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The effect of process adjustment error on X̄ chart design

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  • Timothy S. Vaughan

Abstract

The existing literature on economic design of X̄ process control charts generally assumes perfect process adjustment, such that the process mean is returned to an exactly centered “in control” state following any real or false alarm control chart signal. This paper presents a model which demonstrates the effects of imperfect process adjustment on the economically designed control chart parameters. The model demonstrates that the optimal control limit width depends fundamentally on the precision with which the process can be adjusted. The greater the process adjustment error, all else constant, the wider will be the optimal control limits, in order to alleviate the potential for process overcontrol and tampering effects. By endogenously modeling these effects, the new model helps to rectify the problem of poor statistical properties for which the economic design approach has been criticized. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 597–612, 1999

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  • Timothy S. Vaughan, 1999. "The effect of process adjustment error on X̄ chart design," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(6), pages 597-612, September.
    • Handle: RePEc:wly:navres:v:46:y:1999:i:6:p:597-612
    DOI: 10.1002/(SICI)1520-6750(199909)46:63.0.CO;2-9
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    References listed on IDEAS

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    1. George Tagaras & Hau L. Lee, 1988. "Economic Design of Control Charts with Different Control Limits for Different Assignable Causes," Management Science, INFORMS, vol. 34(11), pages 1347-1366, November.
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