Chapter 10 Notes

Chapter 10 (Unit 8): Quality Control
Learning Objective:
Learning Objectives:
1. List and briefly explain the elements in the control process
2. Explain how control charts are used to monitor a process, and the concepts that
underlie their use
3. Use and interpret control charts
4. Perform run tests to check for nonrandomness in process output
5. Assess process capability
What is Quality Control?

1. A process that evaluates output relative to a standard and takes corrective action when
output doesnt meet standards
If results are acceptable no further action is required
Unacceptable results call for correction action
Phases of Quality Assurance:
Inspection: An appraisal activity that compares goods or services to a standard
Inspection issues:
1. How much to inspect and how often
2. At what points in the process to inspect
3. Whether to inspect in a centralized or on-site location
4. Whether to inspect variables or attributes
How Much to Inspect?
Typical Inspection Points:
Purchased parts and raw materials
Finished products
Before a costly operation
Before an irreversible process
Before a covering process
Effects on cost and level of disruption are a major issue in selecting centralized vs. onsite inspection
Centralized
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 source
Statistical Process Control (SPC)
Quality control seeks
Quality of Conformance
A product or service conforms to specifications
A tool used to help in this process - SPC
Statistical evaluation of the output of a process
Helps us to decide if a process is in control or if corrective action is needed
Process Variability
Two basic questions concerning variability:
Issue of process control
Issue of process capability
Are the variations random? If nonrandom variation is present, the

process is said to be unstable.
Given a stable process, is the inherent variability of the process within a

range that conforms to performance criteria?
Variation
Random(common cause) variation:
Natural variation in the output of a process, created by countless minor

factors
Assignable(special cause) variation:
A variation whose cause can be identified.
A nonrandom variation
Sampling and Sampling Distribution

o SPC involves periodically taking samples of process output and computing sample
statistics:
Sample means
The number of occurrences of some outcome
o Sample statistics are used to judge the randomness of process variation

o Sampling Distribution
A theoretical distribution that describes the random variability of sample

statistics
The normal distribution is commonly used for this purpose
o Central Limit Theorem
The distribution of sample averages tends to be normal regardless of the

shape of the process distribution
Control Process
o Sampling and corrective action are only a part of the control process
o 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 results: Verify that the problem has been eliminated
Control Charts: The voice of the Process

o Control Chart
A time ordered plot of representative sample statistics obtained from an

ongoing process (e.g. sample means), used to distinguish between random
and nonrandom variability
o Control limits
The dividing lines between random and nonrandom deviations from the
mean of the distribution
Upper and lower control limits define the range of acceptable variation
Errors
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.
Manufacturers 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.
Consumers Risk
Control Charts for Variables

Variables generate data that are measured
Mean control charts

Used to monitor the central tendency of a process.
x- bar charts
Range control charts
Used to monitor the process dispersion
R charts
Using Mean and Range Charts

o To determine initial control limits:
Obtain 20 to 25 samples
Compute appropriate sample statistics
Establish preliminary control limits
Determine if any points fall outside of the control limits

If you find no out-of-control signals, assume the process is in control
If you find an out-of-control signal, search for and correct the
assignable cause of variation
Resume the process and collect another set of observations on which to base
control limits
Plot the data on the control chart and check for out-of-control signals
Example of Using x-bar and R-charts:

The management of West Allis Industries is concerned about the production of a special metal
screw used by several of the companys largest customers. The diameter of the screw is critical
to the customers. Data from five samples (number of groups) appear in the accompanying table.
The sample size (group size) is 4. Is the process in statistical control?
SOLUTION
Step 1: For simplicity, we use only 5 samples. In practice, more than 20 samples would be
desirable. The data are shown in the following table.
Step 2: Compute the range for each sample by subtracting the lowest value from the highest
value. For example, in sample 1 the range is 0.5027 0.5009 = 0.0018 in. Similarly, the ranges
for samples 2, 3, 4, and 5 are 0.0021, 0.0017, 0.0026, and 0.0022 in., respectively. As shown in
the table, R = 0.0021.
Step 3: To construct the R-chart, select the appropriate constants from Table 5.1 for a sample
size of 4. The control limits are
.00479
Step 4: Plot the ranges on the R-chart, as shown in Figure 5.10. None of the sample ranges falls
outside the control limits so the process variability is in statistical control. If any of the sample
ranges fall outside of the limits, or an unusual pattern appears, we would search for the causes
of the excessive variability, correct them, and repeat step 1.
Step 5: Compute the mean for each sample. For example, the mean for sample 1 is
Similarly, the means of samples 2, 3, 4, and 5 are 0.5027, 0.5026, 0.5020, and 0.5045 in.,
respectively. As shown in the table, x-double Bar = 0.5027.
Control Charts for Attributes
Attributes generate data that are counted.
o p-Chart
Control chart used to monitor the proportion of defectives in a process
o c-Chart
Control chart used to monitor the number of defects per unit
Using a p-chart
o When observations can be placed into two categories.
Good or bad
Pass or fail
Operate or dont operate
o When the data consists of multiple samples of several observations each
Using a p-chart Example:

