Optimal design of a distribution-free quality control scheme for cost-efficient monitoring of unknown location

Chenglong Li, Amitava Mukherjee, Qin Su and Min Xie

International Journal of Production Research, 2016, vol. 54, issue 24, 7259-7273

Abstract: Traditionally, a cost-efficient control chart for monitoring product quality characteristic is designed using prior knowledge regarding the process distribution. In practice, however, the functional form of the underlying process distribution is rarely known a priori. Therefore, the nonparametric (distribution-free) charts have gained more attention in the recent years. These nonparametric schemes are statistically designed either with a fixed in-control average run length or a fixed false alarm rate. Robust and cost-efficient designs of nonparametric control charts especially when the true process location parameter is unknown are not adequately addressed in literature. For this purpose, we develop an economically designed nonparametric control chart for monitoring unknown location parameter. This work is based on the Wilcoxon rank sum (hereafter WRS) statistic. Some exact and approximate procedures for evaluation of the optimal design parameters are extensively discussed. Simulation results show that overall performance of the exact procedure based on bootstrapping is highly encouraging and robust for various continuous distributions. An approximate and simplified procedure may be used in some situations. We offer some illustration and concluding remarks.

Date: 2016
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DOI: 10.1080/00207543.2016.1173254

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