STATISTICAL QUALITY CONTROL

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 Content
• The seven tools of quality
• Statistical Fundamentals – Measures of central
Tendency and Dispersion, Population and
Sample, Normal Curve, Control Charts for
variables and attributes, Process capability
•Concept of six sigma, New seven
Management tools.

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 OBJECTIVE
• Understanding the seven QC tools of
continuous improvement.
• Understanding basic statistical concepts like
measurements of central tendency,
population, normal distribution.
• Application of data based approach.
• Studying statistical control chart.

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The Seven Tools of Quality

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 The Seven Tools of Quality
• Cause-and-effect diagram (also called Ishikawa or fishbone chart):
Identifies many possible causes for an effect or problem and sorts
ideas into useful categories.
• Check sheet: A structured, prepared form for collecting and
analyzing data; a generic tool that can be adapted for a wide variety
of purposes.
•Control charts: Graphs used to study how a process changes over
time.
•Histogram: The most commonly used graph for showing frequency
distributions, or how often each different value in a set of data
occurs.
•Pareto chart: Shows on a bar graph which factors are more
significant.
•Scatter diagram: Graphs pairs of numerical data, one variable on
each axis, to look for a relationship.
•Stratification: A technique that separates data gathered from a
variety of sources so that patterns can be seen (some lists replace
“stratification” with “flPoapwiyacBhhoawrmtik”,Aossrista“nrtuPrnofescsohr,art”). 5
Sharda University.
 Cause-and-effect diagram
• It is a picture com posed of lines and symbols
designed to represent a meaningful relationship
between an effect and its cause. It is developed
by Dr. Kaoru Ishikawa in 1943 and it is sometimes
referred to as Ishikawa diagram.
Cause-and-effect diagram
Cause-and-effect diagram
Pareto Diagram: (Vital few/useful many)
Pareto Diagram
 Pareto Rule : ABC Analysis
The following information is known about a group of items.
Classify the items as A, B, & C.
 Construction of Pareto Diagram
• There are five steps:
• Determine the method of classifying the data: by
problem, cause, nonconformity etc.
• Decide if dollars, frequency, or both
are to be used to rank the
characteristics.
• Collect data for an appropriatetime
interval or use historical data.
• Summarize the data and rank order
categories from largest to smallest.
• Construct the diagram and find the vital few.
Process Flow Diagram
For many products and services, it may be useful
to construct a process flow diagram. This diagram
shows process flow of the products and services
as it moves through various processing operations
Check Sheets
• The main purpose of
check sheets is to
ensure that the data is
collected carefully and
accurately by operating
personnel. Data should
be collected in such a
manner that it can be
quickly and easily used
and analyzed.
 Check Sheets
Check sheets typically employ a heading that answers
the Five Ws:
•Who filled out the check sheet
•What was collected (what each check represents, an
identifying batch or lot number)
•Where the collection took place (facility, room, apparatus)
•When the collection took place (hour, shift,
day of the week)
•Why the data were collected
 HISTOGRAM
• A histogram is a graphical display of tabulated frequencies. A
histogram is the graphical version of a table which shows what
proportion of cases fall into each of several or many specified
categories.
It differs from a bar chart in that it is the area of the bar that
denotes the value, not the height, a crucial distinction when
the categories are not of uniform width.
 CONTROL CHARTS
• The control chart, also known as the ‘Shewhart chart’ or
‘process-behavior chart’ is a statistical tool intended to help
assess the nature of variation in a process and to facilitate
forecasting and management. Variations occur in a process
due to many sources such as equipment, materials,
environment, and operator.
 SCATTER DIAGRAM
Scatter diagram is the simplest way to determine the cause-
and-effect relationship between two variables. Examples of
cause-and-effect relationships are:
•Cutting speed and tool life
•Temperature and material hardness
•Training and errors
•Breakdowns and equipment age
Dr. Juran and Dr. Kaoru Ishikawa popularize the use of this
chart in the field of Quality Assurance.
Scatter Diagram
 CONTROL CHARTS FOR
VARIABLES & ATTRIBUTES
 Control Chart for variables
and attributes
• For Variables: They are used to achieve and maintain an
acceptable quality level for a process whose product can be
subjected to quantitative measurement such as diameter of a
hole, length of a bolt, thickness of a pipe, specific resistance
of a wire etc.
• For Attributes: They are used to achieve and maintain an
acceptable quality level for a process whose product can not
be subjected to quantitative measurement but can be
classified as good or bad, as acceptable or non acceptable, as
defective or non-defective. For instance surface finish of a
table, colour or brightness of an article is either acceptable or
not acceptable.
 Control Chart X & R Chart
• Variable Control Chart:
X, R Chart
Trial Central Lines & Control Limits
• The central lines for the and R charts are
obtained using the equations,
Trial Control Limits
Trial Central Lines & Control Limits
• In practice the calculations are simplified by
using the product of average of the range R
and factor A2 to replace the three standard
deviation, in the equation for
the X bar chart. Therefore the new equations
are,
Example
Appendix
 Revised Central Lines and
Control Limits
• Revised central lines and control limits are
established by discarding out of control points
with assignable causes and recalculating the
central lines and control limits.
Example
Trial Solution
Trial Solution
 State of Control
• When the uncontrollable causes are eliminated from the
process to the extent that the points plotted on the control
chart remain within control limit. No higher degree of
uniformity can be attained with the existing process.
• However greater uniformity can be attained through a change
in the basic process resulting from quality improvement ideas.
 Process Capability
• Control limits are established as a function of the averages.
Specifications, on the other hand, are the permissible
variation in the size of the part and are, therefore, for
individual values. The specification or tolerance limits are
established by design engineers to meet a particular function.
• The true process capability cannot be determined untill the X-
Bar and R charts have achieved the optimal quality
improvement without a substantial investment for new
equipment or equipment modification.
 Process Capability
• When the process is in statistical control, process
capability is equal to 6σ, where,
• σ = Ro / d2
• d2 = Factor from Appendix So,
Process Capability
Process Capability
Process Capability index
 Process Capability Index, Cpk