Hometown Bank is concerned about the number of wrong customer account numbers
recorded
Each week a random sample of 2,500 deposits is taken and the number of incorrect
account numbers is recorded
The results for the past 12 weeks are shown in the following table
Is the booking process out of statistical control?
Use three-sigma control limits, which will provide a Type I error of 0.26 percent.
Sample
Number
Wrong
Account
Numbers
Wrong
Account
Numbers
Sample
Number
15
24
12
19
10
10
17
19
11
15
12
3
Total
Solution:
147
Using a c-chart: Use only when the number of occurrences per unit of measure can be
counted; non-occurrences cannot be counted.
o Scratches, chips, dents, or errors per item
o Cracks or faults per unit of distance
o Breaks or Tears per unit of area
o Bacteria or pollutants per unit of volume
o Calls, complaints, failures per unit of time
Using a c-Chart Example:

The Woodland Paper Company produces paper for the newspaper industry. As a final
step in the process, the paper passes through a machine that measures various product
quality characteristics. When the paper production process is in control, it averages 20
defects per roll.
o Set up a control chart for the number of defects per roll. For this example, use
two-sigma control limits.
o Five rolls had the following number of defects: 16, 21, 17, 22, and 24,
respectively. The sixth roll, using pulp from a different supplier, had 5 defects. Is
the paper production process in control?
Managerial Considerations
At which points in the process to use control charts
What size samples to take
What type of control chart to use
o Variables
o Attributes
Run Tests
Even if a process appears to be in control, the data may still not reflect a random
process
Analysts often supplement control charts with a run test
o Run test
A test for patterns in a sequence
o Run
Sequence of observations with a certain characteristic
Process Capability
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 the acceptable range
o Tolerances or specifications
Range of acceptable values established by customer requirements or

engineering design
o Process variability
Natural or inherent variability in a process
o Process capability
The inherent variability of process output (process width) relative to the

variation allowed by the design specification (specification width)
Cp: Process Capability Ratio
UTL-LTL/6
Where:
UTL = upper tolerance limit
LTL = lower tolerance limit
Cpk : Process Capability Index
Used when a process is not centered at its target, or nominal, value
Cpk = min{Cpu,Cpl}
= min{UTL-x/3, x-LTL/3
Improving Process Capability
Simplify
Standardize
Mistake-proof
Upgrade equipment
Automate
Operations Strategy: Quality is a primary consideration for nearly all customers

o Achieving and maintaining quality standards is of strategic importance to all
business organizations
Product and service design
Increase capability in order to move from extensive use of control charts
and inspection to achieve desired quality outcomes

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Chapter 10 (Unit 8): Quality Control

What is Quality Control?

If results are acceptable no further action is required

Unacceptable results call for correction action

Phases of Quality Assurance:

Inspection: An appraisal activity that compares goods or services to a standard

How Much to Inspect?

Typical Inspection Points:

Purchased parts and raw materials

Before a costly operation

Before an irreversible process

Before a covering process

Specialized tests that may best be completed in a lab

Quicker decisions are rendered

Avoid introduction of extraneous factors

Statistical Process Control (SPC)

Quality control seeks

A product or service conforms to specifications

A tool used to help in this process - SPC

Statistical evaluation of the output of a process

Helps us to decide if a process is in control or if corrective action is needed

Two basic questions concerning variability:

Issue of process control

Issue of process capability

Are the variations random? If nonrandom variation is present, the

Given a stable process, is the inherent variability of the process within a

Random(common cause) variation:

Natural variation in the output of a process, created by countless minor

Assignable(special cause) variation:

A variation whose cause can be identified.

Sampling and Sampling Distribution

The number of occurrences of some outcome

o Sample statistics are used to judge the randomness of process variation

A theoretical distribution that describes the random variability of sample

The normal distribution is commonly used for this purpose

o Central Limit Theorem

The distribution of sample averages tends to be normal regardless of the

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 results: Verify that the problem has been eliminated

Control Charts: The voice of the Process

A time ordered plot of representative sample statistics obtained from an

Control Charts for Variables

Mean control charts

Using Mean and Range Charts

Compute appropriate sample statistics

Establish preliminary control limits

Determine if any points fall outside of the control limits

Example of Using x-bar and R-charts:

Control chart used to monitor the proportion of defectives in a process

Control chart used to monitor the number of defects per unit

Operate or dont operate

o When the data consists of multiple samples of several observations each

Using a p-chart Example:

Using a c-Chart Example:

A test for patterns in a sequence