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Lecture 8

# GMS 401 Lecture 8: GMS401- lecture 8

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Department
Global Management Studies
Course Code
GMS 401
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Description
GMS401: Lecture 8 Chapter 10 Statistical Process Control (SPC) Monitor by taking measurements and corrective action as a product or service being produced Variability is inherent in every process - Natural or common causes - Special or assignable causes Provides a statistical signal when assignable causes are present Detect and eliminate assignable causes of variation Natural Variation: - Affect virtually all production processes - Expected amount of variation - Output measures follow a probability distribution - For any distribution there is a measure of central tendency and dispersion - If the distribution of outputs falls within acceptable limits, the process is said to be in control Assignable Variation: - Generally, a change in the process - Can be traced to a specific reason - Objective is to discover when assignable causes are present Eliminate the bad causes Incorporate the good causes Samples To measure the process, we take samples and analyze the sample statistics following these steps: 1. Samples of the product, say 5 boxes of cereal taken off the filling machine line, vary from each other in weight 2. After enough samples are taken from a stable process, they form a pattern AKA distribution 3. Normal (bell shaped), differ in central tendency (mean), standard variation or variance, and shape 4. If only natural causes of variations are present, the output of a process forms a distribution that is stable over time and is predictable 5. If assignable, process is not stable and not predictable Control Charts Constructed from historical data, the purpose is to help distinguish between natural and and assignable variations Process control a) In a statistic
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