TQM MONITORING AND

CONTROLLING
STATISTICAL PROCESS CONTROL (SPC)

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 Introduction to Statistics
The Mean
The sample mean is the average and is computed as the
sum of all the observed outcomes from the sample divided
by the total number of events. We use x as the symbol for
the sample mean. In math terms,

where n is the sample size and the x correspond to the

observed valued.

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 Mean
Example
Suppose you randomly selected 10 house prices in
Kuala Lumpur area. Your are interested in the typical
house price. In RM100,000 the prices were

2.7, 2.9, 3.1, 3.4, 3.7, 4.1, 4.3, 4.7, 4.7, 40.8

Mean = 2.7, 2.9, 3.1, 3.4, 3.7, 4.1, 4.3, 4.7, 4.7, 40.8
10
= 7.1

The sample mean or the average house price is RM 710,000

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 Mode

The mode of a set of data is the number with the

highest frequency.

In the above example 4.7 is the mode, since it

occurs twice and the rest of the outcomes occur
only once.

The sample mode or the highest frequency house

price is RM 470,000.

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 Median
The median is the middle score. If we have an even number
of events we take the average of the two middles. The
median is better for describing the typical value. It is often
used for income and home prices. From the same example,
since it is an even number of data therefore the median is:

3.7 + 4.1 = 3.9

2
The median house price is $390,000.

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 Mean or Median
One problem with using the mean, is that it often does not
depict the typical outcome. If there is one outcome that is
very far from the rest of the data, then the mean will be
strongly affected by this outcome. Such an outcome is
called and outlier. An alternative measure is the median.
A closer look at the data in the previous example shows
that the house valued at 40.8 x $100,000 = $4.08 million
skews the data. The average house price of RM710,000
does not reflect the price for available housing in Kuala
Lumpur (Though the number is true). In this case the
median house price of $390,000, better reflects what house
shoppers should expect to spend.

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 Variance
We define the variance to be

Variance of random variable/probability distribution,

or sample is one measure of statistical dispersion,
averaging the squared distance of its possible
values from expected value (mean)

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 Standard Deviation
The standard deviation to be

Is a simple measure of the variability or dispersion of

a data set. It is the square root of the variance

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 Statistical Process Control

Statistical Process Control (SPC):

Statistical evaluation of the output of a process
during production
Indirect monitoring of the conditions of the
process by sampling the output
Objective: Is the process in-control?

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 Statistical Process Control
Variations and Control
Random variation: Natural variations in the
output of process, created by countless minor
factors
Assignable variation: A variation whose source
can be identified
In-control: random variations only
Out-of-control: random and assignable
variations
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 A Typical Control Chart

Out of
Abnormal variation control
due to assignable sources
UCL

Normal variation Mean

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

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 Statistical Process Control
• The Control Process (Steps to Plot SPC-Chart)
1. Define: establish control limits
2. Measure: take a sample and measure the units in the sample
3. Compare to a standard: compare the sample results against the
control limits
4. Evaluate:
• If the sample results are within the limits, in-control;
• otherwise, out of control, go on to the next step
5. Take corrective action: investigate the cause of deviation and
take corrective actions if necessary
6. Evaluate corrective action and go back to step 2.

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 A Typical Control Chart - Steps
1. Set standards 4. Evaluate:
2. Measure & Out-of-control
3. Compare
UCL

Mean
4. Evaluate:
in-control
LCL

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Sample number

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Observations from Sample Distribution
Each sample is taken
from a distribution
UCL

LCL

1 2 3 4
Sample number
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 In-Control vs. Out-of-Control

In-control: random variations only, mean (µ)= 0, σ = 1

-6 -4 -2 0 2 4 6 8
-6 -4 -2 0 2 4 6 8
In-Control Shifted
In-Control by 2 Shifted
Shifted by 2 by 4
In-Control

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 Out-of-Control: Shift of the Mean

