• International Journal of Quality Innovation
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• v.7 no.3
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• pp.107-115
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• 2006

Control charts are important tools of statistical quality control. In 1956, Duncan first proposed the economic design of $\bar{x}-control$ charts to control normal process means and insure that the economic design control chart actually has a lower cost, compared with a Shewhart control chart. An moving average (MA) control chart is more effective than a Shewhart control chart in detecting small process shifts and is considered by some to be simpler to implement than the CUSUM. An economic design of MA control chart has also been proposed in 2005. The weaknesses to only the economic design are poor statistics because it dose not consider type I or type II errors and average time to signal when selecting design parameters for control chart. This paper provides a construction of an economic-statistical model to determine the optimal parameters of an MA control chart to improve economic design. A numerical example is employed to demonstrate the model's working and its sensitivity analysis is also provided.

• Journal of Korean Society for Quality Management
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• v.31 no.2
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• pp.117-130
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• 2003

This paper investigates the economic design of synthetic control charts. The synthetic control chart has been proven to be statistically superior to the $\bar{X}$-control chart, but its economic characteristics have not been known. We develop an economic model of the synthetic control chart, based on Duncan's model. The synthetic chart has one more decision variable, the lower control limit for the conforming run length. In addition to this, the significance level and the power of the synthetic chart are more complicated than those of the $\bar{X}$-chart. These features make the optimization problem more difficult. We propose an optimization algorithm by adapting the congruent gradient algorithm. We compare the optimal cost of the synthetic chart with that of (equation omitted)-control chart, under the same input parameter set of Duncan’s. For all cases investigated, the synthetic chart shows superior to the $\bar{X}$-chart. The synthetic control chart is easy to implement, and it has better characteristics than the $\bar{X}$-chart in economical sense as well as in statistical sense, so it will be a good alternative to the traditional control charts.

• International Journal of Quality Innovation
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• v.2 no.1
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• pp.69-86
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• 2001

The economic design of control charts has been researched for over four decades since Duncan proposed the concept in 1956. Few studies, however, have focused attention on the economic design of a moving average (MA) control chart. An MA control chart is more effective than the Shewhart chart in detecting small process shifts [9]. This paper provides an economic model for determining the optimal parameters of an MA control chart with multiple assignable causes and two failures in the production process. These parameters consist of the sample size, the spread of the control limit and the sampling interval. A numerical example is shown and the sensitivity analysis shows that the magnitude of shift, rate of occurrence of assignable causes and increasing cost when the process is out of control have a more significant effect on the loss cost, meaning that one should more carefully estimate these values when conducting an economic analysis.

• Journal of Korean Institute of Industrial Engineers
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• v.34 no.3
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• pp.328-336
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• 2008

This research proposes a method for economic-statistical design of adaptive moving average (A-MA) charts. The basic idea of the A-MA chart is to accumulate previous samples selectively in order to increase the sensitivity. The A-MA chart is a kind of adaptive chart such as the variable sampling size (VSS) chart. A major advantage of the A-MA chart over the VSS chart is that it is easy to maintain rational subgroups by using the fixed sampling size. A steady state cost rate function is constructed based on Lorenzen and Vance (1986) model. The cost rate function is optimized with respect to five design parameters. Computational experiments show that the A-MA chart is superior to the VSS chart as well as to the Shewhart $\bar{X}$ chart in the economic-statistical sense.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.27 no.2
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• pp.114-122
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• 2004

In statistical process control applications, variable sample size (VSS) $\bar{X}$ chart is often used to detect the assignable cause quickly. However, it is usually assumed that only one assignable cause results in the out-of-control in the process. In this paper, we propose the algorithm to minimize the function of cost per unit time and compare the economic design and the statistical design by use of the value of cost per unit time. We consider double assignable causes to occur with compound in the process and adopt the Markov chain approach to investigate the statistical properties of VSS $\bar{X}$ chart. A procedure that can calculate the control chart's parameters is proposed by the economic design.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.22 no.50
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• pp.55-63
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• 1999

Past studies on economic control charts for controlling process means assumed that the measures of a quality characteristic do not have measurement error. In practice, however, this assumption is frequently violated. In this paper, the economic design models of three control charts(Xbar control chart, Xbar control chart with warning limits, and CUSUM control chart) for controlling process means are developed on the assumption that the measures can have measurement error. The effects of measurement error on the process control cost and design parameters of three economic control charts are examined. According to the experiments done in this study, when measurement error exists, the economic CUSUM control chart has lower process control cost in comparison with two other control charts. When measurement error becomes larger, both the sample size and the sampling interval increase while the control limits decrease.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.28 no.4
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• pp.85-93
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• 2005

This paper is designed a VSI ${\overline{X}}$-CRL synthetic control chart in aspect of economy. We found the optimal sampling interval and various control limit factors under various cost parameters using cost function, proposed Lorenzen and Vance. Optimal design parameters include the sample size, control limit width, sampling interval, CRL/S chart control limit; L. Comparison and analysis of cost parameters are applied between synthetic VSI ${\overline{X}}$-CRL chart and FSI ${\overline{X}}$-CRL chart. The result of this paper shows that VSI ${\overline{X}}$-CRL chart brings cost-cutting effect of 3.04% control expense less than FSI control chart. It may not be difficult to establish the optimal economic control parameters to apply the practical cost parameters in the field.

• Journal of Korean Society for Quality Management
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• v.35 no.2
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• pp.37-44
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• 2007

Today, the statistical process control (SPC) in manufacture environment is an important role at the process by the productivity improvement of the manufacturing systems. The control chart in this statistical method is widely used as an important statistical tool to find the assignable cause that provoke the change of the process parameters such as the mean of interest or standard deviation. But the traditional SPC don't grasp the change of process according to the points fallen the near control limits because of monitoring the variance of process such as the fixed sampling interval and the sample size and handle the cost of the aspect of these sample point. The control chart can be divided into the statistical and economic design. Generally, the economic design considers the cost that maintains the quality level of process. But it is necessary to consider the cost of the process improvement by the learning effects. This study does the economic design in the VSI $\bar X$ control chart and added the concept of loss function of Taguchi in the cost model. Also, we preyed that the VSI $\bar X$ control chart is better than the FSI $\bar X$ in terms of the economic aspects and proposed the standard of the process improvement using the VSI $\bar X$ control chart.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.36 no.2
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• pp.56-62
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• 2013

Control chart is representative tool of Statistical Process Control (SPC). But, it is not given information about the economic loss that occurs when a product is produced characteristic value does not match the target value of the process. In order to manage the process, we should consider not only stability of the variation also produce products with a high degree of matching the target value that is most ideal quality characteristics. There is a need for process control in consideration of economic loss. In this paper, we design a new control chart using the quadratic loss function of Taguchi. And we demonstrate effectiveness of new control chart by compare its ARL with ${\overline{x}}-R$ control chart.

• Industrial Engineering and Management Systems
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• v.6 no.1
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• pp.11-21
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• 2007

The PDCA (Plan, Do, Check and Act) cycle is often used in the field of quality management. Recently, business environments have become more competitive, and the due time of products has shortened. In a short production run process, to increase efficiency of management, the necessity for distinguishing the PDCA design that starts with PLAN and the CAPD design that starts with CHECK has been clarified. Starting from Duncan (1956), there have been a number of papers dealing with the economic design of control charts from the viewpoint of production run. Some authors (Gibra, 1971; Ladany and Bedi, 1976; etc.) have studied the economic design for finite-length runs; other authors (Crowder, 1992; Del Castillo and Montgomery, 1996; etc.) have studied the economic design for short runs. However, neither the PDCA nor the CAPD design of control charts has been considered. In this paper, both the PDCA and CAPD designs of the $\bar{\x}$ chart are defined based on Del Castillo and Montgomery's design (1996), and their mathematical formulations are shown. Then from an economic viewpoint, the optimal values of the sample size per each sampling, control limits width, and the sampling interval of the two designs are studied. Finally, by numerically analyzing the relations between the key parameters and the total expected cost per unit time, the comparisons between the two designs are considered in detail.