An economic model for integrated automatic and statistical process control charts

As suggested by Box and Kramer and others, it is possible to reduce both the special cause and common cause variations by applying Statistical Process Control (SPC) methods to monitor the output of an Automatic Process Control (APC) controlled process. In this paper, we develop an economic model for SPC monitoring of APC controlled processes. We also develop an economic loss-based criterion, the Average Quality Cost (AQC), to evaluate the performance of SPC charting methods. The AQC and the traditional average run length of three common SPC charts are investigated and compared.