Special Topics in

Industrial Statistics
October 14, 2020
I. Introduction to Statistical Quality Control
• Statistical Quality Control
• Chance and Assignable Causes of Variation
• The Basic Principles of Control Charts
• Control Limits
• Sample Size and Sampling Interval
• Rational Subgroups
• Patterns on Control Charts
1.1 Statistical Quality Control
Definition.

Quality means conformance to specifications, fitness for use, value for the
price paid, support services, and psychological criteria (Montgomery, 2013;
Charantimath, 2017). On the other hand, as Montgomery (2013) cited, quality is
inversely proportional to variability.
Quality is when a product delivers what is stipulated in its specifications
(Black, 2001). It also refers to how it satisfies its users' needs and preferences
(McClave, Benson, & Sincich, 2000).
Quality is characterized by a constant change in the production process in
terms of products, people, processes, environments, and even services that meet
or exceed expectations in the present and future requirements continuously to
help produce superior value (Charantimath, 2017; Goetsch & Davis, 2014;).
The quality of a product refers to some property such as the following:

• one-quarter of an inch in diameter of a pencil,

• tensile strength of the bolt,

• the thickness of compact disks,

• breaking energy of tire,

• yarn strength,

• sliding speed of disk-type,

• the density of yarn, etc.

Examples of applications of statistical quality control in industries are:
• Food-processing company. The production of potato chips, prawn crackers,
magic-flakes crackers, etc. are packaged and sold by weight. Samples are
inspected by taking sample bags of these products and counting the number
of chips in each pack.
• Toy-manufacturing company. Production of small plastic whistles ascertained
in grams. Samples are inspected and selected by taking the weight of each
whistle.
• Pencil manufacturing. Part of a quality control effort was to determine
whether the pencils complied or out of compliance with specifications (e.g.,
soft, hard, light, or dark).
• Light bulb manufacturing. A sample of bulbs is selected for inspection for
nonconformances such as scratches, weak or broken filaments, incorrectly
bored turns, insufficient outside contacts, and others.
Garvin’s Quality Dimensions

Dimension Definition
Performance Primary product operating characteristics

Reliability Consistency of performance over time

Durability The useful life of product/service

Serviceability Resolution of problems and complaints

Aesthetics Sensory characteristics/appearance

Features Secondary characteristics added features

Perceived Quality Past performance and other intangibles

Conformance to Standards Meeting specifications or industry standards

Example. Garvin’s Quality Dimensions

Dimension Slide Projector

Performance The brightness of the picture

Reliability Average time for the unit to fail

Durability Includes Repair

Serviceability Ease of repair

Aesthetics Exterior finish

Features Remote control

Perceived Quality Being ranked first

Conformance to Standards Workmanship

Quality Control
• Quality control is made up of a series of inspections, testing production
processes, process control, and measurements to establish that the industry’s
quality output meets or exceeds the standards set forth. Thus, if quality
standards are not being met, corrective or preventive action can be achieved to
maintain conformance (Anderson, Sweeney, & Williams, 2007).
• Quality control is a term used to denote the concept of product-oriented,
which further means focuses on defect identification and is designed to detect
problems with a product or service (Webber & Wallace, 2007).
• Quality control is a method for charting process inspection data so that visual
indication is given of the product's quality as it is being manufactured, thereby
enabling corrective action to be taken as soon as production processes begin to
go wrong with the production process (Rissik, 1947).
1.2 Chance and Assignable Causes of Variation
• Chance cause variation is known as common cause variation or natural cause
variation, while the assignable cause of variation is known as a special cause of
variation.
• Is inherent in a process over time in any particular scheme of production and
inspection. This type of variation is coined as a natural variation or allowable
variation. That is, they affect the outcome of the process (Sower, 2014).
• Is randomly occurring which is beyond the control that cannot be prevented or
eliminated under any circumstance, and this the process does not need to be
adjusted. These common causes of variation that behave randomly are allowed
within the range of variation known as natural tolerance. Occurrences such as in:
materials, temperature, humidity, lack of perfection of each machine, lack of
perfection among the personnel, measurements that are not overly exact yet
acceptable.
1.2 Chance and Assignable Causes of Variation
• Variation attributed to any production process due to non-random or the so-
called assignable causes and is also termed as preventable variation; thus, to
eliminate, the action is taken on specific issues within the process
(Mundwiller, 2018).
• Mechanisms such as adjustment or preventive correction should be
considered as soon as possible for errors encountered due to tools failure,
incorrect equipment settings, poor raw materials, human error, and the
production process (Anderson, Sweeney, & Williams, 2007).
• Examples of assignable cause of variation are (Selvamuthu & Das 2018;
Mundwiller, 2018): defective raw material, faulty equipment, improper
handling of machines, negligence of operators, unskilled technical staff, data
entry or measurement error, machine breakdown, lack of operator training,
• If assignable causes are identified, we conclude that the process is out of control. In
that case, corrective action should be taken to bring the process back to an
acceptable quality level.
• However, if the causes of variation in the output of a production process are due to
natural variation, then the process is in statistical control, or simply in control; in
such cases, no changes or adjustments are necessary (Anderson, Sweeney, &
Williams, 2007).

