Statistical Process Control

Relating Applied Statistics to Quality Control

Contents
Introduction to Statistics
Descriptive Analysis
Inferential Analysis
Statistical Quality Control
Descriptive Statistics
Statistical Process Control (SPC)
SPC: 7 Basic Quality Tools
Acceptance Sampling
Introduction to Statistics
The Nature of Statistics and the Collection of Data
What is Statistics?
A branch of mathematics used
to summarize, analyze, and
interpret a group of numbers or
observations
Descriptive Statistics
Procedures used to summarize, organize, and make sense of a set of scores
or observations
Typically presented graphically, in tabular form (in tables), or as summary
statistics (single values)
Inferential Statistics
Procedures used that allow researchers to infer or generalize observations
made with samples to the larger population from which they were selected
Before we go
Which type of tables, graphs,
and summary measures to use
with our data?
Data
Measurements or observations
that are typically numeric
Datum = raw score
(a single measurement or observation)
Data Concepts
Sources of Data
Internal vs.
External
Data
Elementary
Units &
Variables
Population
vs. Sample
Qualitative
vs.
Quantitative
Variables
Observational
Study (Survey)
Experiment
Census
Sample
Survey
Why Sampling?
Reducing cost of
collecting and processing
data
Census is physically
impossible
Census is senseless
whenever the acquisition
of the desired
information destroys the
elementary units of
interest
Census is senseless
whenever it produces
information that comes
too late
Sampling can provide
more detailed
information than a
census
Sampling can provide
more accurate data than
a census
Sampling
Techniques
Probability
Simple
Random
Systematic Stratified Cluster
Non-Probability
Convenience Judgmental Quota
Samples Types & Errors
Stratified Sampling
Systematic Sampling
Cluster Sampling
Probability Sampling
Simple Random Sample
Non-Probability Sampling
Convenience Most Easy Most Dangerous
Judgmental
Most convenient based on
researcher judgment
Quota
Researcher selects people
according to some fixed quota
Sampling Error
Random Error: arise from
random fluctuations in
the measurements
Systematic Error (Bias):
consistent and repeatable
(constant offset)
Variable Data Types
Qualitative = Quality
(Categorical Variables)
Quantitative = Quantity
(Numeric Variables)
Levels of Measurement
Variable Data
Qualitative
(Categorical)
Nominal
(no natural
order between
the categories)
Ordinal
(ordering)
Quantitative
Interval
(no true zero)
Ratio
(there is a true
zero)
Discrete
(variable takes on a limited
number of outcomes)
Continuous
(variables can take on tiniest
fractional values)
continuous data where the differences (intervals)
between the numbers are comparable
Type
Measurement
Level
Minitab 16 Software
A statistical software used to
analyze data
o Calculating basic statistics
o Graphing data
o Running hypothesis tests
Starting Minitab 16
Minitab Interface
Opening a Worksheet
Descriptive Statistics
The Effective Presentation of Data
