Six Sigma Green Belt-3

SQC UNIT BANGALORE, GREEN BELT PROGRAM
IN THE ANALYSIS PHASE YOU WILL...
• Brainstorm on X’s
• Find change of which X’s affect Y and in what
manner
• Ultimately find which X’s are critical to move the
Y in the desired direction
IN MEASURE PHASE, WE DEALT WITH Y’s.

IN ANALYSIS PHASE, WE WILL DISCOVER
& DEAL WITH X’s.
103
UNDERSTANDING A PROCESS
•To better understand
your process, you will:
– Create a flowchart of
your process.
– Identify which of
your process steps
are value-added and
which are nonvalue-
added.
– Determine cycle time and identify bottlenecks.
– Look for errors or inefficiencies that contribute to
defects.
104
FLOWCHARTS
• Flowcharts are tools that make a process visible.
Start Step 1 Step 2 Step 3
Yes
Decision Step 6 End
No
Step 4 Step 5
105
TYPES OF FLOWCHARTS USEFUL

FOR UNDERSTANDING PROCESS FLOW
– Activity flowcharts – Deployment flowcharts

Sales Technical Shipping Coordinator
106
ACTIVITY FLOWCHARTS
Hotel Check-out Process Process Name
• Activity 1 2 YES 3
Is there
flowcharts are Approach front desk

a line?
Wait
Clear
direction of
NO flow (top to
specific about Numbered
steps
4
Step up to desk
bottom or
left to right)
what happens in 5
a process. They Key of symbols

Clerk
available?
NO
6
Wait
often capture YES
7 Consistent
decision points, Start/End
Action/Task
Give room number
level of
detail
rework loops, Decision

8
Check bill
complexity, etc. Sequence

9
Charges NO 10
correct? Correct charges
YES
11
Clear starting
Pay bill and ending
Date of creation points
or update &
name of creator
107
DEPLOYMENT FLOWCHARTS
• Deployment People or groups
listed across the top Invoicing Process
flowcharts show the Sales Billing Shipping Customer Elapsed
Time
detailed steps in a Steps listed in 1 Time flows
Delivers goods
process and which column of person or
group doing step or 2 8
down the
page
people or groups are in charge Notifies sales of
completed delivery
Receives
delivery
5 days
involved in each step. 3

Sends invoice to
customer
9
Records receipt and
claims against this
delivery
• They are particularly 4

Notifies billing
10
Receives invoice
10 days
of invoice
useful in processes that 5

11
Checks invoice
involve the flow of Files invoice against receipt
12
information between Pays bill
people or functions, as
6
Receives and
records payment
Horizontal lines
clearly identify
they help highlight 7
Reviews weekly
report of overdue
handoffs
handoff areas. accounts
108
WHICH FLOWCHARTING TECHNIQUE

SHOULD I USE?
Basic Activity Deployment
Flowchart Flowchart Flowchart
 To identify the major  To display the  To help highlight
steps of the process complexity and handoff areas in
and where it begins decision points of a processes between
and ends process people or functions
 To illustrate where in  To identify rework  To clarify roles and

the process you will loops and bottlenecks indicate dependencies
collect data
Which flowchart do you intend to use for your project?
109
HOW TO CREATE FLOWCHARTS

•When creating a flowchart, work with a
group so you can get multiple viewpoints.
– Brainstorm action steps
• Write these on self-stick notes or on
a flipchart
• Make sure to include the steps that
occur when things go wrong
– Arrange the steps in sequence

• Be consistent in the direction of flow—
time should always flow from top to bottom, or from left to right
• Use appropriate flowchart symbols
– Check for missing steps or decision points
– Number the steps
110
FOUR PERSPECTIVES
• Flowcharts can map four different perspectives on a

process:
– What you think the process is.
– What the process really is.
– What the process could be.
– What the process should be.
• At this stage of a DMAIC project, you are trying to
define the current situation, as it is. Therefore, your
flowchart(s) should map what is really happening in
the process.
111
COPY PROCESS
Yes
Take Original Copier Yes Wait? No Leave

in Use?
No
Place No Glass Yes Clean

Original Dirty?
Select
Size
Select
Orientation
Select
Number Paper? No Find
Paper
Yes
Yes
Box No Knife? No Find Open
Open? Knife Box
Yes
Yes Paper No Find

Loaded? Help
Yes No
Start Copy Yes Quality No Stop Adjust?
Copier Made? Ok? Copier
Yes
No
Adjust Find
Help
Yes Another Fix No
Page? Problem?
No Yes
Remove Collect Staple Clear Leave

Original Copies copies modes
112
VALUE-ADDED AND NONVALUE-ADDED STEPS
•Value-Added Step:
– Customers are willing to pay for it.
– It physically changes the product.
– It’s done right the first time.
•Nonvalue-Added Step:
– Is not essential to produce output.
– Does not add value to the output.
– Includes:
• Defects, errors, omissions.
• Preparation/setup, control/inspection.
• Over-production, processing, inventory.
• Transporting, motion, waiting, delays.
113
EXAMPLES
Value-Added Activities Nonvalue-Added Activities
• Entering order • Waiting

• Ordering materials • Storing
• Preparing drawing • Staging
• Assembling • Counting
• Legally mandated testing • Inspecting
• Packaging • Recording
• Shipping to customer • Obtaining Approvals
• Testing
• Reviewing
• Copying
• Filing
• Revising/Reworking
• Tracking
114
FLOWCHART WITH WASTE HIGHLIGHTED

• You can turn Start
an activity 1.
Stop
9.
Adjust
settings
packing line
flowchart into No
2. 5. 6. 7. 8. Yes 10.
an opportunity Same
product?
Yes
Change
length
Adjust
speed
Run test
cartons
Speed
OK?
Adjust
stapler
flowchart by 3.
No
4.
4.
Yes
No 12. 11.
Pick-up Timing Staple
highlighting appropriate
tools
Clean
okay?
machine
Closed?
test carton
Yes
the steps that 18. 13.
Load carton
Stop
add waste and line
No
complexity to Yes 17.

Right
product?
16.
Call
No 15.
Product?
14.
Refill
foil
filling
the process.
Yes
19.
Start
production
Example: Changeover process
115
OPPORTUNITY FLOWCHART
Steps that are essential
even when everything
• An works correctly move

down the left side.
Steps that would not be needed
if everything worked right the
first time move horizontally
opportunity across the right side.
Value-Added
flowchart is Yes Nonvalue-Added
organized to Take Original

Copier
in Use?
Yes
Wait?
No
Leave
separate No
Yes
Place Glass
value-added Original
No
Dirty? Clean
steps from Select

Size
nonvalue- Select
Orientation
added steps. Select

Paper?
No
Find Box No
Knife?
No
Find Open
Number Paper Open? Knife Box
Yes Yes Yes
Yes Paper No Find

Loaded? Help
116
HOW TO CREATE AN OPPORTUNITY FLOWCHART

– Divide page into Value-Added Steps Nonvalue-Added Steps
two sections Loop
Yes
• Value-added section
smaller Yes
than cost-added- Loop
only section No No
– Time flows down

the page
– Only join two Loop Yes
Value-Added steps No
with an arrow if
there are no
Nonvalue-Added
steps in between
117
MEASURING CYCLE TIME

