You should be able to:

LO 9.1 Explain the need for quality control

LO 9.2 Apply control charts and interpret them
LO 9.3 Assess process capability

2
 Quality control
 A process that evaluates output and takes corrective action when output
doesn’t meet standards
 Acceptable results – no further action
 Unacceptable results – correction action
 Inspection alone is not sufficient
 Most organizations rely upon some inspection and a great deal of process control

3
 Inspection
 An appraisal activity that compares goods or services to a standard
 Inspection issues:
 How much to inspect and how often
 At what points in the process to inspect
 Whether to inspect in a centralized or on-site location
 Whether to inspect attributes or variables

4
5
 Typical inspection points:
 Before production
 Raw materials and purchased parts
 During production
 Before a costly operation
 Before an irreversible process
 Before a covering process
 Finished products
 Before sales

6
 Effects on cost and level of disruption are a major issue in selecting
centralized vs. on-site inspection
 Off-Site
 Specialized tests that may best be completed in a lab
 More specialized testing equipment
 More favorable testing environment
 On-Site
 Quicker decisions are rendered
 Avoid introduction of extraneous factors
 Quality at the source

7
 Quality control seeks quality of conformance
 A product or service conforms to specifications
“Keeping the patient (process) healthy by regular checkups (process control)
and preventive medicine (problem solving) rather than waiting until a heart
attack (defect) strikes.”
 Statistical evaluation of the output of a process
 Purpose: Understanding Variation
 Helps us to decide if a process is “in control” or if corrective action is needed

 SQC (Statistical Quality Control)

 Control Chart

8
 Two basic questions concerning variability:
1. Issue of process control
 Are the variations random?
 If nonrandom variation is present, the process is said to be unstable.

2. Issue of process capability

 Given a stable process, is the inherent variability of the process within a
range that conforms to performance criteria?

9
 Variation
 Random (common cause) variation:
 Natural variation in the output of a process, created by countless minor
factors
 ‘If everything goes right’

 Assignable (special cause) variation:

 A variation whose cause can be identified
 A nonrandom variation
 ‘If something goes wrong’

10
 Sampling and corrective action are only a part of the control process
 Steps required for effective control:
 Define: What is to be controlled?
 Measure: How will measurement be accomplished?
 Compare: There must be a standard of comparison
 Evaluate: Establish a definition of out of control
 Correct: Uncover the cause of nonrandom variability and fix it
 Monitor: Verify that the problem has been eliminated

11
 Control chart
 A statistically-based tool for monitoring a process
 A time-ordered plot of representative sample statistics
 distinguish between random and nonrandom variation
 statistically in control vs out-of-control
 Control limits

Abnormal
variation
CTQ characteristic

Upper Control Limit (UCL)

Normal
variation Target value

Lower Control Limit (LCL)

Abnormal
variation Time 12
 No points are outside control limits.
 The number of points above and below the center line is about the same.
 The points seem to fall randomly above and below the center line.
 Most points are near the center line, and only a few are close to the control
limits.

13
 Process in statistical control:
 Random variation around target
 All points within the control limits

Corrective action needed (special cause):

Outliers Trend Shift

Isolated points
Long-term trends Shifts away from
outside control
up or down the target
limits

14
 Xbar Chart of Pepperoni
1
Mistake 2: ignore
38
Mistake 1: assume this is a these special causes of
special cause of variation & 1
variation
36
take action
Sample Mean

34 UCL=33.80

32 _
_
X=31.26

30

LCL=28.72

2 4 6 8 10 12 14 16 18 20
Sample

15
 Type I error
 Concluding a process is not in control when it actually is.
 The probability of rejecting the null hypothesis when the null hypothesis
is true
 Manufacturer’s risk

 Type II error
 Concluding a process is in control when it is not.
 The probability of failing to reject the null hypothesis when the null
hypothesis is false
 Consumer’s risk

16
 Type of data
Quantitative Data Qualitative Data

Variables Attributes
Charts Charts

R X-Bar p
Chart Chart Chart

17
 Variables generate data that are measured

 Mean control charts (x-bar charts)

 Used to monitor the central tendency of a process

 a plot of means of the samples

 Range control charts (R charts)

 Used to monitor the process dispersion

 a plot of the average of the range within each sample

18
 UCLR = D4R and LCLR = D3R

R i
R = Average of sample ranges
𝑅𝑖 = Range of sample 𝑖
R= i =1
𝑘 = number of samples
k
where
R = Average of sample ranges
where
Ri = Range of sample i
D3, D4 = constant that provide three standard deviation (three-
sigma) limits for the given sample size

19
 ഥ and LCL ҧ = 𝒙
ന + A2𝑹
 UCL ҧ = 𝒙 ഥ
ന - A2𝑹
𝒙 𝒙

x i 𝑥Ӗ = Average of sample means

x= i =1 𝑥𝑖 = mean of sample 𝑖
k 𝑘 = number of samples
where
x = Average of sample means
wherex i= mean of sample i
k =A2number
= constant
of tosamples
provide three-sigma limits for the sample mean

20
21
 Steps to Compute Control Charts:
1. Collect data
2. Compute the range.
3. Use Table to determine R-chart control limits.
4. Plot the sample ranges.
• If all are in control, proceed to step 5.
• Otherwise, find the assignable causes, correct them, and return to step 1.
5. Calculate 𝑥ҧ for each sample and determine the central line of the chart, 𝑥.Ӗ
6. Use Table to determine 𝑥ҧ control limits
7. Plot the sample means.
• If all are in control, the process is in statistical control. Continue to take samples and monitor the
process.
• If any are out of control, find the assignable causes, correct them, and return to step 1.

