An economic design of [xbar] control chart using quadratic loss function

Abstract

Abstract The quadratic loss function is used in Taguchi's on-line cost model to estimate the quality cost. However, Taguchi's on-line quality control approach is different from the widely used statistical process control techniques where control charts are the primary tools for quality control. Duncan's economic design of x control chart is the first attempt to design the control charts in terms of process cost. In this paper, we present a new economic design based on the loss function approach as advocated by Taguchi. We also obtain the optimal parameters of the control chart that minimize the total quality cost.