In this paper we develop a strategy for setting process limits on operations within a system to guarantee that the final product meets target specifications. We first present methods for analyzing variation propagation in systems to predict end-of-line variation. Variation for the end-of-line quality characteristics is determined by a sequence of mappings representing how variations into each operation result in variations on the work in progress. The largest input tolerances that still meet the required output tolerances are calculated for each operation.
