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Statistical process control notes

The document discusses Statistical Process Control (SPC) and its role in ensuring quality management by identifying and eliminating defects in production processes. It outlines the costs associated with quality, including prevention, appraisal, internal, and external failure costs, and emphasizes the importance of preventing defects to enhance profitability. Additionally, it introduces concepts like Six Sigma, control charts, and the Central Limit Theorem, which are essential for analyzing process variations and maintaining quality standards.
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0% found this document useful (0 votes)
28 views

Statistical process control notes

The document discusses Statistical Process Control (SPC) and its role in ensuring quality management by identifying and eliminating defects in production processes. It outlines the costs associated with quality, including prevention, appraisal, internal, and external failure costs, and emphasizes the importance of preventing defects to enhance profitability. Additionally, it introduces concepts like Six Sigma, control charts, and the Central Limit Theorem, which are essential for analyzing process variations and maintaining quality standards.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Statistical

Process Control

© 2014 Pearson Education, Inc. S6 - 1


Defining Quality

An operations manager’s objective


is to build a total quality
management system that identifies
and satisfies customer needs

© 2014 Pearson Education, Inc. S6 - 2


Defining Quality

The totality of features and


characteristics of a product or
service that bears on its ability to
satisfy stated or implied needs
American Society for Quality

© 2014 Pearson Education, Inc. S6 - 3


Two Ways Quality
Improves Profitability
Sales Gains via
• Improved response
• Flexible pricing
• Improved reputation

Improved Increased
Quality Profits
Reduced Costs via
• Increased productivity
• Lower rework and scrap costs
• Lower warranty costs

© 2014 Pearson Education, Inc. S6 - 4


Costs of Quality
► Prevention costs - reducing the potential for
defects
► Appraisal costs - evaluating products, parts,
and services
► Internal failure costs - producing defective parts
or service before delivery
► External failure costs - defects discovered after
delivery
Prevention Cost – costs associated with activities specifically designed
to prevent poor quality in products. Appraisal Cost – costs associated
with activities specifically designed to measure, inspect, evaluate or audit
products to assure conformance to quality requirements.

© 2014 Pearson Education, Inc. S6 - 5


Costs of Quality

Total Total Cost


Cost
External Failure

Internal Failure

Prevention

Appraisal
Quality Improvement

© 2014 Pearson Education, Inc. S6 - 6


It is much less costly to prevent a problem from ever happening than
it is to find and correct the problem after it has occurred. Prevention
costs support activities whose purpose is to reduce the number of
defects. Companies employ many techniques to prevent defects for
example statistical process control, quality engineering, training, and
a variety of tools from total quality management (TQM).

Any defective parts and products should be caught as early as possible


in the production process.

Internal failure costs result from identification of defects before


they are shipped to customers. These costs include scrap, rejected
products, reworking of defective units, and downtime caused by
quality problem. The more effective a company’s appraisal activities
the greater the chance of catching defects internally and the greater
the level of internal failure costs. This is the price that is paid to avoid
incurring external failure costs, which can be devastating.
When a defective product is delivered to customer, external failure
cost is the result. External failure costs include warranty, repairs
and replacements, product recalls, liability arising from legal actions
against a company, and lost sales arising from a reputation for poor
quality. Such costs can decimate profits.
© 2014 Pearson Education, Inc. S6 - 7
Six Sigma
► Two meanings
► Statistical definition of a process that is
99.9997% capable, 3.4 defects per
million opportunities (DPMO)
► A program designed to reduce defects,
lower costs, save time, and improve
customer satisfaction
► A comprehensive system for achieving
and sustaining business success

© 2014 Pearson Education, Inc. S6 - 8


Six Sigma
► Two meanings
Lower limits Upper limits
2,700 defects/million
► Statistical definition of a process that is
3.499.9997%
defects/million capable, 3.4 defects per
million opportunities (DPMO)
► A program designed to reduce defects,
lower costs, save time, and improve
customer satisfaction Mean
► A comprehensive system±3for achieving
and sustaining business ±6success

Figure 6.4

© 2014 Pearson Education, Inc. S6 - 9


A Pareto chart is just like a histogram except the bins are organised from
highest frequency to lowest. A Pareto chart also contains a line – this line shows
the totalPearson
© 2014 cumulative
Education,frequency.
Inc. S6 - 10
Source: https://seewhen.win/
Statistical Process Control

