Account Numbers

• Sample the process

• Find the assignable cause
• Eliminate the problem
• Repeat the cycle

Process Control Measurements –

c-Charts

¨ Used when an item (or service) may have

multiple defects
𝑐 = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 (𝑒𝑥𝑝𝑒𝑐𝑡𝑒𝑑) 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑑𝑒𝑓𝑒𝑐𝑡𝑠 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡
𝑠% = 𝑐
𝑈𝐶𝐿 = 𝑐 + 𝑧 𝑐
𝐿𝐶𝐿 = 𝑐 − 𝑧 𝑐 or 0 if less than 0

10- 46

15
Variable Measurement Process Control
Charts : X-bar and R-Charts
q Variables sampling involves measuring a quantifiable attribute
such as weight, length, diameter, etc.
q Size of samples
q Preferable to keep small (usually 4 or 5 units)
q Number of samples
q Once chart set up, each sample compared to chart
q Use about 25 samples to set up chart
q Frequency of samples
q Tradeoff between cost of sampling and benefit of adjusting the system
q Control limits
q Generally use z = 3 (99.7% of samples are expected to fall within
control limits)
10- 47

R-chart and X-chart

¨ R- chart: A chart used to monitor process variability

¨ X chart: A chart used to monitor process average

¨ X chart can be constructed in two ways depending

on the information that is available.
¤ Process standard deviation, 𝜎, is unknown
¤ Process standard deviation, 𝜎, is know from past experience

10- 48

X-bar and R-Charts: 𝜎 not known

𝑋 𝐶ℎ𝑎𝑟𝑡 𝐶𝑜𝑛𝑡𝑟𝑜𝑙 𝐿𝑖𝑚𝑖𝑡𝑠 𝑅 − 𝐶ℎ𝑎𝑟𝑡 𝐶𝑜𝑛𝑡𝑟𝑜𝑙 𝐿𝑖𝑚𝑖𝑡𝑠

𝑈𝐶𝐿 = 𝑋2 + 𝐴:𝑅 𝑈𝐶𝐿 = 𝐷;𝑅
𝐿𝐶𝐿 = 𝑋2 − 𝐴:𝑅 𝐿𝐶𝐿 = 𝐷<𝑅
10- 49

16
Example: Control Charts for Variables, 𝜎 not known

The manager of a manufacturing company is concerned

about the production of a special metal screw used by
several of the company’s largest customers. The
diameter of the screw is critical to the customer. Data
from five samples are shown in the next slide. The
sample size is 4. Is the process in statistical control?

(1) Develop an R chart. Use three-sigma control limits.

(2) Develop an X chart. Use three-sigma control limits.

10- 50

Control Charts for Variables

DATA for Special Metal Screw

Sample Sample
_
Number 1 2 3 4 R x
1 0.5014 0.5022 0.5009 0.5027
2 0.5021 0.5041 0.5024 0.5020
3 0.5018 0.5026 0.5035 0.5023
4 0.5008 0.5034 0.5024 0.5015
5 0.5041 0.5056 0.5034 0.5039

10- 51

Control Charts for Variables

(0.5014+0.5022+ 0.5009+ 0.5027)/4

Special Metal Screw
Sample Sample _
Number 1 2 3 4 R x
1 0.5014 0.5022 0.5009 0.5027 0.0018 0.5018
2 0.5021 0.5041 0.5024 0.5020 0.0021 0.5027
3 0.5018 0.5026 0.5035 0.5023 0.0017 0.5026
4 0.5008 0.5034 0.5024 0.5015 0.0026 0.5020
5 0.5041 0.5056 0.5034 0.5047 0.0022 0.5045
R= 0.0021
=
x= 0.5027 Average
of X bar
0.5027- 0.5009=0.0018 (Range = Highest value – Lowest
Value)
10- 52

17
Control Charts: Special Metal Screw: R-Charts

R = 0.0021 UCLR = D4R

LCLR = D3R

• D4 and D3 are tabular values that are used to set

up the control limits
• They were developed for determining the control limits
for R-charts. The values correspond to 3-sigma limits

10- 53

Control Charts for Variables

Control Chart Factors

Factor for UCL Factor for Factor
Size of and LCL for LCL for UCL for
Sample x-Charts R-Charts R-Charts
(n) (A2) (D3) (D4)
2 1.880 0 3.27
3 1.02 0 2.57
4 0.73 0 2.28
5 0.58 0 2.11
6 0.48 0 2.00
7 0.42 0.08 1.92
8 0.37 0.14 1.86
9 0.34 0.18 1.82
10 0.31 0.22 1.78

10- 54

Control Charts: Special Metal Screw: R-Charts

R = 0.0021 D 4 = 2.28
D3 = 0

UCLR = D 4R
LCLR = D 3R

UCLR = 2.28 (0.0021) = 0.004788 in.

