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IE 430 Quality Control

Part 1

Erin Gerber, PhD

Lecturer and Post Doctoral Researcher
Department of Industrial Engineering

Phone: 502-922-6543
Email: e.gerber@louisville.edu

2014, Erin Gerber, PhD IE 430 Quality Control Page 2
Course Objectives
1. Understand the impact of quality on all
types of organizations.
2. Apply tools for improving the quality of
industrial processes.
3. Design factorial experiments and analyze
data to improve product quality
Students who complete this course will be
able to:
IE 430 Quality Control Page 3
Course Information
Text:
Montgomery, D. C., Introduction
to Statistical Quality Control, 7th
Edition, Wiley, 2013.
Grading:
2 Regular Exams 50%
Final Exam 25%
Homework 25%

All exams will be closed-book, closed-
notes.
A 4x6 formula sheet will be allowed
for each exam.
All homework are due by the end of
class on the day assigned. Late
assignments will not be accepted.
Any work you submit must be your own.
Copying another student's homework
will be considered cheating and will be
dealt with using the university's
established policy on academic
dishonesty.

Course Grades:
90-100 A
80-89 B
70-79 C
60-69 D
<60 F

2014, Erin Gerber, PhD
IE 430 Quality Control Page 4
Week # Date
Tuesday Thursday
1 1/6 Syllabus, Intro (Ch1: 1.1 & 1.2) Intro (Ch 1: 1.1 & 1.2)
2 1/13 Basic Statistical Concepts (Ch 3) Basic Statistical Concepts (Ch 3)
3 1/20 Quality Improvement Tools (Ch 5) Quality Improvement Tools / Overview of SPC
(Ch 5)
4 1/27 Overview of SPC (Ch 5) Exam 1 Review
5 2/3 Control Charts for Variables (Ch 6) Exam 1
6 2/10 Control Charts for Variables (Ch 6) Control Charts for Attributes (Ch 7)
7 2/17 Control Charts for Attributes (Ch 7) Process Capability and Ratios (Ch 8)
8 2/24 Gage R&R (Ch 8) Exam 2 Review
9 3/3 TBD Exam 2
10 3/10 SPRING BREAK SPRING BREAK
11 3/17 Other Techniques (Ch 9) Other Techniques (Ch 9)
12 3/24 Six Sigma and ISO 9000 Design of Experiments (Ch 13)
13 3/31 Design of Experiments (Ch 13) Design of Experiments (Ch 13)
14 4/7 Final Exam Review (New Material) Final Exam Review (Exam 1 Material)
15 4/14 Final Exam Review (Exam 2 Material) TBD
16 4/21 READING DAY Final Exam is Monday, April 28,
8:00am - 10:30 am

2014, Erin Gerber, PhD
IE 430 Quality Control Page 5
Section 1 Introduction to Quality
2014, Erin Gerber, PhD
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What is Quality?
2014, Erin Gerber, PhD
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Dimensions of Quality
Performance (will the product do the intended job?)
Reliability (how often does the product fail?)
Durability (how long does the product last?)
Serviceability (how easy is it to repair the product?)
Aesthetics (how good is the products visual appeal?)
Features (what does it do?)
Perceived Quality (what is the reputation of the product?)
Conformance to standards (does the product meet specs?)

2014, Erin Gerber, PhD
[1.1.1]
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Additional Factors of Quality
for Service Industry
Responsiveness (how long did it take the service provider to
reply to your request?)
Professionalism (how knowledgeable and skilled was the
service provider?)
Attentiveness (was the service provider personable?
Caring? etc.)
2014, Erin Gerber, PhD
[1.1.1]
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Traditional Definition

Quality means fitness for use


Two Parts:
Quality of design (intentional)
Quality of conformance (meeting specs)
2014, Erin Gerber, PhD
[1.1.1]
IE 430 Quality Control Page 10
Traditional Definition
Quality of design (intentional)
Ford vs. Mercedes
Size, Power, Materials

Quality of conformance (meeting specs)
Effected by: manufacturing processes chosen,
Training/supervision, types of process
controls/tests/inspections, extent to which procedures are
followed, workforce motivation
Tend to focus on this more than on design
Leads to focus on quality fixes in mfg rather than in design
2014, Erin Gerber, PhD
[1.1.1]
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A Better Definition
Quality means fulfilling customer expectation

Allows for comparison of vastly different items

Places the customer as the judge

Eliminates focus on meeting specs


2014, Erin Gerber, PhD
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Other Definitions of Quality
Quality is inversely proportional to variability.

As variation , quality


Quality Improvement: the reduction of
variability in products and processes.

Reduction of variability also means reduction of
waste!

2014, Erin Gerber, PhD
[1.1.1]
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Types of Quality Characteristics
Quality Characteristics (critical-to-quality (CTL)
characteristics) may be of several types:

Physical: length, weight, voltage, viscosity

Sensory: taste, appearance, color

Time orientation: reliability, durability,
serviceability.

2014, Erin Gerber, PhD
[1.1.2]
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Additional Quality Terminology
Quality Engineering: the set of operational,
managerial, and engineering activities used by a
company to control quality output and standards.
Variability: slight differences in products and
process runs.
Attributes: usually discrete data, such as counts
(ex: number of defects on a part).
Variables: continuous measurements, such as
length, voltage, or viscosity.

2014, Erin Gerber, PhD
[1.1.2]
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Additional Quality Terminology
Specifications: desired measurements or values for
characteristics of a product or process.
Upper Specification Limit (USL) and Lower Specification Limit (LSL)
Nominal/target value: a value of measure that
corresponds to the desired value for that quality
characteristic.
Non-conforming parts: parts that fail to meet
specifications.
Defects: nonconformities that are serious enough to
significantly affect the safe or effective use of the product.

