Operations Management Chapter 10 Vocab

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Quality Control
A process that evaluates output relative to a standard and takes corrective action when output doesn't meet standards
Inspection
Appraisal of goods or services
Quality of Conformance
A product or service conforms to specifications
Statistical Process Control (SPC)
Statistical evaluation of the output of a process
Random Variation
Natural variation in the output of a process, created by countless minor factors
Assignable Variation
In process output, a variation whose cause can be identified. A non-random variation
Sampling Distribution
A theoretical distribution of sample statistics
Central Limit Theorem
The distribution of sample averages tends to be normal regardless of the shape of the process distribution
Control Chart
A time-ordered plot of sample statistics, used to distinguish between random and nonrandom variability
Control Limits
The dividing lines between random and non-random deviations from the mean of the distribution
Type I Error
Concluding a process is not in control when it actually is
Type II Error
Concluding a process is in control when it actually isn't
Variables
Generate data that are measured
Attributes
Generate data that are counted
Mean Control Chart
Control chart used to monitor the central tendency of a process