Module:1

INTRODUCTION TO STATISTICAL QUALIT Y CONTROL

Introduction to Statistical Quality Control

• History of Quality Control - Statistical Quality Control and Statistical Process Control – Need
for Statistical Concepts – Important Quality Control Tools - Quality costs and Quality loss –
Quality Assurance – Taguchi’s Quality Loss Function - limitation of SQC - Service Quality
 Industry’s Concerns
Rising Cost of Input
Quality (Raw material, Energy)

Govt. Policies
Competency of employees

Environmental regulations

Accountability to shareholders &

Financiers
 Defining Quality

Think about a product you bought. How can you define its
“quality”?
 Perfection Fast Delivery

QUALITY
Usable Product Eliminating
Waste

Consistency Fitness to Use

Total customer service and satisfaction
 BRIEF HISTORY OF QUALITY
METHODOLOGY
It has taken place in five stages:

1) Quality Inspection (QI)

2) Quality Control (QC)
3) Quality Assurance (QA)
4) Total Quality Management (TQM)
5) Six Sigma
Quality Evolution

Evolution

TQM
Quality
Assurance
Quality
Control
Foreman
Operator
1900 1918 1920 1940 1980
 History of Quality Control
Early Craftsmanship Era
• Quality depended on the skills of individual craftsmen
• Inspection performed by masters or guild leaders
• No formal standards or measurement systems

Industrial Revolution (18th–19th Century)

• Mass production began
• Need for consistent quality in large-scale manufacturing
• Emergence of inspection-based quality checking
• Samuel Colt and Henry Ford accelerated standardization

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Early 20th Century
• Scientific Management – F.W. Taylor (1911)
Introduced standardized work methods and productivity improvement
• Acceptance Sampling – H.F. Dodge & H.G. Romig (1920s)
Developed statistical sampling inspection methods

1930s: Birth of Statistical Quality Control (SQC)

• Walter A. Shewhart (Bell Labs, 1924)
• Developed Control Charts
• Introduced the concept of assignable vs. random variation
• Foundation of Statistical Process Control (SPC)

World War II (1940s)

• Large-scale use of SQC in military production
• Development of MIL STD sampling procedures

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1950s–1970s: Quality Revolution in Japan
• W. Edwards Deming
• PDCA Cycle
• Emphasis on process improvement and worker involvement
• Joseph Juran
• Quality Planning, Quality Improvement, Quality Control
• Japan adopted TQM and became a leader in manufacturing quality

1980s–1990s: Total Quality & International Standards

• Total Quality Management (TQM) widespread
• Kaizen, Zero Defects, 5S, QFD, Taguchi Methods
• ISO 9000 Standards (1987) introduced global quality certification
2000s–Present.

Six Sigma, Lean Manufacturing, DMAIC

• Emphasis on customer satisfaction, waste reduction, and process capability
• Integration of AI, IoT, and Industry 4.0 into quality systems
• Real-time monitoring, predictive quality, digital twins
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 Quality
What is quality?
“meeting the customer requirements”

What is reliability?
“It is the ability of product and service to continue to meet the customer
requirements”

Quality is meeting the customer requirements, and this is not restricted to

the functional characteristics of the product or services.
 ✓ Quality is conformance to requirements or
specifications (Crosby 1979)
Definitions
✓ Fitness for use (Juran 1988)
of Quality-
✓ Degree to which a set of inherent characteristics
fulfills requirements (As per ISO 9000:2000)
 OPINION OF QUALITY

Quality is not fine-tuning your product at the

final stage of manufacturing, before packaging
and shipping.

Quality is judgment by customers. It is

customer determination, not an engineer’s
determination or a manager’s determination.
 • Quality can be quantified as Q = P / E
where Q = Quality,
Quality P = Performance and
E = Expectation

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NEED FOR • Higher levels of customer satisfaction
• Higher customers expectations are getting produced by
QUALITY increasing competition.
• It will increase the demand of our product
The Dimensions of Quality
DIMENSION MEANING
Performance Primary product characteristics
Features Secondary characteristics
Conformance Meeting specifications or industry standards
Reliability Consistency of performance over time
Durability Useful life
Service Resolution of problems and complaints
Response Human-to-human interface
Aesthetics Sensory characteristics
Reputation Past performance and other intangibles
Quality in different areas of society
Area Examples
Airlines
Health Care
Food Services
Postal Services
Academia
Consumer Products
Insurance
Automotive
Communications
 Quality: Different Areas
Area Examples
Airlines On-time, comfortable, low-cost service, safety
Correct diagnosis, minimum wait time, lower
Health Care
cost, security
Food Services Good food, fast delivery, good environment
Postal Services fast delivery, correct delivery, cost containment
Proper preparation for future, on-time
Academia
knowledge delivery
Consumer Products Properly made, defect-free, cost effective
Insurance Payoff on time, reasonable cost
Automotive Defect-free, comfort, highly reliable
Communications Clearer, faster, cheaper service
 Quality Control (QC) is the
implementation of regular testing
procedures against your definitions of
Quality quality and more specifically the
Control refinement of these procedures
– Formal use of testing
– Acting on the results of your tests
– Requires planning, structured tests,
Statistical Quality Control (SQC)

