Session # 17

Operations Management

Operations Management
(Shashank Tilak)

Session no. 17 and 18

Dated: 26/09/2012

Topic: Quality control, Total Quality

control and Inspection and Introduction
and types of control charts

Notes prepared by:

Notes reviewed by:

Saigaurav prabhu-16

Ranjini Ramesh- 55

Harsh shrmali-27

Charanprit bhela- 57

Saikiran nassery-34

Chintan Shah- 51

Kunal nandi-41
Tanvi rane-50
Nikhil kunder-52

Definition of Quality
Control
as
per
APICS
Dictionary
th
12 Edition
Quality control
Process of Measuring
quality conformance
by comparing the
actual with a standard
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Tarun pillai- 60
Faisal memon- 31
Harshita Gupta- 45

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for the characteristic & acting on the difference. In Quality Control the emphasis is as much
on Quality as on control.
The definition when broken down into parts, we can interpret that quality is to be ensured till
the completion of the process i.e. from start to the end, till the time the product is delivered at
the customers doorstep. It also includes the processes to be carried out in the factory and
including the transportation, storage conditions etc. various standards of operations are to be
in place which would define the set of rule and the expectations of output based on these
rules. The acceptable deviation levels should be set and any deviation over and above the
acceptable level occurs, then the situation is to be taken care of. This overall approach helps
the organisation to meet the goals of performance set on the basic level including all relevant
attributes and to keep on improving so that the variation levels are reduced in long run.
Control in a sense is an action. This means ensuring that the product reaches the goal. We
should compare the actual with expected standard value and act on it difference observed
there. Depending on whether its good or bad the quality must be pushed upwards or
downwards. Quality is about ensuring that the entire process is complete. Its not in Letter but
in spirit. Its more about achieving the end result. For doing so there are several steps required;
1) What we should achieve.
2) Ability to detect early hand.
Standards of operation was explained while explaining the making of pipes.
There is always a variation in the input and output. For this he gave an example of a mandrel.
E.g.: A mandrel is a shape around which a soft plastic shape is wrapped. So that it can be
heated and cooled at both ends. The Mandrel then provides the inner shape of the body and
helps to achieve it in a consistent manner. [35mm Diameter and 25mm Flat surface] Some
attributes may or may not be relevant, where as in a mandrels case it requires the diam and
flat surface to be 35mm & 25mm only. Because in the basic process itself the diam would
always have a + or 0.1 variation. Conditions would be different each time. If we want it to
heat it to at 300 deg there is a chance the temp may vary a bit. Therefore we have to make
sure that the variation is reduced to lowest.
E.g.1:- the Lays pack should be fresh and chips should not have crumbled until it reaches the
customer, the handling should be done in a way that it doesnt lose its Air filled and the chips
inside should not get crumbled. The expiry of the product should be mentioned so that the
ultimate end user doesnt consume the expired product and get prone to various diseases.
E.g 2.:- a frying pan used in kitchen should actually be non-sticky and easy to handle else its
purpose is not getting solved in the hands of the customer. Quality should be based on the
expectations of the end user and only then it will serve its purpose and the customer will like
the product.
Quality has to be defined at very minute level as when a defect is found in the product, the
reason for the same can be any single / multiple parameter(s) at any stage and even a small
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defect will create a block in the minds of customer and ultimately will affect its sales. E.g.: a
small defect of cutting a shirt component will lead to the defective shirt and if bought by the
customer, will result in loss of customer as after that defective shirt, customer will look for its
requirements in another brand and not turn back the your brand. The different parameter on
which the quality matters is the value, product, usability, manufacturing process and the
transcendental stage where the product becomes the premium product.
Any Acceptable quality for a given price is known as value based stage. This can be
explained by the following;
In a given market, there already are several markets. In a 2 or a 4 wheeler market there are
customers who prefer a Maruti 800, which is an entry level car. People want transportation
but at a low cost. This is A segment. Then there are people who dont mind paying for
comfort. Here he might select a Maruti sX4. They fall in the B-Segment. Now people prefer
cars that are 2000cc like the Mahindra XUV500 , Innova etc. They go for the Robust looks
and sturdy quality. This is the C-segment. After this comes the luxury segment where people
buy the elite cars like Mercedes, Bmw, Audi etc. What value am I adding? What reliability am
i expecting? Depending on my capability to spend i attach a price. This is because i am
looking at various attributes. This is essentially a customer-consumer base.
Next is Manufacturing base. It is also called as Quality of Conformancets. This is mostly
based on requirements. A user Base focuses mainly on the USES. E.g- Azim Premjis fFord
Escort. This is more of practical use. In a product base, we look for more convenience, better
usability, better Features etc. .E.g Smartphone being better than a Nokia. The product base
generally fits a variety of users. Last is the Transcendent base which is the idea base. It has
nirvana quality. There cant be anything better than it.
Quality standards are too upgraded from time to time. Based on the current requirements, the
products should increase its quality focus and standards. E.g.: Earlier in a TV only black and
white colours were available and now various features such as LED, HDMI, and USB
Connectivity etc. are demanded. If your brand doesnt offer these features then customer
switches to other brands. Quality for the customer doesnt only mean for the end user but it
also includes for the next process as it is defined at the minute level and every stage has equal
importance.
Strategic role of quality has 3 typesitself may be driven by any of the following three goals
1) Quality
2) Cost
3) Services
For each role there is a certain hygiene level below which you cannot go. But a company
will choose which one should be the priority. Generally Japanese give Quality as their top
priority. In India Taj hotel gives Super services so their priority is Services. E.g. A Guy
goes to Hilton Hotel and gets picked up by a car sent from Hilton. While getting off he
realises his Coat is stolen. The Doorman then asks the cost of the coat to which the guy

