Producer's Risk Notes: Definitions & Explanations PDF | Download eBooks
Study Producer's Risk lecture notes PDF with total quality management definitions and explanation to study “What is Producer Risk?”. Study producer's risk explanation with TQM terms to review total quality management course for online MBA programs.
Producer's Risk Definitions:
Producer's risk is the risk associated with rejecting a shipment of materials that has good quality.
Managing Quality: Integrating the Supply Chain by S. Thomas Foster
Producer?s risk denotes the probability that a good lot will be rejected, or the probability that a process producing acceptable values of a particular quality characteristic will be rejected as performing unsatisfactorily.
Introduction to Statistical Quality Control by Douglas C. Montgomery
Producer?s risk is defined as the conditional probability that a measurement system will fail a part when the part conforms to the specifications.
Introduction to Statistical Quality Control by Douglas C. Montgomery
Producer's Risk Notes:
Producer's risk is also called Type I error. As the name indicates, it is a risk associated with the rejection of a batch of good quality products during acceptance sampling process. The producer can be a raw material supplier or the producer of an end product. This means that a producer's risk can occur to both, a supplier or a manufacturing firm. A producer can be judged inaccurately in this case. For example, if a supplier sends a batch of raw material to the manufacturing firm and after acceptance sampling, the firm rejects the batch despite the fact that the batch contained good quality products, the supplier will face the loss. Producer's risk is denoted by α.
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