Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
bartleby

Concept explainers

Question
Book Icon
Chapter 13, Problem 1DQ
Summary Introduction

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.

Expert Solution & Answer
Check Mark

Explanation of Solution

In the given scenario, sample is normal distributed as mean, median and mode is same. So, there are less chances that any sample value would be out of the control limits. Any variation of sample value out of the control limits is called Type 1 error. There is no fixed cause for such an error. It could be due to producer’s interference of stopping production process, when any unseen natural variation occurs. This is called producer’s risk.

Practical Operations Management, Chapter 13, Problem 1DQ , additional homework tip  1

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:

Practical Operations Management, Chapter 13, Problem 1DQ , additional homework tip  2

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?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
What type of risk does sensitivity analysis address?
Differentiate between a hazard, a risk, an accident and a near miss.Name at least five hazards that you can identify in the Mechanical Workshop of the Mechanical Engineering Department, Faculty of Engineering, SUIT.What sort of safety training, first-aid requirement, and emergency procedures would you recommend in order to ensure the safety of students, faculty, staff and university assets?
Classify the following risks into variation, foreseen uncertainty, unforeseen uncertainty, and chaos:a. A hurricane on the U.S. East Coast floods a regional warehouse destroying alarge amount of stock
Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.