The sensitivity analysis of the economic and economic statistical designs of the synthetic X chart

Wai Chung Yeong, Michael Boon Chong Khoo, Jia Kit Chong, Shun Jinn Lim, Wei Lin Teoh

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

The economic and economic statistical designs allow the practitioner to implement the control chart in an economically optimal manner. For the economic design, the optimal chart parameters are obtained to minimize the cost, while for the economic statistical design, additional constraints in terms of the average run length is imposed. However, these designs involve the estimation of quite a number of input parameters. Some of these input parameters are difficult to estimate accurately. Thus, a sensitivity analysis is required in order to identify which parameters need to be estimated accurately, and which requires just a rough estimation. This study focuses on the significance of 11 input parameters toward the optimal cost and average run lengths of the synthetic X chart. The significant input parameters are identified through a two-level fractional factorial design, which allows interaction effects to be identified. An analysis of variance is performed to obtain the P-values by using the Minitab software. The significant input parameters and interactions on the optimal cost and average run lengths are identified based on a 5% significance level. The results of this study show that the input parameters which are significant towards the economic design may not be significant for the economic statistical design, and vice versa. This study also shows that there are quite a number of significant interaction effects, which may mask the significance of the main effects.
LanguageEnglish
Title of host publicationProceedings of the 3rd International Conference on Quantitative Sciences and Its Applications
PublisherAIP Publishing
Pages940-947
Number of pages8
ISBN (Print)9780735412743
DOIs
Publication statusPublished - 4 Dec 2014

Publication series

NameAIP Conference Proceedings
PublisherAIP Publishing
No.1
Volume1635
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Fingerprint

Sensitivity analysis
Economics
Costs
Analysis of variance (ANOVA)
Masks

Keywords

  • economic design
  • economic statistical design
  • interaction effect
  • significance of input parameters
  • synthetic chart

Cite this

Yeong, W. C., Khoo, M. B. C., Chong, J. K., Lim, S. J., & Teoh, W. L. (2014). The sensitivity analysis of the economic and economic statistical designs of the synthetic X chart. In Proceedings of the 3rd International Conference on Quantitative Sciences and Its Applications (pp. 940-947). (AIP Conference Proceedings; Vol. 1635, No. 1). AIP Publishing. https://doi.org/10.1063/1.4903695
Yeong, Wai Chung ; Khoo, Michael Boon Chong ; Chong, Jia Kit ; Lim, Shun Jinn ; Teoh, Wei Lin. / The sensitivity analysis of the economic and economic statistical designs of the synthetic X chart. Proceedings of the 3rd International Conference on Quantitative Sciences and Its Applications. AIP Publishing, 2014. pp. 940-947 (AIP Conference Proceedings; 1).
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Yeong, WC, Khoo, MBC, Chong, JK, Lim, SJ & Teoh, WL 2014, The sensitivity analysis of the economic and economic statistical designs of the synthetic X chart. in Proceedings of the 3rd International Conference on Quantitative Sciences and Its Applications. AIP Conference Proceedings, no. 1, vol. 1635, AIP Publishing, pp. 940-947. https://doi.org/10.1063/1.4903695

The sensitivity analysis of the economic and economic statistical designs of the synthetic X chart. / Yeong, Wai Chung; Khoo, Michael Boon Chong; Chong, Jia Kit; Lim, Shun Jinn; Teoh, Wei Lin.

Proceedings of the 3rd International Conference on Quantitative Sciences and Its Applications. AIP Publishing, 2014. p. 940-947 (AIP Conference Proceedings; Vol. 1635, No. 1).

Research output: Chapter in Book/Report/Conference proceedingChapter

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Yeong WC, Khoo MBC, Chong JK, Lim SJ, Teoh WL. The sensitivity analysis of the economic and economic statistical designs of the synthetic X chart. In Proceedings of the 3rd International Conference on Quantitative Sciences and Its Applications. AIP Publishing. 2014. p. 940-947. (AIP Conference Proceedings; 1). https://doi.org/10.1063/1.4903695