COMPLETE

BUSINESS
STATISTICS
by
AMIR D. ACZEL
&
JAYAVEL SOUNDERPANDIAN
7th edition.
Prepared by Lloyd Jaisingh, Morehead State
University

Chapter 13

Quality Control and Improvement

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All

13-2

13 Quality Control and Improvement

Using Statistics
W. Edwards Deming Instructs
Statistics and Quality
The x-bar Chart
The R Chart and the s Chart
The p Chart
The c Chart
The x Chart

13-3

13 LEARNING OBJECTIVES
After studying this chapter you will be able to:

Determine when to use control charts

Create control charts for sample means, ranges and standard deviations
Create control charts for sample proportions
Create control charts for the number of defectives
Draw Pareto charts using spreadsheet templates
Draw control charts using spreadsheet templates

13-4

13-3 Statistics and Quality

controlchart
chartisisaatime
timeplot
plotof
ofaastatistic,
statistic,such
suchas
asaasample
samplemean,
mean,range,
range,
AAcontrol
standarddeviation,
deviation,or
orproportion,
proportion,with
withaacenter
centerline
lineand
andupper
upperand
andlower
lower
standard
controllimits.
limits. The
Thelimits
limitsgive
givethe
thedesired
desiredrange
rangeof
ofvalues
valuesfor
forthe
thestatistic.
statistic.
control
Whenthe
thestatistic
statisticisisoutside
outsidethe
thebounds,
bounds,or
orwhen
whenits
itstime
timeplot
plotreveals
revealscertain
certain
When
patterns,the
theprocess
processmay
maybe
beout
outof
ofcontrol.
control.
patterns,
Value
This point is out of the control limits

UCL
3
3

Center
Line
LCL
Time

processisisconsidered
consideredininstatistical
statisticalcontrol
controlififitithas
hasno
noassignable
assignablecauses,
causes,
AAprocess
onlynatural
naturalvariation.
variation.
only

13-5

Control Charts
Value

Processisisinincontrol
control
Process
Time
Value

Processmean
meanvaries
varies
Process
overtime:
time:process
processisis
over
outof
ofcontrol
control
out
Time

13-6

Control Charts (Continued)

Processvariance
variance
Process
changesover
overtime:
time:
changes
processisisout
outof
of
process
control.
control.

Processmean
meanand
and
Process
variancechange
change
variance
overtime:
time:process
processisis
over
outof
ofcontrol.
control.
out

Value

Time

Value

Time

13-7

Pareto Diagrams Using the Template

Paretodiagram
diagramisisaabar
barchart
chartof
ofthe
thevarious
variousproblems
problemsin
in
AAPareto
productionand
andtheir
theirpercentages,
percentages,which
whichmust
mustadd
addto
to100%.
100%.
production
A Pareto chart helps
to identify the most
significant problems
and thus one can
concentrate on their
solutions rather than
waste time and
resources on
unimportant causes.

13-8

Acceptance Sampling
Finishedproducts
productsare
aregrouped
groupedin
inlots
lotsbefore
beforebeing
beingshipped
shippedto
to
Finished
customers.
customers.
Thelots
lotsare
arenumbered,
numbered,and
andrandom
randomsamples
samplesfrom
fromthese
theselots
lots
The
areinspected
inspectedfor
forquality.
quality.
are
Suchchecks
checksare
aremade
madebefore
beforethe
thelots
lotsare
areshipped
shippedand
andafter
afterthe
the
Such
lotsarrive
arriveatattheir
theirdestination.
destination.
lots
Therandom
randomsamples
samplesare
aremeasured
measuredto
tofind
findout
outwhich
whichand
andhow
how
The
manyitems
itemsdo
donot
notmeet
meetspecifications
specifications
many
lotisisrejected
rejectedwhenever
wheneverthe
thesample
samplemean
meanexceeds
exceedsor
orfalls
falls
AAlot
belowsome
somepre-specified
pre-specifiedlimit.
limit.
below

13-9

Acceptance Sampling
For attribute
attribute data,
data, the
the lot
lot isis rejected
rejected when
when the
the
For
number of
ofdefectives
defectives or
or non-conforming
non-conforming items
items in
in
number
the sample
sample exceeds
exceeds aa pre-specified
pre-specified limit.
limit.
the
Acceptance sampling
sampling does
does not
not improve
improve quality
quality by
by
Acceptance
itself.
itself.
simply removes
removes bad
bad lots.
lots.
ItIt simply
Toimprove
improve quality,
quality,itit isis necessary
necessary to
to control
control the
the
To
production process
process itself,
itself, removing
removing any
any assignable
assignable
production
causes and
and striving
striving to
to reduce
reduce the
the variation
variation in
in the
the
causes
process.
process.

