An economic statistical design of Double Multivariate Exponentially Weighted Moving Average (DMEWMA) control chart

An Economic Statistical Design of the Double Multivariate Exponentially Weighted Moving Average (DMEWMA) Control Chart was proposed. This research explores the design of DMEWMA control chart using economic criteria. The performance and the comparison of the economic statistical design of DMEWMA and economic statistical design of MEWMA control charts were also discussed. The Lorenzen and Vance Cost model technique was followed to explore the economic statistical design for DMEWMA control chart. An optimization method of Monte Carlo Simulation technique of SAS version 9.3 was used to find the cost of the production. Simulation results were based on 10,000 replications for each combination of parameters. The cost performance of the economic statistical design of DMEWMA control chart was designed for several values of p, delta, lambda and ARL0. The upper control limits (UCLs) for the DMEWMA control chart were chosen to achieve the desired ARL 0 of approximately 200 for each combination of p, delta, and lambda. The analysis of the economic statistical design of DMEWMA control charts showed that the new DMEWMA control chart scheme outperformed the existing economic statistical design of MEWMA control chart scheme and is more robust in reducing the cost of the production. The new economic statistical design of DMEWMA control chart has more desirable characteristic of reducing the cost of the production than the existing designs which might prove beneficial to the commercial data as commercial data has a pattern of large data sets involving variety of variables and design parameters.