Slides Prepared by

JOHN S. LOUCKS
St. Edwards University

2002 South-Western College Publishing/Thomson Learning

Chapter 20
Statistical Methods for Quality Control

Statistical Process Control

Acceptance Sampling

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UCL
CL

LCL
|

Quality Terminology

Quality is the totality of features and

characteristics of a product or service that
bears on its ability to satisfy given needs.

Quality Terminology

Quality assurance refers to the entire system

of policies, procedures, and guidelines
established by an organization to achieve and
maintain quality.
The objective of quality engineering is to
include quality in the design of products and
processes and to identify potential quality
problems prior to production.
Quality control consists of making a series of
inspections and measurements to determine
whether quality standards are being met.

Statistical Process Control (SPC)

The goal of SPC is to determine whether the

process can be continued or whether it should
be adjusted to achieve a desired quality level.
If the variation in the quality of the production
output is due to assignable causes (operator
error, worn-out tooling, bad raw material, . . . )
the process should be adjusted or corrected as
soon as possible.
If the variation in output is due to common
causes (variation in materials, humidity,
temperature, . . . ) which the manager cannot
control, the process does not need to be
adjusted.
5

SPC Hypotheses

SPC procedures are based on hypothesistesting methodology.

The null hypothesis H0 is formulated in terms
of the production process being in control.
The alternative hypothesis Ha is formulated in
terms of the process being out of control.
As with other hypothesis-testing procedures,
both a Type I error (adjusting an in-control
process) and a Type II error (allowing an out-ofcontrol process to continue) are possible.

Decisions and State of the Process

Type I and Type II Errors

State of Production Process
H0 True
In Control

Ha True
Out of Control

Continue
Process

Correct
Decision

Type II Error

Adjust
Process

Type I Error

Decision

Adjust in-control
process

Allow out-of-control
process to continue

Correct
Decision

Control Charts

SPC uses graphical displays known as control

charts to monitor a production process.
Control charts provide a basis for deciding
whether the variation in the output is due to
common causes (in control) or assignable
causes (out of control).

Control Charts

Two important lines on a control chart are the

upper control limit (UCL) and lower control
limit (LCL).
These lines are chosen so that when the
process is in control, there will be a high
probability that the sample finding will be
between the two lines.
Values outside of the control limits provide
strong evidence that the process is out of
control.

Types of Control Charts

An x chart is used if the quality of the output is

measured in terms of a variable such as
length, weight, temperature, and so on.
x represents the mean value found in a sample
of the output.
An R chart is used to monitor the range of the
measurements in the sample.
A p chart is used to monitor the proportion
defective in the sample.
An np chart is used to monitor the number of
defective items in the sample.

10

x Chart Structure
x
UCL
Center Line

Process Mean
When in Control
LCL

Time

11

Control Limits for an x Chart

Process Mean and Standard Deviation Known

UCL = 3 x
LCL = 3 x

12

Example: Granite Rock Co.

Control Limits for an x Chart: Process Mean

and Standard Deviation Known
The weight of bags of cement filled by
Granites packaging process is normally
distributed with a mean of 50 pounds and a
standard deviation of 1.5 pounds.
What should be the control limits for
samples of 9 bags?

13

Example: Granite Rock Co.

Control Limits for an x Chart: Process Mean

and Standard Deviation Known
= 50, = 1.5, n = 9

.
15

UCL = 50 + 3(.5) =
LCL = 50 - 3(.5) =

05
.

51.5
48.5

14

Control Limits for an x Chart

Process Mean and Standard Deviation

Unknown
UCL = x A2R
LCL = x A2R
=
where:
_
x = overall sample mean
R = average range
A2 = a constant that depends on n; taken
from
Factors for Control Charts table

15

Factors for x and R Control Charts

Factors Table (Partial)

n

d2

A2

d3

D3

D4

5
6
7
8
9
10
.
.

2.326
2.534
2.704
2.847
2.970
3.078
.
.

0.577
0.483
0.419
0.373
0.337
0.308
.
.

0.864
0.848
0.833
0.820
0.808
0.797
.
.

0
0
0.076
0.136
0.184
0.223
.
.

2.114
2.004
1.924
1.864
1.816
1.777
.
.

