Chapter 10

Quality Control

Phases of Quality Assurance

Inspection
before/after
production
Acceptance
sampling

The least
progressive

Corrective
action during
production
Process
control

Quality built
into the
process
Continuous
improvement

The most
progressive

Inspection: Appraisal of good/service quality

Cost

How Much (sample size) /How Often (hourly, daily)

Total Cost
Cost of
inspection
(appraisal and
Prevention cost)

Optimal
Amount of Inspection

Cost of
passing
defectives
(failure cost)

Inspection
Where/When
Raw materials
Finished products

Inputs

Acceptance
sampling

Transformation

Process
control

Outputs

Acceptance
sampling

Before a costly operation, PhD comp. exam before candidacy

Before an irreversible process, firing pottery
Before a covering process, painting, assembly

Centralized vs. On-Site, my friend checks quality at cruise lines

Examples of Inspection Points

Type of
business
Fast Food

Inspection
points
Cashier
Counter area
Eating area
Building
Kitchen
Hotel/motel Parking lot
Accounting
Building
Main desk
Supermarket Cashiers
Deliveries

Characteristics
Accuracy
Appearance, productivity
Cleanliness
Appearance
Health regulations
Safe, well lighted
Accuracy, timeliness
Appearance, safety
Waiting times
Accuracy, courtesy
Quality, quantity

Statistical Process Control (SPC)

SPC: Statistical evaluation
of the output of a process during production

The Control Process

Define
Measure
Compare to a standard
Evaluate
Take corrective action
Evaluate corrective action
6

Statistical Process Control

Shewharts classification of variability:
common cause vs. assignable cause
Variations and Control
Random variation: Natural variations in the
output of process, created by countless minor
factors, e.g. temperature, humidity variations.
Assignable variation: A variation whose source
can be identified. This source is generally a
major factor, e.g. tool failure.
7

Mean and Variance

Given a population of numbers, how to
compute the mean and the variance?
Population {x1 , x2 ,..., x N }
N

Mean

x
i 1

N
N

Variance 2

2
(
x

)
i
i 1

Standard deviation
8

Statistical Process Control

From a large population of goods or
services (random if possible) a sample is
drawn.
Example sample: Midterm grades of BA3352
students whose last name starts with letter R
{60, 64, 72, 86}, with letter S {54, 60}
Sample size= n
Sample average or sample mean= x
Sample range= R
Standard deviation of sample means=

x
where : Standard deviation of the population
n

Sampling Distribution
Sampling distribution is the distribution of sample means.
Sampling distribution
Variability of the average scores of
people with last name R and S
Process distribution
Variability of the scores
for the entire class

Mean

Grouping reduces the variability.

10

Normal Distribution

normdist(x,.,.,1)

normdist(x,.,.,0)
Probab

Mean

95.44%
99.74%

Excel statistical functions : normdist ( x, mean, st _ dev,0) normal pdf at x.

Excel statistical functions : normdist ( x, mean, st _ dev,1) normal cdf at x.

11

Cumulative Normal Density

1
prob

normdist(x,mean,st_dev,1)

x
norminv(prob,mean,st_dev)

Excel statistical functions :

Cumulative function (cdf) at x : normdist ( x, mean, st _ dev,1)
Inverse function of cdf at " prob": norminv( prob , mean, st _ dev)

12

Normal Probabilities: Example

If temperature inside a firing oven has a
normal distribution with mean 200 oC and
standard deviation of 40 oC, what is the
probability that
The temperature is lower than 220 oC
=normdist(220,200,40,1)

The temperature is between 190 oC and 220oC

=normdist(220,200,40,1)-normdist(190,200,40,1)

13

Control Limits
Process is in control if sample mean is between control limits.
These limits have nothing to do with product specifications!
Sampling
distribution
Process
distribution

Mean
LCL
Lower
control
limit

UCL
Upper
control
limit

14

Setting Control Limits:

Hypothesis Testing Framework
Null hypothesis: Process is in control
Alternative hypothesis: Process is out of control
Alpha=P(Type I error)=P(reject the null when it is true)=
P(out of control when in control)
Beta=P(Type II error)=P(accept the null when it is false)
P(in control when out of control)

If LCL decreases and UCL increases what happens to

Alpha ?
Beta?

Not possible to target alpha and beta simultaneously,

control charts target a desired level of Alpha.
15

Type I Error=Alpha

/2

/2

Mean
Probability
of Type I error

LCL

UCL

LCL norminv(/2, mean, st_dev)

UCL norminv(1 - /2, mean, st_dev)
16

Control Chart
Abnormal variation
due to assignable sources

Out of
control

UCL
Mean

Normal variation
due to chance

LCL

Abnormal variation
due to assignable sources

9 10 11 12 13 14 15

Sample number

17

Observations from Sample Distribution

UCL

LCL
1

Sample number

18

Control Charts
Control charts for variables (measurable
quantities), e.g. length, temperature
Mean control charts
To check mean

Range control charts

To check variability

Control charts for attributes, e.g. fit, defective

p-charts
To check proportion of defectives (occurrences)

c-charts
To check the number of defectives (occurrences)

19

Mean control chart

Grand mean x average of x
UCL x z x grand mean plus a multiple of standard deviation
LCL x z x grand mean minus a multiple of standard deviation
UCL x norminv(1- /2, x, x ) x
z

Most often z is set to 2 or 3.

x
x
If the standard deviation of the sample means is not known,
use the average of sample ranges to get the limits:
R average of sample ranges R
UCL x A2 R grand mean plus a multiple of the average of sample ranges
LCL x A2 R grand mean minus a multiple of the average of sample ranges

Multiplier A_2 depends on n and is available in Table 10-2.