Definition
• Statistical Quality Control (SQC) involves using statistical techniques to monitor, control, and
improve process quality.

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 Elements of SQC
Sample Inspection

We know that 100% inspection needs huge expenditure of time, money, labour and
resources. Therefore, SQC is based on sampling inspection. In sampling inspection method,
some items or units (called sample) are randomly selected from the process and then each
and every unit of the sample is inspected.

Use of Statistical Methods

Some commonly used statistical tools such as random sampling, mean, range, standard
deviation, mean deviation, standard error and concepts such as probability, binomial
distribution, Poisson distribution, normal distribution, etc., are used in SQC. Since, quality
control method involves extensive use of statistics, it is termed as Statistical Quality
Control.
Fundamental Objective

The fundamental objective of SQC is to decide whether the unit produced is according to its
specifications or not. If the unit produced is not according to its specifications and there is a
variation in quality, it becomes necessary to trace the causes of variation and eliminate them
if possible.

Decision Making

With the help of SQC, we decide whether the quality of the product or the process of
manufacturing/producing goods is under control or not.

Specifications, Production and Inspection

SQC method helps in deciding about the specifications, production and inspection of an
product.
 Techniques of Statistical Quality Control

The important techniques used for statistical quality control can be broadly classified
into two categories:

1. Statistical Process Control (SPC) or simply Process Control, and

2. Product Control.
Techniques of Statistical Quality Control
 Statistical Process Control (SPC)

Statistical process control is a technique used for

understanding and monitoring the process by collecting
data on quality characteristics periodically from the
process, analysing them and taking suitable actions
whenever there is a difference between actual quality
and the specifications or standard.
 Statistical Process Control (SPC)

Statistical process control technique is widely used in almost all

manufacturing processes for achieving process stability and making
continuous improvements in product quality.
Its major tools are:
1. Histogram 2. Check sheet
3. Pareto chart 4. Cause and effect diagram
5. Process flow diagram 6. Scatter diagram
7. Control chart
 Product Control

• Control the products in such a way that these are free from
defects and conform to their specifications.
• Initially, product control was done by 100% inspection, which
means that each and every unit produced or received from
the outside suppliers was inspected.
• This type of inspection has the advantage of giving complete
assurance that all defective units have been eliminated from
the inspected lot. However, it is time consuming and costly.
 Acceptance sampling

• Sampling inspection or acceptance sampling was developed

as an alternative of 100% inspection.
• Acceptance sampling is a technique in which a small part or
fraction of items/units is selected randomly from a lot and
the selected items/units are inspected to decide whether the
lot should be accepted or rejected on the basis of the
information obtained from sample inspection.
• This is how product control is achieved through acceptance
sampling
 Inspection

The method of checking, measuring or testing one or more

quality characteristics of the product or the parts and
determining whether it satisfies the required specifications or
not, is called inspection.
 Inspection is of two types

i) Inspection of Variables:

In this type of inspection, the quality characteristic (s) of an item/unit

are measured and compared with the required specifications.
For example, the desired specification for the diameter of a ball
bearing is 50 mm, length of the refill of a ball pen is 14 cm,
weight of a cricket ball is 162 gram, and so on
ii) Inspection of Attributes

• In inspection of attributes, actual measurements are not

taken. Instead, the item/units are categorised as defective or
non-defective on the basis of Go-No-Go gauges.

• It means that if a unit fulfils all required quality

characteristics, it is categorised as non-defective and if not, it
is categorised as defective. In such type of inspection, the
number of defective units (or defects) is counted.
 The check sheet is a form (document)
used to collect data in real time at the
location where the data is generated.

The data it captures can be

CHECK quantitative or qualitative.
SHEET
When the information is quantitative,
the check sheet is sometimes called a
tally sheet
Construction of Pareto analysis:

❖ Rank order the columns or categories of data (start with the highest occurrences
column on the left and proceed to the right, down to the lowest occurrence).