Out-of-control: shift of the mean

-6 -4 -2 0 2 4 6 8

In-Control Shifted by 2

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 Out-of-Control: Increase of Standard
Deviation
Out-of-control: increase of standard deviation, σ = 2

-6 -4 -2 0 2 4 6

In-Control StdDev=1 StdDev=2

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 Out-of-Control: Increase of Standard
Deviation
Out-of-control: increase of standard deviation, σ = 2

-6 -4 -2 0 2 4 6

In-Control StdDev=1 StdDev=2

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 Types of Control Charts: Overview
 Control Charts for Variables: for continuous
measures such as temperature, volume, etc.
 Mean Chart (or X -Chart): detects shift of the mean
 Range Chart (or R-Chart: detects change in shape of
distribution
 Control Charts for Attributes: for discrete measures
such as number of complaints, scratches, etc.
 p-Chart: measures percent defective
 c-Chart: measures # of defects per sample

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 For Variables: Mean Control Chart

When the process mean (µ) and standard deviation

(σ) are known:

The standard deviation of sample means (X-bar):


Standard deviation of sample means :  X 
n

Upper Control Limit : UCL    z X

Lower Control Limit : LCL    z X

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 Setting Chart Limits
For x-Charts when we know 
Upper control limit (UCL) = x + zx
Lower control limit (LCL) = x - zx
where x = mean of the sample means or a target
value set for the process
z = number of normal standard deviations
x = standard deviation of the sample means
= / n
 = population standard deviation
n = sample size
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 Setting Control Limits
Hour 1 Hour Mean Hour Mean
Sample Weight of 1 16.1 7 15.2
size Oat Flakes 2 16.8 8 16.4
1 17 3 15.5 9 16.3
2 13 4 16.5 10 14.8
3 16 5 16.5 11 14.2
4 18 6 16.4 12 17.3
n=9 5 17
6 16 For 99.73% control limits, z = 3
7 15
8 17 UCLx = x + zx = 16 + 3(1/3) = 17 ozs
9 16
Mean 16.1 LCLx = x - zx = 16 - 3(1/3) = 15 ozs
= 1
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 Setting Control Limits

Control Chart
for sample of Variation due
Out of to assignable
9 boxes control causes

17 = UCL

Variation due to
16 = Mean natural causes

15 = LCL

Variation due
| | | | | | | | | | | |
to assignable
1 2 3 4 5 6 7 8 9 10 11 12 Out of causes
Sample number control

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 For Variables: Mean Control Chart

When the process mean (µ) and standard deviation (σ)

are known:

The standard deviation of sample
Standard deviationmeans (X-bar):
of sample means :  X 
n
Example:
Process Mean  µ= 10
Process Std Dev σ = 0.3
Sample Size n = 9
No. of std dev z = 3
Exercise: Calculate UCL and LCL, and draw a mean
(X-bar) control chart.
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 Setting Chart Limits
For x-Charts when we don’t know 

Upper control limit (UCL) = x + A2R

Lower control limit (LCL) = x - A2R

where R = average range of the samples

A2 = control chart factor found in Table S6.1
x = mean of the sample means

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 Control Chart Factors
Sample Size Mean Factor Upper Range Lower Range
n A2 D4 D3
2 1.880 3.268 0
3 1.023 2.574 0
4 .729 2.282 0
5 .577 2.115 0
6 .483 2.004 0
7 .419 1.924 0.076
8 .373 1.864 0.136
9 .337 1.816 0.184
10 .308 1.777 0.223
12 .266 1.716 0.284

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Table S6.1 26
 Setting Control Limits
Process average x = 12 ounces
Average range R = .25
Sample size n = 5

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 Setting Control Limits
Process average x = 12 ounces
Average range R = .25
Sample size n = 5

UCLx = x + A2R
= 12 + (.577)(.25)
= 12 + .144
= 12.144 ounces
From
Table S6.1

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 Setting Control Limits
Process average x = 12 ounces
Average range R = .25
Sample size n = 5

