Ch12-New Statistically Based Quality Improvement 118 Slids

Chapter 12
Statistically Based Quality

Improvement
S. Thomas Foster, Jr.
Boise State University
Slides Prepared by
Bruce R. Barringer
University of Central Florida
2001 Prentice-Hall
Chapter Overview
Statistical Fundamentals
Process Control Charts
Some Control Chart Concepts
Process Capability
Other Statistical Techniques in Quality
Management
2001 Prentice-Hall Transparency 12-2

Introduction
Statistics are everywhere.
Statistics are a group of tools that allow us to analyze
data, make summaries, draw inferences, and
generalize from the data.
Statistics are very important in the field of quality.
In fact, during the first half century of the quality
movement, nearly all the work done in the field of
quality related to statistics.
It is not enough to learn the different charts and
statistical techniques. We also must know how to apply
these techniques in a way that will document and
motivate continual improvement in organizations.
Slide 1 of 8
Statistical Thinking
Is a decision-making skill demonstrated by the
ability to draw to conclusions based on data.
Intuitive decisions are sometimes biased and
wrong-headed.
As a result, decisions are sometimes made that
satisfy the few but irritate the many.

Statistical thinking is based on three

concepts:
. All work occurs in a system of interconnected
process.
. All processes have variation.
. Understanding variation and reducing variation
are important keys to success.

In business, decisions need to be made

based on data.
Statistical thinking guides us to make
decisions based on the analysis of data ( see
Quality Highlight 12.1)

Why Do Statistics Sometimes Fail in the

Workplace?
Regrettably, many times statistical tools do
not create the desired result. Why is this so?
Many firms fail to implement quality control
in a substantive way.
That is they prefer form over substance.

Slide 2 of 8
Reasons for Failure of Statistical Tools

Lack of knowledge about the tools; therefore,
tools are misapplied.
General disdain for all things mathematical
creates a natural barrier to the use of statistics.
Cultural barriers in a company make the use of
statistics for continual improvement difficult.
Statistical specialists have trouble communicating
with managerial generalists.
Slide 3 of 8

(continued)
Statistics generally are poorly taught,
emphasizing mathematical development rather
than application.
People have a poor understanding of the
scientific method.
Organization lack patience in collecting data.
All decisions have to be made yesterday.
Slide 4 of 8

(continued)
Statistics are view as something to buttress an
already-held opinion rather than a method for
informing and improving decision making.
People fear using statistics because they fear
they may violate critical statistical
assumptions.


(continued)
--Most people dont understand random
variation resulting in too much process
tampering.
--Statistical tools often are reactive and focus on
effect rather than causes.


(continued)
-- Another reason people make mistakes with
statistics is founded in the notions of Type and
Type errors.
-- In the study of quality, we call Type error
producers risk and Type error, consumers risk.

Producers and Consumers risk
Producers risk is the probability that a good
product will be rejected.
Consumers risk is the probability that a
nonconforming product will be available for sale.
Consumers risk happens when statistical
quality analysis fails to result in the scrapping or
reworking of a defective product.
When either Type or Type errors occur,
erroneous decision are made relative to product
which result in high cost or lost future sales.
What do we mean by the term Statistical

Quality Control?
-- The age of control-oriented management is over.
-- Now the focus is on continual improvement not
on process or organization control.
-- We prefer to not use the term quality control here.
-- We use the term control sparsely in this chapter,
such as in control limits.

Understanding Process Variation

All process exhibit variation. There is some
variation that we can control and other
variation that we cannot control.
If there is too much variation, process parts
will not fit correctly, products will nit function
properly, and a firm will gain a reputation for
poor quality.


Two types of variation commonly occur. These
are random and nonrandom variation.
Random variation is uncontrollable and
nonrandom variation has a cause that can be
identified.

