Module 4 - Quality Mang.

Quality
4 Management
Operations Management – Dr. Nevien Farouk Khourshed - GSB - AASTMT 1

Learning Objectives
 When you complete this lecture you should be able to:
 List and briefly explain the elements in the control
process
 Explain how control charts are used to monitor a
process, and the concepts that underlie their use
 Use and interpret control charts
 Perform run tests to check for nonrandomness in
process output
 Assess process capability
Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 2

Outlines
 Quality, Quality Contributors, Determinants of Quality, Basic
Tools of Quality, Quality Control, Quality Assurance, Inspection
 Statistical Process Control
 Process Variability
 Random variation
 Assignable variation (Nonrandom)
 Types of control charts
1. Mean control charts (X-bar charts)
2. Range control charts (R charts)
3. P-Chart
4. C-Chart
 Run test
 Process Capability
Quality
 Different meaning could be attached to the word

Quality under different situations.
 The word Quality does not mean the Quality of

manufactured product only. It may refer to the
Quality of the Process (i.e., man, material,
machines) and even that of Management.
 “Quality” is the ability of a product or service to

constantly meet or exceed customer expectations.

History of Quality Management
Quality Quality
Control and Quality Total Awards and
Inspection TQM
Statistical in Japan Quality Excellence
Theory Models

• Inspection involves measuring, examining, and
testing products, process and services against
Inspection specified requirements to determine conformity ...
To decide whether a job or a product is acceptable.
“‘Let’s find better ways to do the checking”
Quality Control and • Quality Control was introduced to detect and fix
problems along the production line to prevent the
Statistical Theory production of faulty products.
• The idea of quality did not stop at the management

level, Quality has become a system approach
Quality in Japan (interrelationships among subsystems), rather than
focusing on one part at a time, so started Quality
circles.
• The term ‘total quality’ was referred to wider issues

within an organisation. It was used for the first time by
Total Quality Feigenbaum in 1969.
• Ishikawa also explained ‘total quality control’ in a different
way; it means ‘company-wide quality control’ that
involves all employees, from top management to the
workers, in quality control.
• In the 1980s to the 1990s, a new phase of quality
began. This became known as Total Quality
Total Quality Management (TQM):
Management • customer focus, the involvement of all employees,

continuous improvement, and integration of quality
management into the total organisation.
• In 1988 a Malcolm Baldrige Award was developed

Quality by the United States government to encourage
Awards and companies to adopt the model and improve their
competitiveness.
Excellence • In 1992 an EFQM Excellence Model was developed
Models by the European Foundation of Quality Management
for the European Quality Award.

Quality Contributors
Shewart (1891-1967)
Deming (1900-1993)
Juran (1904-2008)
Feigenbaum (1922-2014)
Ishikawa (1915-1989)
Shingo (1909-1990)
Yoshio Kondo (1910-1990)
Taiichi Ohno (1912-1990)
Taguchi (1924-2012)
Crosby (1926-2001)
Responsibility for quality
Responsibility for Quality
Top Has the ultimate responsibility for quality, they must institute programs to
Management improve quality; guide, direct, and motivate managers and workers.
Design Quality products and services begin with design; right design provides
the opportunity to get quality products.
Procurement Obtaining goods/services that will not reduce the quality of the
organization’s goods and services.
Production / Ensure that processes yield products and services that confirm to
operations design specifications.
Quality Gathering and analyzing data on problems and working with operations
assurance to solve problems.
Packaging and Ensure that goods are not damaged in transit, packages are clearly
shipping labeled, and instructions are included, all parts are included, and shipping
occurs in timely manner.
Marketing and Determine customer needs and communicate them to appropriate

sales areas of the organization.
Determinants of Quality
 Often people might state that a product is of good

quality but of poor design, or that a product is of good
quality but it has a high maintenance cost.
 The degree to which a product or a service

successfully satisfies its intended purpose has four
primary determinants:

Determinants of Quality
Quality of Design
 Designing quality characteristics
into a product or service, that
satisfies customer needs and
expectations.
Quality of Conformance
 Conforming the product or service to
the design standard/specifications.
Fit for use
 How well product or service A Mercedes and a Ford are
equally “fit for use” but with
does what it is supposed to.
different design dimensions and,
different quality conformance
After-the-sale service
 Taking care of issues and problems that arise after the sale 12
How to improve
quality?

Basic Tools of Quality
 Quality tools is one of the TQM concepts; there are a
number of tools an organization can use for problem
solving and process improvement, the tools provide
the basis for decision making.
 Flow Charts
 Check Sheets
 Histogram
 Pareto Charts
 Cause and Effect Diagram (Fishbone Diagram)
 Control Charts

1. Flowcharts
 A flow chart is a visual representation, using a set of
predefined symbols; showing all of the steps of a
process in a sequence to show the nature and flow of
the steps in a process.
 Flow charts can be used in identify problem areas and
opportunities for process improvement.
Start or finishing point
Step or activity in the process
Decision point (typically requires a “yes” or “no”)
Input or output (typically data or materials)
Document created
Delay
Inspection
Move activity
15
Operations Management – Dr. Nevien Farouk Khourshed - AASTMT
Flowcharts Example
Part of an example
for flow chart showing
how to route incoming
phone calls.

