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Lect 6 - Process Capability
Lect 6 - Process Capability
for Attributes
p-chart: A chart used for controlling the
proportion of defective services or
products generated by the process.
p = p(1 – p)/n
Where
n = sample size
p = central line on the chart, which can be either the historical
average population proportion defective or a target value.
– –
Control limits are: UCLp = p+zp and LCLp = p−zp
Is the booking process out of statistical control? Use three-sigma control limits.
Hometown Bank
Using a p-Chart to monitor a process
n = 2500 Sample Wrong Proportion
147 Number Account # Defective
p= = 0.0049
12(2500) 1 15 0.006
2 12 0.0048
p = p(1 – p)/n 3 19 0.0076
4 2 0.0008
p = 0.0049(1 – 0.0049)/2500 5 19 0.0076
6 4 0.0016
7 24 0.0096
p = 0.0014
8 7 0.0028
UCLp = 0.0049 + 3(0.0014) 9 10 0.004
10 17 0.0068
= 0.0049
0.0091 – 3(0.0014) 11 15 0.006
LCLp =
12 3 0.0012
= 0.0007
Total 147
Hometown Bank
Using a p-Chart to monitor a process
Example
In class Problem
Control Charts
Two types of error are possible with control
charts
• A type I error occurs when a process is
thought to be out of control when in fact it
is not
• A type II error occurs when a process is
thought to be in control when it is actually
out of statistical control
These errors can be controlled by the choice
of control limits
Process Capability
Nominal
value
Process distribution
Lower Upper
specification specification
20 25 30
Process is capable
Process Capability
Nominal
value
Process distribution
Lower Upper
specification specification
20 25 30
=
Cpk = Minimum of
x – Lower specification , Upper specification – x=
3 3
We take the minimum of the two ratios because it gives the worst-
case situation.
Intensive Care Lab
Example
The intensive care unit lab process has an average turnaround time
of 26.2 minutes and a standard deviation of 1.35 minutes.
The nominal value for this service is 25 minutes with an upper
specification limit of 30 minutes and a lower specification limit of 20
minutes.
The administrator of the lab wants to have three-sigma performance
for her lab. Is the lab process capable of this level of performance?
= =
Cpk = Minimum of x – Lower specification , Upper specification – x
3 3
Process
Cpk = Minimum of 1.53, 0.94 = 0.94 Capability
Index
Intensive Care Lab
Assessing Process Capability
Example
Upper specification - Lower specification
Cp =
6
30 - 20
Cp = = 1.23 Process Capability Ratio
6(1.35)
Four sigma
Two sigma
Lower Upper
specification specification
Mean
What it means to operate at 6-sigma
Expected frequency outside Approx. frequency for daily
Range Population in range
range event
ISO
A set of standards governing documentation
of a quality program.
9000
Documentation standards that require participating
14000
Malcolm Baldrige National Quality
Award
Named after the late secretary of commerce, a strong proponent of
enhancing quality as a means of reducing the trade deficit. The
award promotes, recognizes, and publicizes quality strategies and
achievements.
1. Category 1 ─ Leadership 120 points
2. Category 2 ─ Strategic Planning 85 points
3. Category 3 ─ Customer and Market Focus 85 points
4. Category 4 ─ Measurement, Analysis, and
Knowledge Management 90 points
5. Category 5 ─ Human Resource Focus 85 points
6. Category 6 ─ Process Management 85 points
7. Category 7 ─ Business Results 450 points