Statistical Process Control

Relating Applied Statistics to Quality Control

Contents

 Introduction to Statistics

 Descriptive Analysis

 Inferential Analysis

 Statistical Quality Control

 Descriptive Statistics

 Statistical Process Control (SPC)

 SPC: 7 Basic Quality Tools

 Acceptance Sampling
Introduction to Statistics
The Nature of Statistics and the Collection of Data
What is Statistics?
A branch of mathematics used
to summarize, analyze, and
interpret a group of numbers or
observations
Descriptive Statistics
Procedures used to summarize, organize, and make sense of a set of scores
or observations
Typically presented graphically, in tabular form (in tables), or as summary
statistics (single values)
Inferential Statistics
Procedures used that allow researchers to infer or generalize observations
made with samples to the larger population from which they were selected
Before we go…
Which type of tables, graphs,
and summary measures to use
with our data?

Data
Measurements or observations
that are typically numeric

Datum = raw score

(a single measurement or observation)
Data Concepts
Sources of Data

Observational
Internal vs. Elementary Experiment
Study (Survey)
External Units &
Data Variables

Qualitative
Population vs.
vs. Sample Quantitative Sample
Census
Variables Survey
Why Sampling?

Reducing cost of
collecting and processing
data

Sampling can provide Census is physically

more accurate data than impossible
a census

Census is senseless
Sampling can provide whenever the acquisition
more detailed of the desired
information than a information destroys the
census elementary units of
interest

Census is senseless
whenever it produces
information that comes
too late
 Samples Types & Errors
Sampling
Techniques

Probability Non-Probability

Simple
Systematic Stratified Cluster
Random

Convenience Judgmental Quota

Probability Sampling
Simple Random Sample Systematic Sampling

Stratified Sampling Cluster Sampling

Non-Probability Sampling

Convenience Most Easy Most Dangerous

Most convenient based on

researcher judgment Judgmental

Researcher selects people

Quota according to some fixed quota
Sampling Error

 Random Error: arise from

random fluctuations in

the measurements

 Systematic Error (Bias):

consistent and repeatable

(constant offset)
Variable Data Types

Qualitative = Quality Quantitative = Quantity

(Categorical Variables) (Numeric Variables)
Levels of Measurement

Variable Data

Qualitative Type
Quantitative
(Categorical)

Nominal Measurement
Ratio
(no natural Ordinal Interval Level
(there is a true
order between (ordering) (no true zero)
zero)
the categories)
continuous data where the differences (intervals)
between the numbers are comparable

Discrete Continuous
(variable takes on a limited (variables can take on tiniest
number of outcomes) fractional values)
Minitab 16 Software
A statistical software used to
analyze data

o Calculating basic statistics

o Graphing data

o Running hypothesis tests

Starting Minitab 16
Minitab Interface
Opening a Worksheet
Descriptive Statistics
The Effective Presentation of Data
The Presentation of Data
Tables & Graphs

Tables Graphs

Absolute Frequency Frequency

Distribution Histograms

Relative Frequency Bar & Column Charts

Distribution

Cumulative Frequency Line Graphs

Distribution

Pie Charts

Stem-&-Leaf
Diagrams

Box-&-Whisker
Diagrams
Absolute Frequency
Distribution
Absolute Class Frequency (number of companies in class)
Class (size of profit in
million of dollars) Tally Count

-1,500 to under 0 ||| 3

0 to under 500 ||||||||||||||||||||||||||||||||| 41

500 to under 1,000 |||||||||||||||||||||||||| 32

1,000 to under 1,500 |||||||| 9

1,500 to under 2,000 ||||| 6

2,000 to under 2,500 ||||| 6

2,500 to under 5,500 ||| 3

Total 100
Relative Frequency
Distribution
Class (size of profit in
million of dollars)
-1,500 to under 0
0 to under 500
500 to under 1,000
1,000 to under 1,500
1,500 to under 2,000
2,000 to under 2,500
2,500 to under 5,500
Total
Absolute Class Frequency Relative Class Frequency
(number of companies in (proportion of all
class) companies in class)
3 .03
41 .41
32 .32
9 .09
6 .06
6 .06
3 .03
100 1.00
Cumulative Frequency
Distribution
Cumulative Absolute Cumulative Relative
Absolute Class Relative Class
Class Frequency Class Frequency
Frequency (number Frequency
(number of (proportion of all
of companies in (proportion of all
Class (size of profit companies in class or companies in class or
class) companies in class)
in million of dollars) lower ones) lower ones)
-1,500 to under 0 3 3 .03 .03