LCLR = 0 (0.0021) = 0 in.

10- 55

18
 Range Chart - Special Metal Screw

Control Charts – Special Metal Screw: X-Charts

R = 0.0021
x= = 0.5027

UCLx = =x + A 2R
LCLx = =
x - A 2R

• A2 is tabular value that is used to set up the control

limits.
• They were developed for determining the control limits
for x-charts. The values correspond to 3-sigma limits.

10- 57

Control Charts for Variables

Control Chart Factors

Factor for UCL Factor for Factor
Size of and LCL for LCL for UCL for
Sample x-Charts R-Charts R-Charts
(n) (A2) (D3) (D4)
2 1.880 0 3.27
3 1.02 0 2.57
4 0.73 0 2.28
5 0.58 0 2.11
6 0.48 0 2.00
7 0.42 0.08 1.92
8 0.37 0.14 1.86
9 0.34 0.18 1.82
10 0.31 0.22 1.78

10- 58

19
Control Charts – Special Metal Screw: X-Charts

R = 0.0021 A2 = 0.7300
x= = 0.5027

UCLx = x= + A 2R
LCLx = x= – A 2R

UCLx = 0.5027 + 0.729 (0.0021) = 0.5042 in.

LCLx = 0.5027 – 0.729 (0.0021) = 0.5012 in.

10- 59

x-Chart— Special Metal Screw

• Sample the process

• Find the assignable cause
• Eliminate the problem
• Repeat the cycle

Statistical Process Control (SPC) Charts

UC
L
Normal Behavior

LCL

1 2 3 4 5 Samples
6 over
UC time
L

Possible problem, investigate

LCL
1 2 3 4 5 Samples
6 over
UC time
L

Possible problem, investigate

LCL
1 2 3 4 5 Samples
6 over
time 10- 61

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62

Mean and Range Charts Complement

Each Other

10- 62

Control Charts for Variables:

process standard deviation, 𝜎, is known

¨ A bank monitors the time required to serve customers at the

drive-by window because it is an important quality factor in
competing with other banks in the city. After analyzing the data
gathered in an extensive study of the window operation, bank
management determined that the mean time to process a
customer at the peak demand period has been 5 minute. From
the past historical data, it is known that the process standard
deviation is 1.5 minutes. Management wants to monitor the
mean time to process a customer by periodically using a sample
size of six customers. Set the control limits so that the there is a
2.5 percent chance a sample result fall below the LCL and a
2.5 cent chance that a sample result fall above the UCL.
10- 63

Value of ‘z’

qSet the control limits so that the there is a 2.5 percent chance that a
sample result falls below the LCL and a 2.5 percent chance that a
sample result falls above the UCL, from 1 – 0.0250 = 0.9750
qLook this number in the body of the z-table for corresponding z-value
qIf this exact number is not available, then pick the closest one. In this
case you will find 0.9750
qGo backward in the same row where 0.9750 is and you will find 1.9
qGo upward of the column where 0.9750 is and you will find 0.06
qAdd both 1.9 + 0.06 = 1.96. This is your z value which you replace
in the formula, z = 1.96

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21
Control Charts for Variables:
process standard deviation is known

Sunny Dale Bank

UCLx = = x + zs x x= = 5.0 minutes
LCLx = =x – zsx s = 1.5 minutes
n = 6 customers
sx = s/ n z = 1.96

UCLx = 5.0 + 1.96(1.5) / 6 = 6.20 min

UCLx = 5.0 – 1.96(1.5) / 6 = 3.80 min

10- 66

Example
¨ A company produces slip-ring bearings, which look like
flat doughnuts . They fit around shafts, such as drive
shafts in machinery. At an early stage in the production
process for a particular slip-ring bearing, the outside
diameter of the bearing is measured. Employees have
taken 10 samples (during 10-day period) of 5 slip-ring
bearings and measured as the next slide.
(1) Develop an x-bar chart with 3-sigma limit .
(2) Develop a R-chart with 3-sigma limit.

