A Dynamic Empirical Bayes Signal Model for Attribute Defect Detection

This study evaluates Empirical Bayes (EB) c-charts for monitoring count-type data under precautionary (PLF) and logarithmic (LLF) loss functions. By assuming an exponential prior for the Poisson mean, the EB framework enables the construction of predictive densities for future observations. Simulation studies and a real-world dataset on missing rivets in large aircraft were used to compare the methods’ ability to detect out-of-control conditions. The results show that EB–LLF charts exhibit high sensitivity for small and moderate process shifts, and both EB approaches outperform the classical c-chart by integrating prior information to detect shifts earlier while controlling false alarms. These findings highlight the importance of loss function choice and demonstrate the effectiveness of EB charts for robust process monitoring.