0 to under 500 41 3 + 41 = 44 .41 .03 + .41 = .44

500 to under 1,000 32 44 + 32 = 76 .32 .44 + .32 = .76

1,000 to under 1,500 9 76 + 9 = 85 .09 .76 + .09 = .85

1,500 to under 2,000 6 85 + 6 = 91 .06 .85 + .06 = .91

2,000 to under 2,500 6 91 + 6 = 97 .06 .91 + .06 = .97

2,500 to under 5,500 3 97 + 3 = 100 .03 .97 + .03 = 1.00

Producing Frequency Table
The Frequency Histogram
Absolute or relative class frequencies are
represented by bars (vertical rectangular areas)
The Frequency Polygon
A graphical device for understanding the shapes of
distributions - A good choice for displaying
cumulative frequency distributions
Bar & Column Charts
A chart with rectangular bars with lengths
proportional to the values that they represent.
The bars can be plotted vertically or
horizontally.
Histograms vs. Bar Graphs
Line Graph
A graph that shows information
that is connected in some way
(such as change over time)
Pie Chart
A special chart that uses "pie slices"
to show relative sizes of data
Stem-&-Leaf Diagram
A special table where each data value is split
into a "leaf" (usually the last digit) and a "stem"
(the other digits)
Box-&-Whisker Diagram (Boxplot)
A way of summarizing a set of data measured on
an interval scale - used to show the shape of the
distribution, its central value, and variability
 The Presentation of Data
Summary Measures
Continuous

Mean µ Ordinal
Measures of
Central Median M
Tendency Nominal
Mode Mo
(Location) Quartiles (Percentiles)
Continuous
Ordinal

Range Measures of
Variance σ2 Dispersion
Continuous
Standard Deviation σ (Variability)

Measures of Skewness Sk
Continuous
Shape Kurtosis K

Proportion
π
Standard Normal Distribution
Statistics Formulas
Descriptive Statistics
Statistic Formula
σ𝑥
Mean 𝑥ҧ =
𝑛
𝑚 = 𝑥𝑛+1
Median (50% Quartile) 2
Middle value
Mode Most frequent value
Range Maximum - Minimum
σ(𝑥 − 𝑥)ҧ 2
Variance 2
𝑠 =
𝑛 −1
Standard Deviation 𝑠= 𝑠2
𝑥ҧ − 𝑚𝑜
Skewness 𝑠𝑘 =
𝑠
σ 𝑥 − 𝑥ҧ 4
Kurtosis 𝑘= / 𝑠4
𝑛

Quartiles

Cuts = Quartiles
Cut into
4 equal
parts
Order
Data
Skewness
Kurtosis
 Minitab
Application
Inferential Statistics
 Inferential Analysis

Hypothesis Relationship
Testing among Variables
Hypothesis Testing
(Significance Testing)
A systematic approach to assessing
tentative beliefs about reality.

It involves confronting those beliefs

with evidence and deciding, in
light of this evidence, whether the
beliefs can be maintained as
reasonable or must be discarded as
untenable.
 Hypothesis Testing Steps

Take a sample,
Select a test Derive a compute the test
State the
statistic decision rule statistic, & confront
Hypothesis
it with the decision
rule

H0 vs. Ha
z or t
Level of Significance Value
Significance (p-value)

α
Making a Decision
Types of Error
Test of Normality
Relationship among
Variables
Relationship between two
variables can be checked by
drawing scatterplots or running
statistical tests.
Scatterplots
 Minitab
Application
Correlation
Perfect
Weak
 Minitab
Application
Testing Relationship among
Variables
Variables Test
Both Variables are Nominal Chi-square

Independent Variable is Nominal & T-Test (Independent Variable has only two
Dependent Variable is Interval or Ratio categories)
ANOVA (Independent Variable has more
than two categories)

Both Variables are Interval or Ratio Correlation or Regression

Chi-Square X2 Test
Testing the Alleged Independence of two
Qualitative Variables

Contingency Table

A table that classifies data

according to two or more
categories, associated with each
of two qualitative variables that
may or may not be statistically
independent

It shows all possible

combinations of categories, or
contingencies, which counts for
its name.
T-Test
How to test for differences between
means from two separate groups of
subjects.
ANOVA
Analysis of Variance
Used to determine whether there
are any significant differences
between the means of three or
more independent (unrelated)
groups
Regression
Simple Regression Analysis
A statistical technique that
establishes an equation that allows
the unknown value of one variable
to be estimated from the known
value of one other variable
Statistical Quality Control
The general category of statistical tools used to evaluate
organizational quality
 Statistical Quality
Control (SQC)