1.Decide whether you will 3. Develop consensus about
measure cycle time on the what is value-added and
entire process or on a subset what is nonvalue-added
of steps. time (if you haven’t done
so already).
2.Develop operational
definitions for the starting and 4. Develop a data collection
ending points of each step. form.
Cumulative
Process Step VA Time NVA Time Notes
Time
118
VALUE ANALYSIS MATRIX

• You can track specific types of nonvalue-added time
with a value- analysis matrix. This helps clarify not
only the types of waste present in the process, but also
the percentage of overall process time each nonvalue-
added step adds.
Process Step 1 2 3 4 5 6 7 8 9 10 Total %Total
Time (Hours) 12 10 1 10 20 6 10 1 10 20 100 100%
Value-Added 2 2%
Nonvalue-added
Fixing errors 10 10%
Prep/Set-up
Control/Inspection 6 6%
Delay 52 52%
Transporting/Motion 30 30%
Total 100 100%
119
FMEA
There are two primary flavors of FMEA:
Design FMEAs are used during process or product design and
development.
The primary objective is to uncover problems that will result
in potential failures within the new product or process.
Process FMEAs are used to uncover problems related to an
existing process.
These tend to concentrate on factors related to manpower,
systems, methods, measurements and the environment.
Although the objectives of design and process FMEAs may
appear different, both follow the same basic steps and the
approaches are often combined.
120
121
FMEA
FMEA drives systematic thinking about a product or process by
asking and attempting to answer three basic questions:
 What could go wrong (failure) with a process or system?
 How bad can it get (risks), if something goes wrong
(fails)?
 What can be done (corrective actions) to prevent things
from going wrong (failures)?
FMEA attempts to identify and prioritize potential process or
system failures. The failures are rated on three criteria:
 The impact of a failure - severity of the effects.
 The frequency of the causes of the failure - occurrence.
 How easy is it to detect the causes of a failure -
detectability.
122
FMEA
Notice that only the causes and effects are rated - failure
modes themselves are not directly rated in the FMEA
analysis.
FMEA is cause-and-effect analysis by another name – avoid
being hung up on the failure mode.
The failure mode simply provides a convenient model, which
allows us to link together multiple causes with multiple
effects.
It is easy to confuse failures, causes, and effects, especially since
causes and effects at one level can be failures at a lower level.
Effects are generally observable, and are the result of some
cause. Effects can be thought of as outputs.
123
FMEA
Effects are usually events that occur downstream that affect
internal or external customers.
Root causes are the most basic causes within the process
owner’s control. Causes, and root causes, are in the
background; they are an input resulting in an effect.
Failures are what transform a cause to an effect; they are often
unobservable.
One can think of failures, effects, and causes in terms of the
following schematic:
Root Cause Failure Effect

x f(x) y
124
FMEA
Note that a failure mode can have numerous distinct effects, and
that each effect has its own system of root causes.
With this in mind, another way to think of failures, effects, and

causes is:
Causes - x's
Failure - f(x) Effect - y
125
FMEA
Keep in mind that a single failure mode can have several effects,
and that the cause-and-effect diagram on the previous slide
should be repeated for each effect of the failure!!!
Cause Set 1 - x1's Effect 1 - y1
Cause Set 2 - x2's Effect 2 - y2
. Failure Mode - f(x) .

.
.
.
.
Cause Set n - xn's Effect n - yn
126
Risk Priority Numbers

The failures identified by the team in an FMEA project are
prioritized by what are called Risk Priority Numbers, or
RPN values.
The RPN values are calculated by multiplying together the
Severity, Occurrence, and Detection (SOD) values
associated with each cause-and-effect item identified for
each failure mode.
Note: The failure mode itself is not rated and only plays a
conceptual role in linking causes with their effects on the
product, process, or system.
For a given cause-and-effect pair the team assigns SOD values
to the effects and causes. Then an RPN is calculated for that
pair: RPN = Severity x Occurrence x Detection.
127
FMEA
Once the RPN values are assigned to each of the cause-and-
effect pairs identified by the team, the pairings are
prioritized.
The higher the RPN value, the higher the priority to work on
that specific cause-and-effect pair.
The measurement scale for the SOD values is typically a 5 or
10 point Likert scale (an ordinal rating scale).
The exact criteria associated with each level of each rating scale
is dependent upon either a company designed rating criteria
or a specified rating criteria from an industry specific
guideline.
We recommend the use of a 10 point Likert scale for each of the
three rating criteria: Severity, Occurrence, and Detection.
128
FMEA
Note: The 10 point scale facilitates the ability of the team to
assign ratings in a timely fashion.
Too many levels can lead to a false sense of precision and a
lot of agonizing over the exact rating to be assigned for each
item.
The rating systems used should be developed to reflect the
specific situation of interest.
Recall the example of the completed FMEA presented earlier.
The FMEA was developed by a team studying OS/390 online
systems availability to end users.
On the following slides, we will see the ratings systems agreed
upon by the team.
129
FMEA
Severity rates the seriousness of the effect for the potential

failure mode - how serious is the effect if the failure did
occur?
The more critical the effect, the higher the severity rating.
130
FMEA
Severity ratings for the online systems availability FMEA.
Severity Rank Criterion

None 1 No effect
Very Minor 2 No noticeable effect on production
Minor 3 Minor effect on production
Very Low 4 Very low effect on production
Low 5 Low effect on production
Moderate 6 Moderate effect on production
Significant 7 Noticeable effect on production
High 8 Production nearly halted
Very High 9 Production halted
Disaster 10 Implement Hotsite recovery
131
FMEA
Occurrence, or frequency of occurrence, is a rating that
describes the chances that a given cause of failure will occur
over the life of product, design, or system.
Actual data from the process or design is the best method for
determining the rate of occurrence. If actual data is not
available, the team must estimate rates for the failure mode.
Examples:
 The number of data entry errors per 1000 entries, or
 The number of errors per 1000 calculations.
An occurrence value must be determined for every potential
cause of the failure listed in the FMEA form.
132
FMEA
The higher the likelihood of occurrence, the higher the
occurrence value.
Once again, occurrence guidelines can be developed and should

reflect the situation of interest.
133
FMEA
Occurrence guidelines for the system availability FMEA:
Occurrence Rank Criterion Possible failure rate
Remote 1 Unklikely that cause occurs £ 1 in 15,00,000
Very low 2 Very low chance that cause occurs 1 in 1,50,000
Low 3 Few occurrences of cause likely 1 in 15,000
4 1 in 2000
Moderate 5 Medium number of occurences of cause 1 in 400
6 1 in 80
7 1 in 20
High High number of occurrences of cause
8 1 in 8
9 1 in 3
Very High Very high number of occurrences of cause
10 ³ 1 in 2
134
FMEA
The detection rating describes the likelihood that we will detect
a cause for a specific failure mode.
An assessment of process controls gives an indication of the
likelihood of detection.
Process controls are methods for ensuring that potential
causes are detected before failures take place.
For example, process controls can include:
• Required fields or limited fields in electronic forms,
• Process and/or system audits, and
• “Are you sure” dialog boxes in computer programs.
If there are no current controls, the detection rating will be high.
If there are controls, the detection rating will be low.
135
FMEA
The higher a detection rating, the lower the likelihood we
will detect a specific cause if it were to occur.
Detection guidelines developed for the system availability FMEA:
Detection Rank Criterion
Almost certain 1 Cause obvious and easy to detect
Very High 2 Very high chance of detecting the cause
High 3 High chance of detecting the cause
Moderately High 4 Cause easily detected by inspection
Moderate 5 Moderate likelihood of detection
Low 6
Low likelihood of detection
Very Low 7
Very low likelihood of detection
Remote 8 Cause is hard to identif y
Very Remote 9 Cause is very hard to identif y
Almost impossible 10 Cause usually not detectable
136
137
FMEA
Conducting an FMEA: Basic Steps
1. Define the scope of the FMEA.
2. Develop a detailed understanding of the current process.
3. Brainstorm potential failure modes.
4. List potential effects of failures and causes of failures.
5. Assign severity, occurrence and detection ratings.
6. Calculate the risk priority number (RPN) for each cause.
7. Rank or prioritize causes.
8. Take action on high risk failure modes.
9. Recalculate RPN numbers.
138
ROLE OF SIMPLE QC TOOLS

