A Project Report submitted

for Total Quality Management (UME856)

by

Aditya Agarwal (102108128)

Kartik Arora (102108137)
Sourav Kumar (102108139)
Aadil Singh (102108140)
Naman Jain (102108142)

Submitted to
Dr. APPASO MACHINDRA GADADE

THAPAR INSTITUTE OF ENGINEERING AND TECHNOLOGY,

(DEEMED TO BE UNIVERSITY),

PATIALA, PUNJAB

INDIA

2024-2025
 Acknowledgment
We extend our heartfelt gratitude to all those who have been instrumental in completing

ourTQM Project , "Analysis of C-Chart and Poisson’s Distribution in Total Quality

Management Philosophies"

First and foremost, we express our most profound appreciation to Dr. A.M. Gadade,

Assistant Professor, MED, TIET, Patiala for their invaluable guidance, unwavering support,

and expert supervision throughout the entire duration of this project.

His profound knowledge, insightful feedback, and encouragement were indispensable in

shaping our ideas and refining our approach. It was his encouragement and constructive

criticism, which have enormously contributed to our learning and growth. Our sincere

appreciation goes to our classmates and friends for their constant encouragement and

motivation during the highs and lows of this endeavor.

Lastly, we thank all the individuals, organizations and philosophers involved in Total Quality

Management whose research, inventions, and innovations have laid the foundation for our

project report. In conclusion, we acknowledge and appreciate the collective effort of all those

who have contributed directly or indirectly to the successful completion of this project.

Aditya Agarwal 102108128

Kartik Arora 102108137

Sourav Kumar 102108139

Aadil Singh 102108140

Naman Jain 102108142

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 Problem Statement

Question: The data in Table are the number of information errors found in customer records

in a marketing company database. Five records were sampled each day for 500 days.

(a) Set up a c-chart for the total number Of errors. Is the process in control?

(b) Discuss the findings from parts (a)?

(c) Is the Poisson distribution a good model for the customer error data? Is there

evidence of this in the data?

Approach

Over a span of 500 days, five customer records were randomly sampled each day, and the

number of errors in each record was recorded. The goal is to analyze this data to determine if

the process of entering and maintaining customer records is statistically in control. To tackle

this problem using Excel for calculations and graph generation, we will proceed through

several systematic steps:

- Data Preparation: Augment the dataset to expand to 500 rows. Then find the total

daily errors for all 500 days.

- Calculating Control Chart Parameters: Find data mean of errors, Upper Control

Limit (UCL), and Lower Control Limit (LCL). If the LCL is less than zero, set it zero.

- Plotting The Chart: Create a scatter plot or line chart in Excel with the day numbers

on the x-axis and the total number of errors on the y-axis, add UCL and LCL lines.

- Evaluating the Poisson Distribution Fit: Recognize that the Poisson distribution is

suitable for modeling count data of rare events in a fixed interval, where events occur

independently and the mean rate is constant.

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 Dataset

We are working on a Customer Error Data, available in the 7th Edition of the book

Introduction to Statistical Quality Control, exercise 7.81. This is the dataset for an

imaginary marketing company. Our project objective includes about 500 rows of data for the

analysis.

The given dataset was only for 25 days. Accordingly, this dataset was expanded via Data

Augmentation method for 500 days via Python’s randint function. Various observations in

the data were used to ensure that the generated data was similar to the data already provided

to us.

Some of the key observations of the given dataset were:

- Data Consistency: The values are kept within the 10-25 range to reflect the pattern in

your initial data.

- Daily Pattern: There is not much correlation/trend/pattern in the data between

consecutive days.

- Readings: Generally one of the readings in any given day is significantly higher than

other readings. This observation was carried in the generated data as well.

Accordingly, a 500 row dataset was generated using NumPy in Python. The same can be

found at the link: Dataset

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 Figure 1: Dataset Snapshot

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 Standard Quality Measures and Techniques Applied in the

Analysis

Statistical Process Control (SPC):

Control Charts (c-Chart): The use of a c-chart is a fundamental SPC tool applied to

monitor the number of information errors over time for our project. Using Excel, we plot the

daily total errors against predetermined control limits (Upper Control Limit and Lower

Control Limit), the c-chart helps in identifying variations in the process. This visual

representation aids in determining whether the process is stable (in control) or unstable (out

of control), allowing for timely interventions when necessary.