Slide 5 of 8

Random variation is centered around a mean
and occurs with a consistent amount of
dispersion.
This type of variation cannot be controlled.
Hence, we refer to it as uncontrolled
variation.
When the random variation is large, processes
may not meet specifications on a consistent
basis.
The statistical tools discussed in this chapter are not
designed to detect random variation.
Figure 12.1 shows normal distributions resulting from
a variety of samples taken from the same population
over time. We find a consistency in the amount of
dispersion and the mean of the process. The
consistency of the variation shows that only random
causes of variation are present within the process.
This means that in the future when we gather samples
from the process, we can expect that the distributions
associated with such samples will also take the same
form.
Figure 12.1 Random variation

Nonrandom Variation
-- Nonrandom or special cause variation results
from some event. The event may be a shift in a
process mean or some unexpected occurrence.
-- Figure 12.2 shows distributions resulting from a
number of samples taken from the same population
over time where nonrandom variation is exhibited.
Notice that from one sample to the next, the
dispersion, and average of the process are changing.
It is clear that nonrandom variation results in a
process that is not predictable.
Figure 12.2 Nonrandom Variation

Process Stability
Means that the variation we observe in the
process is random variation and nor
nonrandom variation. To determine process
stability we use process charts.
Process charts are graphs designed to signal
process workers when nonrandom variation is
occurring in a process.

Slide 7 of 8
Sampling Methods
To ensure that processes are stable, data are
gathered in samples.
For the most part, sampling methods have
been preferred to the alternative of 100%
inspection.

Sampling Methods
-- The reasons for sampling are well established.
. Samples are
- cheaper,
- take less time,
- less intrusive,
- allow the user to frame the sample, and
- destructive testing, when 100% inspection is
impossible.
100% inspection
-- Recent experience has shown that 100%
inspection can be effective in certain instances.
-- 100% samples are also known as screening
samples, sorting samples, rectifying samples, or
detailing samples.
-- Another example of 100% inspection is used
when performing in-process inspection.
-- We should clarify that in-process inspection also
can be performed on a sampling basis.
Sampling Methods
-- Random samples. Randomization is useful because it
ensures independence among observations. To
randomize means to sample is such a way that every
piece of product has an equal chance of being selected
for inspection.
-- Random samples are often the preferred form of
sampling and yet often the most difficult to achieve.
-- This is especially true in process industries were
multiple products are made by the same machines,
workers, and processes in sequence.

Sampling Methods
-- Systematic samples. Systematic samples have
some of the benefits of random samples
without the difficulty of randomizing.
-- Samples can be systematic according to time or
according to sequence.

Slide 8 of 8
Sampling Methods
Sampling by Rational Subgroup. A rational
subgroup is a group of data that is logically
homogenous; variation within the data can
provide a yardstick for setting limits on the
standard variation between subgroups.
If variation among different subgroups is not
accounted for, then an unwanted source of
nonrandom variation is being introduced.

Planning for inspection
-- Questions must be answered about:
- What type of sampling plan will be used?
- Who will perform the inspection?
- Who use in-process inspection sample size?
- What the critical attributes to be inspection are?
- Where inspection should be perform?
-- There are rules for inspection that help to prioritize
where inspection should be performed. Many firms
compute the ratio between the cost of inspection and the
cost of failure to determine the prioritize.
Slide 1 of 37
Process Charts
SPC charts are tools for monitoring process
variation.
Figure 12.3 shows a process control chart. It
has an upper limit, a center line, and a lower
limit.
There is a generalized process for
implementing all types of process charts.

Slide 2 of 37
Figure 12.3 Control Chart

Slide 3 of 37
Variables and Attributes

To select the proper process chart, we must
differentiate between variables and attributes.
A variable is a continuous measurement such
as weight, height, or volume.
An attribute is the result of a binomial
process that results in an either-or-situation.
Table 12.1 shows the most common types of
variable and attribute charts.
Slide 4 of 37
Table 12.1 Variables and Attributes Control Chart
Variables Attributes
X (process population average) P (proportion defective)
X-bar (mean for average) np (number defective)
R (range) C (number conforming)
MR (moving range) U (number nonconforming)
S (standard deviation)

Slide 5 of 37
There are four central requirements for

properly using process charts
1. You must understand the generic process for
implementing process charts.
2. You must know how to interpret process charts.
3. You need to know when different process charts are
used.
4. You need to know how to compute limits for the
different types of process charts.
Slide 6 of 37
A Generalized Procedure for Developing

Process Charts
1. Identify critical operations in the process
where inspection might be needed. These are
operations in which, if the operation is
performed improperly, the product will be
negatively affected.
2. Identify critical product characteristics. These
are the attributes of the product that will result
in either good or poor function of the product.
Slide 7 of 37

Process Charts (continued)
3. Determine whether the critical product
characteristic is a variable or an attribute.
4. Select the appropriate process control chart
from among the many types of control charts.
This decision process and types of charts
available are discussed later.
5. Establish the control limits and use the chart
to continually monitor and improve.
Slide 8 of 37

Process Charts (continued)
6. Update the limits when changes have been
made to the process.