The objective of a process control


system is to provide a statistical
signal when assignable causes of
variation are present

© 2014 Pearson Education, Inc. S6 - 11


Statistical Process Control
(SPC)
► Variability is inherent
in every process
► Natural or common
causes
► Special or assignable
causes
► Provides a statistical signal when assignable
causes are present
► Detect and eliminate assignable causes of
variation
© 2014 Pearson Education, Inc. S6 - 12
Source: https://techqualitypedia.com/special-causes-of-variation/

© 2014 Pearson Education, Inc. S6 - 13


© 2014 Pearson Education, Inc. S6 - 14
Natural Variations
► Also called common causes
► Affect virtually all production processes
► Expected amount of variation
► Output measures follow a probability
distribution
► For any distribution there is a measure of
central tendency and dispersion
► If the distribution of outputs falls within
acceptable limits, the process is said to be “in
control”
© 2014 Pearson Education, Inc. S6 - 15
© 2014 Pearson Education, Inc. S6 - 16
Assignable Variations
► Also called special causes of variation
► Generally this is some change in the process
► Variations that can be traced to a specific
reason
► The objective is to discover when assignable
causes are present
► Eliminate the bad causes
► Incorporate the good causes

© 2014 Pearson Education, Inc. S6 - 17


Samples
To measure the process, we take samples and
analyze the sample statistics following these
steps
Each of these
(a) Samples of the product, represents one
say five boxes of cereal sample of five
taken off the filling machine
line, vary from each other boxes of cereal
in weight
# #
Frequency # # #

# # # #

# # # # # # #

# # # # # # # # # #

Weight
Figure S6.1
© 2014 Pearson Education, Inc. S6 - 18
Samples
To measure the process, we take samples and
analyze the sample statistics following these
steps
The solid line
(b) After enough samples represents the
are taken from a stable distribution
process, they form a
pattern called a
distribution
Frequency

Weight
Figure S6.1
© 2014 Pearson Education, Inc. S6 - 19
Samples
To measure the process, we take samples and
analyze the sample statistics following these
steps
(c) There are many types of distributions, including the normal (bell-
shaped) distribution, but distributions do differ in terms of central
tendency (mean), standard deviation or variance, and shape

Figure S6.1
Frequency

Central tendency Variation Shape

Weight Weight Weight

© 2014 Pearson Education, Inc. S6 - 20


Samples
To measure the process, we take samples and
analyze the sample statistics following these
steps
(d) If only natural causes of
variation are present,
the output of a process
forms a distribution that
Prediction
is stable over time and is Frequency
predictable

e
Tim
Weight

Figure S6.1

© 2014 Pearson Education, Inc. S6 - 21


Samples
To measure the process, we take samples and
analyze the sample statistics following these
steps
?
?? ??
(e) If assignable causes are ? ?
? ?
present, the process output ?
? ?
?
is not stable over time and ??
? ??
?
is not predicable
Frequency Prediction

e
Tim
Weight

Figure S6.1

© 2014 Pearson Education, Inc. S6 - 22


Control Charts
Constructed from historical data, the purpose
of control charts is to help distinguish between
natural variations and variations due to
assignable causes

© 2014 Pearson Education, Inc. S6 - 23


Process Control
(a) In statistical
control and capable
of producing within
Frequency
control limits
Lower control limit Upper control limit
(b) In statistical control
but not capable of
producing within
control limits

(c) Out of control

Size
(weight, length, speed, etc.) Figure S6.2
© 2014 Pearson Education, Inc. S6 - 24
Random variable

A continuous random variable is one which takes an


infinite number of possible values. Continuous
random variables are usually measurements.
Examples include height, weight, the amount of
sugar in an orange, the time required to run a
mile

