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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

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.

2001 Prentice-Hall Transparency 12-3

Statistical Fundamentals

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 Fundamentals

concepts:

. All work occurs in a system of interconnected

process.

. All processes have variation.

. Understanding variation and reducing variation

are important keys to success.

Statistical Fundamentals

based on data.

Statistical thinking guides us to make

decisions based on the analysis of data ( see

Quality Highlight 12.1)

Statistical Fundamentals

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.

Statistical Fundamentals

Slide 2 of 8

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.

2001 Prentice-Hall Transparency 12-8

Statistical Fundamentals

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.

2001 Prentice-Hall Transparency 12-9

Statistical Fundamentals

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.

Statistical Fundamentals

(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.

Statistical Fundamentals

(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.

2001 Prentice-Hall Transparency 12-13

Statistical Fundamentals

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.

Statistical Fundamentals

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.

Statistical Fundamentals

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.

Statistical Fundamentals

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.

2001 Prentice-Hall Transparency 12-17

Statistical Fundamentals

Understanding Process Variation

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.

2001 Prentice-Hall Transparency 12-18

Statistical Fundamentals

Statistical Fundamentals

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.

2001 Prentice-Hall Transparency 12-20

Statistical Fundamentals

Statistical Fundamentals

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.

Statistical Fundamentals

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.

Statistical Fundamentals

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.

2001 Prentice-Hall Transparency 12-24

Statistical Fundamentals

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.

2001 Prentice-Hall Transparency 12-25

Statistical Fundamentals

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.

Statistical Fundamentals

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.

Statistical Fundamentals

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.

Statistical Fundamentals

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.

2001 Prentice-Hall Transparency 12-29

Process Control Charts

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.

Process Control Charts

Slide 2 of 37

Process Control Charts

Slide 3 of 37

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.

2001 Prentice-Hall Transparency 12-32

Process Control Charts

Slide 4 of 37

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)

Process Control Charts

Slide 5 of 37

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.

2001 Prentice-Hall Transparency 12-34

Process Control Charts

Slide 6 of 37

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.

2001 Prentice-Hall Transparency 12-35

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-36

Process Control Charts

Slide 8 of 37

Process Charts (continued)

6. Update the limits when changes have been

made to the process.

Process Control Charts

Slide 9 of 37

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.

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-39

Process Control Charts

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-41

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-42

Process Control Charts

Process Control Charts

when we plot the sample means, the

distribution approximates a normal

distribution.

Process Control 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.

2001 Prentice-Hall Transparency 12-45

Process Control Charts

Slide 10 of 37

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.

Process Control Charts

Slide 11 of 37

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.

2001 Prentice-Hall Transparency 12-47

Process Control Charts

Slide 12 of 37 Figure 12.6 X-bar and R Charts

Process Control 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).

2001 Prentice-Hall Transparency 12-49

Process Control Charts

Process Control Charts

Process Control Charts

data

Process Control Charts

Slide 13 of 37

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.

2001 Prentice-Hall Transparency 12-53

Process Control Charts

investigation

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-55

Process Control Charts

Slide 18 of 37

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.

2001 Prentice-Hall Transparency 12-56

Process Control Charts

discovered, corrective action can be taken to

eliminate the cause.

The process is than restart and people return to

work.

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-58

Process Control Charts

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.

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-60

Process Control Charts

Process Control Charts

Slide 19 of 37

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.

2001 Prentice-Hall Transparency 12-62

Process Control Charts

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.

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-64

Process Control Charts

Slide 22 of 37

Process Control Charts

Population Data (continued)

-- 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.

Process Control Charts

Population Data (continued)

-- This natural variation can be compared with

specification limits.

-- Strictly speaking, X chart limits are not control

limits; they are natural limits.

Process Control Charts

Population Data (continued)

-- 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

Appendix).

Process Control Charts

Population Data (continued)

-- The formula for the MR chart is similar to that

for the R chart ( where n = 2).

--

UCLMR D4 ( MR), LCLMR D3 ( MR )

Process Control Charts

-- 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.

Process Control Charts

Process Control Charts

Slide 23 of 37

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.

2001 Prentice-Hall Transparency 12-72

Process Control Charts

Slide 24 of 37

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.

2001 Prentice-Hall Transparency 12-73

Process Control Charts

-- 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.

2001 Prentice-Hall Transparency 12-74

Process Control Charts

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-76

Process Control Charts

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.

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-78

Process Control Charts

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-80

Process Control Charts

Slide 28 of 37

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.

Process Control Charts

Slide 29 of 37

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.

2001 Prentice-Hall Transparency 12-82

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-83

Process Control Charts

Process Control Charts

Process Control Charts

Slide 30 of 37

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.

2001 Prentice-Hall Transparency 12-86

Process Control Charts

Process Control Charts

Slide 31 of 37

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.

2001 Prentice-Hall Transparency 12-88

Process Control Charts

Slide 32 of 37

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.

Process Control Charts

Slide 33 of 37

Process Control Charts

Slide 34 of 37

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.

Process Control Charts

Process Control Charts

Slide 35 of 37

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.

2001 Prentice-Hall Transparency 12-93

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-94

Process Control Charts

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.

Process Control Charts

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.

2001 Prentice-Hall Transparency 12-96

Process Control Charts

Some Control Chart Concepts (continued)

-- 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.

2001 Prentice-Hall Transparency 12-97

Process Control Charts

Process Capability

Slide 1 of 4

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.

2001 Prentice-Hall Transparency 12-100

Process Capability

Slide 2 of 4

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

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.

2001 Prentice-Hall Transparency 12-103

Process Capability

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.

2001 Prentice-Hall Transparency 12-104

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.

2001 Prentice-Hall Transparency 12-105

Population Versus Sampling

Distributions

Figure 12.22 Population and sampling distributions

for class heights

Population Versus Sampling

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.

2001 Prentice-Hall Transparency 12-107

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

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

2001 Prentice-Hall Transparency 12-109

Capability Studies

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

-- 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

-- 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

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.

2001 Prentice-Hall Transparency 12-113

Capability Studies

for Example 12.6

Process Capability

Slide 4 of 4

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.

2001 Prentice-Hall Transparency 12-115

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.

2001 Prentice-Hall Transparency 12-116

Other Statistical Techniques in

Quality Management

Figure 12.24 Plot of prevention and appraisal costs

with conformance

Other Statistical Techniques in

Quality Management

Table 12.3 Relationship between conformance and

PA costs

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