ABSTRACT
This chapter reviews the application of the lognormal distribution as a model in some industrial problems. It discusses the problem of estimating the reliability function when the underlying distribution is lognormal. The chapter presents the application of the lognormal distribution in certain industrial areas, such as quality control charts, optimal replacement of devices and labor turnover. In standard industrial quality control charts, the normality of the industrial process is assumed. When a skew distribution appears, it is taken to indicate a lack of control. The lognormal distribution has been suggested as a model of labor turnover by different authors, for example K. F. Lane and J. E. Andrew and S. McClean. The lognormal distribution, like the Weibull and the exponential distributions, has been used widely as a life time distribution model. D. Dyer derived the structural distribution of the reliability function, using the relation between the normal and lognormal distribution and the fact that the normal distribution is a location-scale density.
