Consumer's Risk Notes: Definitions & Explanations PDF | Download eBooks

Study Consumer's Risk lecture notes PDF with total quality management definitions and explanation to study What is Consumer Risk?. Study consumer's risk explanation with TQM terms to review total quality management course for online MBA programs.

Consumer's Risk Definitions:

Consumer's risk is associated with receiving a shipment of poor-quality product and believing it has good quality.
Managing Quality: Integrating the Supply Chain by S. Thomas Foster
Consumer?s risk denotes the probability of accepting a lot of poor quality, or allowing a process that is operating in an unsatisfactory manner relative to some quality characteristic to continue in operation.
Introduction to Statistical Quality Control by Douglas C. Montgomery
Consumer?s risk is defined as the conditional probability that a measurement system will pass a part when the part does not conform to the specifications.
Introduction to Statistical Quality Control by Douglas C. Montgomery

Consumer's Risk Notes:

Consumer's risk is also called Type II error. It is a risk related to acceptance sampling. It refers to the fact that a batch of bad products is accepted in the process of acceptance sampling, and is sent to the customer. The customer can be the user of the raw material or the user of the end product. It means that consumer's risk can occur for both raw material and finished goods. The batch of bad products is considered to be of good quality by the customer, and the customer faces consequences while using or consuming it. Consumer's risk is denoted by β.

Consumer's Risk Notes: Definitions & Explanations PDF | Download eBooks

Consumer's Risk Definitions: