The economic design of (-)x charts: A proactive approach

    Authors

    G. S. Weheba;D. M. Nickerson

    Comments

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    Abbreviated Journal Title

    Qual. Reliab. Eng. Int.

    Keywords

    quality control; control chart design; quadratic loss; proactive cost; function; continuous improvement; CONTROL CHARTS; PROCESS IMPROVEMENT; Engineering, Multidisciplinary; Engineering, Industrial; Operations; Research & Management Science

    Abstract

    It has long been recognized that poor quality can only result in higher costs. Yet, the idea of reducing cost through better quality is not fully realized. Current models for the economic design of control charts provide strategies to maintain existing quality levels. In this research, a comprehensive cost model is developed to incorporate two cost functions. A reactive function, which accounts for all quality related costs incurred while maintaining a stable level of the process, and a proactive function, which accounts for the cost of process improvement. Using incremental economics, the two cost functions are assembled to allow an evaluation of process improvement alternatives based on their economic worth. Procedures for obtaining economically optimum designs for controlling the process mean are developed and designed experiments are utilized to investigate model performance over a wide range of input parameters. The results indicate that the model is sensitive to changes in 13 parameters, especially when the magnitude of the process shift is small. Copyright (C) 2004 John Wiley Sons, Ltd.

    Journal Title

    Quality and Reliability Engineering International

    Volume

    21

    Issue/Number

    1

    Publication Date

    1-1-2005

    Document Type

    Article

    Language

    English

    First Page

    91

    Last Page

    104

    WOS Identifier

    WOS:000227046200009

    ISSN

    0748-8017

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