Economic Design And Control of Monitoring Mechanisms in Automated Production Systems

Monitoring production processes to assure product quality has been a major managerial and control problem. These processes are subject to shifts to “out-of-control” states, resulting in the production of defective items. Inspection as well as restoration capabilities are necessary to provide early detection and correction of these shifts in the process. This paper considers the costs of different policies for providing these detection and restoration capabilities. These policies amount to periodic or continuous inspection of the production process with perfect information, and continuous or periodic availability of maintenance facilities. The optimal operation of each policy is studied. Comparative analyses are conducted with different specifications of key parameters such as the rate of shift of the process and the cost of producing defective items. These analyses enable the derivation of the optimal policy when only ranges of the values of these parameters are known.