Economic-statistical design of EWMA-semicircle charts under the Taguchi loss function

Shin-Li Lu

European Journal of Industrial Engineering, 2019, vol. 13, issue 4, 489-506

Abstract: A single exponentially weighted moving average (EWMA) chart is effectively used to monitor the process mean and/or variance simultaneously. An EWMA-semicircle (EWMA-SC) chart designed from the economic-statistical perspective is proposed, which incorporates Taguchi's quadratic loss function into Lorenzen and Vance's cost model. Moreover, economic-statistical performance and the effect on process capability index are compared to those with sum of square EWMA (SS-EWMA) and maximum EWMA (MaxEWMA) charts. The optimal decision variables - namely, sample size n, sampling interval time h, control limit width L and smoothing constant λ - are obtained by minimising the expected cost function. Via simulations, the EWMA-SC chart is found to incur the smallest expected cost when a process mean and variance simultaneously shift. However, the MaxEWMA chart incurs the lowest cost of defective products when a process means shifts on its own. [Received: 1 May 2017; Revised: 22 August 2018; Accepted: 3 January 2019]

Keywords: EWMA charts; economic-statistical design; cost model; quadratic loss function. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=100935 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:eujine:v:13:y:2019:i:4:p:489-506

Access Statistics for this article

More articles in European Journal of Industrial Engineering from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().