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August 31, 2006
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                Illustration of the Two Methodologies Using a Case Study Data set  133
             10 620                                                    USL
             10 865    Process Data
             11 360  LSL
             11 380  Target
             11 445  USL      91.00000
             11 540  Sample Mean  12.61467
             11 560  Sample N    30
             11 610  StDev (Within)  1.38157
                   StDev (Overall)  1.38157





             13.980
             14.380
             14.410
             15.225
             15.335
             16.300                  11   22  33   44   55   66   77  88

                          Figure 10.1 Histogram of case study data.


      specification limit is so far away from the mean and we do not expect USL to be
      exceeded.
        As the distribution is highly skewed, a normal approximation will not yield a good
      estimate. Two methods were used to estimate the capability of this process; these are
      considered in turn in Sections 10.2.1 and 10.2.2 and compared in Section 10.2.3.


      10.2.1 Estimation of process capability using Box--Cox transformation
      Traditionally, when the distribution of the data is not normal, the advice is to first
      transform the data using the Box--Cox transformation. If the transformation is suc-
      cessful, and the transformed data follows the normal distribution as proven by the
      normality test, then we can proceed to do a PCA using the transformed data and the
      transformed specification using formula (10.1).



      10.2.1.1 Box--Cox transformation
      The Box--Cox transformation is also known as the power transformation. It is done
      by searching for a power value, λ, which minimizes the standard deviation of a stan-
                                                                    λ

      dardized transformed variable. The resulting transformation is Y = Y for λ  = 0 and
      Y = ln Y when λ = 0. Normally, after the optimum λ has been determined, it is then

      rounded either up or down to a number that make some sense; common values are
                1
           1
      −1, − / 2 ,0, / 2 , 2, and 3.
        The transformation can be done by most statistical software. Figure 10.2 was ob-
      tained from MINITAB 14. It shows a graph of the standard deviation over the different
      values of λ from −5 to 5. The optimum λ (corresponding to lowest standard devia-
      tion) suggested was −3.537 25. It is recommended to choose λ =−3; it is evident from
      Figure 10.2 that this gives a standard deviation close to the minimum.
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