Slide 9 of 37
Understanding Control Charts

A process chart is nothing more than an
application of hypothesis testing where the null
hypothesis is that the product meets
requirements.
An X-bar chart is a variables chart that
monitors average measurement.

We want to inspect a sample of sheets to see

whether the sheets are indeed 11 inches long.
We first use a hypothesis test instead of a control
chart to determine whether the paper is really 11
inches long.
The null hypothesis is H0 := 11 inches
The alternative hypothesis is H1 : 11 inches
We establish a distribution as Figure 12.4 shows
the rejection regions.
Figure 12.4 Hypothesis testing

To test this hypothesis we draw a sample of n =

10 sheets of paper and measure the sheets.
The measurements are shown in the table shown
in page 356 .
Because sample mean 10.99877 does not fall
within either of the rejection regions shown in
Figure 12.4, we fail to reject the null hypothesis
and conclude that the sheets do not differ
significantly from an average of 11 inches.
With process charts, we place the distribution on

its side as shown in Figure 12.5.
We draw a central line and upper and lower
rejection lines, which we call control limits.
We then plot the sample average 10.99877 on the
control chart.
Because the point falls between the control limits,
we conclude that the process is in control
This mean that the variation in the process is
random.
Figure 12.5 process control chart

The Central Limit Theorem ( CLT) states that

when we plot the sample means, the
distribution approximates a normal
distribution.

X-bar and R Charts

When we are interested in monitoring a
measurement for a particular product in a
process, there are two primary variables of
interest: the mean of the process or average
and the dispersion of the process.
The x-bar chart aids us in monitoring the
process mean or average.
The R chart is used in monitoring process
dispersion.
Slide 10 of 37
X-bar and R Charts

The X-bar chart is a process chart used to
monitor the average of the characteristics being
measured. To set up an X-bar chart select
samples from the process for the characteristic
being measured. Then form the samples into
rational subgroups. Next, find the average value
of each sample by dividing the sums of the
measurements by the sample size and plot the
value on the process control X-bar chart.

Slide 11 of 37
X-bar and R Charts (continued)

The R chart is used to monitor the variability or
dispersion of the process. It is used in conjunction
with the X-bar chart when the process characteristic
is variable. To develop an R chart, collect samples
from the process and organize them into subgroups,
usually of three to six items. Next, compute the
range, R, by taking the difference of the high value
in the subgroup minus the low value. Then plot the
R values on the R chart.
A standard process chart form is shown in Figure
12.6.
Slide 12 of 37 Figure 12.6 X-bar and R Charts

In the example in Figure 12.7, our control chart form
is filled out with measurements from a process ( There
are k = 25 samples of size n = 4).
The formulas for computing control lines are given in
Figure 12.8 .
Figure 12.9 shows the completed formulas for the
example in Figure 12.7.
The lower limit of R is zero for sample sizes less than
or equal to six.
For sample size greater than six, D3 values must be
used from Table A-1 in the appendix (page 449).
Figure 12.7 Completed x-bar and R chart

Figure 12.8 x-bar and R chart calculation work sheet

Figure 12.9 Calculation work sheet for Figure 12.7

data

Slide 13 of 37
Interpreting Control Charts

Before introducing other types of process charts, we
discuss the interpretation of the charts.
Figure 12.10 show different signals for concern that
are sent by a control chart, as in the second and third
boxes. When a point is found to be outside of the
control limits, we call this an out of control
situation. When a process is out of control, the
variation is probably not longer random, this was a
nonrandom event and search for an assignment cause
of variability.
Figure 12.10 Control chart evidence for

investigation

To determine nonrandom event, base on the
chances of this happening at random are very
low.
There are some cases of nonrandom event:
-- Process run: five points in succession ( either all
above or below the center line).
-- Process drift: seven points that are all either
increasing or decreasing.
-- erratic behavior: large jumps of more than
three or four standard deviations.
Slide 18 of 37
Implications of a Process Out of Control