UCLx = x + A2R UCL = 12.144

= 12 + (.577)(.25)
= 12 + .144 Mean = 12
= 12.144 ounces

LCLx = x - A2R LCL = 11.857

= 12 - .144
= 11.857 ounces
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 R – Chart

 Type of variables control chart

 Shows sample ranges over time
 Difference between smallest and
largest values in sample
 Monitors process variability
 Independent from process mean

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 Setting Chart Limits
For R-Charts

Upper control limit (UCLR) = D4R

Lower control limit (LCLR) = D3R

where
R = average range of the samples
D3 and D4 = control chart factors from Table S6.1

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 Setting Control Limits
Average range R = 5.3 pounds
Sample size n = 5
From Table S6.1 D4 = 2.115, D3 = 0

UCLR = D4R UCL = 11.2

= (2.115)(5.3)
= 11.2 pounds Mean = 5.3

LCLR = D3R LCL = 0

= (0)(5.3)
= 0 pounds
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 Mean and Range Charts
(a)
These (Sampling mean is
sampling shifting upward but
distributions range is consistent)
result in the
charts below

UCL
(x-chart detects
x-chart shift in central
tendency)
LCL
UCL
(R-chart does not
R-chart detect change in
mean)
LCL
Figure S6.5
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 Mean and Range Charts
(b)
These
sampling (Sampling mean
distributions is constant but
result in the dispersion is
charts below increasing)

UCL
(x-chart does not
x-chart detect the increase
in dispersion)
LCL
UCL
(R-chart detects
R-chart increase in
dispersion)
LCL
Figure S6.5
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 For Variables: Mean & Range Control
Charts
When the process mean (µ) and standard deviation (σ) are unknown:

Sample Example: Measuring sound

Unit 1 2 3 pressure level (in decibels)
1 95 97 97 of loudspeakers.
2 94 95 96
3 93 96 96
4 95 95 92
5 95 97 93
mean 94.4 96 94.8 Question:
range 2 2 5 What is the sample size in
this example?
Grand Avg X = 95.07
Avg Range = R 3.00
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 For Variables: Mean & Range Control
Charts
When the process mean (µ) and standard deviation (σ) are unknown:

For 3-sigma (i.e. standard deviation) control charts:

Use Table S6.1 and the sample size to find A2, D3, and D4
Mean ( X ) chart :
Exercise:
UCL  X  A2 R Calculate UCL’s and LCL’s for
X-bar and Range charts, using
LCL  X  A2 R data in the previous example.
Range ( R ) chart :
UCL  D4 R
LCL  D3 R
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 For Variables: Mean & Range Control
Charts
When the process mean (µ) and standard deviation
(σ) are unknown:

Procedures:
1. Collect multiple samples;
2. Calculate sample averages ( X ’s) and ranges (R’s);
3. Calculate grand average ( X ) and average of the
ranges ( R );
4. Use Table S6-1 to find A2, D3, and D4;
5. Calculate UCL’s and LCL’s for the mean and range
charts.

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 Control Chart Factors
Sample Size Mean Factor Upper Range Lower Range
n A2 D4 D3
2 1.880 3.268 0
3 1.023 2.574 0
4 .729 2.282 0
5 .577 2.115 0
6 .483 2.004 0
7 .419 1.924 0.076
8 .373 1.864 0.136
9 .337 1.816 0.184
10 .308 1.777 0.223
12 .266 1.716 0.284

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Table S6.1 38
 For Variables: Mean Control Chart
Mean Control Chart

98

97 UCL = 96.81

96
Nominal Value = grand avg = 95.07
Sample Mean

95

94
LCL = 93.33
93

92
1 2 3 4 5 6 7 8 9 10
Sample No.

