Addis Ababa University

Addis Ababa Institute of Technology

School of Mechanical and Industrial Engineering
Post Graduate program in Industrial Engineering

Project title: - Application of Statistical Quality Control

Technique in case of Moha Soft Drinks Share Company.
Submitted to: -
Instructor: Dr.
Prepared by: ID
Getahun Mekuria
GSR/5091/11
Zetseat Berhanu
GSR/4740/11
Meyad Ashebir
GSR/5407/11
Habtamu Wakshum
GSR/9369/10
Summation date: -
February 1, 2019
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 Chapter One
Introduction
1.1 Background of the study
The theoretical aspect of Statistical Process Control is an analytical decision making tool which
allows you to see when a process is working correctly and when it is not. Variation is present in
any process, deciding when the variation is natural and when it needs correction is the key to
quality control. Statistical quality control is the application of statistical and analytical tools to
monitor process outputs (dependent variables). And Statistical process control is the application
tools to control process inputs (independent variables).
We have all had the experience of purchasing a product only to discover that it is defective in
some ways or does not function the way it was designed to; drinks in cans or bottles not properly
filled up as expected. As consumers, we expect the products we purchase should be able to
satisfy our needs. However, producers of products know that it is not always possible to inspect
every product and every aspect of the production process at all times. The challenge is to design
ways to maximize the ability to monitor the quality of products being produced and eliminate
defects. One way to ensure a quality product is to built-in quality into the production process
(Akinnola, 2009).
Controlling and improving quality has become an important business strategy for many
organizations, manufacturers, distributors, transportation companies, financial services
organizations, health care providers, private and government agencies. Quality has become one
of the most important consumer decision factors in the selection among competing products and
services. The phenomenon is widespread, regardless of whether the consumer is an individual, an
industrial organization, a retail store, a bank or financial institution, or a military defense
program, manufacturer, designer to mention but a few. Consequently, understanding and
improving quality are key factors leading to business success, growth, and enhanced
competitiveness. There is a substantial return on investment from improved quality and from
successfully employing quality as an integral part of overall business strategy. Quality is a
competitive advantage and therefore any business that can delight customers by improving and
controlling quality can dominate its competitors (Douglas, 2009). Competition is one of the most
important factors in running a business in the world economy today.

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For almost every product or service ever designed, there is more than one organization trying to
make a sale. Price is, of course, one of the major issues in whether a sale is made or lost. If the
cost of producing goods or services results in high prices, a firm may not be competitive. But
another factor that a customer considers before buying a product is quality. In fact, a reputation
for producing quality products is often a major marketing issue (Akinnola, 2009).
(Douglas, 2009) says, Quality is not just of concern in manufactured products, it is important in
banking, hospital care, education, air travel, food industries, auto repair, postal delivery services
and a host of other firms in the service industry. Quality management is the commonly used term
for stressing quality within an organization. Quality management uses a systems perspective
because it is not a program for one department, but a responsibility of everyone in the
organization. To keep quality at the desirable levels, all firms employ the concept of quality
control. Quality control is important not just in the production or transformation process, but
earlier at the design stage and later at the service stage as well. One of the major roles of the
operations manager is to make sure his or her firm can deliver a quality product to the right place
at the right time and with a right price.
The key process monitoring and investigating tools include:
 Histograms,
 Check sheets,
 Pareto charts,
 Cause and effect diagrams,
 Scatter diagrams, and
 Control charts.
 Flowchart.

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 Literature Review

The use of statistical concept in the field of quality emerged in the United States was the
beginning of the nineteenth century. But its democratic use begins only in the 1930s.

Marilyn and Robert (2007), says the foundation for Statistical Process Control technique as
quality control tool was laid by Dr. Walter Shewart who worked at the Bell Telephone
Laboratories in the 1920s when conducting research on methods to improve quality and lower
costs. Accordingly, he developed the concept of control with regard to variation, and came up
with Statistical Process Control Charts which provide a simple way to determine if the process is
in control or not.

