Statistics

Week 8 Agenda
Review Homework
Chapter 4 2, 3
Lecture/discussion
Statistics in Quality
Central Tendency
Dispersion
Shape
Standardized Normal
Curve
Central Limit Theorem
Statistical Process Control
Kurt Manufacturing

Week 9 assignment
Read chapter 5
Homework
Problems: Chapter 4 - 8, 9,
24, 26, 36, 44, 49

Statistics
The Use of Statistics
in Quality

Chapter Four
Statistics
A few notes on SPCs
historical background
Walter Shewhart (Bell Labs 1920s) - suggested that
every process exhibits some degree of variation and
therefore is expected.
identified two types of variation (chance cause) and (assignable
cause)
proposed first control chart to separate these two types of
variation.
SPC was successfully applied during World War II as
a means of insuring interchangeability of parts for
weapons/ equipment.
Resurgence of SPC in the 1980s in response to
Japanese manufacturing success.

Statistics
The basics
Dont inspect the product, inspect the
process.
You cant inspect it in, youve got to build
it in.
If you cant measure it, you cant
manage it.
Statistics
Barriers to process control
Tendency to focus on volume of output
rather than quality of output.
Tendency to measure products against a
set of internal conformance specifications
that may or may not relate to customer
expectations.
Statistics
The SPC approach
The SPC approach is designed to identify
underlying cause of problems which
cause process variations that are outside
predetermined tolerances and to
implement controls to fix the problem.
Statistics
The SPC steps
Basic approach:
Awareness that a problem exists.
Determine the specific problem to be
solved.
Diagnose the causes of the problem.
Determine and implement remedies.
Implement controls to hold the gains
achieved by solving the problem.
Statistics
SPC requires the use of
statistics
Quality improvement efforts have their
foundation in statistics.
Statistical process control involves the
collection
tabulation
analysis
interpretation
presentation
of numerical data.
Statistics
Statistic types
Deductive statistics describe a complete
data set
Inductive statistics deal with a limited
amount of data
Statistics
Statistics
POPULATION
Parameters: , o, o
2
SAMPLE
Statistics: x, s, s
2
Inferential
Statistics
Deductive
Inductive
Statistics
Types of data `
Variables data - quality characteristics
that are measurable values.
Measurable and normally continuous; may
take on any value.
Attribute data - quality characteristics that
are observed to be either present or
absent, conforming or nonconforming.
Countable and normally discrete; integer
Statistics
Descriptive statistics
Measures of Central Tendency
Describes the center position of the data
Mean Median Mode

Measures of Dispersion
Describes the spread of the data
Range Variance Standard deviation
Statistics
Measures of central
tendency: Mean
Arithmetic mean x =

where x
i
is one observation, E means
add up what follows and N is the
number of observations
So, for example, if the data are :
0,2,5,9,12 the mean is
(0+2+5+9+12)/5 = 28/5 = 5.6

=
N
i
i x
N
1
1
Statistics
Measures of central
tendency: Median - mode
Median = the observation in the middle
of sorted data
Mode = the most frequently occurring
value
Statistics
Median and mode
100 91 85 84 75 72 72 69 65
Mean = 79.22
Median
Mode
Statistics
Measures of dispersion:
range
The range is calculated by taking the
maximum value and subtracting the
minimum value.
2 4 6 8 10 12 14
Range = 14 - 2 = 12
Statistics
Measures of dispersion:
variance
Calculate the deviation from the mean for
every observation.
Square each deviation
Add them up and divide by the number of
observations
n
x
n
i
i
2
=
2
)

=

o
1
(
Statistics
Measures of dispersion:
standard deviation
The standard deviation is the square root
of the variance. The variance is in
square units so the standard deviation
is in the same units as x.

n
x
n
i
i

)
=
=
2
1
(
o
Statistics
Standard deviation and
curve shape
If o is small, there is a high probability for
getting a value close to the mean.

If o is large, there is a correspondingly
higher probability for getting values
further away from the mean.
Statistics
Chebyshevs theorem
If a probability distribution has the mean
and the standard deviation o, the
probability of obtaining a value which
deviates from the mean by at least k
standard deviations is at most 1/k
2
.
2
1
(
k
k x P s ) > o
Statistics
As a result
Probability of obtaining a value beyond x
standard deviations is at most::
2 standard deviations
1/22 = 1/4 = 0.25
3 standard deviations
1/32 = 1/9 = 0.11
4 standard deviations
1/42 = 1/16 = 0.0625
Statistics
Other measures of
dispersion: skewness
When a distribution lacks symmetry, it is
considered skewed.
<0 left 0 = symmetrical >0 right
3
3
1
3
/ ) (
s
n x x f
a
n
i
i i

=
=
Statistics
Other measures of
dispersion: kurtosis
suggests peakedness of the data
a can be used to compare distributions

4
4
1
4
/ ) X ( f
a
s
n x
n
i
i i

=
=
Statistics
The normal frequency
distribution
2 2
2 / ) (
2
1
) (
o
to

=
x
e x f
Statistics
The normal curve
A normal curve is symmetrical about
The mean, mode, and median are equal
The curve is uni-modal and bell-shaped
Data values concentrate around the
mean
Area under the normal curve equals 1


Statistics
The normal curve
If x follows a bell-shaped (normal)
distribution, then the probability that x is
within
1 standard deviation of the mean is 68%
2 standard deviations of the mean is 95 %
3 standard deviations of the mean is 99.7%

Statistics
One standard deviation
68.3%
o o
Statistics
Two standard deviations
95.5%
2o 2o
Statistics
Three standard deviations
99.73%
3o 3o
Statistics
The standardized normal
x scale
z scale
-3o
+3o
+2o +o -o -2o
-3 +3 +2 +1 -1 -2 0

= 0
o = 1