35

LEARNING GUIDE

Week No.: __8__

TOPIC/S

 Introduction to Quality

 Quality Fundamentals
 Dimensions of Quality
 Cost of Quality
 Benefits and Consequences

 Problem Solving

 Quality Tools

EXPECTED COMPETENCIES

Upon completing this Learning Module, student will be able to:

1. define the fundamentals of quality;

2. discuss the benefits and consequences associated with quality;
3. determine the cost related to quality;
4. demonstrate a PDCA cycle in solving sample problem; and
5. illustrate the different types of quality tools

This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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CONTENT/TECHNICAL INFORMATION

Operation nowadays does not only focus on product costs but most especially they
focus on the quality of products or service they give. If the product or service surpass the
customers expectation then the product is considered to be of good quality. But according to
ANSI (American National Standard Institute) and ASQ (American Society of Quality),
quality is the entirety of a product or service's features and characteristics that help its ability
to meet implied or specified needs.
Implied needs are those that are specifically written and agreed upon by the customer
Specified Needs are needs identified in functions of market such as safety, availability,
maintainability, reliability, usability, impact to environment and economics (price). These
needs are then translated to product specification which are identifiable and measurable. But
these are also reviewed periodically due to the changing needs of the end-user.

Figure 1: Evolution of Quality

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Dimensions of Quality:

Product Quality

 Product performance is the main characteristics of the product

 Aesthetics pertains to the appearance, feel, smell, taste
 Special features are other characteristics added to the product
 Conformance refers to the capability of the product to conform to design
specifications
 Reliability means the consistency of product’s performance
 Durability is the endurance or useful life of the product
 Perceived quality refers to the indirect rating of the product’s quality
 Serviceability pertains to the ability of handling of product’s complaints
and repairs

Service Quality

 Convenience refers to the ease to access and availability of the service.

 Reliability pertains to the quality of performing the service dependably,
consistently, and accurately.
 Responsiveness is the ability of the service providers to help customers willingly
in unusual situations or problems.
 Time refers to the rate of service delivery
 Assurance is a skill demonstrated by employees who communicate with a
customer and their ability to express confidence and trust.
 Courtesy refers to the way clients are handled by workers who interacted with
them.
 Tangibles are the physical characteristics of materials for facilities, machinery,
employees, and communications.
 Consistence is the ability to provide the service of the same level of quality
(outstanding) repeatedly.

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Quality Determinants
The level to which a product or service satisfy its intended function effectively
has four primary determinants:
1. Quality of Design.
Designers' aim to incorporate or remove characteristics in a product or
service. The variety of products or services reflects the quality of the design
developed by the designers. Customer expectations, manufacturing or service
capacities, protection and liability (both during production and after delivery),
costs, and other related components must be taken into account in design
decisions.
2. Quality of Conformance.
The degree to which products and services adhere to (i.e. attain) the
designers' purpose. This is influenced by factors such as the capacity of the
equipment used; the abilities, training and encouragement of employees; the
degree to which the design lends itself to production; the conformity
evaluation monitoring process; and, where appropriate, the taking of
corrective measures
3. Ease of use.
These refers to the ease of usage of the product or services for the
customers. The term “ease of use” refers to user instructions. Designing a
product with “ease of use” increases the chances that the product will be used
in its intended design and it will continue to function properly and safely.
4. Service after delivery.
There will be times when products may fail or problems with usage
may occur. This is when “Service after delivery” is important through recall
and repairs of the product, adjustment, replacement or buys back, or
reevaluation of a service.

Areas with impact to quality:

1. Top Management
The sole responsibility for quality is exercised by top management. Top
management must develop programs to increase quality when establishing quality
strategies; guide, direct, and inspire managers and employees; and set an example by
becoming active in quality initiatives.

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2. Design
Quality of products and services begins with design. This includes not just the
product or service features but also includes attention to the processes necessary to
manufacture the goods and/or services that will be needed to provide consumers with
the service.

3. Procurement
It is the responsibility of the procurement department to acquire products and
services that would not affect the quality of the goods and services of the company.

4. Operation / Production
Production/operations are responsible for ensuring that processes of goods and
services comply with the requirements created of the design. Management system and
the identification and correction of root causes of problems are essential elements of
this function.

5. Quality Assurance
Quality assurance is responsible for data collection, analysis and evaluation of
problems then collaborating with other areas for activities to solve problems.

6. Packaging and Shipping

This division must ensure that items are not damaged during shipment, that
shipments are clearly marked, that directions are provided, that all parts are included
and that delivery takes place in a timely manner.

7. Marketing and Sales

This section is responsible in determining customer’s expectations and convey
them to the appropriate areas of the organization. They are also responsible for
reporting product or service issues.

8. Customer Care
The first unit to learn about customer concerns is always the customer service.
They are responsible for distributing this information to the appropriate agencies,
engaging with customers in a sensible manner, working on solving issues, and
keeping track to ensure that the situation has been effectively addressed.

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Advantages of Good Quality:

 Raise Company's Reputation
 Rationalize Premium Prices
 Decrease Liability Costs
 Increase Productivity
 Increase Customer Loyalty
 Increase Customer Satisfaction

Consequence's of Bad Quality

 Loss of business and existing market share
 Legal liability
 Lack of productivity
 Increased operational costs

Costs associated with quality:

1. Appraisal costs are costs related to measuring, evaluating, and auditing materials,
parts, products, and services to assess conformance. Examples are testing
equipment, testing laboratories and inspectors.
2. Prevention costs are costs of related to prevent potential quality problems from
occurring such as quality improvement activities and training.
3. Failure costs are costs derived from defective parts or products or by faulty services
4. Internal failures cost are costs of failures discovered during production such as
rework, scrap and downtime.
5. External failures cost are costs of failures discovered after delivery to the customer
due to delivering substandard products or service. Examples are warranty
costs, customer complaints, liabilities and penalties.
6. Return on quality (ROQ) is an approach that evaluates the financial return of
investments in quality

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Quality Control
Refers to use of different techniques to achieve, maintain and improve the quality of a
product or service.
This involves integration of methods and activities such as product design and
specifications, manufacturing and installation to meet the required specifications, inspection
of products to determine conformance, and review of usage for needed revision of the
product

Statistical Quality Control (SQC)

It is a branch of quality control (QC) where the compilation, review, and evaluation of
data are done which will be use for activities of quality control.
Two major parts of SQC:
 Statistical process control SPC
 Acceptance Sampling

Quality Assurance
Quality assurance are planned or systematic activities and mechanisms necessary to
ensure adequate confidence that a product or service will meet specified quality requirements..
These includes:
 quality parameters for continuous evaluation for adequacy & effectiveness.
 corrective measures
 feedback initiated where necessary

Difference between quality assurance and quality control:

Quality control emphasizes testing of products to detect defects and reporting to
management who decide to allow or deny release, while quality assurance attempts to
improve and stabilize production and associated processes to avoid, or at least minimize,
problems that have resulted to defects.
Several QA methodologies are used to prevent errors from occurring. However, QA
does not preclude the need for QC: some of the product parameters are quite important that
testing is still necessary. QC operations are known to be one of the overall QA systems.

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Seven Quality Tools:

1. Cause-and-effect diagram (also called Ishikawa or fishbone diagrams).
This diagram identifies many possible causes for an effect or problem and sorts ideas
into useful categories.
Figure 2: Sample of Cause and Effect (Fishbone/ Ishikawa) Diagram

2. Check sheet:
An organized form that helps in preparing, collecting and analyzing data; a generic
tool that can be adapted for a wide variety of purposes.
Figure 3: Sample Check sheet Format

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3. Control chart:
Graph used to study how a process changes over time. Comparing current data to
historical control limits leads to conclusions about whether the process variation is consistent
(in control) or is unpredictable (out of control, affected by special causes of variation).
Figure 4: Control Chart Sample (Moving Range)

4. Histogram:
The most common used graph for showing the distribution of frequency, or how often
the value occurs in a set of data
Figure 5: Sample Histogram

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5. Pareto chart
A graph (bar) that shows which factors or cause are more significant.
Figure 6: Pareto Chart Example

6. Scatter diagram:
Pairs of numerical data that are presented in a graph with one variable on each axis, to
look for a relationship.
Figure 7: Scatter Diagram Sample

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7. Stratification:
A technique that separates data gathered from a variety of sources so that patterns can
be seen
Figure 8: Sample of Stratification

New Seven Quality Tools (also Management Tools)

1. Affinity diagram. Organizes the natural relationships of broad or large number of ideas.

2. Interrelationship diagram. It illustrates relationships of cause and effect and helps to

examine the inherent interactions between various elements of such a complex situation.