2. Check Sheets
 Also called: defect concentration diagram

 A check sheet is a simple tool for problem identification,
in a format that enable users to record and organize data
in a way that facilitates collection and analysis.
 Check sheet used when:
 Data can be observed and collected time after time by
the same person or at the same location,
 Collecting data on the frequency or patterns of events,
problems, defects, defect location, defect causes, etc.
 Collecting data from a production process.

Check Sheets - Example
Day Time Type of defect total

E1 E2 E3 E4 other
M 8-9 IIII II 6
9-10 III 3
10-11 I III I 5
11-12 I I I 3
1-2 I 1
2-3 II III I 6
3-4 II IIII 8
5 14 10 2 1 32

3. Histograms
 Also called: Bar chart
 Histogram is a graphical representation of the variation
in a set of data to show frequency distributions.
 Histogram used when the data are numerical, and
when you want to see the shape of the data’s
distribution, especially when determining whether the
output of a process is distributed approximately
normally.
19
4. Scatter Diagram
 Also called: Scatter plot, X–Y graph

 2 Dimensional X/Y plots, used to show
correlation between the values of two variables,
which might reflect the cause of a problem.

4. Pareto Diagram
 Also called: Pareto chart, Pareto analysis.
 Pareto analysis is a technique for focusing attention on
the most important problem areas.
 The concept is that a relatively few factors (vital few)
generally account for a large percentage of the total cases
(complaints, defects, problems)
 The idea is to classify the cases according to degree of
importance, and focus on resolving the most important and
leaving the less important.
 So it is used to identify and prioritize problems to be
solved.
Pareto Charts –
Customer Complaints Example
 This example shows how many customer
complaints were received in each of five
categories.
70 Types of customer
complaints
60
50
40
30
20
10
0
Documents Product quality Packaging Delivery Other
22
Pareto Charts –
Customer Complaints Example
 This example takes the largest category,
“documents,” from previous Example, breaks it
down into six categories of document related
complaints, and shows
Types cumulative
of customer values.
complaints - Documents
20% 80% line
80% of
problems Significant Insignificant
caused by few many
20% of 80%
complaints
Quality Quality Invoice Packing Wrong Other

certificate certificate error error quality
error missing 23
5. Cause and Effect Diagram
Also called: Ishikawa diagram, Fishbone diagram.
Looks like a “Fish Skeleton”.
No statistics involved.
It identifies many possible causes for an effect or
problem so that further data collection and analysis
can be carried out.
It can be used to structure a brainstorming session.
It easily sorts ideas into useful/helpful categories
which makes improvement easier.
Cause and Effect Diagram
Man power

Cause and Effect Diagram
The 8 Ms The 8 Ps The 4 Ss
(used in manufacturing) (used in service industry) (used in service
industry)
Machine Product=Service Surroundings
Method Price Suppliers
Material Place Systems
Man Power Promotion Skills
Measurement People
Mother Nature Process
Management Physical Evidence
Maintenance Productivity & Quality

6. Quality Control
 A process that evaluates output relative to a
standard and takes corrective action when output
doesn’t meet standards
 If results are acceptable no further action is

required
 Unacceptable results call for correction action
 Quality control is concerned with the quality of

conformance of a process: Does the output of a
process conform to the intent of design?

Quality Assurance
 So we need to establish organisational procedures
and standards for quality to ensures that the final
results reported are correct.
 Quality Assurance
Inspection and
Inspection corrective Quality built
before/after action during into the
production production process
Acceptance Process Continuous

sampling control improvement
Inputs / outputs Transformation

Inspection
 The purpose of inspection is to provide information on
the degree to which items conform to a standard.
 The basic issues of inspection are:
1. How much to inspect and how often?
2. At what points in the process inspection should occur?
3. Whether to inspect in a centralized or on-site location?
4. Whether to inspect Attribute or Variable?

1. How much to inspect and how often
 The amount of inspection can range from no

inspection to inspection of each item many times.
 Low-cost, high volume items; such as, paper clips

and pencils often require little inspection because:
1. the cost associated with passing defective items is

quite low.
2. the process that produce these items are usually

highly reliable, so that defects are rare.

1. How much to inspect and how often
 High-cost, low volume items; that have large cost
associated with passing defective items often require
more intensive inspection such as airplanes and
spaceships.
 The majority of quality control applications ranges
between these two extremes.
 The amount of inspection needed is governed by the
cost of inspection and the expected cost of passing
defective items.
 The optimum level of inspection, minimizes the sum
of inspection costs and the cost of passing defectives.
2. Where to Inspect in the Process
 Inspection always adds to the cost of the product;
therefore, it is important to restrict inspection efforts to
the points where they can do the most good.
 In manufacturing, some of the typical inspection points
are:
 Raw materials and purchased parts
 Finished products
 Before a costly operation
 Before a covering process

Examples of Inspection Points
Type of Inspection Characteristics

business points
Fast Food Cashier Accuracy
Counter area Appearance, productivity
Eating area Cleanliness
Building Appearance
Kitchen Health regulations
Hotel/motel Parking lot Safe, well lighted
Accounting Accuracy, timeliness
Building Appearance, safety
Main desk Waiting times
Supermarket Cashiers Accuracy, courtesy
Deliveries Quality, quantity
33
3. Centralized or on-site location
 Some situations require specialized tests to be
performed in a lab (centralized); such as medical
tests, analyzing food samples, testing metals for
hardness,...
 Advantages
 More specialized testing equipment
 More favorable testing environment
 Disadvantages
 High cost of inspection because of numerous sets of
inspections and skilled inspectors.

