ACCEPTANCE SAMPLING

LEARNING TARGET

 Explain acceptance sampling and explore the

different types of sampling plans.

 Develop and use operating characteristic curve for

a single-sampling plan and estimate the probability
of accepting a lot with a given proportion defective.
 LEARNING TARGET – cont.

 Construct a single-sampling plan.

 Compute the average outgoing quality for a single-

sampling plan.

 Do learning exercise.
 ACCEPTANCE SAMPLING

A • A form of inspection applied to lots

of items either before or after a
process
Acceptance sampling is a form of inspection that is
applied to lots or batches of items either before or
after a process. In the majority of cases, the
• Lots represent
lots represent incoming
incoming purchasedpurchased
items or final
items
productsorawaiting
final products
shipment to warehouses or
customers. The purpose of acceptance sampling is
to decide whether a lot satisfies predetermined
• Aims to decide
standards whether
(specifications) a lot
for important
satisfies standards
characteristics of the item.for
Lotsimportant
that satisfy these
standards are passedoforthe
characteristics accepted;
itemthose that do not
are
 A typical
Acceptance Sa application
mpli...ng

... A few approaches

 ... a few approaches

Х Look at all 5,0000 widgets.

Х Don’t look at any.
Х Look at some of them.
... Other examples

A light bulb manufacturer will want to know if

the bulbs meets specifications or if a large
percentage are defective.
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When is acceptance sampling useful?

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It is useful when ...

Cost
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Acceptance Sampling vs SPC

SPC AS

real-time monitoring focuses exclusively

of the process on output
Alternatives to Acceptance Sampling

Inspection, or
 Breakeven Point (BEP)

Decision points:
Example

A car assembly plant receives headlight assemblies from

a new supplier in lots of 1,000 units. The cost of testing a
headlight assembly at receiving is P4.50. If a defective
headlight is assembled on a car, the cost of disruption to
the assembly line to replace the headlight is P100. It is
expected that only .05% to 1% of the headlight
assemblies will be defective. Determine the extent of
inspection for the headlight assemblies.

Solution:
BEP = P4.5/100 = .045
Because .045 ≈ .05 to 1% perform acceptance sampling
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Sampling Plan

- Large numbers of items must be processed in a short

amount of time
- Cost of “passing defectives” is low
- Fatigue is caused by inspecting large numbers of
items
- Destructive desting is required

Parameters – lot size, N, sample size, n and

accept or reject criteria, c
 We need to know...
- Look at all 5,000nnnnnnnnnnnnnnnnn
How many to
jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjppp
inspect?

How to distinguish
“good” from “bad?”

How many good

ones are enough?
nnnn0 widgets
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Types of Sampling Plan

- Large numbers of items must be processed in a

short
Single Sampling Plan
amount ofDouble
time Sampling Plan
- Cost of “passing defectives” is low
- FatigueMultiple Sampling
is caused by inspecting largePlan
numbers of
items
- Destructive desting is required
 Single
INTROmmmmmm Sampling Plan
-mmmmDUCTION

- A representative sample of items, n, is drawn

- from a lot
Large size ofofN,
numbers items
items with
must bespecified
processedno.
in of
a short
c
amount of time
defectives,
- Cost of “passing defectives” is low
- Each item in the sample is examined and
- Fatigue is caused by inspecting large numbers of
classified
items as good or defective
- Destructive desting is required
 Double
INTROmmmmmm Sampling Plan
-mmmmDUCTION

- Allows the opportunity of taking a second sample

- if the results
Large of the
numbers of initial sample
items must is inconclusive
be processed in a short
amount of time
- Cost of “passing defectives” is low
- Fatigue is caused by inspecting large numbers of
items
- Destructive desting is required
 INTROmmmmmm -mmmmDUCTION
Multiple Sampling Plans

Multiple SampleofPlans
- Large numbers – Similar
items must to double in a short
be processed
amountbut
sampling, of more
time than two samples are involved.
- Cost of “passing defectives” is low
- Fatigue is caused by inspecting large numbers of
items
- Destructive desting is required
 INTROmmmmmm -mmmmDUCTION

Operating Characteristics Curve

• how it discriminates between lots of high

and low quality

• a probability curve for a sampling plan that

shows the probabilities of accepting lots
with various lot quality levels (% defectives)
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OCC for Single Sampling Plan
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OCC Example
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OCC Example
 INTROmmmmmm -mmmmDUCTION
Operating Characteristics Curve

... what is the probabiliy of accepting a lot that has

5% defectives
• Sampling plan can not provide perfect discrimination
• The steeper the curve, the more discriminating the
sampling plan
The steeper the curve, the more
discriminating the sampling plan
 Acceptance Level

Acceptable Quality
Level (AQL)

Low Tolerance
Percentage
Defective (LTPD)
 Acceptable Quality Level (AQL)

• The percentage level of defects at which a

customer is willing to accept as lot as “good.”
• Percentage range is .01 to 2 percent
• Based on the criticality of the characteristic being
inspected (e.g. crack vs. scratch)
 Lot Tolerance Percent Defective (LTPD)
• The upper limit on the percentage of
• defective a customer is willing to tolerate
in accepted lots.
• Quality level of a lot that is
considered bad
• 70 defects, c, in a lot of 1000, N
Producer’s and Consumer’s Risk

