Optimized control charts using indifference regions

In statistical process monitoring, the CUSUM and EWMA control charts have received considerable attention because of their remarkable ability to detect small sustained shifts.In practice, small process variation and shifts are anticipated beforehand in many processes, so the focus should be on detecting a moderate to a large shift.The aforementioned charts identify minor changes in population parameters as out-of-control scenarios; thus, "small" and potentially practically insignificant shifts are producing signals.To counteract this, both charts are amended to accommodate an indifference region by optimizing the detection of a shift at the outer boundaries of the indifference region.The results show that the adapted CUSUM and EWMA monitoring schemes yield comparable results.On nearly all occasions, the CUSUM chart outperforms the EWMA chart, yet the EWMA chart seems more robust and is easier to interpret.Furthermore, we provide two practical examples to illustrate the use-case of optimized charts to mitigate small (unimportant) variations, such as seasonality and modest temporary shifts.Overall, this work provides a general approach tailored to practice in quality control, e.g., as prescribed by ISO standards.It also answers a recent call in statistical process monitoring literature to reconsider the design of control charts.