3. Centralized or on-site location
 Some situations require that inspections be
performed on site such as inspecting a ship for
cracks.
 Advantages
 Quicker decisions are submitted
 Quality at the source
 Disadvantages
 More material handling.
 Delays of inspection room causes wastage of time.

4. Inspect Attribute or Variable
 Whether to inspect:
 Attribute (counts):
 Counted data
 number of defective items in a sample, the
number of calls per day, number of complaints
per day.
 Variable (measures):
 Measured data, usually on a continuous
scale.
 amount of time needed to resolve complaint,
amount of time needed to complete a task,
length, width, weight, diameter of a part. 36
Statistical Process Control
 Managers use Statistical Process Control (SPC) to
evaluate the output of a process to determine if it is
statistically acceptable.
 Statistical Process Control:
 Statistical evaluation of the output of a process

during production
37
Process Variability
 All processes generate output that shows some
degree of variability.
• Common or natural variations in the

output of a process, created by
Random
various minor factors. It would be
variation negligible; (is the output variations
are within an acceptable range?)
Assignable • A special variation whose source

variation can be identified (it can be assigned
(Nonrandom) to a specific cause).
38
Process Variability
 This issue is addressed by answering 2 questions
about process variations:
1. Are the variations random or nonrandom?
 In case of non-random; Corrective action will need to be taken
to improve the process by eliminating the causes of non-
randomness.
2. Given a stable process; is the natural variability of
the process within a range that conforms to
performance criteria?
 This involves assessment of the process capability to
meet standards, by comparing the process output with the
customer’s specification.
 If a process is not capable, this situation will need to be
addressed.
Sampling and Process Distribution
Sampling
distribution
Process
distribution
Mean
Lower Upper
control control
limit limit

Properties of
Sampling Distribution
 The sampling distribution shows much less

variability than the process distribution.
 The sampling distribution has the same mean as

the process distribution.
 The sampling distribution is a normal distribution

regardless of the shape of the process
distribution.

Example: Process distribution
 Suppose there is a process for filling bottles with soft
drink. If the amount of soft drink in a large number of
bottles (e.g., 100) is measured accurately, we would
discover slight differences among the bottles.
 If these amounts were arranged in a graph, the
frequency distribution would reflect the process
variability.
Process
distribution
Mean 42
Example: Sampling distribution
 Suppose there is a process for filling bottles with soft
drink.
 There are 100 bottles of soft drink. If we take samples
of 10 bottles each and compute the mean amount of
soft drink in each sample, we would discover that
these values also vary, just as the individual values
varied; they would have a distribution of values.
Sampling
distribution
Mean
43
Sampling Distribution
 Sampling distribution: A theoretical distribution that

describes the random variability of sample statistics.
Such as: measures of variability, measures of
relationship, and ratios.
 The goal of the sampling distribution is to:
 Determine whether nonrandom (source of variation)
are present in the output of a process.
 In some cases (e.g. industrial production) analysis
may be destructive, so sampling is needed.
 The most frequently used is the normal distribution.

Normal Distribution
As if we say
mg/kg
Standard deviation 1.33 ppm
  Mean  

95.44%
Lower 99.74% Upper

control control
limit limit

SPC Tools: Control Chart
 Control Chart is an important tool in SPC (the voice of
the process) used to monitor process output to see if it is
random (in control) or not (out of control).
 It is a time ordered plot of representative sample
statistics obtained from an ongoing process (e.g. sample
means), used to distinguish between random and
nonrandom variability, as well as to reflect the process
improvements that have been made.
 Control charts have two Control limits that separate
random variation and nonrandom variation.
 Upper and lower control limits define the range of
acceptable variation.
Control Chart
Abnormal variation Out of

due to assignable sources control
UCL
Mean
Normal variation due to chance
LCL
Abnormal variation due to assignable sources
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Sample number

Types of control charts
 There are four types of control charts; two for
variables, and two for attributes.
 Control Charts for Variables (measurable quantities)

 Control Chart for Attributes (counted quantities)
3. P-Chart
4. C-Chart

Control Charts for Variables
• Used to check mean (to monitor the
Mean control central tendency of a process to
charts detect shifts).
• It is used to analyze central
(X-bar location.
charts) • Plots the process mean over time for
variables data in subgroups.
Range • Used to check variability (to monitor

the process dispersion).
control • It is used to study
charts system variability .
• Plots the process range over time for
(R-charts) variables data in subgroups.
49
Mean and Range Charts
Ex: Filling water in a bottle;
there is shift in the process
(avg. mean changes: 0.59, 0.61, …)
But there is no process dispersion
(0.61. 0.62, 0.61, 0.6)
UCL
X-Chart Detects shift
LC
L
UCL
R-Chart Does not

detect shift
LC
L

Mean and Range Charts
Ex: Filling water in a bottle;
there is no shift in the process
(avg. mean = 0.6)
But there is process dispersion
0.61 and 0.59 = 0.02
0.62 and 0.58 = 0.04
0.63 and 0.57 = 0.06
UCL
x-Chart Does not

reveal increase
(mean is constant)
LCL
UCL
R-chart Reveals increase
LCL

1. Mean Chart (X-bar chart)
 In the First Approach is recommended when the process
standard deviation () is known; the control limits of the
mean chart is calculated as follows:

