Operations Management II (ORM2BJ[D]22-3)

Session 19 → Quality Management and Control

(Continued)
Process Capability Index

◼ Shows how well parts being produced fit into design limit
specifications

CP = (USL – LSL) / 6

 X − LSL USL - X 
C pk = min or 
 3 3 

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Process Capability Index – Contd.

Cpk = negative number

Cpk = zero

Cpk = between 0 and 1

Cpk = 1

Cpk > 1

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Types of Statistical Sampling

◼ Attribute (overall acceptable or not)

◼ Defectives refers to the acceptability of product across a
range of characteristics
◼ p-chart application (p for proportion)
◼ Defects refers to the number of defects per unit which
may be higher than the number of defectives
◼ c-chart application (c for count)

◼ Variable (Continuous)
◼ Uses actual dimensions
◼ Usually measured for the mean and range TOGETHER
◼ x-bar-Chart and R-Chart applications (x-bar-Chart for
mean and R-Chart for range)
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General Statistical Principle of Control
Charts

◼ Statistic that measure quality characteristic → w

◼ Historical Mean of w → 𝜇𝑤
◼ Historical Variance of w → 𝜎𝑤2

◼ Then
◼ Central line = 𝜇𝑤
◼ Upper Control Limit (UCL) = 𝜇𝑤 + 𝑧𝜎𝑤
◼ Lower Control Limit (LCL) = 𝜇𝑤 − 𝑧𝜎𝑤

◼ In general → Choose z = 3

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Example – p-chart

◼ Assume → Every hour sample is collected

◼ Each sample set represents → 100 OBSERVATIONS
◼ Also called Subgroup size

Sample Sample Sample

No. of defectives No. of defectives No. of defectives
Set Set Set
1 4 6 11 11 8
2 10 7 10 12 12
3 12 8 22 13 9
4 3 9 13 14 10
5 9 10 10 15 21

◼ CALCULATE → Fraction defective for each sample set

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Example – c-chart

◼ Assume → Every hour sample is collected

◼ Each sample set represents → ONE sample
◼ Also called Subgroup size

Sample Sample Sample

No. of defects No. of defects No. of defects
Set Set Set
1 4 6 11 11 8
2 10 7 10 12 12
3 12 8 22 13 9
4 3 9 13 14 10
5 9 10 10 15 21

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Attribute Control Limits

◼ Defective Proportion chart (𝑝 chart)

Total number of defectives
◼ 𝜇𝑝 = 𝑝ҧ =
Total observations studied
𝑝ҧ 1 −𝑝ҧ
◼ 𝜎𝑝 =
𝑛
◼ Max UCL = 1, Min LCL = 0

◼ Defect number chart (𝑐 chart)

Total number of defects
◼ 𝜇𝑐 = 𝑐 ҧ =
Total samples studied
◼ 𝜎𝑐 = 𝑐ҧ
◼ Min LCL = 0

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Solution Format – p-chart

◼ For p-chart
◼ n= 𝑝ҧ =
ҧ
𝑝(1− 𝑝)ҧ
◼ 𝜎𝑝 =
𝑛
◼ UCL =
◼ LCL =
◼ Out of control →
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Solution Format – c-chart

◼ For c-chart
◼ 𝑐ҧ =
◼ 𝜎𝑐 = 𝑐 ҧ =

◼ UCL =
◼ LCL =
◼ Out of control →
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Solution – p-chart and c-chart

◼ For p-chart
164
◼ n = 100; 𝑝ҧ = = 0.1093
15×100
ҧ
𝑝(1− 𝑝)ҧ
◼ 𝜎𝑝 = = 0.000974 = 0.0312
𝑛
◼ UCL = 0.1093 + 3×0.0312 = 0.2029
◼ LCL = 0.1093 – 3×0.0312 = 0.0157
◼ Out of control → Sample set 8 and 15
◼ For c-chart
164
◼ 𝑐ҧ = = 10.933; 𝜎𝑐 = 𝑐ҧ = 10.933 = 3.3066
15
◼ UCL = 10.933 + 3×3.3066 = 20.8528
◼ LCL = 10.933 – 3×3.3066 = 1.0132
◼ Out of control → Sample set 8 and 15 Dipankar Bose - XLRI
 P Chart of No of Defectives
0.25
1
1

0.20 UCL=0.2030
Proportion

0.15
_
P=0.1093
0.10

0.05
LCL=0.0157
0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Sample Dipankar Bose - XLRI

 C Chart of No of Defects
25
1
1
UCL=20.85
Sample Count

20

15
_
C=10.93
10

5
LCL=1.01
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Sample Dipankar Bose - XLRI
Example – x-bar-chart and R-chart

