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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

BACHELOR OF BUSINESS
ADMINISTRATION
SEMESTER 3

DBB2102
QUANTITATIVE TECHNIQUES FOR
MANAGEMENT

Unit 9 : Statistical Quality Control 1


DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

Unit 9
Statistical Quality Control
Table of Contents

SL Topic Fig No / Table SAQ / Page No


No / Graph Activity
1 Introduction
3-4
1.1 Objectives
2 Sources of Variations 1 5
3 Statistical Process Control Methods 2 6-7
3.1 Measuring Variables versus Attributes
4 Control Charts 1, 2, 3, 4, 5 3 8 - 17
5 Acceptance Sampling 6, 7 I 18 - 20
5.1 Sampling Plan
6 Advantages of Statistical Quality Control 4 21
7 Summary 22
8 Glossary 23
9 Terminal Questions
10 Answers 24 - 25

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

1. INTRODUCTION

In the last chapter, we have studied the sampling techniques and distribution. This chapter
discusses the quality issues of the production process and its control technique. Statistical
quality control (SQC) is one of the useful and economically important applications of the
theory of sampling in the industrial field that can maintain the quality of goods in any
manufacturing process. An important feature of the modern industry is continuous work
outputs. But no two pieces of the same resource centre are identical in measurable
characteristics. The variation may be negligible, but it does exist. Because of the inevitability
of the occurrence of variations the user of the product set standards of quality to which
product must confirm if they are to be considered satisfactory for use. These standards
specify not only a basic norm but also the upper and lower limits within which products will
be considered satisfactory. These limits are called tolerances. If the size of the products falls
outside the range of these specifications it is considered rejected. These tools come from the
area of statistics and are used to help identify quality problems in the production process as
well as in the product itself.

Statistical quality control (SQC) is the term used to describe the set of statistical tools used
by quality professionals. It can be divided into three broad categories:

Descriptive statistics

It is used to describe quality characteristics and relationships. The subject includes statistics
such as the mean, standard deviation, the range, and a measure of the distribution of data.

Statistical Process Control (SPC)

It involves inspecting a random sample of the output from a process and deciding whether
the process is producing products with characteristics that fall within a predetermined
range. SPC answers the question of whether the process is functioning properly or not.

Acceptance sampling

It is the process of randomly inspecting a sample of goods and deciding whether to accept
the entire lot based on the results. Acceptance sampling determines whether a batch of goods
should be accepted or rejected.

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

All three of these statistical quality control categories are helpful in measuring and
evaluating the quality of products or services. However, statistical process control (SPC)
tools are used most frequently because they identify quality problems during the production
process.

1.1 Objectives

After studying this unit, you should be able to:

❖ List the variations occur in the production process


❖ Identify the control charts to monitor the process
❖ Recognize patterns that a process is out-of-control
❖ Define the acceptance sampling

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

2. SOURCES OF VARIATIONS

Variations in any conversion process stem from the many sources that constitute the
production system-people, materials, machines and equipment, and work methods. If you
look at the sizes of a notebook in a store, you will notice that no two notebooks
length/breadth is exactly the same. Some are slightly higher in length and some slightly
lower. These types of differences are completely normal. No two products are exactly alike
because of slight differences in materials, workers, machines, tools, and other factors. These
are called common, or random, causes of variation. Common causes of variation are based
on random causes that we cannot identify. These types of variation are unavoidable and are
due to slight differences in processing.

The second type of variation that can be observed involves variations where the causes can
be precisely identified and eliminated. These are called assignable causes of variation. For
examples, the poor quality in materials, a labor who needs more training, or a machine in
need of repair. In each of these examples the problem can be identified and corrected. Also,
if the problem is allowed to persist, it will continue to create a problem in the quality of the
product. In the example of the notebook length, the cutter may need to be readjusted. This
would be an assignable cause of variation. We can assign the variation to a particular cause
(machine needs to be readjusted) and we can correct the problem (readjust the machine).
Since uniformity is impossible, the key question become, “How much variation exists in the
processes?” and “What can I do to control the non-uniformity in the processes?”

Self-Assessment Questions - 1

1. No two products are exactly alike because of slight in materials.


2. Common causes of variation are based on random causes that we cannot identify.
(True/False).
3. Assignable causes of variation can be precisely identified and eliminated
(True/False).

