Quality control chart design under Jidoka

We consider design of control charts in the presence of machine stoppages that are exogenously imposed (as under jidoka practices). Each stoppage creates an opportunity for inspection/repair at reduced cost. We first model a single machine facing opportunities arriving according to a Poisson process, develop the expressions for its operating characteristics and construct the optimization problem for economic design of a control chart. We, then, consider the multiple machine setting where individual machine stoppages may create inspection/repair opportunities for other machines. We develop exact expressions for the cases when all machines are either opportunity‐takers or not. On the basis of an approximation for the all‐taker case, we then propose an approximate model for the mixed case. In a numerical study, we examine the opportunity taking behavior of machines in both single and multiple machine settings and the impact of such practices on the design of an X – Q C chart. Our findings indicate that incorporating inspection/repair opportunities into QC chart design may provide considerable cost savings. © 2009 Wiley Periodicals, Inc. Naval Research Logistics 2009