3. Tree diagram. It divides large categories into detail to help carry out a step-by-step
thinking from generalities to particulars.

4. Matrix diagram. Illustrates the correlation between two, three, or four groups of data
such as its impact, the responsibilities performed and other factors

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5. Matrix data analysis. A complex mathematical technique, often replaced by a similar

prioritization matrix, for the study of matrices. A prioritization matrix is an L-shaped
matrix that compares a list of options pairwise to a set of criteria to choose the best
option (s).

6. Arrow diagram. Demonstrates the appropriate order of tasks in a project or process, the
best timetable for the project as a whole, possible issues and solution with resources and
their coordination.

7. Process decision program chart. Systematically defines what may be wrong with a
proposal under construction.

Figure 9: New seven Quality Tools Samples

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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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PROGRESS CHECK:

I. Enumeration: Answer the following questions (1 point each)

1. Cost associated with quality
2. Consequences of poor quality
3. New seven quality tools

II. Discussion. Read the following statements and explain briefly. (5 points each)
1. Use the dimensions of quality to describe typical characteristics of these products
and services:
A. Mobile phone
B. School Canteen Service
2. A computer repair shop had received a number of complaints on the length of time
it took to make repairs. The manager responded by increasing the repair staff
by 10 percent. Complaints on repair time quickly decreased, but then
complaints on the cost of repairs suddenly increased. Oddly enough, when
repair costs were analyzed, the manager found that the average cost of repair
had actually decreased relative to what it was before the increase in staff.
What are some possible explanations for the complaints, and what actions
might the manager contemplate? As a manager, how would you deal with the
possibility that customer satisfaction does not always lead to customer
retention?

III. Problem Solving:

1. Make a check sheet and then a Pareto diagram for the following car repair shop
data:
2.
Ticket No. Work Ticket No. Work Ticket No. Work

1 Tires 11 Brakes 21 Lube & oil

2 Lube & oil 12 Lube & oil 22 Brakes

3 Tires 13 Battery 23 Transmission

4 Battery 14 Lube & oil 24 Brakes

5 Lube & oil 15 Lube & oil 25 Lube & oil

6 Lube & oil 16 Tires 26 Battery

7 Lube & oil 17 Lube & oil 27 Lube & oil

8 Brakes 18 Brakes 28 Battery

9 Lube & oil 19 Tires 29 Brakes

10 Tires 20 Brakes 30 Tires

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 1

LEARNING GUIDE

Week No.: 10

TOPIC/S

 INSPECTION

 PROCESS CAPABILITY

1. Capability Analysis
2. Capability Indices

EXPECTED COMPETENCIES

Upon completing this Learning Module, student will be able to:

1. identify inspection and fundamentals of statistics

2. Illustrate different variations of normal distribution curve
3. determine process capability and its importance; and
4. solve problems about process capability and process capability index.

CONTENT/TECHNICAL INFORMATION

In any operation standard requirements are of the manufacturer or suppliers main

concern. Being able to achieve the standards set by the customers would mean a satisfied
customer. And to be able to achieve this, companies should make sure that they comply with
these set standards.

Complying with the standard requirements can occur in any part of the operation.

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Figure 1: Quality Assurance Approaches:

Quality assurance verify and ensures that processes are performed on a manner
acceptable to the standard requirement. These are measured using different statistical
techniques. Operations approach to quality can vary from least progressive into advanced.
Enterprise can use an acceptance sampling, process control or continuous improvement. In
the modern era, industries are putting hard effort in investing into quality assurance.

INSPECTION

Quality assurance relies on the inspection process. Inspection process can be found in
different areas, such as input process, on-going process, and output process. Inspection is
important in the industry especially for those who are not yet into lean operation.

Figure 2: Inspection Areas in Operation

Inspection in the input process is for confirmation that the incoming resources passed
the standards before they will undergo the transformation process. The essence of performing
inspection during the production is to make sure that process comply with the set standards.
And inspection on the outgoing process is for final confirmation of the output before giving it
to the customer. Inspection before and after the process involves acceptance sampling while
during operation process control is used.

The objective of the inspection is to provide information as to the extent to which the
products comply with the criteria.