If a process loses control and becomes
nonrandom, the process should be stopped
immediately.
In many modern process industries where just-in-
time is used, this will result in the stoppage of
several work stations.
The team of workers who are to address the
problem should use a structured problem solving
process such as discussed in chapter 10 to identify
the root cause of the out-of-control situation.
Once the assignable cause of variation has been

discovered, corrective action can be taken to
eliminate the cause.
The process is than restart and people return to
work.

The cause of the problem should be documented
and discussed later during the weekly
departmental meeting.
All worker should know why a problem in the
process occurred.
They should understand the causes and the
corrective action that was taken to solve the
problem.
As time passes, the process become more stable
as causes of errors are detected and eliminated.
As a result, they had increased their master

production schedules by 20% to cover up this
problem.
This is result of less rework, scrap, and other
problems because of poor quality.
We should know that it is the process and the
management problem, it is not the worker
problem.

Example 12.1: Using x-bar and R charts
-- The data is shown as table that is shown in page
362 in textbook.
-- The grand mean is 6.125 and R-bar is 2.
-- Figure 12.11 shows the values for the process
control limits.
-- The averages and ranges fall within the control
limits and no other signals of nonrandom activity
are present, we conclude that the process is
random.
Figure 12.11 Calculation work sheet and x-bar chart

Slide 19 of 37
X and Moving Range (MR) Charts for

Population Data
At times, it may not be possible to draw
samples. This may occur because a process is
so slow that only one or two units per day are
produced.
If you have a variable measurement that you
want to monitor, the X and MR charts might
be the thing for you.
Slide 20 of 37

Population Data (continued)
X chart. A chart used to monitor the mean of a
process for population values.
MR chart. A chart for plotting variables when
samples are not possible.
If data are not normally distributed, other
charts are available.

Slide 21 of 37
g and h Charts
A g chart is used when data are geometrically
distributed, and h charts are useful when data
are hyper-geometrically distributed.
Figure 12.12 presents pictures of geometric
and hyper-geometric distributions. If you
develop a histogram of your data, and it
appears like either of these distributions, you
may want to use either an h or a g chart
instead of an X chart.
Slide 22 of 37
Figure 12.12 g and h Distributions


-- In statistics, an X is an individual observation
from a population.
-- The X chart reflects a population distribution.
-- We call the three standard deviation limits in
an X chart the natural variation in a process.


-- This natural variation can be compared with
specification limits.
-- Strictly speaking, X chart limits are not control
limits; they are natural limits.


-- The formula for the center line and the natural
limits for an X chart is as follows from Table
12.2 ( page 371).

-- x / E ( MR ), x x / k
2
-- E2 = 2.66 ( n = 2 ), ( see Table A-1 in the

Appendix).


-- The formula for the MR chart is similar to that
for the R chart ( where n = 2).
--
UCLMR D4 ( MR), LCLMR D3 ( MR )

Example 12.2: X and MR charts in action

-- The data is shown on page 365.
-- The results shown in Figure 12.13.
-- A run ( from point 9 to point 15) indicates that
trip times may be increasing.
-- This does not imply that the girlfriend is the
cause.
-- Further investigation may be needed.

