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The Impact of Inspector Fallibility on the Inspection Policy in Serial Production Systems

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  • Donald P. Ballou

    (State University of New York at Albany)

  • Harold L. Pazer

    (State University of New York at Albany)

Abstract

Appropriate inspection is a significant component of production systems. In this paper a model is developed to determine the optimal placement of inspection stations within n-stage linear production systems. This model accommodates two types of inspector fallibility: "predictable," which implies that the error rates are known and constant, and "erratic," which requires a random variable to describe inspector performance. Cost per good unit accepted by the customer is used as the optimizing criterion. The cost-quality response surface is explored through a sequential sensitivity analysis. Our results indicate that under certain conditions the level of predictable inspector fallibility significantly impacts the number and placement of inspection stations as well as cost per good unit produced. The modeled systems, however, were quite insensitive to the variability of inspector performance. This production-inspection model provides management with information on the optimal number and placement of inspection stations for specific planned or existing serial production systems. It can also be used by management to explore various policy options, such as the cost implications of increasing the quality vs. the quantity of inspection stations. The data required by the model can be obtained at reasonable cost provided management is willing to estimate or determine judgementally certain of the variables.

Suggested Citation

  • Donald P. Ballou & Harold L. Pazer, 1982. "The Impact of Inspector Fallibility on the Inspection Policy in Serial Production Systems," Management Science, INFORMS, vol. 28(4), pages 387-399, April.
    • Handle: RePEc:inm:ormnsc:v:28:y:1982:i:4:p:387-399
    DOI: 10.1287/mnsc.28.4.387
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    Cited by:

    1. Douglas G. Bonett & Ronald C. Clute, 1990. "Audit sampling with nonsampling errors of the first type," Contemporary Accounting Research, John Wiley & Sons, vol. 6(2), pages 432-445, March.
    2. Van Volsem, Sofie & Dullaert, Wout & Van Landeghem, Hendrik, 2007. "An Evolutionary Algorithm and discrete event simulation for optimizing inspection strategies for multi-stage processes," European Journal of Operational Research, Elsevier, vol. 179(3), pages 621-633, June.
    3. Barad, M. & Bennett, G., 1996. "Optimal yield improvement in multi-stage manufacturing systems," European Journal of Operational Research, Elsevier, vol. 95(3), pages 549-565, December.
    4. Rebello, Ranjit & Agnetis, Alessandro & Mirchandani, Pitu B., 1995. "Specialized inspection problems in serial production systems," European Journal of Operational Research, Elsevier, vol. 80(2), pages 277-296, January.
    5. Kim, Hyejeong & Niehm, Linda S., 2009. "The Impact of Website Quality on Information Quality, Value, and Loyalty Intentions in Apparel Retailing," Journal of Interactive Marketing, Elsevier, vol. 23(3), pages 221-233.
    6. Paul F. Zantek & Gordon P. Wright & Robert D. Plante, 2002. "Process and Product Improvement in Manufacturing Systems with Correlated Stages," Management Science, INFORMS, vol. 48(5), pages 591-606, May.
    7. Klein, Barbara D., 2001. "Detecting errors in data: clarification of the impact of base rate expectations and incentives," Omega, Elsevier, vol. 29(5), pages 391-404, October.
    8. Maria R. Ibanez & Michael W. Toffel, 2020. "How Scheduling Can Bias Quality Assessment: Evidence from Food-Safety Inspections," Management Science, INFORMS, vol. 66(6), pages 2396-2416, June.
    9. Gurnani, Haresh & Drezner, Zvi & Akella, Ram, 1996. "Capacity planning under different inspection strategies," European Journal of Operational Research, Elsevier, vol. 89(2), pages 302-312, March.
    10. Hadjinicola, George C. & Soteriou, Andreas C., 2003. "Reducing the cost of defects in multistage production systems: A budget allocation perspective," European Journal of Operational Research, Elsevier, vol. 145(3), pages 621-634, March.
    11. Donald Ballou & Richard Wang & Harold Pazer & Giri Kumar Tayi, 1998. "Modeling Information Manufacturing Systems to Determine Information Product Quality," Management Science, INFORMS, vol. 44(4), pages 462-484, April.
    12. Lee, Jim & Frank Chen, F., 1996. "Inspection sequencing and part scheduling for flexible manufacturing systems," European Journal of Operational Research, Elsevier, vol. 95(2), pages 344-355, December.

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