TOOL ROLE
Data To quantify the current status or
Gathering magnitude of the problem.
Check Sheet To facilitate data gathering.
Stratification To identify and segregate different

sources of the problem.
Pareto To prioritize the problems/causes for

Diagram taking action.
139
ROLE OF SIMPLE QC TOOLS

TOOL ROLE
Brain Storming Generating many ideas for solving a
specific problem.
Cause & Effect Generate ideas in a structured way for
Diagram & possible causes of a problem.
FMEA
Histogram To study the pattern of variation in a set
of data.
Scatter To study the relationship between two

Diagram sets of values.
140
CAUSE AND EFFECT DIAGRAM

• To generate in a structured manner, maximum
number of ideas regarding possible causes for a
problem by using brainstorming technique.
HOW TO PREPARE CAUSE AND EFFECT DIAGRAM

 Clarify the problem
 Gather members for discussion
 Conduct Brainstorming session
 Group the causes
Man, Material, Machine, Method etc.
 Draw the cause and effect chart
 Check for missing information
 Determine importance of significance of causes
141
STRUCTURE OF A CAUSE AND EFFECT DIAGRAM
Man Machine
Problem
/ Effect
Material Method
Each of the main branches has many potential sub

branches that further subdivide the potential causes.
142
Cause and Effect Diagram for High Petrol Consumption
Procedure Driver Vehicle
Spark plugs
Impatience Heavy Contacts
Poor Bad Life
Craze
anticipation attitude
Body Technical
Wrong Poor details
skill Shape
Always gears Fuel mix
late Lack of Inexperience High H.P Carburetor
awareness Wrong
Riding on culture Engine
clutch
Cylinders High Petrol
Spurious Consumption
Crossings
Restrictions Spares Impurities
Traffic Incorrect
One way
No turn Tyres Inferior Octane no.
Frequent Petrol
Faulty
Circuitous stops Negligence
Speed Breakers pressure Additives
Road
Ignorance
Potholes Irregular Incorrect viscosity
Low pressure
Poor servicing
Clogged
condition Oil
False filters
Steep economy Not changed
Low level
Road Maintenance Materials
143
USES OF CAUSE AND EFFECT DIAGRAM

• To investigate and list down the cause and effect
relationship of problem under investigation.
• Analyze the problem to trace the real root cause.
• To help stratification for collection of further data
to confirm relationship.
• To help evolve counter-measure.
144
CAUSE AND EFFECT DIAGRAM

FROM MINITAB
 Open MINITAB Worksheet.
 For each category, put your potential causes in one
column.
 Choose STAT > QUALITY TOOLS > CAUSE-
AND-EFFECT
 In label type the category name. For each label, in
causes enter the column containing the causes.
 Enter the required Effect & Title.
145
Validation of Causes
 GEMBA (Work Place) Investigation

 List each cause and verify them through workplace
observations.
Causes Specifications/ Desired Observations Remarks

states
Bunching Maximum 2 at a 6 out of 10 May be a potential
of car time moments root cause for
Delay in servicing
146
CORRELATION
 If two variables X and Y, are related such that as Y
increases / decreases with another variable X, a
correlation is said to exist between them.
 A scatter diagram is a chart that pictorially depicts

the relationship between two such data types.
Some Examples of Relationship
• Cutting speed and tool life
• Moisture content and thread elongation
• Breakdown and equipment age
• Temperature and lipstick hardness
• Striking pressure and electrical current
• Temperature and percent foam in soft drinks
147
Scatter Diagram of Automotive Speed vs. Mileage
40
35
Mileage (km/Lit)
30
25
20
15
25 35 45 55 65 75
Speed (km/h)
148
SCATTER DIAGRAM
• A scatter diagram depicts the relationship as a
pattern that can be directly read.
• If Y increases with X, then X and Y are positively
correlated.
• If Y decreases as X increases, then the two types of
data are negatively correlated.
• If no significant relationship is apparent between X
and Y, then the two data types are not correlated.
149
DIFFERENT SCATTER DIAGRAM PATTERNS
150
DATA ON CONVEYOR SPEED AND SEVERED LENGTH
Sl. No. Conveyor Severed Sl. No. Conveyor Severed
Speed Length Speed Length
(cm/sec) (mm) (cm/sec) (mm)
1 8.1 1046 16 6.7 1024
2 7.7 1030 17 8.2 1034
3 7.4 1039 18 8.1 1036
4 5.8 1027 19 6.6 1023
5 7.6 1028 20 6.5 1011
6 6.8 1025 21 8.5 1030
7 7.9 1035 22 7.4 1014
8 6.3 1015 23 7.2 1030
9 7.0 1038 24 5.6 1016
10 8.0 1036 25 6.3 1020
11 8.0 1026 26 8.0 1040
12 8.0 1041 27 5.5 1013
13 7.2 1029 28 6.9 1025
14 6.0 1010 29 7.0 1020
15 6.3 1020 30 7.5 1022
151
Scatter Diagram for Conveyor Speed and Severed Length
1050
1045
1040
Severed Length (mm)
1035
1030
1025
1020
1015
1010
1005
1000
5 5.5 6 6.5 7 7.5 8 8.5 9
Conveyor Speed (cm/sec)
152
USES OF SCATTER DIAGRAM
 If an increase in Y depends on increase in X, then,

if X is controlled, Y will be naturally controlled.
 If X is increased, Y will increase somewhat. Then

Y seems to have causes other than X.
153
REGRESSION
 Regression is the prediction of dependent variable
from knowledge of one or more other independent
variables.
 Regression Analysis is a statistical technique for
estimating the parameters of an equation relating
a particular value of dependent variable to a set of
independent variables. The resulting equation is
called Regression Equation.
 Linear regression is the regression in which the
relationship is linear.
 Curvilinear regression is the regression in which
the best fitting line is a curve.
154
SIMPLE LINEAR REGRESSION

 Only a single predictor variable or independent
variable ‘X’ (e.g.: cutting speed) and a response
variable or dependent variable ‘Y’ (e.g: tool life).
The regression equation is

Y  ab X

where, Y  Predicted value of Y
a  Intercept (the predicted value of Y when X  0)
b  Slope of the line (the amount of difference in Y
associated with a 1 - unit difference in X)
155
SIMPLE LINEAR REGRESSION

FROM MINITAB
 Open MINITAB Worksheet and collect 30 to 50 pairs of data.
 Choose STAT > REGRESSION > FITTED LINE PLOT
 In Response, enter the column containing it and in Predictors,
enter the corresponding column.
 Click OK.
 R2 or R-sq(adj) or Coefficient of Determination
= SS Regression/SS Total = 1 - (SS Error / SS Total)
156
CONTROL CHARTS
FOR ANALYSIS
157
 You have mapped your process