2014, Erin Gerber, PhD
[1.1.2]
IE 430 Quality Control Page 16
So What Do Customers Expect?
PERFECT!
Defect free

FREE!
Low cost

NOW!
ASAP
2014, Erin Gerber, PhD
IE 430 Quality Control Page 17
How Do We Accomplish All 3?
Defect
Elimination
Cost
Reduction
Cycle Time
Reduction
Increased
Customer
Satisfaction
2014, Erin Gerber, PhD
IE 430 Quality Control Page 18
100 parts per day (cost $20 each to make)
75% first-pass yield
60% of fallout can be re-worked for $4
Good parts (75 + .6(25))=90

Cost of good part =


An Example
part / 89 . 22 $
90
) 15 ( 4 $ ) 100 ( 20 $
=
+
2014, Erin Gerber, PhD
IE 430 Quality Control Page 19
Example continued..
100 parts per day (cost $20 each to make)
95% first-pass yield
60% of fallout can be re-worked for $4
Good parts (95 + .6(5)) = 98/day

Cost of good part =

8.8% increased production, 10.3% reduced cost
part / 53 . 20 $
98
) 3 ( 4 $ ) 100 ( 20 $
=
+
2014, Erin Gerber, PhD
I E 430 Quality Control Page 20
A Brief Quality Timeline
1700 Quality controlled by craftsmen
1875 Frederick Taylor introduces Scientific Management
1900 Ford uses assembly lines
1924 Walter Shewhart introduces use of control chart at Bell Labs
1942 SPC training is given to industries in US
1946 W. Edwards Deming invited to Japan by US War Dept. to lecture
1950 SPC is widely taught in Japan
1960 SPC courses begin to be taught in Industrial Engineering programs
1975 Books on Designed Experiments for Engineers appear
1988 Malcolm Baldrige National Quality Award established by U.S. Congress
1989 Motorola introduces Six-Sigma concepts
1990 ISO 9000 certification activities increase
2000 Growth of Six Sigma, Lean/Sigma programs, certifications
2014, Erin Gerber, PhD
[1.2]
Walter A. Shewhart (1897-1961)
IE 430 Quality Control Page 21
Trained in engineering and physics
Long career at Bell Labs
Developed the first control chart
about 1924
2014, Erin Gerber, PhD
W. Edwards Deming (1900-1993)
IE 430 Quality Control Page 22

Taught engineering, physics in
the 1920s, finished PhD in 1928
Met Walter Shewhart at Western
Electric
Long career in government
statistics, USDA, Bureau of the
Census
During WWII, he worked with US
defense contractors, deploying
statistical methods
Sent to Japan after WWII to work
on the census
2014, Erin Gerber, PhD
IE 430 Quality Control Page 23
Demings 14 Points
1. Create a constancy of purpose
focused on improvement.
2. Adopt a new philosophy of
rejecting defective products and
services.
3. Do not rely on mass inspection
to control quality.
4. Do not reward business to
suppliers on the basis of price
alone.
5. Focus on continuous
improvement.
6. Invest in modern training.
7. Practice modern supervision by
improving processes and
employees.


8. Drive out fear (management by
fear).
9. Break down barriers between
functional areas of the business.
10. Eliminate targets, slogans. Work
instead to improve the system.
11. Eliminate numerical quotas and
work standards.
12. Remove barriers that discourage
employees from doing their jobs,
by acting on their suggestions
and complaints.
13. Implement on-going education
for all employees
14. Create a management structure
that advocates the first 13 points

Note that the 14 points are about change
2014, Erin Gerber, PhD
Joseph Juran (1904-2008)
IE 430 Quality Control Page 24
Born in Romania
immigrated to the US
Worked at Western Electric,
influenced by Walter
Shewhart
Emphasizes a trilogy
planning, control,
improvement
Juran Institute is still an
active organization
promoting the Juran
philosophy and quality
improvement practices
2014, Erin Gerber, PhD
IE 430 Quality Control Page 25
Recent History of Quality in U.S.
Lack of Competition after WW II
Production Oriented Philosophy
Short-term Reward System
Lack of Quality education
Use of Quality Control Department
Reliance on Inspection (acceptance sampling)

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I E 430 Quality Control Page 26
The Pipeline Analogy
2014, Erin Gerber, PhD
IE 430 Quality Control Page 27
Exercise - Inspection Test
IMAGINE FOR ONE MOMENT THAT EACH OF THE ONE HUNDRED AND
FORTY-ONE WORDS OF THIS PARAGRAPH IS A SEPARATE COMPONENT
FROM A FIRST SHIFT PRODUCTION RUN OF FOURTEEN-INCH FLYWHEELS.
YOU ARE ONE OF FIVE INSPECTORS PERFORMING THE FINAL INSPECTION
OF THESE FINISHED COMPONENETS WHICH WERE PRODUCED ON FOUR
FAIRLY SMALL DIAL INDEX MACHINES WHICH ARE NOT BEING
CONTROLLED THROUGH THE USE OF STATISTICAL TECHNIQUES. AS CAN
BE EXPECTED FROM AN OPERATION OF THIS NATURE, THERE ARE A
NUMBER OF DEFECTIVE COMPONENTS BEING PRODUCED. EACH WORD
THAT CONTAINS AN F REPRESENTS A DEFECT. HOW MANY OF THE
DEFECTIVE COMPONENTS ARE YOU ABLE TO FIND? CHECK AGAIN AND
INSPECT FOR THE PRESENCE OF FS. WRITE YOUR FINAL COUNT IN THE
BOTTOM LEFT HAND CORNER OF THIS PAGE. THIS EXAMPLE SHOULD
GIVE YOU A FAIR IDEA OF HOW RELIABLE 100% INSPECTION CAN BE.
Result__________
2014, Erin Gerber, PhD
IE 430 Quality Control Page 28
How Good is 99% Quality?
5.5 misspelled words per page of average book
4000 lost articles of mail per minute (584M/day)
40,000 incorrect laser vision surgeries /yr (4M/yr)
8.19 million incorrect prescriptions per year at
Walgreens stores alone (819 M/yr)