 Upper Control Limit (UCL) =
x  z x x = + z
n

 Lower Control Limit (LCL) = x  z x =
x - z n
Where:
= average of sample means
x
z = standard normal deviation (1,2 and 3; 3 is recommended)
= standard deviation of the sampling distribution of the means
x

x 
n
 = process standard deviation of a process
n = no. of observations per sample
52
Mean Chart (X-bar chart) -
Example
 A quality inspector took five samples, each with four
observations, of the length of time for glue to dry.
 The analyst computed the mean of each sample, all
values are in minutes.
 It is known from previous experience that the standard
deviation of the process is 0.02 minute (i.e.,  = 0.02).
 Use this information to obtain three-sigma (i.e., z = 3)
control limits for the means of future time.

Mean chart
Sample
1 2 3 4 5
1 12.11 12.15 12.09 12.12 12.09
Observation
2 12.10 12.12 12.09 12.10 12.14
3 12.11 12.10 12.11 12.08 12.13
12.11+12.10
+12.11+12.08 ) 4 12.08 12.11 12.15 12.10 12.12
/4
x 12.10 12.12 12.11 12.10 12.12
• no. of observations, n = 4
• standard deviation, z = 3
• process standard deviation,  = 0.02
• average of sample means, x =Σ x / no. of sample54
Solution
12.10  12.12  12.11  12.10  12.12
x  12.11
5

Upper Control Limit (UCL) = x  z x
x 
n
 0.02 
UCL : 12.11  3   12.14
 4 

Lower Control Limit (LCL) = x  z x
x 
n
 0.02 
LCL : 12.11  3   12.08
 4 
Control chart
UCL
12.14
x
Mean
12.11
LCL
12.08
1 2 3 4 5
Sample
Mean chart: Second Approach
The second approach is recommended when the
process standard deviation () is not known.
This approach assumes that the range is in
control.
UCL  x  A2 R
LCL  x  A2 R
Where:
A2 = A factor from table (depends on no. of observations)
R = Average of sample ranges

Factors for three sigma control limits for
X and R charts
Lower Upper
control limit control limit
58
Example
Twenty samples of n = 8 have been taken from a
cleaning operations. The average sample range
for the 20 samples was 0.016 minute, and the
average mean was 3 minutes. Determine three-
sigma control limits for this process.
Solution
x = 3 min., R = 0.016, A2 = 0.37 for n = 8
UCL  x  A2 R  3  0.37(0.016)  3.006

LCL  x  A2 R  3  0.37(0.016)  2.994 59
2. Range Control Chart (R-chart)
The R-charts are used to check variability (to
monitor process dispersion; spreading); they are
sensitive to changes in process dispersion.
Control limits:
UCL  D4 R
LCL  D3 R
Where values of D3 and D4 are obtained from
previous table

Factors for three sigma control limits for
X and R charts
Lower Upper
control limit control limit
61
R-Chart : Example
Small boxes of cereal are labeled “net weight 283
gram.” Each hour, a random sample of size 4 boxes
are weighted to check process control. Five hours of
observation yielded the following:
Time Box 1 Box 2 Box 3 Box 4

9 A.M. 9.8 10.4 9.9 10.3
10 A.M 10.1 10.2 9.9 9.8
11 A.M 9.9 10.5 10.3 10.1
Noon 9.7 9.8 10.3 10.2
1 P.M 9.7 10.1 9.9 9.9
Range 10.1 - 9.7 = 0.4 0.7 0.4 0.4
Average Sample Range = Σ R= (0.4 + 0.7 + 0.4 + 0.4) / 4 = 0.475
R-Chart: Solution
No. of observation (n) = 5, D3 = 0 and D4 = 2.11
0.4  0.7  0.4  0.4

R  0.475
4
UCL  D4 R  2.11(0.475)  1.002
LCL  D3 R  0(0.475)  0
Since all ranges are between the upper and lower

limits, we conclude that the process is in control

Using Mean and Range Charts
 Mean control charts and range control charts

provide different perspectives on a process.
 The mean charts are sensitive to shifts in process

mean, whereas range charts are sensitive to
changes in process dispersion.
 Because of this difference in perspective, both

types of charts might be used to monitor the same
process.