The Presentation of Data
Tables & Graphs
Tables
Absolute Frequency
Distribution
Relative Frequency
Distribution
Cumulative Frequency
Distribution
Graphs
Frequency
Histograms
Bar & Column Charts
Line Graphs
Pie Charts
Stem-&-Leaf
Diagrams
Box-&-Whisker
Diagrams
Absolute Frequency
Distribution
Class (size of profit in
million of dollars)
Absolute Class Frequency (number of companies in class)
Tally Count
-1,500 to under 0
|||
3
0 to under 500
|||||||||||||||||||||||||||||||||
41
500 to under 1,000
||||||||||||||||||||||||||
32
1,000 to under 1,500
||||||||
9
1,500 to under 2,000
|||||
6
2,000 to under 2,500
|||||
6
2,500 to under 5,500
|||
3
Total 100
Relative Frequency
Distribution
Class (size of profit in
million of dollars)
Absolute Class Frequency
(number of companies in
class)
Relative Class Frequency
(proportion of all
companies in class)
-1,500 to under 0 3 .03
0 to under 500 41 .41
500 to under 1,000 32 .32
1,000 to under 1,500 9 .09
1,500 to under 2,000 6 .06
2,000 to under 2,500 6 .06
2,500 to under 5,500 3 .03
Total 100 1.00
Cumulative Frequency
Distribution
Class (size of profit
in million of dollars)
Absolute Class
Frequency (number
of companies in
class)
Cumulative Absolute
Class Frequency
(number of
companies in class or
lower ones)
Relative Class
Frequency
(proportion of all
companies in class)
Cumulative Relative
Class Frequency
(proportion of all
companies in class or
lower ones)
-1,500 to under 0 3 3 .03 .03
0 to under 500 41 3 + 41 = 44 .41 .03 + .41 = .44
500 to under 1,000 32 44 + 32 = 76 .32 .44 + .32 = .76
1,000 to under 1,500 9 76 + 9 = 85 .09 .76 + .09 = .85
1,500 to under 2,000 6 85 + 6 = 91 .06 .85 + .06 = .91
2,000 to under 2,500 6 91 + 6 = 97 .06 .91 + .06 = .97
2,500 to under 5,500 3 97 + 3 = 100 .03 .97 + .03 = 1.00
Producing Frequency Table
The Frequency Histogram
Absolute or relative class frequencies are
represented by bars (vertical rectangular areas)
The Frequency Polygon
A graphical device for understanding the shapes of
distributions - A good choice for displaying
cumulative frequency distributions
Bar & Column Charts
A chart with rectangular bars with lengths
proportional to the values that they represent.
The bars can be plotted vertically or
horizontally.
Histograms vs. Bar Graphs
Line Graph
A graph that shows information
that is connected in some way
(such as change over time)
Pie Chart
A special chart that uses "pie slices"
to show relative sizes of data
Stem-&-Leaf Diagram
A special table where each data value is split
into a "leaf" (usually the last digit) and a "stem"
(the other digits)
Box-&-Whisker Diagram (Boxplot)
A way of summarizing a set of data measured on
an interval scale - used to show the shape of the
distribution, its central value, and variability
The Presentation of Data
Summary Measures
Measures of
Central
Tendency
(Location)
Mean
Median M
Mode Mo
Quartiles (Percentiles)
Measures of
Dispersion
(Variability)
Range
Variance
2
Standard Deviation
Measures of
Shape
Skewness Sk
Kurtosis K
Proportion