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Issues considered in inspection:

1. Quantity and frequency of inspection.

Low-cost, high-volume goods need to have little inspection because the cost of
passing defective products is very low and the processes manufacturing these
products are often highly efficient, so defects are uncommon. In comparison, high-
cost, low-volume goods with high costs associated with product defects also need
more thorough inspections. Most processes would require testing and inspection, but
for control purposes, it is neither possible nor economically feasible to inspect every
portion of a product or every element of a service. Usually, the cost of inspection
resulting to process interruptions or delays and the manner of testing outweigh the
benefits of 100% inspection. Manual inspection does not guarantee that a product or a
service is of good quality and that defectives are completely removed from the
outputs. When destructive test is involved, the management would also consider this
matter. But the cost of delivering defective product is too high that would sometime
result into company’s closure or bankruptcy, that is why inspection cannot be ignored
or neglected. The amount of inspection required is determined based on the cost of
inspection and the estimated cost a defective product delivered to the end user.
Traditionally, the quantity of inspection is optimal when the cost of inspection and the
cost of delivering defective products are is minimal.

The frequency of the inspection depends largely on the pace at which a

process or the number of lots being inspected will go out of control. A stable process
would only need infrequent checks, while more regular checks will be required for an
unstable system or one that has previously encountered problems.

2. Areas in the process where inspection should occur.

There are several potential inspection points in the operation. As much as not
to affect to the cost of product or service inspection activities need to be taken care of
especially to the areas where most damage are found. Following are some of the areas
where inspection are conducted:

A. Raw Materials and Purchased Parts

B. Finished Product
C. Before a costly operation
D. Before an irreversible process
E. Before covering a process

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3. If inspection should be done in a centralized or on-site location.

Some process would require on-site inspections to be undertaken. Inspecting a

ship's hull for cracks and testing of chimneys emission are examples of inspection on-
site. Specialized testing can best be done in a laboratory like performing medical tests,
analyzing food samples, or testing metals for hardness.

Whether the effects of advanced laboratory testing are worth the time and
interruption taken to achieve the results is the fundamental question in the decision
surrounding on-site or laboratory inspections. Urgent judgments and prevention of the
additional external activities are considerations why on-site inspection are used
(example damage of product during transportation to the lab). Specialized facilities,
on the other hand, and a more desirable testing atmosphere make compelling reasons
for the use of a laboratory.

Inspections could be done manually or automatically. Some industry prefer to

go with manual inspection for the purpose of traceability of the source of errors or
misjudgment.

4. Whether to inspect by attributes or variables.

Inspection could be attribute or variable. Variable methods are use for those
data that can be measured and attributes are used for those data that can be counted.

FUNDAMENTALS OF STATISTICS:

Statistics is a special field of mathematics that are characterized as data gathering,

analysis, interpretation and delivery. It is a method for evaluating complex issues and
drawing a conclusion with a high likelihood of precision. It is also providing rational
reasoning and decision-making of sample data.

Goods or service can be undergo 100% inspection or through sampling. Sampling is

normally done for outputs of greater number. A sample can be taken on a regular interval and
be analyzed. The result of the analysis determined statistically represents the overall quality
of the produced output of greater quantity like one million pieces.

Measure of Central Tendency

Frequency distribution can be defined as "tabulation or count of the number of times

the measurement of the quality characteristic is performed within the sample product being
tested."

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Measures of central tendency are as follows:

1. Mean (Arithmetic Mean) - average of a sample is obtained by dividing the sum of

values by the number of readings.

Example:
Find the arithmetic mean or average of the following values below:
100.0, 100.1, 99.9, 100.0, 99.8, 99.9, 100.1, 100.0, 100.2

Solution:

2. Median (Midpoint) - is the value which divides a series of readings arranged in

order of magnitude of their values so that an equal number of values are on either side
of the centre. To find median, the values should be arranged in ascending order. If the
number of readings n is odd; then the median is the value at position (n + 1)/2. If n is
even then the median is the value at (n/2 + 1)

Example:
From the above given data, find the median.

Solution:
Arranging the values in ascending order:
99.8,99.9, 99.9, 100.0, 100.0, 100.0, 100.1, 100.2

Since the value of n=9, therefore we use (n+1)/2.

