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The Economic Design of Cusum Charts for Controlling Normal Means

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  • W. K. Chiu

Abstract

This paper proposes a production model for quality surveillance, which is based on a cusum chart using the decision interval criterion. An algorithm for determining the economically optimum control parameters is presented. Some criticisms of the conventional ad hoc design of a cusum chart are made, and it is suggested that the average run lengths (ARL) at the rejectable quality level should be less than 2 when this model is applicable. A simplified version of the algorithm is also devised which gives control plans which are close to optimum. This scheme is suitable for application at the factory level. Also included is a table of ARL for some neglected, but useful, values of the decision interval and the process deviate.

Suggested Citation

  • W. K. Chiu, 1974. "The Economic Design of Cusum Charts for Controlling Normal Means," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 23(3), pages 420-433, November.
    • Handle: RePEc:bla:jorssc:v:23:y:1974:i:3:p:420-433
    DOI: 10.2307/2347134
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    Cited by:

    1. Hendrikx, A.L.P.M. & Heuts, R.M.J. & Hoving, L.G., 1989. "Comparison of automatic monitoring systems in automatic forecasting," Research Memorandum FEW 386, Tilburg University, School of Economics and Management.
    2. Hendrikx, A.L.P.M. & Heuts, R.M.J. & Hoving, L.G., 1989. "Comparison of automatic monitoring systems in automatic forecasting," Other publications TiSEM 41b54119-da0c-4a87-bd3b-4, Tilburg University, School of Economics and Management.
    3. Simpson, James R. & Keats, J. Bert, 1995. "Sensitivity study of the CUSUM control chart with an economic model," International Journal of Production Economics, Elsevier, vol. 40(1), pages 1-19, June.

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