2014, Erin Gerber, PhD
IE 430 Quality Control Page 29
Quality Maturity
Inspection
SPC
DOE
Time
2014, Erin Gerber, PhD
[1.3]
IE 430 Quality Control Page 30
Quality Costs
GOOD
Prevention
Training
Process design & control
Quality Engineering
Data Acquisition
Appraisal
Inspection
Testing
Audits

BAD
Internal Failures
Scrap
Rework
Downtime
Yield Loss
External Failures
Repairs/warranty
Liability
Loss of business



2014, Erin Gerber, PhD
IE 430 Quality Control Page 31
Optimal Level of Quality?
Quality Level
Bad Good
$
Internal &
External
Failures
Prevention
& Appraisal
2014, Erin Gerber, PhD
IE 430 Quality Control Page 32
Points for Consideration
Customers want defect free, on time, low
cost products and services
Defects happen for a reason
Defects are eliminated by finding the
causes
The Goal is Continuous Improvement
Everyone is responsible for Quality!
2014, Erin Gerber, PhD
IE 430 Quality Control Page 33
Section 2 Basic Statistical Concepts
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IE 430 Quality Control Page 34
What Are Statistics?
. A branch of mathematics dealing with the
collection, analysis, interpretation,
presentation of masses of numerical data.
Types:
1. Descriptive - describe a subject or group
2. Inductive -measures that help to make
inferences about a large group
(population) from a small group of
data (sample).
2014, Erin Gerber, PhD
IE 430 Quality Control Page 35
Data about Quality Characteristics
Variables Data:
Length;
Weight:
Volume:
Time.
Attributes Data:
Counts of
defects;
Number of
defective units:
Go/no-go.
Forms the basis for action and decision making.
Raw data must be converted to information.
Basic Types:
2014, Erin Gerber, PhD
IE 430 Quality Control Page 36
Variation in Quality Characteristics
No two things are ever exactly alike.
Variation in output comes from:
Materials
Machines
Methods
Measurement
Environment
People
Variation can be measured.
By measuring variation, we can begin to
understand its causes.
2014, Erin Gerber, PhD
IE 430 Quality Control Page 37
Describing Variation
Size
Size Size
Size Size Size
2014, Erin Gerber, PhD
[3.1]
Histograms
Histograms can help us visualize the general shape of
the distribution

28 26 24 22 20 18 16
30
25
20
15
10
5
0
C2
F
r
e
q
u
e
n
c
y
Histogram of C2
42 36 30 24 18 12 6 0
120
100
80
60
40
20
0
C3
F
r
e
q
u
e
n
c
y
Histogram of C3
16 14 12 10 8 6 4
60
50
40
30
20
10
0
C1
F
r
e
q
u
e
n
c
y
Histogram of C1
Page 38 2014, Erin Gerber, PhD
[3.1.2]
IE 430 Quality Control Page 39
Creating a Histogram - Steps 1 & 2
Defined: a graphical representation of frequency data.
Step 1: Collect the measurements.
Step 2: Mark the smallest and largest value in the data.
32 44 44 42 57
26 51 23 33 27
42 46 43 45 44
53 37 25 38 44
36 40 36 48 55
47 40 58 45 38
32 39 43 31 45
41 37 31 39 33
20 50 33 50 51
28 51 40 52 43
Shaft endplay (0.001 inch)
2014, Erin Gerber, PhD
IE 430 Quality Control Page 40
Creating a Histogram - Steps 3 & 4
Step 3: Calculate the range of measurements.
58 - 20 = 38
Step 4: Select the number of intervals.
Number of Readings Number of Intervals
Fewer than 50 5 to 7
50 to 100 6 to 10
101 to 150 7 to 12
more than 150 10 to 12
Guidelines for determining the number of intervals
2014, Erin Gerber, PhD
maximum minimum = range
For exact number: # =
Effects of # of intervals
5 bin and 12 bin histograms for same data
# of bins / intervals can effect shape
35 30 25 20 15 10
9
8
7
6
5
4
3
2
1
0
data
F
r
e
q
u
e
n
c
y
Histogram of data
36 30 24 18 12
18
16
14
12
10
8
6
4
2
0
data
F
r
e
q
u
e
n
c
y
Histogram of data
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IE 430 Quality Control Page 42
Creating a Histogram - Steps 5 & 6
Step 5: Determine the intervals and boundaries.
Width of interval = range/intervals;
38 / 8 = 4.75;
round up to 5.0;
make boundaries so that no values fall on them.
2014, Erin Gerber, PhD
minimum
Midpoint Interval Boundaries
22.5 20 - 25 19.5 - 24.5
27.5 25 - 30 24.5 - 29.5
32.5 30 - 35 29.5 - 34.5
37.5 35 - 40 34.5 - 39.5
42.5 40 - 45 39.5 - 44.5
47.5 45 - 50 44.5 - 59.5
52.5 50 - 55 59.5 - 54.5
57.5 55 - 60 54.5 - 59.5
maximum
(or greater)
less than
minimum
maximum
(or greater)
IE 430 Quality Control Page 43
Creating a Histogram - Steps 5 & 6
Step 6: Determine the frequencies using a tally sheet.
2014, Erin Gerber, PhD
Tally and Frequency of Readings in Each Interval
Midpoint Interval Boundaries Tally Frequency
22.5 20 - 25 19.5 - 24.5 2
27.5 25 - 30 24.5 - 29.5 4
32.5 30 - 35 29.5 - 34.5 7
37.5 35 - 40 34.5 - 39.5 8
42.5 40 - 45 39.5 - 44.5 13
47.5 45 - 50 44.5 - 59.5 6
52.5 50 - 55 59.5 - 54.5 7
57.5 55 - 60 54.5 - 59.5 3

