MAN3506 Inspection


Operations Management

Midterm Exam Notes

Ch. 10


Is an appraisal activity that compares goods or services to a standard. Purpose is to provide info to the degree to which items conform to a standard.

Less of an issue for lean organizations because; they place extra emphasis on design

Important for service operations where quality is a continuous issue.

Occurs @ 3 points:

Before Production- make sure units are acceptable (Acceptance sampling)

During Production- conversion of inputs to out puts, Process control

After Production- Final verification continuous Improvements, (Acceptance sampling)

Basic Issues:

How much inspection is needed

Little Inspection: required for low-cost high volume items Pencils, paperclips

Intensive Inspection: high-cost low volume. If item has high volume use automated inspections

The amount of insp needed is governed by the cost of inspection and expected cost of passing defective items.

At what points in process inspection should occur

Raw materials- supplier certification programs reduce need

Finished product

Before a costly inspection

Before an irreversible process

Before a converting process. Ex. Paint, planting, assembling

Whether to inspect on site or centralized location

Whether to inspect attributes (count the # of times something occurs) variables (measure the value of characteristics

Statistical Process Control

Quality of conformance: A product or service conforms to specifications. Does the output of a process conform to the intent of the design

Statistical Process Control- when process output has variations in characteristics, SPC is used to evaluate process output to decide if a process is “in control” or if corrective action is needed

Process Variability- are output variations within an acceptable range

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 & Sampling distributions

Sampling distribution- serves as a theoretical basis for distinguishing btwn random and nonrandom values of a sampling statistic

Process distribution & Sampling distribution: both have the same means, the variability of the sampling distribution is less than the variability of the process distribution, the sampling distribution is normal

Central limit theorem- the distribution of sample averages tends to be normal regardless of the shape of the process distribution.

Control Process:






Monitor results

Control Charts: a time ordered plot of sample statistics used to distinguish between random and nonrandom variability.

Control limits- the dividing lines between random and nonrandom deviations from the mean of the distribution

Type 1 error- concluding a process is not in control when it actually is

Type 2 error- concluding a process is in control when it is not.

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

P-chart- control chart for attributes used to monitor the proportion of defective items in a process.

Process Capability

Specifications- a range of acceptable values established by engineering design nor customer requirements

Process variations-natural or inherent variability in a process

Process capability- the inherent variability of process output relative to the variation allowed by the design specification

Process Capability

ØThe inherent variability of the process output relative to the variation allowed by the design specification (p.443) (also see Fig 10.15)

Cp = Capability Index

ØCp = Specification Width / Process Width = Upper Specification – Lower Specification/ 6 Sigma



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