Optimum specification limit coefficient setting based on the smaller-the-better quality characteristics

Abstract In this work, the authors propose the application of type I continuous sampling plan (CSP-1 plan) with expected inspection cost, expected replacement cost, expected warranty cost, expected quality loss for conforming product, and expected quality loss for nonconforming product per item. The quality characteristics of product is considered as the normal distribution with smaller-the-better characteristics. The quality loss function of product addresses the quadratic quality loss function. The CSP-1 plan is applied in the process control. The optimal combination of parameters is obtained from the minimum expected total cost per item produced under the specified average outgoing quality limit (AOQL) protection. One needs to have the optimal clearance number, sampling frequency, and specification limit coefficient.