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Two Charts: Not One
Affiliation:  a Department of Statistics and Industrial and System Engineering, University of Wisconsin-Madison,
Abstract:Difficulties can occur in the operation of traditional control charts. A principal reason for this is that the data coming from a typical operating process do not vary about a fixed mean. It is shown how by using a nonstationary model a continuously updated local mean level is provided. This can be used to produce (a) a bounded adjustment chart that tells you when to adjust the process to achieve maximum economy and (b) a Shewhart monitoring chart seeking assignable causes of trouble applied to the deviations from the local mean. Estimation of the mean and “standard deviation” are not required.
Keywords:bounded adjustment chart  EWMA estimate  IMA time series  monitoring chart  noise  nonstationarity  quality control chart  stationarity  white noise
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