An Information Value Approach to Quality Control

Quality Control sampling plans are normally chosen by usingindustrial and military standards. These standards do notinvolve economic considerations, and usually fail to meet costconsiderations.The Information Economic approach presented in this papersuggests an easy to use methodology which determines the optimalplan for a given situation of a quality control Commonquality control attributes like, AQL, LTPD, OperatingCharacteristics Curves and Quality Control Plans are shown asspecial cases of Information Economic Models. Theorems involvingdominance among various of Quality Control plans are proved. TheBlackwell Theorem on the relationship quot;Generally MoreInformativeAtilde;cent;Acirc;not;Acirc;? is modified to accommodate to the Quality Controlcase.The major results of the paper include new algorithm to optimizethe expected utility of decision makers. The value ofinformation in Quality Control systems is assessed, andcost/effective analysis is carried out