Economic design of EWMA control charts based on loss function

Authors:
DoğAn A. Serel
Affiliations:
Faculty of Business Administration, Bilkent University, 06800 Bilkent, Ankara, Turkey
Venue:
Mathematical and Computer Modelling: An International Journal
Year:
2009

Citing 2
Cited 3

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Joint monitoring of process mean and variance using exponentially weighted moving average control charts

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A hybrid ant colony, Markov chain, and experimental design approach for statistically constrained economic design of MEWMA control charts

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Using geometric Poisson exponentially weighted moving average control schemes in a compound Poisson production environment

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Abstract

For monitoring the stability of a process, various control charts based on exponentially weighted moving average (EWMA) statistics have been proposed in the literature. We study the economic design of EWMA-based mean and dispersion charts when a linear, quadratic, or exponential loss function is used for computing the costs arising from poor quality. The chart parameters (sample size, sampling interval, control limits and smoothing constant) minimizing the overall cost of the control scheme are determined via computational methods. Using numerical examples, we compare the performances of the EWMA charts with Shewhart X@? and S charts, and investigate the sensitivity of the chart parameters to changes in process parameters and loss functions. Numerical results imply that rather than sample size or control limits, the users need to adjust the sampling interval in response to changes in the cost of poor quality.