GMS 401 Lecture Notes - Lecture 8: Marginal Cost, Statistical Process Control, Control Chart
22 Apr 2017
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Fall above upper limit of control: put not enough into something. Source out that spot in the production system and fix the problem: how is quality control accomplished, by monitoring and inspecting the product during process. If sample falls outside standard of quality, reject that sample: look at components before we assemble them, various options when it comes to inspection. Inspection is costly though: time, effort, money, etc. Idea of inspection as a teeter-totter: how often should we inspect. Inspection costs: reflective of the financial teeter-totter, look at total cost of inspection, goes down over period of time and then increase, to inspect one unit has a lot of overhead to it. Statistical process control: statistical evaluation of an output of a process during production. Winter 2017: example: purchased a house, has real wood doors (mahogany doors, that wood typically has different variations from one another, different colour, etc.