❖ Prepare the graphic (arrange the categories to match the frequencies).

❖ Calculate and place on the graphic a relative frequency line above the data
columns or categories (calculate the % of each category and graph the
cumulative percentage).
 Cause and effect diagram is a
graphical-tabulation chart to list
CAUSE-AND and analyze the potential causes of
EFFECT a given problem.
DIAGRAM
The cause and effect diagram is
also called the Ishikawa diagram or
the fishbone diagram
HOW CAN USE IT?

• It is a tool for discovering all the possible

causes for a particular effect.
• To analyze cause and effect relationships.
• To standardize existing proposed operations
• To educate and train personnel in decision –
making and correction activities
• The major purpose of this diagram is to act as
a first step in problem solving by creating a list
of possible causes
 CONSTRUCTING A CAUSE AND EFFECT
DIAGRAM

• First, clearly identify and define the problem or effect

for which the causes must be identified. Place the
problem or effect at the right or the head of the
diagram.
• Identify all the broad areas of the problem.
• Write in all the detailed possible causes in each of
the broad areas.
• Each cause identified should be looked upon for
further more specific causes.
• View the diagram and evaluate the main causes.
- Set goals and take action on the main causes
 SCATTER DIAGRAMS

• Scatter Diagrams are used to study and identify the possible relationship
between the changes observed in two different sets of variables

• Useful in the quantitative analysis of data to see how a variable behaves

relative to another variable.

• Supplies the data to confirm a hypothesis that two variables are related.
 WHEN WE USE IT?

• The purpose of scatter diagram is to display what happens to

one variable when another variable is changed
Constructing A Scatter Diagram

– First, collect the data and create a summary table of the data.
– Draw a diagram labeling the horizontal and vertical axes.

– It is common that the “cause” variable be labeled on the X axis and

the “effect” variable be labeled on the Y axis.
– Plot the data pairs on the diagram.
– Interpret the scatter diagram for direction and strength.
 COSTS OF QUALITY

The costs related to prevention and detection of defects and the costs
due to occurrences of defects.
Cost of Control (Also known as Cost of Conformance)
• Prevention Cost
• The cost arises from efforts to prevent defects.
• Example: Quality Assurance costs
• Appraisal Cost
• The cost arises from efforts to detect defects.
• Example: Quality Control costs
Cost of Failure of Control (Also known as Cost
of Non-Conformance)
• Internal Failure Cost
• The cost arises from defects identified internally and efforts to correct them.
• Example: Cost of Rework (Fixing of internal defects and re-testing)
• External Failure Cost
• The cost arises from defects identified by the client or end-users and efforts
to correct them.
• Example: Cost of Rework (Fixing of external defects and re-testing) and any
other costs due to external defects (Product service/liability/recall, etc)
costs of appraisal include:
1. Cost of receiving test and inspection.
2. Cost of laboratory acceptance testing.
3. Cost of installation testing.
4. Cost of installation and commissioning.
5. Cost of maintenance and calibration of testing and
inspecting equipments.
6. Cost of test equipment depreciation.
7. Cost of analysis of reporting of tests and inspection
results.
8. Cost of line quality engineering.
9. cost of vendor rejects.
 HIDDEN COSTS
• Hidden costs also known as the intangible costs, are the
costs associated with providing a non conforming
product or service to a customer that are difficult to
identify and quantify.
• Some of the hidden costs include:
1. Customer dissatisfaction cost
2. Potential lost sales
3. Loss of company image
4. Loss of customer goodwill
5. Customer time loss
6. Offsetting customer dissatisfaction
 Systematic process of monitoring and
evaluating a product, service, or process to
ensure it meets specific quality standards
and customer expectations.
Quality It focuses on preventing defects rather than
detecting them after they occur.
assurance
(QA)
QA ensures that the processes used to
design, develop, and deliver products are
effective and continuously improved

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 Customer Focus

Process Approach
Principles
of Quality Continuous Improvement
Assurance
Evidence-based Decision Making

Standardization and Documentation

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 Reduced cost due to fewer
defects
Benefits of Higher customer satisfaction and
Quality trust
Assurance Increased efficiency and
productivity
Better compliance with industry
or regulatory standards
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 Ensure products/services meet customer
expectations

Objectives of Improve efficiency and consistency in

processes
Quality
Assurance: Prevent errors and defects before
production or delivery