22
The management of Sogang Industries is concerned about the production of a special metal screw
used by several of the company’s largest customers. The diameter of the screw is critical to the
customers. Data from five samples appear in the accompanying table. The sample size is 4. Is the
process in statistical control?

Sample # 1 2 3 4 X-bar R
1 .5014 .5022 .5009 .5027 .5018 .0018
2 .5021 .5041 .5024 .5020 .5027 .0021
3 .5018 .5026 .5035 .5023 .5026 .0017
4 .5008 .5034 .5024 .5015 .5020 .0026
5 .5041 .5056 .5034 .5047 .5045 .0022
Average .5027 .0021
23
 Compute the range for each sample and the control limits:

UCLR = D4 R = 2.282(0.0021) = 0.00479

LCLR = D3 R = 0(0.0021) = 0

24
 Compute the mean for each sample and the control limits.
UCLx = X + A2 R = 0.5027 + 0.729(0.0021) = 0.5042

LCLx = X – A2 R = 0.5027 – 0.729(0.0021) = 0.5012

25
 The iPhone 12 is produced by a contract manufacturer.
 brightness of the display (lumens)
 specified a target of 25.5 lumens.
 Samples size: 5; 30 Samples
 Is the process in statistical control? What actions would you recommend?

26
 Trend down in R-chart
causes…

…apparent hugging of
center line in x-bar chart

27
 Open Tutorial.docx or Tutorial.xlsx
 Q2. Develop a R & x bar charts and plot the values. From the charts, what
comments can you make about the process?
 Share your answers.

28
 Attributes generate data that are counted.
 p-chart
 Control chart used to monitor the proportion of attributes in a process

 c-chart
 Control chart used to monitor the number of defects per unit

29
 p-chart
 Control chart used to monitor the proportion of attributes in a process

Total number of defectives

p=
Total number of observatio ns
p (1 − p )
n = the number of trials ˆ p =
x = the number of successes desired n
p = probability of getting a success in one trial UCL p = p + z (ˆ p )
q = 1 – p = the probability of getting a failure in one trial
LCL p = p − z (ˆ p )

30
 The iPhone XIV is produced by a contract manufacturer. Of critical importance for the display
screen is the brightness of the display measured by lumens. The brightness of the display screen
is based on specifications mandated by the design team. The design team has specified a target
of 5 lumens with a specification limit of +/- 1 lumen around the target. Quality control has found
a significant amount of variation in the lumens of the display screen.
 A lot acceptance sampling plan has been developed for display screens entering the assembly
process. Lots of 100 display screens are tested for specifications. The proportion of display
screens that do not meet the specification limits of 4-6 lumens are recorded. The last 10
observations are analyzed.
 Calculate the center line and control limits of the p-chart. Is the process in statistical control?
Justify. If the next lot had 7 defective display screens, what management actions would you
recommend? Plot the centerline (mean of the proportions). (Suppose z = 3)

31
 p=
 number nonconforming
n i

 Center line = 40/1000 = 0.04

 Control limits
p (1 − p )
p3
ni

= 0.04 +/- 3(0.0195959) = 0.04 +/- 0.058787754

 UCL = 0.098787754, LCL = 0.0

32
 Analyze the p-chart. The next lot had 7 defective screens. What management
actions would you recommend?

33
A large health care operation receives 650,000 phone calls per month on average. 95%
accuracy is the target with no more than 5% of the responses containing an error. The
number of errors based on samples of n = 200 calls have been recorded (See the word file).

a. Calculate the Center Line and Control Limits of the p chart. Show the formula in
general, numbers plugged in and then the final answer.

b. Suppose the next value is 11. Is this point in statistical control or not? What
management actions would you recommend?

34
 At what points in the process to use control charts

 Sample
 Sample size

 Sample frequency

 What type of control chart to use

 Variables

 Attributes

35
36
1) Is the VARIABILITY of the process in statistical control?
2) Is the estimate of sigma from the R chart valid for analyzing the CURRENT LEVEL of
the process?
3) Is the CURRENT LEVEL of the process in statistical control?
4) Are the control limits valid for analyzing the FUTURE LEVEL of the process?
If only common cause variation remains, can we live with the variability of the process
that remains? Can we live with the level of the process that remains? Should we squish
or slide or squish and slide? Continue on and analyze the following two questions:
5) Can we live with the VARIABILITY of the process that remains?
6) Can we live with the LEVEL of the process that remains?
7) Is the process capable of meeting customer specifications?

