Statistical Quality Control

 Basic Concepts
 Product Control

 Process Control

 Variations in Quality
 Basic Concepts
 When small samples are taken
continuously on a regular basis,
and the data analysed
statistically, valuable information
can be derived.
 Control charts forms an integral
part of production process.
 Provides timely warning signal &
for corrective action.
 Basic Concepts
 The effectiveness of control
charts depends on how promptly,
the warning is understood and
heeded and necessary action
taken to correct the process.
 Helps manufacturer in identifying
and eliminating causes for
defectives or failures in repetitive
production processes.
 Statistical Process Control
 SPC is the primary analysis tool of
quality improvement.
 It is the applied science that helps you
collect, organize and interpret the
wide variety of information available
to your business.
 Statistical Process Control
- Aim
 To Achieve Defect Prevention.
 To Pursue Never-ending Improvement.
 To Reduce Variability, Delivery Times,
Completion Times, Methods, Attitudes,
Equipment and Material.
 To Produce Components Consistently
within Specifications.
 to give us Statistical Signal when
Special causes of Variation are
Present.
 Process Control – Tools
 Flow chart to understand what is being
done.
 Check sheets & tally charts to observe
the frequency of occurrence of the
process.
 Graphs to see the pictorial
representation of the numbers.
 Cause and effect analysis to study the
causes of the problems.
 Process Control – Tools
 Pareto analysis to segregate serious
problems from the minor once.
 Scatter diagrams to study the
relationship between various
interacting factors.
 Control charts to interpret and decide
which variations to control and go
about.
 Histograms to appreciate as to how
the variations in frequency of
occurrence appear.
 Process Control -
Advantages
 Greater consistency in fulfilling
customer's requirements leads to
greater customer satisfaction.
 Reduced variation in internal
processes leads to less time and
money spent on rework and
waste.
 Product Control
 Product Control helps to ensure that
the firm follows the proper regulatory
and financial procedures with regard
to the firm's business transactions,
especially as they relate to issues of
customer protection and the liquidity
ratio of the firm.
 It must also reconcile the securities,
commodities, futures and fixed income
settlements, and monitor the financial
and regulatory exposures associated
with them, to further ensure the
 Product Control
 Reconciliation of P&L to traders
estimates and attribution.
 Control analysis - posting to the
ledger, accuracy of P&L.
 Balance sheet analysis.
 Internal management reporting.
 Price verification of all products.
 Variations in Quality
 Common cause of variation account
for 80 – 90 percent of the observed
variation in a production unit.
 The remaining 10 – 20 percent results
from special case of variation, often
called assignable causes.
 Special causes include bad batch of
material purchased, poorly trained
operator, excessive tool wear,
miscalibration of measuring
instrument etc.
 Variations in Quality
 Common cause of variation account
for 80 – 90 percent of the observed
variation in a production unit.
 The remaining 10 – 20 percent results
from special case of variation, often
called assignable causes.
 Special causes include bad batch of
material purchased, poorly trained
operator, excessive tool wear,
miscalibration of measuring
instrument etc.
 Variations in Quality
 Way to reduce the variation due to
common causes is to change the
technology of the process – the
machines, materials, methods, or
measuring systems.
 Variation due to special cause can be
identified through the use of charts.
 Special cause of variations are
identified by the production operators
and their immediate super visors
through charts and make the