 You have decided how to diagnose the causes for process
drift
 But suppose a drift from the normal behavior were to
occur how would you come to know whether this drift is
because of a special cause or common cause, so that you
are prepared to investigate the details of the special
causes.
In other words we are talking of

Detecting the Departure from Normal
behavior -When & Why?
158
CONTROL CHARTS
Type of Data Common Type of Chart
Variable X-R, IX-MR
Attribute p, np, c, u
The control charts
• Isolate sources of unwanted product and process variation
• Aid in deciding on process capability
• Serve as basis for making judgement w.r.t. product and
process variation
AMONG THE MORE COMMON CONTROL

CHARTS ARE....
159
SHEWHART CONTROL CHARTS
 It is an important tool to give advance warnings

about the drift from the normal behavior.
 To draw control charts, for a process we need to

know the average and standard deviation
obtained from the process.
160
A SHEWHART CONTROL CHART

LOOKS LIKE THIS
Upper Control Limit = Target + 3 SD

S ample quality
characteristic
Target
Lower Control Limit = Target - 3 SD
S ample Number or Time
161
How do we decide something unusual may have occurred?
162
Is the process free of special cause variation?
On the shop floor this is a control chart…

In reality it is a process behavior chart.
163
A Process is Sending a Signal if...
164
“The Use of Control Charts should start with

Management, not on the shop floor.”
W. Edwards Deming
165
THE X AND R CHART

When to Use:
When studying the behavior of a single measurable
characteristic produced in relatively high volumes.
How:
By plotting sample averages (X, pronounced X-bar) and
ranges (R) on separate charts. This allows for independent
monitoring of the process average and the variation about
that average.
Conditions:
• Constant sample size.
• One characteristic per chart.
• Should have no less than 20 samples before calculating
control limits.
166
FORMULAS FOR THE X AND R CHART

Chart Control limits Centerlines Plot point Sample size
UCL = X-dbar + A2. 

X-dbar =
X X =X/n
/k
LCL = X-dbar - A2. 
2 to 9 but
3 to 5
preferred
UCL = D4. 
R  =  R/k R
LCL = D3. 
167
CALCULATION OF PLOT POINTS

For the X plot point, find the average of the sample data. In
the example below, the sample size is 4 (n=4) The range plot
point is the difference between the largest and smallest
measurement within the sample data.
Sample data
62
61
61
60
____
Total of the sample data (X) = 244
Calculate the Average (X) = 244/4 = 61.0  plot point
Range = (62-60) = 2.0 Range plot point
Plot point calculation steps for the  and R chart.

168
THE X AND R CHART FROM MINITAB

 (A) When subgroups are in one column, enter the data in
one column.
 (B) When subgroups are in rows, enter a series of
columns.
 Choose STAT > CONTROL CHARTS > Xbar-R
 When (A), enter the data column in single column and in
subgroup size, enter a subgroup size.
 When (B), enter a series of columns in subgroups across
rows of.
 Enter OK.
169
THE TARGET X AND R CHART

When to Use:
In short run situations, to continually monitor the behavior
of a process running different part numbers, and still retain
the ability to assess statistical control.
How: By coding the actual measured readings as a deviation

from a common target value. The target value becomes the
zero point on the X control chart scale.
Conditions:
• All parts on the chart are the same units and have similar
average ranges ( R’s).
• Constant sample size.
• Should have no less than 20 samples before calculating
control limits.
170
FORMULAS FOR THE TARGET X AND R CHART

Chart Control limits Centerlines Plot point Sample size
UCL = Coded X-
dbar + A2. 
Coded X-dbar Coded X= (X
X
=  Coded /k target value)
LCL = Coded X-
dbar - A2.  2 to 9 but
3 to 5
preferred
UCL = D4. 
R  =  R/k R
LCL = D3. 
171
EXAMPLE-THE TARGET X AND R CHART

Long pieces of 3/4-inch bar stock are to be cut to length to fill
three orders. Each order requires different lengths. All three
orders can be plotted on the same control chart by
standardizing the data, using the calculation steps as follows.
Order Target Inches Number of pieces

1 3.00 6
2 5.25 33
3 7.50 21
172
CALCULATION OF PLOT POINTS

For the X plot point, find the average of the sample data and
then subtract the target value. The range plot point is the
difference between the largest and smallest measurement in
the original data.
Sample data
2.90
3.05
3.10
____
Total of the sample data = 9.05
Calculate the Average (X) = 9.05/3 = 3.02

Target value = 3.00
X– target value = 0.02 Coded  plot point

Range = (3.10 –2.90) = 0.20 Range plot point
Plot point calculation steps for the Target chart. 173

HOW DID WE ARRIVE AT d2, D3, D4 & A2

• One need not go in for the mathematics
involved in calculating it ?
• These are universally accepted values.
WHAT IF A PARTICULAR VALUE USED TO

CALCULATE THE CONTROL LIMIT FALLS
OUTSIDE THE CONTROL LIMITS?
•Neglect that value and Recalculate Again.
174
Factors for constructing Variables Control Charts

Observations
A2 D3 D4 d2
in sample, n
2 1.880 0 3.267 1.128
3 1.023 0 2.575 1.693
4 0.729 0 2.282 2.059
5 0.577 0 2.115 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 2.970
10 0.308 0.223 1.777 3.078
11 0.285 0.256 1.744 3.173
12 0.266 0.283 1.717 3.258
175
“Always use an Out of Control Action Plan

(OCAP) after control chart.”
Example:
If yield X goes down:
•Check for Pressure
•Check for Temperature
•Check for Material flow
176
TEST OF HYPOTHESIS
177
TEST OF HYPOTHESIS
A Hypothesis is a statement about the probability law of
a random variable, which can be sampled.
Test of Hypothesis is sampling the random variable
whose probability law is referred to and on the basis of
the sample, deciding to accept or reject the stated
hypothesis.
If sample results seem consistent with the hypothesis,
accept the stated hypothesis.
If sample results do not seem consistent with the stated
hypothesis, we would like to reject it.
178
CONCEPT OF SIGNIFICANCE
• A development man, following up a bright idea, will often get
small sample evidence which favours his hunch. A sensible
and cautious man will at once try to put bias out of court by
considering the possibility of the apparent value of his hunch
being due to pure chance. Suppose he were asking whether a
new process he had thought of were better than the existing
process, then he might sensibly adopt what the statistician
calls a Null Hypothesis, i.e., he would assume that there was no
real significant difference between his pet process and the
standard. He would assume, provisionally, that the sample
results obtained by his new process might well have come from
the same population as results obtained by the standard
process. The position then would be that his pet process had
produced a sample of above average quality.
179
• His next step would be to calculate the probability that the
standard process would give a sample as good as that obtained
by the new process. If it proved that the chance of the
standard process giving so good a sample were extremely low,
then, although his sample were small, he would be justified in
rejecting the Null Hypothesis, on the grounds that it seemed a
very unlikely explanation. It would then be fair - and
unbiased to conclude that his new process could be accepted as
having a real superiority to the standard process. On the
other hand, if it proved that such a sample might arise with
fair frequency from the standard process, it would be rash or
dishonest to claim the new process as superior to the standard
process.
180
When we get a result which is very unlikely to have arisen by
chance we say that the result is statistically significant. By this
we mean simply that it would be rather fantastic to ascribe it to
chance, that the difference must, in all common sense, be
accepted as a real difference. Since the judgment is based on
probability, falling short of absolute certainty, we indicate our
degree of confidence in the reality of the difference by describing
it as ‘significant’ or 'highly significant' depending on the
probability level associated with our judgment. Thus a result that
would only arise in one trial in twenty on the basis of pure chance
we should describe as ‘significant’. A result that would arise on
the basis of pure chance only once in a hundred trials we should
describe as 'highly significant'. The proper thing to do, of course
is not simple to use words of this kind but to quote the level of
probability p = 0.05, p = 0.01.
181
a. Formulation of Null Hypothesis (H0)
To find out whether a "real change" is indicated by the
experimental results, the hypothesis that there is "no real
chance" is formulated. This hypothesis of no real change is
called the null hypothesis. Whether the null hypothesis is
tenable in the light of experimental results is tested.
b. Statistical test criterion