Using Mean and Range Charts
To use the Mean and Range control chart, apply the
following procedure:
1. Obtain 20 to 25 samples (as minimum). Compute the
appropriate sample statistics (mean and range) for each
sample.
2. Establish control limits using the formulas.
3. Determine if any points fall outside the control limits.
4. If you find no out-of-control signals, assume that the process
is in control. If not, investigate and correct assignable cause
of variation.
5. Then start again the process and collect another set of
observations upon which control limits can be based.
6. Plot the data on a control chart and check for out-of-control
signals.
65
Control Chart for Attributes
 Control charts for attributes are used when the process
characteristic is counted rather than measured. Two
types are available:
3. P-Chart (Percentage or Proportional chart)
To check proportion (percentage) of defective units in

the output of a process; good or bad, pass or fail,
operate or don’t operate (more than 1 unit)
4. C-Chart (Counted chart)
To check the number of defects (defectives) per unit
Attributes generate data that are counted.

66
P-Charts
The center line on a P-chart is the average
fraction defective in the population, P.
The standard deviation of the sampling
distribution when P is known is:
p(1  p)
p 
Where n = no. of observations
n
• Z for 99 percent of the chance
variation in the process is 3
 The Control limits • Z for 95 percent of the chance
UCL  p  z p variation in the process is 2
• Z for 90 percent of the chance
LCL  p  z p variation in the process is 1
z
= standard normal deviation 67
P-Chart
If p is unknown, it can be estimated from the samples.
in  220 formulas,
That estimates p , replaces p p
^
the previous  0.11
and  p replaces p. 20(100)
p (1  p)
^ p (1  p )
p   p  
n n
Average of the =
sample
proportions

P-Charts Laws
Average of the =
220
sample p  0.11
proportions 20(100)
The standard deviation ^ p (1  p ) 0.11
of the sampling =  p  
distribution n
220
p   0.11
•20Z ( 100
for )
99 percent of the chance
The Control limits 220
p^  variation inthe0process
.11 is 3
forp95  pof) the chance
)(1percent 0.1
UCL  p  z
• (Z100
20
 pp  variation in the process is2
n
^ p (1  p ) 0.11 (1 
LCL  p  z pp  variation in the process
• Z for 90 percent
 is 1
of the chance
n 100
z = standard normal deviation
69
P-Chart - Example
 An inspector counted the number of defective
monthly billing statements of a company telephone
in each of 20 samples.
 Using the following information, construct a control
chart that will describe 99.74 percent of the chance
variation in the process when the process is in
control. Each sample contained 100 billing
statements.
 no. of observations = 100
 Total no. of observations = 20 * 100 = 2000
 z for 99.74 percent of the chance variation is 3
70
P-Chart – Example (Cont.)
Sample # of defective Sample # of defective
1 7 11 8
2 10 12 12
3 12 13 9
4 4 14 10
5 9 15 16
6 11 16 10
7 10 17 8
8 18 18 12
9 13 19 10
10 10 20 21
Total 220 71
P-Chart – Solution
Average of sample proportions of defectives =
= 220 / 20 (100) = 0.11

The standard deviation of the sampling distribution of sample proportions =
^ p (1  p ) 0.11(1  0.11)
p   0.03
n 100
Control limits are:
^
UCL  p  z  p  0.11  3(0.0313)  0.2039
^
LCL  p  z  p  0.11  3(0.0313)  0.0161 72
P-Chart – Example
p
Average 0.11 p-Chart
0.25
Sample p
1 0.07
2 0.1
3 0.12
4 0.04 0.20
5 0.09
6 0.11
7 0.1
8 0.18 UCL = 0.2039
9 0.13 0.15
AVE = 0.1100
10 0.1
11 0.08 LCL = 0.0161
12 0.12
Sample p's
13 0.09
0.10
14 0.1
15 0.16
16 0.1
17 0.08
18 0.12 0.05
19 0.1
20 0.21
0.00
0 5 10 15 20

4. C-Chart
A c-chart is used to monitor the number of defects
per unit, not defective units.
When the goal is to control the number of
occurrences (e.g., defects) per unit, a C-chart is
used.
Units might be calls, complaints, failures per unit of
time

C-Chart
The mean (average) number of defects per unit
is c and the standard deviation is c
 Control Limits
UCL  c  z c
LCL  c  z c
 If the value of c is unknown, as is generally the
case, the sample estimate, c , is used in place of
c, where:
c = Number of defects ÷ Number of samples
UCL  c  z c UCL  c  z c
LCL  c  z c LCL  c  z c 75
C-Chart: Example
Rolls of coiled wire Sample # of Sample # of
are monitored defects defects
using c-chart. 1 3 10 1
Eighteen rolls have
been examined, 2 2 11 3
and the number of 3 4 12 4
defects per roll has
4 5 13 2
been recorded in
the following table. 5 1 14 4
Is the process in 6 2 15 2
control? Plot the
values on a C- 7 4 16 1
control chart using 8 1 17 3
three standard 9 2 18 1
deviation control
limit. 45 76
C-Chart: Solution
Average number of defects per coil = c = 45/18
= 2.5
UCL  c  3 c  2.5  3 2.5  7.24
LCL  c  3 c  2.5  3 2.5  2.24  0
When the computed lower control limit is negative,

the effective lower limit is zero.