• Example 1 (Allen, 2006). A retail executive is interested in benchmarking theft at

five outlets prior to the implementation of new corporate anti-theft policies. List
one possible source of common cause variation and assignable cause variation.

• Possible Answer: Lone customers and employees stealing small items from the floor
or warehouse contribute to common cause variation. A conspiracy of multiple
employees systematically stealing might be terminated by local management.
1.3 The Basic Principles of Control Chart
• Control chart is a graphical device used to monitor a measurable characteristic
of a process to establish whether the process operates within its limits of
expected variation. Commonly used tools in process detection to improve the
quality of manufacturing processes.
• Control charts are very popular for the following reasons (Montgomery, 2013):
1. Are a proven technique for improving productivity.
2. Are useful in defect prevention.
3. Prevent unnecessary process adjustments.
4. Provide diagnostic information.
5. Provide information about process capability.
• Control Charts for Variables
• Control Charts for Attributes
Control Charts for Variables

• Variable characteristic is made of an actual measurable quality characteristic.

As such, control charts based on data measured on a continuous scale are
called variable control charts (Anderson, Sweeney, & Williams, 2007).

• Examples are: length, diameter, width, density, chemical composition, mass,

percent impurity, weight such as package content, voltage, time, substance or
luminous intensity, height, thickness, hardness, temperature, tensile
strength, angle bend, ultimate strength, corrosion resistance, etc.
Control Charts for Attributes

• Attribute characteristic refers to the acceptable or unacceptable classification

of products. As used in quality control, the term attribute refers to those
quality characteristics that conform to specifications or do not conform to
specifications (Besterfield, 2001).

• Examples as such are the following inspection of nonconformances in

industries: the number of imperfections per yard of yarn, the number of
blemishes in the coat of paint of new automobiles, the number of defects in
rolls of wallpaper, the number of defective items of windshield wipers,
numbers of conformities in bolts for use in cars, the number of imperfections in
a piece of cloth, etc.
The Control Chart

• The centerline usually represents the computed average value of the quality
measurable characteristics or attributes correspond to the in-control state
process.
• The other two other horizontal lines are called the upper control limit (UCL)
and lower control limit (LCL).
Decisions and State of Process (Anderson, Sweeney, & Williams, 2007;
Selvamuthu & Das 2018)

• Type I error is made when the null hypothesis (Ho) is correct, but the
alternative hypothesis (H1) is chosen.
• Type II error is made when the alternative hypothesis (H1) is correct, but the
null hypothesis ((Ho) is accepted.
1.4 Control Limits
Decision analysis of state production process of control chart involves the
following risk:
• Widening the control limits. The risk of type I error is decreased, while the
risk of type II error is increased.
• Narrowing the control limits. The risk of type I error is increased, while the
risk of type II error is decreased.
There are two sets of limits on control charts:
• Action limits. This refers to the outer limits, usually at three-sigma, when a
point plots beyond this limit.
• Warning limits. This refers to the inner limits, usually at three sigmas or within
two standard deviations from the centerline. If at least one more point falls
between the warning limits and control limits or very close to the warning
limit, the process may not operate properly.
Example of a control chart with two-sigma and three-sigma warning limits
1.5 Sample Size and Sampling Interval
• The sample size and the frequency of sampling are specified in designing the
control chart. Larger samples are easier to discover small shifts in the
production process.
• The likelihood of detecting a shift in the production process increases as the
sample size n increases. So, when choosing the sample size, we must keep in
mind the size of the shift we are trying to detect.

