Statistical Quality

Control (SQC)

A branch of mathematics used to summarize, analyse and

interpret a group of number or observation
 Contents
Statistical Quality Control
1. Acceptance Sampling
2. Control Chart
Control Charts for variables
Control Charts for attribution
Cost of Quality
1. Cost of Prevention
2. Cost of Appraisal
3. Cost of Failures internal and external failure
Quality Circle
 Statistical quality control (SQC) is the term
used to describe the set of statistical tools used
by quality professionals.
The application of statistical techniques to
measure and evaluate the quality of a product,
service or process.
Though these quantitative and statistical
methods are not a panacea for the problems of
quality implementation, they are nevertheless
helpful in this implementation process.
 Basic Aspects of Assuring Quality by SQC

Finished
Raw-materials Process Goods

Are right Are finished

Are raw- processes goods okay to be
materials Okay? operating on the sent to
raw-materials customers?
 Statistical quality control techniques were first
developed by W.A Shewart, who was working
for the Bell Telephone company in the USA at
the time.
Since World War II, these techniques have been
increasingly and advantageously used by a large
number of manufacturing concerns.
A Statistical quality control performs
inspection, testing and analysis to ensure that
the quality of the products produced is as per
the laid down quality standards (Specifications)
is known as Statistical Quality Control (SQC).
 Statistical tools are generally used for the
purpose of exercising control, improvement of
quality, enhancement of productivity, creation of
consumer confidence and development of the
industrial economy of the country.

When statistical techniques are employed to

control, improve and maintain quality or to
solve quality problems.
 Statistics is the collection, organisation,
analysis, interpretation and presentation of the
data. Statistical Quality Control (SQC) is the
application of statistical techniques to accept
or reject products already produce or to control
the process.
SQC process of selecting a suitable sample or
a representative part of a population for the
purpose of determining parameters of the
whole population.
Sampling may be defined as the selection of some part of an
aggregate or totality on the basis of judgment of aggregate.
 SQC consists of the following activities
1. Systematic collection and graphic recording
of accurate data.
2. Analysis of the data
3. Practical Engineering or Management
action, if the information obtained indicates
significant deviation from the specified
limits.
 Gathering

Recording
Problems of
Quality
Analysing

Reporting
 Advantages of SQC scientific management
1. Reduction in cost
Since only a fractional output is inspected hence cost of
inspection is greatly reduced.
2. Greater Efficiency
It requires lesser time and boredom as compared to the
100% inspection and hence the efficiency increases.
3. Easy to Apply
Once the statistical quality control plan is established, it
is easy to apply even by man who does not have
extensive specialised training.
4.Accurate Prediction
Specification can easily be predicted for the future,
which is not possible even with 100% inspection.
 5. Early detection of faults
The moment a sample point falls outside the
control limits, it taken as a danger signal and
necessary corrective measures are taken.
6. It saves precious and scarce resources
It saves precious and scarce resources in terms
of men and material and machines
7. Distinguish good and bad worker
SEQ technique enables to distinguish the good
worker from the bad worker on the basis of the
quality of products produced by them.
 1. Descriptive Statistics
Descriptive Statistics are used to describe
quality characteristics and relationship
The Mean measure of central tendency
The Range difference between largest/
smallest observation in a set of data
Standard Deviation measures the amount of
data dispersion around mean
 2. Statistical Process control
Statistical process control help to determine the
amount of variation
To make sure the process is in a state of control
Variation in quality
No two items are exactly alike
Some sort of variation in the two items is bound
to be there, infact it is an integral part of any
manufacturing process.
This difference in characteristic known as
variation
 This variation may be due to sub-standard
quality of raw-material, carelessness on the
part of operation, fault in machinery system
etc.
Types of Variation
1. Variation due to CHANCE CAUSES
2. Variation due to ASSIGNABLE CAUSES
 1. Variation due to chance causes
Variation occurred due to chance
This variation is NOT due to defect in machine,
raw-materials or any other factors
Behave in random manner
Negligible but inevitable
The process is said to be under the state of
statistical control.
 2. Variation due to assignable causes