20

Range Control Chart

UCL D4 R A multiple of the average of sample ranges
LCL D3 R A multiple of the average of sample ranges

Multipliers D_4 and D_3 depend on n and are available in Table 10-2.

EX: In the last five years, the range of GMAT scores of incoming PhD class is
88, 64, 102, 70, 74. If each class has 6 students, what are UCL and LCL for
GMAT ranges?
R (88 64 102 70 74) / 5 79.6. For n 6, D 4 2, D 3 0.
UCL D4 R 2 * 79.6 159.2 LCL D3 R 0 * 79.6 0

Are the GMAT ranges in control?

21

Mean and Range Charts: Which?

(process mean is
shifting upward)
Sampling
Distribution
UCL

Detects shift

x-Chart
LCL
UCL

R-chart

Does not
detect shift

LCL

22

Mean and Range Charts: Which?

Sampling
Distribution

(process variability is increasing)

UCL

Does not
reveal increase

x-Chart
LC
L
UCL

R-chart
LC
L

Reveals increase

23

Use of p-Charts
p=proportion defective, assumed to be known
When observations can be placed into two categories.
Good or bad
Pass or fail
Operate or dont operate
Go or no-go gauge
UCL p z p
where p

LCL p z p
p (1 p )
, z as before
n

24

Use of c-Charts
c=number of occurrences per unit
Use only when the number of occurrences per unit can be counted.

Scratches, chips, dents, or errors per item

Cracks or faults per unit of distance
Breaks or Tears per unit of area
Bacteria or pollutants per unit of volume
Calls, complaints, failures per unit of time

UCL c z c LCL c z c
if c is not known, use the average c
25

C-chart Example
While the nuclear submarine Kursk was being raised in the
Barents sea (between Svalbard, No and Novaya Zemlya, Ru),
which took 15 hours, engineers took a reading of number of
Geiger counts per hour to detect any increase in radiation
levels. Should they have stopped before 5th or 10th hour given 3sigma control and the readings data: 42, 48, 50, 45, 52, 66, 64,
84, 92, 76.
At the 5th hour, average number of counts=47.4, stdev of counts=6.88,
UCL=47.4+3*6.88=68.05, LCL=47.4-3*6.88=26.75. Do not stop.
At the 10th hour, average number of counts=61.9, stdev of counts=7.87,
UCL=61.9+3*7.87=85.51, LCL=61.9-3*7.87=38.29. Stop, 9 th reading is
out of control.

26

Up and Down Run Charts

If all readings are in control, is the process
really in control?
There could be trends in readings even
when they are in control.
Counting Up/Down Runs

(r=8 runs)

27

Up and Down Run Charts

UCL E (r ) z r Expected runs plus a multiple of stdev of runs
LCL E (r ) z r Expected runs minus a multiple of stdev of runs
2K - 1
16 K 29
and r
3
90
K Number of samples
E(r)

EX: What are 3-sigma UCL and LCL for the number of runs in 50 samples?

2K - 1
16 K 29
K 50, E(r)
33 and r
2.92
3
90
UCL E ( r ) z r 33 3 * 2.92
LCL E ( r ) z r 33 - 3 * 2.92

28

Process Capability
Tolerances/Specifications
Requirements of the design or customers

Process variability
Natural variability in a process
Variance of the measurements coming from the process

Process capability
Process variability relative to specification
Capability=Process specifications / Process variability

29

Process Capability:
Specification limits are not control chart limits
Lower
Specification

Upper
Specification

Process variability matches

specifications
Lower
Specification

Sampling
Distribution
is used
Upper
Specification

Process variability well within

Lower
Upper
specifications
Specification Specification

Process variability exceeds

specifications

30

Process Capability Ratio

When the process is centered, process capability ratio
Cp =

Upper specification lower specification

6

A capable process has large Cp.

Example: The standard deviation, of sample averages of the
midterm 1scores obtained by students whose last names start
with R, has been 7. The SOM management requires the
scores not to differ by more than 50% in an exam. That is
the highest score can be at most 50 points above the lowest
score. Suppose that the scores are centered, what is the
process capability ratio?
Answer: 50/42

31

Process Capability Ratio

When the process is not centered, process capability ratio
Cpk= Min{Process mean - lower spec , Upper spec - Process mean}
3
When the process is not centered, the closest spec to mean determines
the capability of the process because that spec is likely to be
more of a limiting factor than the other.
Example: Suppose that the process is not centered in the previous example
and the SOM wants all the scores to fall within 50% and 100%. What is the
Capability ratio if the average score was 70?
Answer: From the lower limit, we have (70-50)/21
From the upper limit, we have (100-70)/21
Then the ratio is 20/21

32

3 Sigma and 6 Sigma Quality

Upper
specification

Lower
specification

Process
mean
+/- 3 Sigma
+/- 6 Sigma

33

Chapter 10 Supplement

Acceptance
Sampling
34

Acceptance Sampling
Acceptance sampling: Is a lot of N products good
if a random sample of n (n<N) products contain
only c defects?
For example take a sample of 10(=n) milk bottles out
of every 100(=N). If 1(=c) or more bottles do not fit
specifications, reject the entire lot of 100 bottles.

c is determined to balance type I and type II

errors.
This is a smart compromise between 100%
inspection and no inspection.
Generally used for input/output inspection.
35

Why not to emphasize

Acceptance Sampling (AS)
AS plans have no clearly stated economic objective.
They target some levels of type I and II errors.
AS incorporate an attitude of punishment by rejecting
entire lots after examining small samples. This feeds
the mistrust between supplier and the customer.
AS does not attempt to find the root cause of
defectives. It merely detects defectives. Real problem
is actually finding the root cause. Some people say
that:
AS provides elegant solutions to balance type I and II
errors by making a type III error: solving the wrong
problem.

36