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 For Variables: Range Control Chart
Range Control Chart

7 UCL = 6.33
6

5
Range

4
Nominal Value = avg range = 3.00
3

1
LCL = 0
0
1 2 3 4 5 6 7 8 9 10
Sample No.

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For Variables: Using Mean & Range Control
Charts
When the process mean (µ) and standard deviation
(σ) are unknown:

Unit Decibels Question:

According to the mean and range
1 97
control charts, is the process in
2 101 control when this latest sample
3 96 was collected?
4 95
5 93
X

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 Control Chart for Attributes
p-Chart: Control chart used to monitor the
proportion of defectives in a process
p = percent defective

c-Chart: Control chart used to monitor the

number of defects per sample
c = number of defects per sample

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 Use of p-Charts
 Use when observations of each unit can be placed into
two categories: “either …. or….”
Good or bad
Pass or fail
Operate or don’t operate
 Question: If the sample size is n, what is the number of
possible outcomes for a given sample?
 The number of possible outcomes is finite.

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 Use of p-Charts
 Requirements
 Multiple samples
 Relatively large sample size (n >= 20)
 If n = 20, possible results can be found below:
 0 defective: p = 0
 1 defective: p = 1/20 or 5%
 2 defectives: p = 2/20 or 10%, etc.
 Note: Percent defective changes in increment of 5%.
 If the true percent defective = 0.3%, it will never show up in
the results. Therefore, p-Charts must use large samples.

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 Use of p-Charts
Construct p-Charts:

total # of defectives
Percent defective : p 
# of samples  sample size
p (1  p )
Standard deviation of p :  ^p 
n
UCL  p  z p
LCL  p  z p

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 P-chart
• Upper Control Limit (UCL)
UCLp = p + zσ p^

• Lower Control Limit (LCL)

LCLp = p - zσ p^

p is mean fraction of defective Z = 2, 95.45%

z is number of standard deviation Z = 3, 99.73%

σ p^ is standard deviation of the sampling distribution

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 Example p-chart
Sample of work of 20 clerks are shown. One
hundred records entered by each clerk were
examined and number of errors counted. The
fraction defective in each sample was
computed. Set control limit 99.73%.

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Sample No. of Fraction Sample No. of Fraction
No. Error Defective No. Error Defective
1 6 0.06 11 6 0.06
2 5 0.05 12 1 0.01
3 0 0.00 13 8 0.08
4 1 0.01 14 7 0.07
5 4 0.04 15 5 0.05
6 2 0.02 16 4 0.04
7 5 0.05 17 11 0.11
8 3 0.03 18 3 0.03
9 3 0.03 19 0 0.00
10 2 0.02 20 4 0.04

Total No. of Error = 80 Fraction Defective = Error

n

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 Calculation

Total Number of Error 80

p= = = 0.04
Total No. of records examined (100)(20)
(sample size x # of samples)

σ p^ = p (1 – p) = 0.04 (1 – 0.04) ≈ 0.02

n 100
Z = 3 for 99.73%
UCLp = p + zσ p^ = 0.04 + 3 (0.02) = 0.10

LCLp = p - zσ p^ = 0.04 – 3 (0.02) = 0 → No Negative

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 Plot Control Chart
Control Chart

0.12
UCLp = 0.10
0.10
Fraction Defective

0.08

0.06
p= 0.04
0.04

0.02
LCLp = 0
0.00
0 5 10 15 20 25
Sample Number

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 Use of c-Charts
 Use when
 the number of occurrences per sample can be counted
 non-occurrences cannot be counted
 No upper limit on the number of occurrences (i.e. the
number of possible outcomes is infinite)
 Examples
 Scratches, chips, dents, or errors per item
 Cracks or faults per unit of distance
 Breaks or tears per unit of area
 Bacteria or pollutants per unit of volume
 Calls, complaints, failures per unit of time

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 Use of c-Charts
Construct c-Charts:

total # of defects
No. of defects per sample : c 
# of samples
Standard deviation of c :  c  c
UCL  c  z c
LCL  c  z c

