Statistical Process Control  Statistical process control is the application of statistical techniques to determine whether a process is delivering what the customer wants.  Acceptance sampling is the application of statistical techniques to determine whether a quantity of material should be accepted or rejected based on the inspection or test of a sample.  Variables: Service or product characteristics that can be measured, such as weight, length, volume, or time.  Attributes: Service or product characteristics that can be quickly counted for acceptable performance. © 2007 Pearson Education
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Interpretation of Material Variances Type of Variance Variance Occurs When Unfavorable material price variance Actual material price per material denomination quantity exceeds the standard material price Favorable material price variance Actual material price per material denomination quantity is less than standard material quantity Unfavorable material quantity variance Actual material quantity used exceeds the allowed/standard material quantity allowed at the activity level achieved Favorable material quantity variance Actual material quantity used is less than allowed/standard material quantity allowed at the activity level achieved
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