The document discusses acceptance sampling, a method for deciding whether to accept or reject lots based on sample inspection, emphasizing its cost-effectiveness compared to 100% inspection. It outlines the types of acceptance sampling, risks involved, advantages such as reduced production costs and improved efficiency, and limitations like the potential for incorrect decisions. The acceptance sampling procedure is detailed along with key terms associated with it.

1. Seminar on
acceptance sampling
Submitted to: Mrs. Manjit kaur
Submitted by: Taranjit kaur
16416
M.B.A. 2nd
sem

2. Acceptance
Sampling
Acceptance sampling is therefore a
method used to make a decision as
to whether to accept or to reject lots
based on inspection of sample.

3. Need for acceptance sampling
 Any inspection procedure involving 100%
inspection needs huge expenditure of time,
money and Labour .
 Expenditure on inspection is considered as ‘dead
weight cost’.
 Sometimes the nature of items may be such that
these may be completely destroyed during the
process of inspection e.g. life of a candle.
 Handling the products may cause deterioration.
Moreover ,handling the large quantity is not an
easy task.

4. Risk involved in acceptance sampling
 There are two types of
risks involved ,while
take decisions of
acceptance or
rejection.
1.BAD MAY BE
ACCEPTED
2.GOOD MAY BE
REJECTED

5. Types of acceptance sampling
1. Attribute acceptance sampling :
rejection is based on number of defective
found in a sample.
2. Variable acceptance sampling :
rejection is based on average (mean) and
spread of individual measurement
specifying the quality characteristics of a
sample.

6. Advantages of acceptance sampling
1. Production cost is rejected due to reduction due to
reduction of defective items.
2. Economy of time and money in comparison to 100%
inspection.
3. Problem of inspection fatique occurring in 100% inspection
is eliminated.
4. Small inspection staff required.
5. Due to quick inspection, scheduling and delivery times are
improved.
6. Quality of the product is improved.
7. Inspection process is less complicated.

7. Limitations of acceptance
sampling
 Since the conclusion is based on a sample there
is always some likelihood of making wrong
decisions about the quality of the lot. This is
termed as producer’s risk.
 Success of the scheme depends on randomness
of samples ,quality characteristics to be tested ,lot
size , acceptance criteria etc.
 Sample provides less information than 100%
inspection.

8. Procedure of acceptance sampling
 A random sample is taken from a large quantity of
items and tested.
 If the sample passes the test ,the entire lot is
accepted.
 If the sample fails the test either:
a.) the entire quantity is subjected to 100%
inspection and all defective items repaired or
b.) the entire quantity is returned to the supplier.

9. Take sample
Inspect sample
Decision
Accept lot Reject lot Sample again
Decision
Return lot to supplier 100% inspection

10. Terms used in acceptance sampling
1. Acceptance quality level
2. Rejectable quality level
3. Average outgoing quality
4. Average outgoing quality
5. Average sample number
6. Average amount of total inspection
7. Producer’s risk
8. Consumer’s risk

11. Thank you for being here today