Discrete random variables can only take on a


finite number of values. For example, the
outcome of rolling a die is a discrete random
variable, as it can only land on one of six possible
numbers. Continuous random variables, on the
other hand, can take on any value in a given interva
© 2014 Pearson Education, Inc. S6 - 25
Control Charts for Variables
► Characteristics that can take any real value
► May be in whole or in fractional numbers
► Continuous random variables

x-chart tracks changes in the central


tendency
R-chart indicates a gain or loss of
dispersion
c h a r ts
e t wo
Thes be used
must therS6 - 26
© 2014 Pearson Education, Inc.
t o ge
Central Limit Theorem
Regardless of the distribution of the population, the distribution of
sample means drawn from the population will tend to follow a
normal curve
1) The mean of the sampling distribution will be the
same as the population mean m

2) The standard deviation of the


sampling distribution ( ) will equal
the population standard deviation
(s ) divided by the square root of the
sample size, n

The first formula says that if we could take every possible sample from the
population and compute the corresponding sample mean, then those numbers
would center at the number we wish to estimate, the population mean μ.

The second formula says that averages computed from samples vary less than
individual measurements on the population do, and quantifies the relationship.
© 2014 Pearson Education, Inc. S6 - 27
Population and Sampling Distributions
A sampling distribution is the theoretical distribution of a sample statistic that
would be obtained from a large number of random samples of equal size from a
population. Consequently, the sampling distribution serves as a statistical “bridge”
between a known sample and the unknown population.
Population Distribution of
distributions sample means

Beta Mean of sample means =


Standard
deviation of
Normal the sample
means

Uniform

| | | | | | |

95.45% fall within ±


Figure S6.3
99.73% of all
fall within ±
© 2014 Pearson Education, Inc. S6 - 28
Setting Chart Limits
For x-Charts when we know s

Where = mean of the sample means or a target


value set for the process
z = number of normal standard deviations
(For 99.73% control limits, z = 3 )
sx = standard deviation of the sample
means
s = population (process) standard deviation
n = sample size

© 2014 Pearson Education, Inc. S6 - 29


EXAMPLE 1

•The weights of Oat Flakes within a large production lot are


sampled each hour. Managers want to set control limits that
include 99.73% of the sample means.

•Randomly select and weight 9 boxes each hour.

•Population standard deviation (𝜎) is known to be 1 ounce.

•Each of the boxes randomly selected in hours 1 through 12.

© 2014 Pearson Education, Inc. S6 - 30


Setting Control Limits
▶ Randomly select and weigh nine (n = 9) boxes
each hour
Average weight in
the first sample

WEIGHT OF SAMPLE WEIGHT OF SAMPLE WEIGHT OF SAMPLE

(AVG. OF 9 (AVG. OF 9 (AVG. OF 9


HOUR BOXES) HOUR BOXES) HOUR BOXES)
1 16.1 5 16.5 9 16.3

2 16.8 6 16.4 10 14.8

3 15.5 7 15.2 11 14.2

4 16.5 8 16.4 12 17.3

© 2014 Pearson Education, Inc. S6 - 31


Setting Control Limits

Average mean
of 12 samples

© 2014 Pearson Education, Inc. S6 - 32


Setting Control Limits

Average mean
of 12 samples

© 2014 Pearson Education, Inc. S6 - 33


Setting Control Limits
Control Chart
for samples Variation due
Out of to assignable
of 9 boxes control causes

17 = UCL

Variation due to
16 = Mean natural causes

15 = LCL

Variation due
| | | | | | | | | | | |
to assignable
1 2 3 4 5 6 7 8 9 10 11 12 Out of causes
Sample number control

© 2014 Pearson Education, Inc. S6 - 34


Setting Chart Limits
For x-Charts when we don’t know s

where average range of the


samples
A2 = control chart factor found
in Table S6.1

= mean of the sample


© 2014 Pearson Education, Inc. means S6 - 35
Control Chart Factors
TABLE S6.1 Factors for Computing Control Chart Limits (3 sigma)
SAMPLE SIZE, MEAN FACTOR, UPPER RANGE, LOWER RANGE,
n A2 D4 D3
2 1.880 3.268 0
3 1.023 2.574 0
4 .729 2.282 0
5 .577 2.115 0
6 .483 2.004 0
7 .419 1.924 0.076
8 .373 1.864 0.136
9 .337 1.816 0.184
10 .308 1.777 0.223
12 .266 1.716 0.284

© 2014 Pearson Education, Inc. S6 - 36


Setting Control Limits
Super Cola Example Process average = 12 ounces
Labeled as “net weight Average range = .25 ounce
12 ounces” Sample size = 5

