A B Raju, CEO

www.biztrans.in
Statistical Quality Control (SQC)
Define Statistics
Statistical Quality Control (SQC)
Statistics is a science concerned with the
collection, organisation, analysis, interpretation
and presentation of data.

SQC is defined as
The technique of applying statistical methods
based upon the theory of probability to quality
control problems with the purpose of establishing
quality standard and maintaining adherence to
those standards in most economical manner.
 SQC
Statistical Processes & Methods:

● Data Collection

● Organisation & presentation

- Frequency distributions
- Histograms

● Descriptive Measures
- Central tendency (mean, median, proportions)
- Dispersion (range, standard deviation, variance)

● Statistical Inference
- Hypothesis testing
- Experimental design

● Predictive Statistics
- Correlation analysis
- Regression analysis
 SQC
Descriptive statistics:

- Tabular summarization : tally marks, frequency

- Graphical summarization: Histogram

- Box and whisker plots

- Quantitative methods
- Mean / average
- Standard deviation

- Probability Distributions
- Normal
- Exponential
- Weibull
- Poisson
- Binomial
SQC
● Pareto Principle/Analysis
Analysis of data to where we see a few contributors
are responsible for bulk of costs, damages etc.,

This principle can be applied to “cost of quality” ,

“suppliers” , “type of defects” etc.,
Statistical Process Control (SPC)

SPC can be defined as the application of statistical methods to the

measurement and analysis of variation in any process.

Quality Measurement in Manufacturing

- Quality of out put: First quality

Amount of scrap/rework
No. of defects found after inspection

- Quality of input: Mfg.down-time

Input meeting specs.
Instrument calibration
Process variation
● Processes that provide goods and services usually
exhibit some variation in their output.

● Variation that is caused by factors that can be clearly

identified and possibly even managed is called
“Assignable variation” (Sporadic)

● Variation that is inherent in the process itself is called

“Common variation” (Chronic)
 SPC
● Statistical Control Charts
It is a graphic comparison of process performance data to compute
control limits.

Process variations are because of two causes

1. Common (random or chance)
2. Special (Assignable)

The main objective of control charts is detecting assignable (special)

causes of variation in a process.

A Process that is operating without special causes of variation is said

to be in “in a state of statistical control”.

Control limits are calculated using the laws of probability.

 SPC
Random variations are acceptable but in the new age competition lower
variation has become an important tool.

Steps in setting up a control chart:

1. Choose the characteristic to be charted. (a pareto analysis of high

occuring defects or Identifying process variables and conditions which
contribute to the end product characteristics).

2. Choosing the type of control chart

3. Deciding the central line

4. A system for collecting data

5. Calculating control limits

6. Plotting data and interpreting the results.

 SPC

Some of the control charts are

- R Charts (amount of dispersion – Range)

- X¯ Charts (process average)

- P Charts (Proportion non-conforming)

- C charts (No. of non-conforming)

 SPC
For a normal distribution scenario, the control limits at ±3б

X¯ Charts

UCL = X¯+A2R¯
LCL = X¯ -A2R¯

R¯ Charts
UCL = D4R¯
LCL = D3R¯

X¯ = Grand average = average of the sample averages

R¯ = Average of the sample ranges
A2 = constant found from the tables
D3 & D4 = Again constants that can be obtained from tables
n = No. of readings in each sample
SPC
Constants for X and R charts

n A2 D3 D4 d2
2 1.88 0 3.268 1.128
3 1.023 0 2.574 1.693
4 0.729 0 2.282 2.059
5 0.577 0 2.114 2.326
6 0.483 0 2.004 2.534
7 0.419 0.076 1.924 2.704
8 0.373 0.136 1.864 2.847
9 0.337 0.184 1.816 2.97
10 0.308 0.223 1.777 3.078
● Disco ball bearing Co. produces bearings used for various industrial purposes.
In the production process, for a particular size of bearing, quality department
randomly taken 10 samples of 5 bearings each. The individual observations
from each sample are given as follows

(All the observations for the bearings are for diameter in centimeters)

● Develop and draw R-chart and X‾-chart assuming company wants to work
with 3 sigma limits.
Sample 1 2 3 4 5

