COMMERCE 2OC3 Chapter Notes - Chapter 6S: Type I And Type Ii Errors, Statistical Process Control, Central Limit Theorem
27 Feb 2017
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Document Summary
Statistical process control (spc): a process used to monitor standards by taking measurements and corrective action as a product or service is being produced. Process control is used to measure performance of a process. A process is said to be operating in statistical control when the only source of variation is common (natural) causes. Acceptance sampling: used to determine acceptance or rejection of material evaluated by a sample. Control chart: a graphical presentation of process data over time. Natural variation: variability that affects every production process to some degree and is to be expected; also know as common cause. The individual variations when combined form a normal distribution, characterized by the following two parameters: Mean, (the measure of central tendency or average value) Standard deviation, (the measure of dispersion) Assignable variation: variation in a production process that can be traced to specific causes. Natural and assigable variations distinguish two tasks for the oeprations manager.
