Quality Concepts

Statistical Process Control

 Basics of Statistical
Process Control
 Statistical Process Control
(SPC)
 monitoring production process
to detect and prevent poor UCL
quality
 Sample
 subset of items produced to
use for inspection LCL
 Control Charts
 process is within statistical
control limits
 SPC in TQM
 SPC
 tool for identifying problems and
make improvements

 contributes to the TQM goal of

continuous improvements
SQC in Services
 Statistical measurements are required and it is more
difficult to measure the quality of a service
 Services produce more intangible products
 Perceptions of quality are highly subjective

 A way to deal with service quality is to devise

quantifiable measurements of the service element
 Check-in time at a hotel
 Number of complaints received per month at a restaurant
 Number of telephone rings before a call is answered
 Acceptable control limits can be developed and charted
 Applying SPC to Service

 Nature of defect is different in services

 Service defect is a failure to meet
customer requirements
 Monitor times, customer satisfaction
 Applying SPC to Service
(cont.)
 Hospitals
 timeliness and quickness of care, staff responses to
requests, accuracy of lab tests, cleanliness, courtesy,
accuracy of paperwork, speed of admittance and checkouts
 Grocery Stores
 waiting time to check out, frequency of out-of-stock items,
quality of food items, cleanliness, customer complaints,
checkout register errors
 Airlines
 flight delays, lost luggage and luggage handling, waiting
time at ticket counters and check-in, agent and flight
attendant courtesy, accurate flight information, passenger
cabin cleanliness and maintenance
 Applying SPC to Service
(cont.)

 Fast-Food Restaurants
 waiting time for service, customer complaints,
cleanliness, food quality, order accuracy, employee
courtesy
 Catalogue-Order Companies
 order accuracy, operator knowledge and courtesy,
packaging, delivery time, phone order waiting time
 Insurance Companies
 billing accuracy, timeliness of claims processing,
agent availability and response time
 Variability

 Random  Non-Random
 common causes  special causes
 inherent in a process  due to identifiable
 can be eliminated factors
only through  can be modified
improvements in the through operator or
system management action
Sources of Variation in Production
and Service Processes
 Common causes of variation
 Random causes that we cannot identify
 Unavoidable
 Cause slight differences in process variables like diameter,
weight, service time, temperature, etc.
 Assignable causes of variation
 Causes can be identified and eliminated
 Typical causes are poor employee training, worn tool,
machine needing repair, etc.
Measuring Variation: The
Standard Deviation
Small vs. Large
Variation
Process Capability
 A measure of the ability of a process to meet
preset design specifications:
 Determines whether the process can do what we
are asking it to do
 Design specifications (tolerances):
 Determined by design engineers to define the
acceptable range of individual product
characteristics (e.g.: physical dimensions, elapsed
time, etc.)
 Based upon customer expectations & how the
product works (not statistics!)
Normal Distribution

95%
99.74%
-3 -2 -1 =0 1 2 3
Relationship between Process
Variability and Specification Width
Three Sigma Capability
 Mean output +/- 3 standard deviations
falls within the design specification
 It means that 0.27% of output falls
outside the design specification and is
unacceptable.
 The result: a 3-sigma capable process
produces 2700 defects for every million
units produced. But this is not 6-sigma
capability. That comes from p-value.
Six Sigma Capability
 Six sigma capability assumes the process is
capable of producing output where the mean
+/- 6 standard deviations fall within the
design specifications
 The result: only 3.4 defects for every million
produced taking into consideration +/- 4.5
standard deviations (as we shall see)
 Six sigma capability means smaller variation
and therefore higher quality
 Process Control Charts
Control Charts show sample data plotted on a graph with Center
Line (CL), Upper Control Limit (UCL), and Lower Control Limit
(LCL).
 Process Control Chart
Out of control
Upper
control
limit

Process
average

Lower
control
limit

1 2 3 4 5 6 7 8 9 10
Sample number
Setting Control Limits
Control Charts
 A graph that establishes
control limits of a  Types of charts
process  Attributes
 Control limits
 p-chart
 upper and lower bands of
a control chart  c-chart
 Variables
 range (R-chart)
 mean (x bar –
chart)
 Types of Control Charts
 Control chart for variables are used to
monitor characteristics that can be measured,
e.g. length, weight, diameter, time, etc.
 Control charts for attributes are used to
monitor characteristics that have discrete
values and can be counted, e.g. % defective,
number of flaws in a shirt, number of broken
eggs in a box, etc.
 Where to Use Control Charts
 Process has a tendency to go out of control
 Process is particularly harmful and costly if it goes
out of control
 Examples
 at the beginning of a process because it is a waste of
time and money to begin production process with bad
supplies
 before a costly or irreversible point, after which product
is difficult to rework or correct
 before and after assembly or painting operations that
might cover defects
 before the outgoing final product or service is delivered
 A Process Is in
Control If …