Process Capability Index, Cpk, is an index that measures the potential

for a process to generate defective outputs relative to either upper
or lower specifications.

=
x=–Lower specification Upper specification – x
Cpk = Minimum of ,
3 3

We take the minimum of the two ratios because it gives the worst-
case situation.
 Process Capability index
• The capability index does not measure process
performance in terms of the nominal or target
value. This measure is accomplished using Cpk,
which is,
What Capability index represents
 Problem
The following table gives the average and range in
kilograms for tensile tests on an improved plastic cord.
The subgroup size is 4. Determine the trial central line
and control limits. If any points are out of control,
determine the revised limits and central line.
Determine the process capabilities.
CONTROL CHARTS FOR ATTRIBUTES
 Control charts for attributes
• The three most commonly used control charts
for attributes are,
1.Control chart for fraction defective (p-Chart)
2.Control chart for number of defective (np-
chart)
3.Control Chart for number of defect (C-chart)
 Control chart for fraction defective
(p- Chart)
• Let samples (10 to 20) of size n be taken from the
production process randomly at different time
intervals. If d is the number of defectives in a
sample, then the fraction defective in the sample
is,
• P = d/n
Where, d= No. of defectives in sample. n= Total no.
of items in the sample
Then, P = Total no. of defective items in all the
samples inspected / Total no. of items in all the
samples inspected.
 Calculation of Mean line, UCL & LCL
for p-chart
• The statistical theory of binomial is used to construct
the p-chart. According to this distribution, mean is
and standard deviation σp is given by,
• σp =
• CL =
• UCL = + 3 σp

• LCL = - 3 σp
 Control Chart for Number
of Defectives (np-Chart)
• Let samples of size n be taken from the production
process randomly at different intervals of time. If d is
the number of defectives in the sample and p is the
fraction defective in the sample then d = np
Control Chart for Number
of Defectives (np-Chart)
 Control Chart for Number
of Defectives (C-Chart)
• Has been discussed in class.
• Please refer to the numericals practiced in the
class or refer to the book.
CONCEPT OF SIX SIGMA
What is Six Sigma ?

• Measure of how well a process is performing

- Six Sigma process produces 3.4 defects per
million opportunities
- Most companies are at 3-4 sigma level
• Philosophy of reducing defects so we can
improve customer satisfaction and reduce
costs
• Business Strategy that increases process
performance resulting in enhanced
customer satisfaction and improved bottom
line.
 CONCEPT OF SIX SIGMA
• Six-sigma is an approach to continually improve and reduce
variations in the process that contribute to waste and poor
quality.
• It is a measure of how well a process is performing.
• Six sigma is a well structured, data driven
methodology for eliminating defects, waste, or quality control
problems of all kinds
in every area.
• It Focus on not making mistakes (Mistake proofing) and
reducing the variability in the processes.
• Six Sigma properly implemented will
•Improve customer satisfaction,
•significantly improve quality,
•improve the way we launch new products, and
•create a continuous improvement mindset.
 SIX SIGMA
"Delivering Tomorrow's Performance Today"
 PRESENTATION LAYOUT
• Six Sigma: An overview
• What is Sigma and Six Sigma?
• Why Six Sigma?
• Six Sigma Levels
• Six Sigma Methodology and Management
• Key Roles for Six Sigma
• Tools for Six Sigma
• Trainings and Certifications
• Conclusion

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• Your first question is likely….
What is Six Sigma?