3. Mode - is the most frequent occurring value from the sets of data.

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Example:
From the above data, determine the mode

Solution:
From the arranged data, 100.0 can be seen that it occurs three times. Therefore:

Mode = 100.0

Measures of Dispersion

Aside from measures of central tendency, measure of dispersion is another

parameter that characterize normal distribution.

Measures of central tendency are as follows:

1. Range is the difference between the highest value and the lowest value in the given
set of data. It is the simplest measure of dispersion but has many applications such as
in control charts.

Example:
Find the range of the data given in the above example.

Solution:
Determine the maximum and minimum values.
Maximum = 100.2
Minimum = 99.8
Therefore:

2. Standard Deviation. The standard deviation of a population is a measure of the

spread of the values of the given data.

If data are drawn from a lot, standard deviation for sample is called sample standard
deviation which can be computed using the formula below.

(x1 − x)2 + (x2 − x)2 + . . . + (xn − x)2

s=
n−1

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Where:
s = sample standard deviation
x1, x2, . . xn = value of each reading
x = mean of the sample data
n = number of readings or data

For population standard deviation, we use the formula below.

(x − μ)2
σ=
N

Where:
σ = population standard deviation
μ = population mean
x = individual values
N = number of values

Example:
1. Find the sample standard deviation of the above sample data.

Solution:

(99.8 − 100)2 + (99.9 − 100)2 + 3(100 − 100)2 + 2(100.1 − 100)2 + (100.2 − 100)2
s=
9−1

0.04 + 0.02 + 0 + 0.02 + 0.04

s=
8

s = 0.812

2. Data were drawn from a production lot and following are weight (kg) of the
products.
4, 4, 5, 6. Find the population standard deviation

(x − μ)2
σ=
N

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2
(4 − 5)2 + 2(5 − 5)2 + (6 − 5)2
σ=
4
σ = 0.71

3. Variance.

Variance of population can be determined by �2 . While sample variance can

be determine using �2 .

Characteristics of Normal Distribution Curve:

1. The frequency of the mean value of the population μ is the highest.

2. 68.26% of all values in the distribution will occur between plus or minus 1σ over
the mean value.
3. 95.45% of all values occur between μ ± 2σ.
4. 99.73% of all values lie between μ ± 3σ.
5. The curve never touches the x-axis. The curve extends between -α to + α.

Figure 3: Normal Distribution Curve

Variations in Distribution

Distribution of samples varies depending on the performance of operation.

Data could be skewed to the left or right, normal of bi-modal. Below are different
variations in distribution.

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Figure 4: Variations in Distributions

PROCESS CAPABILITY

A process has been described as a series of interdependent processes,

operations or steps that consume resources and transform the inputs into outputs. Each
operation or step contributes to the next to accomplish an objective or desired
outcome. In any process, there appears a certain amount of variance. Variation in a
process cannot be removed, but it can be assessed, monitored, minimized and
controlled. A process is said to be capable if the spread of the distribution curve is
narrower than specification limits. Specification limits are set of standards determined
by the customer.

Process capability are carried out for the following purposes:

 Evaluation of newly established process
 Evaluation of performance of machines or equipment
 Reviewing specification based on the inherent variability of the process
 Process Audits
 Monitoring the effect of adjustments made on the process

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Figure 5: Process Capability Chart

(a) Controlled Process

(b) Process Out of Control

(c) Control chart for capable and not capable process with respect to time

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Suppose, you are driving a car. The width of your car is equal to the spread or
range of the data. The road lanes on each side are your specification limits. You must
keep your car on the road lane to reach your target destination. The Cp value is
equivalent to the distance your car stays away from the lane and Cpk represents how
good you are driving and staying in the lane. Obviously if the spread of your data is
narrower your car’s width is smaller.

To determine how the process is operating, we find the compute for Cp

(Process Capability), Cpk (Process Capability Index), or Pp (Preliminary Process
Capability) and Ppk (Preliminary Process Capability Index), depending on the state of
the process and the method of determining the standard deviation or sigma value. The
Cp and Cpk calculations use sample deviation or deviation mean within rational
subgroups. The Pp and Ppk calculations use standard deviation based on studied data
(whole population). The Cp and Cpk indices are used to evaluate existing, established
processes in statistical control. The Pp and Ppk indices are used to evaluate a new
process or one that is not in statistical control.

