Types of sampling risks, Project Management

Assignment Help:

Types of Sampling Risks

A guarantee that every defective item in a lot would be found cannot be stated by neither sampling nor 100% inspection, 100% inspection has the risk of monotony and other factors that will result in the inspectors missing some of the defectives. Both the risks can be quantified.

Sampling risks are of two types:

  • Good lots can be rejected (the producer's risk) this risk corresponds to α-risk. The producer here is also known as Supplier alternatively.
  • Bad lots can be accepted (the consumer's risk). This risk corresponds to β- risk.

The supplier's risk is the risk that corresponds to a batch of high quality products and is being rejected due to the risks involved. The consumer risk is the risk that a batch of low quality products would be accepted.

The method of making decisions using experimental data is called as statistical hypothesis test. Hypothesis test often confuses people but is the key factor of most statistical applications. Statistical tests split significant effects form mere luck or random chance. All hypothesis tests have unavoidable, risks of making the incorrect conclusion. They always involve Type I (producer's or α) and Type II (consumer's or β) risk. The Type risk is the chance of confirming that a major effect is present when it isn't. The Type II risk is the chance of not detecting a major effect when one exists. The figure explains the types of risks in detail:

1953_sampling risk.png

Figure : Types of sampling risks

α-risks: in case of statistical testing, the significance level, Type I risk, or also called as α-risk is the "reasonable doubt".  It is the chance of wrongly rejecting the quality when it is appropriate.  In case of acceptance testing, it is the producer's risk or risk of rejecting a lot that meets requirements.

β - risks: In case of statistical testing, the Type II risk, is also called as β-risk. The Type II risk is the chance of accepting the quality when it is inappropriate. The "consumer's risk" is the Type II risk for an acceptance sampling plan. It is the chance of passing a lot that does not meeting the requirements.


Related Discussions:- Types of sampling risks

How much time should planning take, Q. How much time should planning take? ...

Q. How much time should planning take? T imes taken for individual projects differ considerably frequently due to circumstances beyond the project manager's control such as ch

Products liability law, Products liability law controls the private litigat...

Products liability law controls the private litigation of products accidents which provides compensation to the injured party. Products liability law involves the tort law of negli

Develop a new product from the given product ingredient, To develop a new p...

To develop a new product from the given product ingredient. • explore new ideas for product development, • understand the concept of development of a process, • gain kno

Factors affecting process design - nature of product, Factors affecting Pro...

Factors affecting Process Design - Nature of Product The operations management has to design the production systems to produce products/ service of the kind that customers wan

Determining project feasibility and creating schedules, Read the BEC case s...

Read the BEC case study on pages 126–129 of the textbook, and perform the following tasks:   Create a feasibility report for the project in a Word document. Create

Operating characteristic curve, O perating characteristic curve The op...

O perating characteristic curve The operating characteristic curve for a sampling plan quantifies the risks. The OC curve for an attribute plan is a graph of the percentage de

Elaboration iteration, Perform a status assessment of the first Elaboration...

Perform a status assessment of the first Elaboration iteration. DO NOT GENERALISE. Assess each activity separately and assess it against the outcomes specified for the activity. Ge

Components of supply chain management, Components of Supply Chain Managemen...

Components of Supply Chain Management Today, it is the basic requirement amongst customers that businesses produce defect-free products to the customer faster and be more consi

Contract management, Contract Management  There are many things involve...

Contract Management  There are many things involved in a project risk policy. One of them is contract management. Various kinds of contract can have an impact on the success of

Why undertaking competitive analysis is important, S is enrolled on T Compa...

S is enrolled on T Company's management development programme.  Although S has a financial background, the aim of the management development programme is to help him to gain a bett

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd