703. Justification of Measurement System Cost


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J O House: 703. Justification of Measurement System Cost. 1968.



This paper uses a probability based method to relate the accuracy of the weighing equipment and weight process costs to the loss of perforamnce incentive in a contract. It is advantageous for a company to conduct a careful analysis that involves a tradeoff between minimizing the profit loss entailed in measurement inaccuracy and that entailed in eliminating the inaccuracy. For the probability that a component will be overweight because a measurement inaccuracy, the cost is a calculable value which will further reduce this probability to some acceptable level. The cost of reducing the probability of error per pound varies. This cost is shown to increase with increasing probability of little or no error, and the cost of obtaining a fixed probability of some error will be shown to increase as the error is decreased.


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