The experimental data is condensed into a single statistical
test criterion relevant to the null hypothesis. The test
criterion measures the departure from the null hypothesis.
182
c. Decision on null hypothesis
A decision is made whether the departure from the null

hypothesis indicated by the test criterion is such that this
hypothesis must be abandoned or accepted. For this the
probability of obtaining a deviation as large as the observed
deviation on the assumption that the null hypothesis is true, is
obtained from the relevant sampling distribution. If this
probability is sufficiently small - 0.05 or 0.01 the null
hypothesis is discredited.
183
In practice,
i. the value corresponding to the probability level of 0.05 or
0.01 is obtained from the statistical tables relevant to the
null hypothesis.
ii. the statistical test criterion based on experimental data is
compared to the value obtained from the tables.
iii. the decision reject the null hypothesis (Ho) is taken when
the p value is less than 0.05, otherwise the null
hypothesis is accepted.
iv. When the null hypothesis is rejected, the result is said to
be ‘statistically significant’. The alternative Hypothesis
(Ha) is accepted.
184
HYPOTHESIS
If one is asked if one sample say (A) is similar to another
sample (B) the answer can be
 Yes, both are similar (or)
 No, both are not similar
The former is called a NULL HYPOTHESIS (H0) and is

always based on an assumption of similarity.
The latter is called the ALTERNATE HYPOTHESIS

(H1) and is always based on an assumption of
dissimilarity
185
HYPOTHESIS CAN MATHEMATICALLY

BE PUT AS ...
NULL HYPOTHESIS (H0)
• A Is similar to B. Mathematically A = B
ALTERNATE HYPOTHESIS (H1)

• A is Dissimilar to B Mathematically A  B
• A is Less than B Mathematically A<B
• A is Greater than B Mathematically A>B
For a H0, any one of the three H1 can be selected.
186
EXAMPLE-HYPOTHESIS WRITING ( A B TYPE)

• Rejection of 1st shift is 2 % & 2nd shift is 2.8 %.
Is there a significant difference between rejections of

the 1st & 2nd shift? or
Do the rejections of the 1st & 2nd shift belong to the
same population
H0 : There is no significant diff. between rejections of

1st and 2nd shift or they belong to the same population.
H1 : There is a significant diff. between rejections of 1st and

2nd shift or they belong to different populations
187
EXAMPLE-HYPOTHESIS WRITING ( A > B TYPE)

• Emission level of engine is 10 ppm. A catalytic
converter is fitted to decrease emission levels.
HAS FITTING OF THE CATALYTIC CONVERTER

RESULTED IN A SIGNIFICANT REDUCTION OF
EMISSION LEVELS?
H0 : There is no significant reduction in ppm levels after

fitting of catalytic converter
H1 : Fitting of the catalytic converter has resulted in

decrease of ppm levels
188
EXAMPLE-HYPOTHESIS WRITING ( A < B TYPE)
• Power developed by an engine is 10 BHP. A

supercharger is fitted to increase power.
HAS FITMENT OF A SUPERCHARGER

RESULTED IN INCRESE OF POWER
H0 : Fitment of the supercharger has not resulted in

increase of power developed
H1 : Fitment of the supercharger has resulted in increase

of power
189
H1 PICTORIALLY CALLED
2 tailed test
A B
A<B 1 tailed lower test
A>B 1 tailed upper test
190
DIFFERENCE BETWEEN
2 TAILED AND 1 TAILED TEST
• If  = 5 % i.e. 0.05
2 TAILED 1 TAILED
/ = 0.025 / = 0.025  = 0.05
191
PICTORIALLY
A A
B B B
Critical Critical Critical
Value Value Value
For A :We fail to reject the null hypothesis

For B : Null Hypothesis is rejected.
The hatched area represents area of confidence
The shaded area represents area of risk
If point is in area of confidence : Accept Hypothesis
If point is in area of risk : Reject Hypothesis
192
P-VALUE (OBSERVED SIGNIFICANCE LEVEL)

 The P-value is the probability that the test statistic will
take on a value that is at least as extreme as the
observed value of the statistic when the null hypothesis
H0 is true.
 Thus, a P-value conveys much information about the
weight of evidence against H0, and so a decision maker
can draw a conclusion at any specified level of
significance.
 The P-value is the smallest level of significance that
would lead to rejection of the null hypothesis H0.
 IF P-VALUE LESS THAN ‘’, REJECT THE NULL
HYPOTHESIS H0. with 100 (1-p) level of confidence.
193
TEST ON MEANS OF TWO NORMAL DISTRIBUTIONS-
VARIANCES UNKNOWN BUT EQUAL
Hypothesis Test Statistic
H0 : 1   2 t0 
X 1  X 2 
1 1
sp 
n1 n2
n1 - 1s12  n2 - 1s 22

H 1 : 1   2 where, s p 
n1  n2 - 2 
H0 : 1   2
H 1 : 1   2
H0 : 1   2
H 1 : 1   2
194
EXAMPLE-TEST ON MEANS OF NORMAL DISTRIBUTION

• A petroleum company will soon have to switch a large
proportion of its production from a formulation containing
tetra-ethyl lead to a lead-free formulation. An important
quality characteristic of gasoline is the road octane number. If
gasoline with a road octane number that is too low for the
engine compression is used, excessive knocking will result.
The company has formulated the lead-free product so that its
road octane number should be identical to that of the older,
lead-containing product. An experiment is performed in
which 10 observations on road octane number are obtained for
each product formulation. These data are given in the
following table. Do these data prove that lead-free formulation
is superior to that of formulation containing tetra-ethyl lead?
195

Table: Road octane numbers for two gasoline formulations
Formulation 1 Formulation 2
(Contains tetra-ethyl lead) (contains no lead)
89.5 89.5
90.0 91.5
91.0 91.0
91.5 89.0
92.5 91.5
91.0 92.0
89.0 92.0
89.5 90.5
91.0 90.0
92.0 91.0
196
• DO IT YOURSELF WITH  = 0.01
197
TEST ON MEANS-UNKNOWN VARIANCES FROM MINITAB

 Enter each sample data in separate columns..
 Choose STAT > BASIC STATISTICS > 2-SAMPLE t
 choose samples in different columns.
 In first, enter the first sample data column.
 In second, enter the second sample data column
 check for assume equal variances.
 Enter OK.
 If, P-value < 0.05; Reject the Null Hypothesis.
198
EXAMPLE-TEST ON MEANS OF PAIRED DATA