Non-random causes like

Difference in quality of raw-materials

Difference in machines

Difference in operators

Difference of time
 Techniques of Statistical Quality
Control

Acceptance
Control Chart
Sampling
 1. Acceptance Sampling
Sampling is the tool or techniques of statistical
quality control sample or representative out of
lot or aggregate.
Webster defined a sample as a product to
represent the quality of the whole lot.
For example, if we purchase a basket of potatoes,
only a few potatoes can be observed from the
whole bag.
However, we draw an inference about the whole
bag by only inspecting a few.
The basic concept of sampling lies in testing the
samples for acceptance or rejection.
 2. Control Charts
A control chart is an important statistical tool
used to measure the quality characteristics of
the product or process.
A control chart detect variations in the
processing and warn if there is any departure
from the specified tolerance limit.
Control chart was developed by Dr. W.A.
Shewhart and it is based upon the fact that
variability does exist in all the repetitive
process.
 The main use of control charts is to prevent
defects, rather than to detect or reject them.
The differences in dimensions or any other
quality of the products are bound to happen if
1. Different machine tools are used
2. Different cutting tools are used
3. Materials of different properties are used
4. Working conditions are different
5. Workers of different skills manufacture the
products and
6. Improper jigs, tools and fixtures are used.
 Quality control charts allow you to determine
whether a process is in control or out of
control.
When a process is in control, any variations
in the results of the process are created by
random events; processes that are in control
do not need to be adjusted.
When a process is out of control, variations in
the results of the process are caused by non-
random events; you need to identify the
causes of those non-random events and adjust
the process to correct or eliminate them.
 In the above graph, OX and OY axis represented sample
number and characteristics of quality respectively.
The data are collected on a series of samples taken
during a production process at different time intervals
and plotted on graph.
As long as the points fall within the control limits, the
process is under statistical control and we do not
question the quality of the product.
However, if a plotted point fall outside the control limits,
this alerts the production manager to the possibility that
the quality of the product is unacceptable and that the
process is not under statistical control
 A Control Chart consists of 3 lines drawn on
graph paper.
1. Central Line (CL)
The Central line denotes the expected value of
the static such as length, diameter etc of a
product.
2. Upper Central Line (UCL)
One line laying above the central line is called the
Upper Central Line, or Upper Control Limit
3. Lower Central Line (LCL)
The line lying below the central line is known the
lower central line or lower control limit.
 Samples taken are inspected from time to time &
the results are plotted on the graph.
As long as the sample points lie within the UCL &
LCL the process is said to be under control - The
variations thus observed are due to pure chance &
not serious.
But the points which fall outside the UCL & LCL
indicate the fall in the standard of quality of a
product.
Proper Interpretation of the control charts is also
very important. If there is a wrong interpretation
leads to wrong actions, which worsens the
situations instead of improving the process.
7.05

7.00

6.95
SPC
Sample Quality Control Chart
 Control Chart
24
UCL = 23.35
21

18 c = 12.67
Number of defects

15

12

6
LCL = 1.99
3
2 4 6 8 10 12 14 16
Sample number
HSP
 Advantages of Control Charts
1. It indicates whether the process is in control or
out of control at a particular point of time.
2. It ensures level of quality and hence also build
up the reputation of the organisation due to
customer satisfaction.
3. It detects unusual variations taking place in a
process.
4. It helps in reducing the rejection as it warns in
time, so that process can be rectified in time
5. It helps in setting of tolerance limits.
 Control Chart

Charts for Variables Charts for Attributes

Average Chart Range Chart Charts for Detective Charts for detects
( Chart) (R Chart) Items per unit