Statistical Process Control

Descriptive Statistics Acceptance Sampling
(SPC)
 Descriptive Statistics
Statistics used to describe quality
characteristics and relationships

Statistical Process
Control (SPC)
A statistical tool that involves
inspecting a random sample of the
output from a process and
deciding whether the process is
producing products with
Acceptance Sampling
The process of randomly inspecting
a sample of goods and deciding
whether to accept the entire lot
based on the results
Process Capability
The ability of a production process to

characteristics that fall within a meet or exceed preset specifications

predetermined range

All three of these statistical quality control categories are helpful in measuring and evaluating
the quality of products or services. However, statistical process control (SPC) tools are used most
frequently because they identify quality problems during the production process.
Why SPC is the Most
Important Tool of the SQC?

 Measure the value of a quality characteristic

 Help to identify a change or variation in

some quality characteristic of the product

or process
Some Information about SPC

 SPC can be applied to any process.

 There is inherent variation in any process which can be

measured and “controlled”.

 SPC doesn’t eliminate variation, but it does allow the user to

track special cause variation.

 “SPC is a statistical method of separating variation resulting

from special causes from natural variation and to establish and
maintain consistency in the process, enabling process
improvement.” (Goetsch & Davis, 2003. p. 631)
 Sources of Variation

Common Causes of Assignable Causes of

Based on random causes Variation Variation can be precisely
that cannot be identified & eliminated
identified, unavoidable
& due to slight
differences in processing
Descriptive Statistics

 Describing certain
characteristics of a product &
a process

 Measures of Central Tendency

(mean)

 Measures of Variability
(standard deviation & range)

 Measures of the Distribution

of Data
Statistical Process Control
Methods – 7 Basic Quality Tools

Control Chart Check Sheet Pareto Chart

Cause-&-Effect
Flow Chart Histogram
Diagram

Scatter Diagram
1. Control Chart
 A graph that shows whether a sample
of data falls within the common or
normal range of variation

 A control chart has upper and lower

control limits that separate common
from assignable causes of variation.

 A process is out of control when a plot

of data reveals that one or more
samples fall outside the control limits.
Types of Control Chart

Characteristics measured by
Control Chart

Variables Attributes

A product characteristic that can be A product characteristic that

measured and has a continuum of values has a discrete value and can be
(e.g.,height, weight, or volume). counted

𝑥ҧ & R charts P & C Charts

Control Charts for Variables
Mean Control Chart
(ഥ
𝒙 Chart)
Used to monitor changes in the
mean of a process
To construct a mean chart:
 take multiple samples and
compute their means
 construct the upper and lower
control limits of the chart
UCL = 𝑥Ӗ + 𝑧𝜎𝑥ҧ
LCL = 𝑥Ӗ - 𝑧𝜎𝑥ҧ
𝜎𝑥ҧ = 𝜎/ 𝑛
Range (R) Charts
Used to monitor changes in the
dispersion or variability of process
To construct a range chart:
 take multiple samples and
compute their average range
 construct the upper and lower
control limits of the chart
CL = 𝑅ത
UCL = 𝐷4 𝑅ത
LCL = 𝐷3 𝑅ത
 Minitab
Application
Control Charts for Attributes
P-Charts C-Charts
Used to monitor the proportion of Used to monitor the number of
defects in a sample defects per unit

Construction:
 The center line is the average
proportion defective in the
population, 𝑝.ҧ
 construct the upper and lower
control limits of the chart
UCL = 𝑝ҧ + 𝑧𝜎𝑝
LCL = 𝑝ҧ - 𝑧𝜎𝑝
Construction:
 The center line is the average
number of defects, 𝑐.ҧ
 construct the upper and lower
control limits of the chart
UCL = 𝑐ҧ + 𝑧 𝑐ҧ
LCL = 𝑐ҧ - 𝑧 𝑐ҧ

ҧ − 𝑝)ҧ
𝑝(1
𝜎𝑝 =
𝑛
 Minitab
Application
Process Capability

 The ability of the process

to produce within a
specification

 Cp compares the natural

variation of the process to
the specification width

 Cpk compares the natural

variation of the process to
the specification width
and target
Process Capability

Process Capability is the

range in which all output
can be produced – the
inherent capability of the
process