UCL = 12.144

Mean = 12
From Table
S6.1
LCL = 11.856

© 2014 Pearson Education, Inc. S6 - 37


R – Chart
► Type of variables control chart
► Shows sample ranges over time
► Difference between smallest and
largest values in sample
► Monitors process variability
► Independent from process mean

© 2014 Pearson Education, Inc. S6 - 38


Setting Chart Limits
For R-Charts

where

© 2014 Pearson Education, Inc. S6 - 39


Setting Control Limits
Average range = 5.3 pounds
Sample size = 5
From Table S6.1 D4 = 2.115, D3 = 0

UCL = 11.2

Mean = 5.3

LCL = 0

© 2014 Pearson Education, Inc. S6 - 40


Mean and Range Charts
(a)
These (Sampling mean is
sampling shifting upward, but
distributions range is consistent)
result in the
charts below

UCL
(x-chart detects
x-chart shift in central
tendency)
LCL
UCL
(R-chart does not
R-chart detect change in
mean)
LCL
Figure S6.5
© 2014 Pearson Education, Inc. S6 - 41
Mean and Range Charts
(b)
These
sampling (Sampling mean
distributions is constant, but
result in the dispersion is
charts below increasing)

UCL
(x-chart indicates
x-chart no change in
central tendency)
LCL
UCL
(R-chart detects
R-chart increase in
dispersion)
LCL
Figure S6.5
© 2014 Pearson Education, Inc. S6 - 42
Example

© 2014 Pearson Education, Inc. S6 - 43


© 2014 Pearson Education, Inc. S6 - 44
Example

© 2014 Pearson Education, Inc. S6 - 45


Additional points to check for stop the process (not only based on the
beyond control limit points)

© 2014 Pearson Education, Inc. S6 - 46


Steps In Creating Control
Charts
1. Collect 20 to 25 samples, often of n = 4 or n = 5
observations each, from a stable process and
compute the mean and range of each
2. Compute the overall means ( and ), set
appropriate control limits, usually at the 99.73%
level, and calculate the preliminary upper and
lower control limits
► If the process is not currently stable and in control, use
the desired mean, m, instead of to calculate limits.

© 2014 Pearson Education, Inc. S6 - 47


Steps In Creating Control
Charts
3. Graph the sample means and ranges on their
respective control charts and determine whether
they fall outside the acceptable limits
4. Investigate points or patterns that indicate the
process is out of control – try to assign causes
for the variation, address the causes, and then
resume the process
5. Collect additional samples and, if necessary,
revalidate the control limits using the new data

© 2014 Pearson Education, Inc. S6 - 48


Setting Other Control Limits

TABLE S6.2 Common z Values


Z-VALUE (STANDARD
DEVIATION REQUIRED
DESIRED CONTROL FOR DESIRED LEVEL OF
LIMIT (%) CONFIDENCE
90.0 1.65
95.0 1.96
95.45 2.00
99.0 2.58
99.73 3.00

© 2014 Pearson Education, Inc. S6 - 49


Control Charts for Attributes
► For variables that are categorical
► Defective/nondefective, good/bad,
yes/no, acceptable/unacceptable
► Measurement is typically counting
defectives
► Charts may measure
1. Percent defective (p-chart)
2. Number of defects (c-chart)

© 2014 Pearson Education, Inc. S6 - 50


© 2014 Pearson Education, Inc. S6 - 51
Control Limits for p-Charts
Population will be a binomial distribution, but applying the Central
Limit Theorem allows us to assume a normal distribution for the
sample statistics

© 2014 Pearson Education, Inc. S6 - 52


Example
Clerks at Mosier Data Systems key in
thousands of insurance records each day for
a variety of client firms. CEO Donna Mosier
wants to set control limits to include 99.73%
of the random variation in the data entry
process when it is in control.

