Many manufacturers have discovered that optimizing design parameters is a c
ost-effective means of improving product quality and being competitive in t
he world market. In this regard, the issues of robust design (RD) and toler
ance design (TD) are clearly important, but then is significant room for im
provement. The primary objective of this payer is to propose a set of enhan
ced optimization strategies by combining RD and TD. To be more specific, fi
rst, we consider an alternative experimental scheme using response surface
methodology, while avoiding the use of controversial tools for RD such as o
rthogonal arrays and signal-to-noise ratios. Secondly, we discuss an enhanc
ed optimization model by simultaneously considering both the process mean a
nd variance, and then show that this model provides a better (or at least e
qual) solution in terms of the control factor settings. Thirdly, we show ho
w the response functions for the process mean and variance, which are estim
ated by using an RD principle, are transmitted into the TD stage. Fourthly,
we propose an optimization model for TD and present closed-form solutions
for optimum tolerance limits. Finally, we study the possible effects of maj
or cost components, and observe the behaviour of the optimum control parame
ter settings and the tolerance limits by carrying out sensitivity analysis.