Cp tells you if your process is capable of making parts within specifications

and Cpk tells you if your process is centered between the specification limits.

The Cp index is a basic indication of process capability. The Cp value is

determined using the specification limits and the standard deviation of the process.
For the process to be capable Cp value should not be lower than 1 but many
businesses demand that the process Cp = 1.33 or greater.

The Cpk index, measures how centered is the process to the mean value by
analyzing how similar a process is operating to the design limits given the typical
process variance. The higher the Cpk value the closer the mean of the data is to the
target value. Cpk is measured using the specification limits, standard deviation or
sigma, and the mean value. The Cpk value should be between 1 and 3. When Cpk
value is below 1, immediate action should be done to correct the process.

Assumptions for computing process capability and capability index:

1. There are no special causes of variation in the process and it is in a state of

statistical control. Any special causes must be discovered and resolved.
2. The data fits a Normal distribution, exhibiting a bell shaped curve and can
be calculated to plus or minus three sigma. There are cases when the
data does not fit a normal distribution.
3. The sample data is representative of the population. The data should be
randomly collected from a large production run. Many companies
require at least 25 to preferably 50 sample measurements be collected

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Computing Process Capability and Capability Index

��� − ���
�� =
6�

��� − � � − ���
��� = ������� �� ( ; )
3� 3�

Where: USL = Upper Specification Limit

LSL = Lower Specification Limit

Sample Problems:

1. The computer laboratory area during class and activities should be maintained
between 18 degrees Celsius and 26 degrees Celsius. The process to maintain the
temperature has a standard deviation of 2 degrees Celsius. If the mean temperature is
21 degrees Celsius, compute for the process capability and capability index.

Given:
USL = 26 ℃
LSL = 18 ℃
� = 21℃
σ = 2℃

Solution:
��� − ���
�� =
6�

26 − 18
�� = = 0.67
6(2)

��� − � � − ���
��� = ������� �� ( ; )
3� 3�

��� − � 26 − 21
��� = = = 0.83
3� 3(2)

� − ��� 21 − 18
��� = = = 0.5
3� 3(2)

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Conclusion:
The process of maintaining the temperature is not capable or out of control
since its process capability value is lesser than 1 which is 0.67. Meaning the process
encounters a special cause variations.

Causes of Process Capability

Process outputs varies depending on the factors that may affect the process.
Labor, machine, materials, method and the environment includes on these factors.
These factors are categorized into two, the random cause variations and the special
cause variations.

 Random Variations are also called common cause variations. These factors are
those that cannot be attributed to particular cause or those that cannot be traced.
When random variations are the only present in the process, the process is said
to be in control.

 Special Cause Variations are also called assignable cause variations. These
causes can be identified with analysis. Immediate actions are needed when these
type of variations occur in the process. And the process is not stable or out of
control.

ACCEPTABLE QUALITY LEVEL

This is the percentage of products that the customer is prepared to accept

outside the tolerance. Standard normal distribution computation is used fine the
maximum standard deviation that is acceptable to meet the customer’s requirements.

x−μ
z=
σ
Where:
x = actual values of the parameters
μ = mean
σ = standard deviation
z = value found on the table for finding the propertions defective

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Sample Problem:

1. A company is producing boards whose weight is normally distributed with a mean of 300
grams. The standard deviation is 5 grams. What percentage of boards will weigh more than
310 grams?

Given:
x =310 grams
μ = 300 grams
σ = 5 grams

Solution:
310 − 300
z= =2
5

Finding the value of z = 2from the table below, we find that the proportions is 0.0228.
This means that 2.28% of the boards will weigh more than 310 grams.

2. The customer is prepared to accept an acceptable quality level (AQL) of 1.5%. Assume
that the mean value is 300 grams and upper specification limit is 315 grams. Find the
maximum permissible standard deviation.