Accordingly, Dr. W. Edwards Deming built upon Shewart work and took the concepts to Japan
following World War II (WWII). There, Japanese industry adopted the concepts whole-
heartedly. The resulting high quality of Japanese products is world-renowned. Dr. Deming is
famous throughout Japan as a "God of quality". Today, SPC is used in manufacturing or a
production facility around the world in order to improve the quality service delivery to the
customers (Douglass, 2009).

Raza and Payam (2009), says Statistical Process Control is the use of valid analytical statistical
methods to identify the existence of special causes of variation in a process. Statistical process
control (SPC) involves using statistical techniques to measure and analyze the variation in
processes. Most often used for manufacturing production processes, the intent of SPC is to
monitor product quality and maintain processes to fixed targets. Statistical quality control refers
to using statistical techniques for measuring and improving the quality of processes and includes
SPC in addition to other techniques, such as sampling plans, experimental design, variation
reduction, process capability analysis, and process improvement plans.

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The Importance of SPC helps companies to improve quality and productivity in all departments
by improving all the area where quality is of concerned. It also gives operators a tool to
determine when a statistically significant change has taken place in the process or when a
seemingly significant change is just due to chance causes. Hence, it provides operating personnel
a tool to identify when a special cause of variation has entered the process so that the special
cause can be eliminated (if the special cause has a negative impact on the process) or built into
the process (if the special cause has a positive impact on the process). SPC feedback system helps
the operating personnel to monitor the process from input stage to final stage in order to take
appropriate measure where needed.
Methodology
Introduction
This part presents the methodological approach including empirical and materials used in this
research work. The chapter further established all the necessary parameters such as the Pareto
chart, Cause and effect diagram, Mean, Range, construction of charts and Process Capabilities
index values (Cpk) needed in this work in order to achieve the stated objectives.
Items Used
The following items were used in the course of this research work
 Raw data from primary source (Moha soft drinks Share Company).
 Microsoft excels.
Data Collection
Due to the nature of this project work being an applied research work, the accuracy of the data
would go a long way to help reduce the error that might have occurred in the course of data
collection and hence, the accuracy of data will give confidentiality of the results. It is of this
view that the method of data collection for this research work be primary source i.e. directly
from the company. Data that we collected for this work has been attached as appendix.

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 Experimental Procedure
1. Method
SPC is a statistical procedure using control charts to check a production process to see if any part
of it is in some way not functioning properly, which could lead to poor quality. A Control chart
is a graphical method for displaying control results and evaluating whether a measurement
procedure is in-control or out-of-control. The control chart analyzes the quality characteristic that
has been measured or computed from a sample versus the sample number or time.
A soft drink bottling operation like Moha soft drinks Share Company is an example of a variable
measure, since the amount of liquid in the bottles is measured and can take on a number of
different values.

Before using a control chart we analyze the collected data in order to identify the root causes or
source of defects. Frequency of defects were also measured and recorded the tools used in this
phase were parto chart and cause and effect diagram. The amount of different defects found
varied with the variation in the number of inspected in the production process and also types of
defects found were varied with the production section.
Two of the most commonly used control charts for variables (X–bar chart and R-chart) monitor
both the central tendency of the data (the mean) and the variability of the data (either the
standard deviation or the range).

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Pareto Chart: - quality problems appear in the form of loss (defect items and their cost). It is
extremely important to clarify the distribution pattern of the loss. Most of the loss will be due to
a very few types of defects and their small number of causes. Thus if defects are identified we
can eliminate almost all the loss by concentrating on these particular causes. Leaving aside the
other trivial many defects for the time being by using the Pareto diagram we can solve this type
of problem efficiently.
Defects 1st 2nd 3rd 4th Total cumulati cumulati
week week week week occurren ve ve
ce percenta
ge
CO2 (High and 4 54 17 23 98 98 2%
Low)
Brix (sugar 78 65 14 9 166 264 5%
content)
Under fill and 827 908 856 987 3578 3842 77%
over fill

