ECONOMIC ADJUSTMENT DESIGNS FOR X¯ CONTROL CHARTS

Abstract We develop an economic model of a process whose quality can be affected by an assignable cause resulting in a shift of the mean of the distribution of output or by incorrect adjustment of the process when it is operating according to its capability. An X¯-con-trol chart is used to signal the assignable cause. The model is used to determine the parameters of the control chart that maximize the long term-profitability of the process.