This paper proposes a non-linear programming model to de sign process toler
ances by minimizing the manufacturing loss due to non-conforming production
. The model incorporates with the process capability of equipment to standa
rdize the process tolerances, and utilizes the cumulative standard normal p
robability function to explore the scrap rate of operations with respect to
the tolerances allocated. Therefore, the process tolerances can be economi
cally designed to be producible. Results of comparison with other methods i
ndicate that robust process tolerances can be generated by the proposed mod
el.