Design and Analysis of Adaptive CUSUM Chart for Location Parameter With Estimated Parameters

ABSTRACT Control charts are effective tools for monitoring and improving the output of industrial processes. The common practice of many researchers in assessing control chart performance in Phase II is about the knowledge of the in‐control and stable parameters. A lot of studies in the literature, neglect to take into account the impact of estimation on chart performance, although it is well‐recognized that the extra variability added to the monitoring scheme through parameter estimation affects the chart's performance. This study develops the design of an adaptive cumulative sum (ADCUSUM) control chart for monitoring the process location with estimated parameters along with examinations of chart performance when parameters are known. The proposed ADCUSUM chart's design structure is developed based on the shifts' unbiased mean estimator. The performance of the proposed structure is assessed under normal and non‐normal environments. A practical application is also provided to explain the implementation of the proposed design.