C-Chart

Managerial consideration concerning
control charts
 At what point in the process to use control charts: at
the part of the process that (1) have tendency to go
out of control, (2) are critical to the successful
operation of the product or service.
 What size samples to take: there is a positive relation
between sample size and the cost of sampling.
 What type of control chart to use:
 Variables (measure): gives more information than
attributes
 Attributes (counts): less cost and time than variables
Managerial consideration concerning
control charts
 At what point in the process to use control charts: at
the part of the process that (1) have tendency to go
out of control, (2) are critical to the successful
operation of the product or service.
 What size samples to take: there is a positive relation
between sample size and the cost of sampling.
 What type of control chart to use:
 Variables (measure): gives more information than
attributes
 Attributes (counts): less cost and time than variables
Run test
 The control charts test for stability of the process;
the points that are too extreme to be considered
random.
 However, even if all points are within the control limits,

the data may still not reflect a random process.
 In fact, any sort of pattern in the data would suggest a

non-random process.
 The presence of patterns, such as trends, cycles, or

bias in the output indicates that assignable, or
nonrandom, cause of variation exist.
Run test
 Therefore, analyst often enhance control charts with
a run test, which checks for patterns in a sequence
of observations to detect the abnormalities in a
process.
 For this reason it is essentially to subject control chart

data to run test to determine whether patterns can
be detected.

Non-random Patterns

Run Test
 A run is defined as a sequence of observations with a
certain characteristic, followed by one or more
observations with a different characteristic.
 The characteristic can be anything that is observable.
 For example, in a series AAAB, there are two runs; a
run of three A’s followed by a run of one B.
 The series AABBBA , indicates three runs; a run of two
A’s followed by a run of three B’s, followed by a run of
one A.

Run test
 There are two types of run test:
1. Runs up and down
2. Runs above and below the median
 In order to count these runs, the data are
transformed into a series of U’s and D’s (for up and
down) and into a series of A’s and B’s (for above
and below the median).
 Ex: There are three U/D and four A/B runs for the
data:
25 29 42 40 35 38
Where the median is
- U U D D U 36.5
B B A A B A
85
Counting Runs
Counting Above/Below Median Runs (7 runs)
B A A B A B B B A A B
1 2 3 4 5 6 7
Counting Up/Down Runs (8 runs)
- U U D U D U D U U D
2 3 4 5 6 7 8
1 86
Run test procedure
 To determine whether any patterns are present in
control charts, one must do the following:
1. Transform the data into both A’s and B’s and U’s
and D’s, and then count the number of runs in each
case.
2. Compare the number of runs with the expected
number of runs in a completely random series,
which is calculated as follows:
N Where:
E ( r ) med  1
2 E(r) is the expected number of
runs
2N  1
E (r ) u / d  N is the number of samples
3
87
Run test procedure (cont.)
3. Calculate the standard deviations of the runs
as:
N 1
 med 
4
16 N  29
u/d 
90
88
Run test procedure (cont.)
4. Calculate the test statistic (Ztest) as following:
observed number of runs – expected number of runs
Z test = standard deviation of number of runs
r  E (r ) med
Z test .Med  For the median
 med If the Ztest is within ±
2; then the process is
r  E (r )u / d
Z test .u / d 
random (accepted);
u/d Up and down otherwise, it is not

random
Where:
r is the number of runs 89
Run test
A sampling distribution for runs is used to