50
IE 430 Quality Control Page 44
Creating a Histogram - Step 7
0
2
4
6
8
10
12
14
17 22 27 32 37 42 47 52 57 62
Shaft Endplay (0.001 inch)
F
r
e
q
u
e
n
c
y
Frequency Histogram of
Shaft Endplay
Step 7: Prepare the histogram.
2014, Erin Gerber, PhD
Histograms in Minitab
Enter data in single column
Graph
Histogram
Simple
Enter column
IE 430 Quality Control 2014, Erin Gerber, PhD
Histograms in Minitab
2000 1600 1200 800 400
14
12
10
8
6
4
2
0
C1
F
r
e
q
u
e
n
c
y
Histogram of C1
IE 430 Quality Control Page 46 2014, Erin Gerber, PhD
Histograms in Minitab
Minitab automatically determines the number of bins
If you want to change number of bins:
Double click on x axis of histogram
Choose Binning tab
Enter number of intervals
IE 430 Quality Control Page 47 2014, Erin Gerber, PhD
Histograms in Minitab

2400 2000 1600 1200 800 400
25
20
15
10
5
0
C1
F
r
e
q
u
e
n
c
y
Histogram of C1
IE 430 Quality Control Page 48 2014, Erin Gerber, PhD
Histogram in Excel
Enter data in single column
Data Analysis
Histogram

IE 430 Quality Control 2014, Erin Gerber, PhD
Histogram in Excel
IE 430 Quality Control Page 50 2014, Erin Gerber, PhD
Histograms in Excel
Data Analysis
Histogram
Enter column of bin upper
bounds
IE 430 Quality Control Page 51
Histograms in Excel

IE 430 Quality Control Page 52 2014, Erin Gerber, PhD
IE 430 Quality Control Page 53
Distribution Features
Location: the point along a line where the data tends to fall.
Spread: the amount of variation that is present in the data.
Shape: the characteristic pattern of the data.
Location Spread Shape
2014, Erin Gerber, PhD
IE 430 Quality Control Page 54
Numerical Measures of Data
1. Location:
Measure of central tendency
Is called the mean or .
We can only estimate using a statistic.
The statistic must be calculated from a sample of n
items.
Several statistics can be used:

sample the in alue frequent v most the - ) ' ( mode
sample the in value middle the - )
~
( median
sample the of average the - ) ( mean
X
X
X
-
-
-
2014, Erin Gerber, PhD
[3.1.3]
IE 430 Quality Control Page 55
Means can be deceiving!
Two different companies, each with five
employees, advertise an average salary of
$50,000
Company A Company B
Emp 1 41,000 10,000
Emp 2 42,000 10,000
Emp 3 51,000 10,000
Emp 4 55,000 10,000
Emp 5 61,000 210,000
Average 50,000 50,000
2014, Erin Gerber, PhD
IE 430 Quality Control Page 56
Quantitative Measures of Data
2. Spread:
Measure of variation (dispersion)
Is called the standard deviation or o.
We can only estimate o using a statistic.
The statistic must be calculated from a sample of n items.
Several statistics can be used:

Range (R) difference between smallest and largest
Not very good for large samples (>10)
Sample Standard Deviation (s)
average of the sum of squared deviations from the
mean


2014, Erin Gerber, PhD
[3.1.3]
*note: Variance (o) = standard
deviation (o) squared.
IE 430 Quality Control Page 57
How to Calculate Spread Statistics
min max
X X R =
1 n
) X (X
n
1 i
2
i

=
s
Range:
*Note s
2
is referred to as sample variance
Sample Standard
Deviation:
2014, Erin Gerber, PhD
[3.1.3]
Salary Example Revisited
IE 430 Quality Control Page 58
Company A Company B
Emp 1 41,000 10,000
Emp 2 42,000 10,000
Emp 3 51,000 10,000
Emp 4 55,000 10,000
Emp 5 61,000 210,000
Average 50,000 50,000
Std. Dev. 8,544 89,443
Range 20,000 200,000
2014, Erin Gerber, PhD
Samples vs. Populations
Histograms, Box-Plots, and statistics (like X
and s) apply to samples.
We aim to analyze data from samples, and
make inferences about the population.
IE 430 Quality Control Page 59
Population
All cars to be made this
year by Ford
Sample
A group of 10 cars selected
from the assembly line.
Statistics s (s), x Parameters o (o),
2014, Erin Gerber, PhD
[3.1.3]
Probability Distributions
IE 430 Quality Control Page 60
a mathematical model that relates the value of a
random variable with its probability of occurrence
in the population.
2014, Erin Gerber, PhD
[3.1.5]
Discrete vs. Continuous
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Sometimes called a
probability mass function
Sometimes called a
probability density function
2014, Erin Gerber, PhD
[3.1.5]
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The Normal Distribution
Bell-shaped curve that describes many natural processes.
Uniquely defined by two parameters, , and o.
Probabilities are defined as areas under the curve.
-3o -2o -1o +1o +2o +3o
68.26%
95.46%
99.73%
2014, Erin Gerber, PhD
[3.3.1]
The Normal Distribution
Notation used: N(,
2
)
above e.g. N(5,1); N(5,4); N(15,1)
Normal Distribution has 2 parameters: and
2
IE 430 Quality Control Page 55 2014, Erin Gerber, PhD
IE 430 Quality Control Page 64
Normal Distribution
< < =
|
.
|

\
|

x e x f
x
2
2 / 1
2
1
) (
o

t o
}

= = s
a
dx x f a F a X P ) ( ) ( ) (
cannot evaluate integral in closed form
must use change of variable
2014, Erin Gerber, PhD
[3.3.1]
IE 430 Quality Control Page 65
Standard Normal
2014, Erin Gerber, PhD
[3.3.1]
N(40, 2)
Standard
Normal
N(0, 1)
Standardizing
IE 430 Quality Control Page 66
Standard Normal
) ( ) (
) 1 , 0 ( ~
Z
x
Z P x X P
N Z
x
Z
u =
|
.
|

\
|

s = s

=
o

Use Standard Normal Tables (Appendix) to


lookup probabilities.
Many variations
2014, Erin Gerber, PhD
[3.3.1]
STANDARDIZING: changes any normal distribution into a standard normal dist.
IE 430 Quality Control Page 67
Standard Normal Tables
2014, Erin Gerber, PhD
[3.3.1]
IE 430 Quality Control Page 68
Standard Normal Tables
2014, Erin Gerber, PhD
[3.3.1]
Standard Normal Tables
Tables in book only have + values of Z
(-Z) = 1 - (+Z) symmetrical dist.