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

3. STATISTICAL PROCESS CONTROL METHODS

One approach to controlling non uniformity, statistical process control (SPC), is to detect and
eliminate nonrandom variations as they arise while the process is operating. The process is
said to be in control when all variations are random and is out of control when some
variations are sporadic. The process is monitored periodically by examining sample units of
output. Statistical process control methods monitor the quality of the product and process.
As we have learned so far, there are common and assignable causes of variation in the
production of every product. Using statistical process control we want to determine the
amount of variation that is common or normal. Then we monitor the production process to
make sure production stays within this normal range. Control charts are the most commonly
used tool for monitoring the production process. Different types of control charts are used
to monitor different aspects of the production process. In this section we will learn how to
measure variables and attributes and how to develop and use control charts.

3.1 Measuring Variables Versus Attributes

Control charts are one of the most commonly used tools in statistical process control. They
can be used to measure any characteristic of a product, such as the weight of a box, the
number of chocolates in a box, or the volume of a container. The different characteristics that
can be measured by control charts can be divided into two groups: variables and attributes.
A control chart for variables is used to monitor characteristics that can be measured on a
continuous scale, such as height, weight, or volume. A soft drink bottling operation is an
example of a variable measure, since the amount of liquid in the bottles is measured and can
take on a number of different values. Other examples are the weight of a bag of salt, the
temperature of a furnace, or the diameter of a rod.

A control chart for attributes, on the other hand, is used to monitor characteristics that have
discrete values and can be measured by a simple rating of good or bad, success or failure, etc.
Often, they can be evaluated with a simple yes or no decision. Examples include color, taste,
or smell. The monitoring of attributes usually takes less time than that of variables. Statistical
process control is used to monitor many different types of variables and attributes.

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

Self-Assessment Questions - 2

4. Match the following:

a) Weight a) Variable

b) Temperature b) Attributes

c) Success c) Variable

d) Failure d) Attribute

5. Statistical process control (SPC), is to detect and eliminate nonrandom


variations (True/False)
6. A control chart for variables is used to monitor characteristics that can be
measured on a continuous scale (True/False)
7. A control chart for attributes is used to monitor characteristics that have
discrete value. (True/False)

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

4. CONTROL CHARTS

In this stage, we will discuss the definition of control charts and the process of its
development. A control chart (also called process chart or quality control chart) is a graph
that shows whether a sample of data falls within the common or normal range of variation.
It has upper and lower control limits that separate common from the assignable causes of
variation. The common range of variation is defined by the use of control chart limits. When
a plot of data reveals that one or more samples fall outside the control limits then it is called
the process is out of control. Figure 9.1 shows a control chart. The x axis indicates samples
taken from the process over time. The y axis indicates the quality characteristic that is being
monitored. The center line (CL) of the control chart is the mean, or average, of the quality
characteristic that is being measured. The upper control limit (UCL) is the maximum
acceptable variation from the mean for a process that is in a state of control. Similarly, the
lower control limit (LCL) is the minimum acceptable variation from the mean for a process
that is in a state of control.

The upper and lower control limits on a control chart are usually set at 3𝜎 from the mean. If
we assume that the data displays a normal distribution, then these control limits will capture
99.74 percent of the normal variation. If the control limits set at 2 𝜎 from the mean then the
control limits would

capture 95.44 percent of the values. Looking at Figure 9.1, we can conclude that observations
that fall outside the set range represent assignable causes of variation.

Figure 9.1: Control chart

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

Fig. 9.1

[Source: Production and Operations Management, TMH Company Limited, by S.N.Chary]

There are two types of control charts: control charts for variable and control chart for control
charts for attributes.

Control charts for variables

Control charts for variables monitor characteristics that can be measured and have a
continuous scale, such as length, diameter, height, weight, volume, or width. When an item
is inspected, the variable being monitored is measured and recorded. For example, if we
were producing soap, thickness of the soap might be an important variable. We could take
samples of soaps and measure their thickness. Two of the most commonly used control
charts for variables monitor both the central tendency of the data (the mean) and the
variability of the data (either the standard deviation or the range). Note that each chart
monitors a different type of information. When observed values go outside the control limits,
the process is assumed not to be in control. Production is stopped, and employees attempt
to identify the cause of the problem and correct it. In this chapter, we will discuss the process
of development of various control charts.

