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Technical Note 7
Process Capability and Statistical
Quality Control

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OBJECTIVES
• Process Variation
• Process Capability
• Process Control Procedures
– Variable data
– Attribute data
• Acceptance Sampling
– Operating Characteristic Curve

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Basic Forms of Variation

Example: A poorly trained
Assignable variation employee that creates
is caused by factors variation in finished
that can be clearly product output.
identified and
possibly managed
Common variation is Example: A molding
inherent in the process that always leaves
production process “burrs” or flaws on a
molded item.

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Taguchi’s View of Variation

Traditional view is that quality within the LS and US is good
and that the cost of quality outside this range is constant, where
Taguchi views costs as increasing as variability increases, so seek
to achieve zero defects and that will truly minimize quality costs.
High High

Incremental Incremental
Cost of Cost of
Variability Variability

Zero Zero

Lower Target Upper Exhibits Lower Target Upper

Spec Spec Spec TN7.1 & Spec Spec Spec
TN7.2
Traditional View Taguchi’s View
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Process Capability

• Process limits

• Tolerance limits

• How do the limits relate to one another?

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Process Capability Index, Cpk

Capability Index shows
 X − LTL UTL - X 
how well parts being C pk = min  or 
3 3 
produced fit into design  
limit specifications.

As a production process
produces items small
shifts in equipment or
systems can cause
differences in
production
performance from
differing samples.
Shifts in Process Mean
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Types of Statistical Sampling

• Attribute (Go or no-go information)
– Defectives refers to the acceptability of product
across a range of characteristics.
– Defects refers to the number of defects per unit
which may be higher than the number of
defectives.
– p-chart application

• Variable (Continuous)
– Usually measured by the mean and the standard
deviation.
– X-bar and R chart applications
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Statistical UCL

Process Normal Behavior

Control
LCL
(SPC) Charts 1 2 3 4 5 6 Samples
over time
UCL

Possible problem, investigate

LCL

1 2 3 4 5 6 Samples
over time
UCL

Possible problem, investigate

LCL

1 2 3 4 5 6 Samples
over time
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Control Limits are based on the Normal

Curve

x
m
z
-3 -2 -1 0 1 2 3

Standard
deviation
units or “z”
units.

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Control Limits
We establish the Upper Control Limits (UCL)
and the Lower Control Limits (LCL) with plus
or minus 3 standard deviations from some x-bar
or mean value. Based on this we can expect
99.7% of our sample observations to fall within
these limits.

99.7%
x
LCL UCL

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Example of Constructing a p-Chart:

Required Data
Sample No. of Number of
defects found
No. Samples in each sample
1 100 4
2 100 2
3 100 5
4 100 3
5 100 6
6 100 4
7 100 3
8 100 7
9 100 1
10 100 2
11 100 3
12 100 2
13 100 2
14 100 8
15 100 3

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Statistical Process Control Formulas:

Attribute Measurements (p-Chart)

Given: T o ta l N u m b e r o f D e fe c tiv e s
p =
T o ta l N u m b e r o f O b s e rv a tio n s

p (1 - p )
sp =
n
Compute control limits:

UCL = p + z s p
LCL = p - z s p

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Example of Constructing a p-chart: Step 1

Sample n D efec tives p
1. Calculate the 1 100 4 0.04
sample proportions, 2 100 2 0.02
3 100 5 0.05
p (these are what 4 100 3 0.03
can be plotted on the 5 100 6 0.06
p-chart) for each 6 100 4 0.04
7 100 3 0.03
sample 8 100 7 0.07
9 100 1 0.01
10 100 2 0.02
11 100 3 0.03
12 100 2 0.02
13 100 2 0.02
14 100 8 0.08
15 100 3 0.03

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Example of Constructing a p-chart: Steps

2&3
2. Calculate the average of the sample proportions

55
p = = 0.036
1500

3. Calculate the standard deviation of the

sample proportion

p (1 - p ) .036(1 - .036)
sp = = = .0188
n 100

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Example of Constructing a p-chart: Step 4

4. Calculate the control limits

UCL = p + z s p
LCL = p - z s p

.036  3(.0188)

UCL = 0.0924
LCL = -0.0204 (or 0)

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Example of Constructing a p-Chart: Step 5

5. Plot the individual sample proportions, the average

of the proportions, and the control limits
0 .1 6

0 .1 4

0 .1 2

0 .1 UCL
p 0 .0 8

0 .0 6

0 .0 4

0 .0 2

0 LCL
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

O b s e rv a t io n

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Example of x-bar and R Charts:

Required Data
Sam ple O bs 1 O bs 2 O bs 3 O bs 4 O bs 5
1 10.68 10.689 10.776 10.798 10.714
2 10.79 10.86 10.601 10.746 10.779
3 10.78 10.667 10.838 10.785 10.723
4 10.59 10.727 10.812 10.775 10.73
5 10.69 10.708 10.79 10.758 10.671
6 10.75 10.714 10.738 10.719 10.606
7 10.79 10.713 10.689 10.877 10.603
8 10.74 10.779 10.11 10.737 10.75
9 10.77 10.773 10.641 10.644 10.725
10 10.72 10.671 10.708 10.85 10.712
11 10.79 10.821 10.764 10.658 10.708
12 10.62 10.802 10.818 10.872 10.727
13 10.66 10.822 10.893 10.544 10.75
14 10.81 10.749 10.859 10.801 10.701
15 10.66 10.681 10.644 10.747 10.728

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Example of x-bar and R charts: Step 1.
Calculate sample means, sample ranges,
mean of means, and mean of ranges.
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

Averages 10.728 0.220400

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Example of x-bar and R charts: Step 2.

