Why control Quality ?

Controlling and improving quality has become an

important business strategy for - manufacturers,
distributors, transportation companies, financial services
organizations; health care providers, and government
agencies.

Quality is a competitive advantage. A business that

can delight customers by improving and controlling
quality can dominate its competitors.
 Definition of Quality

Quality means fitness for use.

There are two general aspects of fitness for use:
quality of design [ Design of Experiments ]
quality of conformance - how well the product / Service
conforms to the specifications required by the design.
[ Statistical Quality Control ]

The largest allowable value for a quality characteristic is

called the upper specification limit (USL), and the
smallest allowable value for a quality characteristic is
called the lower specification limit (LSL).
Quality is inversely proportional to variability.

Implies :
variability in the important characteristics of a product -decreases,
the quality of the product increases.
Quality improvement is the reduction of variability in processes
and products.
Quality is inversely proportional to variability.
 Why Statistical Quality Control ?
Since variability can only be described in statistical terms,
statistical methods play a central role in quality improvement
efforts.

Descriptive Statistics include:

The Mean- measure of central tendency

The Range- difference between
largest/smallest observations in a set of data

Standard Deviation measures the amount

of data dispersion around mean
Distribution of Data shape
Normal or bell shaped or

Skewed

Classify data on quality characteristics as either attributes or
variables data.
 Three SQC Categories

Statistical quality control (SQC): the term used to describe the set of statistical
tools used by quality professionals; SQC encompasses three broad
categories of:
1. Statistical process control (SPC)
2. Descriptive statistics include the mean, standard deviation,
and range
Involve inspecting the output from a process
Quality characteristics are measured and charted
Helps identify in-process variations
3. Acceptance sampling used to randomly inspect a batch of goods
to determine acceptance/rejection
Does not help to catch in-process problems
 Sources of Variation
Variation exists in all processes.
Variation can be categorized as either:
Common or Random causes of variation, or
Random causes that we cannot identify
Unavoidable, e.g. slight differences in process variables like
diameter, weight, service time, temperature
Assignable causes of variation
Causes can be identified and eliminated: poor employee
training, worn tool, machine needing repair
 Statistical Methods for Quality Control and
Improvement
statistical process control [ Online Tool ]
Design of experiments, [Offline Tool ]
They are often used during development activities and the early
stages of manufacturing.
Acceptance sampling.
Done at incoming raw materials or components point , or final
production.
This model represents manufacturing or service processes.
A process in a financial institution that processes Automobile
Loan Applications.
 15-1.2: Statistical Process Control

Statistical process control is a collection of

tools that when used together can result in
process stability and variance reduction

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John Wiley & Sons, Inc. Applied Statistics and Probability for Engineers, by Montgomery and Runger.
 15-1.2: Statistical Process Control

The seven major tools are

1) Histogram
2) Pareto Chart
4) Cause and Effect Diagram
5) Defect Concentration Diagram
6) Control Chart
7) Scatter Diagram
8) Check Sheet

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John Wiley & Sons, Inc. Applied Statistics and Probability for Engineers, by Montgomery and Runger.
 15-2: Introduction to Control Charts

15-2.1 Basic Principles

A process that is operating with only chance

causes of variation present is said to be in
statistical control.
A process that is operating in the presence of
assignable causes is said to be out of control.
The eventual goal of SPC is the elimination of
variability in the process.

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John Wiley & Sons, Inc. Applied Statistics and Probability for Engineers, by Montgomery and Runger.
 15-2: Introduction to Control Charts

15-2.1 Basic Principles

A process that is operating with only chance

causes of variation present is said to be in
statistical control.
A process that is operating in the presence of
assignable causes is said to be out of control.
The eventual goal of SPC is the elimination of
variability in the process.

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John Wiley & Sons, Inc. Applied Statistics and Probability for Engineers, by Montgomery and Runger.
 A Control Chart is one of the primary techniques of
statistical process control (SPC).

This chart plots the averages of measurements of a quality characteristic in

samples taken from the process versus time (or the sample number).

The center line represents where this process characteristic should fall if
there are no unusual sources of variability present. The control limits are
determined from some simple statistical considerations.
If the process is in control, all the plotted points should have an essentially random
pattern.

