Proposes a new formulation for allocating process tolerances. The major contribution of the model is to assign tolerances with maximization of the conformance rate of the entire process. The cumulative standard normal probability is used to estimate the scrap rate of each operation with respect to the machining accuracy of equipment, therefore, the design engineers are able to predict the failure rate before production. Results of comparison with other methods indicate that the proposed model can cost‐effectively assign tolerances.
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