This thesis considers the economic design of control chart with measurement error. In the measurements of products, the total observed variance usually consists of process variance and variance due to measurement error. The effects of measurement error on the expected total cost and design parameters in the economic design of control charts are investigated when this error is a substantial part of the observed variance.
It is shown that the expected total cost and sample size increase, the control limit factor decreases, and the sampling interval trends to increase with fluctuation when the measurement error is relatively large in comparison to the process variance.
