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

Earliest time the recruitment campaign can start, ST is the operations dire...

ST is the operations director of F Bakery. He is in the process of putting together a project plan for the introduction of a latest production plant that will enable the bakery to

Advantages of iso standards, ISO standards give tremendous advantages to ...

ISO standards give tremendous advantages to those holding their certification. Some of these advantages are briefly discussed below for different categories of groups ins

Search and remove modules, Seven process modules are placed on our model, a...

Seven process modules are placed on our model, and they represent the basic functions in the model. These process modules simulate important operations such as specifying wheel cha

System documentation project- automatic purchase requisition, Introduction ...

Introduction Ajax Corporation is a manufacturing firm with a sophisticated purchasing system.  The system is capable of automatically generating purchase requisitions for inven

Continuous improvement - total quality management, Do it Right First Tim...

Do it Right First Time : TQM adopt the policy of zero defect. There is no scope for rework and rejection. The right first time or zero defect is the result of an empha

What is quality system , Quality System  The basis of our Quality System...

Quality System  The basis of our Quality System is the industry standards/ best practices and the guidance of the ISO 9001:2008 requirements. This ensures that both quality and

Project Management, Project Management Answer 1 The project selected for t...

Project Management Answer 1 The project selected for the purpose if analysis and for discussion of project management tools is of a marriage event, which is very much a real life

What planning concerns in project management, Question 1: Harvey Maylor...

Question 1: Harvey Maylor discusses a ‘generic' life cycle to help in project management. Explain what is meant by project life cycle and critically discuss the benefits that

History of iso, ISO 9000 series of standards on quality system was formu...

ISO 9000 series of standards on quality system was formulated by international organization for standards in order to meet the requirements of internationally uniform q

Project management faces a lot of risks, QUESTION a) Major project mana...

QUESTION a) Major project management activities have their operational specificities. List the distinguishing characteristics of a project? b) Project management faces a lot

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