Determining the Optimum Process Mean of a One-sided Specification Limit with the Linear Quality Loss Function of Product

Chung-Ho Chen

Journal of Applied Statistics, 2004, vol. 31, issue 6, 693-703

Abstract: Wen & Mergen (1999) proposed a method for setting the optimal process mean when a process was not capable of meeting specifications in the short term. However, they neglected to consider the quality loss for a product within specifications in the model. Chen & Chou (2002) presented a modified Wen & Mergen's (1999) model, including the quadratic quality loss function for a one-sided specification limit. In this paper, we propose the modified Wen & Mergen (1999) cost model including the linear quality loss function of a product for determining the optimal process mean of a one-sided specification limit.

Keywords: Quality Loss Function; Specification Limits; Process Mean; Process Standard Deviation (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1080/1478881042000214677

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