A nonparametric Shewhart-type signed-rank control chart based on runs

Abstract

Shewhart-type distribution-free control charts are considered for the known in-control median of a continuous process distribution based on the Wilcoxon signed-rank statistic and some runs type rules. The new charts are more attractive to the practitioner than a basic Shewhart-type signed-rank chart proposed by Bakir ( 2004), as they offer more desirable ( smaller) false alarm rates and ( larger) in-control average run-lengths, and can be easily implemented. In addition to being nonparametric, that is with a known and stable in-control performance for all continuous distributions, a simulation study indicates that the proposed charts can have better out-of-control performance than the Shewhart X-bar chart and the basic signed-rank chart for the normal distribution and for some heavy-tailed distributions such as the double exponential and the Cauchy. A numerical example is provided.