distinguish chance variation from patterns
90
Run test – Example (1)
Twenty sample Sample Mean Sample Mean
means have been 1 10 11 10.7
taken from a process.
2 10.4 12 11.3
The means are
shown in the 3 10.2 13 10.8
following table. 4 11.5 14 11.8
Use median and 5 10.8 15 11.2
up/down run test with 6 11.6 16 11.6
z = 2 to determine if
assignable causes of 7 11.1 17 11.2
variation are present. 8 11.2 18 10.6
Assume the median 9 10.6 19 10.7
is 11. 10 10.9 20 11.9
91
Run test: Solution
median is 11
sample mean A/B U/D Sample Mean A/B U/D
1 10 B - 11 10.7 B D
2 10.4 B U 12 11.3 A U
3 10.2 B D 13 10.8 B D
4 11.5 A U 14 11.8 A U
5 10.8 B D 15 11.2 A D
6 11.6 A U 16 11.6 A U
7 11.1 A D 17 11.2 A D
8 11.2 A U 18 10.6 B D
9 10.6 B D 19 10.7 B U
10 10.9 B U 20 11.9 A U
92
Run test: Solution (cont.)
1. A/B: 10 runs; rmed = 10 and U/D: 17 runs; ru/d = 17
2. Expected number of runs for each test is:
N 20
E (r ) med  1   1  11
2 2
2 N  1 2(20)  1
E (r ) u / d    13
3 3
3. The standard deviations are:
N 1 20  1
 med    2.18
4 4
16 N  29 16(20)  29
u/d    1.8
90 90 93
Run test: Solution (cont.)
4. The ztest values are:
The median test doesn’t
reveal any pattern,
r  E ( r ) med
Z test  because its (Zmed) value is
 med within ±2 but, the (Zu/d)
r  E (r )u / d its value exceed +2.
Z test 
u/d Consequently, nonrandom
variations are probably
present in the data and,
10  11
Z med   0.46 hence, the process is not
2.18 in control
17  13
Zu / d   2.22
1.8
94
Run test – Example (2)
 The number of defective items per sample for 11 samples is
shown below. Assume the median is 21.
 Determine if nonrandom patterns are present in the
sequence.
Sample Defectives Sample Defectives
1 22 7 21
2 17 8 17
3 19 9 23
4 25 10 23
5 18 11 24
6 20
95
Run test: Solution
median is 21
Sample Mean A/B U/D
1 22 A -
E(r)med = N /2 + 1 = 11/2 + 1
2 17 B D
= 6.5
3 19 B U
4 25 A U
E(r)u/d = (2N - 1) / 3
5 18 B D
= (22 - 1) / 3
6 20 B U
=7
7 21 TIE U
8 17 B D
9 23 A U
10 23 A TIE
11 24 A U
96
Sample Mean A/B U/D Sample Mean A/B U/D
1 22 A - 1 22 A -
2 17 B D 2 17 B D
3 19 B U 3 19 B U
4 25 A U 4 25 A U
5 18 B D 5 18 B D
6 20 B U 6 20 B U
7 21 U 7 21 U
B A
8 17 B D 8 17 B D
9 23 A U 9 23 A U
10 23 A U 10 23 A D
11 24 A U 11 24 A U
(r)med = 5 (r)u/d = 6 (r)med = 7 (r)u/d = 8
97
In the Above/Below test
1 22 A - 1 22 A -
2 17 B D 2 17 B D
3 19 B U 3 19 B U
4 25 A U 4 25 A U
5 18 B D 5 18 B D
6 20 B U 6 20 B U
7 21 U 7 21 U
B A
8 17 B D 8 17 B D
9 23 A U 9 23 A U
10 23 A U 10 23 A D
11 24 A U 11 24 A U
(r)med = 5 E(r)med = 6.5 (r)med = 7
6.5 - 5 =1.5 7 - 6.5 = 0.5
The resulting difference between the observed and expected number of runs is as
large
Operations as possible,
Management in such
– Dr. Nevien Farouk a manner
Khourshed - AASTMT that z test is as large as possible
98
In the up/down test
1 22 A - 1 22 A -
2 17 B D 2 17 B D
3 19 B U 3 19 B U
4 25 A U 4 25 A U
5 18 B D 5 18 B D
6 20 B U 6 20 B U
7 21 U 7 21 U
B A
8 17 B D 8 17 B D
9 23 A U 9 23 A U
10 23 A U 10 23 A D
11 24 A U 11 24 A U
(r)u/d = 6 E(r)u/d = 7 (r)u/d = 8
7- 6=1 8-7=1
The resulting difference between the observed and expected number of runs is as
large
Operations as possible,
Management in such
– Dr. Nevien Farouk a manner
Khourshed - AASTMT that z test is as large as possible.
99
 med 
N 1 r  E ( r ) med
Z test 
4  med
r  E (r )u / d
u/d 
16 N  29 Z test 
90 u/d
Each test has a z-value that is within the range of 2.00 and -2.
Therefore, the data are random.
100
X and R-Chart : Example
1 2 3 4 5
1 12.11 12.15 12.09 12.12 12.09
2 12.10 12.12 12.09 12.10 12.14
3 12.11 12.10 12.11 12.08 12.13
4 12.08 12.11 12.15 12.10 12.12
12.10 12.12 12.11 12.10 12.12

You may use
SPSS to
calculate
Run Test

The Ztest is within ±
2; then the process is
random (accepted);
105
Process Capability
 Once the stability of a process has been established
(random variations may present).
 It is necessary to determine if the process is capable
of producing output that is within an acceptable range.
 Because, the output of a process may or may not
conform to the specifications, even though the process
may be statistically in control.
 Specifications: Range of acceptable values established
by engineering design or customer requirements.
 That’s why it is important to take into account the
Capability of a Process.
106
Capability analysis
 Capability analysis is the determination of whether the

natural variability in the output of a process falls within
the acceptable range of variability allowed by the
design specification for the process output.
 If it is within the specifications, the process is said to

be “capable.” if it is not, the manager must decide how
to correct the situation.
107
Capability analysis
 We cannot automatically assume that a process that is
in control will provide desired output. Instead, we must
specifically check whether a process is capable of
meeting specifications and not simply set up a control
chart to monitor it.
 A process should be both in control and within

specifications before production begins.
108
Process Capability
Lower Upper
Specification Specification
A. Process variability
matches specifications
Lower Upper
B. Process variability
Lower Upper
within specifications Specification Specification
Out of
specifications
C. Process variability
exceeds specifications
109
Process Capability - Example
Mean
A
Cp = A divided
B by B
Limit Limit
+1 +2 +3 +4 +5 +6
Cp = A (specification width) divided Example :

by B (process width) USL  LSL The bell curve is your automobile.
Cp 
6 A is the edges of your garage door.
A = Distance from process mean to If A = B…..then you are hitting the frame of
closest spec limit your garage door with your car.
(A bigger “A” and a smaller “B”)
B = 3 Standard Deviations
…means BETTER “Process Capability”
(also called “3 Sigma”)
110
3 Sigma and 6 Sigma Quality
Lower Upper
specification specification
As if we say
mg/kg 1.33 ppm 1.33 ppm
1.7 ppm 1.7 ppm
extremely Process
small mean
probability of +/- 3 Sigma
getting any
output not
+/- 6 Sigma
within the
design
specifications 111
Process Capability Ratio
 Calculate the Process Capability ratio (Cp)
USL  LSL specification width

