## Statistical Quality Control: A Loss Minimization ApproachWhile many books on quality espouse the Taguchi loss function, they do not examine its impact on statistical quality control (SQC). But using the Taguchi loss function sheds new light on questions relating to SQC and calls for some changes. This book covers SQC in a way that conforms with the need to minimize loss. Subjects often not covered elsewhere include: (i) measurements, (ii) determining how many points to sample to obtain reliable control charts (for which purpose a new graphic tool, diffidence charts, is introduced), (iii) the connection between process capability and tolerances, (iv) how to adapt Deming's kp rule to quadratic loss, (v) how to adjust without tampering. We also discuss the efficiency of various statistics and how control chart constants are derived. |

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### Contents

Preface | 1 |

On Measurement | 17 |

More on Precision and Calibration | 35 |

Partial Measurement of Quality by Loss Functions | 45 |

Leavenworth Richard S 247 355 | 48 |

Asymmetrical Loss Functions | 69 |

Adjusting Processes Without Tampering | 75 |

Shewhart Control Charts for Attributes | 113 |

3 More on the Optimal Subgroup Size in Shewhart | 239 |

Basic Concepts in Time Series Analysis | 269 |

Diffidence Analysis of Control Charts and Diffidence Charts | 281 |

Inspection Theory | 309 |

lot tolerance percent defective see LTPD | 332 |

353 | |

356 | |

357 | |

Subgroup Size | 135 |

of Opportunity | 150 |

Control Charts for Continuous Variables | 159 |

Pareto principle for variance reduction 65 66 | 221 |

1 On the Efficiency of Various Dispersion Statistics | 225 |

2 On the Computation of Control Chart Factors | 233 |

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### Common terms and phrases

accept adjust the process applies approximation associated assume assumption autocorrelation bias binomial binomial distribution calculate centerline Chapter column control charts control limits cost defective items demerits Deming Deming's diffidence chart discuss dispersion chart drift efficiency error EWMA chart example expected expected value exponential smoothing false signals Figure forecast fractional adjustment Funnel Rule harmonic rule implies increase instance less loss function LTPD measurement median method minimize monitor moving average Nonetheless normal distribution np chart number of defects number of runs obtain points Poisson Poisson distribution Poisson process poka-yoke probability problem production quadratic loss random variable range ratio recommended red beads reduce relatively risk robust sampling plan Shewhart charts special causes specification standard deviation statistical control sufficient statistic Suppose Table tampering target tolerance limits total number triangular distribution Trietsch variance variation workers Zone