Producer and Consumer Risk
Risks in Acceptance sampling or Product Control
- Producer’s Risk
- Consumer’s Risk
1. Producer’s Risk
Sometimes it happen that inspite of good quality,the sample taken may show defective units as such the lot will be rejected. Inspite of good quality the lot is rejected,such a type of risk of rejection is known as producer’s risk.In other words,the probability of rejecting a lot which has actually been satisfactory by the producer according to acceptable quality level is known as producer’s risk. Thus, the risk of rejecting a lot of good items is known as producer’s risk.
2. Consumer’s Risk
Sometimes it may happen that the quality of the lot is not good but the sample results show good quality units as such the consumer has to accept a defective lot.Such a risk is known as consumer’s risk.In other words,the probability of accepting a lot which has actually been satisfactory by the consumer according to a predetermined standard is known as consumer’s risk.
The consumer and producer both decide the acceptance standard of the lot.This is known as Acceptance Quality Level (AQL) or Lot Tolerance Percentage Defective(LTPD).