Samples of the work of 20 clerks are


gathered (and shown in the table). Mosier
carefully examines 100 records entered by
each clerk and counts the number of errors.
She also computes the fraction defective in
each sample. then used to set the control
© 2014 Pearson Education, Inc. S6 - 53
p-Chart for Data Entry
NUMBER NUMBER
SAMPLE OF FRACTION SAMPLE OF FRACTION
NUMBER ERRORS DEFECTIVE NUMBER ERRORS DEFECTIVE
1 6 .06 11 6 .06
2 5 .05 12 1 .01
3 0 .00 13 8 .08
4 1 .01 14 7 .07
5 4 .04 15 5 .05
6 2 .02 16 4 .04
7 5 .05 17 11 .11
8 3 .03 18 3 .03
9 3 .03 19 0 .00
10 2 .02 20 4 .04
80

© 2014 Pearson Education, Inc. S6 - 54


p-Chart for Data Entry
NUMBER NUMBER
SAMPLE OF FRACTION SAMPLE OF FRACTION
NUMBER ERRORS DEFECTIVE NUMBER ERRORS DEFECTIVE
1 6 .06 11 6 .06
2 5 .05 12 1 .01
3 0 .00 13 8 .08
4 1 .01 14 7 .07
5 4 .04 15 5 .05
6 2 .02 16 4 .04
7 5 .05 17 11 .11
8 3 .03 18 3 .03
9 3 .03 19 0 .00
e cannot
10 2 .02 20 4 u s w
e .04
( be c a
ne gative
a
have defective)
80

e r c e nt
p

© 2014 Pearson Education, Inc. S6 - 55


p-Chart for Data Entry

.11 –
.10 – UCLp = 0.10
.09 –
Fraction defective

.08 –
.07 –
.06 –
.05 –
.04 – p = 0.04
.03 –
.02 –
.01 – LCLp = 0.00
.00 – | | | | | | | | | |
2 4 6 8 10 12 14 16 18 20
Sample number

© 2014 Pearson Education, Inc. S6 - 56


p-Chart for Data Entry
Possible assignable
causes present
.11 –
.10 – UCLp = 0.10
.09 –
Fraction defective

.08 –
.07 –
.06 –
.05 –
.04 – p = 0.04
.03 –
.02 –
.01 – LCLp = 0.00
.00 – | | | | | | | | | |
2 4 6 8 10 12 14 16 18 20
Sample number

© 2014 Pearson Education, Inc. S6 - 57


Control Limits for c-Charts
Population will be a Poisson distribution, but
applying the Central Limit Theorem allows us
to assume a normal distribution for the sample
statistics

© 2014 Pearson Education, Inc. S6 - 58


Example

Red Top Cab Company receives several


complaints per day about the behavior of its
drivers. Over a 9-day period (where days
are the units of measure), the owner,
Gordon Hoft, received the following
numbers of calls from irate passengers: 3,
0, 8, 9, 6, 7, 4, 9, 8, for a total of 54
complaints. Hoft wants to compute 99.73%
control limits.

© 2014 Pearson Education, Inc. S6 - 59


c-Chart for Cab Company

UCLc = 13.35
14 –

Number defective
12 –
10 –
8 –
6 – c= 6
4 –
2 – LCLc = 0
0 – | | | | | | | | |
1 2 3 4 5 6 7 8 9
be a
Cannot mber Day
e nu
negativ
© 2014 Pearson Education, Inc. S6 - 60
Managerial Issues and
Control Charts
Three major management decisions:
► Select points in the processes that
need SPC
► Determine the appropriate charting
technique
► Set clear policies and procedures

© 2014 Pearson Education, Inc. S6 - 61


Which Control Chart to Use
TABLE S6.3 Helping You Decide Which Control Chart to Use
VARIABLE DATA
USING AN x-CHART AND R-CHART
1. Observations are variables
2. Collect 20 - 25 samples of n = 4, or n = 5, or more, each from a stable
process and compute the mean for the x-chart and range for the R-chart
3. Track samples of n observations

© 2014 Pearson Education, Inc. S6 - 62


Which Control Chart to Use
TABLE S6.3 Helping You Decide Which Control Chart to Use
ATTRIBUTE DATA
USING A P-CHART
1. Observations are attributes that can be categorized as good or bad (or
pass–fail, or functional–broken), that is, in two states
2. We deal with fraction, proportion, or percent defectives
3. There are several samples, with many observations in each
ATTRIBUTE DATA
USING A C-CHART
1. Observations are attributes whose defects per unit of output can be
counted
2. We deal with the number counted, which is a small part of the possible
occurrences
3. Defects may be: number of blemishes on a desk; crimes in a year;
broken seats in a stadium; typos in a chapter of this text; flaws in a bolt
of cloth

© 2014 Pearson Education, Inc. S6 - 63


Patterns in Control Charts
Upper control limit

Target

Lower control limit

Normal behavior. Process is “in


control.”