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says 40$. The Doorman then walks him to the cashier and gives him 40$. Later when the
guy goes back to his room he finds his coat hanging. So he goes back and pays the 40$
and says that he would always stay at the Hilton.
Though Quality is a crucial part of the product, the cost of maintaining such quality is also as
important as the first.. E.g.: maintaining high quality standards of a stove lighter will increase
its cost and then there would be no buyer to buy it at Rs. 500 when the alternative is available
in Rs 30. For these classes of product this is generally either quality at an acceptable value
cost OR it may be quality as required in given market segment. Any cost incurred towards
monitoring & controlling is the cost of appraisal. Even the cost of inspection is included.
To reduce such costs and still maintain quality acceptable in market is a difficult task for the
manufacturing company but to survive in the market it has to be done. Reduction of costs can
be done by identifying the non-value processes and which can be removed or altered to
produce more economically. The actions required to reach the effective quality control actions
are, companywide arrangement, employee empowerment, engaging world class suppliers and
adapting preventions oriented processes.
In case of Quality and Market share, The A-level cars have a huge market and having a huge
market share is quite important. In B and C-level the market shrinks. How much they sell
depends on the competitors, market size etc. This will be true in any market segment. But a
successful company will sell their products in larger numbers and at higher profits. The
higher profits may very well come through due to more efficient operations lower costs. Or
it may be possible due to more effective operations faster, more focused products at quicker
rate and ones where customer is willing to pay a premium due to better quality. It is also not a
surprise if the more effective operation also results in lesser costs. This results in a double
benefit for the organization this higher quality will result in customer preference and higher
price and at the same time more effective operation will mean lower costs. Thus such higher
quality focus will bring in a strategic advantage by way of better customer hold as well as
higher profitability.
Customer is any one impacted by the product / process of the company. It can be internal
customer (next process person) or an external customer (end user). Customer satisfaction is
only achieved through features of the product and delivering a product free from defects.
Depending on the product, factors taken into consideration are service, management,
technology , quality etc. Consistency in the performance is the key to customer satisfaction.
4 perspective of quality
Marketing: market specifies the parameters and the segment it caters to for deciding how the
product should be like.
Design: the design should be acceptable by the customer. E.g.: a financial newspaper is
usually expected to have news related to trade and commerce as well as any closely linked
(economic & other) environmental issues. It may or may not have issues of social or even
educational significance.
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Product: product itself should have its USP so that the customer is retained and the customer
is satisfied. The product will also be identified due to its features, uniqueness, consistency etc.
Service: after the sales of the product, the service such as helpline no. schedules maintenance,
operating procedure on how to resolve any issues must be established in any company.
Service is also in terms of availability of product, ability of manufacturer / supplier to adhere
to given schedules, any changes there and avoiding any kind of unpleasant surprises.