Figure 12.13 X chart for trips to Lincoln

Slide 23 of 37
Control Charts for Attributes

We now shift to charts for attributes. These charts
deal with binomial and Poisson processes that are not
measurements.
We will now be thinking in terms of defects and
defectives rather than diameters or widths.
A defect is an irregularity or problem with a larger
unit. The larger unit may contain many defects.
Defects are monitored using c and u charts.
A defective is a unit that, as a whole, is not
acceptable or does not meet specifications.
Defectives are monitored using p and np charts.
Slide 24 of 37
p Charts for Proportion Defective

The p chart is a process chart that is used to graph the
proportion of items in a sample that are defective
(nonconforming to specifications).
p charts are effectively used to determine when there
has been a shift in the proportion defective for a
particular product or service.
Typical applications of the p chart include things like
late deliveries, incomplete orders, calls not getting
dial tones, accounting transaction errors, clerical
errors on written forms, or parts that dont mate
properly.
p Charts for Proportion Defective

-- The formulas for the p chart are as follows:
--
p3 [ p (1 p ) / n ]
-- Example 12.3: p charts in action
- The data is shown on page 366.
- The results are shown on Figure 12.14.
- It shows that two month have poor performance.
- Investigations should be undertaken to identify
assignable causes of variation.
Figure 12.14 p charts for Example 12.3

Slide 25 of 37
np Charts
The np chart is a graph of the number of
defectives (or nonconforming units) in a
subgroup. The np chart requires that the
sample size of each subgroup be the same each
time a sample is drawn.
When subgroup sizes are equal, either the p or
np chart can be used. They are essentially the
same chart.
Slide 26 of 37
np Charts (continued)
Some people find the np chart easier to use
because it reflects integer numbers rather
than proportions. The uses for the np chart
are essentially the same as the uses for the p
chart.

np Charts (continued)
-- To compute the control limits on an np chart, the
following formula is used:
--
n p 3 n p (1 p )
-- Example 12.4: np charts in action
- The data is shown on page 368.
- The result is shown in Figure 12.15.
- The chart shows that rating errors are increasing.
Assignable causes should be identified through
investigation.
Figure 12.15 np chart for Example 12.4

Slide 27 of 37
c and u Charts
The c chart is a graph of the number of defects
(nonconformities) per unit. The units must be of
the same sample space; this includes size, height,
length, volume and so on. This means that the
area of opportunity for finding defects must
be the same for each unit. Several individual
unites can comprise the sample but they will be
grouped as if they are one unit of a larger size.
The control limits for the c chart are computed
based on the Poisson distribution.
Slide 28 of 37
c and u Charts (continued)

Like other process charts, the c chart is used to
detect nonrandom events in the life of a
production process. Typical applications of the
c chart include number of flaws in an auto
finish, number of flaws in a standard typed
letter, and number of incorrect responses on a
standardized test.

Slide 29 of 37
c and u Charts (continued)

The u chart is a graph of the average number
of defects per unit. This is contrasted with the
c chart, which shows the actual number of
defects per standardized unit.
The u chart allows for the units sampled to be
different sizes, areas, heights and so on, and
allows for different numbers of units in each
sample space. The uses for the u chart are the
same as the c chart.
The formulas for the c and u charts are
--
c 3 c, u 3 u / n
-- Example 12.5: c and u charts in action
- The data is shown on page 369 and page 370.
- The results are shown in Figure 12.16 and Figure
12.17.
- The process for Pokas appears to be in control.
- The process for Pokas shows a run of five points
below the mean. An assignable cause should be
sought.
Figure 12.16 c chart for Pokas

Figure 12.17 u chart for Yokas

Slide 30 of 37
Other Control Charts

s Chart. The s (standard deviation) chart is
used in place of the R chart when a more
sensitive chart is desired. These charts are
commonly used in semiconductor
production where process dispersion is
watched very closely.
The formulas for the s chart are shown in
Table 12.2.
Table 12.2 Summary of chart formulas

Slide 31 of 37
Other Control Charts (continued)

Moving Average Chart. The moving average
chart is an interesting chart that is used for
monitoring variables and measurement on a
continuous scale.
The chart uses past information to predict
what the next process outcome will be. Using
this chart, we can adjust a process in
anticipation of its going out of control.
Slide 32 of 37
Other Control Charts (continued)

Cusum Chart. The cumulative sum, or
cusum, chart is used to identify slight but
sustained shifts in a universe where there is
no independence between observations.
A Cusum chart looks very different from a
Shewhart process chart as shown in Figure
12.18.

Slide 33 of 37
Figure 12.18 Cusum chart

Slide 34 of 37
Some Control Chart Concepts

Choosing the Correct Control Chart
Obviously, it is key to choose the correct
control chart. Figure 12.19 shows a decision
tree for the basic control charts. This flow
chart helps to show when certain charts
should be selected for use.