GOOD Reject

BAD Accept
 Producer’s Risk

 Producer's risk ()

 Probability of rejecting a good lot
 Probability of rejecting a lot when the fraction
defective is at or above the AQL
 Common value at 5 percent

GOOD Reject
 Consumer’s Risk

 Consumer's risk (b)

 Probability of accepting a bad lot
 Probability of accepting a lot containing fraction
defective exceeding LTPD
 Typical value at 10 percent

BAD Accept
 OCC with AQL, LTPD, Producer’s &
Consumer’s Risks

100 –
95 –
 = 0.05 producer’s risk for AQL

75 –

Probability of
Acceptance 50 –

25 –

10 –
b = 0.10 Percent
0 |– | | | | | | | |
0 1 2 3 4 5 6 7 8 defective
AQL LTPD
Consumer’s
risk for LTPD Good Indifference
Bad lots
lots zone
Example 1
Suppose you want the curve for a situation in which
a sample of n = 10 items is drawn from a lot
containing N = 2,000 items, and a lot is accepted if
no more than c = 1 defect is found and rejected if 2
or more defects are found in the sample. Draw the
OC curve.

Rule of Thumb: n /N < 5 percent use binomial distribution to

obtain probabilities for various lot percentage defectives, 10/2000
 Example 1 Solution
n = 10
N = 2,000
c = 1 defect accepted; 2 or more defects rejected
 Drawing the OC Curve using
Binomial Distribution

• Select various lot qualities (p values)

• Find the probability that a lot with percentage of defects

would be accepted

For p = .05 defective, the Pa one defect is .9139

p = .10, Pa = .7361 and so on

• Record and plot the points on a graph and connect them

Cumulative Binomial Table of
Probabilities

For p = .05 defective, the Pa one defect is .9139

p = .10, Pa = .7361 and so on
 Drawing the OC Curve

• If n > 20 and p < .05, we can approximate

binomial probabilities by Poisson
probabilities
 Drawing the OC Curve
using Poisson Table

1. Multiply p by the sample size, n

2. Find the value of np in the app. table
3. Move to the right until you find the
column for c
4. Record the value for the probability
of acceptance (Pa)

When p = AQL, the producer’s risk is 1 – Pa.

When p = LTPD, the consumer’s risk = Pa.
Example 1

Construct an OC curve for this sampling

plan:

N = 5,000, n = 80 c = 2

N. B. n > 20 and p < .05, therefore we use Poisson

Distribution
Example 2

The Prince Hallet’s Muffler Shop, a high-volume installer of

replacement exhaust muffler systems, just received a
shipment of 1,000 mufflers. The sampling plan for
inspecting these mufflers calls for a sample size n = 60 and
an acceptance number c = 1 . The contract with the muffler
manufacturer calls for an AQL of 1 defective muffler per
100 and an LTPD of 6 defective mufflers per 100. Calculate
the OC curve for this plan, and determine the
producer’s risk and the consumer’s risk for the plan.
Example 2 Solution
Sampling Plan:
N = 1,000, n = 60, c = 6, AQL = .01, LTPD = .06

• Values of P in increments of .01 are often used.

• Then multiply n by p 0.60 = 60 (.01)
• Locate 0.60 in the appropriate Table (Poisson table)
• Move to the right until you reach the column for c = 1.
• Read the probability of acceptance: 0.878.
• Repeat this process for a range of p values.
Example 2 Solution – cont.
Example 1 Solution – cont.
Example 1 Solution – cont.
Discussion Question:

How can management change the

sampling plan to reduce the
probability of rejecting good lots and
accepting bad lots?
 Sample Size (n) Effect

What would happen if we increased n to 80 and left

the acceptance level, c, unchanged at 1?

 If p = AQL = 0.01; Pa = 0.809 ( = 0.191)

 If p = LTPD = 0.06; Pa = 0.048
(1-.878)
(1-.809)

(1-.736)

(1-.668)
Principle: Increasing n while holding c constant increases
the producer’s risk and reduces the consumer’s risk.
 Acceptance Level Effect
Suppose that we keep n constant at 60 but change
the acceptance number.
 Acceptance Level Effect – cont.

Principle: Increasing c while holding n constant decreases

the producer’s risk and increases the consumer’s risk.
 Average Quality of Inspected Lot

Average Outgoing Quality – the average percentage

defective of accepted lots assuming that rejected
lots are 100 percentage inspected and defective in
those lots are replaced with good items.

AOQL (maximum outgoing quality)

Example
 Solution
Step 1: Determine the probabilities of acceptance for the
desired values of p (shown in the table).

Step 1: Determine the probabilities of

acceptance for the

desired values of p (shown in the table).

 Solution
Step 2: Calculate the AOQ for each value of p.

Step 1: Determine the probabilities of

acceptance for the

desired values of p (shown in the table).

 Solution
Step 3: Identify the largest AOQ value, which is the estimate
of the AOQL. AOQL = 0.0155 at p = 0.03