• Your second question is likely…

Why Six Sigma?
 WHAT IS SIGMA ?

• A term (Greek) used in statistics to represent

standard deviation from mean value, an indicator
of the degree of variation in a set of a process.
• Sigma measures how far a given process deviates
from perfection. Higher sigma capability, better
performance
 WHAT IS SIX SIGMA?
• Six Sigma - A highly disciplined process that
enables organizations deliver nearly perfect
products and services.
• The figure of six arrived statistically from current
average maturity of most business enterprises
• A philosophy and a goal: as perfect as practically
possible.
• A methodology and a symbol of quality.

Contd…
 WHAT IS SIX SIGMA?
• A statistical concept that measures a process in
terms of defects – at the six sigma level, there
3.4 defects per million opportunities.

Contd…
But,PaiptiyaiBshomwmuik,cAshsitmantPororfeess!or,
Sharda University.
 WHAT IS SIX SIGMA
Six Sigma is not:
•A standard
•A certification
•Another metric like percentage Rather!
•It is a Quality Philosophy and the way of improving
performance by knowing where you are and where
you could be.
•Methodology to measure and improve company’s
performance, practices and systems
 WHY SIX SIGMA ?
• Six Sigma emerged as a natural evolution in business
to increase profit by eliminating defects
• The Current business environment now demands
and rewards innovation more than ever before due
to:
 Customer Expectations
 Technological Change
 Global Competition
 Market Fragmentation
 SIGMA LEVELS
Sigma Level ( Process Defects per Million
Capability) Opportunities
2 308,537

3 66,807

4 6,210

5 233

6 3.4
COMPANIES USING
Six Sigma is in use in
virtually all industries
around the world. Some
of companies can be
listed as:
• Motorola
• Ericsson
• General Electric
• Sony
• Ford Motor Co.
• CITI bank
 SIX SIGMA METHODOLOGY
(It takes money to save money)
• BPMS
Business Process Management System

• DMAIC
Six Sigma Improvement Methodology

• DMADV
Creating new process which will perform at Six
Sigma
 BUSINESS PROCESS
MANAGEMENT
SYSTEM:
• BPM strategies emphasize on process
improvement and automation to derive
performance
• Combining BPM strategies with sigma six is
most powerful way to improve performance
• Both strategies are not mutually exclusive but
some companies produced dramatic results by
combining them.
 WHAT IS DMAIC?
(Define,Measure,Analyse,Improve.Control)
• A logical and structured
approach to problem solving
and process improvement.

• An iterative process
(continuous improvement)

• A quality tool which focus on

change management style.
 PHASES
Phases of Six Sigma are:
–Define specific goals to achieve
outcomes, consistent with customers
demand and business strategy
–Measure reduction of defects
–Analyze problems ,cause and effects
must be considered
–Improve process on bases of
measurements and analysis
–Control process to minimize defects
 WHAT IS DMADV?

• Acronym for:
 Define the project
 Measure the opportunity
 Analyze the process
options
 Design the process
 Verify the performance
WHEN SHOULD SIX SIGMA BE USED?

Its usage depends on the type of business. In general,

“If there are processes that generate a lot of negative

customer feedback, whether that customer is internal
or external, the components of Six Sigma should be
considered as a means to study and rectify the
problem.”
 BENEFITS OF SIX SIGMA
• Generates sustained success
• Sets performance goal for everyone
• Enhances value for customers
• Accelerates rate of improvement
• Promotes learning across boundaries
• Executes strategic change
USAGE OF SIX SIGMA
 SIX SIGMA MANAGEMENT

When practiced as a management system, Six Sigma is a

high performance system for executing business
strategy.
Six Sigma is a top down solution to help organizations:
• Align their business strategy to critical improvement
efforts
• Mobilize teams to attack high impact projects
• Accelerate improved business results
• Govern efforts to ensure improvements are sustained
 KEY ROLES FOR SIX SIGMA
Six Sigma identifies several key roles for its
successful implementation: Top
• Executive leadership
• Champions
• Master Black Belts (Identify projects& functions)
• Black Belts (Identify non value added activities)
• Green Belts ( works on small projects )
Bottom