Continuous
Ordinal
Nominal
Continuous
Ordinal
Continuous
Continuous
Standard Normal Distribution
Statistics Formulas
Descriptive Statistics
Statistic Formula
Mean
=

Median (50% Quartile)
= +1
2

Middle value
Mode Most frequent value
Range Maximum - Minimum
Variance

2
=
( )
2
1

Standard Deviation
=
2

Skewness =

Kurtosis =

4

/
4

Order
Data
Cut into
4 equal
parts
Cuts = Quartiles
Quartiles
Skewness
Kurtosis
Minitab
Application
Inferential Statistics
Inferential Analysis
Hypothesis
Testing
Relationship
among Variables
Hypothesis Testing
(Significance Testing)
A systematic approach to assessing
tentative beliefs about reality.
It involves confronting those beliefs
with evidence and deciding, in
light of this evidence, whether the
beliefs can be maintained as
reasonable or must be discarded as
untenable.
Hypothesis Testing Steps
State the
Hypothesis
Select a test
statistic
Derive a
decision rule
Take a sample,
compute the test
statistic, & confront
it with the decision
rule
H
0
vs. H
a
z or t

Level of
Significance

Significance Value
(p-value)

Making a Decision
Types of Error
Test of Normality
Relationship among
Variables
Relationship between two
variables can be checked by
drawing scatterplots or running
statistical tests.
Scatterplots
Minitab
Application
Correlation
Perfect
Weak
Minitab
Application
Testing Relationship among
Variables
Variables Test
Both Variables are Nominal Chi-square
Independent Variable is Nominal &
Dependent Variable is Interval or Ratio
T-Test (Independent Variable has only two
categories)
ANOVA (Independent Variable has more
than two categories)
Both Variables are Interval or Ratio Correlation or Regression
Chi-Square X
2
Test
Testing the Alleged Independence of two
Qualitative Variables
Contingency Table
A table that classifies data
according to two or more
categories, associated with each
of two qualitative variables that
may or may not be statistically
independent
It shows all possible
combinations of categories, or
contingencies, which counts for
its name.
T-Test
How to test for differences between
means from two separate groups of
subjects.
ANOVA
Analysis of Variance
Used to determine whether there
are any significant differences
between the means of three or
more independent (unrelated)
groups
Regression
Simple Regression Analysis
A statistical technique that
establishes an equation that allows
the unknown value of one variable
to be estimated from the known
value of one other variable
Statistical Quality Control
The general category of statistical tools used to evaluate
organizational quality
Statistical Quality
Control (SQC)
Descriptive Statistics
Statistical Process Control
(SPC)
Acceptance Sampling
Descriptive Statistics
Statistics used to describe quality
characteristics and relationships
Statistical Process
Control (SPC)
A statistical tool that involves
inspecting a random sample of the
output from a process and
deciding whether the process is
producing products with
characteristics that fall within a
predetermined range
Acceptance Sampling
The process of randomly inspecting
a sample of goods and deciding
whether to accept the entire lot
based on the results
All three of these statistical quality control categories are helpful in measuring and evaluating
the quality of products or services. However, statistical process control (SPC) tools are used most
frequently because they identify quality problems during the production process.
Process Capability
The ability of a production process to
meet or exceed preset specications
Why SPC is the Most
Important Tool of the SQC?
Measure the value of a quality characteristic
Help to identify a change or variation in
some quality characteristic of the product
or process
Some Information about SPC
SPC can be applied to any process.
There is inherent variation in any process which can be
measured and controlled.
SPC doesnt eliminate variation, but it does allow the user to
track special cause variation.
SPC is a statistical method of separating variation resulting
from special causes from natural variation and to establish and
maintain consistency in the process, enabling process
improvement. (Goetsch & Davis, 2003. p. 631)
Sources of Variation
Common Causes of
Variation
Assignable Causes of
Variation
Based on random causes
that cannot be
identified, unavoidable
& due to slight
differences in processing
can be precisely
identied & eliminated
Descriptive Statistics
Describing certain
characteristics of a product &
a process
Measures of Central Tendency
(mean)
Measures of Variability
(standard deviation & range)
Measures of the Distribution
of Data
Statistical Process Control
Methods 7 Basic Quality Tools
Control Chart Check Sheet Pareto Chart
Flow Chart
Cause-&-Effect
Diagram
Histogram
Scatter Diagram
1. Control Chart
A graph that shows whether a sample
of data falls within the common or
normal range of variation
A control chart has upper and lower
control limits that separate common
from assignable causes of variation.
A process is out of control when a plot
of data reveals that one or more
samples fall outside the control limits.
Types of Control Chart
Characteristics measured by
Control Chart
Variables
A product characteristic that can be
measured and has a continuum of values
(e.g.,height, weight, or volume).
& R charts
Attributes
A product characteristic that
has a discrete value and can be
counted
P & C Charts
Control Charts for Variables
Mean Control Chart
( Chart)
Used to monitor changes in the
mean of a process

To construct a mean chart:
take multiple samples and
compute their means
construct the upper and lower
control limits of the chart
UCL = +

LCL = -

= /
Range (R) Charts
Used to monitor changes in the
dispersion or variability of process

To construct a range chart:
take multiple samples and
compute their average range
construct the upper and lower
control limits of the chart
CL =

UCL =
4

LCL =
3

Minitab
Application
Control Charts for Attributes
P-Charts
Used to monitor the proportion of
defects in a sample

Construction:
The center line is the average
proportion defective in the
population, .
construct the upper and lower
control limits of the chart
UCL = +

LCL = -

=
(1 )

C-Charts
Used to monitor the number of
defects per unit

Construction:
The center line is the average
number of defects, .
construct the upper and lower
control limits of the chart
UCL = +
LCL = -
Minitab
Application
Process Capability
The ability of the process
to produce within a
specification
C
p
compares the natural
variation of the process to
the specification width
C
pk
compares the natural
variation of the process to
the specification width
and target
Process Capability
C
pk
Values
Process Capability is the
range in which all output
can be produced the
inherent capability of the
process

= min

3
,

3

=


=

6

= 1 >>> process variability just meets specications

(process is minimally capable).

