Concept explainers
Interpretation:
Risk which causes greater threat to operation.
Concept Introduction:Control charts are the graphical representation to check or monitor the variations of the process and length of deviations from average.
Explanation of Solution
In the given scenario, sample is
Apart from producer’s risk, there is also a possibility when sample value is lying under the control limits but it is a cause of interference in production process. The causes of interference may be assigned. It can be shown below:
Despite assignable causes, which would make the products coming out of the production process non-confirming to desired specifications, the sample mean is falling within the control limits. This type of error is called a Type 2 error. This is a consumer’s risk, as the defective products in that batch would reach the consumer, undetected by the producer.
A producers’ risk is a minor problem of loss of production, whereas consumers’ risk is a greater threat as the consumer may ask for warranty replacement, may take the company to court, there could be claims, loss of company’s image and so on.
Therefore, consumer’s risk is the greatest threat to the success of an operation.
Want to see more full solutions like this?
Chapter 13 Solutions
Practical Operations Management
- i) The concept of quality is considered to have evolved through stages. However, quality is used to describe a prestigious product. It is one that fits the intended customer’s requirements. Impliedly, the product should possess attributes that enables it meet the customer’s requirement or specification. Now, in identifiably distinctive manner, differentiate quality control from the others or quality assurance. ii) Briefly define hazard, when uncertainty is defined as being a situation in which the determination of risk factors is not possible. It is difficult therefore to calculate the effect of uncertainty upon the tender, and a discussion of uncertainty is out of place here. A builder will see risks in two distinct categories: (a). those that can be insured against and,( b). those that cannot be insured against.arrow_forwardIf a credit manager reviewing a potential customer’s request for a $20,000 line of credit, what would he/she analyze? Generally, how would the 5Cs of Credit guide his/ her analysis and help lead to a prudent decision to accept or reject the request?arrow_forwardAurora Electronics has received a large number of customer complaints and returns for a DVD player that it manufactures. When a DVD is inserted into the loading mechanism, it can become stuck and difficult to remove. Consumers will attempt to pull out the DVD drawer with their fingers or pry it open with an object such as a knife, pencil, or screwdriver, frequently damaging the DVD or injuring themselves. What are the various costs of poor quality and quality assurance that may be associated with this quality issue?arrow_forward
- A quality engineer has a manufacturing specification (in cm) of 0.25 plus or minus 0.05 Historical data indicates that if the quality characteristic takes on values larger than 0.3 cm or smaller than 0.2 cm, the product fails and a cost of $90 is incurred. Determine the Taguchi Loss Function and estimate the loss for a dimension of 0.15 cm.arrow_forwardDescribe the following considerations required when measuring the performance or the effectiveness of risk control programmes: - Fatality or accident or loss frequency. - Degree of compliance with standards.arrow_forwardThe owner of "King Burger" contacts you and asks your assistance with the development of control measures pertaining to customer service in his fast food restaurant. He sends you a video of the effect of no control measures, and would like you to develop the control measures to ensure that a situation portrayed in the video never happens again.arrow_forward
- A toy manufacturer wants to apply Six Sigma to its manufacturing process. The product will be examined by the inspection team using a predetermined standard. A product is considered defective if it doesn't satisfy a requirement. Each item may have as few as no flaws or as many as six. One product was discovered to be faulty after the inspection crew examined roughly 1000 goods. Determine the DPMO for the process and provide feedback on its suitability for six sigma.arrow_forwardWhat is the necessity for quality assurance?arrow_forwardFor which of the following hazards, the eye protection is required? This is a multiple answer question. Flying particles UV radiation Liquid chemicals, acids or caustic liquids Molten metalarrow_forward
- a bread manufacturer relies on maintenance employees to keep its rather quite old production equipment for their operation. Whenever the equipment breaks down, the maintenance team is able to repair the equipment quickly. However, they are less effective at avoiding these breakdowns and cannot predict when the equipment will break down. The maintenance group has modified the equipment over the years and, in any event, the manufacturer of the equipment is no longer in business. The maintenance employees teach each other how to repair the equipment, but have refused to document any of this information (saying that it is too difficult to document these details). The company owner has thought about firing the maintenance staff unless they document the maintenance procedures, but realizes that there is no one else who can repair the equipment. Discuss or explain the sources or types of power and contingencies (moderator) of power among the maintenance employees in this situation.arrow_forwardRisks are prioritized based on the application of assessment criteria , and consideration of the organization's risk appetite . Select one: True Falsearrow_forwardThe risks that the consequences of them are acceptable and no extra costs should be incurred to reduce hazard probability are categorized as: Select one: a. Intolerable b. Intolerable, Acceptable, and As low as reasonably practical (ALARP) c. As low as reasonably practical(ALARP) d. Acceptablearrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.