• Two different types of machines are used to measure the
tensile strength of synthetic fiber. We wish to determine
whether or not the two machines yield the same average
tensile strength values. Eight specimens of fiber are randomly
selected, and one strength measure is made using each
machine on each specimen and are shown in the table.
Paired tensile strength data
Specimen Machine1 Machine 2 Difference
1 74 78 -4
2 76 79 -3
3 74 75 -1
4 69 66 3
5 58 63 -5
6 71 70 1
7 66 66 0
8 65 67 -2
199
TEST ON MEANS OF PAIRED DATA

 The data in this experiment have been paired to prevent
difference between fiber specimens (which could be
substantial) from affecting the test on the difference between
machines. The test procedure consists of obtaining the
differences of the pair of observations on each of the ‘n’
specimens, say dj = (X1j – X2j); j = 1,2, ..., n, and then testing
the hypothesis that the mean of the difference d is zero. Note
that testing H0 : d = 0 is equivalent to testing H0 : 1 = 2 ;
furthermore, the test on d is just the one-sample t test. The
test statistic is
200
TEST ON MEANS OF PAIRED DATA
d
t0 
Sd n
1 n
where d  dj
n j 1
2
 n 
d j 
 
 d   j 1 
n n

2
j d d 2
j 
j 1 j 1 n
and S d2  
n1 n1
and H 0 :  d  0 is rejected if t 0  t/2,n 1

201
EXAMPLE-TEST ON MEANS OF PAIRED DATA

In our example we find that
1 n 1
d   d j  (11)  1.38
n j 1 8
2
 n 
  dj 
 
   
n


j 1 2
dj 
2
65 
11
j 1 n 8  7.13
Sd 
2

n 1 7
P value = 0.094
Therefore, the test statistic
d  1.38
t0    1.46
Sd n 2.67 8
• Choosing  = 0.05, we find p value is 0.094, and we conclude

that there is no strong evidence to indicate that the two
machines differ in their mean tensile strength measurements.
202
TEST ON MEANS OF PAIRED DATA FROM MINITAB

 Enter each sample data in separate columns of equal
length..
 Choose STAT > BASIC STATISTICS > PAIRED t
 In first sample, enter the first sample data column.
 In second sample, enter the second sample data column
 Enter OK.
203
TEST ON VARIANCE(S) OF NORMAL DISTRIBUTIONS
Hypothesis Test Statistic

(n - 1) S 2
H0 :  2   2  02 
0 2
0
H1 : 2   2
0
S 12
H 0 :  12   22 F0 
S 22
H 1 :  12   22
204
EXAMPLE-TEST ON VARIANCES
• We will test the hypothesis that the variance of the road octane
numbers for the two gasoline formulations in the “example given
in Test on Means” are the same; that is,
H 0 : 12   22
H1 : 12   22
Since S12  1.34 and S 22  1.07, the test statistic is
S12 1.34
F0  2   1.25
S 2 1.07 P value = 0.3725
• We conclude that there is no evidence to warrant

rejection of H0.
205
TEST ON TEST ON VARIANCES FROM MINITAB

 Enter each sample data in separate columns of equal
length..
 Choose STAT > BASIC STATISTICS > 2
VARIANCES
 choose samples in different columns
 In first sample, enter the first sample data column.
 In second sample, enter the second sample data column
 Enter OK.
206
207
Example
There was a change in the process and the process owner claimed that the average cycle time has
reduced.
The data shows the follow
Old process: 15, 20, 12, 5, 30
New process: 8, 9, 12, 11
Is his claim tenable or true?
Ho(Null Hypothesis): There is no difference in the mean delivery time between old process & new
process:
Mu Old = Mu New
Steps for MINITAB
1. STAT>Basic Statistics>2 Variances>Click>enter variables>OK
2. Interpret P-Value in F-Test
3. If P-Value<0.05 reject Ho
4. Declare characteristics are different
5. Look at the Sigma Values in the Session
6. STAT>Basic Statistics>2 Sample t>Click>enter variables>Click/No click “Assume equal variances”
based on
Step 3 results> (Ensure Alternatives in Options is “ not Equal”)>Graphs>Boxplot> OK
7. If P-Value<0.05 reject Ho
8. Declare characteristics are different
9. Look at the Summaries in the Session
10. Use Box-plot graph as a presentation tool
208
Test for Equal Variances

Level1 Old Process
Level2 New Process
ConfLvl 95.0000
Bonferroni confidence intervals for standard deviations
Lower Sigma Upper N Factor Levels
5.23095 9.34345 32.3241 5 Old Process
0.95953 1.82574 8.6467 4 New Process
F-Test (normal distribution)
Test Statistic: 26.190
P-Value : 0.023
Levene's Test (any continuous distribution) Boxplots of Old Proc and New Proc
(means are indicated by solid circles)
Test Statistic: 2.845
P-Value : 0.136 30
Test for Equal Variances: Old Process vs New Process

20
Two-Sample T-Test and CI: Old Process, New Process
10
Old Proc New Proc
209
THE CHI-SQUARE TEST
210
THE CHI-SQUARE TEST
 We talked of averages and standard deviations but we
may also have to deal with attributes.
 For attribute data we use the Chi-Square Test ()
(Pronounced as Ki of Kite).
 This Test, tests the frequency of the actual occurrence
vs. the frequency of expected occurrence to help decide
whether significant change has occurred.
E.g.: A coin is flipped 100 times. Heads occurs 40 times while
tail occurs 60 times.
Did it happen by chance? (or) Is the coin a trick coin ?
211
THE CHI-SQUARE GOODNESS OF FIT TEST

• The test procedure requires a random sample of size ‘n’ of the
random variable ‘X’, whose probability density function is
unknown. These n observations are arrayed in a frequency
histogram, having ‘k’ class intervals. Let Oi be the observed
frequency in the ith class interval. From the hypothesized
probability distribution we compute the expected frequency
in the ith class interval, denoted Ei. The test statistic is
2 k (Oi - Ei )2
0  
i1 E
i
It can be shown that χ  2 approximately follows chi  square distributi on with k  p 1 degress of
0
freedom, where p represents the number of parameters of the hypothesized distributi on estimated
by sample statistics . This approximation improves as n increases. We would reject the hypothesis
that X conform s to the hypothesized distributi on if  2   2 .
0  , k  p1
212
EXAMPLE -THE CHI-SQUARE GOODNESS OF FIT TEST

• A computer scientist has developed an algorithm for
generating random integers over the interval 0-9. He codes
the algorithm and generates 1000 random digits and the data
is shown below. Is there evidence that the random number
generator is working correctly.
0 1 2 3 4 5 6 7 8 9 Total n
Observed 94 93 112 101 104 95 100 99 108 94 1000
frequencies, Oi
Expected 100 100 100 100 100 100 100 100 100 100 1000
frequencies, Ei
213

• If the random number generator is working correctly, then
the values 0-9 should follow the discrete uniform distribution,
which implies that each of the integers should occur exactly
100 times. That is, the expected frequencies Ei = 100, for i = 0,
1, 2, …, 9. Since these expected frequencies can be determined
without estimating any parameters from the sample data, the
resulting chi-square goodness of fit test will have
(k-p-1) = 10-0-1 = 9 degrees of freedom.
• The observed value of the test statistic is
2
2 k (Oi - E i ) (94 - 100) 2 (93 - 100) 2 (94 - 100) 2
      ...   3.72
0 i1 E 100 100 100
i
Since  2  16.92, we are unable to reject the hypothesis that the data come fom a discrete
0.05, 9
uniform distributi on. Therefore, the random number generator seems to be working satisfactorily .
214
A coin is flipped 100 times. Heads occurs 40 times while tail

occurs 60 times.
Did it happen by chance? (or) Is the coin a trick coin ?
H0: The difference is due to chance

