Production

and Operations
Management: Eighth Edition

Manufacturing and
Services

PowerPoint Presentation for

Chapter 6 Supplement
Statistical Quality Control Chase
Aquilan
o
Irwin/McGraw-Hill Jacobs
©The McGraw-Hill Companies, Inc., 1998
Chapter 6 Supplement
Statistical Quality Control

 Acceptance Sampling
– Operating Characteristic Curve
 Process Control Procedures
– Variable data
– Attribute data
 Process Capability

2
Basic Forms of Statistical Sampling for
Quality Control

 Sampling to accept or reject the immediate lot of

product at hand (Acceptance Sampling).

 Sampling to determine if the process is within

acceptable limits (Statistical Process Control)

3
Acceptance Sampling
 Purposes
– Determine quality level
– Ensure quality is within predetermined level
 Advantages
– Economy
– Less handling damage
– Fewer inspectors
– Upgrading of the inspection job
– Applicability to destructive testing
– Entire lot rejection (motivation for improvement)
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Acceptance Sampling

 Disadvantages
– Risks of accepting “bad” lots and rejecting “good”
lots
– Added planning and documentation
– Sample provides less information than 100-percent
inspection

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Statistical Sampling--Data

 Attribute (Go no-go information)

– Defectives--refers to the acceptability of product
across a range of characteristics.
– Defects--refers to the number of defects per unit--may
be higher than the number of defectives.

 Variable (Continuous)
– Usually measured by the mean and the standard
deviation.
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Acceptance Sampling--Single Sampling
Plan

A simple goal

Determine (1) how many units, n, to

sample from a lot, and
(2) the maximum number of defective
items, c, that can be found in the
sample before the lot is rejected.

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Risk
 Acceptable Quality Level (AQL)
– Max. acceptable percentage of defectives defined by
producer.
 (Producer’s risk)
– The probability of rejecting a good lot.
 Lot Tolerance Percent Defective (LTPD)
– Percentage of defectives that defines consumer’s
rejection point.
  (Consumer’s risk)
– The probability of accepting a bad lot.
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Operating Characteristic Curve
1
0.9 = .05 (producer’s risk)
Probability of acceptance

0.8
0.7 n = 99
0.6 c=4
0.5
0.4
0.3 =.10
0.2 (consumer’s risk)
0.1
0
1 2 3 4 5 6 7 8 9 10 11 12
AQL LTPD
Percent defective
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Example: Acceptance Sampling
Zypercom, a manufacturer of video interfaces, purchases
printed wiring boards from an outside vender, Procard.
Procard has set an acceptable quality level of 1% and
accepts a 5% risk of rejecting lots at or below this level.
Zypercom considers lots with 3% defectives to be
unacceptable and will assume a 10% risk of accepting a
defective lot.

Develop a sampling plan for Zypercom and determine a

rule to be followed by the receiving inspection personnel.

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Sorting It Out

For this example, how do we determine

AQL?

?

LTPD?

?
11
Example: Continued
LTPD .03
= = 3 n (AQL) = 3.286
AQL .01

How can we determine the value of n?

What is our sampling procedure?

c LTPD/AQL n AQL c LTPD/AQL n AQL

0 44.890 0.052 5 3.549 2.613
1 10.946 0.355 6 3.206 3.286
2 6.509 0.818 7 2.957 3.981
3 4.890 1.366 8 2.768 4.695
4 4.057 1.970 9 2.618 5.426
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Example: Continued

c = 6, from Table
n (AQL) = 3.286, from Table
AQL = .01, given in problem

n(AQL/AQL) = 3.286/.01 = 328.6, or 329 (always round up)

Sampling Procedure:
Take a random sample of 329 units from a lot.
Reject the lot if more than 6 units are defective.
13
The Normal Curve (Revisited)

x

Z
-3 -2 -1 0 1 2 3

Averaging
reduces
variability

x 14
Control Limits

If we establish control limits at +/- 3 standard

deviations, then

we would expect 99.7% of our observations to fall

within these limits

x
LCL UCL
15
 UCL

LCL

Statistical UCL

Process
Control
LCL

UCL

LCL

See Exhibit S6.3 for other evidence prompting investigation

Constructing a p-Chart
Sample n Defectives
1 100 4
2 50 2
3 100 5
4 100 3
5 75 6
6 100 4
7 100 3
8 50 8
9 100 1
10 100 2
11 100 3
12 100 2
13 100 2
14 100 8
15 100 3
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Statistical Process Control--Attribute
Measurements (P-Charts)

T o ta l N u m b e r o f D efe c tiv e s
p =
T o ta l N u m b e r o f O b se rv a tio n s

p (1 - p )
Sp =
n

UCL = p + Z sp
LCL = p - Z sp
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1. Calculate the sample proportion, p, for each
sample.
Sample n Defectives p
1 100 4 0.04
2 50 2 0.04
3 100 5 0.05
4 100 3 0.03
5 75 6 0.08
6 100 4 0.04
7 100 3 0.03
8 50 7 0.14
9 100 1 0.01
10 100 2 0.02
11 100 3 0.03
12 100 2 0.02
13 100 2 0.02
14 100 8 0.08
15 100 3 0.03
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2. Calculate the average of the sample proportions.