Water treatment 8 15 33 8 64 3906 78%

Broken bottles 168 187 174 163 692 4598 92%
Missing crowns 60 71 34 56 221 4819 97%
Empty bottles 55 21 68 19 163 4982 100%
Total 1200 1321 1196 1265 4982

Cause and effect diagram: - A Cause-and-Effect Diagram is a tool that helps to identify, sort,
and display possible causes of a specific problem or quality characteristic. Cause and Effect
Analysis gives you a useful way of doing this. This diagram-based technique, which combines
brainstorming with a type of mind map, pushes you to consider all possible causes of a problem,
rather than just the ones that are most obvious.

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Mean (x-Bar) Charts for Variables: - a mean control chart is often referred to as an x-bar
chart. It is used to monitor changes in the mean of a process. To construct a mean chart, first it is
needed to construct the center line of the chart. To do this multiple samples are to be taken and
their means computed. The center line of the chart is then computed as the mean of all ϰ sample
means, where ϰ is the number of samples:

To construct the upper and lower control limits of the chart, the following formulas are used:
Upper Control Limit (UCL) =


Lower Control Limit (LCL) =


Where: -
𝑋 Bar = the average of the sample mean
Z = standard normal variation (2 for 95.44% confidence, 3 for 99.74% confidence)
𝜎𝑋 = standard deviation of the distribution of sample means, computed as σ⁄ n
𝜎 = population (process) standard deviation n = sample size (number of observation per
sample)

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Range (R) Charts for variables: - Range (R) charts are another type of control chart for
variables. Whereas x-bar charts measure shift in the central tendency of the process, range charts
monitor the dispersion or variability of the process. The method for developing and using R-
charts is the same as that for x-bar charts. The center line of the control chart is the average
range, and the upper and lower control limits are computed as follows.

Where: -
Values for D4 and D3 are obtained from already established statistical tables.
Another way to construct the control limits is to use the sample range as an estimate of the variability
of the process. As earlier defined, the range is simply the difference between the largest and smallest
values in the sample. The spread of the range can tell the variability of the data. In this case control
limits would be constructed as follows:
Upper Control Limit (UCL) =


Lower Control Limit (LCL) =

𝑋- bar = average of the sample means

Where: -

R = average range of the samples

A2= factor obtained from standard tables.
A2 is a factor that includes three standard deviations of ranges and is dependent on the
sample size being considered.
(X-bar and R-bar charts) are used to monitor different variables. Both charts reveal different
problem. X-bar chart is used to monitor the changes in the mean of a process (central tendencies)
while R-bar chart is used to monitor the dispersion or variability of the process.

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 Data extracted for over & under filled Bottle
Similarly, the data below shows that of Bottles filler machines with similarity in samples number
(days) and unit (cl) with four observations.
Sub - Sample Size
X - bar Range
group 1 2 3 4
1 28.22 30.78 30.3 29.99 29.8225 2.56
2 28.9 30.72 30.78 28.92 29.83 1.88
3 30.9 30.6 28.6 28.72 29.705 2.3
4 30.38 28.9 30.78 30.73 30.1975 1.88
5 30.56 28.01 28.99 28.28 28.96 2.55
6 29.34 29.54 29.78 30.77 29.8575 1.43
7 30.56 29.27 30 30 29.9575 1.29
8 31.78 27.08 30.77 30 29.9075 4.7
9 29.88 30.45 29.77 28.67 29.6925 1.78
10 29.98 29.54 30.77 29.95 30.06 1.23
11 29.34 30.23 30.97 30.73 30.3175 1.63
12 30.11 29.34 30.55 30.77 30.1925 1.43
13 30.66 30.56 29.67 30.54 30.3575 0.99
14 30.77 28.66 29.88 29.19 29.625 2.11
15 29.34 30.97 28.72 30.73 29.94 2.25
16 29.78 28.67 29.99 28.89 29.3325 1.32
17 28.87 28.99 29.97 30.88 29.6775 2.01
18 30.7 30.81 29.08 29.34 29.9825 1.73
19 31.57 30.67 30.87 31.28 31.0975 1.79
20 29.9 28.98 30.8 30 29.92 1.82
21 28.34 29.9 28.89 29.34 29.1175 1.56
22 30.67 30.87 30.56 30 30.525 0.87
23 29.76 29.55 30.77 30.23 30.0775 1.22
24 29.9 28.98 30.87 28.67 29.605 2.2
25 29.8 30.87 29.32 29.29 29.82 1.58
26 30.56 29.65 29.78 30 29.9975 0.91
27 29.34 30.23 28.72 28.67 29.24 1.56
28 28.87 29.76 29.78 29.56 29.4925 0.91
29 28.99 30.56 29.34 29.87 29.69 1.57
30 28.87 29.19 29.34 29.99 29.3475 1.12
31 28.67 30.97 29.97 30.77 30.095 2.3
Average 29.819 1.75742
Calculation of control limits