Variations and End Effect

Variations should not be the same every time they occur, if they occur then it means that the
earlier variations root cause was not identified and not rectified. The variations may result in
the change by way of dimensions, characteristics, function and data of the product. E.g.: the
chair used to sit, if the product has undergone certain variations, so the chair may not be fit to
sit, or it may not be able to stand stable and may make the person fall. For effective process
management, the variations must be traced back to root and the root cause as identified must
be rectified. The rectification must be done in time and have to be ensured that the variation is
always in the limits. E.g.: the soft drink bottle filled should be always in the limits and should
not be over or under the required level. If under, then customer is dissatisfied and if it is filled
over then it is a loss to producer.
Process variation occurs due to 7 Ms namely, management, machine, material, milieu,
methods, manpower and measurement. The management may or may not focus on its
objectives and may not intervene whenever required as a result it may affect the product
output, machine may go wrong and not function in time and in desired manner, material may
not be in place when required, milieu(environment) may not be favourable to the product (in
case of cement bags like in rainy time), methods the method of carrying the cement bags
while transporting by the labours, and it may create a hole in the bag ultimately leading to
loss of material from that hole, manpower the labour may not pack the products in a proper
manner (Bisleri / mineral bottle) and it may leak while in transit, measurement the required
quantity of product as required by the customer should be delivered E.g.: in a chemical
factory certain chemicals like Sulphur are required only in the said quantity and if not
delivered in the same quantity then this is called as the variation in the product.
In order to meet the requirements, Japanese have come up with a concept of TQM (Total
Quality Management). It is defined as TQM is a management approach to long term success
through customer satisfaction. TQM is based on the participation of all the members of an
organization in improving processes, goods, services and the culture in which they work.
TQM emphasizes on the customer needs and value delivery of the product. All the systems in
organization should lead to this goal and the tools are to be used to understand and overcome
constraints.
Variation wherever should be reduced. The variation as and when reduced improves the
quality of the product and in turn will help satisfaction of the customer. Variation in any
performance (process) is undesirable by the customer as it reduces the ability of the product
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and to rectify the defect (variation) the plan and control over the process is reduced, increases
process steps and activities and reduces its reliability. The customer faces risk (E.g.: if a wire
is not properly concealed with plastic outside, the customer is in high risk to use it. The
product will need more inspection, monitoring and control; it requires more material and
inventory, time and all resulting in cost increment. The product in such defective condition is
of no use to the customer and it in turn increases his costs and he has to buy another product
again. As a result it requires additional work for everyone, be it customer or the
manufacturing unit, or the transporter as the case may be.
Variations are of two types.
Special Causes and Common causes.
Special causes: the causes which lead to the unpredictable changes, process distribution,
continue to affect the output till the time it is not identified and rectified and creates an
unstable process are termed as Special causes. E.g.: the expectation of unsupported hardware
or software of computers will not work in the year 2000 as was an unpredicted change and it
affected the whole IT world in an unstable moment. It was a panic situation for everyone till
the time software and hardware was checked and corrected and year shifted to 2000 in a
smooth manner and IT world was working all fine.
Common causes: the causes which behave like a stable system of chance, results from
numerous uncontrollable everyday factors and produces predictable output is called as
common causes. E.g.: the electricity outage in the factory is a constant cause in the rural
region and so the steps to avoid the interruption can be taken by installing a diesel generator
at the plant.
Inspection and quality control can also be done through statistical quality control (SQC). The
steps to be followed in a SQC are represented below in a pictographic view.

