Introduction to Variability

Acceptance Sampling
Acceptance Sampling

Company receives shipment from

vendor

Sample taken from lot,

Quality characteristic inspected

Lot Sentencing: NO
Accept lot?

YES

Use lot in Return lot

production to vendor
 Three Important Aspects of
Acceptance Sampling
1. Purpose is to sentence lots, not to estimate lot quality

2. Acceptance sampling does not provide any direct form of

quality control. It simply rejects or accepts lots. Process
controls are used to control and systematically improve quality,
but acceptance sampling is not.

3. Most effective use of acceptance sampling is not to “inspect

quality into the product,” but rather as audit tool to insure that
output of process conforms to requirements.
 Three Approaches to Lot
Sentencing
1. Accept with no inspection

2. 100% inspection – inspect every item in the lot, remove all

defectives

Defectives – returned to vendor, reworked, replaced or

discarded

3. Acceptance sampling – sample is taken from lot, a quality

characteristic is inspected; then on the basis of information in
sample, a decision is made regarding lot disposition.
 Acceptance Sampling
Used When:
• Testing is destructive
• 100% inspection is not technologically feasible
• 100% inspection error rate results in higher percentage of
defectives being passed than is inherent to product
• Cost of 100% inspection extremely high
• Vender has excellent quality history so reduction from 100% is
desired but not high enough to eliminate inspection altogether
• Potential for serious product liability risks; program for
continuously monitoring product required
Advantages of Acceptance Sampling
over 100% Inspection

• Less expensive because there is less sampling

• Less handling of product hence reduced damage
• Applicable to destructive testing
• Fewer personnel are involved in inspection activities
• Greatly reduces amount of inspection error
• Rejection of entire lots as opposed to return of defectives
provides stronger motivation to vendor for quality improvements
 Disadvantages of Acceptance
Sampling (vs 100% Inspection)
• Always a risk of accepting “bad” lots and rejecting “good” lots
– Producer’s Risk: chance of rejecting a “good” lot – 
– Consumer’s Risk: chance of accepting a “bad” lot – 
Truth Lot Good Lot Bad
Belief
Lot Good No Error  Error

Lot Bad  Error No Error

 Disadvantages of Acceptance
Sampling (vs 100% Inspection)
• Always a risk of accepting “bad” lots and rejecting “good” lots
– Producer’s Risk: chance of rejecting a “good” lot – 
– Consumer’s Risk: chance of accepting a “bad” lot – 

• Less information is generated about the product or the process

that manufactured the product

• Requires planning and documentation of the procedure – 100%

inspection does not
 Lot Formation
• Lots should be homogeneous
– Units in a lot should be produced by the same:
• machines,
• operators,
• from common raw materials,
• approximately same time
– If lots are not homogeneous – acceptance-sampling scheme may
not function effectively and make it difficult to eliminate the source
of defective products.
• Larger lots preferred to smaller ones – more economically efficient
• Lots should conform to the materials-handling systems in both the
vendor and consumer facilities
– Lots should be packaged to minimize shipping risks and make
selection of sample units easy
 Random Sampling
• IMPORTANT:
– Units selected for inspection from lot must be chosen at random
– Should be representative of all units in a lot

• Watch for Salting:

– Vendor may put “good” units on top layer of lot knowing a lax
inspector might only sample from the top layer

• Suggested technique:
1. Assign a number to each unit, or use location of unit in lot
2. Generate / pick a random number for each unit / location in lot
3. Sort on the random number – reordering the lot / location pairs
4. Select first (or last) n items to make sample
 Single Sampling Plans for
Attributes
• Quality characteristic is an attribute, i.e., conforming or
nonconforming
– N - Lot size
– n - sample size
– c - acceptance number

• Ex. Consider N = 10,000 with sampling plan n = 89 and c = 2

– From lot of size N = 10,000
– Draw sample of size n = 89
– If # of defectives  c = 2
• Accept lot
– If # of defectives > c = 2
• Reject lot
How to Compute the OC Curve
Probabilities
• Assume that the lot size N is large (infinite)

• d - # defectives ~ Binomial(p,n)
where
– p - fraction defective items in lot
– n - sample size

• Probability of acceptance:
c
n x
Pa  P  x  c      p  1  p 
n x

x 0  x 
 Example
• Lot fraction defective is p = 0.005,
n = 89 and c = 2. Find probability of accepting lot.

P( accept lot )  P( no. defectives  2 | p  .005, n  89)

2
 n!  x
  p (1  p ) n x

x 0  x !( n  x )! 

2
 89 ! 
  .005 x
(. 995 )89  x

x 0  x !(89  x )! 

 0.9897
 Example
• Lot fraction defective is p = 0.01,
n = 89 and c = 2. Find probability of accepting lot.

P( accept lot )  P( no. defectives  2 | p  .01, n  89)

2
 n!  x
   p (1  p ) n x

x 0  x !( n  x )! 

2
 89 !  x
   . 01 (. 99 )89  x

x 0  x !(89  x )! 

 0.9397
 OC Curve

• Performance measure of acceptance-sampling plan

– displays discriminatory power of sampling plan
• Plot of: Pa vs. p
– Pa = P[Accepting Lot]
– p = lot fraction defective
p = fraction defective in lot Pa = P[Accepting Lot]

0.005 0.9897

0.010 0.9397

0.015 0.8502

0.020 0.7366

0.025 0.6153

0.030 0.4985

0.035 0.3936
 OC Curve

Probability of Acceptance, Pa

1.0
0.8 n=89
0.6 c=2
Pa
0.4
0.2
0.0
0.00 0.02 0.04 0.06 0.08 0.10
Lot fraction defective, p

• OC curve displays the probability that a lot submitted with a certain fraction
defective will be either accepted or rejected given the current sampling plan
 Ideal OC Curve

• Suppose the lot quality is considered bad if p = 0.01 or more

• A sampling plan that discriminated perfectly between good and
bad lots would have an OC curve like:
Probability of Acceptance, Pa
1.00

0.01 0.02 0.03 0.04

Lot fraction defective, p

 Ideal OC Curve

• In theory it is obtainable by 100% inspection IF inspection were error

free.

• Obviously, ideal OC curve is unobtainable in practice

• But, ideal OC curve can be approached by increasing sample size, n.

 Effect of n on OC Curve

Probability of Acceptance, Pa

1.00
0.80
n=50, c=1
0.60
Pa n=100, c=2
0.40
n=200, c=4
0.20
n=1000, c=20
0.00
0.00 0.02 0.04 0.06 0.08 0.10
Lot fraction defective, p

• Precision with which a sampling plan differentiates between good and

bad lots increases as the sample size increases
 Effect of c on OC Curve

Probability of Acceptance, Pa

1.0
0.8
n=89, c=2
0.6
Pa n=89, c=1
0.4
0.2 n=89, c=0
0.0
0.00 0.02 0.04 0.06 0.08 0.10

Lot fraction defective, p

• Changing acceptance number, c, does not dramatically change

slope of OC curve.
• Plans with smaller values of c provide discrimination at lower
levels of lot fraction defective
 Producer and Consumer Risks in
Acceptance Sampling

• Because we take only a sub-sample from a lot, there is

a risk that:
– a good lot will be rejected
(Producer’s Risk – )

and
– a bad lot will be accepted
(Consumer’s Risk – )
 Producer’s Risk - 
• Producer wants as many lots accepted by consumer as possible so
– Producer “makes sure” the process produces a level of fraction defective
equal to or less than:

p1 = AQL = Acceptable Quality Level

 is the probability that a good lot will be rejected by the consumer even
though the lot really has a fraction defective  p1

• That is,

 Lot is rejected given that process 

  P 
 has an acceptable quality level 

  P  Lot is rejected p  AQL 

 Producer’s Risk - 
• n=89, c=2, p=AQL=0.01, find producer risk

P( reject lot )  P( no. defectives  3 | p  .01, n  89)
89
 89 !  x
  .01 (.99 )89  x

x 3  x !(89  x )! 