Cp  =
6 process width
The process is
USL= The Upper Specification Limit
LSL = The Lower Specification Limit capable if Cp is at
σ = The population standard deviation
least 1.33
112
Capability analysis: Example
A manager has the option of using any one of
three machines for a job. The machines and their
standard deviations are listed below. Determine
which machines are capable if the specifications
are 10 mm and 10.8 mm.
Machine Standard deviation (mm)

A 0.13
B 0.08
C 0.16
113
Capability ratio: Example
 LSL = 10 mm; USL = 10.8 mm;
 Specification width = USL - LSL = 10.8 – 10 = 0.8
Machine Standard Cp Capable

deviation USL  LSL
Cp 
(mm) 6
A 0.13 0.8/(6*0.13) = 1.03 No

B 0.08 0.8/(6*0.08) = 1.67 Yes
C 0.16 0.8/(6*0.16) = 0.83 No
Only machine B is capable because its ratio exceed 1.33

114
Machine Standard
deviation
A 0.13
B 0.08
C 0.16
Machine B is capable because its ratio exceed 1.33
115
Cpk ratio
 If a process is not centered (the mean of the process is
not in the center of the specification).
116
Cpk ratio
 If a process is not centered (the mean of the process is
not in the center of the specification), a more
appropriate measure of process capability is the Cpk
ratio.
 The Cpk is equal the smaller of:
 Upper specification limit (USL) =

And
 Lower specification limit (LSL) =
And greater than 1.33

117
The smaller of the two ratios is 1.44 (greater than 1.33), so this is
the Cpk . Therefore, C Ratio
pk the process is capable.
 Example
A process has a mean (Process mean) of 9.2 grams
and a standard deviation () of 0.3 grams. The lower
specification limit (LSL) is 7.5 grams and upper
specification limit (USL) is 10.5 grams. Compute Cpk
Solution
1. Compute the ratio for the lower specification
9.2  7.5 1.7
  1.89
3(0.3) 0.9
2. Compute the ratio for the upper specification:

10.5  9.2 1.3
  1.44
3(0.3) 0.9 118
Improving Process Capability
Method Examples
Simplify Eliminate steps, reduce number of parts
Standardize use standard parts, standard procedure
Make mistake- Design parts that can only be assembled the
proof correct way; have simple checks to verify a
procedure has been performed correctly
Upgrade Replace worn-out equipment; take advantage
equipment of technological improvements
Automate Substitute processing for manual processing
119
Summary
• Quality Management - Quality Contributors, Determinants
of Quality, Basic Tools of Quality
• Quality Assurance - Phases of Quality Assurance
• Inspection (Before production, During production, After
production)
 The basic issues of inspection are:
 How much to inspect and how often
 At what points in the process inspection should occur.
 Whether to inspect in a centralized or on-site location.
 Whether to inspect Attribute or Variable.
 Statistical Process Control:
 Statistical evaluation of the output of a process during
production
120
Summary
 Process Variability
 Random variation
 Assignable variation (Nonrandom)
 SPC Tools: Control Chart
 Control Charts for Variables
 Control Chart for Attributes
3. P-Chart
4. C-Chart
 Run test
 Process Capability
121

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Quality

Operations Management – Dr. Nevien Farouk Khourshed - GSB - AASTMT 1

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 2

 Different meaning could be attached to the word

 The word Quality does not mean the Quality of

 “Quality” is the ability of a product or service to

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 4

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 5

• The idea of quality did not stop at the management

• The term ‘total quality’ was referred to wider issues

Management • customer focus, the involvement of all employees,

• In 1988 a Malcolm Baldrige Award was developed

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 7

Yoshio Kondo (1910-1990)

Taiichi Ohno (1912-1990)

Marketing and Determine customer needs and communicate them to appropriate

 Often people might state that a product is of good

 The degree to which a product or a service

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 11

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 13

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 14

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 16

 Also called: defect concentration diagram

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 17

Day Time Type of defect total

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 18

 Also called: Scatter plot, X–Y graph

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 20

20% 80% line

Quality Quality Invoice Packing Wrong Other

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 25

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 26

 If results are acceptable no further action is

 Unacceptable results call for correction action

 Quality control is concerned with the quality of

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 27

Acceptance Process Continuous

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 28

 The basic issues of inspection are:

1. How much to inspect and how often?

2. At what points in the process inspection should occur?

3. Whether to inspect in a centralized or on-site location?

4. Whether to inspect Attribute or Variable?

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 29

 The amount of inspection can range from no

 Low-cost, high volume items; such as, paper clips

1. the cost associated with passing defective items is

2. the process that produce these items are usually

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 30

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 32

Type of Inspection Characteristics

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 34

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 35

 Statistical Process Control:

 Statistical evaluation of the output of a process

• Common or natural variations in the

Assignable • A special variation whose source

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 40

 The sampling distribution shows much less

 The sampling distribution has the same mean as

 The sampling distribution is a normal distribution

Operations Management – Dr. Nevien Farouk Khourshed - AASTMT 41

 Sampling distribution: A theoretical distribution that