Abstract
An economic design of specification limits for production process of ham is considered for a given process mean in a complete inspection plan. Each ham is inspected, and if it meets the specification, it is accepted. The ham less than the lower specification limit are changed another products or at a discounted price, and those greater than the upper specification limit are reworked. A profit model is developed which involves selling price, production cost, rework cost and the cost which is incurred by imperfect quality. Methods for finding the optimal specification limits are derived for the case of piecewise linear loss function with an industrial case study.
