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Optimal Use of Control Charts for Controlling Current Production

Author

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  • Shaul P. Ladany

    (Tel-Aviv University)

Abstract

A model is developed consisting of all the costs incurred when fraction-defective control charts are utilized to control current production: cost of sampling, cost of not detecting a change in the process, cost of false indication of change, and cost of re-adjusting detected changes. It is suggested that such control charts can be utilized in an optimal way, if those combinations of sample size, frequency of sampling and extent of control limits from process average will be used that provide the minimum total cost. It is further suggested that, by applying any specific cost data to this model, these optimal decision values can be easily evaluated by computer enumeration.

Suggested Citation

  • Shaul P. Ladany, 1973. "Optimal Use of Control Charts for Controlling Current Production," Management Science, INFORMS, vol. 19(7), pages 763-772, March.
    • Handle: RePEc:inm:ormnsc:v:19:y:1973:i:7:p:763-772
    DOI: 10.1287/mnsc.19.7.763
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    Cited by:

    1. Mahfuza Khatun & Michael B.C. Khoo & Sajal Saha & Philippe Castagliola, 2021. "A new distribution‐free adaptive sample size control chart for a finite production horizon and its application in monitoring fill volume of soft drink beverage bottles," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 37(1), pages 84-97, January.
    2. Asma Amdouni & Philippe Castagliola & Hassen Taleb & Giovanni Celano, 2017. "A variable sampling interval Shewhart control chart for monitoring the coefficient of variation in short production runs," International Journal of Production Research, Taylor & Francis Journals, vol. 55(19), pages 5521-5536, October.
    3. Turnes Osiris & Lee Ho Linda, 2005. "Monitoring Process Mean and Process Variance Using Collani's Statistic," Stochastics and Quality Control, De Gruyter, vol. 20(2), pages 223-229, January.
    4. Lee Ho, Linda & de Medeiros, Pledson Guedes & Borges, Wagner, 2007. "An alternative model for on-line quality monitoring for variables," International Journal of Production Economics, Elsevier, vol. 107(1), pages 202-222, May.
    5. Tagaras, George, 1996. "Dynamic control charts for finite production runs," European Journal of Operational Research, Elsevier, vol. 91(1), pages 38-55, May.
    6. Francisco Delgadillo & Ronald Bremer, 2010. "The development of a destructive sampling method designed for high quality production processes (DSM-HQ)," Quality & Quantity: International Journal of Methodology, Springer, vol. 44(3), pages 595-605, April.
    7. Amir Ahmadi-Javid & Mohsen Ebadi, 2017. "Economic Design of Memory-Type Control Charts: The Fallacy of the Formula Proposed by Lorenzen and Vance (1986)," Papers 1708.06160, arXiv.org.
    8. Amir Ahmadi-Javid & Mohsen Ebadi, 2021. "Economic design of memory-type control charts: The fallacy of the formula proposed by Lorenzen and Vance (1986)," Computational Statistics, Springer, vol. 36(1), pages 661-690, March.

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