When there is a change in a process, the MaxMin exponentially weighted moving average (EWMA) control chart shows which parameters have increased or decreased. The MaxMin EWMA may also be viewed as smoothed tolerance limits. Tolerance limits are limits that include a specific proportion of the...

An economic adjustment model of a process whose quality can be affected by multiple special causes, resulting in changes of the process mean by incorrect adjustment of the process when it is operating according to its capability. A statistically constrained adjustment model is developed for the...

Discusses some of the practical difficulties commonly experienced with Shewhart control charts, and makes three suggestions for overcoming these difficulties. The first suggestion is to distinguish the “out‐of‐control” points by some means other than control lines – perhaps by ringing...

Process capability indices have been used in the manufacturing industry to provide quantitative measures on process potential and performance. The formulae for these indices are easy to understand and straightforward to apply. But, since sample data must be collected in order to calculate these...

In this paper we incorporate Taguchi's loss function in the economic design of the control chart. This is done by redefining the in‐control and out‐of‐control costs using Taguchi's loss function. The new model brings Taguchi's off‐line concepts to the classical SPC approach and continues...

Demonstrates the application of data envelopment analysis (DEA) in examining the efficiency of bank branches relative to other branches. Shows that accounting variables can be complemented by non‐accounting variables controllable by management. The process of generating and interpreting...