This paper revolutionizes the design of process tolerances, and proposes a nonlinear programming model that utilizes the cumu lative standard normal probability function to estimate the scrap rate of the operations and the entire process. The process capability of the equipment is formulated to assure that the tolerances allotted are producible. Therefore, the process tolerances can now be allocated by minimizing the total production loss due to nonconforming parts. Results of comparison with other methods indicate that the process toler ances can be cost effectively designed by the proposed model.
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