• If the process shift is relatively large, we use smaller sample sizes than those
employed if the shift of interest were relatively small.

• The sampling interval is desirable in any situation of a process, taking small

samples at short intervals or larger samples at longer intervals.
• The average run length (ARL) of the control chart refers to the average number of
points that must be plotted before a point indicates an out-of-control condition. ARL
1
can be calculated as 𝐴𝑅𝐿 = , where p is the probability that any point exceeds the
𝑝
control limits. This equation can be used to evaluate the performance of the control
chart.
• Example 1. For the chart with three-sigma limits, p = 0.0027 is the probability that a
single point falls outside the limits when the process is in control.
• Therefore, the ARL of the control chart when the process is in control is 370. Even if the
process remains in control, an out-of-control signal will be generated every 370
samples.
• The average time to signal (ATS) is occasionally used to determine the control chart's
performance if samples are taken at fixed intervals of hours apart. Usually, expressed in
equation as ATS = ARLh.
• Example 2. Regarding example 1, and suppose we are sampling every hour, this will
indicate that we will have a false alarm about every 370 hours on the average.
1.6 Rational Subgroups
• A rational subgroup is a collection of sample data produced under conditions
in which only random effects are responsible for the observed variation.
• The within-subgroup variation is used to determine the control limits, while
between-subgroups variation is used to evaluate long-term stability.
There are two general approaches to constructing rational subgroups:
1. Instant-time method. This method refers to the consecutive production
units where subgroup samples are selected simultaneously or one instant of
time.
2. Period-of-time method. This method refers to selecting products produced
over a period that is representative of all the products.
• The rational subgroup concept is essential. The proper selection of samples
requires careful consideration of obtaining as much useful information as
possible from the control chart analysis (Montgomery, 2013).
1.7 Patterns on Control Chart

• The control charts are analyzed to decide whether the manufacturing process
is under control or out of control. The following one or more incidents
indicate the process to be out of control or the presence of assignable
variation (Selvamuthu & Das, 2018; Montgomery, 2013; Black, 2001).

1. A point falls outside any of the control limits.

1.7 Patterns on Control Chart
2. Eight consecutive points fall within 3σ limits.

3. Two out of three consecutive points fall beyond 2σ limits.

1.7 Patterns on Control Chart
4. Four out of five consecutive points falls beyond 1σ limits.

5. Presence of upward or downward trend.

1.7 Patterns on Control Chart
6. Presence of cyclic trend.
 Activity No. 1
Deadline: Email on October 21, 2020.
Format: Word File
File Name: Stat333_Activity1_Name (e.g. Stat333_Activity1_GalosThea)
1. Based on your understanding, explain the following concepts:

1.1 quality,
1.2 quality control,
1.3 statistical quality control.
2. On the state of production process, discuss the ramifications about the
type I and type II error.
3. Explain the risks of Type I error and Type II error in terms of control limits.
4. Discuss the two general approaches to constructing rational subgroups.
5. Study the following industrial problems and determine one possible cause
of variability for common cause variation and assignable cause of variation.
Briefly explain your answer.

5.1 Safety comes first during production because of the risk of accidents
so high that workers should not be complacent.
5.2 Industrial works are voluminous and complicated, and without
proper communication, the process of operations might fails.
6. Suggest how you could implement a process to create quality for the
customer through quality control for the following products based on
Garvin’s quality dimensions.

6.1 Car
6.2 Cellphone
7. Study the following problems. Determine the appropriate control chart. Briefly justify
your answer.

7.1 The quality control staff randomly inspected and checked samples by
weighing five cans of sardines each hour. The average weight was recorded
along with the weight of the most massive and lightest can.
7.2 A soft-drink bottler inspector independently checks each case of soft-drinks for
chipped or cracked bottles before the cases leave the bottling plant.
7.3 The manufacturer of football uses a machine to inflate its new balls
to a pressure of 13.5 pounds.
7.4 Samples of 9-volt batteries are taken at 40-minute intervals during a
production run. Each sample consists of 3 batteries, and a technician
records how long (in minutes) each battery will produce 500
amperes during a standard test.
7.5 Automobiles are randomly selected for a close examination for fit- and-finish
defects, including such items as dirt specks in the paint and panels that are not
correctly aligned.
8. Examine the following control charts. Discuss any all control problems that
may be apparent from these control charts.