Minimizing rework costs in multistage production processes by modifying quality specification limits

Multistage production processes are becoming more important in the industry to ensure levels of flexibility, efficiency and modularity. Thus, the way in which companies define optimal production parameters related to production costs and quality must be adapted to this reality. In this paper we introduce a multi-response optimization (MRO) model for a two stage production process. The model gives first stage quality specification limits which minimize the rework costs caused by the nonconforming parts of the whole process. The proposed model is applied to an example based on a production process of the automotive industry. The benefits of the model are evaluated by comparing the capability and the rework costs of the multistage production process before and after the optimization.