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From the data taken, the control limits are calculated by caluclating average X – bar, range R –
bar, and standard deviation σ. Computation for control limits are as follows:
Average (X = bar ) = Σ X – bar /N = 29.819
Range (R – bar) = ΣR/N = 1.75742
Standard devation (σ) = R – bar /d2 = 0.853
For X – bar chart
Upper control limit = 31.1002

CL (Center line) = 29.819

Lower control limit = 28.5378

For R – chart

Upper control limit = 4.0105

CL (Center line) = 1.7575
Lower control limit = 0

Figure: X – bar chart

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Figure: R chart

Interpretation of control chart

After calculating control limits, the control chart for X – bar is down and it is found that all
points are within the control limits. Then R – bar chart is analyzed and it is found that point 8 is
above UCL thus the process is out of control. The control limits are therefore recalculated.
Revision of control limits
The points are going out of control limits in X – bar and R chart so it is re – evaluated. The
computations for control limits are as follows.
Sub - Sample Size
X - bar Range
group 1 2 3 4
1 28.22 30.78 30.3 29.99 29.8225 2.56
2 28.9 30.72 30.78 28.92 29.83 1.88
3 30.9 30.6 28.6 28.72 29.705 2.3
4 30.38 28.9 30.78 30.73 30.1975 1.88
5 30.56 28.01 28.99 28.28 28.96 2.55
6 29.34 29.54 29.78 30.77 29.8575 1.43
7 30.56 29.27 30 30 29.9575 1.29
9 29.88 30.45 29.77 28.67 29.6925 1.78
10 29.98 29.54 30.77 29.95 30.06 1.23
11 29.34 30.23 30.97 30.73 30.3175 1.63
12 30.11 29.34 30.55 30.77 30.1925 1.43

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 13 30.66 30.56 29.67 30.54 30.3575 0.99
14 30.77 28.66 29.88 29.19 29.625 2.11
15 29.34 30.97 28.72 30.73 29.94 2.25
16 29.78 28.67 29.99 28.89 29.3325 1.32
17 28.87 28.99 29.97 30.88 29.6775 2.01
18 30.7 30.81 29.08 29.34 29.9825 1.73
19 31.57 30.67 30.87 31.28 31.0975 0.2
20 29.9 28.98 30.8 30 29.92 1.82
21 28.34 29.9 28.89 29.34 29.1175 1.56
22 30.67 30.87 30.56 30 30.525 0.87
23 29.76 29.55 30.77 30.23 30.0775 1.22
24 29.9 28.98 30.87 28.67 29.605 2.2
25 29.8 30.87 29.32 29.29 29.82 1.58
26 30.56 29.65 29.78 30 29.9975 0.91
27 29.34 30.23 28.72 28.67 29.24 1.56
28 28.87 29.76 29.78 29.56 29.4925 0.91
29 28.99 30.56 29.34 29.87 29.69 1.57