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 TOOLS & TECHNIQUES

• 7QC tools
 Check Sheets (collect data to make improvements)
 Pareto Charts( define problem and frequency)
 Cause and effect diagram (Identify possible causes
to solve problem)
 Histogram (Bar charts of accumulated data to
evaluate distribution of data)
 Scatter diagram (plots many data points and
pattern between two variables)
 Flow Chart (Identify unwanted steps)
 Control charts (Control limits around mean value)84
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 Fundamental Themes of
Six Sigma
• Six Sigma is based around a number of central
themes
– A genuine focus on the customer
– Data and fact driven Management
- Process focus, management & improvement
– Proactive management
– Team based problem solving projects
– Drive for perfection, tolerance for failure

Contd….
 Fundamental Themes of
Six Sigma
• A genuine focus on the customer
– Six Sigma measures start with customer satisfaction
– Emphasis on understanding customer expectations and
requirements

• Data and fact driven Management

– Speaking with data (not opinions!)
– Management decisions based on fact
– Develop understanding of internal processes

Contd….
 Fundamental Themes of
Six Sigma
• Process focus, management & improvement
– Understanding the process is the key aspect
– Control the inputs, and improve process

• Proactive management
– Understanding of Six Sigma principles
– Defining the root cause of problems
– Setting and maintaining aggressive improvement targets
– Challenging ‘why’ things are done this way

Contd….
 Fundamental Themes of
Six Sigma
• Team based collaboration
– Six Sigma is teamwork focused
– Project lead by process expert
– Facilitated by Six Sigma Black Belt
– Multi-skill experts within project team

• Drive for perfection, tolerance for failure

– Being prepared to fail during improvement
– Understanding why something failed
– Improving it next time
Six Sigma
Improvement Strategy

• Phase 0: Process Definition

• Phase I: Process Measurement
• Phase II: Process Analysis
• Phase III: Process Improvement
• Phase IV: Process Control
 DMAIC
Six Sigma Improvement Model

Measure
Define

Control Analyze

Improve
 Six Sigma Structure

Management
Team

Master Project
Black Belt Champion
Green
Belt

Functional Groups Black Belt

HR, Finance, IT and
Engg, QA, etc. Team
 SIX SIGMA
ORGANIZATIONAL
STRUCTURE

A typical six sigma structure in manufacturing organization

Quality Leader/ Manager (QL/QM) - The quality leader’s
responsibility is to represent the needs of the customer and to
improve the operational effectiveness of the organization.
Master Black Belt (MBB) - Master Black Belts are typically
assigned to specific area or function of a business or organization.
Black Belt (BB) - Black Belts lead quality projects and work full
time until they are complete.
Green Belt (GB) - Green Belts are employees
trained in six sigma who spend a portion of their time in completing
projects, but
maintain their regular work role and responsibilities.
 Case Study
Bombay Tiffenwallas
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 Case Study
Bombay Tiffenwallas

(Source: Forbes Magazine)

Bombay Tiffanwallas (Raghunath Medge – president)
-They make
one Error on every 16 millions transactions 5000
Tiffanwallas deliver 175,000 lunches everyday and
take the empty tiffin back
-They make
one mistake in 2 month
175,000x2(transaction per day) x30 (days)=10,500,000
10,500,000x2 months= 21,000,000 (21 millions)
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Case Study
Bombay Tiffenwallas

(Source: Forbes Magazine)

The charge for this service = 150 Rupees per month
Tiffenwallah monthly income= Rs 3,250
Tiffenmen’s Association gets Rs 10 per worker Send
to Charity = Rs. 50, 000 per month Superb!!!
Service and Charity Too
Can anyone ask for more????

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NEW SEVEN MANAGEMENT TOOLS

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 New seven Management tools
• Affinity Diagram: organizes a large number of ideas into their
natural relationships.
•
Relations Diagram: shows cause-and-effect relationships and helps
you analyze the natural links between different aspects of a
complex situation.
•
Tree Diagram: breaks down broad categories into finer and finer
levels of detail, helping you move your thinking step by step from
generalities to specifics.
•
Matrix Diagram: shows the relationship between two, three or four
groups of information and can give information about the
relationship, such as its strength, the roles played by various
individuals, or measurements.

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 New seven Management tools
•
Matrix Data Analysis: a complex mathematical technique for
analyzing matrices, often replaced in this list by the similar
prioritization matrix. One of the most rigorous, careful and time-
consuming of decision-making tools, a prioritization matrix is an L-
shaped matrix that uses pairwise comparisons of a list of options to a
set of criteria in order to choose the best option(s).
•
Arrow Diagram: shows the required order of tasks in a project or
process, the best schedule for the entire project, and potential
scheduling and resource problems and their solutions.
•
Process Decision Program Chart (PDPC): systematically identifies
what might go wrong in a plan under development.

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organizes a large number of ideas into their
natural relationships.

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Relation Diagram

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Tree Diagram

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Matrix Diagram

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Matrix Analysis

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Arrow Diagram

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END OF UNIT 3

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