◼ Assume → Every hour sample is collected

◼ Each sample set represents → 4 OBSERVATIONS
◼ Also called Subgroup size
COLLECT Sample set
Observation 1 2 3 4 5
1 12.82 12.94 12.16 12.55 12.60
2 12.87 12.85 12.92 12.66 12.91
3 12.45 12.61 12.34 12.50 12.40
4 12.45 12.32 12.63 12.65 12.89
CALCULATE → For each same set
X-bar 12.6475 12.68 12.5125 12.59 12.7
Range 0.42 0.62 0.76 0.16 0.51
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x-bar and R charts

◼ x-bar-Chart calculations (z = 3)
 z 
UCL = x +  R = x + A 2 R

 d2 n 
 z 
LCL = x -  R = x - A 2 R

 d2 n 
◼ R-Chart calculations (z = 3)
 d3 
UCL = 1 + z R = D 4 R

 d2 
 d3 
LCL = 1 - z R = D 3 R
 d2 
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 Variable Control Chart Factors

n A2 d2 d3 D3 D4 n A2 d2 d3 D3 D4
2 1.88 1.128 0.853 0 3.276 14 0.235 3.407 0.762 0.329 1.671
3 1.023 1.693 0.888 0 2.575 15 0.223 3.472 0.755 0.348 1.652
4 0.729 2.059 0.88 0 2.282 16 0.212 3.532 0.749 0.364 1.636
5 0.577 2.326 0.864 0 2.115 17 0.203 3.588 0.743 0.379 1.621
6 0.483 2.534 0.848 0 2.004 18 0.194 3.64 0.738 0.392 1.608
7 0.419 2.704 0.833 0.076 1.924 19 0.187 3.689 0.733 0.404 1.596
8 0.373 2.847 0.82 0.136 1.864 20 0.18 3.735 0.729 0.414 1.586
9 0.337 2.97 0.808 0.184 1.816 21 0.173 3.778 0.724 0.425 1.575
10 0.308 3.078 0.797 0.223 1.777 22 0.167 3.819 0.72 0.434 1.566
11 0.285 3.173 0.787 0.256 1.744 23 0.162 3.858 0.716 0.443 1.557
12 0.266 3.258 0.778 0.284 1.719 24 0.157 3.895 0.712 0.452 1.548
13 0.249 3.336 0.77 0.308 1.692 25 0.153 3.931 0.709 0.459 1.541

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Solution Format
X-bar 12.6475 12.68 12.5125 12.59 12.7
Range 0.42 0.62 0.76 0.16 0.51
◼ n= z=3
◼ Here x-double-bar = 12.626; R-bar = 0.494
◼ For x-bar chart n A2 d2 d3 D3 D4
z
◼ UCL = xധ + ഥ=
R 4 0.729 2.059 0.88 0 2.282
d2 n
z
◼ LCL = xധ − ഥ=
R
d2 n
◼ Out of control →
◼ For R chart
d3
◼ UCL = 1 + z ഥ=
R
d2
d3
◼ LCL = 1 − z ഥ=
R
d2
◼ Out of control →
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Solution – x-bar-chart and R-chart

◼ Here n = 4 (number of observations); z = 3

◼ Here x-double-bar = 12.626; R-bar = 0.494
◼ For x-bar chart
z 3
◼ UCL = xധ + ഥ = 12.63 +
R × 0.49 = 12.987
d2 n 2.059 4
z 3
◼ LCL = xധ − ഥ = 12.63 −
R × 0.49 = 12.273
d2 n 2.059 4
◼ Out of control → None of x-bar values
◼ For R chart
d
◼ UCL = 1 + z 3 R ഥ = 1 + 3 0.880 × 0.49 = 1.118
d2 2.059
d3 0.880
◼ LCL = 1 − z ഥ = 1−
R 3 × 0.49 = −0.138 ≈ 0
d2 2.059
◼ As negative value is not possible for Range
◼ Out of control → None of Range values Dipankar Bose - XLRI
 Xbar-R Chart of Obs 1, ..., Obs 4
13.0
Sample Mean

UCL=12.9859

12.8
__
X=12.626
12.6
12.4
LCL=12.2661

1 2 3 4 5
Sample

1.2
Sample Range

UCL=1.127

0.8
_
R=0.494
0.4
0.0 LCL=0

1 2 3 4 5
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Some Important Notes from Deming-
Juran-Crosby Article
◼ What are “common causes” and “special causes”?
◼ Which helps in quality improvement?
◼ Deming Point 8 → Drive out fear…Why?
◼ Deming and Juran concepts
◼ When workers are responsible for mistakes?
◼ Juran → Why “quality control engineers” are necessary?
◼ Crosby → Why “quality is free”?
◼ Importance of ZERO defect
◼ Also
◼ Deming’s Chain Reaction
◼ Juran’s Trilogy
◼ Crosby’s Quality Management Maturity Grid
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