Figure S6.7

© 2014 Pearson Education, Inc. S6 - 64


Patterns in Control Charts
Upper control limit

Target

Lower control limit

One plot out above (or below).


Investigate for cause. Process is
“out of control.”

Figure S6.7

© 2014 Pearson Education, Inc. S6 - 65


Patterns in Control Charts
Upper control limit

Target

Lower control limit

Trends in either direction, 5 plots.


Investigate for cause of
progressive change.

Figure S6.7

© 2014 Pearson Education, Inc. S6 - 66


Patterns in Control Charts
Upper control limit

Target

Lower control limit

Two plots very near lower (or


upper) control. Investigate for
cause.

Figure S6.7

© 2014 Pearson Education, Inc. S6 - 67


Patterns in Control Charts
Upper control limit

Target

Lower control limit

Run of 5 above (or below) central


line. Investigate for cause.

Figure S6.7

© 2014 Pearson Education, Inc. S6 - 68


Patterns in Control Charts
Upper control limit

Target

Lower control limit

Erratic behavior. Investigate.

Figure S6.7

© 2014 Pearson Education, Inc. S6 - 69


Process Capability
► The natural variation of a process should
be small enough to produce products that
meet the standards required
► A process in statistical control does not
necessarily meet the design specifications
► Process capability is a measure of the
relationship between the natural variation
of the process and the design
specifications

© 2014 Pearson Education, Inc. S6 - 70


Process Capability Ratio
Upper Specification – Lower Specification
Cp =
6s
► A capable process must have a Cp of at
least 1.0
► Does not look at how well the process is
centered in the specification range
► Often a target value of Cp = 1.33 is used to
allow for off-center processes
► Six Sigma quality requires a Cp = 2.0
© 2014 Pearson Education, Inc. S6 - 71
Process Capability Ratio
Insurance claims process

Process mean x = 210.0 minutes


Process standard deviation s = .516 minutes
Design specification = 210 ± 3 minutes

Upper Specification - Lower Specification


Cp =
6s

© 2014 Pearson Education, Inc. S6 - 72


Process Capability Ratio
Insurance claims process

Process mean x = 210.0 minutes


Process standard deviation s = .516 minutes
Design specification = 210 ± 3 minutes

Upper Specification - Lower Specification


Cp =
6s
213 – 207
= = 1.938
6(.516)

© 2014 Pearson Education, Inc. S6 - 73


Process Capability Ratio
Insurance claims process

Process mean x = 210.0 minutes


Process standard deviation s = .516 minutes
Design specification = 210 ± 3 minutes

Upper Specification - Lower Specification


Cp =
6s
213 – 207 Process is
= = 1.938
6(.516) capable

© 2014 Pearson Education, Inc. S6 - 74


Process Capability Index
Upper Lower
Specification – x x – Specification
Cpk = minimum of ,,
Limit Limit
3s 3s

► A capable process must have a Cpk of at least


1.0
► A capable process is not necessarily in the
center of the specification, but it falls within the
specification limit at both extremes

© 2014 Pearson Education, Inc. S6 - 75


Process Capability Index
New Cutting Machine
New process mean x = .250 inches
Process standard deviation s = .0005 inches
Upper Specification Limit = .251 inches
Lower Specification Limit = .249 inches

© 2014 Pearson Education, Inc. S6 - 76


Process Capability Index
New Cutting Machine
New process mean x = .250 inches
Process standard deviation s = .0005 inches
Upper Specification Limit = .251 inches
Lower Specification Limit = .249 inches

(.251) - .250
Cpk = minimum of ,
(3).0005

© 2014 Pearson Education, Inc. S6 - 77


Process Capability Index
New Cutting Machine
New process mean x = .250 inches
Process standard deviation s = .0005 inches
Upper Specification Limit = .251 inches
Lower Specification Limit = .249 inches

(.251) - .250 .250 - (.249)