H1: The diff. is such that it can be attributed to the
existence of some assignable cause .
OUTCOME OBSERVED (O) EXPECTED (E)
HEAD 40 50
TAIL 60 50
215

OUTCOME OBSERVED (O) EXPECTED (E) (O-E)2/E
HEAD 40 50 2
TAIL 60 50 2
We use MINITAB and find that p value is 0.005. Hence

We reject the Null hypothesis of independence.
It means Head occurs significantly less number of times than
Tails.
216
EXAMPLE -CHI-SQUARE CONTINGENCY TEST

Equal No. of Refrigerators from Bangalore, Hyderabad and
Mohali were checked for Compressor failure (CF), Leaks (L),
Thermostat failures (TF) & Relay failures (RF).
LOCATION CF L TF RF
BANG 15 21 45 13
HYD 26 31 34 5
MOHALI 33 17 49 20
Are rejections occurring dependent or independent of

where refrigerators are made ?
217
H0: Defects are independent of location
H1 : Defects are dependent on location
LOCATION CF L TF RF TOTAL
OBS 15 21 45 13 94
BANG
EXP 22.51 20.99 38.94 11.5
OBS 26 31 34 5 96
HYD
EXP 22.9 21.44 39.77 11.81
OBS 33 17 49 20 119
MOHALI
EXP 28.5 26.57 49.29 74.63
TOTAL 74 69 128 38 309
To Calculate Expected for CF at BANG: = (94 x 74) /309 = 22.51

218

calc = 2.506+ 0 + 0.944 +0.179 +0.394 +4.266 +0.836 +3.923
+0.711 +3.449+0.002+1.967 =19.178
Degree of freedom = (no. of rows-1) (no. of columns-1)
= (4-1) x (3-1) = 6
The p value is 0.0039
Hence H0 is Rejected
Hence, rejections are dependent of location of

production of Refrigerators.
219
CHI-SQUARE CONTINGENCY TEST FROM MINITAB

 Enter the data in separate columns in classification
variables..
 Choose STAT > TABLES > CHI-SQUARE TEST
 In columns containing the table, enter the data columns.
 Enter OK.
 If, P-value < 0.05; Reject the Null Hypothesis and
conclude that there is evidence for association.
220
Example
Data were collected for revisions in the drawing Region wise
Eastern: 10 out of 25, Northern: 2 out of 10,
Is the efficiency of the Northern region in getting the drawing approved better?
Ho(Null Hypothesis): There is no difference in proportion of drawings revised between regions

P eastern= P northern
MINITAB Steps
Stat>Basic statistics>2 proportions > Summarise data>Enter Trials & successess(or failures whichever is
less)>OK
Interpret P-Value in the sessions as earlier
Test and CI for Two Proportions
Sample X N Sample p
1 10 25 0.400000
2 2 10 0.200000
Estimate for p(1) - p(2): 0.2

95% CI for p(1) - p(2): (-0.113594, 0.513594)
Test for p(1) - p(2) = 0 (vs not = 0): Z = 1.25 P-Value = 0.211
* NOTE * The normal approximation may be inaccurate for small samples.
221
Example
There are three methods for welding a tube
Method 1 - Single-V Weld Prep – 80 joints inspected 5 were reported unacceptable
Method 2 – J-prep – 100 joints inspected 2 were reported unacceptable
Method 3 – Square ends – 50 joints inspected 10 were reported unacceptable
What do you conclude about the performance of the different methods?
Ho = there is no difference among the methods

Minitab Steps
Enter the data in the worksheet in three columns>Stat>Tables>Chi-sqare test>OK
Interpret P value and look for largest value in the Chi-square calculation if P value <0.05
Chi-Square Test: acceptable, not acceptable
Expected counts are printed below observed counts

acceptab not acce Total
1 75 5 80
74.09 5.91
2 98 2 100
92.61 7.39 Chi-Square
3 40 10 50 Calculation
46.30 3.70
Total 213 17 230
Chi-Sq = 0.011 + 0.141 + 0.314 + 3.932 + 0.858 + 10.754 = 16.011
DF = 2, P-Value = 0.000
1 cells with expected counts less than 5.0
Means Ho is not valid
222
ANALYSIS OF VARIANCE
(ANOVA)
223
ANALYSIS OF VARIANCE (ANOVA)

 Analysis of variance is a technique for examining whether
there exist significant differences between two or more
population averages.
 Generally the case of two samples is dealt with by the t-
test.
 Analysis of Variance is a powerful tool applicable for two
different purposes.
a. To identify the dominant 'factors' from a list of suspects;
b. To estimate the contribution of different factors in the variation
of the characteristic under study.
224
Procedure : ANOVA of One Way Classification
1. Let ‘X’ denote the individual observations, ‘n’ the number of

observations in each of ‘k’ samples and N = kn.
2. Compute the totals t1, t2, tk, of all samples and grand total
T =  ti =  Xi
3. Compute T2/N -This is known as correction factor (CF).
4. Square all observations and obtain their total as  Xi2.
5. Subtract (3) from (4) to obtain  Xi2- T2/N. This is the total
sum of squares with (N - 1) degrees of freedom.
6. Compute ti2 for each sample and add. Divide the result by ‘n’
to give  ti2/n.
225

7. Subtract (3) from (6) to obtain  ti2/n-T2/N. This is between
samples sum of squares with (k-1) degrees of freedom.
8. Subtract (6) from (4) to obtain  Xi2 -  ti2/n. This is the
'residual' or 'within samples sum of squares' with (N-k)
degrees of freedom.
9. Verify that (5) = (7) + (8).
10. Prepare an analysis of variance table as follows:
Source of SS df MS F Estimates of
variation components of
variance
Between samples (7) k-1 B B/A (B-A)/n
Within Samples (8) or N-k A A

(5)-(7)
Total (5) N-1
226
11. Obtain the mean squares by dividing the sum of squares by

the appropriate degrees of freedom.
12. Compute F as the ratio of ‘between samples’ (class) mean

square to the 'within class' means square (residual).
13. If the computed value of F is greater than the tabular value,

then there is evidence that the ‘k’ samples have different
means. Note that each one of the means is not necessarily
different from every other mean.
227
EXAMPLE-ANOVA
• The cycle time in hours for closure of customer complaints from
the four regions were recorded as follows (Data are coded):
Manager feels that the regions affect the time for closure of a
customer complaint
REGION
E W N S
66 74 55 52
65 71 56 49
72 60 55 55
69 65 49 53
70 66 53 51
342 336 268 260
228
EXAMPLE-ANOVA
The method of computation for analysis of variance is as follows:
1. Sum of all observations: 66 + 65 + … + 51 = 1206.
2. Number of observations (N): 20
3. Square (1) and divide by (2): (1206)2/20 = 72721.8. This is
called correction factor (CF).
4. Square each individual observations and add:
662 + 652 +............ + 512 = 74060
5. Square each column total and divide their sum by the number of
observations in each column:
3422+3362+2682+2602 = 73856.8
5
229
EXAMPLE-ANOVA
6. Total sum of squares : (4) - (3) = 1338.2
degrees of freedom for this are N - 1 = 19.
7. Sum of squares between regions: (5) - (3) = 1135.0
degrees of freedom for this = No. of levels -1 = 4 - 1 = 3.
8. Residual sum of squares: (6) - (7) = 203.2
degrees of freedom for this = 16.
The analysis of variance table is now set up as follows:
Source of variation Sum of Degrees of Mean F
Squares freedom Squares
Between regions 1135.0 3 378.3 29.8**
Residual 203.2 16 12.7
Total 1338.2 19
230
EXAMPLE-ANOVA
• The null hypothesis is that there is no real difference between