Establish standard procedures and

compliance with regulations

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 Examples of QA in Engineering & Manufacturing
Incoming Material Inspection
• Before production begins, raw materials (steel, polymers, electronics, etc.) are tested and verified against
specifications to ensure they meet quality standards.
• Example: Checking tensile strength and chemical composition of metal sheets before using them in
automotive parts.
Calibration of Tools and Equipment
• Machines, gauges, and measurement tools are periodically calibrated to ensure accuracy.
• Example: Calibrating torque wrenches, CNC machines, weighing scales, or pressure meters before use.
Preventive Maintenance
• Regular maintenance ensures machines operate reliably and avoid sudden failures.
• Example: Scheduled lubrication, replacement of worn-out machine parts, and periodic safety checks in a
factory.
Employee Training and Certification
• Staff are trained, tested, and certified to perform specialized tasks properly.
• Example: Only certified welders are allowed to weld structural components as per ASME or AWS standards.

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 Taguchi’s Quality Loss Function (QLF) is a
concept proposed by Dr. Genichi Taguchi which
states that:

Taguchi’s Any deviation from the target value results in a

loss to society.
Quality
Loss quality loss occurs when a product deviates
from its target value
Function
Focuses on minimizing variation, not just
meeting specifications

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 Traditional Taquchi

There is Good or Bad products only as When a product moves from its Target
per Limits will cause the loss even if the product
lies or not within limits 111
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 • 𝐿 = 𝑘 ቀ𝑦 − 𝑇)2

Mathematical • Where:
• L = Quality loss
Definition • k = Loss coefficient
• y = Actual measured value
• T = Target (ideal) value

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1. A bolt is manufactured with a target diameter of 10.00 mm. Based on customer complaints; it is found that a
deviation of 0.02 mm results in a loss of ₹20 to the customer.
• On a particular day, a bolt is measured and found to have a diameter of 10.03 mm.
• Calculate the quality loss using Taguchi’s function.

Given:
• Target value (T) = 10.00 mm
• Measured value (y) = 10.03 mm
• Known loss: ₹20 at 0.02 mm deviation

Find k (Loss coefficient)

• 𝐿 = 𝑘 ቀ𝑦 − 𝑇)2

• 20 = 𝑘 ቀ0.02)2
20
• 𝑘= = 50,000
0.0004

Calculate actual loss

• Deviation = 10.03 − 10.00 = 0.03
• 𝐿 = 50,000 ቀ0.03)2
• 𝐿 = 50,000 × 0.0009 = 45

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2.A manufacturer produces resistors with a target resistance value of 100 Ω. Customer reports
show that a deviation of 2 Ω causes a loss of ₹50.
• During inspection, a resistor is found to have a resistance value of 105 Ω.
• Calculate the quality loss using Taguchi’s Quality Loss Function.

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• Given:
• Target value (T) = 100 Ω
• Measured value (y) = 105 Ω
• Known loss: ₹50 at 2 Ω deviation
•

Calculate the loss coefficient (k)

• 𝐿 = 𝑘 ቀ𝑦 − 𝑇)2

• 50 = 𝑘 ቀ2)2
50
•𝑘= = 12.5
4
•

Calculate loss at the measured deviation

• Deviation = 105 − 100 = 5Ω
• 𝐿 = 12.5 ቀ5)2
• 𝐿 = 12.5 × 25 = 312.5

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3.A battery system has a target voltage of 12.0 V. Based on warranty failure analysis, a
deviation of 0.2 V results in a loss of ₹100.
• If a tested battery shows 11.6 V, calculate the quality loss.

4. A precision drone part has a target mass of 250.0 g. Based on maintenance cost data, a
deviation of 1.0 g leads to a loss of ₹120.
• During inspection, three parts show the following weights:

Part Measured Value

A 249.2 g

B 251.4 g

C 250.6 g

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• Target mass 𝑇 = 250.0 g.
Loss for 1.0 g deviation = ₹120.
So the Taguchi loss coefficient 𝑘is:
120
•𝑘= = 120
ቀ1.0)2

Part A — 249.2 g
Deviation: ∣ 𝑦 − 𝑇 ∣=∣ 249.2 − 250.0 ∣= 0.8 g.
Loss: 𝐿 = 𝑘 × ൫ deviation )2 = 120 × 0.64 = 76.80
Part B — 251.4 g
Loss : L = 235.20
Part C — 250.6 g
Loss: L = 43.20.

