Abstract
Abstract In determining specification limits for items of product to be subjected to 100 per cent inspection both process variation and measurement error must be considered. Often costs associated with misclassification are of importance. These costs depend upon the nature of the misclassification and the amount by which an accepted item is defective or a rejected item is acceptable. The costs, with the process and measurement variations, form the basis for defining the risk to be identified with the inspection scheme. Mathematical formulas are derived and tables given which facilitate the construction of minimum risk specification limits. A variety of assumptions about relations among costs and relations between inherent process variation and measurement error are covered.
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