Tagaras, George; Lee, Hau L (1987, ASQC) University of Pennsylvania, Philadelphia, PA; Stanford University, Stanford, CA
Product quality has emerged as a major strategic instrument for competition in manufacturing industries such as computers and communication. This paper deals with the design of economically optimal inspection procedures for quality assurance, taking account of the complexiity of the production processes involved in the manufacturing of a product, and the uncertainty and instability of incoming materials and process capabilities. A hierarchial approach that decomposes a large serial system into smaller subsystems is used to obtain near optimal quality inspection procedures. Numerical examples that illustrate the application of the method are presented.