Economic Design of Geometric Chart
Cost consideration is always important in industry and any quality related activities should be put into the context of cost saving to improve profitability. In using control chart in practice, economic factors can be taken into account for designing control chart. In this chapter, the selection of design parameters is investigated from an economic point of view. Specifically, the sampling interval and the control limit for the CCC chart will be studied. An economic model for CCC chart design, which is based on the flexible cost model by Lorenzen-Vance, is studied. A simplified procedure is used to derive the optimum solution. Some sensitivity analysis is also presented to investigate the effect of input parameters on the optimum economic design of CCC chart.
KeywordsFalse Alarm Loss Function Control Chart Weibull Distribution Control Limit
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