Probabilities are CUMULATIVE
(Z) = Probability(Z z)
*The probability of obtaining any value
LESS than or equal to some value (z).

If you need the value of Z>z:
P(Z > z) = 1 - P(Z z) probabilities sum to 1

2014, Erin Gerber, PhD IE 430 Quality Control Page 69
[3.3.1]
IE 430 Quality Control Page 70
Example
Suppose a random variable X is normally
distributed with =40.5 and o=8.97
What is P(X<30)?

% 1 . 12 1210 . ) 17 . 1 (
17 . 1
97 . 8
5 . 40 30
= = u
=

= Z
30 40.5
s=8.97
2014, Erin Gerber, PhD
IE 430 Quality Control Page 71
Example Continued
What is P(38 < X < 48)?

4098 . 0 3897 . 7995 . ) 48 38 (
7995 . ) 84 . 0 (
84 . 0
97 . 8
5 . 40 48
3897 . ) 28 . (
28 . 0
97 . 8
5 . 40 38
= = < <
= u
=

=
= u
=

=
X P
Z
Z
38 40.5
o=8.97
48
2014, Erin Gerber, PhD
Finding Values of X
I E 430 Quality Control Page 72
What value of the random variable generates an
area to the left under the normal curve of 91%?
(look up 0.91 in body of standard normal table)
Z
0.91
=1.34
34 . 1
97 . 8
5 . 40
=

=
x
Z
X =
2014, Erin Gerber, PhD
[3.3.1]
Solve for X
IE 430 Quality Control Page 73
A Graphical Test for Normality
Rank n data points from smallest to largest
For data point i, find p
i
=100(i-0.5)/n
Plot x
i
vs. p
i
on Normal paper, OR
Plot x
i
vs, Z
p
i
on linear paper

If points plot as a straight line, assume normality
Many other statistical tests possible
Shapiro-Wilks, Kologorov-Smirnov, Lilliefors, etc.
How do you know if your data is normal?
2014, Erin Gerber, PhD
[3.4.1]
IE 430 Quality Control Page 74
i x
i
(i-.5)/n z
1 197 0.025 -1.96
2 205 0.075 -1.44
3 214 0.125 -1.15
4 215 0.175 -0.93
5 220 0.225 -0.76
6 231 0.275 -0.60
7 234 0.325 -0.45
8 243 0.375 -0.32
9 260 0.425 -0.19
10 263 0.475 -0.06
11 265 0.525 0.06
12 265 0.575 0.19
13 267 0.625 0.32
14 268 0.675 0.45
15 274 0.725 0.60
16 281 0.775 0.76
17 286 0.825 0.93
18 299 0.875 1.15
19 307 0.925 1.44
20 318 0.975 1.96
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
150 200 250 300 350
Example Burst Strength Data
2014, Erin Gerber, PhD
IE 430 Quality Control Page 75
Normal
Probability Paper
i x
i
(i-.5)/n z
1 197 0.025 -1.96
2 205 0.075 -1.44
3 214 0.125 -1.15
4 215 0.175 -0.93
5 220 0.225 -0.76
6 231 0.275 -0.60
7 234 0.325 -0.45
8 243 0.375 -0.32
9 260 0.425 -0.19
10 263 0.475 -0.06
11 265 0.525 0.06
12 265 0.575 0.19
13 267 0.625 0.32
14 268 0.675 0.45
15 274 0.725 0.60
16 281 0.775 0.76
17 286 0.825 0.93
18 299 0.875 1.15
19 307 0.925 1.44
20 318 0.975 1.96
200 300
2014, Erin Gerber, PhD
Probability Plots in Minitab
Enter data in single column
Graph
Probability Plot (NOT Probability Distribution Plot)
Enter column
Choose distribution
(default: Normal Distr)
IE 430 Quality Control Page 68 2014, Erin Gerber, PhD
Probability Plots in Minitab
Straight fitted distribution line (middle blue line) a good fit?
High P-Value (close to 1) and Low AD Stat (close to 0) indicate good fit
P-value is probability this distribution is a good fit

3000 2500 2000 1500 1000 500 0
99.9
99
95
90
80
70
60
50
40
30
20
10
5
1
0.1
C1
P
e
r
c
e
n
t
Mean 1404
StDev 402.4
N 70
AD 0.250
P-Value 0.735
Probability Plot of C1
Normal - 95% CI
IE 430 Quality Control Page 69 2014, Erin Gerber, PhD
Probability Plots in Minitab
Straight fitted distribution line good fit?
High P-Value (close to 1) and Low AD Stat (close to 0) indicate good fit
10000 1000 100 10 1
99.9
99
90
80
70
60
50
40
30
20
10
5
3
2
1
0.1
C1
P
e
r
c
e
n
t
Mean 1404
N 70
AD 16.303
P-Value <0.003
Probability Plot of C1
Exponential - 95% CI
IE 430 Quality Control Page 70 2014, Erin Gerber, PhD
IE 430 Quality Control Page 79
Variation and Specifications
All products have specifications set by the customer.
Separates defective versus non-defective.
Typically stated as Nominal Tolerance.
Nominal
LSL USL
The goal is to produce all
parts at the nominal value.
2014, Erin Gerber, PhD
IE 430 Quality Control Page 80
Process Fallout
Defined as the fraction of items that fall outside the
specifications.
Process should be centered between specifications.
Reducing variation is the way to reduce fraction defective.
Target

Fallout
Fallout
LSL
USL
2014, Erin Gerber, PhD
Process Fallout Example
The thickness of glass sheets produced by a certain process are
normally distributed with a mean of 3.00mm and a standard
deviation of 0.12mm. 10,000 units are produced. LSL =
2.78mm. USL = 3.15mm.
1. What is the probability a sheet will exceed the USL? How many
sheets do you expect to exceed the USL?
Process Fallout Example
2. What is the probability a sheet will not meet the LSL? How
many sheets do you expect will not meet the LSL?