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Types of Quality Loss Functions

Type Curve Shape Examples

Loss is minimal at a target Shaft diameter, battery
Nominal-the-best
value voltage
Loss increases as the value
Smaller-the-better Pollution, defects, errors
increases
Loss decreases as value Strength, efficiency,
Larger-the-better
increases reliability

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 Limitations of Statistical Quality Control (SQC)
• Statistical Quality Control (SQC) is a powerful approach that uses statistical methods to monitor,
control, and improve process quality
• SQC has several limitations that restrict its effectiveness in practical industrial environments. These
limitations arise from dependence on data, assumptions about process stability, sampling issues,
and constraints in human interpretation and implementation.

1. SQC Depends Heavily on Quality and Quantity of Data

SQC results are meaningful only when:
• Data is accurate
• Measurements are precise
• Adequate sample size is taken
• Poor or limited data leads to wrong conclusions about process control.
In many industries, collecting reliable and continuous data is costly or difficult.

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2. Not Effective for Short-Run or Low-Volume Production
• SQC relies on patterns and statistical trends.
• Short production runs or customized products do not generate enough data to construct
reliable control charts or perform capability analysis.

3. Detects Problems But Does Not Identify Root Causes

• Control charts signal when a process is out of control but do not explain why.
Engineers and workers must conduct further investigation using other tools (fishbone,
Pareto, FMEA) to find the source of variation.

4. Cannot Handle All Types of Quality Characteristics

• Some characteristics like appearance, color shade, surface finish, or user experience are
difficult to measure precisely.
SQC works best with measurable, numerical data, and is less effective for qualitative or
subjective attributes.

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5. Assumes Process is Stable and Normally Distributed

• Many SQC tools (like control charts, Cp/Cpk) assume:

• Data follows normal distribution
• Process is stable
• Variation is random

Real-world processes often violate these assumptions due to:

• Machine wear
• Operator differences
• Environmental changes
• Mixed product types
• When assumptions fail, analysis becomes unreliable.

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6. SQC Deals Primarily with Variation, Not Overall Quality Management

SQC focuses mainly on:

• Monitoring variation
• Controlling processes
• Detecting assignable causes

It does not directly address:

• Customer satisfaction
• Supplier quality
• Organizational culture
• Ethics, safety, ergonomic issues
• Training and human factors
• Thus, SQC is only one part of a total quality system

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7. Sampling Limitations

• SQC frequently uses sampling inspection, which has drawbacks:

• Missed detection of rare defects
• Sampling cost increases for high reliability
• Incorrect sampling plan leads to poor conclusions
• For critical products (medical, aerospace), even one defect is unacceptable.

8. Time-Consuming and Requires Skilled Personnel

• SQC tools such as control charts, capability analysis, regression, and hypothesis testing require
trained personnel.
• Untrained workers may misinterpret charts, leading to wrong decisions or unnecessary process
adjustments (tampering).

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9. Limited Use in Service Industries

• Service processes (banking, hospitality, healthcare, education) involve:

• Human behavior
• Intangible outputs
• High variability
• It is difficult to measure and statistically control such processes using traditional SQC tools.

10. Focuses on Detection Rather Than Prevention

• SQC often identifies deviations after they occur.

• Preventive approaches like Six Sigma, Poka-Yoke, Taguchi Methods, and Quality Assurance are
needed to eliminate root causes and design robustness.

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SERVICE QUALITY

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1. Reliability
• Ability to perform the promised service dependably and accurately.

Example: A bank processing transactions correctly every time.

2. Responsiveness
• Willingness of staff to help and provide prompt service.

Example: Immediate assistance in customer care.

3. Assurance
• Knowledge, courtesy, and ability of employees to inspire trust and confidence.

Example: A skilled doctor or a trained technician.

4. Empathy
• Providing caring, individualized attention to customers.

Example: Understanding customer problems and treating them politely.

5. Tangibles
• Physical facilities, equipment, appearance of personnel, and communication materials

Example: Clean environment, modern equipment, neat uniforms

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 • Service Quality is often expressed as:

• 𝐒𝐞𝐫𝐯𝐢𝐜𝐞 𝐐𝐮𝐚𝐥𝐢𝐭𝐲 = Perceived Service − Expected Service

Service Quality
Gap • Positive gap → Customer satisfaction

• Negative gap → Customer dissatisfaction

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Examples

• Education: Quality of teaching, academic support, infrastructure

• Healthcare: Timely treatment, staff behavior, patient care

• Banking: Accuracy of transactions, responsiveness, reliability

• Hospitality: Cleanliness, courtesy, prompt service

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Importance of Service Quality

• Enhances customer satisfaction and loyalty

• Improves organizational reputation
• Leads to repeat business and competitive advantage
• Reduces complaints and service failures

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