Figure 12.19 Process for selecting the right chart

Slide 35 of 37
Some Control Chart Concepts (continued)

Corrective Action. When a process is out of control,
corrective action is needed. Correction action steps
are similar to continuous improvement processes.
They are
1. Carefully identify the problem.
2. Form the correct team to evaluate and solve the
problem.
3. Use structured brainstorming along with fishbone
diagrams or affinity diagrams to identify causes of
the problem.
Slide 36 of 37

Corrective Action (continued)
4. Brainstorm to identify potential solutions to
problems.
5. Eliminate the cause.
6. Restart the process.
7. Document the problem, root causes, and solutions.
8. Communicate the results of the process to all
personnel so that this process becomes reinforced
and ingrained in the operations.
Slide 37 of 37

How Do We Use Control Charts to Continuously
Improve?
One of the goals of the control chart user is to
reduce variation. Over time, as processes are
improved, control limits are recomputed to show
improvements in stability. As upper and lower
control limits get closer and closer together, the
process improving.


How Do We Use Control Charts to Continuously
Improve?
There are two key concepts here:
1. The focus of control charts should be on
continuous improvement and they should be
updated only when there is a change in the process.
2. Control chart limits should be updated only
when there is a change to the process. Otherwise
any changes are unexpected.
-- Tampering with the Process
- One of the cardinal rules of process charts is that you
should never tamper with the process.
- If we make adjustments to a random process, we
actually inject nonrandom activity into the process.
- Figure 12.20 shows a random process.
- Suppose we had decided to adjust the process after the
fourth observation. We would have shifted the process
signaled by out-of-control observations during samples
12 and 19.
Figure 12.20 The effects of tampering

Process Capability
Slide 1 of 4
Process Stability and Capability

Once a process is stable, the next emphasis is to
ensure that the process is capable.
Process capability refers to the ability of a process to
produce a product that meets specifications.
World-class levels of process capability are measured
by parts per million (PPM) defects levels, which
means that for every million pieces produced, only a
small number (less than 100) are defective.

Process Capability
Process Stability and Capability
Six-sigma program such as those pioneered by
Motorola Corporation result in highly capable
processes.
Six sigma is a design program that emphasizes
engineering parts so that they are highly capable.
As shown in Figure 12.21, these processes are
characterized by specifications that +/- 6 standard
deviations from the process mean.
This means that even large shifts in process mean and
dispersion will not result in defective products being
built.
Process Capability
Slide 2 of 4
Six-Sigma Quality (Figure 12.21 in the textbook)

Process Capability
Six-Sigma Quality
-- If a process average is on the center line, a six-
sigma process will result in an average of only 3.4
defect per million units produced.
-- The Taguchi method ( see chapter 7S) is a
valuable tool for achieving six-sigma quality by
helping to develop robust designs that are
insensitive to variation.

Process Capability
Slide 3 of 4
Population Versus Sampling Distributions

To understand process capability we must first
understand the differences between population
and sampling distributions.
Population distributions are distributions
with all the items or observations of interest
to a decision maker.
A population is defined as a collection of all
the items or observations of interest to a
decision maker.
Process Capability
Population Versus Sampling Distributions

A sample is subset of the population.
Sampling distributions are distributions
that reflect the distributions of sample
means.
Sampling distributions are distributions
that reflect the distribution of sample
means.
Population Versus Sampling
Distributions
Population distributions have much more dispersion
than sampling distribution.
As shown in Figure 12.22, student height for this
population is normally distribution, with a mean of 5
feet 8 inches and a distribution ranging from 5 feet to
6 feet 4 inches.
Notice in Figure 12.22 that the mean of the sample (
sample size is 5 and replacement) is still 5 feet 8 inches,
but the distribution ranges only from 5 feet 4 inches to
6 feet.
We see that sampling distributions have much less
dispersion than population distributions.
Distributions
Figure 12.22 Population and sampling distributions
for class heights

Distributions
In the context of quality, specification and capability
are associated with population distributions.
Sample-based process charts and stability are
computed statistically and reflect sampling
distribution.
Quality practitioners should never compare process
chart limits with product specifications.
Specification ( or tolerance) limits are set by design
engineers who establish limits based on the design
requirements for a product.
Process Capability
Capability Studies
-- There are two purposes for performing
process capability studies:
1. To determine whether a process consistently
results in product that meet specifications.
2. To determine whether a process is in need of
monitoring through the use of permanent process
charts.