SQC

Inspection

Attributes

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Variables

Process

Attributes

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To trace the variation simple statistical control can be adapted. As per statistical control, the
sample should be checked rather than the whole lot. This is helpful in the case of the company
which manufactures large number of products in a single batch. So to check the sample of a
batch is easier rather than to check the entire batch. The defect has to be identified after
production of the whole product of a part of it but before the product reaches the customer. In
this method, two types of acceptance methods are used attributes (Y/N) and variables such
as quantitative, continuous variation, upper / lower limits and range of values. The attributes
method can be such as creating a checklist and making the inspector to check on the
parameters whichever the product satisfies. In case of variable method, the sheet can be more
descriptive for the inspector to check the product properly and fill the inspected / observed
values in the sheet and finally the values to be matched with the acceptable output. This
procedure helps to predict the possible behaviour. The parameter of upper and lower limits is
shown below in the pictographic manner

Upper Limit

Lower Limit

Disadvantages of Inspection:
Variation arises and inspection on the same is carried over to identify the cause and rectify the
variation. This policy helps in keeping customer satisfied but there are disadvantages too of
this policy. The disadvantages are as follows:
Primarily the action is taken after a defective product is produced. Hence losses associated
with such bad quality product have already been suffered.

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Wrong message: the labours here feel that the management is playing a game of cops and
robbers due to this identification. The management has to rectify the variation and the
labourers get irritated in explaining them their innocence. This passes a wrong message
amongst the employees in two forms. In the first place, employees know that some mistakes
are expected and they will not have any responsibility for such mistakes. Secondly, the
responsibility of production workers is only for production (which includes such mistakes and
possibility that a defective product is produced). Responsibility for identification and
segregation of defects is on inspection. Hence even if some defective products are produced,
it will be up to inspection team to identify and separate them.. It also possesses high risk that
something out of the process may slip and may again create another variation for the product.
Since the time involved in the identification and rectification is wasted, management cannot
devote time to improve its process and define new levels of advancement in the product stage.
Inaccurate identification of the variation like suppose the product is fault free but still due to
some inaccurate understanding it is identified as a faulty product then identification and
rectification of the same will make company commit a lot of omission in their current process
and the loss is considered as a commission charged over the wrong identification.

Process

Good

Rejection

Inspect

Inputs

Process

Output Product

Basis of Statistical Process Control

The points which influence the statistical process control are listed below.

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1) The quality of the product has to be in conformity with the specifications as decided by the
management based on the customers needs.
2) Processes cause the products to vary from each other.
3) Variation in processes and products can be measured with the cost incurred.
4)Common cause variations produce measurements that follow a predictable pattern. Like in
case of electrical outage in the above example, a trend based on past experience can be drawn
and then the possible solution for the same can be found out.
5) Special cause variation disrupts the predictable pattern. E.g.: in case of occurrence of
earthquake the processes will get disrupted and this cannot be predicted.
6) Causes of variation can be isolated and identified and in return can be corrected / rectified
but there are costs associated in the same.

Introduction and types of control charts

Definition and application:
Control charts forms a group of methods providing visual representation of
progress and variations in maintaining progress of quality efforts. It helps
in the evaluation of % with various qualities present
Quality control charts try to bring out the quality analysis and the true
picture of a performance. It can be utilised for the corrective actions
needed for both the individual and also in batch process. It can be used to
identify the few vital factors which is either positive or negative for the
production process. It helps in identifying whether the current process
under analysis is stable or not and also to identify the factors that can be
taken as a corrective measure to bring the process under control.
MAJOR ASSIGNABLE CAUSES
The uses of a control chart can be applied over a single machine, worker
or a group.

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In case of workers the skill of an individual adds up to the quality of a

product.
In batch production of a material for example- 6 cars of same brand of six
individuals may give different mileage to each of the individual. The
variation in such a case can be studied using a suitable control chart.
The observation can be done in an individual group or collectively.
Variations can be studied under the observations.
Variations due to special causes are

localised in nature

exceptions to the system

considered abnormalities

often specific to a
o certain operator
o certain machine
o certain batch of material, etc.

Investigation and removal of variations due to special causes are key to

process improvement. By such variations the common cause or the special
cause can be found out in the process.

