The document discusses statistical quality control procedures used by companies to minimize costs and risks when testing product samples. It provides three examples where companies test samples of light bulbs, cups, and plates to determine whether entire batches should be accepted or rejected based on the sample results. The document notes that sampling involves costs and risks of wrongly accepting or rejecting products. It states that the aim of statistical quality control is to develop procedures that have low costs, low producer risks, and low buyer risks. Finally, it outlines that statistical quality control has two main areas - statistical process control which monitors manufacturing quality, and acceptance sampling which investigates final products to determine batch acceptance.
The document discusses statistical quality control procedures used by companies to minimize costs and risks when testing product samples. It provides three examples where companies test samples of light bulbs, cups, and plates to determine whether entire batches should be accepted or rejected based on the sample results. The document notes that sampling involves costs and risks of wrongly accepting or rejecting products. It states that the aim of statistical quality control is to develop procedures that have low costs, low producer risks, and low buyer risks. Finally, it outlines that statistical quality control has two main areas - statistical process control which monitors manufacturing quality, and acceptance sampling which investigates final products to determine batch acceptance.
The document discusses statistical quality control procedures used by companies to minimize costs and risks when testing product samples. It provides three examples where companies test samples of light bulbs, cups, and plates to determine whether entire batches should be accepted or rejected based on the sample results. The document notes that sampling involves costs and risks of wrongly accepting or rejecting products. It states that the aim of statistical quality control is to develop procedures that have low costs, low producer risks, and low buyer risks. Finally, it outlines that statistical quality control has two main areas - statistical process control which monitors manufacturing quality, and acceptance sampling which investigates final products to determine batch acceptance.
bulbs that are supposed to have an average life time of 1000 hours. A buyer intends to buy a batch of 10,000 bulbs. The buyer first test a sample of 100 light bulbs. If they have a mean life time of 1000 hours he accepts the batch, otherwise the batch is rejected. Example 3. A company makes cups and plates. Some of cups might be chipped or cracked. A sample will be taken to cheek the proportion of cracked cups. If this is above a certain value the process must be adjusted. In all above three examples There is a cost involving in sampling. There is a decision to be made that can result in an error. Wrongly rejects a good product - supplier or producer risk. Wrongly accept a bad product - or risk. The aim is to develop statistical procedures that have Low cost i.e. the ability to minimize cost. Low producer risk. Low buyers risk. Statistical quality control can be divided into two main areas. 1. Statistical process control This involves investigating the procedures used during the manufacturing process. Monitor the quality of manufacturing process. 2. Acceptance sampling
This includes investigating a final product and deciding
whether or not the final product is of acceptable quality. The objective is only to pass a judgment on lots (batch) of products.