Process Fallout Example
3. What is the probability a glass sheet will meet specificiations?
How many sheet do you expect to meet specs?

IE 430 Quality Control Page 84
A Modern Definition
Quality is inversely proportional to variation

As variation decreases, quality increases.
Ford vs. Mazda transmissions

Ford
Mazda
USL LSL
Taguchi, G. and D. Clausing, D. Robust Quality, Harvard Business Review, Jan Feb 1990.
2014, Erin Gerber, PhD
Homework #1
2008, John S. Usher, PhD, PE I E 430 Quality Control Page 85
Problem Points
Total
100
IE 430 Quality Control Page 86
Section 3 Quality Improvement Tools
2014, Erin Gerber, PhD
IE 430 Quality Control Page 87
1. Process Flow Diagrams
2. Cause and Effect Diagrams
3. Histograms
4. Pareto Charts
5. Scatter Plots
6. Control Charts
7. Designed Experiments
2014, Erin Gerber, PhD
IE 430 Quality Control Page 88
1. Process Flowcharts
Definition: A diagram that uses graphic symbols to
depict the flow of steps in a process.

Promotes process understanding
Acts as a training tool
Identifies areas for process design & improvement
Enables effective communication

2014, Erin Gerber, PhD
[5.7]
I E 430 Quality Control Page 89
Commonly Used Symbols
2014, Erin Gerber, PhD
[5.7]
I E 430 Quality Control Page 90
Commonly Used Symbols
2014, Erin Gerber, PhD
[5.7]
Storage


Product Movement
(or Transport)


Delay D
IE 430 Quality Control Page 91
The Linear Flowchart
Depicts all steps in a process
Acts as a primary process map.
2014, Erin Gerber, PhD
[5.7]
IE 430 Quality Control Page 92
Employee
Manager
Payroll
Accounting
Submits Time
Card
Updates
Financial
System
Distribute
Checks to
Departments
Print Out
Checks
Enter Time
Card Data
Signs Card
Submits to
Payroll
Reviews Time
Card
Revises Time
Card
Correct?
N
Y
Send Payroll
Report to
Accounting
Pick up Check
Functional Flowchart
2014, Erin Gerber, PhD
[5.7]
IE 430 Quality Control Page 93
Examining the Flowchart
At each process step, look for:
Bottlenecks/Sources of delay
Errors being fixed instead of prevented (rework)
Role ambiguity (we didn't know who...)
Duplications or unnecessary steps
Non-value added steps
At each decision point, look for:
Authority ambiguity (two or more people get to decide...)
Are the decisions needed at this point?
At any cycle (rework loop), look for:
Possibly eliminating the step(s) or doing in less time, or trying to
prevent

2014, Erin Gerber, PhD
[5.7]
IE 430 Quality Control Page 94
The Seven Deadly Wastes
1. Waste from overproduction
2. Waste of waiting time
3. Transportation waste
4. Processing waste
5. Inventory waste
6. Waste of motion
7. Waste from defects
2014, Erin Gerber, PhD
IE 430 Quality Control Page 95
2. Cause and Effect Diagrams
Definition: A tool that helps identify, sort, and display
possible causes of a specific process problem.

Ishikawa or fishbone diagram
Helps determine root causes
Encourages group participation
Uses an orderly, easy-to-read format
Indicates possible causes of variation
Increases process knowledge
Identifies areas for collecting data
2014, Erin Gerber, PhD
[5.4]
IE 430 Quality Control Page 96
2. Cause and Effect Diagram
2014, Erin Gerber, PhD
IE 430 Quality Control Page 97
Creating Your Chart
1. Identify and Define the Effect
Can be positive objective or negative problem
2. Draw in the spine.
Begin at left-hand side of paper and draw arrow to effect
3. Add the main causes.
Use general categories
4. Add detailed cause on each main branch
Use as much detail as needed
5. Analyze the diagram
Look for balance in levels of detail
Identify causes for which data can be collected
Identify causes that action can be taken immediately.
2014, Erin Gerber, PhD
IE 430 Quality Control Page 98
3. Histograms
Definition: A bar chart that presents a graphical
representation of frequency data.
Graphically summarizes large sets of data.
Allows comparison of process outputs to specifications
Communicates information easily
2014, Erin Gerber, PhD
[3.1.2]
IE 430 Quality Control Page 99
Bimodal Distribution
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
32.13 32.68 33.23 33.78 34.33 34.88 35.43 35.97 36.52 37.07 37.62 38.17 38.72 39.27 39.82 40.37
F
r
e
q
u
e
n
c
y
Basic Shapes Are Important
2014, Erin Gerber, PhD
IE 430 Quality Control Page 100
Skewed
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46
11.65 13.47 15.30 17.12 18.94 20.76 22.59 24.41 26.23 28.06 29.88 31.70 33.52 35.35 37.17 38.99 40.81 42.64
F
r
e
q
u
e
n
c
y
2014, Erin Gerber, PhD
IE 430 Quality Control Page 101
4. Pareto Diagram
Definition: Ordered histogram of frequency data.
Separates vital few from trivial many

Based on Paretos law
Vilfredo Pareto (1848-1923)
Large % of wealth owned by small % of people

80-20 rule
80% of process defects arise from 20% of the process issues.
20% of your sales force produces 80% of your company revenues.
80% of delays in schedule arise from 20% of the possible causes..
80% of complaints arise from 20% of your products or services.