55
p= = 0.04
1375
3. Calculate the standard deviation of the
sample proportion

p (1 - p) .04(1 - .04)
sp = = = .020467
n 91.6667

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4. Calculate the control limits.
UCL = p + Z sp
LCL = p - Z sp

.04  3(.020467)

UCL = 0.1014

LCL = -0.0214 (or 0)

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p-Chart (Continued)
5. Plot the individual sample proportions, the average
of the proportions, and the control limits
0.16

0.14

0.12

0.1 UCL
p 0.08

0.06

0.04

0.02

0 LCL
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Observation 22
Example: x-Bar and R Charts
Sample Obs 1 Obs 2 Obs 3 Obs 4 Obs 5
1 10.68 10.689 10.776 10.798 10.714
2 10.79 10.86 10.601 10.746 10.779
3 10.78 10.667 10.838 10.785 10.723
4 10.59 10.727 10.812 10.775 10.73
5 10.69 10.708 10.79 10.758 10.671
6 10.75 10.714 10.738 10.719 10.606
7 10.79 10.713 10.689 10.877 10.603
8 10.74 10.779 10.11 10.737 10.75
9 10.77 10.773 10.641 10.644 10.725
10 10.72 10.671 10.708 10.85 10.712
11 10.79 10.821 10.764 10.658 10.708
12 10.62 10.802 10.818 10.872 10.727
13 10.66 10.822 10.893 10.544 10.75
14 10.81 10.749 10.859 10.801 10.701
15 10.66 10.681 10.644 10.747 10.728
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Calculate sample means, sample ranges, mean
of means, and mean of ranges.
Sample Obs 1 Obs 2 Obs 3 Obs 4 Obs 5 Avg Range
1 10.68 10.689 10.776 10.798 10.714 10.732 0.116
2 10.79 10.86 10.601 10.746 10.779 10.755 0.259
3 10.78 10.667 10.838 10.785 10.723 10.759 0.171
4 10.59 10.727 10.812 10.775 10.73 10.727 0.221
5 10.69 10.708 10.79 10.758 10.671 10.724 0.119
6 10.75 10.714 10.738 10.719 10.606 10.705 0.143
7 10.79 10.713 10.689 10.877 10.603 10.735 0.274
8 10.74 10.779 10.11 10.737 10.75 10.624 0.669
9 10.77 10.773 10.641 10.644 10.725 10.710 0.132
10 10.72 10.671 10.708 10.85 10.712 10.732 0.179
11 10.79 10.821 10.764 10.658 10.708 10.748 0.163
12 10.62 10.802 10.818 10.872 10.727 10.768 0.250
13 10.66 10.822 10.893 10.544 10.75 10.733 0.349
14 10.81 10.749 10.859 10.801 10.701 10.783 0.158
15 10.66 10.681 10.644 10.747 10.728 10.692 0.103

Averages 10.728 0.220400

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 Control Limit Formulas

Exhibit
ExhibitS6.4
S6.4
x Chart Control Limits
n A2 D3 D4
rol Limits
UCL = x + A 2 R 2 1.88 0 3.27
3 1.02 0 2.57
LCL = x - A 2 R 4 0.73 0 2.28
5 0.58 0 2.11
6 0.48 0 2.00
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

25
x-Bar Chart

UCL = x + A 2 R  10.728 - .58(0.2204) = 10.856

LCL = x - A 2 R  10.728 - .58(0.2204) = 10.601
10.900

10.850 UCL
10.800

10.750
M eans

10.700

10.650

10.600
LCL
10.550
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Sam ple 26
R-Chart

UCL = D4 R  ( 2.11)(0.2204)  0.46504

LCL = D3 R  (0)(0.2204)  0
0 .8 0 0

0 .7 0 0

0 .6 0 0

0 .5 0 0
UCL
R 0 .4 0 0

0 .3 0 0

0 .2 0 0

0 .1 0 0

0 .0 0 0 LCL
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
S a m p le 27
Process Capability

 Process limits

 Tolerance limits

 How do the limits relate to one another?

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Process Capability Index, Cpk
 X  LTL UTL - X 
C pk = min  or 
 3 3 

Shifts in Process Mean 29

 Taguchi’s View of Variation
Exhibits
ExhibitsS6.9
S6.9&&S6.10
S6.10

High High

Incremental Incremental
Cost of Cost of
Variability Variability

Zero Zero

Lower Target Upper Lower Target Upper

Spec Spec Spec Spec Spec Spec

Traditional View Taguchi’s View

30