Chapter 5
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05 - 01
What is Quality?
Quality
A term used by
customers to
describe their
general
satisfaction
with a service
or product.
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Costs of Quality
Prevention Costs
Appraisal Costs
Internal Failure Costs
External Failure Costs
Total Quality
Management
TQM
A
philosophy
that
stresses
principles
for
achieving
high levels
Customer Satisfaction
Conformance to Specifications
Value
Fitness for Use
Support
Psychological Impressions
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Employee Involvement
Cultural Change
Teams
Employee Empowerment
Problem-solving teams
Special-purpose teams
Self-managed teams
Continuous Improvement
Kaizen
Problem-solving
tools
PDSA Cycle
XX
X
Process
on target with
low variability
Reduce
spread
Center
process
X
XX
XX
X XX
X X
X X
X
X XX
X
Acceptance Sampling
Acceptance Sampling
The application of statistical techniques
Acceptance Sampling
Interface
Buyer
Manufactur
es furnaces
Fan
Motor
inspection
Yes Accept
motors?
mo
tor
Firm A
Manufacturers F
furnace fan motorsan bla
de
s
TARGET: Buyers specs
Supplier
Manufactures
fan blades
TARGET: Firm As specs
No
Blade
inspection
Yes
Accept
blades?
No
05- 13
Statistical Process
Control (SPC)
SPC
The application of statistical techniques
to determine whether a process is
delivering what the customer wants.
Performance Measurements
Variables - Characteristics that can be
measured.
Attributes - Characteristics that can be
counted.
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Sampling
Sampling Plan
Size of the sample
Time between successive
samples
Decision rules that determine
when action should be taken
Complete Inspection
Inspect each product at each
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Sampling Statistics
Sample Mean
Sample Range
Sum of the
observations
divided by the total
n
observations
xi
i 1
x
where
n
Difference
between the
largest and
smallest
observation in a
sample
Sampling Statistics
Standard deviation The square
root of the variance of a
distribution.
An estimate of the process
2
standard deviation based
on
a
i
2
2
x
xi x by: i
sample
is
given
n
or
n 1
n 1
where
= standard deviation of a sample
xi = observation of a quality characteristic
(such as time)
x
n = totalCopyright
number
observations
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= mean
Sampling Statistics
1.The sample mean is the sum of the observations
divided by the total number of observations.
n
x
i 1
05 - 18
Sampling Statistics
2.The range is the difference between the largest
observation in a sample and the smallest. The
standard deviation is the square root of the
variance of a distribution. An estimate of the
process standard deviation based on a sample is
given by
x x
i
n 1
or
x
2
i
x
i
n 1
where
= standard deviation of a sample
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Sampling Distribution
Types of Variation
Common cause
Variation that is random,
unidentifiable and unavoidable
Assignable cause
Variation that can be identified
and eliminated
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Control Charts
Time-ordered diagram used to
determine whether observed
variations are abnormal
Mean
Upper control limit
Lower control limit
Nominal
LCL
Assignabl
e
causes
likely
2
Samples
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Control Charts
Variations
UCL
Nominal
LCL
Sample number
05- 25
Control Charts
Variations
UCL
Nominal
LCL
Sample number
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Control Charts
Variations
UCL
Nominal
LCL
Sample number
(c)
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(d)
Control Charts
Variations
UCL
Nominal
LCL
Sample number
05- 28
Type II error
Concluding that a
process is in control
when it is out of
control
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05- 35
Example 5.1
The management of West Allis Industries is
concerned about the production of a special
metal screw used by several of the companys
largest customers. The diameter of the screw
is critical to the customers. Data from five
samples appear in the accompanying table.
The sample size is 4. Is the process in
statistical control?
Example 5.1
Compute the range for each
sample and the control limits
UCLR = D4R =
Example 5.1
Process variability is in
statistical
control.
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Example 5.1
Compute the mean for each
sample and the control
limits.
Example 5.1
05 - 40
An Alternate Form
If the standard deviation of the
process distribution is known,
another form of the x-chart may
be used:
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Example 5.2
For Sunny Dale Bank the time required to
serve customers at the drive-by window is an
important quality factor in competing with
other
banks in the city.
Example 5.2
For Sunny Dale Bank the time required
to serve customers at the drive-by
window is an important quality factor
in competing with other banks in the
city.
Example 5.2
x
n
z
=
=
=
=
5 minutes
1.5 minutes
6 customers
1.96
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Application 5.1
Webster Chemical Company produces mastics
and caulking for the construction industry. The
product is blended in large mixers and then
pumped into tubes and capped.
Webster is concerned whether the filling process
for tubes of caulking is in statistical control. The
process should be centered on 8 ounces per
tube. Several samples
of eight tubes are taken
Tube Number
and
each
tube
is3 weighed
in ounces.
