Performance evaluation of extended EWMA control chart in the presence of measurement error

In any manufacturing or service industry, substantial effort is made to keep a process under control. However, factors such as measurement error are bound to create distortions. Many researchers have studied the effect of measurement error on various types of control charts including the EWMA control chart. In this paper, we study the effect of measurement error on the competency of the extended EWMA control chart. We examine the performance of the chart in the case of a shift in mean taking into account the model with linear covariates. The consequence of making multiple measurements on each sampled unit is also investigated. Last but not the least, we examine the case of linearly increasing variance. Through a simulation study, we demonstrate that the performance of the chart for detecting a shift in the mean is substantially reduced in the presence of measurement error. The important finding, however, is that, in spite of the existence of measurement error, the EEWMA control chart performs better than the EWMA control chart. A practical example is provided to elucidate this finding.