1. … no sample points outside limits

2. … most points near process average
3. … about equal number of points above
and below centerline
4. … points appear randomly distributed
Control Charts for Variables
 Mean (x-bar) charts
 Tracks the central tendency (the average
value observed) over time
 Range (R) charts:
 Tracks the spread of the distribution over
time (estimates the observed variation)
x-bar and R charts
monitor different parameters!
 Constructing a X-bar Chart:
A quality control inspector at the Cocoa Fizz soft drink company has
taken three samples with four observations each of the volume
of bottles filled. If the standard deviation of the bottling operation
is .2 ounces, use the data below to develop control charts with
limits of 3 standard deviations for the 16 oz. bottling operation.

Time 1 Time 2 Time 3

Observation 1 15.8 16.1 16.0

Observation 2 16.0 16.0 15.9

Observation 3 15.8 15.8 15.9

Observation 4 15.9 15.9 15.8

Step 1:
Calculate the Mean of Each Sample

Time 1 Time 2 Time 3

Observation 1 15.8 16.1 16.0

Observation 2 16.0 16.0 15.9

Observation 3 15.8 15.8 15.9

Observation 4 15.9 15.9 15.8

Sample means 15.875 15.975 15.9

(X-bar)
Step 2: Calculate the Standard
Deviation of the Sample Mean

σ  .2 
σx      .1
n  4

Which is nothing but the Standard Error - Remember

 Step 3: Calculate CL, UCL, LCL

 Center line (x-double bar):

15.875  15.975  15.9
x   15.92
3
 Control limits for ±3σ limits (z = 3):

UCLx  x  zσ x  15.92  3 .1  16.22

LCLx  x  zσ x  15.92  3 .1  15.62
Step 4: Draw the Chart
 An Alternative Method for the X-bar
Chart Using R-bar and the A2 Factor
Factor for x-Chart Factors for R-Chart
Sample Size
(n) A2 D3 D4
Use this method when 2 1.88 0.00 3.27
sigma for the process 3 1.02 0.00 2.57
distribution is not 4
5
0.73
0.58
0.00
0.00
2.28
2.11
known. Use factor A2 6 0.48 0.00 2.00
from Table given here 7 0.42 0.08 1.92
8 0.37 0.14 1.86
9 0.34 0.18 1.82
10 0.31 0.22 1.78
11 0.29 0.26 1.74
12 0.27 0.28 1.72
13 0.25 0.31 1.69
14 0.24 0.33 1.67
15 0.22 0.35 1.65
Step 1: Calculate the Range of
Each Sample and Average Range
Time 1 Time 2 Time 3
Observation 1 15.8 16.1 16.0
Observation 2 16.0 16.0 15.9
Observation 3 15.8 15.8 15.9
Observation 4 15.9 15.9 15.8
Sample ranges 0.2 0.3 0.2
(R)

0.2  0.3  0.2

R   .233
3
 Step 2: Calculate CL, UCL, LCL

 Center line:

15.875  15.975  15.9

CL  x   15.92
3
 Control limits for ±3σ limits:

UCLx  x  A2 R  15.92  0.73 .233  16.09

LCLx  x  A2 R  15.92  0.73 .233  15.75
 Control Chart for Range (R-Chart)
Center Line and Control Limit Sample Size
Factor for x-Chart Factors for R-Chart

calculations:
(n) A2 D3 D4
2 1.88 0.00 3.27
3 1.02 0.00 2.57
0.2  0.3  0.2 4 0.73 0.00 2.28
CL  R   .233 5 0.58 0.00 2.11
3
6 0.48 0.00 2.00
7 0.42 0.08 1.92
UCL  D4R  2.28(.233)  .53 8 0.37 0.14 1.86
9 0.34 0.18 1.82
LCL  D3R  0.0(.233)  0.0 10 0.31 0.22 1.78
11 0.29 0.26 1.74
12 0.27 0.28 1.72
13 0.25 0.31 1.69
14 0.24 0.33 1.67
15 0.22 0.35 1.65
R-Bar Control Chart
 Using x- bar and R-Charts
Together

 Process average and process variability must be in control.

 It is possible for samples to have very narrow ranges, but their
averages is beyond control limits.
 It is possible for sample averages to be in control, but ranges
might be very large.
 Control Charts for Attributes

 p-charts
 uses portion defective in a sample
 c-charts
 uses number of defects in an item
Control Charts for Attributes –
P-Charts & C-Charts
 Use P-Charts for quality characteristics that
are discrete and involve yes/no or good/bad
decisions
 Percent of leaking caulking tubes in a box of 48
 Percent of broken eggs in a carton

 Use C-Charts for discrete defects when there

can be more than one defect per unit
 Number of flaws or stains in a carpet sample cut from a
production run
 Number of complaints per customer at a hotel
Constructing a P-Chart:
A Production manager for a tire company has inspected the
number of defective tires in five random samples with 20
tires in each sample. The table below shows the number of
defective tires in each sample of 20 tires.

