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Course: Quantitative Data Analysis

Department Of Management Sciences


University Of Waterloo

ARSHAD HASHMI

Abstract:-

ID# 205 420 63

This project report how it quality is affected by the


process is done by using data collected at
PHILIPS Electrical Industries of Pakistan. This
report provides the effect on quality due to process
accuracy. We have compared two processes by
using Statistical tools on collected data from the two
different processes for a same selected product.

Selected Product:

After Applying Statistical Tools and Statistical


Hypothesis Testing we found that the two processes
were not same. Due to this problem there were more
defective products were produced by process2
although it was also working with in the
specification limits according to the company. But
after the analysis the collected data we found that if
the process2 will also fix as process1 with high
capability then defective products will minimize
and also rework cost will automatically reduced as
well

Process flow of GLS 100w (bulb)

Our selected product is GLS 100w (Bulb). There


are approximately 60,000 bulbs are produced in
each working shift by the company. Every process
is deeply inspected during the production and
emphasizes on higher quality, mean lowering costs
by reducing errors, reducing rework, and reducing
non-value-added work.

Problem Definition:How It Quality Is Affected by the Process I have


selected this topic because I am an Engineer and I
have worked in many manufacturing Industries. I
have huge experience in products and processes so
in this problem I will find how processes affect the
quality of product. How defective products
generates in each Processes. Does Process
Capability Depends on Products

Related Work:To perform the analysis of the Problem I have


Selected Royal Philips Electronics which is my
previous employer and I have all the essential Data
as I was working Close to Q.A and Q.C
departments. As Philips produce Electronic Items
and medical Equipments but their basic and oldest
product is bulb so I have Selected GLS 100 Watt
Bulb to perform analysis of my Problem.

Data Requirements, Data Collection


and Input Analysis
Data required in the form of digits So I have select a
parameter Flare Length for my selected product
which is the main Parameter for GLS 100 Watt
bulb. There are 60,000 bulbs are produced in each
working Shift by Two machines each machine
Produce 30,000 Bulbs in Each Working Shift. We
will collect two samples from theses two process
with same size by using simple random sampling so
it will easy to analysis the data and compute results
Here we will Show all the parameters which are
used in our selected GLS 100 Watt bulbs

Project Report on How it quality is affected by the process at

Electrical Industries of Pakistan

ARSHAD HASHMI

Course: Quantitative Data Analysis


Department Of Management Sciences
University Of Waterloo

Parameters of GLS 100w (bulb)


FP= Filling Pressure (Argon/Nitrogen Mixture)
CML=Constant Mounting Length (length of
filament)
FD=Flare Depth
FD=Flare Diameter
FL=Flare Length
CW=Cement Weight

Data Collection:Data were collected from two different processes


say Process1 & Process2. We collect two samples
from each process by simple random sampling
by Considering One Shift as a population in Which
60,000 Bulbs were produced by two machines say
Processes and each Processes produced 30,000
products in one shift in theses products there are
331 products were defective out of 60,000 bulbs,
Where 96 defective products were from process1
and remaining 235 were produced by process2. .
The collected samples are as under from each
process

ID# 205 420 63

Sample From Process


1

Sample From Process


2

32.98

32.97

33.15

33.21

33.25

32.90

33.17

33.22

33.05

33.30

33.21

32.94

32.98

33.12

33.18

33.15

33.19

33.18

32.93

33.10

32.94

32.92

33.01

33.30

33.09

33.10

33.06

33.30

33.10

33.20

33.18

33.05

32.95

32.95

33.03

33.27

32.94

33.05

33.30

32.99

33.11

33.30

33.02

33.04

33.25

33.21

33.09

33.30

32.90

33.06

33.13

33.29

32.94

32.61

32.93

32.89

32.98

33.13

33.25

32.98

33.21

33.16

33.04

33.47

33.13

33.44

33.00

32.98

33.22

32.90

33.30

33.21

Mean

33.07

Mean

33.14

Variance
Standard
Deviation

0.01

Variance
Standard
Deviation

0.03

0.11

0.18

Mean

33.10

Variance

0.022

Standard Deviation

0.15

We Select two samples of size n = 36 from two


processes by using simple random sampling
method. In this population there were 96 rejected by
process1 and 231 rejected by process2
Products

Process1

Process2

Total

Defective

96

235

331

Non Defective

29904

29765

59669

Total

30000

30000

60000

Quantitative Analysis:-

Project Report on How it quality is affected by the process at

Electrical Industries of Pakistan

ARSHAD HASHMI

Course: Quantitative Data Analysis


Department Of Management Sciences
University Of Waterloo

After Collection of data now we will analyze by


using Statistical Tools first of all we will find Mean
Variance and Standard Deviation for our Samples
and for all over the Data. As our data is normally
distributed therefore we draw histograms for each
sample & for both samples which are as under
Bin
32.60
32.75
32.90
33.05
33.20
33.35
33.50

Freq
0
0
1
18
12
5
0

Total

36

ID# 205 420 63

The upper & Lower specifications limits set by the


company are same for process2 as well as
USL = 33.30 and lower Specification limit say LSL
= 32.90.Here in sample2 for process2 there are 3
Flares are out of Specification limits of the
company So 3 samples were rejected 1 sample is
below the LSL and 2 samples were above USL. So
here are totally 4 samples were rejected out of 72
flares
USL = + = 33.10 + 0.20 = 33.30
LSL = = 33.10 0.20 = 32.90
For sample2 there are 3 samples are out from
Specification limits so 3 defective products.