Descriptive Statistics:

Mean and Variance Calculation: Another critical step in our project report was calculating

the average number of errors and the variance provides essential insights into the central

tendency and dispersion of the error data. Comparing the mean and variance is crucial, this is

true especially when evaluating the suitability of the Poisson distribution as a model for the

data, as the Poisson distribution assumes that the mean and variance are equal.

Distribution Analysis:

Poisson Distribution Evaluation: Assessing whether the Poisson distribution is an

appropriate model for the error data involves understanding the nature of the errors (count

data) and verifying if the assumptions of the Poisson model hold true. This includes checking

for independence of errors and a constant average rate of occurrence. Techniques such as the

Chi-Square Goodness-of-Fit Test may be employed to statistically validate the fit of the

Poisson distribution to the observed data.

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 Flow Chart

Figure 2: Flow Chart

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 Methodology

We analyzed the error data using one of the allowed softwares, Microsoft Excel 2016. The

entire data was converted into an Excel sheet. There were 500 rows and 5 columns. Each row

represented the respective day and the columns were different readings taken on any given

day.

Thereafter, the averages (mean) were calculated for each day and for the overall data in the

Excel Sheet. Data for the Upper Control Limit (UCL), and Lower Control Limit (LCL) were

also calculated. The formulas for the same are as follows:

Average = Summation of all readings for all 500 days / (500 * 5)

UCL: Average + 3 * (Average)^(0.5)

LCL: Average - 3 * (Average)^(0.5)

After plotting this, we get the final graph as follows:

Figure 3: Graph

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 Limitations of the Process

As studied in TQM, the analysis using the c-chart provides valuable insights into the stability

of the customer record error process,several limitations must be acknowledged. Some of the

limitations include:

- Poisson Distribution: The assumption that errors follow a Poisson distribution may

not hold if the variance significantly deviates from the mean, indicating

overdispersion or underdispersion.

- Data Independence: the c-chart assumes that each day's error count is independent of

others, which might not be the case if there are underlying trends or cycles affecting

error rates over time.

- Sampling: The sampling method selecting only five records each day may not fully

capture the variability in the entire database, potentially leading to an incomplete

representation of the error distribution.

- External Factors: Factors such as changes in data entry personnel, software updates,

or workflow modifications were not accounted for, which could influence error rates

without being reflected in the control chart.

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 Suggestions for Future Improvements

To enhance the accuracy and reliability of the error monitoring process, several

improvements are recommended.

- Sample Size: Increasing the sample size beyond five records per day would provide a

more comprehensive view of the error distribution, reducing sampling variability and

improving the sensitivity of the control chart to detect shifts or trends.

- Automation: Implementing automated error detection systems can minimize human

error during data entry and provide real-time monitoring, allowing for quicker

identification and resolution of issues.

- Root Cause Analysis: conducting root cause analyses whenever the process is found

to be out of control can help identify specific factors contributing to increased error

rates, enabling targeted corrective actions. Regular training programs for data entry

personnel and periodic reviews of data management protocols can further reduce the

incidence of errors.

- Advanced Modals: Incorporating advanced statistical models that account for

potential overdispersion, such as the may also provide a better fit for the data if the

Poisson assumption proves inadequate.

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 Conclusion

The analysis of customer error data using a c-chart has provided significant insights into the

stability and control of the data entry process within the marketing company. By

systematically monitoring the total number of errors over 500 days, it was possible to assess

whether the process remained within statistically defined control limits, thereby indicating its

reliability and consistency.

While the c-chart serves as a robust tool for identifying variations and potential issues, the

evaluation of the Poisson distribution revealed areas where the model may or may not aptly

describe the error data, highlighting the need for careful consideration of underlying

assumptions. Despite certain limitations, the application of Total Quality Management

techniques, such as Statistical Process Control and descriptive statistics, has proven effective

in diagnosing process performance.

As learnt in the course of TQM, implementing the suggested improvements will further

strengthen the error monitoring framework, fostering a culture of continuous quality

enhancement and ensuring the integrity of customer records. Ultimately, maintaining a

controlled and efficient data management process is crucial for sustaining high-quality

standards and achieving organizational excellence.

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