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 C-chart
• Upper Control Limit (UCL)
UCLp = c + z c

• Lower Control Limit (LCL)

LCLp = c -z c

c is mean number of defective Z = 2, 95.45%

z is number of standard deviation Z = 3, 99.73%

c is standard deviation
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 Example c-chart
Day No. of
The management of Complaints
hotel has received 1 3
several complaints for 2 0
over 9-day period based 3 8
on the table. Set control 4 9
limit at 99.73%. 5 6
6 7
7 4
8 9
9 8

54
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 Calculation
Total Number of complaints 54
c = = = 6
9
Day

UCLC = c + z c = 6 + 3 ( 6 ) = 13.35

LCLC = c - z c = 6-3( 6) = 0 → No Negative

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 Plot Control Chart

Control Chart

14 UCLp = 13.35
12
No. of Complaints

10

6 c= 6
4

0
LCLp = 0
0 1 2 3 4 5 6 7 8 9 10
Day

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 Use of p-Charts and c-Charts
Example: p-Chart Example: c-Chart
p-Chart n = 200 c-Chart
# of # of
Sample Sample
Defectives Defects
1 0 1 0
2 1 2 1
3 2 3 2
4 0 4 0
5 2 5 2
6 1 6 1
7 1 7 1
Exercise: Construct a p-Chart and a c-chart
respectively.
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 Let’s Recaps the Control Charts
 Control charts for variables (continuous variables)
 Mean Chart ( X bar-chart ): sample average X - chart

 Range Chart (R-chart): sample range, i.e., max-min

 Control charts for attributes (discrete variables)
 p-chart: defective rate of the sample
 c-chart: number of defect per sample

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6/23/2020
Sampling
Distribution

x-Chart

R-chart
0.45
0.4

LCL
LCL
UCL
UCL
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0 0.45
-6 -4 -2 0 2 4 6
0.4
In-Control StdDev=1
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0 0.45
-6 -4 -2 0 2 4 6
0.4
0.35 In-Control StdDev=1

0.3
0.25
0.2

NY –TQM 2019
0.15
mean

0.1
0.05
0 0.45
-6 -4 -2 0 2 4 6
0.4
0.35 In-Control StdDev=1

0.3
0.25
0.2
0.15
0.1
0.05
0
-6 -4 -2 0 2 4 6

In-Control StdDev=1
(Process mean is
Mean and Range Charts: shift of the

Figure 10-10A
shifting upward, but

Does not

59
detect shift
shape remains the same.)

Detects shift
 Mean and Range Charts: increase in
variability

6
6
6
6

4
4

4
4
(Process variability is

2
2

2
Sampling

In-Control StdDev=1
increasing from 1 to 1.75,

StdDev=4
StdDev=2

StdDev=3
Distribution

0
0

0
but the mean remains
-2
unchanged.)

-2

-2
-2
-4

-4

-4

-4
UCL
0.4 -6

-6

0.25 -6

-6
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0

Does not
0.45

0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0.30
0.45
0.4
0.35

0.2
0.15
0.1
0.05
0
x-Chart
reveal increase
LCL
UCL

R-chart Reveals increase

LCL
Figure 10-10B
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 Managerial Issues and
Control Charts
Three major management decisions:

 Select points in the processes that need

SPC
 Determine the appropriate charting
technique
 Set clear policies and procedures

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 Which Control Chart to Use
Variables Data
 Using an x-chart and R-chart:
 Observations are variables
 Collect 20 - 25 samples of n = 4, or n =
5, or more, each from a stable process
and compute the mean for the x-chart
and range for the R-chart
 Track samples of n observations each

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 Which Control Chart to Use
Attribute Data
 Using the p-chart:
 Observations are attributes that can
be categorized in two states
 We deal with fraction, proportion, or
percent defectives
 Have several samples, each with
many observations

