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Integration of economic production quantity in optimization design of control chart based on loss function and random process shift

Integration of economic production quantity in optimization design of control chart based on loss... Purpose – The purpose of this paper is to develop an extensive economic production quantity (EPQ) model on the basis of previous research. Considering an imperfect three‐state production process, this paper makes contributions to an integrated model combining conceptions of quality loss and design of control chart based on EPQ model. The objective is to minimize the total production cost with the determination of EPQ and design parameters of control chart subjected to quality loss and other process costs. Design/methodology/approach – In this paper, imperfect process is defined as a three‐state process, and the quality cost corresponding to each state contributes to the eventual total expected cost formulation. Control chart is used to monitor the shift from the target value within whole process and its control limits are set to be related to the quality cost. Findings – The proposed integrated model conforms more closely to the real situation of production process considering the process shift as a random variable. Practical implications – Numerical computation and sensitivity analysis through a case study are presented to demonstrate the applications of the model. Originality/value – Few research efforts investigate an integrated model considering EPQ, control chart and quality loss simultaneously. In particular, compared with the former researches, the process shift, due to which the quality cost incurs, is considered as a random variable in this paper. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Manufacturing Technology Management Emerald Publishing

Integration of economic production quantity in optimization design of control chart based on loss function and random process shift

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References (37)

Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1741-038X
DOI
10.1108/17410381111160979
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to develop an extensive economic production quantity (EPQ) model on the basis of previous research. Considering an imperfect three‐state production process, this paper makes contributions to an integrated model combining conceptions of quality loss and design of control chart based on EPQ model. The objective is to minimize the total production cost with the determination of EPQ and design parameters of control chart subjected to quality loss and other process costs. Design/methodology/approach – In this paper, imperfect process is defined as a three‐state process, and the quality cost corresponding to each state contributes to the eventual total expected cost formulation. Control chart is used to monitor the shift from the target value within whole process and its control limits are set to be related to the quality cost. Findings – The proposed integrated model conforms more closely to the real situation of production process considering the process shift as a random variable. Practical implications – Numerical computation and sensitivity analysis through a case study are presented to demonstrate the applications of the model. Originality/value – Few research efforts investigate an integrated model considering EPQ, control chart and quality loss simultaneously. In particular, compared with the former researches, the process shift, due to which the quality cost incurs, is considered as a random variable in this paper.

Journal

Journal of Manufacturing Technology ManagementEmerald Publishing

Published: Sep 11, 2011

Keywords: Production planning and control; Production processes; Control charts; Process control; Predictive process

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