GMS 401 Chapter Notes - Chapter 10: Statistical Process Control, Type I And Type Ii Errors, Statistic

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The best companies emphasize designing quality into the process, thereby greatly reducing the need for inspection/tests. Statistical quality control: use of statistical techniques and sampling in monitoring and testing of quality of goods and services. Important because it provides an economical way to evaluate the quality of products and meet the expectations of customers. Inspection: appraisal of good or service against a standard. Statistical process control (spc): statistical evaluation of the product in the production process. Random (or chance) variation: natural variation in the output of a process, created by countless minor factors. Assignable variation: non-random variability in process output; a variations whose cause can be identified. Control charts: a time-ordered plot of sample statistics with limits. Used to distinguish between random and assignable variation. Control limits: the dividing lines for the value of sample statistic between concluding no process shift and a process shift, hence random and assignable variations.

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