Control charts, also known as Shewhart charts or process-behaviour

charts, in statistical process control are tools used to determine if a
manufacturing or business process is in a state of statistical control.
Chart details
A control chart consists of:

Points representing a statistic (e.g., a mean, range, proportion) of

measurements of a quality characteristic in samples taken from the
process at different times.

The mean of this statistic using all the samples is calculated (e.g.,
the mean of the means, mean of the ranges, mean of the proportions)

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A centre line is drawn at the value of the mean of the statistic

The standard error (e.g., standard deviation/sqrt(n) for the mean) of

the statistic is also calculated using all the samples

Upper and lower control limits (sometimes called "natural process

limits") that indicate the threshold at which the process output is
considered statistically 'unlikely' and are drawn typically at 3 standard
errors from the centre line.

The purpose of control charts is to allow simple detection of events that

are indicative of actual process change. This simple decision can be
difficult where the process characteristic is continuously varying; the
control chart provides statistically objective criteria of change. When
change is detected and considered good its cause should be identified and
possibly become the new way of working, where the change is bad then
its cause should be identified and eliminated.
Control charts quantify the routine variation in a process, so that special causes
can be identified. One way control charts filter out routine variation is by
applying control limits. Control limits define the range of process measurements
for a process that is exhibiting only routine variation. Measurements between the
control limits indicate a stable and predictable process. Measurements outside
the limits indicate a special cause, and action should be taken to restore the
process to a state of control.

Why to use control charts?

Monitor process variation over time.
Differentiate between special cause and common cause variation.
Assess the effectiveness of changes to improve a process.
Communicate how a process performed during a specific period.
Help you recognize and understand variability and how to control it.
Identify special causes of variation and changes in performance.
Keep you from fixing a process that is varying randomly within control.
limits; that is, nospecial causes are present.
If you want to improve it, you have to objectively identify and eliminate
the root causes of the process variation.
Assist in the diagnosis of process problems.

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Determine if process improvement effects are having the desired affects.

Steps in application of a control chart:

Selection of a specific attribute with respect to its Physical characteristics
in terms of
Dimensions: Length, distance, etc.
Properties: Strength, hardness, its uniqueness, etc.
Appearance: Colour, or is it rough or smooth which would determine its
smoothness in the process.
Temperature: Scale, value, etc.
Chemical or Analytical value:
Purity: In this the quality aspect is very crucial as it would determine the
purity of it.
Other Qualities: Range of possibilities.
Reasons for Variation:
All physical processes have a range of inputs and their inherent conditions
e.g. in a production setup, it would contain the raw materials in the
process.
Operating conditions: time, temperature, etc. It takes into account the
time required for the process and the conditions and the temperature it is
operating in. It also includes the equipment characteristics particularly
about dimensions of the reaction chamber, location of products etc. In
addition there may be further variations by way of wear and tear of
different components and how it affects overall process of manufacturing.
Type of Production: Batch/Continuous
Batch: In batch production, there is a large group of products, located at
different points and variation between batches. E.g. Pharmaceutical
products or in case of heat treatment or other processes, parts located at
different points within the chamber will have different process
characteristics.
Continuous Production: Conditions Day/Night and over a period of time
the performance of the equipment deteriorates.

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Application of Control Charts:

Visual representation of statistical data which is systematic and depicted
in an easy mode to understand the graphs better. This representation is
easy to grasp for even the most illiterate and un initiated person. Hence it
is easy to convey type and extent of different problems and opportunities
for improvement. For grassroots team it is easy to correlate any changes
in output with changes they may notice in operating conditions. Thus it is
much easy to achieve better understanding and coordination for making
improvement.
Comparison with historical records i.e. Mean, Range 0f Variations - By
standard deviation formula.
Highlighting unexpected variations, identification of random and
assignable values.
Assessment of Risk Trapping defectives.

