The World without Bankruptcy Laws
Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks. When companies take risks, some of them succeed, whereas others fail. Hence failure is a natural part of the business. However, many critics of bankruptcy laws believe that there isn’t a need for an elaborate […]
The Wirecard and Infosys Scandals are a Lesson on How NOT to Treat Whistleblowers
What is the Wirecard Scandal all about and Why it is a Wakeup Call for Whistleblowers Anyone who has been following financial and business news over the last couple of years would have heard about Wirecard, the embattled German payments firm that had to file for bankruptcy after serious and humungous frauds were uncovered leading […]
Why the Digital Age Demands Decision Makers to be Like Elite Marines and Zen Monks
How Modern Decision Makers Have to Confront Present Shock and Information Overload We live in times when Information Overload is getting the better of cognitive abilities to absorb and process the needed data and information to make informed decisions. In addition, the Digital Age has also engendered the Present Shock of Virality and Instant Gratification […]
Why Indian Firms Must Strive for Strategic Autonomy in Their Geoeconomic Strategies
Geopolitics, Economics, and Geoeconomics In the evolving global trading and economic system, firms and corporates are impacted as much by the economic policies of nations as they are by the geopolitical and foreign policies. In other words, any global firm wishing to do business in the international sphere has to be cognizant of both the […]
Why Government Should Not Invest Public Money in Sports Stadiums Used by Professional Franchises
In the previous article, we have already come across some of the reasons why the government should not encourage funding of stadiums that are to be used by private franchises. We have already seen that the entire mechanism of government funding ends up being a regressive tax on the citizens of a particular city who […]
If the data type that needs to be charted is discrete, then it must fall between one of binary or count types. As the name suggests in case of binary distribution, there are only two possibilities, success and failure, defective and not defective, whereas in the case of count type distribution there may be more than two possibilities of the process, the number of defects still need to be counted. The difference between the two is subtle. However, given the fact that there are fixed rules governing when which chart needs to be used, the confusion is reduced.
Equal Subgroup Size: In this case, the Six Sigma process methodology suggests using the C Chart. The C Chart counts the number of defects that are happening per unit of unit. This could be per minute, per hour, per day or per week and so on. The important part here is that since the time period is fixed, so is the sample size. The C Chart will tell you how many observations from a given sample failed to meet the criteria specified by the control limits.
Unequal Subgroup Size: In this case, the Six Sigma process methodology recommends using the “U” chart. The U chart counts the rate of defects. This means that it keeps a track of the number of units that it has monitored and how many have failed the given criteria specified by the control limits. The U Chart will tell you, for example that 5/1253 units have failed to comply. Hence it does not require a fixed time period or a fixed sample size and may be more convenient to use.
Equal Subgroup Size: In this case, the Six Sigma process methodology recommends using the NP Chart. The NP chart also counts the number of defects per period of time just like the C Chart. There is however a subtle difference between the two. C Chart is used when the occurrence of defects is rare. However, NP chart uses the binomial distribution. Therefore, the occurrences do not have to be rare. As a thumb rule, if there is a chance more than 5% defects in a process, then the NP chart must be used.
Unequal Subgroup Size: In this case, the P chart is recommended. Once again, it is quite similar to the U chart. This chart calculates the defects as a percentage figure meaning that it takes into account the units that have gone through the process just like the U Chart. The U chart also uses the Binomial distribution and is used when the occurrences of defects is not rare.
Your email address will not be published. Required fields are marked *
Why are Companies Constantly Upgrading their ERP Systems?
February 7, 2025
It’s Now or Never: Why Business Must Embrace Sustainability before it is Too Late
February 7, 2025
The Pharma Sector and Intellectual Property Rights: Pros and Cons
February 7, 2025
