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Quality Management
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What is Quality?


The quality of a product or service is a
customers perception of the degree to which the
product or service meets his or her expectations.
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Definitions
According to Dr. W.R.Spriegel , The quality of a
product may be defined as the sum of a number of
related characteristics such as shape, dimension,
composition, strength, workmanship, adjustment,
finish and color.
According to Henry Fayol, Control consists in
verifying whether everything occurs in conformity
with the plan adopted, the instructions issued and
principles established. It has for object to point out
weaknesses and errors in order to rectify them and
prevent occurrence. It operates on everything-things,
people and action.
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What is Quality Control?
"Quality control may be defined as that industrial
management technique or group of. techniques by means
of which products of uniform acceptable quality are
manufactured."
Alford and Beatty

"Quality control refers to the systematic control of those
variables encountered in a manufacturing process which
affect the excellence of the end product, Such variables
result from the application of materials, men, machines
and manufacturing conditions,"
Bethel, Atwater and Stackman
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STASTICAL QUALITY CONTROL
Statistical quality control is the application of statistical
techniques to determine how far the product
conforms to the standards of quality and precision
and to what extent its quality deviates from the
standard quality. The purpose of statistical quality
control is to discover and correct only those forces
which are responsible for variations outside the stable
pattern.
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Produce Good
Provide Service
Stop Process
Yes
No
Assign.
Causes?
Take Sample
Inspect Sample
Find Out Why
Create
Control Chart
Start
Statistical Quality Control Steps
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Techniques of statistical quality control


(1) Control Charts
(2) Acceptance Sampling
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What is control charts?
It is a chart and depicts three lines on the chart. One
line is the central line showing the average size. The
other two lines one below the central line and the
other above the central line, indicate the limits of
tolerances, within which deviations from standards
are permissible. The actual measurements of the
whole lot or a sample are plotted on the chart. Those
measurement values which fall outside the tolerance
limits are considered to be out-of-control points and
assignable cause may be said to exist.
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Control Charts
Are named according to the statistics being
plotted, i.e., X bar, R,C, and p
Have a center line that is the overall average
Have limits above and below the center line at 3
standard deviations (usually)
Center line
Lower Control Limit (LCL)
Upper Control Limit (UCL)
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Control Chart
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
UCL
LCL
Sample number
Mean
Out of
control
Normal variation
due to chance
Abnormal variation
due to assignable sources
Abnormal variation
due to assignable sources
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Commonly Used Control Charts
Variables data
X-bar and R-charts

Attribute data
For Percent defectives (P-chart)
For Defects per sample ( C-chart)

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Control Charts for Variables
Mean control charts
Used to monitor the central tendency of a
process.
X bar charts
Range control charts
Used to monitor the process dispersion
R charts
Variables generate data that are measured.
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Variables Data Charts
Process Centering
X bar chart
X bar is a sample mean

Process Dispersion (consistency)
R chart
R is a sample range
n
X
X
n
i
i
=
=
1
) min( ) max(
i i
X X R =
1
3
X bar charts
Center line is the grand mean (X double bar)
Points are X bars
x
z X UCL o + =
n
x
/ o o =
x
z X LCL o =
m
X
X
m
j
j
=
=
1
R A X UCL
2
+ = R A X LCL
2
=
-OR-
1
4
R Charts
Center line is the grand mean (R bar)
Points are R
D
3
and D
4
values are tabled according to n (sample
size)
R D UCL
4
=
R D LCL
3
=
1
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Sampling by Variable (Table 1)
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Sampling by Variable Example
You collect the
following data
from a process at
your company.
Draw the X and R
charts for the
process.
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Sampling by Variable Example
First calculate the average of the sample means and
the average of the sample ranges:


Then calculate sample mean control limits:



Finally, calculate sample mean control limits:
4 R
UCL D R =
2
X
UCL X A R = +
2
X
LCL X A R =
3 R
LCL D R =
2.11 0.60 1.27 = =
0.60
i
i
R
R
m