Control Charts

Control Charts are of 3 types:

1. X-Bar ( ) and Range Chart (R)
2. p-Chart
3. c-Chart

X-Bar ( ) and Range Chart (R)

In X-bar chart, the sample means are plotted in order to control the mean
value of a variable. Whereas In R chart, the sample ranges are plotted in
order to control the variability of a variable.
The chart actually consists of a pair of charts: One to monitor
the process standard deviation (as approximated by the
sample moving range) and another to monitor the process
mean.
In this chart the process Standard Deviation is approximated
by Range.
The range of the quality characteristic across all units in the
sample as follows:
R = Smax - Smin

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The chart is advantageous in following situationsi. The sample size is relatively small i.e. it is <=10.
ii.
The sample size is constant.
iii.
The quality characteristic to be monitored is
adequately modeled by a normally distributed
random variable.
iv.
The calculations of the chart can be done individually
i.e. humans can carry out the calculations.
v. Mean and Standard Deviation for process are same.
vi.
The inspection procedure is same for each sample
and is carried out consistently from sample to
sample.
p Chart
p represent Fraction Defective in Sample.
p chart is sensitive to change i.e. if there is change in fraction
then there is defect in the output in the measurement process.
There are two types of control limits:
i. Upper Control Limit (UCL)
ii.
Lower Control Limit (LCL)
The control limits are calculated as :
UCL = p+3*
LCL = p-3*
Where = p(1-p)/n
p chart is used to determine Pass / Fail / GO / NO GO
Acceptance Condition.
It is based on Binomial Distribution.
The probability of Failure is same in either cases.
It is independent of the previous or the next part.
c Chart
In this chart, we plot the number of defects in one unit where
one unit can have more than one defect.
Defects can be tracked by Type or Location which can prove
helpful in tracking down assignable causes.
The control limits in this chart are computed based on the
Poisson distribution.
The number of opportunities or potential locations for
nonconformities is very large
The probability of defects at any location is small and constant
The inspection procedure is same for each sample and is
carried out consistently from sample to sample.
For controlling quality characteristics that represent attributes of the product, the
following charts are commonly constructed:

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C chart. In this chart (see example below), we plot the number of

defectives (per batch, per day, per machine, per 100 feet of pipe, etc.).
This chart assumes that defects of the quality attribute are rare, and the
control limits in this chart are computed based on the Poisson distribution
U chart. In this chart we plot the rate of defectives, that is, the number of
defectives divided by the number of units inspected (the n; e.g., feet of
pipe, number of batches). Unlike the C chart, this chart does not require a
constant number of units, and it can be used, for example, when the
batches (samples) are of different sizes.
Np chart. In this chart, we plot the number of defectives (per batch, per
day, per machine) as in the C chart. However, the control limits in this
chart are not based on the distribution of rare events, but rather on the
binomial distribution. Therefore, this chart should be used if the
occurrence of defectives is not rare (e.g., they occur in more than 5% of
the units inspected). For example, we may use this chart to control the
number of units produced with minor flaws.
P chart. In this chart, we plot the per cent of defectives (per batch, per
day, per machine, etc.) as in the U chart. However, the control limits in
this chart are not based on the distribution of rare events but rather on
the binomial distribution (of proportions). Therefore, this chart is most
applicable to situations where the occurrence of defectives is not rare
(e.g., we expect the per cent of defectives to be more than 5% of the total
number of units produced).
Short Run Control Charts
The short run control chart, or control chart for short production runs, plots
observations of variables or attributes for multiple parts on the same
chart. Short run control charts were developed to address the requirement
that several dozen measurements of a process must be collected before
control limits are calculated. Meeting this requirement is often difficult for
operations that produce a limited number of a particular part during a
production run.
For example, a paper mill may produce only three or four (huge) rolls of a
particular kind of paper (i.e., part) and then shift production to another
kind of paper. But if variables, such as paper thickness, or attributes, such
as blemishes, are monitored for several dozen rolls of paper of, say, a
dozen different kinds, control limits for thickness and blemishes could be
calculated for the transformed (within the short production run) variable
values of interest. Specifically, these transformations will rescale the
variable values of interest such that they are of compatible magnitudes
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across the different short production runs (or parts). The control limits
computed for those transformed values could then be applied in
monitoring thickness, and blemishes, regardless of the types of paper
(parts) being produced. Statistical process control procedures could be
used to determine if the production process is in control, to monitor
continuing production, and to establish procedures for continuous quality
improvement.
Short Run Charts for Variables
Nominal chart, target chart. There are several different types of short
run charts. The most basic are the nominal short run chart, and the target
short run chart. In these charts, the measurements for each part are
transformed by subtracting a part-specific constant. These constants can
either be the nominal values for the respective parts (nominal short run
chart), or they can be target values computed from the (historical) means
for each part (Target X-bar and R chart). For example, the diameters of
piston bores for different engine blocks produced in a factory can only be
meaningfully compared (for determining the consistency of bore sizes) if
the mean differences between bore diameters for different sized engines
are first removed. The nominal or target short run chart makes such
comparisons possible. Note that for the nominal or target chart it is
assumed that the variability across parts is identical, so that control limits
based on a common estimate of the process sigma are applicable.
Standardized short run chart. If the variability of the process for
different parts cannot be assumed to be identical, then a further
transformation is necessary before the sample means for different parts
can be plotted in the same chart. Specifically, in the standardized short
run chart the plot points are further transformed by dividing the deviations
of sample means from part means (or nominal or target values for parts)
by part-specific constants that are proportional to the variability for the
respective parts. For example, for the short run X-bar and R chart, the plot
points (that are shown in the X-bar chart) are computed by first
subtracting from each sample mean a part specific constant (e.g., the
respective part mean, or nominal value for the respective part), and then
dividing the difference by another constant, for example, by the average
range for the respective chart. These transformations will result in
comparable scales for the sample means for different parts.
Unequal Sample Sizes
When the samples plotted in the control chart are not of equal size, then
the control limits around the centre line (target specification) cannot be