1 >>> process variability is outside the range of

specication (process variability is outside the range of
specication)

1 >>> process variability is tighter than specifications

and the process exceeds minimal capability

Minitab
Application
Acceptance Sampling
An inspection procedure used to
determine whether to accept or reject a
specific quantity of materials
Acceptance Sampling
Sampling Plans
Producers Risk &
Consumers Risk
Managing Levels of
Risk
Sampling Plan
A plan for acceptance sampling that precisely species the
parameters of the sampling process and the
acceptance/rejection criteria
No 100% Inspection
The most widely used sampling plans are given by Military
Standard (MIL-STD-105E)
Determines the quality level of an incoming shipment or at
the end of production
Judges whether quality level is within the level that has
been predetermined
Single-Sampling Plan
A decision to accept or reject a
lot based on the results of one
random sample from the lot.
Double-Sampling Plan
A plan in which management
specifies two sample sizes and two
acceptance numbers; if the quality
of the lot is very good or very bad,
the consumer can make a decision
to accept or reject the lot on the
basis of the first sample, which is
smaller than in the single-sampling
plan.
Sequential-Sampling Plan
A plan in which the consumer randomly
selects items from the lot and inspects
them one by one.
Sampling by Attribute
Sampling by Variable
Types of Sampling Plans
Take a Random
Sample of size n from
the Lot of size N
Inspect all items in the
Sample
Defectives found = d
d c ? Accept Lot
Reject Lot
Do 100% Inspection Return Lot
The Single Sampling Procedure
Yes
No
Acceptance Sampling Risks
The Lot is actually Good The Lot is actually Bad
The Lot is Accepted Correct Decision
Confidence = 1
Incorrect Decision
Risk (Consumers Risk)
The Lot is Rejected Incorrect Decision
Risk (Producers Risk)
Correct Decision
Power = 1 -
OC Curve
The Operating Characteristics Curve
A graph that describes how
well a sampling plan
discriminates between good
and bad lots
Quality & Risk Decisions
Acceptable Quality Level (AQL): The small percentage of
defects that consumers are willing to accept.
Producers Risk (): The chance that a lot containing an
acceptable quality level will be rejected.
Lot Tolerance Proportion Defective (LTPD): The upper
limit of the percentage of defective items consumers are
willing to tolerate.
Consumers Risk (): The chance of accepting a lot that
contains a greater number of defects than the LTPD limit.
Average Outgoing Quality
(AOQ)
The expressed proportion of defects that the
plan will allow to pass
=

Rectified Inspection: The assumption that all
defective items in the lot will be replaced
with good items if the lot is rejected and that
any defective items in the sample will be
replaced if the lot is accepted.
Average outgoing quality limit (AOQL): The
maximum value of the average outgoing
quality over all possible values of the
proportion defective.
Create a Sampling Plan
Compare a Sampling Plan
2. Check Sheet
A simple document that is used for collecting data in real-
time and at the location where the data is generated.
3. Pareto Chart
A bar chart that is used to analyze the frequency of
problems or causes in a process
4. Flow Chart
Used for analyzing a sequence
of events in a process
Can be used to understand a
complex process in order to
find the relationships and
dependencies between events
MS Visio Software
5. Cause-&-Effect Diagram
Fishbone Diagram: help organize ideas & identify relationships,
encourages brainstorming for ideas
6. Histogram
A graphical representation of the distribution of data
7. Scatterplot
A graph of plotted points that show the relationship
between two sets of data


Thank You!
Presenter: Marwa Abo Amra
statistician.marwa@gmail.com