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

Mean (x-Bar) Charts

A mean control chart is known as an x-bar chart. It is used to monitor changes in the mean
of a process. Any time the sample mean exceeds the control limits, we say that the process
has gone out of control-that is, there are certain assignable causes which should be looked
into immediately. To construct a mean chart, we first need to construct the center line of the
chart. To do this we take multiple samples and compute their means. Depending upon the
precision that is involved we would be setting up the control limits

on the + and the – side of the mean of the sample means. Usually, 3 𝜎 limits

are established. Since means of the samples are distributed normally, the 3 𝜎 limits will mean
that when the process is under control, we will investigate into the assignable causes 3 out
of 1000 times. To construct the upper and lower control limits of the chart, we use the
following formulas:

a) Standards given

Upper control limits (UCL): 𝑋̿ + 3𝜎𝑥 𝑋̿ + 𝐴𝜎

Lower control limit (LCL): 𝑋̿ + 3𝜎𝑥 𝑋̿ − 𝐴𝜎

Where,

𝑋̿ is the average of the sample means

𝜎
𝜎 is the standard deviation of the sample means, computed as
√𝑛

𝜎 is the population standard deviation

n =sample size (number of observations per sample)

A is the factor obtained from the table

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

b) Standards not given


i) By using the estimated mean and range

The other way to construct the control limits is to use the sample range as an estimate
of the variability of the process. In this case control limits would be constructed as
follows:

Upper control limit (UCL): 𝑋̿ + 𝐴2 𝑅̅

Lower control limit (LCL): 𝑋̿ + 𝐴2 𝑅̅

Where,

𝑋̿ is the average of the sample means

𝑅̅ is the average range of the sample

𝐴2 is the factor obtained from the table

ii) By using estimated mean and standard deviation

When 𝑋̿ and 𝜎 are not specified, their values are estimated from the samples.

Upper control limits (UCL): 𝑋̿ + 𝐴1 𝜎̅

Lower control limit (LCL): 𝑋̿ − 𝐴1 𝜎̅

Where,

𝑋̿ is the average of the sample means

𝜎̅ is the average standard deviation of the sample

𝐴1 is the factor obtained from the table

Range (R) Charts

Mean chart keeps a control on the central tendency. Now we look for the control of the
dispersion. The standard deviation as well as the range will give an indication of dispersion.

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

The method for developing and using R- charts is the same as that for x-bar charts. The center
line of the control chart is the average range, and the upper and lower control limits are
computed as follows:

CL= 𝑅̿

UCL= D4 𝑅̿

LCL= D3 𝑅̿

Where, values for D4 and D3 are obtained from Table.

Control charts for attributes

When sample units are classified into two categories (yes or no, success or failure),
measurement is by attribute. Control charts for attributes are used to measure quality
characteristics that are counted rather than measured. For example, this could be the
number of defective components, the number of rotten mangoes, the number of scratches on
walls, or the number of disciplinary actions against student. Two of the most common types
of control charts for attributes are p-charts and c-charts.

P-charts are used to measure the proportion of items in a sample that are defective.
Examples are the defective parts of an automobile manufacturing unit. P-charts are
appropriate when both the number of defectives measured , and the size of the total sample
can be counted. A proportion can then be computed and used as the statistic of measurement.
C-charts count the actual number of defects. For example, we can count the number of
negative feedbacks from customers in a month etc.

P-Charts

P-charts are used to measure the proportion that is defective in a sample. The calculation of
the center line as well as the upper and lower control limits is similar to the calculation for
the other types of control charts. The center line is calculated as the average proportion
defective in the population. This is obtained by taking a number of samples of observations

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

at random and computing the average value of p across all samples. To construct the upper
and lower control limits for a p-chart, we use the following:

Upper control limits (UCL)𝑝 + 3𝜎

Lower control limit (LCL): 𝑝̅ + 3𝜎

Where,

𝑝̅ is the sample proportion defective

𝜎 is the standard deviation of the average proportion defective

n =sample size (number of observations per sample)

The sample standard deviation is calculated as follows:

𝑝(1 − 𝑝)
𝜎𝑝 = √
𝑛

C-charts

C-charts are used to monitor the number of defects per unit. Examples are the number of
defective bottles in a glass manufacturing plant. The average number of defects is the center
line of the control chart. The upper and lower control limits are calculated as follows:

Upper control limits (UCL): 𝑐̅ + 3𝜎

Lower control limit (LCL): 𝑐̅ + 3𝜎

Where,

i 𝑐̅is the sample number of defects

𝜎 is the standard deviation of the average number of defect

n =sample size (number of observations per sample)

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

Example 9.1: The measurements on diameter of screws, as numbers of 0.0001 cms above
1.90 cms, are given in the following table representing 10 samples with 5 observations in
each sample. Prepare a control charts for mean using i) Standard deviation ii) Range iii)
Grand Mean.