Cpk = minimum of ,
(3).0005 (3).0005

© 2014 Pearson Education, Inc. S6 - 78


Process Capability Index
New Cutting Machine
New process mean x = .250 inches
Process standard deviation s = .0005 inches
Upper Specification Limit = .251 inches
Lower Specification Limit = .249 inches

(.251) - .250 .250 - (.249)


Cpk = minimum of ,
(3).0005 (3).0005

Both calculations result in


.001 New machine is
Cpk = = 0.67
.0015 NOT capable

© 2014 Pearson Education, Inc. S6 - 79


Interpreting Cpk
Figure S6.8

Cpk = negative number

Cpk = zero

Cpk = between 0 and 1

Cpk = 1

Cpk > 1
Lower Upper
specification specification
limit limit
© 2014 Pearson Education, Inc. S6 - 80
Acceptance Sampling
► Form of quality testing used for incoming
materials or finished goods
► Take samples at random from a lot
(shipment) of items
► Inspect each of the items in the sample
► Decide whether to reject the whole lot
based on the inspection results
► Only screens lots; does not drive quality
improvement efforts

© 2014 Pearson Education, Inc. S6 - 81


Acceptance Sampling
► Form of quality testing used for incoming
materials or finished goods
Rejected lots can be:
► Take samples at random from a lot
1. Returned to the
(shipment) of items
supplier
► Inspect each of the items in the sample
2. Culled for defectives
► Decide whether to reject the whole lot
(100% inspection)
based on the inspection results
3. May be re-graded to a
► Only screens lots; does notspecification
lower drive quality
improvement efforts

© 2014 Pearson Education, Inc. S6 - 82


Operating Characteristic
Curve
► Shows how well a sampling plan
discriminates between good and bad
lots (shipments)
► Shows the relationship between the
probability of accepting a lot and its
quality level

© 2014 Pearson Education, Inc. S6 - 83


The “Perfect” OC Curve
Keep whole
shipment
P(Accept Whole Shipment)

100 –

75 – Return whole
shipment
50 –
Cut-Off
25 –

| | | | | | | | | | |
0 –
0 10 20 30 40 50 60 70 80 90 100
% Defective in Lot

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An OC Curve
Figure S6.9

 = 0.05 producer’s risk for AQL

Probability of
Acceptance

 = 0.10 | | | | | | | | | Percent
0 1 2 3 4 5 6 7 8 defective
Consumer’s AQL LTPD
risk for LTPD Good Indifference
Bad lots
lots zone

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AQL and LTPD
► Acceptable Quality Level (AQL)
► Poorest level of quality we are willing
to accept
► Lot Tolerance Percent Defective
(LTPD)
► Quality level we consider bad
► Consumer (buyer) does not want to
accept lots with more defects than
LTPD

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Producer’s and Consumer’s
Risks
► Producer's risk ()
► Probability of rejecting a good lot
► Probability of rejecting a lot when the
fraction defective is at or above the AQL
► Consumer's risk (b)
► Probability of accepting a bad lot
► Probability of accepting a lot when
fraction defective is below the LTPD

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OC Curves for Different
Sampling Plans

n = 50, c = 1

n = 100, c = 2

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Average Outgoing Quality

(Pd)(Pa)(N – n)
AOQ =
N

where
Pd = true percent defective of the lot
Pa = probability of accepting the lot
N = number of items in the lot
n = number of items in the sample

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Average Outgoing Quality
1. If a sampling plan replaces all defectives
2. If we know the incoming percent defective
for the lot
We can compute the average outgoing
quality (AOQ) in percent defective
The maximum AOQ is the highest percent
defective or the lowest average quality
and is called the average outgoing quality
limit (AOQL)

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Automated Inspection
► Modern
technologies
allow virtually
100% inspection
at minimal costs
► Not suitable for
all situations

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SPC and Process Variability
Lower Upper
specification specification
limit limit (a) Acceptance sampling
(Some bad units
accepted; the “lot” is
good or bad)
(b) Statistical process
control (Keep the
process “in control”)

(c) Cpk > 1 (Design


a process that
is in within
specification)
Process mean, m
Figure S6.10
© 2014 Pearson Education, Inc. S6 - 92
© 2014 Pearson Education, Inc. S6 - 93
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