Comparing the cost of quality between C = 0 acceptance plans and MIL-STD-105E plans

Mark Gershon and Mark Christobek

International Journal of Productivity and Quality Management, 2006, vol. 1, issue 3, 272-289

Abstract: Practitioners using acceptance sampling are under pressure to use C = 0 plans in place of the traditional MIL-STD-105E sampling plans. This paper investigates the effects of this practice, leading to a cost comparison of the two approaches. Previous research has looked at the effect on producer costs, but this paper identifies the costs to both the producer and the consumer, total costs. Six factors are identified, which affect total costs, and the results of each on total cost are shown. Circumstances when one plan might be better than the other are identified, leading to some prescriptive recommendations concerning when to use each.

Keywords: acceptance sampling plans; C = 0; MIL-STD-105E; quality costs; AQL; type I errors; type II errors; producer risk; consumer risk; OC curve; AOQ curve; ATI; average total inspection; average outgoing quality; producer costs; comsumer costs; total costs; cost of quality; COQ; acceptable quality limit. (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijpqma:v:1:y:2006:i:3:p:272-289

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