Methods for looking for sequences or nonrandom patterns can be applied to control
charts as an aid in detecting out-of-control Conditions.
 Problems in Process
An assignable cause can result in many different types of
shifts in the process parameters.
The mean could shift instantaneously to a new value
and remain there (this is sometimes called a sustained
shift);
or it could shift abruptly; but the assignable cause
could be short-lived and the mean could then return to
its nominal or in-control value;
assignable cause could result in a steady drift or trend
in the value of the mean.
Process Mean is OK but process standard
deviation / Range increases / decreases. [ X-Bar
R Chart Comb] , [X-Bar S Chart Comb ]
 X-bar and R or S Control Charts
UCL = + 3 / n
UWL = + 2 / n
LWL = - 2 / n
LCL = -2 / n

The constants D 3 and D 4 are tabulated for various values of n

There is a well-known relationship between the range of a sample from a normal
distribution and the standard deviation of that distribution. The random variable W =
R/s is called the relative range. The parameters of the distribution of W are a function
of the sample size n. The mean of W is d2.
Control Limits for the S- Chart

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John Wiley & Sons, Inc. Applied Statistics and Probability for Engineers, by Montgomery and Runger.
 John Wiley & Sons, Inc. Applied Statistics and Probability for Engineers, by Montgomery and Runger.
The value of depends on the method you use to estimate it. We
will look at three methods for estimating for subgroup data:
Average of the subgroup ranges(Most Used)
Average of the subgroup standard deviations
Pooled standard deviation
Average of the subgroup ranges
Average of the subgroup standard deviations
 Interpretation of x-Bar , R,S

a control chart can indicate an out-of-control condition even

though no single point plots outside the control limits, if the
pattern of the plotted points exhibits nonrandom or systematic
behavior.
Cyclic patterns
Cause : environmental changes such as temperature, operator
fatigue, regular rotation of operators and/or machines, or
fluctuation in voltage or pressure etc
A mixture

when the plotted points tend to fall near or slightly outside the
control limits, with relatively few points near the center line.

A mixture pattern can also occur when output product from

several sources (such as parallel machines) is fed into a
common stream which is then sampled for process monitoring
purposes.
A shift in process level

Shifts may result from the -

introduction of new workers; changes in methods, raw materials, or

machines;
a change in the inspection method or standards; or
a change in either the skill
A trend, or continuous movement in one direction
Trends are usually due to a gradual wearing out or deterioration
of a tool or some other critical process component.

They can also result from human causes, such as operator

fatigue or the presence of supervision. Finally, trends can result
from seasonal influences, such as temperature.
Stratification
A tendency for the points to cluster artificially around the center line.

There is a marked lack of natural variability in the observed pattern.

One potential cause of stratification is incorrect calculation of
control limits.

For example, suppose that a sample of size 5 is obtained by taking one

observation from each of five parallel processes. If the largest and smallest
units in each sample are relatively far apart because they come from two
different distributions, then R will be incorrectly inflated, causing the
limits on the x chart to be too wide. In this case R incorrectly measures the
variability between the different underlying distributions, in addition to the
chance cause variation that it is intended to measure.
Designing a control chart- the sample size and the
frequency of sampling.

Small Process Shift Larger Sample Size

Large Process Shift - Smaller Sample Sizes than previous case
Another way to evaluate the decisions regarding sample
size and sampling frequency is through the Average Run
Length (ARL) of the control chart.

ARL is the average number of points that must be plotted before a

point indicates an out-of-control condition.

If the process observations are uncorrelated, then for any Shewhart

control chart, the ARL can be calculated easily from

ARL =1/ p where p is the probability that any point exceeds

the control limits. This equation can be used to
evaluate the performance of the control chart.

forthe x chart with three-sigma limits, p = 0.0027 is the probability that a

single point falls outside the limits when the process is in control.
Therefore, the average run length of the x chart when the process is in
control (called ARL 0 ) is ARL 0 = 1/p= 1/.0027= 370. That is, even if the
process remains in control, an out-of-control signal will be generated every
370 samples, on the average.
 Rational Subgroups
The rational sub-group concept means that subgroups or samples
should be selected so that if assignable causes are present,
The chance for differences between subgroups will be maximized,
while the chance for differences due to these assignable causes
within a subgroup will be minimized.
Time order is frequently a good basis for forming subgroups
because it allows us to detect assignable causes that occur over
time.
Each sample consists of units that were produced at the same time
(or as closely together as possible).
It minimizes the chance of variability due to assignable causes within
a sample, and it maximizes the chance of variability between
samples if assignable causes are present. It also provides a better
estimate of the standard deviation of the process in the case of
variables control charts.
 A set of decision rules for detecting nonrandom patterns on
control charts.
1.One or more points outside of the control limits.
2.Two of three consecutive points outside the two-sigma warning limits but
still inside the control limits.
3.Four of five consecutive points beyond the one-sigma limits.
4.A run of eight consecutive points on one side of the center line.
5.Six points in a row steadily increasing or decreasing.
6.Fifteen points in a row in zone C (both above and below the center line).
7.Fourteen points in a row alternating up and down.
8.Eight points in a row on both sides of the center line with none in zone C.
9.An unusual or nonrandom pattern in the data.
10.One or more points near a warning or control limit.
 What is Process Capability?
Process capability compares the output of an in-control process to
the specification limits by using capability indices. The comparison
is made by forming the ratio of the spread between the process
specifications (the specification "width") to the spread of the
process values, as measured by 6 process standard deviation
units (the process "width").
process capability ratio (PCR) = Cp

