Monitoring and Diagnosing Process Loss Using a Weighted‐Loss Control Chart

Abstract

Product and service quality and productivity loss are all crucial competitive factors of companies in numerous industries. The loss function is a popular method for measuring the loss caused by variations in product or service quality. This study proposes a weighted-loss (WL) control chart to monitor the loss variation among manufacturing or service processes. Because loss is caused by a quality variable deviating from its target value, we set up two corresponding control charts to diagnose the sources of out-of-control loss and implement processes to correct these losses. We further present a WL chart using optimal variable sampling intervals (VSIs) in order to detect out-of-control losses faster compared with a WL chart using a fixed sampling interval (FSI). An example then demonstrates and evaluates the ability of the proposed VSI WL control chart to monitor and diagnose out-of-control process loss. Numerical analyses indicate that the optimal VSI WL chart outperforms the FSI WL chart, the joint X and S 2 charts and the VSI Average Loss chart in detecting out-of-control process loss. Thus, the proposed VSI WL chart is recommended.

How innovative organization culture affects firm performance in the wake of enterprise resource planning? evidence from energy- and non-energy-sector firms in Pakistan

“…For instance, effective inventory management, cost reduction, decreased time lags, and enhanced customer services (Psarakis 2015). Managerial benefits include efficiently managing human resources, production, and inventory (Yang and Lin 2014). It is also associated with monitoring and controlling the financial outcome of firms' activities (Yang and Lim 2009).…”

A New EWMA Loss Control Chart with Adaptive Control Scheme

“…A few studies in this area have been conducted over the past ten years, Cheng and Thaga [1] provided an overview of the single charts developed before 2006. Recently, some new studies of single charts have been done; see, for example, Costa and Rahim [2], Wu and Tian [3], Wu, Tian, and Zhang [4], Zhang and Wu [5], Wu and Tian [6], Wu, Wang, and Wang [7], Hawkins and Deng [8], Li, Zhang, and Wang [9], Zhang, Zou, and Wang [10] , Khoo et al [11], Khoo, Teh and Wu [12], Zhou, Luo, and Wang [13], Huang and Chen [14], Zhang, Zou, and Wang [15], Ou, Wu, and Goh [16] Memar and Niaki [17], Teh, Khoo and Wu [18], Teh, Khoo and Wu [19] , Yang [20], Yang [21] and Yang and Lin [22] Several studies on the performance of adaptive control charts suggested the use of adaptive control schemes instead of the fixed control scheme. However, in recently ten years only a few studies proposed double adaptive charts or a single adaptive chart to monitor the process mean and the variance simultaneously (e.g., Park, Lee and Kim [23]; Wu, Tian, and Zhang [2]; Zhang and Wu [3]; Castagliola, Celano and Fichera [24]; Castagliola, Celano, Fichera and Giuffrida [25]; Costa and Magalh [26]; Yang and Chen [27]; Yang and Yang [28]; Yang and Yu [29]; Wu, Wang and Wang [5]; Prajapati and Mahapatra [30]; Yang [31]; Yang and Chen [32]; Yang, Ko and Yeh [33]).…”