Purpose This paper aims to illustrate the tolerance optimization method based on the assembly accuracy constrain, precession constrain and the cost of production of the assembly product. Design/methodology/approach A tolerance optimization method is an excellent way to perform product assembly performance. The tolerance optimization method is adapted to the process analysis of the hatch and skin of an aircraft. In this paper, the tolerance optimization techniques are applied to the tolerance allocation for step difference analysis (example: step difference between aircraft cabin door and fuselage outer skin). First, a mathematical model is described to understand the relationship between manufacturing cost and tolerance cost. Second, the penalty function method is applied to form a new equation for tolerance optimization. Finally, MATLAB software is used to calculate 170 loops iteration to understand the efficiency of the new equation for tolerance optimization. Findings The tolerance optimization method is based on the assembly accuracy constrain, machinery constrain and the cost of production of the assembly product. The main finding of this paper is the lowest assembly and lowest production costs that met the product tolerance specification. Research limitations/implications This paper illustrated an efficient method of tolerance allocation for products assembly. After 170 loops iterations, it founds that the results very close to the original required tolerance. But it can easily say that the different number of loops iterations may have a different result. But optimization result must be approximate to the original tolerance requirements. Practical implications It is evident from Table 4 that the tolerance of the closed loop is 1.3999 after the tolerance distribution is completed, which is less than and very close to the original tolerance of 1.40; the machining precision constraint of the outer skin of the cabin door and the fuselage is satisfied, and the assembly precision constraint of the closed loop is satisfied. Originality/value The research may support further research studies to minimize cost tolerance allocation using tolerance cost optimization techniques, which must meet the given constrain accuracy for assembly products.

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