Sample
1
2
4
5
6
7
8
Avg
Range
1
7.98
8.34
8.02
7.94
8.44
7.68
7.81
8.11
8.040
0.76
8.23
8.12
7.98
8.41
8.31
8.18
7.99
8.06
8.160
0.43
7.89
7.77
7.91
8.04
8.00
7.89
7.93
8.09
7.940
0.32
8.24
8.18
7.83
8.05
7.90
8.16
7.97
8.07
8.050
0.41
7.87
8.13
7.92
7.99
8.10
7.81
8.14
7.88
7.980
0.33
8.13
8.14
8.11
8.13
8.14
8.12
8.13
8.14
8.130
0.03
Avgs
8.050
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0.38
Application 5.1
Assuming that taking only 6 samples is
sufficient, is the process in statistical
control?
1.864(0.38) = 0.708
0.136(0.38) = 0.052
Application 5.1
Consider dropping sample 6 because
of an inoperative scale, causing
inaccurate measures.
Tube Number
Sample
Avg
Range
7.98
8.34
8.02
7.94
8.44
7.68
7.81
8.11
8.040
0.76
8.23
8.12
7.98
8.41
8.31
8.18
7.99
8.06
8.160
0.43
7.89
7.77
7.91
8.04
8.00
7.89
7.93
8.09
7.940
0.32
8.24
8.18
7.83
8.05
7.90
8.16
7.97
8.07
8.050
0.41
7.87
8.13
7.92
7.99
8.10
7.81
8.14
7.88
7.980
0.33
Avgs
8.034
0.45
05- 47
Application 5.1
1.864(0.45) = 0.839
0.136(0.45) = 0.061
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05 - 49
Example 5.3
Hometown Bank is concerned
about the number of wrong
customer account numbers
recorded. Each week a
random sample of 2,500
deposits is taken and the
number of incorrect account
numbers is recorded
Using three-sigma control
limits, which will provide a
Type I error of 0.26 percent, is
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Example 5.3
Sample
Number
Wrong Account
Numbers
Sample
Number
Wrong Account
Numbers
15
24
12
19
10
10
17
19
11
15
12
3
Total
147
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Example 5.3
Total defectives
147
=
= 0.0049
p=
Total number of observations
12(2,500)
p =
Example 5.3
.0091Defective
Fraction
X
X
.0049
UCL
X
Mean
.0007
X
|
X
|
6
7
Sample
10
11
12
LCL
05 - 53
Application 5.2
15
16
10
17
11
18
12
19
Application 5.2
Calculate the p-chart three-sigma control
limits to assess whether the capping process
is in statistical control.
p
0.025
Total number of tubes
20 144
p
p1 p
0.025 1 0.025
0.01301
144
UCLc = c + zc
zc
and
LCLc = c
Example 5.4
The Woodland Paper Company produces
paper for the newspaper industry. As a final
step in the process, the paper passes
through a machine that measures various
product quality characteristics. When the
paper production process is in control, it
averages
defects
per for
roll.the number of
a.
Set up a20
control
chart
defects per roll. For this example, use
two-sigma control limits.
b.Five rolls had the following number of
defects: 16, 21, 17, 22, and 24,
respectively. The sixth roll, using pulp
from a different supplier, had 5 defects.
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Is the paper
production
process
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Example 5.4
= 20 + 2(20) = 28.94
Example 5.4
b.
05- 59
Application 5.3
Lumps
Tube #
Lumps
Tube #
Lumps
10
11
12
6 5 0 4 6 4 1 6 5 0 9 2
4
12
c
UCL c c z c
4 2
4 2 2 8
LCL c c z c 4 2 2 0
Process Capability
Process Capability The ability
of the process to meet the
design specification for a service
or product
Nominal Value
Tolerance
Process Capability
Nominal
value
Process distribution
Lower
specification
20
Upper
specification
25
30
05- 63
Minutes
Process Capability
Nominal
value
Process distribution
Upper
specification
Lower
specification
20
25
30
Minutes
Process Capability
Nominal value
Six sigma
Four sigma
Two sigma
Upper
specification
Lower
specification
Mean
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where
= standard deviation of the process distribution
Example 5.5
The intensive care
Upper
unit lab process has
specification =
an average
30 minutes
turnaround time of
Lower
26.2 minutes and a
standard deviation
specification
of 1.35 minutes.
20 minutes
The nominal value
Average service
for this service is 25
26.2 minutes
minutes + 5
=
minutes.
