A model is developed consisting of all the costs incurred when fraction-defective control charts are utilized to control current production: cost of sampling, cost of not detecting a change in the process, cost of false indication of change, and cost of re-adjusting detected changes. It is suggested that such control charts can be utilized in an optimal way, if those combinations of sample size, frequency of sampling and extent of control limits from process average will be used that provide the minimum total cost. It is further suggested that, by applying any specific cost data to this model, these optimal decision values can be easily evaluated by computer enumeration.
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