This paper shows that economic statistical design can provide for better statistical properties without significantly increasing optimal total costs. Cost comparisons between optimal economic statistical designs and optimal economic designs show no significant cost increases. The average mn length (ARL) constraints added by economic statistical design significantly improve the statistical properties of the control chart scheme. False alarm frequency is limited while keeping good shift detection characteristics. In addition, the Multivariate Exponentially Weighted Moving Average (MEWMA) control schemes performed better from the cost standpoint than the benchmark pure statistical design - the Hotelling T2 control chart. This improvement held for unconstrained and constrained designs. Finally, cost comparisons at small values of n showed significant advantage for the MEWMA schemes.
ASJC Scopus subject areas
- Safety, Risk, Reliability and Quality
- Management Science and Operations Research