Given:
x =315 grams
μ = 300 grams
AQL =1.5%

Solution:
Since the acceptable quality level or allowable % deviation is 1.5% and this is both
sides of the distribution curve we can solve:

right side allowable deviation = left side allowable deviation

1.5%
allowable deviation = = 0.75%
2
Therefore proportion is 0.0075 and from the table z = 2.43
Solving for σ:
x−μ 315 − 300
z= = 2.43 =
σ σ

15
σ= = 6.17grams
2.43

Therefore standard deviation of 6.1 grams has to be achieved for AQL of 1.5%

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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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PROGRESS CHECK

I. Identification: Answer the following questions. (1 point each)

1. Random variations are due to __________

2. The mean of data: 2, 0, 4, 5, -1 is ____________

3. The standard deviation of the above data is __________

4. The range of the above data is _________________

5. The tool suitable for capturing variations in processes is ___________

II. Discussion: Explain briefly the following (5 points each)

1. Characteristics of normal distribution

2. Issues considered in inspection

3. Difference between common cause variations and special cause variations

III. Problem Solving: (10 points)

1. A process has a mean of 45.5 and a standard deviation of 0.9. The product has a
specification of 45.0 ± 3. Find the Cpk .

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REFERENCES

Textbook/s:

William J. Stevenson, Production or Operations Management Fifth Edition, Busy

Book Distributors, 1999

Subburaj Ramasamy, Total Quality Management, International Edition, Tata

McGraw-Hill Publishing Company Limited, 2005

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LEARNING GUIDE

Week No.: _11__

TOPIC/S

 CONTROL CHARTS

1. Control Chart for Variables

2. Control Chart for Attributes

EXPECTED COMPETENCIES

Upon completing this Learning Module, student will be able to:

1. discuss elements of control charts and how they are used;

2. identify the importance of control charts
5. solve problems using appropriate control charts (variables and attributes);
and
6. analyze and interpret data using different control charts.

CONTENT/TECHNICAL INFORMATION

Since many industries are also venturing to operations, and the advancement of
technology greatly affects the needs and demands of the customer, organizations are more
eager to provide a better performance of its products and processes. To achieve this effective
measurement of process should be done.

Control chart and statistical process control was developed by Walter Shewart in the
1920s. Control charts are also known as Shewhart charts or process-behaviour charts, are
tools used to determine whether or not an operational process is in statistical control. Aside
from using control chart for monitoring process control and stability it is also used as a tool
for analysis.

Control chart is a plot of data with regards to process performance relative to time.

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Importance of Control Chart

A. Provides information about process capability

B. Provides a basis for predicting future performance
C. Provides basis for measuring improvement
D. Control chart help in getting process under control and thereby prevent defects
from occurring
E. Prevents unnecessary adjustments and enable necessary process adjustment
F. Helps to identify assignable causes immediately
G. Gives feedback to process owners
H. Helps management to keep the processes under control and effect savings
I. Enables high ROI

Elements of Control Chart:

1. A control chart begins with a time series graph.

2. A central line is added as a visual reference for detecting shifts or trends – this
is also referred to as the process location.
3. Upper and lower control limits (UCL and LCL) are computed from available
data and placed equidistant from the central line. This is also referred
to as process dispersion.

Figure 1: Elements of Control Chart

Understanding the control chart:

Control chart are composed of three zones:

1. Zone 1 is the stable zone. When performance data falls on this zone, process
can be continued without any revisions or alterations. And this is up 2σ on
both sides.

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2. Zone 2 is also called the warning zone. Performance data falls between 2σ
and 3σ. When data falls in this zone for in a continuous manner an action is
required to return the data to zone 1. In any case the data was taken from a
single period, additional data maybe needed to confirm the performance.

3. Zone 3 is called the action zone. Performance data falls beyond zone 2 and
needs immediate action or process adjustment.

Figure 2: Control Chart Zones

Figure 3: Four Different Process States:

1. Ideal. When the process occurs in the optimal state, it is in statistical control
and achieves 100% conformity. The process has established its stability and
output efficiency. The process is said to be predictable.

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2. Threshold. A process that is characterized by statistical control but the

intermittent non-conformance is still produced, is said to be in threshold state.
This form of process produces a constant degree of non-compliance and
exhibits low capability.

3. Brink of Chaos. In this state, the process is not statistical control, but still
does not create defects. In other words, the procedure is volatile, but consumer
needs are always satisfied by the outcome of the process. However, the
absence of defects leads to a false sense of confidence, as such a process will
yield non-compliance at any time..

4. Chaos. Here, the procedure is not under mathematical supervision and

creates unpredictable degrees of non-compliance.

TYPES OF CONTROL CHARTS

1. By Variables

Variable data are those data which can be measured. Examples of these are
length, weight, speed, efficiency, current, torque and etc.

