Abstract: In order to minimize costs in manufacturing processes, the average run length (ARL) is used as standard multivariate T-2 control chart for process monitoring, performance analysis, and comparison between different monitoring rules. Then, an economic model is presented to minimize the cost. The proposed approach is applied to an industrial case study from an aircraft manufacturing company in China. Empirical results show that, by monitoring the process under Rule 3, T-2control charts for statistical process monitoring control are obtained. With the sampling capacity set at 11, the control of the cost parameters is effective. The proposed statistical design economic model is correct and effective and provides guidance to the actual production of an aircraft manufacturing company in China.

Key words: average run length (ARL), process monitoring control, Hotelling T-2 control chart, statistical economic model