Optimum specification limit setting under the larger-the-better quality characteristics

Abstract

In this paper, the optimal clearance number and sampling frequency of type I continuous sampling plan (CSP-1 plan) and specification limit coefficient of product are determined with the minimum expected total cost per item under the specified average outgoing quality limit (AOQL) protection. The expected total cost per item includes the expected inspection cost, the expected replacement cost, the expected warranty cost, the expected quality loss for conforming product, and the expected quality loss for non-conforming product per item. The quality characteristic of product is considered as the normal distribution with larger-the-better characteristics. The quality loss function of product addresses the quadratic quality loss function. The sensitivity analysis of numerical example will be provided for illustration.