Title: A new control chart for monitoring the event frequency and magnitude

Authors: L. Qu; Z. Wu; M.B.C. Khoo; L.J. Shu

Addresses: School of Management, Tianjin University, Tianjin 300072, China ' School of Mechanical and Aerospace Engineering, Nanyang Technological University, 639798, Singapore ' School of Mathematical Sciences, Universiti Sains Malaysia, 11800 Penang, Malaysia ' Faculty of Business Administration, University of Macau, Avenida Padre Tomás Pereira, Taipa, Macau, China

Abstract: This article presents a single statistical process control chart, the G chart, for monitoring a critical event through the simultaneously testing of the time interval T and magnitude X of the event. The G chart is not only able to make decisions based on both T and X, but is also capable to optimally allocate the detection power between that against T shifts and X shifts, and between that against small shifts and large shifts. Moreover, the G chart retains most of the advantages of the Shewhart type charts of easy design, implementation and understanding. The results of performance studies show that the G chart is much more effective than all other Shewhart charts in literature for detecting the out-of-control status of an event. The G chart can be applied to many areas, especially to non-manufacturing sectors such as supply chain management and healthcare industry. [Received 23 August 2011; Revised 11 December 2012; Revised 10 March 2013; Accepted 23 July 2013]

Keywords: decision making; statistical process control; SPC; control charts; time between events; event magnitude; average loss; process monitoring; event frequency; critical events; supply chain management; SCM; healthcare industry.

DOI: 10.1504/EJIE.2014.066935

European Journal of Industrial Engineering, 2014 Vol.8 No.6, pp.789 - 813

Available online: 15 Jan 2015 *

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