13-10

Six Sigma
Six Sigma
Sigma isis aa further
further innovation,
innovation, beyond
beyond Demings
Demings
Six
work, in
in the
the field
field of
ofquality
quality assurance
assurance and
and control.
control.
work,
The purpose
purpose of
of Six
Six Sigma
Sigma isis to
to push
push defect
defect levels
levels
The
below aa certain
certain specified
specified threshold.
threshold.
below
Six Sigma
Sigma helps
helps to
to improve
improve quality.
quality.
Six
The key
key to
to Six
Six Sigma
Sigmaisis aaprecise
precise definition
definition of
ofthe
the
The
production process
process with
with accurate
accurate measurements
measurements and
and
production
valid collection
collection of
of data.
data.
valid

13-11

Six Sigma
also involves
involves detailed
detailed analysis
analysis to
to measure
measure the
the
ItIt also
relationships and
and causality
causality of
ofkey
key factors
factors in
in the
the
relationships
production process.
process.
production
Experimental Design
Design isis used
used to
to identify
identify these
these key
key
Experimental
factors.
factors.
Strict control
control of
ofthe
the production
production process
process isis exercised.
exercised.
Strict
Any variations
variations are
are corrected,
corrected, and
and the
theprocess
process isis
Any
further monitored
monitored as
as itit goes
goes on
on line.
line.
further
The essence
essence of
of Six
Six Sigma
Sigma isis the
the statistical
statistical methods
methods
The
described in
in this
this chapter.
chapter.
described

13-12

13-4 The X-Bar Chart: A Control Chart

for the Process Mean
Elements of a control chart for the process mean:
k
xi
Center line: x i 1
k
LCL: x A2 R
UCL: x A2 R
where: k = number of samples, each of size n
xi = Sample mean for sample i
R Range of sample i
i
k
R
i
i=1
R =
k
If the sample size in each group is more than 10:
s / c4
s / c4
LCL = x - 3
UCL = x + 3
n
n
where s is the average of the standard deviations of all groups.

n
n

A
A2 2

22
33
4
4
55
66
77
88
99
1010
15
15
2020
2525

1.880
1.880
1.023
1.023
0.729
0.729
0.577
0.577
0.483
0.483
0.419
0.419
0.373
0.373
0.337
0.337
0.308
0.308
0.223
0.223
0.180
0.180
0.153
0.153

c
c4 4
0.7979
0.7979
0.8862
0.8862
0.9213
0.9213
0.9400
0.9400
0.9515
0.9515
0.9594
0.9594
0.9650
0.9650
0.9693
0.9693
0.9727
0.9727
0.9823
0.9823
0.9869
0.9869
0.9896
0.9896

The X-Bar Chart: A Control Chart for

the Process Mean (Continued)

Testsfor
forassignable
assignablecauses:
causes:
Tests
Onepoint
pointbeyond
beyond3
3(3s)
(3s)
One
Ninepoints
pointsininaarow
rowon
onone
oneside
sideof
ofthe
thecenter
centerline
line
Nine
Sixpoints
pointsininaarow
rowsteadily
steadilyincreasing
increasingor
ordecreasing
decreasing
Six
Fourteenpoints
pointsininaarow
rowalternating
alternatingup
upand
anddown
down
Fourteen
Twoout
outof
ofthree
threepoints
pointsininaarow
rowbeyond
beyond2
2(2s)
(2s)
Two
Fourout
outof
offive
fivepoints
pointsininaarow
rowbeyond
beyond1
1(1s)
(1s)
Four
Fifteenpoints
pointsininaarow
rowwithin
within1
1(1s)
(1s)of
ofthe
thecenter
centerline
line
Fifteen
Eightpoints
pointsininaarow
rowon
onboth
bothsides
sidesof
ofthe
thecenter
centerline,
line,all
allbeyond
beyond1
1(1s)
(1s)
Eight

13-13

13-14

Tests for Assignable Causes

Value
3
2
1
1
2
3

Test1:1:One
Onevalue
valuebeyond
beyond
Test
3(3s)
(3s)
3

Time
Value
3
2
1
1
2
3

Test2:2:Nine
Ninepoints
pointsininaa
Test
rowon
onone
oneside
side
row
thecenter
centerline.
line.
ofofthe

Time

Tests for Assignable Causes

(Continued)

13-15

Value
3
2
1
1
2
3

Test3:3:Six
Sixpoints
pointsininaa
Test
rowsteadily
steadily
row
increasingoror
increasing
decreasing.
decreasing.