2
 89 !  x
1     . 01 (. 99 )89  x

x 0  x !(89  x )! 

 0.0103
 Consumer’s Risk - 
• Consumer wants to make sure that no bad lots are accepted
– Consumer says, “I will not accept a lot if percent defective is greater than
or equal to p2”

p2 = LTPD = Lot Tolerance Percent Defective

 is the probability a bad lot is accepted by the consumer when the lot
really has a fraction defective  p2

• That is,

 Lot accepted given that lot 

  P 
 has unacceptable quality level 
 
  P
 Lot accepted p  LTPD 

 Consumer’s Risk - 
• n89, c=2, p=LTPD=0.05, find consumer risk 

P( accept lot )  P( no. defectives  2 | p  .05, n  89)

89
 89 !  x
  .05 (.95)89  x

x 3  x !(89  x )! 

 0.1721
Designing a Single-Sampling Plan with a Specified OC
Curve

• Use a chart called a Binomial Nomograph to

design plan

• Specify:
• p1 = AQL (Acceptable Quality Level)

• p2 = LTPD (Lot Tolerance Percent Defective)

• 1 –  = P[Lot is accepted | p = AQL]

• β = P[Lot is accepted | p = LTPD]

 Use a Binomial Nomograph to Find Sampling Plan
(Figure 15-9, p. 661)

• Draw two lines on nomograph

– Line 1 connects p1 = AQL to (1- )
– Line 2 connects p2 = LTPD to 
– Pick n and c from intersection of lines

• Example: Suppose
– p1 = 0.01,
– α = 0.05,
– p2 = 0.06,
– β = 0.10.

Find the acceptance sampling plan.

 P1 = AQL = .01 P - Axis

Greek - Axis

n = 140
P2 = LTPD = .05

 = .10

1 –  = 1 – .05 = .95

c=3

Take a sample of size 140.

Accept lot if defectives ≤ 3.
Otherwise, reject entire lot!
 Check – Producer Risk
P( reject lot )  P( no. defectives  3| p  .01, n  140)
140
 140 !  x
   .01 (. 99 )140  x

x4  x !(140  x )! 

3
 140 !  x
1    . 01 (. 99 )140  x

x 0  x !(140  x )! 

 0.0528
 Check – Consumer Risk
P( accept lot )  P( no. defectives  3| p  .05, n  140)

140
 140 !  x
   .05 (.95)140  x

x 3  x !(140  x )! 

 0.0765
Rectifying Inspection Programs

• Acceptance sampling programs usually require

corrective action when lots are rejected, that is,
– Screening rejected lots
• Screening means doing 100% inspection on lot

• In screening, defective items are

– Removed or
– Reworked or
– Returned to vendor or
– Replaced with known good items
Rectifying Inspection Programs

Incoming Lots:
Fraction Defective
p0

Inspection
Activity

Rejected Lots:
Accepted
100%
Lots
Inspected

Fraction Fraction
Defective = 0 Defective
p0

Outgoing Lots:
Fraction Defective
p1  p0
 Where to Use Rectifying
Inspection
• Used when manufacturer wishes to know average level
of quality that is likely to result at given stage of
manufacturing

• Example stages:
– Receiving inspection
– In-process inspection of semi-finished goods
– Final inspection of finished goods

• Objective: give assurance regarding average quality of

material used in next stage of manufacturing operations
Average Outgoing Quality: AOQ
• Quality that results from application of rectifying inspection
– Average value obtained over long sequence of lots from
process with fraction defective p

Pa p  N  n 
AOQ 
N
• N - Lot size, n = # units in sample
• Assumes all known defective units replaced with good
ones, that is,
– If lot rejected, replace all bad units in lot
– If lot accepted, just replace the bad units in sample
 Development of AOQ
• If lot accepted:
Number defective units in lot:
 # units 
 fraction   
 p  N  n     remaining 
 defective 

in lot 

• Expected number of defective units:

 Lot   # defective 
 Pa p  N  n   Prob  accepted   units in lot 
  
• Average fraction defective,
Average Outgoing Quality, AOQ:
Pa p  N  n 
AOQ 
N
 Example for AOQ

• Suppose N = 10,000, n = 89, c = 2, and

incoming lot quality is p = 0.01. Find the
average outgoing lot quality.

