Industrial Engineering

Operating Characteristic Curve (OCC)

Operating
Characteristic
Curve (OCC)

Operating
Characteristic
Curve (OCC)
Calculations

Examples

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 Industrial Engineering
Acceptance Sampling

Operating
Characteristic OC curves are graphs which show
Curve (OCC) the probability of accepting a lot given
various proportions of defects in the
lot

X-axis shows % of items that are

Operating defective in a lot- “lot quality”
Characteristic
Curve (OCC) Y-axis shows the probability or
Calculations chance of accepting a lot

As proportion of defects increases,

the chance of accepting lot decreases
Examples
Example: 90% chance of accepting a
lot with 5% defectives; 10% chance of
accepting a lot with 24% defectives

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 Industrial Engineering
Acceptance Sampling

Operating
Characteristic
Curve (OCC)

Operating
Characteristic
Curve (OCC)
Calculations

Examples

3
 Operating Characteristic Curve (OCC)
Industrial Engineering
Calculations

Operating
OC Curve Calculation
Characteristic
Curve (OCC) Binomial distribution
This is Type B CC where the sample comes from large lot

Hypergeometric distribution
Operating
Characteristic
Pa = P(r defectives found in a sample of n)
Curve (OCC) This is Type A CC where the sample comes from isolated lot of finite size
Calculations
Poisson formula
P(r) = ( (np)re-np)/ r! = Prob( exactly r defectives in n)
Limitations of using Poisson
Examples n≤N/10 total batch
Little faith in Poisson probability calculation when n is quite small and p
quite large.
For Poisson, Pa= P(r ≤ c)

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 Operating Characteristic Curve (OCC)
Industrial Engineering
Calculations

Operating
Characteristic
Curve (OCC)

Operating
Characteristic
Curve (OCC)
Calculations

Examples

5
 Operating Characteristic Curve (OCC)
Industrial Engineering
Calculations
OC Curve by Binomial Formula
Operating Using this formula with n = 52 and c=3 and p= .01, .02, ...,.12 we find data
Characteristic
Curve (OCC)

Operating
Characteristic
Curve (OCC)
Calculations

Examples

6
 Operating Characteristic Curve (OCC)
Industrial Engineering
Calculations
The effect of changing n and c on the CC
Operating
Characteristic
Curve (OCC)

Operating
Characteristic
Curve (OCC)
Calculations

Examples

7
 Industrial Engineering
Example

A shipment of 2,000 portable battery units for microcomputers is about to be

Operating inspected by a importer. The manufacturer and the importer have set up a
Characteristic sampling plan in which the risk is limited to 5% at an acceptable quality level
Curve (OCC) (AQL) of 2% defective, and the risk is set to 10% at Lot Tolerance Percent
Defective (LTPD) = 7% defective. We want to construct the OC curve for the
plan of n = 120 sample size and an acceptance level of c ≤ 3 defectives.
(using Poisson table) Both firms want to know if this plan will satisfy their
quality and risk requirements.
Operating
Characteristic To solve the problem, we turn to the cumulative Poisson table, whose
Curve (OCC) columns are set up in terms of the acceptance level, c. We are interested
Calculations only in the c = 3 column for this example. The rows in the table (np), which
represents the number of defects we would expect to find in each sample.

By varying the percent defectives (p) from .01 (1%) to .08 (8%) and holding
Examples the sample size at n = 120, we can compute the probability of acceptance of
the lot at each chosen level. The values for P (acceptance) calculated in
what follows are then plotted to produce the OC curve

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 Industrial Engineering
Example

Operating
Characteristic
Curve (OCC)

Operating
Characteristic
Curve (OCC)
Calculations

Examples Now back to the issue of whether this OC curve satisfies the quality and risk needs
of the consumer and producer of the batteries. For the AQL of p = .02 = 2% defects,
the P (acceptance) of the lot = .779. This yields an risk of 1 - .779 = .221, or 22.1%,
which exceeds the 5% level desired by the producer. The risk of .032, or 3.2%, is
well under the 10% sought by the consumer. It appears that new calculations are
necessary with a larger sample size if the level is to be lowered.
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 Industrial Engineering
Example

The percent defective from an incoming lot is 3%. An OC curve showed the
Operating probability of acceptance to be 0 .515. Given a lot size of 2,000 and a
Characteristic sample of 120, what is the average outgoing quality in percent defective?
Curve (OCC)
AOQ = Pac*p(N-n)/N
= (.515)(0.03) (2000-120)/2000=.015
Operating Thus, an acceptance sampling plan changes the quality of the lots in percent
Characteristic defective from 3% to 1.5% on the average. Acceptance sampling
Curve (OCC) significantly increases the quality of the inspected lots.
Calculations

Examples

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