Determine Control Limit Formulas and
Necessary Tabled Values
x C hart C ontrol L im its From Exhibit TN7.7

n A2 D3 D4
UCL = x + A 2 R 2 1.88 0 3.27
3 1.02 0 2.57
LC L = x - A 2 R 4 0.73 0 2.28
5 0.58 0 2.11
6 0.48 0 2.00
R C hart C ontrol L im its 7 0.42 0.08 1.92
8 0.37 0.14 1.86
UCL = D 4 R 9 0.34 0.18 1.82
10 0.31 0.22 1.78
LC L = D 3 R 11 0.29 0.26 1.74

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Example of x-bar and R charts: Steps 3&4.
Calculate x-bar Chart and Plot Values
UCL = x + A 2 R = 10.728 - .58(0.2204 ) = 10.856

LCL = x - A 2 R = 10.728 - .58(0.2204 ) = 10.601

1 0 .9 0 0

1 0 .8 5 0 UCL
1 0 .8 0 0

1 0 .7 5 0
M eans

1 0 .7 0 0

1 0 .6 5 0

1 0 .6 0 0
LCL
1 0 .5 5 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
S a m p le

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Example of x-bar and R charts: Steps 5&6.
Calculate R-chart and Plot Values
UCL = D 4 R = ( 2 . 11 )( 0 . 2204 ) = 0.46504
LCL = D 3 R = ( 0 )( 0 . 2204 ) = 0

0 .8 0 0

0 .7 0 0

0 .6 0 0

0 .5 0 0
UCL
R 0 .4 0 0

0 .3 0 0

0 .2 0 0

0 .1 0 0

0 .0 0 0
LCL
1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5

S a m p le

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Basic Forms of Statistical Sampling for

Quality Control

• Acceptance Sampling is sampling to

accept or reject the immediate lot of
product at hand
• Statistical Process Control is sampling to
determine if the process is within
acceptable limits

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Acceptance Sampling
• Purposes
– Determine quality level
– Ensure quality is within predetermined level
• Advantages
– Economy
– Less handling damage
– Fewer inspectors
– Upgrading of the inspection job
– Applicability to destructive testing
– Entire lot rejection (motivation for improvement)

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Acceptance Sampling (Continued)

• Disadvantages
– Risks of accepting “bad” lots and rejecting
“good” lots
– Added planning and documentation
– Sample provides less information than 100-
percent inspection

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Acceptance Sampling:
Single Sampling Plan

A simple goal

Determine (1) how many units, n,

to sample from a lot, and (2) the
maximum number of defective
items, c, that can be found in the
sample before the lot is rejected

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Risk
• Acceptable Quality Level (AQL)
– Max. acceptable percentage of defectives defined
by producer
• The a (Producer’s risk)
– The probability of rejecting a good lot
• Lot Tolerance Percent Defective (LTPD)
– Percentage of defectives that defines consumer’s
rejection point
• The  (Consumer’s risk)
– The probability of accepting a bad lot

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Operating Characteristic Curve
The OCC brings the concepts of producer’s risk, consumer’s
risk, sample size, and maximum defects allowed together
1
The shape
a = .05 (producer’s risk)
Probability of acceptance

0.9
0.8 or slope of
0.7 the curve is
n = 99
0.6 c=4
dependent
0.5 on a
0.4 particular
0.3  =.10 combination
0.2 (consumer’s risk) of the four
0.1 parameters
0
1 2 3 4 5 6 7 8 9 10 11 12
AQL LTPD
Percent defective
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Example: Acceptance Sampling Problem

Zypercom, a manufacturer of video interfaces,
purchases printed wiring boards from an outside
vender, Procard. Procard has set an acceptable
quality level of 1% and accepts a 5% risk of rejecting
lots at or below this level. Zypercom considers lots
with 3% defectives to be unacceptable and will assume
a 10% risk of accepting a defective lot.

Develop a sampling plan for Zypercom and determine

a rule to be followed by the receiving inspection
personnel.

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Example: Step 1. What is given and what

is not?
In this problem, AQL is given to be 0.01 and LTDP
is given to be 0.03. We are also given an alpha of
0.05 and a beta of 0.10.

What you need to determine is your sampling

plan is “c” and “n.”

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Example: Step 2. Determine “c”

LTPD .03
= = 3
First divide LTPD by AQL. AQL .01

Then find the value for “c” by selecting the value in the
TN7.10 “n(AQL)”column that is equal to or just greater than
the ratio above.

Exhibit TN 7.10 So, c = 6.

c LTPD/AQL n AQL c LTPD/AQL n AQL

0 44.890 0.052 5 3.549 2.613
1 10.946 0.355 6 3.206 3.286
2 6.509 0.818 7 2.957 3.981
3 4.890 1.366 8 2.768 4.695
4 4.057 1.970 9 2.618 5.426
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Example: Step 3. Determine Sample Size

Now given the information below, compute the sample
size in units to generate your sampling plan

c = 6, from Table
n (AQL) = 3.286, from Table
AQL = .01, given in problem

n(AQL/AQL) = 3.286/.01 = 328.6, or 329 (always round up)

Sampling Plan:
Take a random sample of 329 units from a lot.
Reject the lot if more than 6 units are defective.

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End of Technical Note 7

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