Sample Sample Number

Size (n) Defective
1 20 3
2 20 2
3 20 1
4 20 2
5 20 1
Step 1:
Calculate the Percent defective of Each Sample
and the Overall Percent Defective (P-Bar)

Sample Number Sample Percent

Defective Size Defective
1 3 20 .15
2 2 20 .10
3 1 20 .05
4 2 20 .10
5 1 20 .05
Total 9 100 .09
Step 2: Calculate the Standard
Deviation of P.

p(1-p) (.09)(.91)
σp = = =0.064
n 20
 Step 3: Calculate CL, UCL, LCL

 Center line (p bar):

CL  p  .09
 Control limits for ±3σ limits:

UCL  p  z σ p   .09  3(.064)  .282

LCL  p  z σ p   .09  3(.064)  .102  0
Step 4: Draw the Chart
Constructing a C-Chart:

Week Number of
The number of Complaints
weekly customer 1 3
complaints are 2 2
monitored in a 3 3
large hotel. 4 1
Develop a three 5 3
sigma control limits 6 3
For a C-Chart using 7 2
the data table On 8 1
the right. 9 3
10 1
Total 22
 Calculate CL, UCL, LCL

 Center line (c bar):

#complaints 22
CL    2.2
# of samples 10

 Control limits for ±3σ limits:

UCL  c  z c  2.2  3 2.2  6.65

LCL  c  z c  2.2  3 2.2  2.25  0
 Control Chart Patterns
UCL

UCL

LCL

Sample observations
consistently below the LCL
center line
Sample observations
consistently above the
center line
 Control Chart Patterns (cont.)
UCL

UCL

LCL

Sample observations
consistently increasing LCL

Sample observations
consistently decreasing
 Zones for Pattern Tests
UCL =
3 sigma = x + A2R
Zone A
= 2
2 sigma = x + 3 (A2R)

Zone B
= 1
1 sigma = x + 3 (A2R)
Zone C
Process =
x
average
Zone C
=
1 sigma = x - 1 (A2R)
3
Zone B
=
2 sigma = x - 2 (A2R)
3
Zone A
=
LCL 3 sigma = x - A2R
| | | | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10 11 12 13
Sample number
 Control Chart Patterns

 8 consecutive points on one side of the center line

 8 consecutive points up or down across zones
 14 points alternating up or down
 2 out of 3 consecutive points in zone A but still inside the control
limits
 4 out of 5 consecutive points in zone A or B
 Performing a Pattern Test
SAMPLE x ABOVE/BELOW UP/DOWN ZONE

1 4.98 B — B
2 5.00 B U C
3 4.95 B D A
4 4.96 B D A
5 4.99 B U C
6 5.01 — U C
7 5.02 A U C
8 5.05 A U B
9 5.08 A U A
10 5.03 A D B
 Sample Size

 Attribute charts require larger sample sizes

 50 to 100 parts in a sample
 Variable charts require smaller samples
 2 to 10 parts in a sample
Process Capability
 Tolerances
 design specifications reflecting product
requirements
 Process capability
 range of natural variability in a process
what we measure with control charts
Process Capability
 Design specifications (tolerances):
 Determined by design engineers to define the
acceptable range of individual product
characteristics (e.g.: physical dimensions, elapsed
time, etc.)
 Based upon customer expectations & how the
product works (not statistics!)
 A measure of the ability of a process to meet
preset design specifications:
 Determines whether the process can do what we
are asking it to do
 Process Capability
Design
Specifications

(a) Natural variation

exceeds design
specifications; process
is not capable of
meeting specifications
all the time.
Process
Design
Specifications

(b) Design specifications

and natural variation the
same; process is capable
of meeting specifications
most of the time.

Process
 Process Capability (cont.)
Design
Specifications

(c) Design specifications

greater than natural
variation; process is
capable of always
conforming to
specifications.
Process
Design
Specifications

(d) Specifications greater

than natural variation,
but process off center;
capable but some output
will not meet upper
specification.
Process
Process Capability Measures

Process Capability Ratio

tolerance range
Cp = process range

upper specification limit -

lower specification limit
=
6
Computing Cp
Net weight specification = 9.0 oz  0.5 oz
Process mean = 8.80 oz
Process standard deviation = 0.12 oz

upper specification limit -

lower specification limit
Cp = 6

= = 1.39
9.5 - 8.5
6(0.12)
 Process Capability Measures

Process Capability Index

x= - lower specification limit

3 ,
Cpk = minimum
upper specification limit - x =
3