Recently many researchers contributed to the understanding of Quality Control System, but the use of economics in the design of quality assurance system is limited in treatment of the relationship between the average incoming quality level (or average process quality level) of the incoming lot and the average outgoing quality level of this lot. In this study, a traditional concept of sampling inspection plan for the quality assurance system is extended to a consideration of economic aspects in total production system by representing and analyzing the effects between proceeding and succeeding production process including inspection process. This approach recognizes that the decision at each manufacturing process (or assembly process), is to be determined not only by the cost and the average outgoing quality level of that process, but also by the input parameters of the cost and the incoming quality to the succeeding process. By analyzing the effects of the average incoming and outgoing quality, manufacturing or assembly process quality level and sampling inspection plan on the production system, mathematical models and solution technique to minimize the total production cost for a general product manufacturing system with specified average outgoing quality limit are suggested.

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