Use of median‐based estimator to construct Phase II exponential chart

Abstract

AbstractThe Shewhart‐type exponential control chart is a popular and extensively used among all time‐between‐events control charts for its simplicity. When the parameter is unknown, Phase II control limits are constructed, and the success of its implementation depends to an extent on the estimated value of the parameter, obtained from Phase I dataset. However, when the Phase I data are contaminated with spurious observations/outliers, the performance of the chart is suspected to deviate from what is normally expected. Traditionally, maximum likelihood estimator (MLE) and minimum variance unbiased estimator (MVUE) are used to estimate the unknown process parameter. Both of estimators are the functions of sample mean. In this paper, the median‐based estimator (MBE) that is a function of sample median is used to construct Phase II control limits. Moreover, performance of the proposed chart is examined when Phase I sample consists of contaminated observations/outliers. It is found that the proposed chart outperforms the existing charts whether the sample is contaminated or not.