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 Which Control Chart to Use
Attribute Data
 Using a c-Chart:
 Observations are attributes whose
defects per unit of output can be
counted
 The number counted is a small part of
the possible occurrences
 Defects such as number of blemishes
on a desk, number of typos in a page
of text, flaws in a bolt of cloth

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 Patterns in Control Charts

Upper control limit

Target

Lower control limit

Normal behavior.
Process is “in control.”
Figure S6.7

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 Patterns in Control Charts

Upper control limit

Target

Lower control limit

One plot out above (or
below). Investigate for
Figure S6.7
cause. Process is “out
of control.”
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 Patterns in Control Charts

Upper control limit

Target

Lower control limit

Trends in either
direction, 5 plots.
Figure S6.7 Investigate for cause of
progressive change.
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 Patterns in Control Charts

Upper control limit

Target

Lower control limit

Two plots very near
lower (or upper)
Figure S6.7 control. Investigate for
cause.
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 Patterns in Control Charts

Upper control limit

Target

Lower control limit

Run of 5 above (or
below) central line.
Figure S6.7 Investigate for cause.
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 Patterns in Control Charts

Upper control limit

Target

Lower control limit

Erratic behavior.
Investigate.
Figure S6.7

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 Process Capability
 The natural variation of a process
should be small enough to produce
products that meet the standards
required
 A process in statistical control does not
necessarily meet the design
specifications
 Process capability is a measure of the
relationship between the natural
variation of the process and the design
specifications
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 Process Capability Ratio

Upper Specification - Lower Specification

Cp =
6

 A capable process must have a Cp of at

least 1.0
 Does not look at how well the process
is centered in the specification range
 Often a target value of Cp = 1.33 is used
to allow for off-center processes
 Six Sigma quality requires a Cp = 2.0
6/23/2020 NY –TQM 2019 72
 Process Capability Ratio

Insurance claims process

Process mean x = 210.0 minutes

Process standard deviation  = .516 minutes
Design specification = 210 ± 3 minutes

Upper Specification - Lower Specification

Cp =
6

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 Process Capability Ratio

Insurance claims process

Process mean x = 210.0 minutes

Process standard deviation  = .516 minutes
Design specification = 210 ± 3 minutes

Upper Specification - Lower Specification

Cp =
6
213 - 207
= = 1.938
6(.516)

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 Process Capability Ratio

Insurance claims process

Process mean x = 210.0 minutes

Process standard deviation  = .516 minutes
Design specification = 210 ± 3 minutes

Upper Specification - Lower Specification

Cp =
6
213 - 207
= = 1.938 Process is
6(.516)
capable
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 Process Capability
Lower Upper
Specification Specification

A. Process variability
matches specifications
Lower Upper
Specification Specification

B. Process variability
Lower Upper
well within specifications Specification Specification

C. Process variability
exceeds specifications
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 3 Sigma and 6 Sigma Quality
Lower Upper
specification specification

1350 ppm 1350 ppm

1.7 ppm 1.7 ppm

Process
mean
+/- 3 Sigma
+/- 6 Sigma

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 Example
Standard Machine
Machine Deviation Capability Cp
A 0.13 0.78 0.80/0.78 = 1.03

B 0.08 0.48 0.80/0.48 = 1.67

C 0.16 0.96 0.80/0.96 = 0.83

Cp > 1.33 is desirable

Cp = 1.00 process is barely capable
Cp < 1.00 process is not capable
(0.80 is the USL – LSL)
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 Process Capability Index

Upper Lower
Cpk = minimum of Specification - x , x - Specification
Limit Limit
3 3

 A capable process must have a Cpk of at

least 1.0
 A capable process is not necessarily in the
center of the specification, but it falls within
the specification limit at both extremes
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 Process Capability Index

New Cutting Machine

New process mean x = .250 inches
Process standard deviation  = .0005 inches
Upper Specification Limit = .251 inches
Lower Specification Limit = .249 inches