1.35 minutes
Is the lab process
capable of
four
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sigma-level
Example 5.5
= Minimum of
Example 5.5
Cp = Upper Specification Lower
Specification
6
Cp = 30 20 = 1.23
6 (1.35)
Process did not meet 4-sigma level of
1.33
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Example 5.5
New Data is
collected:
Upper specification
=
30 minutes
Lower specification
Cp = Upper Lower
6
Cp = 30 20 =
1.39
6 (1.20)
20 minutes
Average service
26.1 minutes
= 1.20 minutes
Example 5.5
Upper specification
x
Minimum of x Lower specification
,
3
3
Cpk = Minimum of 26.1 20 ,
30 26.1
3 ( 1.20)
3
Cp =
( 1.20)
1.08
Application 5.4
Webster Chemicals nominal weight
for filling tubes of caulk is 8.00
ounces 0.60 ounces. The target
process capability ratio is 1.33,
signifying that management wants
4-sigma performance. The current
distribution of the filling process is
centered on 8.054 ounces with a
standard deviation of 0.192ounces.
Compute the process capability
index and process capability ratio to
assess whether the filling process is
capable and set properly.
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Application 5.4
a. Process capability index:
Cpk = Minimum of
= Minimum of
Application 5.4
b.Process capability ratio:
Upper specification Lower specification
8.60 7.40
Cp =
=
= 1.0417
6
6(0.192)
Loss (dollars)
Lower
Nominal
Upper
specification
value
specification
05- 76
International Quality
Documentation Standards
ISO 9001:2008 Quality
Standards
ISO 14000:2004 Environmental
Management Standards
ISO 26000:2010 Social
Responsibility Guidelines
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Baldridge Performance
Excellence Program
Leadership
Strategic Planning
Customer Focus
Measurement, Analysis, and
Knowledge Management
Workforce Focus
Operations Focus
Results
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Solved Problem 1
The Watson Electric Company produces incandescent light
bulbs. The following data on the number of lumens for 40-watt
light bulbs were collected when the process was in control.
Observation
Sample
604
612
588
600
597
601
607
603
581
570
585
592
620
605
595
588
590
614
608
604
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Solved Problem 1
601
24
602
10
582
22
602
32
604
24
Total
2,991
x = 598.2
112
R = 22.4
Average
05 - 80
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Hall.
Solved Problem 1
The R-chart control
limits are
2.282(22.4) = 51.12
0(22.4) = 0
Solved Problem 2
The data processing department
of the Arizona Bank has five data
entry clerks. Each working day
their supervisor verifies the
accuracy of a random sample of
250 records. A record containing
one or more errors is considered
defective and must be redone.
The results of the last 30
samples are shown in the table.
All were checked to make sure
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Solved Problem 2
Sample
Number of Defective
Records
Sample
Number of Defective
Records
16
17
12
19
18
10
19
11
20
11
21
17
12
22
12
23
24
10
13
25
13
Solved Problem 2
a. Based on these historical data, set
up a p-chart using z = 3.
b. Samples for the next four days
showed the following:
Sample
Tues
17
Wed
15
Thurs
22
Fri
21
Solved Problem 2
SOLUTION
a. From the table, the supervisor knows that
the total number of defective records is 300
out of a total sample of 7,500 [or 30(250)].
Therefore, the central line of the chart is
300
p=
= 0.04
7,500
The control limits are
UCL p p z
p 1 p
0.04(0.96)
0.04 3
0.077
n
250
Solved Problem 2
b. Samples for the next four days showed the
following:
Number of Defective
Records
Proportion
Tues
17
0.068
Wed
15
0.060
Thurs
22
0.088
Fri
21
0.084
Sample
Solved Problem 3
The Minnow County Highway Safety
Department monitors accidents at the
intersection of Routes 123 and 14.
Accidents at the intersection have
averaged three per month.
a. Which type of control chart should
be used? Construct a control chart
with three sigma control limits.
b. Last month, seven accidents
occurred at the intersection. Is this
sufficient evidence to justify a claim
that something has changed at the
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Solved Problem 3
SOLUTION
a. The safety department cannot determine the
number of accidents that did not occur, so it
has no way to compute a proportion defective
at the intersection. Therefore, the
administrators must use a c-chart for which
UCLc =
LCLc =
c+ =
z 3
c +3
3 = 8.20
c =
z 3
c 3
3 = 2.196
Solved Problem 4
Pioneer Chicken advertises lite
chicken with 30 percent fewer
calories. (The pieces are 33 percent
smaller.) The process average
distribution for lite chicken breasts
is 420 calories, with a standard
deviation of the population of 25
calories.
Pioneer
randomly
takes
a.
Design an
x-chart using
the process
standard
deviation.
samples
of
six
chicken
to
b.The
product
design
calls breasts
for the average
chicken breast
to content.
contain 400 100
measure
calorie
calories. Calculate the process capability
index (target = 1.33) and the process
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capability
ratio. Interpret the results.
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Solved Problem 4
SOLUTION
a. For the process standard deviation of 25
calories, the standard deviation of the sample
mean is
25
10.2 calories
6
Solved Problem 4
b. The process capability index is
Cpk = Minimum of
= Minimum of
500 420
420 300
= 1.60,
3(25)
3(25)
,
= 1.07
500
300
6(25)
= 1.33
05 - 92