Economic design of inspection procedures using guard band when measurement errors are present

One of the most important aspects in designing production systems is implementing an adequate inspection procedure to ensure the product quality. Our literature study indicates that two important questions still remain unanswered. First, most of the previous studies on inspection procedures are mainly concerned with how to evaluate and analyze the adequacy of inspection procedures during a production stage. Although the issue of the adequacy of inspection procedures at this point is clearly important, many production processes may better benefit from designing enhanced inspection procedures during an early design stage. Second, the majority of previous studies do not incorporate possible economic impacts of measurement errors when inspection procedures need to be designed. More extensive efforts in designing inspection procedures need to be investigated based on economic considerations. Two approaches, the use of guard band and the selection of inspection precision level, are simultaneously examined for designing economic inspection procedures. By incorporating these two approaches, this paper proposes an optimization scheme for economic design of inspection procedures. A numerical example along with sensitivity analysis demonstrates the applicability of the proposed model.