Date of Graduation

12-2012

Document Type

Thesis

Degree Name

Master of Science in Industrial Engineering (MSIE)

Degree Level

Graduate

Department

Industrial Engineering

Advisor

Justin Chimka

Committee Member

Heather Nachtmann

Second Committee Member

Chase Rainwater

Abstract

Because the probability of Type I error is not evenly distributed beyond upper and lower three-sigma limits the c chart is theoretically inappropriate for a monitor of Poisson distributed phenomena. Furthermore, the normal approximation to the Poisson is of little use when c is small. These practical and theoretical concerns should motivate the computation of true error rates associated with individuals control assuming the Poisson distribution. An economic alternative to the c chart is described as a statistical model of upward shift from c0 to c1 and the two charts are compared in theory. For a range of c chart costs the savings associated with economic design increase linearly.

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