Table 9.1
Serial No. 1 2 3 4 5 6 7 8 9 10
Measurements 88 86 83 88 73 78 83 75 70 75
78 91 65 88 80 86 80 88 80 75
70 78 73 73 73 78 73 80 86 73
88 86 63 88 70 80 65 60 73 86
65 68 75 68 70 63 75 65 75 86

[Source: Business statistics, Excel books, R.S.Bhardwaj]

Solution: The computed value of mean, standard deviation and range of various samples are
given in the following table:

Table 9.2
SampleNo.
1 2 3 4 5 6 7 8 9 10 Total

Xi 77.8 81.8 71.8 81 73.2 77 75.2 73.6 76.8 79.0 767.2


i
9.30 8.06 7.22 8.72 3.66 7.59 6.21 10.09 5.64 5.76 72.25
Ri
23 23 20 20 10 23 18 28 16 13 194

767.2
𝑋̅ = 1.90 + × 0.0001 = 1.9077 𝑐𝑚𝑠
10

72.25
𝜎̅ = × 0.0001 = 0.0007 𝑐𝑚𝑠
10

194
𝑅̅ = × 0.0001 = 0.0019 𝑐𝑚𝑠
10

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

i) 𝑋̅ Chart (Using standard deviation)

The control limits are given by 𝑋̅ + 𝐴1̅ 𝜎̅ where A1 = 1.596 for n=5 (From table)

Therefore, UCL=1.9077+1.596 x0.0007=1.9088

And LCL=1.9077-1.596X0.0007=1.9066

On changing the centre line, UCL and the LCL in terms of the number of 0.0001 cms
above 1.90 cms, we get

Central line= (1.9077-1.90) x10000=77

UCL= (1.9088-1.90) X10000=88

And LCL= (1.9066-1.90) X10000=66

The control chart is shown below. The averages of all the samples are plotted on it. Since the
entire sample points are within the control limits, the process is said to be under control.

Figure 9.2. Control chart

Fig. 9.2

ii) 𝑋̅ Chart (Using range)

The control limits are given by, 𝑋̿ + 𝐴2 𝑅̅ where A2 = 0.577 for n=5 (From table)

Therefore, UCL= (1.9077+0.577 x0.0019-1.90) X10000=88

And LCL= (1.9077-.577X0.0019-1.90) X10000=66.

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

Since these control limits are equal to the control limits in (i) above, therefore, the
control chart would be same.

Table 9.3: Control chart

[Source: Business statistics, Excel books, R. S. Bhardwaj]

Example 9.2: A Quality control department of a factory chosen 18 samples with the
following data: ∑ 𝑋̅ = 595.8 and ∑ 𝜎 = 8.28. Determine 3𝜎limits for 𝑋̅ charts.

𝑋̅ 595.8
Solution: Mean of means, 𝑋̅ = ∑ 18 = = 33.1
18

∑𝜎 8.2
Mean of 𝜎 = = = 0.46
18 18

3 𝜎 Limits of 𝑋̅ chart is given by 𝑋̿ + 𝐴1 𝜎̅ = 33.1 ± 1.03 × 0.46 = 33.1 ± 0.47

Therefore, the lower control limit for X chart is 32.63 and upper control limit

is 33.57.

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

Self-Assessment Questions - 3

8. Control chart helps us to detect inherent variation. (True/False)


9. R charts are used to monitor the level of process output. (True/False)
10. Which one of the following charts is used to monitor an attribute?
a) 𝑋̅ chart b) A chart c) p chart d) None of the above

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

5. ACCEPTANCE SAMPLING
Acceptance sampling is a sampling procedure for estimating the quality level, in terms of
fraction of defectives, of a produced lot of items for inspection. The statistical sampling
procedure purports to answer questions such as: i) Are the supplier’s goods to be accepted
or rejected? ii) if accepted, what kind of risk do we incur in terms of bad quality? Since we
are talking about mass-scale procurement of raw materials and of mass scale shipment of
finished goods, and hence the use of statistical sampling procedure in answering the
accept/reject question. It refers to the process of randomly inspecting a certain number of
items from a lot or batch in order to decide whether to accept or reject the entire batch.

