FARE 3310 Study Guide - Binomial Distribution, Normal Distribution, Statistical Process Control

• School: University of Guelph
• Department: Food, Agricultural and Resource Economics
• Course: FARE 3310
• Professor: Getu Hailu

Document Summary

Many production and service processes suffer from quality problems: e. g. airlines lose baggages, computer manufactures ship laptops with defective disk drives, pharmacies distribute wrong medications to patients etc. In addition to these quality problems directly visible to consumer, many quality problems remain invisible. Although hidden to consumer have profound impact on the economics of business processes. Quality: the ability of a good/service to consistently meet/exceed customer expectations. Quality or lack of quality impacts the entire organization. Durability: lifespan of product before it begins to deteriorate. Special features: features that are merely nice to have. Serviceability: support after the initial sell of the product. Reliability: the likelihood of a product working properly. Conformance: the consistency with which the form meets the specifications. Prevention costs: associates with reducing/avoiding the potential for defects. Appraisal costs: associated with evaluating (e. g. assess and inspect) products, parts and services. Internal failure: costs resulting from defects that are discovered during the production of a product/service.