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Definition 1.3

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Consumer risk is the risk of passing a product or service delivery transaction on to a customer under the assumption that the product or service delivery transaction meets customer quality expectations when, in fact, the product or service delivery is defective or unsatisfactory. The probability of making a consumer risk error is quantified in terms of β.

In Figure 1.3, our comparison points change from the shaded region under the distribution tails to the center of the distribution. A practical decision then requires that we consider how far off the intended target the observed process behavior is as compared with the statistical difference identified in Figure 1.3. Note that differentiating between a practical and statistical difference is a business or financial decision. When making a practical versus a statistical decision, we may well be able to detect a statistical difference; however, it may not be cost‐effective or financially worth making the process improvement being considered.

Statistical Quality Control

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