37
 Once a process has been determined to be stable, it is necessary to
determine if the process is capable of producing output that is within an
acceptable range
 Tolerances or specifications

 Range of acceptable values established by engineering design or customer requirements

 Upper Specification Limit (USL), (LSL)

 Process variability

 Natural or inherent variability in a process

 Process capability

 The ability of process to produce to customer requirements/design specification

38
 capable

Process distribution
Lower Upper
specification specification

20 25 30 Minutes

39
 NOT capable

Process distribution

Lower Upper
specification specification

20 25 30 Minutes

40
 Process Capability:

 the ability of a process to produce to customer requirements

 Two calculations are needed to draw a conclusion:

1. Process Capability Index (Cp)

2. Process Capability Index (Cpk)

41
 measures whether a process is potentially capable

 represents the range of values allowed by the design specifications

Cp = Upper Specification Limit (USL)– Lower Specification Limit (LSL)

6σ

 the tolerance width divided by six standard deviations

• Cp ≥ 1 : Capable

• Cp < 1 : NOT Capable

42
43
 measures whether or not a process is capable of meeting certain quality
standards

ന – Lower specification Upper specification – 𝒙

𝒙 ന
Cpk = Minimum of ,
3σ 3σ

where
σ = standard deviation of the process distribution
ന = mean of sample means
𝒙

44
Explain to upper management
 Cp = Garage / Car
 Can the Car Fit into the Garage?

45
 In manufacturing target for Cpk is 1.33

Cp < 1 Cp ≥ 1, Cpk ≥ 1.33 Cp ≥ 1.33, Cpk < 1

σ Cpk
1σ 0.33

2σ 0.67

3σ 1.00

4σ 1.33

5σ 1.67
LSL USL LSL USL USL
LSL
6σ 2.00

LSL: Lower Specification Limit

USL: Upper Specification Limit 46
A branch of Domino’s Pizza offers delivery service, where an average delivery time is 26.2
minutes and a standard deviation of 1.35 minutes. The company set its service time as 25
minutes ± 5 minutes. Is the process capable?

Average delivery time = 26.2 minutes

 = 1.35 minutes
Upper specification = 30 minutes
Lower specification= 20 minutes

Cpk = 0.94 < 1.33

47
Open Tutorial.docx
Q1. Design specifications require that a key dimension on a product measure 100±10 units.
A process being considered for producing this product has a standard deviation of 4 units.
a. What is the process capability index of this process?
b. Suppose the process average shifts to 92. Calculate the new process capability.
c. What can you say about the process after the shift? More or less defects?

Share your answers at

48
 The time to process a customer order is a major factor influencing customer satisfaction for a wide variety of
manufacturing and service companies. Customers expect an order to be processed anywhere from 1 day to 3
days.
ss Capability ofcapable
1) Is the process Order_Time(2.0)
of meeting specifications?
2) What happens to Cp as the process slides to the right?
Process
3) What happens to Cpk as the process slides Capability of Order_Time(2.0)
to the right?
USL
4) What is the maximum value of Cpk?
Within
LSL USL
Overall
P rocess D ata Within
LS L 1.00000 P otential (Within) C apability Overall
Target * Cp 1.50
USL 3.00000 P otential (Within) C apability
C PL 1.53
S ample M ean 2.01926 Cp 1.50
C PU 1.47
S ample N 50 C PL 1.53
C pk 1.47 C PU 1.47
S tDev (Within) 0.22176
C C pk 1.50 C pk 1.47
S tDev (O v erall) 0.20750
O v erall C apability C C pk 1.50

Pp 1.61 O v erall C apability

PPL 1.64 Pp 1.61 49
 Sogang Martin produces the K22 fighter jet at their plant. The airframe consists of a skeleton
covered with sheets of a metallic composite material held together by thousands of rivets.
Suppose the rivets have a width specification of 0.8 mm plus and minus 0.015 mm. Samples of
rivets are taken and the width measured. A series of four process capability studies are
conducted. What management actions would you recommend?

1. Cp = 1.37 2. Cp = 1.31 3. Cp = 0.86 4. Cp = 0.81

CPL = 1.34 CPL = -0.17 CPL = 0.84 CPL = 0.98
CPU = 1.39 CPU = 1.72 CPU = 0.88 CPU = -0.48
Cpk = Cpk = Cpk = Cpk =

50
 Simplify
 Standardize
 Mistake-proof
 Upgrade equipment
 Automate

51
 Conformance
Analysis

Investigate
Capability
for assignable
Analysis
cause

Eliminate
assignable
cause

52
 Control Limits
 From Voice of the Process
 How variable the process is
 How much variability is acceptable?
 Measured as +/- 3 (total 6)
 UCL & LCL
 Specification (Tolerance) Limits
 From Voice of Customer
 Design Specification
 How much variability is acceptable? (to the customer)
 USL & LSL

53
You should be able to:
LO 9.1 Explain the need for quality control
LO 9.2 Apply control charts and interpret them
LO 9.3 Assess process capability

54