Fraction defective No. of defective Constant Sample Variable Sample

(P Chart) (np-Chart) C Chart V-Chart
 1. Control Charts for variables
The characteristic which can be measured is called
variables.
For these variables we may be interested in
controlling their mean or the range of variation R,
or the standard deviation.
Control charts prepared to control X & R come
under this Category.
R chart is a plot of difference between the highest
& lowest values in each sample against time.
These are also called Measurement control charts.
 2. Control Charts for attributes
The characteristics which cannot be measured
are called attributes.
The inspection here is visual where the product
is classified either good or bad.
We can note only if there is defect or not. If
any defect is seen, the product is to be rejected
otherwise, accepted.
We may calculate the number of defective
units in a sample or control the defects in a
product.
 Control charts for variable
X chart ( mean)
R chart (rang)
Control charts for attributes
np charts ( number of defective charts)
p charts ( fraction defective charts for varying
sample size)
c chart (number of defects charts for constant
sample size)
u chart ( number of defects per unit chart for
varying sample size)
 Type I and Type II Errors
The three sigma limits contain between them
97.73% of the sample means.
This means that 0.27% of the sample means
will cross the control limits will fall outside the
UCL or LCL.
In other words, out of every 10,000 samples,
27 samples will have their mean outside the
control limits.
Thus, when a sample mean overshoots a
control limit, there is a possibility that the
process may not be out of control.
 In that case, when the QC manager looks for
assignable causes, he is able to find one and
correct it to bring the process back under
control.
At the same time, there is a possibility that the
process may be in control and the sample mean
exceeding the control limits may be one of
those 27 out of every 10,000 samples
 Costs of Quality
Quality management is not only concerned
with maintaining the quality characteristics of
a product but also with doing the same at least
cost.
1. What is the cost to improve quality?
2. What will it cost to not improve quality?
These are basic questions that manager need to
ask as they focus on the bottom line and
company strategic decision.
The costs of carrying out the companys
quality function are know as costs of quality
1. Market research cost
2. The product research and development cost
3. Design cost
4. Cost of manufacturing planning
5. Cost of inspection and test
6. Cost of defect prevention
7. Cost of scrap, quality failures
8. Cost of quality assurance
9. Cost of quality improvement and maintenance
 Cost of Conformance
Planning
Training and indoctrination
Process control
Field testing
Product design validation
Process validation
Test and evaluation
Quality audits
Maintenance and calibration
 Cost of Non-conformance

Scrap
Rework
Expediting
Additional material or inventory
Warranty repairs or service
Complaint handling
Liability judgments
Product recalls
Product corrective actions
Costs of Quality
 Cost of Appraisal

Cost of Prevention

Cost of Quality
Cost of Internal
Failures

Cost of External
Failures

American Society of Quality Control

 1. Cost of Appraisal
The costs associated with the measuring,
evaluating or auditing of products, components
and purchased materials to assure conformance
with quality standards and performance
requirements are called cost of appraisal.
There are costs of inspection, testing and such
checking operations as are necessary to
maintain the product quality.
 This includes the cost of implementation of
quality as also the cost of monitoring and
control
Receiving or incoming test and Inspection
Laboratory acceptance testing
Inspection and test
Checking labour
Set up for inspection and test
Inspection and test material
Quality audits
Evaluation of field stock and spare parts.
 2. Cost of Prevention
These are the costs associated with the design,
implementation and maintenance of the quality
system of an organisation.
Cost of quality planning
Cost of documenting
Process control cost
Cost of Training
Costs associated with preventing recurring
defects
Cost of investigation, analysis and correction of
causes of defects by quality control department
 3. Costs of Failure
In spite of prevention and appraisal there will still
be losses due to rejects, re-work, spoilage etc to
some extent.
These will also as cost of attending to customer
complaints and providing product service are
included under the category of cost of failures.
Costs of failure consists two types
1. Internal failure costs scrap costs, rework cost,
process failure costs
2. External failure costs customer complaint
costs, product return costs, warranty claims
costs, product liability costs and lost sales costs.
 In that case, when the QC manager looks for
assignable causes, he is able to find one and
correct it to bring the process back under
control.
At the same time, there is a possibility that the
process may be in control and the sample mean
exceeding the control limits may be one of
those 27 out of every 10,000 samples
Relationship between costs of quality and
organisational capability
 Quality Circle
Voluntary groups of 8 to 10 employees who
work on similar tasks or share an area of
responsibility.
They agree to meet on a regular basis to discuss
& solve problems related to work -
productivity, cost, safety and other work related
aspects.
They operate on the principle that employee
participation in decision-making and problem-
solving improves the quality of work
 This concept originated in Japan during the
1960s. Employees play a major role in quality
improvement.
The supervisor acts as a moderator or
facilitator for the group.
The group generally meet once a week in a
designated place during working hours and
works on the particular problem.
These quality circles follow an established
procedure for identifying, discussing and
solving problems.
 Quality Circle Process

Organization
8-10 members
Same area
Supervisor/moderator
Training
Presentation Group processes
Implementation Data collection
Monitoring Problem analysis

Problem
Solution Identification
Problem results List alternatives
Consensus
Problem Analysis Brainstorming
Cause and effect
Data collection and
analysis

HSP
 Quality circles have been successfully used in
India by many industries such as Steel
Authority of India Limited (SAIL) uses quality
circles successfully in all its steel products
quality in steel plant at Bhilai has shown
remarkable improvements through quality
circles.
Steps involved in quality Circles

Problem Identification

Problem Analysis

Solution

Presentation