Machine vision systems are often used in gaging applications. Analysis of the measurement system is important to determine if the measurement process is adequate to measure the part- to-part variability in the manufacturing process and if the system can be implemented as a reject station. The paper provides the principles of measurement system analysis and the principles of Three-Sigma and Six-Sigma quality control. This paper introduces formulas for evaluating the additional yield loss due to rejection of good parts in Three-Sigma and Six- Sigma process design as function of the measurement system resolution. At the end of the paper we will discuss gage resolution requirements for Three-Sigma and Six-Sigma quality control.