Statistical quality control is a set of statistical techniques designed to indicate whether or not the quality of the product is under control and within the acceptable limits.The process involves sampling and construction of statistical control charts against which the sample parameters are measured.Inventories help in the smooth production of the end product.
Second, it may be more accurate than 100 percent inspection it allows less opportunity for “inspection fatigue,” which can be responsible for mistakes.
Third, less product damage occurs since it requires less handling of the product.
A lead time is the time gap between ordering and receiving goods.
If this lead time is long or uncertain, then it is necessary to keep adequate stock of inventory as a buffer against shortages.
For example, we may be interested in the average weight of Pepsi bottles.
Let us assume that the average weight is designed to be 12 ounces in each bottle.As long as the average weights of all the random samples fall within these established limits, the lots from which these samples are taken are accepted and the process is considered to be under control.Inventory refers to the goods or materials available for use by a business.For example, if we want to test the extent of damage a car incurs in a head-on crash at 30 miles per hour, we cannot subject every car to the test.Only a small percentage of the total cars produced can be so tested and the results applied to all cars.It is a stock of materials that are used to facilitate production or to satisfy customer demand.These inventories in the form of raw materials, work- in-process and finished goods must be adequately managed and controlled.A control chart is a graphic record of how closely samples of product or a service conform to established standards over time.The control charts are constructed to set the acceptable upper and lower limit of an aspect that we want to control in an item.Inventory control is concerned with systematic acquisition, storage and recording of materials in such a manner as to furnish the desired degree of service to the operating departments and to the customers at the lowest cost.Inventory control models are designed to achieve a balance between the risk of being out of stock and the cost of carrying excess inventory.