= =

10.21
i
i
X
X
m

= =

10.21 0.58 0.60 10.56 = + =

0 0.60 0 = =
10.21 0.58 0.60 9.86 = =
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Sampling by Variable Example
X Chart
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Sampling by Variable Example
R Chart
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Sampling by Variable In-Class Problem
You collect the following data for one of your
companys processes. You can assume the variables
standard deviation is 0.1. Draw process control charts
(use z=3).
Sample Obs 1 Obs 2 Obs 3 Obs 4 Obs 5 Avg Range
1 10.68 10.689 10.776 10.798 10.714 10.732 0.116
2 10.79 10.86 10.601 10.746 10.779 10.755 0.259
3 10.78 10.667 10.838 10.785 10.723 10.759 0.171
4 10.59 10.727 10.812 10.775 10.73 10.727 0.221
5 10.69 10.708 10.79 10.758 10.671 10.724 0.119
6 10.75 10.714 10.738 10.719 10.606 10.705 0.143
7 10.79 10.713 10.689 10.877 10.603 10.735 0.274
8 10.74 10.779 10.11 10.737 10.75 10.624 0.669
9 10.77 10.773 10.641 10.644 10.725 10.710 0.132
10 10.72 10.671 10.708 10.85 10.712 10.732 0.179
11 10.79 10.821 10.764 10.658 10.708 10.748 0.163
12 10.62 10.802 10.818 10.872 10.727 10.768 0.250
13 10.66 10.822 10.893 10.544 10.75 10.733 0.349
14 10.81 10.749 10.859 10.801 10.701 10.783 0.158
15 10.66 10.681 10.644 10.747 10.728 10.692 0.103
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Control Chart for Attributes
p-Chart - Control chart used to monitor the
proportion of defectives in a process
Attributes generate data that are counted.
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Use of p-Charts
When observations can be placed into two
categories.
Good or bad
Pass or fail
Operate or dont operate
When the data consists of multiple samples of
several observations each
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p-Charts
#
#
total defects
p
samples sample size
=

( )
1
p
p p
s
n

=
p
UCL p z s = +
p
LCL p z s =
2
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Sampling by Attribute Example
You collect the
following data
on insurance
claim forms
filled out by
your firm.
Draw the
process control
chart for this
data.
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Sampling by Attribute Example
#
#
total defects
p
samples sample size
=

( )

= =
0.03033 1 0.03033
0.0099
300
p
UCL p z s = +
p
LCL p z s =
= =

91
0.03033
10 300
( )
1
p
p p
s
n

=
= + = 0.03033 3 0.0099 0.06003
= = 0.03033 3 0.0099 0.00063
p chart
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Sampling by Attribute Assignment
Your company develops a
new manufacturing process
to make its key product.
You sample the product and
find that some of them are
defective, as per the data in
the chart.
Draw the process control
chart for the new
manufacturing process.
Sample n Defectives
1 100 4
2 100 1
3 100 3
4 100 3
5 100 3
6 100 4
7 100 3
8 100 11
9 100 1
10 100 2
11 100 3
12 100 2
13 100 2
14 100 10
15 100 3
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What is acceptance sampling?
It can be described as the post-mortem of the quality
of the product that has already been produced. Under
this technique, a sample is selected at random to
examine whether it conforms to the standards laid
down. It can be assumed that a certain percentage of
goods will not conform to the standards, so a certain
percentage of defective products in a lot may be
specified.
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Acceptance Sampling
Lot received for inspection
Sample selected and analyzed
Results compared with acceptance criteria
Accept the lot
Send to production
or to customer
Reject the lot
Decide on disposition
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Acceptance Sampling
Acceptance sampling is when we test a small portion of a lot to determine
whether it should be rejected or accepted.
Tests a product after it has been produced.

Can have two types of errors in acceptance sampling:
Type 1 (producers risk) is rejecting a good lot
Type II (consumer's risk) is accepting a bad lot


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Operating Characteristic Curve
Plots the probability of
accepting a lot with greater
than specified % defective.
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