In the context of quality management, what does Type 2 error refer to?

Type 2 error in the context of quality management pertains to failing to adjust when a system is out of control. This situation arises when a control chart indicates that a process is producing results outside the established control limits, but the decision-makers do not take appropriate action based on this signal. Essentially, it involves missing a genuine situation of poor performance or deviation from quality standards, which can lead to ongoing defects or inefficiencies.

This concept is key in quality management because it emphasizes the importance of responsiveness to data signals. When a system is out of control, the risk of continuing with an ineffective process increases, potentially resulting in greater quality issues and customer dissatisfaction. Understanding Type 2 error serves as a reminder for organizations to maintain vigilance and ensure proper systems are in place to respond to indications of problems effectively.