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 Process Capability Index

New Cutting Machine

New process mean x = .250 inches
Process standard deviation  = .0005 inches
Upper Specification Limit = .251 inches
Lower Specification Limit = .249 inches
(.251) - .250
Cpk = minimum of ,
(3).0005

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 Process Capability Index

New Cutting Machine

New process mean x = .250 inches
Process standard deviation  = .0005 inches
Upper Specification Limit = .251 inches
Lower Specification Limit = .249 inches
(.251) - .250 .250 - (.249)
Cpk = minimum of ,
(3).0005 (3).0005

Both calculations result in

New machine is
.001
Cpk = = 0.67 NOT capable
.0015
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 Interpreting Cpk

Cpk = negative number

Cpk = zero

Cpk = between 0 and 1

Cpk = 1

Cpk > 1
Figure S6.8
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 Acceptance Sampling
 Form of quality testing used for
incoming materials or finished goods
 Take samples at random from a lot
Rejected lots can be:
(shipment) of items
 Returned
 Inspect each of the to the
items in the sample
supplier
 Decide whether to reject the whole lot
 Culledresults
based on the inspection for
defectives
 Only screens lots; does
(100%not drive
inspection)
quality improvement efforts
6/23/2020 NY –TQM 2019 84
 Operating Characteristic Curve

 Shows how well a sampling plan

discriminates between good and
bad lots (shipments)
 Shows the relationship between
the probability of accepting a lot
and its quality level

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 The “Perfect” OC Curve

Keep whole
shipment
P(Accept Whole Shipment)

100 –

75 –
Return whole
shipment
50 –

Cut-Off
25 –

0 |– | | | | | | | | | |

0 10 20 30 40 50 60 70 80 90 100

% Defective in Lot
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 AQL and LTPD

 Acceptable Quality Level (AQL)

 Poorest level of quality we are
willing to accept
 Lot Tolerance Percent Defective
(LTPD)
 Quality level we consider bad
 Consumer (buyer) does not want to
accept lots with more defects than
LTPD
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 An OC Curve
Figure S6.9
100 –
95 –
 = 0.05 producer’s risk for AQL

75 –

Probability
of 50 –
Acceptance

25 –

10 –
 = 0.10 Percent
0 |– | | | | | | | |
0 1 2 3 4 5 6 7 8 defective
AQL LTPD
Consumer’s
risk for LTPD Good Indifference
Bad lots
lots zone
6/23/2020 NY –TQM 2019 88
 Producer’s and Consumer’s Risks
 Producer's risk ()
 Probability of rejecting a good lot
 Probability of rejecting a lot when the
fraction defective is at or above the
AQL
 Consumer's risk ()
 Probability of accepting a bad lot
 Probability of accepting a lot when
fraction defective is below the LTPD
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 OC Curves for Different Sampling
Plans

n = 50, c = 1

n = 100, c = 2

6/23/2020 NY –TQM 2019 90

 Average Outgoing Quality

(Pd)(Pa)(N - n)
AOQ =
N

where
Pd = true percent defective of the lot
Pa = probability of accepting the lot
N = number of items in the lot
n = number of items in the sample

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 Average Outgoing Quality

1. If a sampling plan replaces all defectives

2. If we know the incoming percent
defective for the lot

We can compute the average outgoing

quality (AOQ) in percent defective

The maximum AOQ is the highest percent

defective or the lowest average quality
and is called the average outgoing quality
level (AOQL)
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 Automated Inspection

 Modern
technologies
allow virtually
100% inspection
at minimal costs
 Not suitable for
all situations

6/23/2020 NY –TQM 2019 93

 SPC and Process Variability
Lower Upper
specification specification
limit limit
(a) Acceptance
sampling (Some
bad units accepted)

(b) Statistical process

control (Keep the
process in control)

(c) Cpk >1 (Design

a process that
is in control)

Process mean,  Figure S6.10

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