= (USL LSL)
-------------------
6

= R
------
d2
Cp is valuable in measuring process capability. However, it has one
shortcoming: it assumes that process variability is centered on the
specification range. Unfortunately,this is not always the case.
 Control Chart for Attributes

Control charts for attributes are used to measure quality

characteristics that are counted rather than measured.
Attributes are discrete in nature and entail simple yes-or-no
decisions.
For example, this could be the number of non-functioning light
bulbs, the proportion of broken eggs in a carton, number of
complaints issued.
C-charts count the actual number of defects.
For example, we can count the number of complaints from
customers in a month
P-charts are used to measure the proportion of items in a
sample that are defective.
Examples are the proportion of broken cookies in a batch
 P- Chart
The center line is computed as the average proportion defective in
the population, p . This is obtained by taking a number of samples of
observations at random and computing the average value of p
across all samples.
Problems
 0.4
0.35
0.3 CL
0.25 VALUE
0.2 UCL
LCL
0.15
UWL
0.1 ULL
0.05
0
1 2 3 4 5 6 7 8 9 10
 The Shewhart Control Chart for Individual
Measurements

There are many situations in which the sample size used for process
monitoring is n = 1; that is, the sample consists of an individual unit.
In process plants, such as paper making, measurements on some
parameter such as coating thickness across the roll will differ very little
and produce a standard deviation that is much too small if the objective is
to control coating thickness along the roll.
In many applications of the individuals control chart, we use the moving
range two successive observations as the basis of estimating the
process variability.
 Measuring Six Sigma for Service Industry

The Six Sigma can be successfully linked to a service industry or to

a service function like finance and stores within a manufacturing
organization.
It will help you find out DPMO levels and also the present Sigma
level of a company.

Why Six Sigma

Failure cost Prevention Cost
Warranty Repair, Customer Complaints
Reliability Analysis in Design,
Customer Survey to Reveal Requirements

If for an error prevention cost is Rs 1 , then it will cost Rs 10 to detect In-house &
Rs 100 if detected by Customer
 Setting Six Sigma targets
In product related industry for example, the customer or buyer can define
certain specifications, which help identify and quantify parameters for Six
Sigma implementation.
In the service industry however, output being intangible, the company has to
set its own targets by identifying all the key characteristics of their service
and identifying the process measures that have a direct impact on these key
characteristics. Typically, the Six Sigma implementation strategy would
suggest that the company takes the following steps:

Identify the CTQ (Critical to Quality ) that is the most significant

Identify the root cause
Design a solution that would address this root cause
Implement this solution
Verify the effect of the solution by conducting audits at regular intervals
Improve the process if needed
 Six Sigma in the Accounts department
The management notices that most of the customer complaints are
related to vouchers handled by the company.
To reduce the number of customer complaints, the company should
aim to reduce the number of errors in the vouchers.
The CTQs identified in the accounts department, are errors pertaining
to Amount, Tax, Code and Date.
The team needs to find out the Defects per million opportunities
For this they have to analyze sample vouchers. These should be
selected randomly.
The team inspected 1000 vouchers. And found a total of 120 defects.
Therefore, defects per invoice = 120/1000 = 0.12
And Defect per CTQ = 0.12/4 = 0.03
This value is then expressed in terms of Defects per million opportunities. It
thus becomes 30,000 ppm.
The table assumes a 1.5 sigma shift because processes tend to exhibit instability of
that magnitude over time.
Area: Call Center
Customer Quote: I consistently wait too long to speak to a representative.
CTQ Measure: Time on hold (seconds)
CTQ Specification: Less than 60 seconds from call connection to the
automated response system
Defect: Calls with hold time equal and greater than 60 seconds
Unit: Call
Opportunity: 1 per call

Calculate Sigma
Defects: 263 calls
Units: 21,501 calls
CTQ = 263/21,501=0.012 , CPK = 1.250 < 2 (6 sigma) 3.4 ppm
Opportunities: 1 per call
Sigma: 3.75