IN2004: Statistical Quality Control Summer 2020

Lecture 3: Statistical methods for quality control

Statistical quality control can be classified into three broad categories. In this series of lecture, we will
focus on those categories: (1) Descriptive statistics, (2) Statistical process control (SPC) and (3)
Acceptance sampling

1.0.1 Descriptive statistics

We already know about the basic tools of Descriptive statistics. We will revisit few important graphical
tools in subsequent lectures.

1.0.2 Statistical process control (SPC)

• Let us first understand what we mean by a process

• In the case of a manufacturing process, the controllable input factors x1 , x2 , · · · , xp are process variable
such as temperatures, pressures, feed rates etc.

• The inputs z1 , z2 , · · · , zq are uncontrollable (or difficult to control) inputs, such as environmental factors
or properties of raw materials provided by an external supplier

• The production process transforms the input raw materials, component parts, and subassemblies into
a finished product that has several quality characteristics

• The output variable y is a quality characteristic, that is, a measure of process and product quality

0 This note is based on the book: Introduction to Statistical Quality Control, D. C. Montgomery, 6th Edition, John Wiley

& Sons Inc., 2009

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The above model can also be used to represent non-manufacturing or service processes. For example

• Consider a process in a financial institution that processes automobile loan applications

• The inputs are the loan applications, which contain information about the customer and his/her credit
history, the type of car to be purchased, its price, and the loan amount

• The controllable factors are the type of training that the loan officer receives, the specific rules and
policies that the bank imposed on these loans, and the number of people working as loan officers at
each time period

• The uncontrollable factors include prevailing interest rates, the amount of capital available for these
types of loans in each time period, and the number of loan applications that require processing each
period

• The output quality characteristics include whether or not the loan is funded, the number of funded
loans that are actually accepted by the applicant, and the cycle time; that is, the length of time that
the customer waits until a decision on his/her loan application is made

A control chart is one of the primary techniques of statistical process control (SPC). A typical control
chart is shown in Fig. 1.4. This chart plots the averages of measurements of a quality characteristic in
samples taken from the process versus time (or the sample number).

• The chart has a center line (CL) and upper and lower control limits (UCL and LCL)

• The center line represents where this process characteristic should fall if there are no unusual sources
of variability present
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• The control chart is a very useful process monitoring technique; when unusual sources of variability
are present, sample averages will plot outside the control limits

• There are various types of control charts

1.0.3 Acceptance sampling

The third area of quality control and improvement is acceptance sampling. Acceptance sampling, defined
as the inspection and classification of a sample of units selected at random from a larger batch or lot and
the ultimate decision about disposition of the lot, usually occurs at two points: incoming raw materials or
components, or final production.
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1.1 Management aspects of quality improvement

Statistical techniques, including SPC and other problem-solving tools are the technical basis for quality
control and improvement. However, to be used most effectively, these techniques must be implemented within
and be part of a management system that is focused on quality improvement. The effective management of
quality involves successful execution of three activities: (1) Quality planning, (2) Quality assurance,
and (3) Quality control and improvement.

Quality planning is a strategic activity, and it is just as vital to an organization’s long-term business
success as the product development plan, the financial plan, the marketing plan, and plans for the
utilization of human resources. Without a strategic quality plan, an enormous amount of time, money,
and effort will be wasted by the organization dealing with faulty designs, manufacturing defects, field
failures, and customer complaints. Quality planning involves identifying customers, both external
and those that operate internal to the business, and identifying their needs .This is sometimes called
listening to the voice of the customer (VOC).

Quality assurance is the set of activities that ensures the quality levels of products and services are prop-
erly maintained and that supplier and customer quality issues are properly resolved. Documentation
of the quality system is an important component. Quality system documentation involves four com-
ponents: policy, procedures, work instructions and specifications, and records.

Quality control and improvement involve the set of activities used to ensure that the products and
services meet requirements and are improved on a continuous basis. Since variability is often a major
source of poor quality, statistical techniques are the major tools of quality control and improvement.
Quality improvement is often done on a project-by-project basis and involves teams led by personnel
with specialized knowledge of statistical methods and experience in applying them.