16

Control Limits for an R Chart

UCL = RD4
LCL = RD3
where:

_
_

R = average range
D3, D4 = constants that depend on n;
found
in Factors for Control
Charts
table

17

Factors for x and R Control Charts

Factors Table (Partial)

n

d2

A2

d3

D3

D4

5
6
7
8
9
10
.
.

2.326
2.534
2.704
2.847
2.970
3.078
.
.

0.577
0.483
0.419
0.373
0.337
0.308
.
.

0.864
0.848
0.833
0.820
0.808
0.797
.
.

0
0
0.076
0.136
0.184
0.223
.
.

2.114
2.004
1.924
1.864
1.816
1.777
.
.

18

Example: Granite Rock Co.

Control Limits for x and R Charts: Process

Mean
and Standard Deviation Unknown
Suppose Granite does not know the true
mean and standard deviation for its bag filling
process. It wants to develop x and R charts
based on twenty samples of 5 bags each.
The twenty samples resulted in an overall
sample mean of 50.01 pounds and an average
range of .322 pounds.

19

Example: Granite Rock Co.

Control Limits for R Chart: Process Mean

and Standard Deviation Unknown
=

x = 50.01, R = .322, n = 5
_

UCL = RD4 = .322(2.114) = .681

_

LCL = RD3 = .322(0)

20

Example: Granite Rock Co.

R Chart
A

D
R BChart for C
Granite Rock
Co. E

0.80
0.70
Sam ple Range R

UCL

0.60
0.50
0.40
0.30
0.20
0.10

LCL

0.00
0

10
Sam ple Num ber

15

20

21

Example: Granite Rock Co.

Control Limits for x Chart: Process Mean

and Standard Deviation Unknown
=

x = 50.01, R = .322, n = 5

= x + A R = 50.01 + .577(.322) =
UCL =
2
50.196 =
LCL = x - A2R = 50.01 - .577(.322) =
49.824

22

Example: Granite Rock Co.

x Chart
x Chart for Granite Rock Co.
50.3
UCL

50.2

Sample
Mean

50.1
50.0
49.9
49.8

LCL

49.7

10
Sample Number

15

20

23

Control Limits for a p Chart

UCL = p 3 p
LCL = p 3 p

where:

p(1 p)
n

assuming:
np > 5
n(1-p) > 5
Note: If computed LCL is negative, set LCL =
0
24

Example: Norwest Bank

Every check cashed or deposited at
Norwest Bank must be encoded with the
amount of the check before it can begin the
Federal Reserve clearing process. The
accuracy of the check encoding process is of
upmost importance. If there is any
discrepancy between the amount a check is
made out for and the encoded amount, the
check is defective.

25

Example: Norwest Bank

Twenty samples, each consisting of 250
checks, were selected and examined when the
encoding process was known to be operating
correctly. The number of defective checks
found in the samples follow.
4
2

1
8

5
5

3
3

2
6

7
4

4
2

5
5

2
3

3
6

26

Example: Norwest Bank

Control Limits for a p Chart

Suppose Norwest does not know the
proportion of defective checks, p, for the
encoding process when it is in control.
We will treat the data (20 samples)
collected as one large sample and compute
the average number of defective checks for all
the data. That value can then be used to
estimate p.

27

Example: Norwest Bank

Control Limits for a p Chart

Estimated p = 80/((20)(250)) = 80/5000 = .
016
p(1 p)
.016(1 .016)
.015744
p

.007936
n
250
250
UCL =p 3 p .016 3(.007936) .039808
LCL = p 3 p .016 3(.007936) -.007808 0

28

Example: Norwest Bank

p Chart
p Chart for Norwest Bank
0.045
0.040

Sample Proportion p

UCL

0.035
0.030
0.025
0.020
0.015
0.010
0.005

LCL

0.000
0

10
Sample Number

15

20

29

Control Limits for an np Chart

UCL = np 3 np(1 p)
LCL = np 3 np(1 p)

assuming:
np > 5
n(1-p) > 5
Note: If computed LCL is negative, set LCL
=0

30

Interpretation of Control Charts

The location and pattern of points in a control

chart enable us to determine, with a small
probability of error, whether a process is in
statistical control.
A primary indication that a process may be out
of control is a data point outside the control
limits.
Certain patterns of points within the control
limits can be warning signals of quality
problems:
Large number of points on one side of
center line.
Six or seven points in a row that indicate
either an increasing or decreasing trend.