2014, Erin Gerber, PhD
[5.4]
IE 430 Quality Control Page 102
4. Pareto Diagram
Frequency data is grouped by category on the graph.
Highest frequency first

Usually include a cumulative percentage line plotted
within graph.

Does not always identify the most important
defectsbut rather the most frequent.

Can use weights to make less frequent but more costly
errors stand out (Ch 7)
2014, Erin Gerber, PhD
[5.4]
IE 430 Quality Control Page 103
Example Pareto Chart
2014, Erin Gerber, PhD
IE 430 Quality Control Page 104
5. Scatter Plots
Definition: A graphical display that shows the
relationships between two variables
Correlation can be positive, negative, zero

Days
Absent
Age
Days
Absent
Age
2014, Erin Gerber, PhD
[5.4]
IE 430 Quality Control Page 105
Scatter Plot - Variable X vs. Y
y = -11.962x + 41.981
R
2
= 0.8048
33.50
34.00
34.50
35.00
35.50
36.00
36.50
37.00
37.50
0.300 0.350 0.400 0.450 0.500 0.550 0.600 0.650 0.700
X
Y
2014, Erin Gerber, PhD
IE 430 Quality Control Page 106
Scatter Plot Variable X vs. Y
25.00
35.00
45.00
55.00
65.00
75.00
85.00
95.00
105.00
115.00
125.00
135.00
145.00
19.00 20.00 21.00 22.00 23.00 24.00 25.00 26.00 27.00 28.00 29.00 30.00 31.00 32.00 33.00
X
Y
2014, Erin Gerber, PhD
IE 430 Quality Control Page 107
5. Scatter Plots
BE CAREFUL!
Correlation Causality!!!
Days
Absent
Age
2014, Erin Gerber, PhD
[5.4]
There is a negative
correlation between
age and days absent,
but that DOES NOT
mean that your age
can CAUSE you to be
absent less.
IE 430 Quality Control Page 108
6. The Control Chart
Definition: A graphical display of a process over time.
Developed by Walter Shewhart, Bell Labs, 1928.
Will discuss in detail in next section!
Center Line - the average value of the process
Control Limits - a set of limits to indicate whether or not the process is in control.

2014, Erin Gerber, PhD
IE 430 Quality Control Page 109
7. Design of Experiments (DOE)
It is a test, or a series of tests, in which
purposeful changes are made to the input
variables of a process or system so that we
may observe and identify the reasons for
changes in the output response.

Our objective is to learn to conduct such
tests, so that valid conclusions are
obtained.
2014, Erin Gerber, PhD
IE 430 Quality Control Page 110
Optimizing a Chemical Process
Factors affecting yield
temperature
reaction time
Current levels
155 F, 1.7 hrs
yield is 75%
Response surface is
unknown, experiment
is needed
Time
Temp
2014, Erin Gerber, PhD
Homework #2
2008, John S. Usher, PhD, PE I E 430 Quality Control Page 111
Problem Points
TOTAL 100
IE 430 Quality Control Page 112
Section 4 Overview of SPC
2014, Erin Gerber, PhD
IE 430 Quality Control Page 113
Shewharts Notion of Variation
Common (Chance) Cause Variation:
Inherent within any process
Due to many little effects
Very difficult and expensive to eliminate.
Special (Assignable) Cause Variation:
Assignable to specific problems
Can and should be detected
Can and should be eliminated
IN-CONTROL: When only common-cause variation is present.
OUT-OF-CONTROL: When assignable causes are present.
2014, Erin Gerber, PhD
[5.3]
IE 430 Quality Control Page 114
Common Cause Variation
USL
LSL
Process is stable throughout the day
Stable system of chance causes
In Statistical Control

At the end of the day,
what will the total
output look like?
2014, Erin Gerber, PhD
[5.3]
IE 430 Quality Control Page 115
Assignable Cause A Shift in Mean
At the end of the day,
what will the total
output look like?
USL
LSL

Shift occurs
Shift
corrected

1
Defectives
Possible!
2014, Erin Gerber, PhD
[5.3]
IE 430 Quality Control Page 116
Assignable Cause A Shift in Variance
At the end of the day,
what will the total
output look like?
USL
LSL

Shift occurs
in the
variance
Shift
corrected
Defectives
Possible!
o
o
1
2014, Erin Gerber, PhD
[5.3]
IE 430 Quality Control Page 117
Assignable Cause A Trend
At the end of the day,
what will the total
output look like?
USL
LSL
Defectives
Possible!
A drift in the mean
2014, Erin Gerber, PhD
[5.3]
IE 430 Quality Control Page 118
Assignable Cause Combinations
At the end of the day,
what will the total
output look like?
USL
LSL
2014, Erin Gerber, PhD
[5.3]
IE 430 Quality Control Page 119
Detecting Assignable Causes
Take a RANDOM sample from the process
Compute a statistic from the sample:


Use knowledge about that statistic to make an
inference about the process.

1. LEAVE THE PROCESS ALONE?
2. INVESTIGATE ASSIGNABLE CAUSE?

etc) s, R, , X (
2014, Erin Gerber, PhD
IE 430 Quality Control Page 120
Distribution of
Suppose we take a sample of size 3 from a
normal process with mean =1.3 and std.
dev. o= 0.25
X
X
n
Sample 1 Sample 2 Sample 3 . Sample m
X
1
1.3 1.6 1.7 1.5
X
2
1.1 1.5 1.0 1.3
X
3
1.2 1.1 1.2 1.1
1.2 1.4 1.3 . 1.3 X
What is the distribution of ? X
2014, Erin Gerber, PhD
IE 430 Quality Control Page 121
Practical interpretation
the sum of independent random variables is approximately normally
distributed regardless of the distribution of each individual random variable
in the sum
an average is a sum (divided by a constant) so averages are approximately
normally distributed
2014, Erin Gerber, PhD
IE 430 Quality Control Page 122
Sampling From a Normal Process
o