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22
x-bar Chart Example:
Standard Deviation Unknown

OBSERVATIONS (SLIP- RING DIAMETER, CM)

SAMPLE k 1 2 3 4 5
1 5.02 5.01 4.94 4.99 4.96
2 5.01 5.03 5.07 4.95 4.96
3 4.99 5.00 4.93 4.92 4.99
4 5.03 4.91 5.01 4.98 4.89
5 4.95 4.92 5.03 5.05 5.01
6 4.97 5.06 5.06 4.96 5.03
7 5.05 5.01 5.10 4.96 4.99
8 5.09 5.10 5.00 4.99 5.08
9 5.14 5.10 4.99 5.08 5.09
10 5.01 4.98 5.08 5.07 4.99

10- 68

x-bar Chart Example:

Standard Deviation Unknown

OBSERVATIONS (SLIP- RING DIAMETER, CM)

SAMPLE, k 1 2 3 4 5 x Rk
1 5.02 5.01 4.94 4.99 4.96 4.98 0.08
2 5.01 5.03 5.07 4.95 4.96 5.00 0.12
3 4.99 5.00 4.93 4.92 4.99 4.97 0.08
4 5.03 4.91 5.01 4.98 4.89 4.96 0.14
5 4.95 4.92 5.03 5.05 5.01 4.99 0.13
6 4.97 5.06 5.06 4.96 5.03 5.01 0.10
7 5.05 5.01 5.10 4.96 4.99 5.02 0.14
8 5.09 5.10 5.00 4.99 5.08 5.05 0.11
9 5.14 5.10 4.99 5.08 5.09 5.08 0.15
k=10 5.01 4.98 5.08 5.07 4.99 5.03 0.10
50.09 1.15

10- 69

X-bar and R-Charts

𝑋 𝐶ℎ𝑎𝑟𝑡 𝐶𝑜𝑛𝑡𝑟𝑜𝑙 𝐿𝑖𝑚𝑖𝑡𝑠 𝑅 − 𝐶ℎ𝑎𝑟𝑡 𝐶𝑜𝑛𝑡𝑟𝑜𝑙 𝐿𝑖𝑚𝑖𝑡𝑠

𝑈𝐶𝐿 = 𝑋; + 𝐴; 𝑅 𝑈𝐶𝐿 = 𝐷2 𝑅
𝐿𝐶𝐿 = 𝑋; − 𝐴; 𝑅 𝐿𝐶𝐿 = 𝐷7 𝑅

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23
 X-bar Chart Example:
Standard Deviation Unknown (cont.)

5.10 – X- bar Chart

5.08 – UCL = 5.08

∑ $!"# 𝑅 𝑖 1.15
𝑅= = = 0.115 5.06 –
𝑘 10
5.04 –
∑ $!"# 𝑋 𝑖
50.09
𝑋B = x== 5.01
Mean

= = 5.01 5.02 –
𝑘 10
UCL = 𝑋B + A2 𝑅 = 5.01 + (0.58)(0.115) = 5.08 5.00 –

LCL = 𝑋B - A2 𝑅 = 5.01 - (0.58)(0.115) = 4.94 4.98 –

4.96 – LCL = 4.94

4.94 –

4.92 – | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10
Sample number

10- 71

R-Chart Example (cont.)

0.28 –
UCL = D4R 0.24 –
UCL = 0.243
= 2.11(0.115) 0.20 –
= 0.243 0.16 –
Range

R = 0.115
0.12 –
LCL = D3R
= 0(0.115) 0.08 –
=0 0.04 –
LCL = 0
0– | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10
Sample number

10- 72

Today’s Objectives
¨ Process Capability
¤What is it? How do we measure; Cpk?
¨ Statistical Process Control
¤Control Charts
nattribute charts : p and c-charts
nvariable charts : x-bar and r-charts
¨ Acceptance Sampling

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24
Acceptance Sampling
¨ Performed on goods that already exist to determine what
percentage of the products conform to specifications
¨ Executed through a sampling plan
¨ Results include accept, reject, or retest
Purpose:
¨ Determine quality level

¨ Ensure quality is within predetermined level

10- 74

Acceptance Sampling

Disadvantages Advantages

¨ Risks of accepting ¨ Economy

“bad” lots and ¨ Less handling damage
rejecting “good”
lots ¨ Fewer inspectors
¨ Added planning ¨ Upgrading of the inspection job
and documentation ¨ Applicability to destructive
¨ Sample provides testing
less information ¨ Entire lot rejection (motivation for
than 100-percent improvement)
inspection

