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Management · Q39

Management Accounting

Graduate and Post Graduate · Management · question 39

Q39

Formal way of differentiating, between non-random and random variations, in manufacturing process is classified as

A.
statistical process control
Answer
B.
statistical failure control
C.
statistical control of prevention cost
D.
statistical control of sunk cost

Answer: Option A

Solution

Answer: Option A
Solution:
Formal way of differentiating, between non-random and random variations, in manufacturing process is classified as statistical process control. Statistical process control (SPC) is a method of quality control which employs statistical methods to monitor and control a process.