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Operations Management

represented by a straight line. For example, to return to the

formula Sigma/Square Root(n) presented earlier for computing control
limits for the X-bar chart, it is obvious that unequal n's will lead to different
control limits for different sample sizes. There are three ways of dealing
with this situation.
Average sample size. If you want to maintain the straight-line control
limits (e.g., to make the chart easier to read and easier to use in
presentations), then you can compute the average n per sample across all
samples, and establish the control limits based on the average sample
size. This procedure is not "exact," however, as long as the sample sizes
are reasonably similar to each other, this procedure is quite adequate.
Variable control limits. Alternatively, you may compute different control
limits for each sample, based on the respective sample sizes. This
procedure will lead to variable control limits, and result in step-chart like
control lines in the plot. This procedure ensures that the correct control
limits are computed for each sample. However, you lose the simplicity of
straight-line control limits.
Stabilized (normalized) chart. The best of two worlds (straight line
control limits that are accurate) can be accomplished by standardizing the
quantity to be controlled (mean, proportion, etc.) according to units
of sigma. The control limits can then be expressed in straight lines, while
the location of the sample points in the plot depends not only on the
characteristic to be controlled, but also on the respective sample n's. The
disadvantage of this procedure is that the values on the vertical (Y) axis in
the control chart are in terms of sigma rather than the original units of
measurement, and therefore, those numbers cannot be taken at face
value (e.g., a sample with a value of 3 is 3 times sigma away from
specifications; in order to express the value of this sample in terms of the
original units of measurement, we need to perform some computations to
convert this number back).

Control Charts for Variables vs. Charts for Attributes

Sometimes, the quality control engineer has a choice between variable
control charts and attributes control charts.

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Operations Management

Advantages of attribute control charts. Attribute control charts have

the advantage of allowing for quick summaries of various aspects of the
quality of a product, that is, the engineer may simply classify products as
acceptable or unacceptable, based on various quality criteria. Thus,
attribute charts sometimes bypass the need for expensive, precise devices
and time-consuming measurement procedures. Also, this type of chart
tends to be more easily understood by managers unfamiliar with quality
control procedures; therefore, it may provide more persuasive (to
management) evidence of quality problems.
Advantages of variable control charts. Variable control charts are
more sensitive than attribute control charts. Therefore, variable control
charts may alert us to quality problems before any actual "unacceptables"
(as detected by the attribute chart) will occur. Montgomery (1985) calls
the variable control charts leading indicators of trouble that will sound an
alarm before the number of rejects (scrap) increases in the production
process.

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