Decisions for the Consumer Price Index Case Example

Source: www.businessnewsdaily.com

Background

- Background of Consumer price index
- Consumer price index (CPI) as the measure of changes I prices paid by consumers.
- The important of CPI is that it should price exactly the same set of goods and services from one month to the next.

Process Background

- CPI is prepared every month from about 100,000 prices that are collected each month by more than 350 fields representatives located throughout the nation. The data are then subjected to extensive computer edits and clerical verification.

The Process

Look at the figure 14-1 in the book as example more understanding about the process.

The process has formula as below:

Pure price change = observed price change – quality change

Project Selection

Base on the CPI, the commodity specialist economists were reviewed and analyzed of monthly data that was a possible for quality management.


Reference:
Juran, J.M. (1992), Juran on Quality By Design: the new steps for planning quality into goods and services. TYC: The Free Press. P. 468-471.

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