The Specification limits for the above parameter


Flare Length are as under Upper Specification
limit say USL is 33.30 and lower Specification limit
say LSL is 32.90. So here in sample1 for process1
there is only one Flare is out of Specification limit
of the company So 1 sample is rejected
USL = + 2 = 33.10 + 0.20 = 33.30
LSL = 2 = 33.10 0.20 = 32.90
For first sample only one sample is out from
Specification limits

Bin

Freq

32.60

32.75

32.90

33.05

26

33.20

21

33.35

19

33.50

Total

72

For both processes there are 4 defective products


produced by two processes 1 from process1 & 3
from process2

Bin

Freq

32.60

32.75

Products

Process1

Process2

Total

32.90

Defective

33.05

33.20

Non
Defective

35

33

68

33.35

14

Total

36

36

72

33.50

Total

36
Project Report on How it quality is affected by the process at

Electrical Industries of Pakistan

Course: Quantitative Data Analysis


Department Of Management Sciences
University Of Waterloo

ARSHAD HASHMI

Binomial Approximation
Now we will apply Binomial Approximation to find
defective products in population based on our
samples.
For process1 n=36, P = 1/36 = 0.0277 0.03 so

ID# 205 420 63

Due to inspection on each and every step the Value


of p for Sample becomes small from 0.03, 0.08 to
0.003, and 0.008
Value of p for process1 = 0.03/10 = 0.003
Value of p for process2 = 0.08/10 = 0.008
Now we will show theses in the form of table as
under

For Process1
n = 36, p = 0.03, q = 1 p = 1 0.03 = 0.97

Processes

np

npq

Process1

36

0.03

0.97

1.08

1.048

Sqrt
npq
1.024

For Process2
n = 36, p = 0.08, q = 1 p = 1 0.08 = 0.92

Process2

36

0.08

0.92

2.88

2.65

1.63

Total

72

0.05

0.95

3.6

3.42

1.85

According to the binomial Approximation of


samples now we can find expected no of defective
items in population by using formula E(X) = np

Process1

30000

0.003

0.997

90

89.73

9.47

Process2

30000

0.008

0.992

240

238.08

15.43

Total

60000

0.005

0.995

300

298.5

17.28

For process2
n =36, p = 3/36 = 0.083333 0.08 so

Expected No of Defective in Process1

Hypothesis Testing:-

E(X1) = np = 30000*0.03 = 900


Expected No of Defective in Process2
E(X2) = np = 30000* 0.08 = 2400
But we saw there are 96 defective in sample1 and
235 in sample2. So the value of p can be calculated
for each sample as under
Value of p for process1 as population

Now we will apply Hypothesis testing to test both


processes. According to company both processes
are same and they are producing products according
to their specification limits with 5% level of
significance thats why they do not work on any
process to improve their product quality. Now here
we will test by using Statistical Hypothesis testing
that both process are equal So our Null Hypothesis
will be both processes work same means 1 = 2
or 1 2 = 0

1. Null Hypothesis

p = 96/30000 = 0.0032 0.003


Value of p for process2 as population

H0 = 1 = 2 or 1 2 = d0 = 0

p = 235/30000 = 0.007833 0.008

Where d0 is the difference between


means.

Here we saw 90% less Defective in both processes


this is due to inspection in each and every step

2. Alternate Hypothesis
H1 = 1 2 or 1 2 0 d0 0

Project Report on How it quality is affected by the process at

Electrical Industries of Pakistan

Course: Quantitative Data Analysis


Department Of Management Sciences
University Of Waterloo

ARSHAD HASHMI

3. Level of Significance

ID# 205 420 63

5. Critical Region:

= 0.05

The Critical region at = 0.05 for two tailed test


is: Z < 1.96 and Z > 1.96

4. Test Statistics
To test two Sample Means we use
1 2 = d0 and we know the formula to
calculate the value of Z as under

Here

1 = 33.07,

2 = 33.14

21 = 0.01

22 = 0.03

6. Conclusion:

n1= 36

, n2 = 36

Since our Calculated Value of Z = - 2.100 falls


in Critical region therefore we reject Ho and
Accept H1 and conclude that the performance of
both processes are not equal.

d0 = 0
So by putting the values in above
formula we will find value of Z
(33.07 33.14) 0
Z = -------------------------(0.01/36 + 0.03/36)
0.07
Z = -----------------------------(0.0002777+0.0008333)
0.07
Z = ------------------0.0333316
Z = 2.1001092
Z = 2.10
Therefore Zcal = 2.10

Validation and Verification:By testing of Hypothesis we found that the two


processes are not equal in other words their
performances are not same. As this can also be seen
that in our samples and in population process2 has
more defective products as compare to process1
although process2 is also working with in the
specification limits but its performance is poor as
compare to process1. If the company set process2 as
process1 then defective products will be reduced
and also rework cost will be minimum as well.
It was seen that in process2 produces more
defective products but by applying statistical
hypothesis testing we prove that both process are
not same means that process2 is not working as
process1. From these experimental results we found
that if the processes are more capable then the

Project Report on How it quality is affected by the process at

Electrical Industries of Pakistan

ARSHAD HASHMI

Course: Quantitative Data Analysis


Department Of Management Sciences
University Of Waterloo

defective products minimize. So to minimize the


defective products company must maintain the
capability of process

Summary:This project report how it quality is affected by the


process is done by using data collected at
PHILIPS Electrical Industries of Pakistan. This
report provides the effect on quality due to process
accuracy. We have compared two processes by
using Statistical tools on collected data from the two
different processes for a same selected product.
After Applying Statistical Tools and Statistical
Hypothesis Testing we found that the two processes
were not same. Due to this problem there were more
defective products were produced by process2
although it was also working with in the
specification limits according to the company. But
after the analysis the collected data we found that if
the process2 will also fix as process1 with high
capability then defective products will minimize
and also rework cost will automatically reduced as
well

Project Report on How it quality is affected by the process at

Electrical Industries of Pakistan

ID# 205 420 63

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