Time

Value
3
2
1
1
2
3

Test4:4:Fourteen
Fourteenpoints
pointsinin
Test
rowalternating
alternating
aarow
upand
anddown.
down.
up

Time

Tests for Assignable Causes

(Continued)
Value
3
2
1
1
2
3

Test5:5:Two
Twoout
outofofthree
three
Test
pointsininaarow
row
points
beyond2
2(2s)
(2s)
beyond

Time

Value
3
2
1
1
2
3

Test6:6:Four
Fourout
outofoffive
five
Test
pointsininaarow
row
points
beyond1
1(1s)
(1s)
beyond

Time

13-16

Tests for Assignable Causes

(Continued)

13-17

Value
3
2
1
1
2
3

Test7:7:Fifteen
Fifteenpoints
pointsininaa
Test
rowwithin
within1
1
row
(1s)ofofthe
thecenter
center
(1s)
line.
line.

Time

Value
3
2
1
1
2
3

Test8:8:Eight
Eightpoints
pointsininaa
Test
rowon
onboth
bothsides
sides
row
thecenter
centerline,
line,
ofofthe
allbeyond
beyond1
1(1s)
(1s)
all

Time

13-18

X-bar Chart: Example 13-1 Using

the Template

13-19

X-bar Chart: Example 13-1(continued)

Using the Template

Note:The
TheX-bar
X-barchart
chartcannot
cannotbe
beinterpreted
interpretedunless
unlessthe
the
Note:
orsschart
charthas
hasbeen
beenexamined
examinedand
andisisin
incontrol.
control.
RRor

13-20

X-bar Chart: Example 13-1(continued)

Using Minitab
Xbar Chart of Concentration
Xbar Chart of Concentration
10.8
10.8

UCL=10.784
UCL=10.784

Sample Mean
Sample Mean

10.6
10.6
10.4
10.4

_
__ _
X=10.257
X=10.257

10.2
10.2
10.0
10.0
9.8
9.8
9.6
9.6

LCL=9.731
LCL=9.731
1
1

2
2

3
3

4
4

5
6
5
6
Sample
Sample

7
7

8
8

9
9

10
10

Note:The
TheX-bar
X-barchart
chartcannot
cannotbe
beinterpreted
interpretedunless
unlessthe
the
Note:
orsschart
charthas
hasbeen
beenexamined
examinedand
andisisin
incontrol.
control.
RRor

13-21

13-5 The R Chart and s Chart

Elements of a control chart for the process range:
Center line: R
LCL: D3 R
UCL: D4 R
k
R
i
i=1
where: R =
k
Elements of a control chart for the process standard
deviation:
Center line: s
LCL: B3 s
UCL: B4 s
k
s
i
where: s = i=1
k

n
n
22
33
44
5
5
66
77
88
99
1010
1515
20
20
2525

D
D3 3
00
00
00
0
0
00
0.076
0.076
0.136
0.136
0.184
0.184
0.223
0.223
0.348
0.348
0.414
0.414
0.459
0.459

D
D4 4
3.267
3.267
2.575
2.575
2.282
2.282
2.115
2.115
2.004
2.004
1.924
1.924
1.864
1.864
1.816
1.816
1.777
1.777
1.652
1.652
1.586
1.586
1.541
1.541

B
B3 3
00
00
00
0
0
0.030
0.030
0.118
0.118
0.185
0.185
0.239
0.239
0.284
0.284
0.428
0.428
0.510
0.510
0.565
0.565

B
B4 4
3.267
3.267
2.568
2.568
2.266
2.266
2.089
2.089
1.970
1.970
1.882
1.882
1.815
1.815
1.761
1.761
1.716
1.716
1.572
1.572
1.490
1.490
1.435
1.435

R Chart: Example 13-1 using the

Template

The process range seems to be in control.

13-22

s Chart: Example 13-1 using the

Template

The process standard deviation seems to

be in control.

13-23

13-24

Example 13-2 using the Template

Example 13-2 using the Template Continued

13-25

Example 13-2 using the Template Continued

Based on the x-bar, R, and s charts, the process

seems to be in control.

13-26

13-27

Example 13-2 using Minitab

Xbar Chart of Delivery Times
Xbar Chart of Delivery Times
UCL=7.196
UCL=7.196

7
7

Sample Mean
Sample Mean

6
6
_
_
_
_ X=4.8
X=4.8

5
5
4
4
3
3
2
2

LCL=2.404
LCL=2.404
1
1

2
2

3
3

4
4

5
6
5
6
Sample
Sample

7
7

8
8

9
9

10
10

13-28

Example 13-2 using Minitab

Chartof
ofDelivery
DeliveryTimes
Times
RRChart
UCL=6.029
UCL=6.029

6
6

Sample Range
Sample Range

5
5
4
4
3
3

_
_
R=2.342
R=2.342

2
2
1
1
0
0

LCL=0
LCL=0
1
1

2
2

3
3

4
4

5
6
5
6
Sample
Sample

7
7

8
8

9
9

10
10

13-29

Example 13-2 using Minitab

S Chart of Delivery Times
S Chart of Delivery Times

3.5
3.5

UCL=3.149
UCL=3.149

3.0
3.0

Sample StDev
Sample StDev

2.5
2.5
2.0
2.0
1.5
1.5

_
_ S=1.226
S=1.226

1.0
1.0
0.5
0.5
0.0
0.0

LCL=0
LCL=0
1
1

2
2

3
3

4
4

5
6
5
6
Sample
Sample

7
7

8
8

9
9

10
10

Based on the x-bar, R, and s charts, the process

seems to be in control.