Why it is not possible to check all items, instead of sampling? The answers are simple. i) The
cost of 100% inspection is not permitted in most cases. ii)Many of the acceptance tests
require destructive testing of the item, and therefore the sampling procedure is a must in
such type of cases. iii) Also 100% inspection does not necessarily ensure 100% quality. In
fact, total inspection may lead, many a time, to less quality than if partial inspection were
resorted to. iv) The acceptance sampling procedure either accepts or rejects the incoming
lot in total. Such rejection of the lot by the consumer often results in remarkable quality
improvement on the supplier side.

Any acceptance sampling plan can be classified as attribute sampling plan or a variable
sampling plan, depending upon whether the characteristics of the item is an attribute or a
variable. Further, it can be classified as either the acceptance-rejection sampling plan or the
acceptance-rectification sampling plan. The inspected lot is either accepted or rejected in
case of the former while the rejected lot may be subjected to either 100% inspection or
accepted under changed terms and conditions (e.g, with lower price, etc.) in case of the latter.

5.1 Sampling Plans

The sampling procedure consists of taking a small sample comprising n number of items
from a consignment of N number of items and accepting the consignments only if the number
of defective items in the sample is less than or equal to a cut-off number c or else rejecting
the consignment. The acceptance sampling variables is specified include the size of the lot
(N), the size of the sample inspected from the lot (n), the number of defects above which a

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

lot is rejected (c).In using the acceptance sampling plan, there is a probability that lot may
be accepted even if the quality is not good; also conversely, the lot may be rejected even if
the quality is actually good. The first type of risk is called the “consumers risk” and the second
type of risk is called the “producer’s risk”. An OC curve (Fig.9.2) is typical of a particular
sampling plan. The sampling plan, which generates the corresponding OC curve, is an
agreement between vendor and the buying company. The producer’s risk corresponding to
an acceptable quality level (AQL) is a small percentage of defects that consumers are willing
to accept. It is the chance or probability that a lot containing an acceptable quality level will
be rejected.

However, sometimes the percentage of defects that passes through is higher than the AQL.
Consumers will usually tolerate a few more defects, but at some point the number of defects
reaches a threshold level beyond which consumers will not tolerate them. This threshold
level is called to the lot tolerance percent defective (LTPD)-is what the buying company is
interested in. Therefore, the consumer’s risk is the chance or probability that a lot will be
accepted that contains a greater number of defects than the LTPD limit.

In the operating Characteristic curve (OC curve) for 100% sampling these risks were each
zero, whereas for any other sampling procedure, there exists finite quantities of both these
risks. An appropriate sampling plan satisfies both the conditions. Fig 9.2 shows these risks
and corresponding AQL and LTPD.

Figure 9.3: An OC curve

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

Fig. 9.3

[Source: Production and Operations Management, TMH Company Limited, by S. N. Chary ]

Activity 1
The following statistical data shows the values of sample mean and range for ten samples
each of size 5. Calculate the values for central line and control limits for mean chart and range
chart and determine whether the process is under control?

Table 9.4
SampleNo.
1 2 3 4 5 6 7 8 9 10

Mean: 11.2 11.8 10.8 11.6 11.0 9.6 10.4 9.6 10.6 10.0
Range: 7 4 8 5 7 4 8 4 7 9

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DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

6. ADVANTAGES OF STATISTICAL QUALITY CONTROL

The advantages of the statistical quality control are as follows:

1) It is a technique which provides a continuous inspection of the product at various


stages of the manufacturing process.
2) It provides an objective method of controlling the quality of output of a production
process.
3) It eliminates the need of 100% inspection of the finished product and is usually more
efficient and less costly than 100% inspection.
4) It minimizes the waste of time and material to absolute minimum by giving early
warning about the occurrence of defects.
5) The technique is quite simple and can be operated by semi skilled operators.
6) The acceptance sampling plan protects the interest of the consumer by helping him to
reject a lot of bad quality. It is also helpful to the producer because he can know the
probability of a good lot being rejected. In case the probability is believed to be high
enough, the producer may amend the sampling plan in consultation with the consumer
so that risks are minimized.
7) Past data on quality control may serve as a guide for the choice of a new plant and
machinery as well as the technical staff.
8) It is possible to defend the quality of output before any governmental agency on the
basis of SQC records.

Self-Assessment Questions - 4

11. An OC curve can be used to determine: a) Consumer’s risk


b) Producer’s risk d) Both risks e) Neither risk
12. AOQ stands for a) Approximate outgoing quality b) Average operating quality c)
Approximate optimal quality d) Average outgoing quality.

