COB 300 Operations Exam #2 Study Guide | 2026 Business Operations Prep
quality control - (answer)process that evaluates output relative to a standard and takes corrective action
when output doesn't meet standards
acceptance sampling - (answer)approach to quality assurance where inspection is done before/after
production; least progressive approach
process control - (answer)approach to quality assurance where inspection and corrective action is done
during production
continuous improvement - (answer)approach to quality assurance where quality is built into the
process; most progressive approach
inspection - (answer)appraisal of goods or services; used to provide information on the degree to which
items conform to a standard
low-cost, high-volume items (paper clips, roofing nails, wooden pencils) require: - (answer)little
inspection because the cost associated with passing defective items is quite low and the processes that
produce these items are highly reliable so defects are rare
high-cost, low-volume items require: - (answer)more intensive inspection; automated inspection is an
option that can be used
quality conformance - (answer)product or service conforms to specifications
statistical process control (SPC) - (answer)statistical evaluation of the output of a process; used to decide
if a process is in control or if corrective action is needed
random variation - (answer)natural variation in the output of a process, created by countless minor
factors; common variability (variations are so minor that it is unimportant to attempt to eliminate them)
, COB 300 Operations Exam #2 Study Guide | 2026 Business Operations Prep
assignable variation - (answer)in process output, a variation whose cause can be identified; non-random
variation
sampling distribution - (answer)theoretical distribution of sample statistics; most frequently used is
normal distribution
central limit theorem - (answer)distribution of sample averages tends to be normal regardless of the
shape of the process distribution
How is control achieved? - (answer)by checking a portion of the goods or services, comparing the results
to a predetermined standard, evaluating departures from the standard, taking corrective action when
necessary, and following up to ensure that problems have been corrected
control chart - (answer)time-ordered plot of sample statistics, used to distinguish between random and
nonrandom variability; has upper and lower limits to define range of acceptable variation from the
sample statistic
control limits - (answer)dividing lines between random and nonrandom deviations from the mean of the
distribution
Type I error - (answer)concluding a process is not in control when it actually is; also referred to as alpha
risk
Type II error - (answer)concluding a process is in control when it is not
variables - (answer)generate data that are measured (amount of time needed to complete a task, length
or width of a part)
attributes - (answer)generate data that are counted (ex number of defective parts in a sample, the
number of calls per day)
quality control - (answer)process that evaluates output relative to a standard and takes corrective action
when output doesn't meet standards
acceptance sampling - (answer)approach to quality assurance where inspection is done before/after
production; least progressive approach
process control - (answer)approach to quality assurance where inspection and corrective action is done
during production
continuous improvement - (answer)approach to quality assurance where quality is built into the
process; most progressive approach
inspection - (answer)appraisal of goods or services; used to provide information on the degree to which
items conform to a standard
low-cost, high-volume items (paper clips, roofing nails, wooden pencils) require: - (answer)little
inspection because the cost associated with passing defective items is quite low and the processes that
produce these items are highly reliable so defects are rare
high-cost, low-volume items require: - (answer)more intensive inspection; automated inspection is an
option that can be used
quality conformance - (answer)product or service conforms to specifications
statistical process control (SPC) - (answer)statistical evaluation of the output of a process; used to decide
if a process is in control or if corrective action is needed
random variation - (answer)natural variation in the output of a process, created by countless minor
factors; common variability (variations are so minor that it is unimportant to attempt to eliminate them)
, COB 300 Operations Exam #2 Study Guide | 2026 Business Operations Prep
assignable variation - (answer)in process output, a variation whose cause can be identified; non-random
variation
sampling distribution - (answer)theoretical distribution of sample statistics; most frequently used is
normal distribution
central limit theorem - (answer)distribution of sample averages tends to be normal regardless of the
shape of the process distribution
How is control achieved? - (answer)by checking a portion of the goods or services, comparing the results
to a predetermined standard, evaluating departures from the standard, taking corrective action when
necessary, and following up to ensure that problems have been corrected
control chart - (answer)time-ordered plot of sample statistics, used to distinguish between random and
nonrandom variability; has upper and lower limits to define range of acceptable variation from the
sample statistic
control limits - (answer)dividing lines between random and nonrandom deviations from the mean of the
distribution
Type I error - (answer)concluding a process is not in control when it actually is; also referred to as alpha
risk
Type II error - (answer)concluding a process is in control when it is not
variables - (answer)generate data that are measured (amount of time needed to complete a task, length
or width of a part)
attributes - (answer)generate data that are counted (ex number of defective parts in a sample, the
number of calls per day)
