The Economic Design of Cusum Charts for Controlling Normal Means

W. K. Chiu

Journal of the Royal Statistical Society Series C, 1974, vol. 23, issue 3, 420-433

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.

Date: 1974
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