A statistical control chart based on ARMA (n, n−1) model

In this article, we apply the ARMA (n, n-1) model to the production system where there is some autocorrelation, and propose a new statistical control chart based on the model. The Monte Carlo Simulation is used to analyze the ability of the control chart. The results show that the ARMA (n, n-1) control chart significantly outperforms the ARMA (1, 1) one when the production process is stable; when facing unstable production process, ARMA (n, n-1) control chart can also have a good performance. Based on the results, we design the rules for choosing parameters and the procedure of constructing an ARMA (n, n-1) control chart.