31

Acceptance Sampling

Acceptance sampling is a statistical method

that enables us to base the accept-reject
decision on the inspection of a sample of items
from the lot.
Acceptance sampling has advantages over
100% inspection including: less expensive,
less product damage, fewer people
involved, . . . and more.

32

Acceptance Sampling Procedure

Lot received
Sample selected
Sampled items
inspected for quality
Results compared with
Quality is not
Quality is
satisfactory specified quality characteristics satisfactory
Accept the lot

Reject the lot

Send to production
or customer

Decide on disposition
of the lot
33

Acceptance Sampling

Acceptance sampling is based on hypothesistesting methodology.

The hypothesis are:
H0: Good-quality lot
Ha: Poor-quality lot

34

The Outcomes of Acceptance Sampling

Type I and Type II Errors

State of the Lot
H0 True
Ha True
Decision Good-Quality Lot Poor-Quality Lot

Accept H0
Accept the Lot
Reject H0
Reject the Lot

Correct
Decision

Type II Error
Consumers Risk

Correct
Type I Error
Producers Risk Decision

35

Probability of Accepting a Lot

Binomial Probability Function for Acceptance

Sampling
f (x)

n!
px(1 p)(n x)
x!(n x)!

where:
n = sample size
p = proportion of defective items in lot
x = number of defective items in sample
f(x) = probability of x defective items in
sample

36

Example: Acceptance Sampling

An inspector takes a sample of 20 items from a
lot.
Her policy is to accept a lot if no more than 2
defective
items are found in the sample.
Assuming that 5 percent of a lot is defective,
what is
the probability that she will accept a lot? Reject
a lot?
n = 20, c = 2, and p = .05
P(Accept Lot) = f(0) + f(1) + f(2)
= .3585 + .3774 + .1887
= .9246

37

Example: Acceptance Sampling

n
20

Using the Tables of Binomial Probabilities

x
0
1
2
3
4
5
6
7
8
9

.05
.3585
.3774
.1887
.0596
.0133
.0022
.0003
.0000
.0000
.0000

.10
.1216
.2702
.2852
.1901
.0898
.0319
.0089
.0020
.0004
.0001

.15
.0388
.1368
.2293
.2428
.1821
.1028
.0454
.0160
.0046
.0011

.20
.0115
.0576
.1369
.2054
.2182
.1746
.1091
.0545
.0222
.0074

p
.25
.0032
.0211
.0669
.1339
.1897
.2023
.1686
.1124
.0609
.0271

.30
.0008
.0068
.0278
.0716
.1304
.1789
.1916
.1643
.1144
.0654

.35
.0002
.0020
.0100
.0323
.0738
.1272
.1712
.1844
.1614
.1158

.40
.0000
.0005
.0031
.0123
.0350
.0746
.1244
.1659
.1797
.1597

.45
.0000
.0001
.0008
.0040
.0139
.0365
.0746
.1221
.1623
.1771

.50
.0000
.0000
.0002
.0011
.0046
.0148
.0370
.0739
.1201
.1602

38

Selecting an Acceptance Sampling Plan

In formulating a plan, managers must specify

two values for the fraction defective in the lot.
a = the probability that a lot with p0
defectives will
be rejected.
b = the probability that a lot with p1
defectives will
be accepted.
Then, the values of n and c are selected that
result in an acceptance sampling plan that
comes closest to meeting both the a and b
requirements specified.

39

Probability of Accepting the Lot

Operating Characteristic Curve

1.00

.90

.80

n = 15, c = 0

.70

p0 = .03, p1 = .15

.60

= .3667, = .0874

.50
.40
.30

(1 - )

.20

p0

p1

.10

10
15
20
Percent Defective in the Lot

25
40

Multiple Sampling Plans

A multiple sampling plan uses two or more

stages of sampling.
At each stage the decision possibilities are:
stop sampling and accept the lot,
stop sampling and reject the lot, or
continue sampling.
Multiple sampling plans often result in a
smaller total sample size than single-sample
plans with the same Type I error and Type II
error probabilities.

41

A Two-Stage Acceptance Sampling Plan

Inspect n1 items
Find x1 defective items in this sample
x1 < c1 ?
Reject
the lot

Yes

Yes

Accept
the lot

No

x1 > c2 ?
No

Inspect n2 additional items

Find x2 defective items in this sample
No

x1 + x2 < c3 ?

Yes
42

End of Chapter 20

43