regions. This hypothesis is tested by the F statistic for the ratio
between regions mean square to residual mean square. The
calculated value of F = 29.8. For 3 and 16 degrees of freedom
exceeds the tabular value 5.29 of F, even at 1% level of
significance.
• Therefore the null hypothesis is rejected and it is concluded

that real differences between regions - exist.
231
ANOVA FROM MINITAB

 Enter the data in one column and its corresponding level
of the factor in another column
 Choose STAT > ANOVA > ONE-WAY
 In response, enter the data column.
 In factor, enter the levels of the factor column.
 Enter OK.
 If, P-value < 0.05; Reject the Null Hypothesis and
conclude that there is a difference in means for all the
levels of the factor.
232
Example
There are four ways of moulding a casting

Method1 – Without painting the mould – 196, 198, 202, 201 (Hardness Values in BHN)
Method2 – Painting the mould in single wash – 178, 200, 185, 203
Method3 – Painting the mould in two washes – 205, 190, 210,
Question1- Are the methods giving same results with respect to variation in Hardness and average
Hardness?
Case1 Ho: There is no difference among the methods w.r.t. variation in Hardness: 21= 22 = 23
Case 2 Ho : There is no difference among the methods w.r.t. average Hardness: 1= 2 = 3
Steps for testing of equal variances

Stack the data>Manip>Stack>Identify columns>Identify storage column>ok
Stat>Anova>test for equal variances>enter response and factors>ok
Interpret P value in Bartlett’s test –if P value is less than 0.05 conclude at least one of the variances are
different
Conclusion as usual
Test for equal means
Stat>Anova(one way or one way unstacked)>enter variables>graphs>boxplot>ok>ok
Interpret P Value in the Session (Analysis of Variance Table)-if P value <0.05 conclude at least one of the
means is different
Delete the suspect and retest
Use Boxplot as a presentation tool
233
234
Boxplots of response by methods
Boxplots of response by methods

(means are indicated by solid circles)
210
200
response
190
180
methods
method1
method2
method3
235
CONCEPT OF
DESIGN OF
EXPERIMENTS (D.O.E.)
236
DESIGN OF EXPERIMENTS
Design of experiments (DOE) is a valuable tool to
optimize product and process designs, to accelerate the
development cycle, to reduce development costs, to
improve the transition of products from research and
development to manufacturing and to effectively
trouble shoot manufacturing problems. Today, Design
of Experiments is viewed as a quality technology to
achieve product excellence at lowest possible overall
cost.
237
IN DESIGN OF EXPERIMENT
• You will find the 1st cut of important X’s

which are very important.
• At what levels each of these X’s has to be set

on.
• The best possible combination of levels for

all the important factors so as to optimize
the process.
238
STATISTICALLY DESIGNED EXPERIMENTS

 A statistically designed experiment permits simultaneous
consideration of all the possible factors that are suspected
to have bearing on the quality problem under investigation
and as such even if interactions effect exist, a valid
evaluation of the main effect can be made. Scanning a
large number of variables is one of the ready and simpler
objectives that a statistically designed experiment would
fulfill in many problem situations.
 Even a limited number of experiments would enable the

experimenter to uncover the vital factors as which further
trials would yield useful results. The approach has
number of merits, it is quick, reliable and efficient.
239
OBJECTIVES OF EXPERIMENTATION
The following are some of the objectives of
experimentation in an industry :
 Improving efficiency or yield

 Finding optimum process settings
 Locating sources of variability
 Correlating process variables with product
characteristics
 Comparing different processes, machines, materials etc
 Designing new processes and products.
240
DIFFERENT FACTORS OF EXPERIMENTATION
1. Recognition and Statement of the Problem

2. Choice of Factors and Levels
3. Selection of a Response Variables
4. Choice of Experimental Design
5. Performing the Experiment
6. Data Analysis
7. Conclusions and Recommendations
241
SOME IMPORTANT DESIGNS
 Completely Randomized Design (CRD)

 Randomized Block Design (RBD)
 Incomplete Randomized Block Design (IRBD)
 Latin Square Design (LSD)
 Factorial Design
 Fractional Factorial Design
 Orthogonal Array (OA) Design
242

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SQC UNIT BANGALORE, GREEN BELT PROGRAM

IN THE ANALYSIS PHASE YOU WILL...

IN MEASURE PHASE, WE DEALT WITH Y’s.

Start Step 1 Step 2 Step 3

TYPES OF FLOWCHARTS USEFUL

– Activity flowcharts – Deployment flowcharts

flowcharts are Approach front desk

a process. They Key of symbols

often capture YES

rework loops, Decision

complexity, etc. Sequence

involved in each step. 3

• They are particularly 4

useful in processes that 5

involve the flow of Files invoice against receipt

information between Pays bill

WHICH FLOWCHARTING TECHNIQUE

 To illustrate where in  To identify rework  To clarify roles and

Which flowchart do you intend to use for your project?

HOW TO CREATE FLOWCHARTS

– Arrange the steps in sequence

• Flowcharts can map four different perspectives on a

Take Original Copier Yes Wait? No Leave

Place No Glass Yes Clean

Yes Paper No Find

Remove Collect Staple Clear Leave

• Entering order • Waiting

FLOWCHART WITH WASTE HIGHLIGHTED

complexity to Yes 17.

Example: Changeover process

• An works correctly move

opportunity across the right side.

organized to Take Original

steps from Select

added steps. Select

Yes Yes Yes

Yes Paper No Find

HOW TO CREATE AN OPPORTUNITY FLOWCHART

than cost-added- Loop

– Time flows down

MEASURING CYCLE TIME

VALUE ANALYSIS MATRIX

Total 100 100%

Root Cause Failure Effect

With this in mind, another way to think of failures, effects, and

Failure - f(x) Effect - y

Cause Set 1 - x1's Effect 1 - y1

Cause Set 2 - x2's Effect 2 - y2

. Failure Mode - f(x) .

Risk Priority Numbers

Severity rates the seriousness of the effect for the potential

Severity Rank Criterion

Once again, occurrence guidelines can be developed and should

Occurrence Rank Criterion Possible failure rate

Remote 1 Unklikely that cause occurs £ 1 in 15,00,000

Very low 2 Very low chance that cause occurs 1 in 1,50,000

Low 3 Few occurrences of cause likely 1 in 15,000

Moderate 5 Medium number of occurences of cause 1 in 400

Almost certain 1 Cause obvious and easy to detect

Very High 2 Very high chance of detecting the cause

High 3 High chance of detecting the cause

Moderately High 4 Cause easily detected by inspection

Moderate 5 Moderate likelihood of detection

Very Remote 9 Cause is very hard to identif y