2. By Attributes

Attributes are data which can be counted such attendance rate, accident rate,
and etc. Attributes are also referred to as discrete variable.

Figure 4: Guide for control chart selection

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Table 1: Comparison between control chart by variables and by attributes

Variable Charts Attribute Charts
Chart Type X bar and R or σ, x and MR np, p, c, u
Type of Data Measured in a continuous scale Number of defects or defectives
Advantages Useful for improvement product Data collection is easy and
quality statistics economical
Detailed information about chosen Provides a holistic view
characteristics or a process or
product
Focused on specific parameters Data readily available in every
organization
Suitable detailed analysis Easily understandable since it is pass
or fail criteria only
Disadvantages Cannot be used with go/no-go type Not suitable for control and
of inspection improvement of individual
parameters of processes or products
Expensive Severity of defects are not visible
Not detailed enough
Application Control and improvement of Control of number of defects in a unit
individual parameters of processes or number of defectives-usually
such as temperature, dust particles, product oriented
etc. And every characteristics of a
product like size, weight, etc.

Table 2: Control Charts for Variables

Chart Center
Measures Plotted Control Limits Remarks
Name Line
Average of � ���
x bar bar �=
x bar individual samples - � ± �2 ∗ � ��� �
(�) (N = No. of Samples)
x bar
Range of each UCL = D4 ∗ R bar �
R R bar �=
sample - R LCL = D3 ∗ R bar �
�
x Individual values - x x bar x bar ± (MR bar/1.13) �=
�
��
UCL = MR bar ∗ 3.27 �� =
MR Moving Range - MR MR bar �−1
LCL = 0 n = number of values

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Table 3: Control Charts for Attributes

Chart
Measures Plotted Center Line Control Limits Remarks
Name
N = No. of Samples
n = sample size
np -number of
np = defects in the
defectives in individual subgroups
np np bar �� ��� ± 3 ��(1 − �)
samples of ��
�� =
constant size n �
��
�=
�
p - fraction �
�=
defectives in �
p p bar p bar ± 3 p(1 − p)/ n bar
samples of
N = no of samples in the data
varying sizes n bar = average sample size
c - number of
defects or c = average defects
in sample of
c deviations in c bar c bar ± 3 c constatnt size
samples of
constant size
�
u bar ± 3 u/n �=
u - number of �
defects per unit in
u u bar For each unique n we
the samples of u − defects per sample
have to calculate the n − sample size
variable size
limits N − No. os sample

Sample Problems:

1. A manufacturer of 300 grams weight wants to carry out a process capability study. For this
purpose, he has picked up 25 sub-groups of 4 samples of weights manufacturing over the
period of 2 days.

Values are given below:

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Solution:

Using the formulas from the table above (Table 2) we can compute for the value of individual
x bar and range

To solve for Upper and Lower Control Limit:

UCL = D4 ∗ R bar
LCL = D3 ∗ R bar

� 124
�= = = 4.96
� 25

From the Table, for n = 4:

D4 = 2.282
D3 = 0

Therefore:
UCL = 2.282 ∗ 4.96=11.31
LCL = 0 ∗ 4.96 = 0

To graph the data:

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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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PROGRESS CHECK

I. Matching Type: Match column A with column B.

Column A Column B
______ 1. Measuring defect with varying sample A. np
______ 2. Fraction defectives B. p
______ 3. Used along with x-bar chart C. R
______ 4. Used when only one item per subgroup D. u
______ 5. Measures number of defectives in samples with E. MR
constant size

II. Discussion. Explain briefly the following

1. Difference between variable and attribute (2 points)
2. Different zones of control chart (3 points)

III. Problem Solving: Read the problems below, identify the control chart to be used, solve
for the required data and plot in a control chart. (10 points each)

1. The specification of the width for table was 100cms. The actual width measured on the
samples are shown below:

99, 101, 100, 102, 98, 101, 100, 99, 101, 100, 103, 102, 99, 100, 101, 98, 102, 98, 101, 99, 98, 100, 101, 99

2. A tile manufacturer inspected each operator’s output and noted the number of defectives
and sample size. Results are shown below:

No. of
2 1 5 1 4 5 2 3 1 0 0 2 5 4 1 3 2 1 5 0
defectives

Sample
120 56 278 311 123 254 17 35 45 67 56 92 235 123 70 45 58 62 278 75
Size

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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.