Capability Studies
There are five steps in performing process

capability studies:
1. Select a critical operation.
2. Take k samples of size n, where x is an
individual observation.
-- where 19 < k < 26
-- if x is an attribute n > 50
-- or if x is a measurement 1 < n < 11
Capability Studies
There are five steps in performing process

capability studies ( continued):
3. Use a trial control chart to see whether the
process is stable.
4. Compare process natural tolerance limits with
specification limits.
5. Compute capability indexes. ( see next slide)

Capability Studies
Compute capability indexes

-- Cpu = ( USL - )/3
-- Cpl = ( - LSL)/3
-- Cpk = min{ Cpu, Cpl}
-- We will say that processes that achieve
capability indexes (Cpk) of 1.25 are capable, 1.33
are highly capable, and 2.0 are world-class ( six
sigma).

Capability Studies
Example 12.6: Process capability

-- Cpu = ( 40 34 ) / (3*3.5) = 0.57
-- Cpl = ( 34 30 ) / (3*3.5) = 0.38
-- Cpk = 0.38
-- The process capability in this case is poor.

Capability Studies
The proportion of nonconforming product is

P ( x 30) P ( x 40)
30 34 40 34
P( z ) P( z )
3.5 3.5
P ( z 1.14) P ( z 1.71)
0.1271 0.0436 0.1707
The probability is shown as Figure 12.23.
This means that on average, more than 17% of
the product produced does not meet
specification.
This is unacceptable in almost any
circumstance.
Capability Studies
Figure 12.23 Proportion of product not conforming

for Example 12.6

Process Capability
Slide 4 of 4
The Difference Between Capability and Stability?

Once again, a process is capable if individual
products consistently meet specifications.
A process is stable if only common variation is
present in the process.
It is possible to have a process that is stable but
not capable.
This would happen where random variation was
very high.
It is probably not so common that an incapable
process would be stable.
Other Statistical Techniques in
Quality Management
Correlation and regression also can be useful tools for
improving quality, particularly in services.
There are other types of data that can be correlated
and regressed to understand the customer.
Figure 12.24 shows there conformance rates and
quality cost were correlated in one company.
Table 12.3 shows that these variables were
significantly and positive related.
The R2 values show the strength of the relationships
between the variables for linear and nonlinear models.
Such correlation is called interlinking.
Quality Management
Figure 12.24 Plot of prevention and appraisal costs
with conformance

Quality Management
Table 12.3 Relationship between conformance and
PA costs

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Chapter 12

Statistically Based Quality

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Statistical thinking is based on three

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In business, decisions need to be made

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Why Do Statistics Sometimes Fail in the

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Reasons for Failure of Statistical Tools

Reasons for Failure of Statistical Tools

Reasons for Failure of Statistical Tools

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Reasons for Failure of Statistical Tools

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Reasons for Failure of Statistical Tools

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What do we mean by the term Statistical

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Understanding Process Variation

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Understanding Process Variation

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Understanding Process Variation

Figure 12.1 Random variation

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Figure 12.2 Nonrandom Variation

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Figure 12.3 Control Chart

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Variables and Attributes

Table 12.1 Variables and Attributes Control Chart

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There are four central requirements for

A Generalized Procedure for Developing

A Generalized Procedure for Developing

A Generalized Procedure for Developing

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Understanding Control Charts

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We want to inspect a sample of sheets to see

Figure 12.4 Hypothesis testing

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To test this hypothesis we draw a sample of n =

With process charts, we place the distribution on

Figure 12.5 process control chart

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The Central Limit Theorem ( CLT) states that

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X-bar and R Charts

X-bar and R Charts

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X-bar and R Charts (continued)

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Figure 12.7 Completed x-bar and R chart

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Figure 12.8 x-bar and R chart calculation work sheet