Pa p  N  n 
AOQ 
N
.9397(.01)(10, 000  89)

10, 000
 0.0093
 Military Standard 105E
(MIL STD 105E)
(ANSI/ASQC Z1.4, ISO 2859)

• Most widely used acceptance sampling system for

attributes

• MIL STD 105E is Acceptance Sampling System

– collection of sampling schemes

• Can be used with single, double or multiple sampling

plans
– We will consider single sampling plans for this course
 Inspection Types
• Normal Inspection
– Used at start of inspection activity

• Tightened Inspection
– Instituted when vendor’s recent quality history has deteriorated
– Acceptance requirements for lots are more stringent

• Reduced Inspection
– Instituted when vendor’s recent quality history has been
exceptionally good
– Sample size is usually smaller than under normal inspection
Switching Rules

Start
AND conditions
- Production Steady
- 10 consecutive lots accepted 2 out of 5 consecutive lots
- Approved by responsible rejected
authority

Reduced Normal Tightened

OR conditions
- Lot rejected
- Irregular production
- Lot meets neither accept 5 consecutive
nor reject criteria lots accepted
- Other conditions warrant
return to normal inspection

10 consecutive lots remain

on tightened inspection

Discontinue
Inspection
 Procedure for
MIL STD 105E
• STEP 1: Choose AQL
– MIL STD 105E designed around Acceptable Quality
Level, AQL
• Recall that the Acceptable Quality Level, AQL, is
producer's largest acceptable fraction defective in process

– Typical AQL range:

• 0.01%  AQL  10%
• Specified by contract or authority responsible for sampling
 Procedure for
MIL STD 105E
• STEP 2: Choose inspection level
– Level II
• Designated as normal
– Level I
• Requires about one-half the amount of inspection as Level II
• Use when less discrimination needed
– Level III
• Requires about twice as much
• Use when more discrimination needed
– Four special inspection levels used if very small samples
necessary
• S-1, S-2, S-3, S-4
 Procedure for
MIL STD 105E
• STEP 3–Determine lot size, N
– Lot size most likely dictated by vendor

• STEP 4: Find sample size code letter

– From Table 14-4, p 675
– Given lot size, N, and Inspection Level, use table to determine
sample size code letters

• STEP 5: Determine appropriate type sampling plan

– Decide if Single, Double or Multiple sampling plan is to be
used
 Procedure for
MIL STD 105E
• STEP 6: Find Sample Size, n, and Acceptance
Level, c
– Given sample size letter code, use Master Tables:
14-5, 14-6, and 14-7 on pp.676-678

– Find n and c for all three inspection types:

• Normal Inspection
• Tightened Inspection
• Reduced Inspection
 Example

• Suppose product comes from vendor in lots of

size 2000 units. The acceptable quality level is
0.65%. Determine the MIL STD 105E
acceptance-sampling system.
 Normal Insp. Level

Lot Size
= 2000
 AQL

Plan K

Sample 125 units.

Ac = 2, accept if defects ≤ 2.
Re = 3, reject entire lot if defects ≥ 3.
 AQL

Plan K

Sample 125 units

Ac = 1, accept if defects ≤ 1.
Re = 2, reject entire lot if defects ≥ 2.
 AQL

Plan K

Sample 50 units
Ac = 1, accept if defects ≤ 1.
Re = 3, reject entire lot if defects ≥ 3.