𝑠𝑝𝑒𝑐𝑖𝑓𝑖𝑐𝑎𝑡𝑖𝑜𝑛 𝑤𝑖𝑑𝑡ℎ 𝑈𝑆𝐿 − 𝐿𝑆𝐿

𝐶𝑝 = =
Cpk Values 𝑝𝑟𝑜𝑐𝑒𝑠𝑠 𝑤𝑖𝑑𝑡ℎ 6𝜎

𝑈𝑆𝐿 − 𝑥Ӗ 𝑥Ӗ − 𝐿𝑆𝐿
𝐶𝑝𝑘 = min ,
3𝜎 3𝜎

𝐶𝑝 = 1 >>> process variability just meets specifications

(process is minimally capable).

𝐶𝑝 ≤ 1 >>> process variability is outside the range of

specification (process variability is outside the range of
specification)

𝐶𝑝 ≥ 1 >>> process variability is tighter than specifications

and the process exceeds minimal capability
 Minitab
Application
Acceptance Sampling
An inspection procedure used to

determine whether to accept or reject a

specific quantity of materials

Acceptance Sampling

Producer’s Risk & Managing Levels of

Sampling Plans
Consumer’s Risk Risk
Sampling Plan

 A plan for acceptance sampling that precisely specifies the

parameters of the sampling process and the
acceptance/rejection criteria

 No 100% Inspection

 The most widely used sampling plans are given by Military

Standard (MIL-STD-105E)

 Determines the quality level of an incoming shipment or at

the end of production

 Judges whether quality level is within the level that has

been predetermined
 Types of Sampling Plans
Single-Sampling Plan Sequential-Sampling Plan
A decision to accept or reject a A plan in which the consumer randomly
lot based on the results of one selects items from the lot and inspects
random sample from the lot. them one by one.

Double-Sampling Plan
A plan in which management
specifies two sample sizes and two
acceptance numbers; if the quality
of the lot is very good or very bad,
the consumer can make a decision
to accept or reject the lot on the
basis of the first sample, which is
smaller than in the single-sampling
plan.

Sampling by Attribute
Sampling by Variable
 Take a Random The Single Sampling Procedure
Sample of size n from
the Lot of size N

Inspect all items in the

Sample
Defectives found = d

Yes
d≤c? Accept Lot

No

Reject Lot

Do 100% Inspection Return Lot

Acceptance Sampling Risks

The Lot is actually Good The Lot is actually Bad

The Lot is Accepted Correct Decision Incorrect Decision

Confidence = 1 – α β Risk (Consumer’s Risk)

The Lot is Rejected Incorrect Decision Correct Decision

α Risk (Producer’s Risk) Power = 1 - β
OC Curve
The Operating Characteristics Curve

A graph that describes how

well a sampling plan
discriminates between good
and bad lots
Quality & Risk Decisions

 Acceptable Quality Level (AQL): The small percentage of

defects that consumers are willing to accept.

 Producer’s Risk (α): The chance that a lot containing an

acceptable quality level will be rejected.

 Lot Tolerance Proportion Defective (LTPD): The upper

limit of the percentage of defective items consumers are
willing to tolerate.

 Consumer’s Risk (β): The chance of accepting a lot that

contains a greater number of defects than the LTPD limit.
Average Outgoing Quality
(AOQ)
 The expressed proportion of defects that the

plan will allow to pass

𝑁 −𝑛
𝐴𝑂𝑄 = 𝑃𝑎𝑐 𝑃
𝑁

 Rectified Inspection: The assumption that all

defective items in the lot will be replaced

with good items if the lot is rejected and that

any defective items in the sample will be

replaced if the lot is accepted.

 Average outgoing quality limit (AOQL): The

maximum value of the average outgoing

quality over all possible values of the

proportion defective.
Create a Sampling Plan
Compare a Sampling Plan
2. Check Sheet
A simple document that is used for collecting data in real-
time and at the location where the data is generated.
3. Pareto Chart
A bar chart that is used to analyze the frequency of
problems or causes in a process
4. Flow Chart

 Used for analyzing a sequence

of events in a process

 Can be used to understand a

complex process in order to
find the relationships and
dependencies between events

 MS Visio Software
5. Cause-&-Effect Diagram
Fishbone Diagram: help organize ideas & identify relationships,
encourages brainstorming for ideas
6. Histogram
A graphical representation of the distribution of data
7. Scatterplot
A graph of plotted points that show the relationship
between two sets of data
“
Thank You!
”
Presenter: Marwa Abo Amra
statistician.marwa@gmail.com