13-6 The p Chart: Proportion of

Defective Items
Elementsofofaacontrol
controlchart
chartfor
forthe
theprocess
process
Elements
proportion:
proportion:
Centerline:
line: pp
Center
p(1--p)p)
p(1--p)p)
p(1
p(1
LCL: pp--33
UCL: pp++33
LCL:
UCL:
nn
nn
where: nnisisthe
thenumber
numberofofelements
elementsinineach
each
where:
sample
sample
theproportion
proportionofofdefectives
defectivesinin
ppisisthe
thecombined,
combined,overall
overallsample
sample
the

13-30

13-31

13-6 The p Chart: Proportion of Defective Items

Using the Template for Example 13-3

Process is out of control Two points fall outside the control limit

13-6 The p Chart: Proportion of Defective

Items Using Minitab for Example 13-3
P Chart of Defectives
P Chart of Defectives

0.4
0.4

0.3
0.3

Proportion
Proportion

UCL=0.2624
UCL=0.2624

0.2
0.2
_
_ P=0.1125
P=0.1125

0.1
0.1

0.0
0.0
1
1

2
2

3
3

4
4

5
5

6
7
6
7
Sample
Sample

8
8

9
9

LCL=0
LCL=0
10
11
12
10
11
12

Process is out of control Two points fall outside the control limit

13-32

13-33

13-7 The c Chart: (Defects Per Item)

Elementsof
ofaacontrol
controlchart
chartfor
forthe
thenumber
number
Elements
ofimperfections
imperfectionsper
peritem,
item, c:c:
of
Centerline:
line: cc
Center
LCL: cc--33 cc UCL:
UCL: cc++33 cc
LCL:
where: ccisisthe
theaverage
averagenumber
numberof
ofdefects
defects
where:
imperfectionsper
peritem
item(or
(orarea,
area,
ororimperfections
volume, etc.
etc.))
volume,

The c Chart: Example 13-4 using the

Template

13-34

Observe that one observation is outside the upper control limit,

indicating that the process may be out of control. The general
downward trend should be investigated.

The c Chart: Example 13-4 using

Minitab

13-35

C Chart of Nonconformaties
C Chart of Nonconformaties

18
18

16
16

UCL=15.81
UCL=15.81

Sample Count
Sample Count

14
14
12
12
10
10

_
_ C=7.56
C=7.56

8
8
6
6
4
4
2
2
0
0

LCL=0
LCL=0
1
1

3
3

5
5

7
7

9
9

11 13 15 17 19 21 23 25
11 13 15 17 19 21 23 25
Sample
Sample

Observe that one observation is outside the upper control limit,

indicating that the process may be out of control. The general
downward trend should be investigated.

13-36

13-8 The x Chart

Sometimes we
we are
areinterested
interested in
in
Sometimes
controlling the
the process
process mean,
mean, but
but
controlling
ourobservations
observations come
come so
so slowly
slowly
our
from the
the production
production process
process that
that
from
we cannot
cannotaggregate
aggregatethem
them into
into
we
groups. In
In such
such case
case we
we may
may
groups.
consideran
an xx chart.
chart. An
An x-chart
x-chart
consider
chart for
forthe
the raw
rawvalues
values of
of
isis aa chart
the variable
variable in
in question.
question.
the

The chart is
effective if the
variable has an
approximate
normal
distribution. The
bounds are 3
standard
deviations from
the mean of the
process.

13-8 The x Chart for Example 13-3

Using Minitab
I Chart of Defectives
I Chart of Defectives
20
20

UCL=17.80
UCL=17.80

Individual Value
Individual Value

15
15
10
10
_
_ X=4.5
X=4.5

5
5
0
0
-5
-5
-10
-10

LCL=-8.80
LCL=-8.80
1
1

2
2

3
3

4
4

5
5

6
7
8
6
7
8
Observation
Observation

9
9

10
10

11
11

12
12

NOTE: The X-Chart

Is same as the
Individual chart in
Minitab

13-37

13-8 The x Chart for Example 13-4

Using Minitab
Chartof
ofNonconformaties
Nonconformaties
I IChart
20
20

UCL=18.75
UCL=18.75

Individual Value
Individual Value

15
15

10
10

_
_X=7.56
X=7.56

5
5

0
0

-5
-5

LCL=-3.63
LCL=-3.63
1
1

3
3

5
5

7
7

9
9

11 13 15 17 19 21 23 25
11 13 15 17 19 21 23 25
Observation
Observation

13-38