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7. SUMMARY

Let’s recapitulate the important aspects of the unit:

• Initially, we learnt the definition and purpose of Statistical quality control (SQC) which
refers to the statistical tools that can be used by quality control professionals.
• In the second stage, we studied that the Statistical Quality Control can be divided into
three broad categories: descriptive statistics, acceptance sampling, and statistical
process control (SPC). Descriptive statistics are used to describe quality characteristics,
such as the mean, range, and variance. Acceptance sampling is the process of randomly
inspecting a sample of goods and deciding whether to accept or reject the entire lot.
Statistical process control (SPC) involves inspecting a random sample of output from a
process and deciding whether the process is producing products with characteristics
that fall within preset specifications.
• In the third stage, we studied that there are two causes of variation in the quality of a
product or process: common causes and assignable causes. Common causes of variation
are random causes that we cannot identify. Assignable causes of variation are those
that can be identified and eliminated.
• In the fourth stage, a control chart has been discussed. It is a graph used in statistical
process control that shows whether a sample of data falls within the normal range of
variation. A control chart has upper and lower control limits that separate common
from assignable causes of variation. Control charts for variables include x-bar charts
and R-charts. X-bar charts monitor the mean or average value of a product
characteristic. R-charts monitor the range or dispersion of the values of a product
characteristic. Control charts for attributes include p-charts and c-charts. P-charts are
used to monitor the proportion of defects in a sample. C-charts are used to monitor the
actual number of defects in a sample.
• Finally, we learnt the goal of acceptance sampling. It is used to determine criteria for
acceptance or rejection based on lot size, sample size, and the desired level of
confidence. Operating characteristic (OC) curves are graphs that show the
discriminating power of a sampling plan.

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8. GLOSSARY

1. Attribute: Qualitative variables with only two categories.


2. Control charts: A plot of some parameter of interest over time, used to identify
assignable variations and to make adjustments to the process being monitored.
3. Control limits: Upper and lower bounds on control charts. For the process to be in-
control, all observations must fall within these limits.
4. P charts: Control charts for monitoring the proportion of items in a batch that meet
specifications.
5. R charts: Control charts for monitoring process variability.
6. Acceptable quality level (AQL): The average quality level promised by a producer;
the maximum number or percentage of defective pieces in a good lot.
7. Consumer’s risk: The chance that a “bad” lot will be accepted.
8. Producer’s risk: The chance that a “good” lot will be rejected.

9. TERMINAL QUESTIONS

1. What is statistical quality control?


2. Discuss the sources of variations in the production process
3. Distinguish variables and attributes.
4. Discuss the various control charts.
5. What is acceptance sampling? Discuss the concept of OC curve.

Unit 9 : Statistical Quality Control 23


DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

10. ANSWERS

Self Assessment Questions

1. Difference
2. True
3. True
4. i) a-a ii) b-c iii) d-d
5. True
6. True
7. True
8. False
9. False
10. (c) 11. 11.(c)
11. (d)

Terminal Questions

1. Refer to 1 – Statistical quality control (SQC) is one of the useful and economically
important applications of the theory of sampling in the industrial field etc.
2. Refer to 2 – Common causes of variation are based on random causes that we cannot
identify. These types of variation are unavoidable and are due to slight differences in
processing etc.
3. Refer to 3.1 – The different characteristics that can be measured by control charts can
be divided into two groups: variables and attributes. A control chart for variables is used
to monitor characteristics etc.
4. Refer to 4 – There are two types of control charts: control charts for variable and
control chart for control charts for attributes etc.
5. Refer to 5 – Acceptance sampling is a sampling procedure for estimating the quality
level, in terms of fraction of defectives

References

1. Bharadwaj R. (2001). Business statistics, Excel books: New Delhi.

Unit 9 : Statistical Quality Control 24


DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

2. Chary S. Production and Operations management, Tata McGraw Hill publishing


company, New Delhi.
3. Everett Adam E., Ronald J. Ebert. Production and Operations Management,
PHI, New Delhi.
4. Gupta. Vijay Gupta. (2004). An Introduction to statistical methods, Vikash Publishing
House: New Delhi.
5. Richard I. Levin., David S. Rubin. (2007). Statistics for management, Eastern Economy
Edition: New Delhi.

Unit 9 : Statistical Quality Control 25

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