10- 75

Acceptance Sampling –
Designing a Sampling Plan
¨ Determine (1) how many units, n, to sample from a
lot, and (2) the maximum number of defective
items, c, that can be found in the sample before
the lot is rejected
Acceptable quality level Lot tolerance percent
(AQL) defective (LTPD)
• Maximum on average • Maximum percent of
acceptable percentage of defectives (the poorest
defectives found satisfactory quality) in an individual lot
by both the producer and the that the consumer needs to
consumer accept

a (producer’s risk) b (consumer’s risk)

• The probability of rejecting • The probability of accepting
a good lot a bad lot

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25
Example: Acceptance Sampling Problem

Zypercom, a manufacturer of video interfaces,

purchases printed wiring boards from an outside
vendor, Procard. Procard has set an acceptable quality
level of 1% and accepts a 5% risk of rejecting lots at
or below this level. Zypercom considers lots with 3%
defectives to be unacceptable and will assume a 10%
risk of accepting a defective lot.

Develop a sampling plan for Zypercom and determine

a rule to be followed by the receiving inspection
personnel.
10- 77

Example: Step 1.
What is given and what is not?

q In this problem, AQL is given to be 0.01 and

LTPD is given to be 0.03. We are also given
an alpha of 0.05 and a beta of 0.10.
q What you need to determine for your
sampling plan is “c” and “n”.

10- 78

Example: Step 2. Determine “c”

First divide LTPD by LTPD .03

= = 3
AQL. AQL .01

Then find the value for “c” by selecting the smallest value in the Exhibit
10.16 (for alfa=0.05, and beta=0.10) “LTPD/AQL” column that is equal to
or just greater than the ratio above.

Exhibit 10.16 So, c = 6.

c LTPD/AQL n AQL c LTPD/AQL n AQL

0 44.890 0.052 5 3.549 2.613
1 10.946 0.355 6 3.206 3.286
2 6.509 0.818 7 2.957 3.981
3 4.890 1.366 8 2.768 4.695
4 4.057 1.970 9 2.618 5.426

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26
Example: Step 3.
Determine Sample Size
¨
Now given the information below, compute the sample
size in units to generate your sampling plan

c = 6, from Table
n (AQL) = 3.286, from Table 10.16
AQL = .01, given in problem
n(AQL)/AQL = 3.286/.01 = 328.6, or 329 (always round up)

Sampling Plan:
Take a random sample of 329 units from a lot.
Reject the lot if more than 6 units are defective.

10- 80

Acceptance Sampling Example 2

¨ The vendor produces circuit boards to parameters
of:
¤ AQL=0.02,
¤LTPD=0.08
¤5% risk of having lots of this level or fewer defectives
rejected
¤Acceptance of poor-quality lots no more than 10%
¨ What values of n and c should be selected to
determine the quality of this lot?

10- 81

Example 2: Determine “c”

First divide LTPD by 𝐿𝑇𝑃𝐷 0.08

= =4
AQL. 𝐴𝑄𝐿 0.02

Then find the largest “c” value such that “LTPD/AQL” column in the
Exhibit 10.16 (This exhibit is specifically for alfa=0.05, and beta=0.10) is
greater than or equal to the ratio above.
Exhibit 10.16 So, c = 4.

c LTPD/AQL n AQL c LTPD/AQL n AQL

0 44.890 0.052 5 3.549 2.613
1 10.946 0.355 6 3.206 3.286
2 6.509 0.818 7 2.957 3.981
3 4.890 1.366 8 2.768 4.695
4 4.057 1.970 9 2.618 5.426

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27
 Example 2: Determine Sample Size

Now given the information below, compute the sample

size in units to generate your sampling plan

c = 4, from Table
n (AQL) = 1.970, from Table 10.16
AQL = .02, given in problem
n(AQL/AQL) = 1.970/.02 = 98.5, or 99 (always round up)

Sampling Plan:
Take a random sample of 99 units from a lot.
Reject the lot if more than 4 units are defective.

10- 83

Things to do
84

¨ Make sure you read Ch 10 – Quality Management and

Six Sigma
¨ Understand the Solved Examples in the chapter

¨ Solve Suggested Problems 17, 18, 22, 25, 26

¨ Solve as many problems as you can from end of

chapter problems
¨ Attend Tutorial

¨ Read Chapter 3 - Forecasting

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