1 5.02 5.01 4.94 4.99 4.96

2 5.01 5.03 5.07 4.95 4.96
3 4.99 5 4.93 4.92 4.99
4 5.03 4.91 5.01 4.98 4.89
5 4.95 4.92 5.03 5.05 5.01
6 4.97 5.06 5.06 4.96 5.03
7 5.05 5.01 5.1 4.96 4.99
8 5.09 5.1 5 4.99 5.08
9 5.14 5.1 4.99 5.08 5.09
 Sample 1 2 3 4 5 x‾‾ R

1 5.02 5.01 4.94 4.99 4.96 4.98 0.08

2 5.01 5.03 5.07 4.95 4.96 5 0.12
3 4.99 5 4.93 4.92 4.99 4.97 0.08
4 5.03 4.91 5.01 4.98 4.89 4.96 0.14
5 4.95 4.92 5.03 5.05 5.01 4.99 0.13
6 4.97 5.06 5.06 4.96 5.03 5.01 0.1
7 5.05 5.01 5.1 4.96 4.99 5.02 0.14
8 5.09 5.1 5 4.99 5.08 5.05 0.11
9 5.14 5.1 4.99 5.08 5.09 5.08 0.15
10 5.01 4.98 5.08 5.07 4.99 5.03 0.1

50.09 1.15

R‾ = 1.15/10 = 0.115
● For R-chart
UCL = D4 R‾= 2.114 x 0.115 = 0.24311 = 0.243
LCL = D3 R‾ = 0 x 0.115 = 0
X‾=50.09 / 10 = 5.009 cm
● For X‾ chart
UCL = X‾+A2R‾ = 5.009 + 0.577(0.115) = 5.075355 = 5.08
LCL = X‾-A2R‾ = 5.009 – 0.577(0.115) = 4. 942645 = 4.94
SPC
P-Chart:
With a p-chart, a sample is taken periodically from the production or service process
and the proportion of defective items in the sample is determined to see if the
proportion falls within the control limits on the chart.

UCL = p¯+zσp

LCL = p¯+zσp

z = no. of standard deviations from the process average

p¯= the sample proportion defective; an estimate of the process average
σp = the standard deviation of the sample proportion

The sample standard deviation is computed as

σp = √[p¯(1-p¯)/n]

Where n is the sample size

SPC
C-chart:
A c-chart is used when it is not possible to compute a proportion defective and the actual
no. of defects must be used

UCL = c¯+ zσc

LCL = c¯- zσc

σc = √c¯

Eg.: No. of voids per inspection unit in injection moulding or casting processes

No. of discrete components that needs to be re-soldered in a PCB

No. of product returns per day

 SPC
Process Capability :
Most widely adopted is the ±3σ (a total of 6 sigma)

Cp Capability ratio = Specification Range

process capability
= UCL-LCL
6s
S=R¯/d2

S = an estimate of σ
 SPC
● Capability Index Cpk

Cp refers to variation in a process

Cpk reflects both variation and location of the process

average

Cpk = min of (X¯-LCL , UCL-X¯)

3s 3s
SPC
For example
UCL = 20 LCL = 8
X¯=16 s=2

Capability ratio = UCL-LCL/6s=(20-8)/12

= 1.0
Capability index=min of (16-8)/6, (20-16)/6
= 0.67
Acceptance Sampling
● Need of sampling

● Cost to justify inspection – 100% inspection is justified

when the cost of a loss incurred by not inspecting is
greater than inspection

● Eg.: fault of item results in Rs.10 loss and average defects are 3%,
then the expected cost of faulty item is ).03 x Rs.10 = Rs.0.30 each.
So if cost of inspection of each item is less than Rs.0.30 then only it
makes sense to inspect 100%

● Sampling is needed only when the quantity of output is

very high.
Acceptance Sampling
● Objective (of the producer) is to ensure that the sampling
plan has a low probability of rejecting good lots. Lots are
classified as good if they contain no more than a specified
level of defectives (known as acceptable quality level –
AQL).

Eg.: HP’s insistence on 2% AQL from a Japanese vendor

● Objective (from consumer’s side) is to ensure that the

sampling plan has a low probability of accepting a bad
lot. Lots are classified as low quality if the percentage of
defectives is more than a specified amount called Lot
tolerance percent defective (LTPD)