30 28.87 29.19 29.34 29.99 29.3475 1.12

31 28.67 30.97 29.97 30.77 30.095 2.3
Average 29.8515 1.60633
Calculation of control limits
From the data taken, the control limits are calculated by caluclating average X – bar, range R –
bar, and standard deviation σ. Computation for control limits are as follows:
Average (X = bar ) = Σ X – bar /N = 29.8515
Range (R – bar) = ΣR/N = 1.6064
Standard devation (σ) = R – bar /d2 = 0.7798
For X – bar chart
Upper control limit = 31.0225

CL (Center line) = 29.8515

Lower control limit = 28.6805

For R – chart

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Upper control limit = 3.6657
CL (Center line) = 1.6064
Lower control limit = 0

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Interpretation of control chart
After calculating control limits, the control chart for R – bar is down and it is found that all
points are within the control limits. Then X – bar chart is analyzed and it is found that point 19 is
above UCL thus the process is out of control. The control limits are therefore recalculated.
Revision of control limits
The points are going out of control limits in X – bar and R chart so it is re – evaluated. The
computations for control limits are as follows.

Sub - Sample Size

X - bar Range
group 1 2 3 4
1 28.22 30.78 30.3 29.99 29.8225 2.56
2 28.9 30.72 30.78 28.92 29.83 1.88
3 30.9 30.6 28.6 28.72 29.705 2.3
4 30.38 28.9 30.78 30.73 30.1975 1.88
5 30.56 28.01 28.99 28.28 28.96 2.55
6 29.34 29.54 29.78 30.77 29.8575 1.43
7 30.56 29.27 30 30 29.9575 1.29
9 29.88 30.45 29.77 28.67 29.6925 1.78
10 29.98 29.54 30.77 29.95 30.06 1.23

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 11 29.34 30.23 30.97 30.73 30.3175 1.63
12 30.11 29.34 30.55 30.77 30.1925 1.43
13 30.66 30.56 29.67 30.54 30.3575 0.99
14 30.77 28.66 29.88 29.19 29.625 2.11
15 29.34 30.97 28.72 30.73 29.94 2.25
16 29.78 28.67 29.99 28.89 29.3325 1.32
17 28.87 28.99 29.97 30.88 29.6775 2.01
18 30.7 30.81 29.08 29.34 29.9825 1.73
20 29.9 28.98 30.8 30 29.92 1.82
21 28.34 29.9 28.89 29.34 29.1175 1.56
22 30.67 30.87 30.56 30 30.525 0.87
23 29.76 29.55 30.77 30.23 30.0775 1.22
24 29.9 28.98 30.87 28.67 29.605 2.2
25 29.8 30.87 29.32 29.29 29.82 1.58
26 30.56 29.65 29.78 30 29.9975 0.91
27 29.34 30.23 28.72 28.67 29.24 1.56
28 28.87 29.76 29.78 29.56 29.4925 0.91
29 28.99 30.56 29.34 29.87 29.69 1.57
30 28.87 29.19 29.34 29.99 29.3475 1.12
31 28.67 30.97 29.97 30.77 30.095 2.3
Average 29.8081 1.65483
Calculation of control limits
From the data taken, the control limits are calculated by caluclating average X – bar, range R –
bar, and standard deviation σ. Computation for control limits are as follows:
Average (X = bar ) = Σ X – bar /N = 29.8081
Range (R – bar) = ΣR/N = 1.6549
Standard devation (σ) = R – bar /d2 = 0.8033
For X – bar chart
Upper control limit = 31.0145

CL (Center line) = 29.8081

Lower control limit = 28.6017

For R – chart

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Upper control limit = 3.7764
CL (Center line) = 1.6549
Lower control limit = 0

Interpretation of control chart

After calculating control limits, the control chart for X – bar and R chart are down and it is found
that all points are within the control limits. Therefore the process is statistically under control or
stable.
Calculation of process capability indices
USL = 307.77.
LSL = 290.34.
Cp = USL – LSL/6 σ

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Cp = 307.77 – 290.34/ 6(0.8033) = 3.62
Therefore the Cp ≥ 1.66 the process is very satisfactory.

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