Draw a sample of size n
Compute X
X
X
2014, Erin Gerber, PhD
IE 430 Quality Control Page 123
Making an Inference About The Process
o

X
X
2014, Erin Gerber, PhD
IE 430 Quality Control Page 124
Two Types of Error
Type I () conclude the process is OOC when it is
not!
false alarm
Boy who cried WOLF!
Detrimental to overall program

Type II () conclude the process is In-Control when it
is not!
Missing a problem when it exists
Usually results in time delay until detection


2014, Erin Gerber, PhD
IE 430 Quality Control Page 125
o

X
X
Type I - Error
o

X
X
Type II - Error
The process is
OK
But you get a
point outside
the limits and
think the
process has
shifted!
Process mean
has shifted
But you get a
point inside
the limits, and
think the
process is OK!
2014, Erin Gerber, PhD
I E 430 Quality Control Page 126
Moving out the
decision limits
decreases Type I
error rate. But.
Type II error gets
worse!
o

X
X
o

X
X
2014, Erin Gerber, PhD
IE 430 Quality Control Page 127
So Where to Set the Limits?
Shewhart suggested + 3

Prob {Type I error} = .0027

Prob{Type II error} depends on n and shift

In practice + 3 sigma limits are used
n
o
2014, Erin Gerber, PhD
IE 430 Quality Control Page 128
Standard Shewhart Charts
For any statistic Y



For

Y Y Y
Y Y Y
LCL
UCL
o
o
3
3
=
+ =
X
n
LCL
n
UCL
X
X
o

3
3
=
+ =
n
X
X
o
o

=
=
2014, Erin Gerber, PhD
[5.3]
IE 430 Quality Control Page 129
Example
=100
o=6
Sample size n=9
UCL =
LCL =

Suppose we find an = 107.5? X
2014, Erin Gerber, PhD
IE 430 Quality Control Page 130
=500
o= 12
Sample size n=4
UCL = ?
LCL = ?
Is = 512.0 out of control?
How many std dev. is this point away from ?
Exercise
X
2014, Erin Gerber, PhD
IE 430 Quality Control Page 131
Patterns on Control Charts
Points should fall according to a normal distribution.
68% between 1o from the mean.
95% between 2o from the mean.
99.7% between 3o from the mean.
Non-random patterns indicate lack of control.
UCL
LCL
2014, Erin Gerber, PhD
IE 430 Quality Control Page 132
Control Chart Patterns - Trend
Reasons:
1. Gradual deterioration of equipment, materials.
2. Changing environmental conditions.
3. Fatigue.
-3
-2
-1
0
1
2
3
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Samples
D
e
v
i
a
t
i
o
n

F
r
o
m

N
o
m
i
n
a
l

(
i
n
c
h
e
s
)
UCL
LCL
CL
2014, Erin Gerber, PhD
IE 430 Quality Control Page 133
Control Chart Patterns - Cyclical
Reasons:
1. Changes in physical environment.
2. Regular rotation of operators or equipment.
3. Fatigue.
-3
-2
-1
0
1
2
3
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Samples
D
e
v
i
a
t
i
o
n

F
r
o
m

N
o
m
i
n
a
l

(
i
n
c
h
e
s
)
UCL
LCL
CL
2014, Erin Gerber, PhD
IE 430 Quality Control Page 134
Control Chart Patterns - Stratified
Reasons:
1. Incorrect calculations of limits.
2. Mixture of two or more sub-populations.
-3
-2
-1
0
1
2
3
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Samples
D
e
v
i
a
t
i
o
n

F
r
o
m

N
o
m
i
n
a
l

(
i
n
c
h
e
s
)
UCL
LCL
CL
2014, Erin Gerber, PhD
IE 430 Quality Control Page 135
Control Chart Patterns - Near Limits
Reasons:
1. Overcontrol.
2. Mixture of two or more sub-populations.
3. Systematic differences in methods, operators, equipment.
-3
-2
-1
0
1
2
3
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Samples
D
e
v
i
a
t
i
o
n

F
r
o
m

N
o
m
i
n
a
l

(
i
n
c
h
e
s
)
UCL
LCL
CL
2014, Erin Gerber, PhD
IE 430 Quality Control Page 136
Supplemental Runs Rules
Western Electric (1956)
Breaks up the chart into 3 zones on each side
Help detect smaller shifts faster
(Also increases False Alarm Rate!)
+ 2o
+ 3o
Yellow (Warning)
Yellow (Warning)
Green (Okay)
+ 1o
UCL
LCL
2014, Erin Gerber, PhD
[5.3]
IE 430 Quality Control Page 137
Supplemental Runs Rules
ACTION SIGNALS
One or more points outside control limits
Two of three consecutive points outside two-sigma limits but
still inside the control limits
Four of five consecutive points outside one-sigma limits
A run of eight consecutive points on one side of the center line
Six points in a row steadily increasing or decreasing
Fifteen points in a row within one sigma
Fourteen points in a row alternating up and down
SOMETIMES THESE ARE USED TO ADAPT SAMPLING SCHEMES
Lead to higher Type I error, lower Type II error

2014, Erin Gerber, PhD
[5.3]
IE 430 Quality Control Page 138
Control Limits vs. Specifications

X
X
UCL
LSL
USL
LCL
2014, Erin Gerber, PhD
IE 430 Quality Control Page 139
Advantages of Control Charts
Proven technique for improving process.
Effective method of defect prevention.
Prevent unnecessary process adjustment.
Provide diagnostic information.
Provide information about process
capability.
2014, Erin Gerber, PhD
IE 430 Quality Control Page 140
Demings Funnel Experiment
x
2014, Erin Gerber, PhD
Homework #3
2008, John S. Usher, PhD, PE I E 430 Quality Control Page 141
Problem Points
TOTAL 100

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