An Economic Evaluation of Improvements in Process Capability for a Single-Level Canning Problem

Abstract

Recent developments in quality improvement have emphasized variance reduction and created a need for methods to analyze the cost benefits that result from investments in increased conformance. In this paper we analyze the cost savings that result from a reduction in the process variance in a single-level canning problem. We present an approximation equation that provides a simple linear relationship between the percentage cost reduction and the percentage reduction in standard deviation.

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