The Exponentially Weighted Moving Average Control Chart

The exponentially weighted moving average (EWMA) control chart is also a good alternative to
the Shewhart control chart when we are interested in detecting small shifts. The performance of
the EWMA control chart is approximately equivalent to that of the cumulative sum control chart,
and in some ways it is easier to set up and operate.

Zi = λxi + (1-λ)zi -1 (1)

The exponentially weighted moving average is defined as where 0 < l ≤ 1 is a constant and the
starting value (required with the first sample at i = 1) is the process target, so that

Z0 = μ0

EWMA control chart would be constructed by plotting zi versus the sample number i (or time).
The center line and control limits for the EWMA control chart are as follows.

The EWMA Control Chart

λ
UCL= μ0 + L σ √ ( [1-(1-λ)2i] )……… (2)
(2− λ)

Center line = μ0

λ
UCL= μ0 - L σ √ ( [1-(1-λ)2i] ) …….(3)
(2− λ)

EXAMPLE 9.2

Set up an EWMA control chart with l = 0.10 and L = 2.7 to the data in Table 9.1

SOLUTION

OLUTION Recall that the target value of the mean is m0 = 10 and the standard deviation is s = 1.
The calculations for the EWMA control chart are summarized in Table 9.10, and the control
chart (from Minitab) is shown in Figure 9.7.

To illustrate the calculations, consider starting from the first observation, x1 = 9.45. The first
value of the EWMA is

Z1= λxi + (1-λ)zi -1 Z2= λx2+ (1-λ)z

=0.1(9.45)+(1-0.1)10 = 0.1(7.99)+(1-0.1)9.945

=9.945 =9.7495

Z3= λx3+ (1-λ)z2

 = 0.1(9.29)+(1-0.1) 9.7495 Z12= λx12+ (1-λ)z11

=9.70355 =0.1(11.47)+(1-0.1)9.92388

Z4= λx4+ (1-λ)z3 =10.078492

= 0.1(11.66)+(1-0.1)9.70355 Z13= λx13+ (1-λ)z12

=9.899195 =0.1(10.51)+(1-0.1)
10.078492
Z5= λx5+ (1-λ)z4
=10.1216
= 0.1(12.16)+(1-0.1)
9.899195 Z14= λx14+ (1-λ)z13

=10.1253 =0.1(9.4)+(1-0.1) 10.1216

Z6= λx6+ (1-λ)z5 =10.0495

= 0.1(10.18)+(1-0.1) 10.1253 Z15= λx15+ (1-λ)z14

=10.1307 =0.1(10.08)+(1-0.1)10.0495

Z7= λx7+ (1-λ)z6 =10.0525

=0.1(8.04)+(1-0.1) 10.1307 Z16= λx16+ (1-λ)z15

=9.92167 =0.1(9.37)+(1-0.1) 10.0525

Z8= λx8+ (1-λ)z7 =9.98426

=0.1(11.46)+(1-0.1) 9.92167 Z17= λx17+ (1-λ)z16

=10.0755 =0.1(10.62)+(1-0.1)9.98426

Z9= λx9+ (1-λ)z8 =10.0478

=0.1(9.2)+(1-0.1)10.0755 Z18= λx18+ (1-λ)z17

=9.98795 =0.1(10.31)+(1-0.1) 10.0478

Z10= λx10+ (1-λ)z9 =10.074

=0.1(10.34)+(1-0.1)9.98795 Z19= λx19+ (1-λ)z18

=10.0232 =0.1(8.52)+(1-0.1)10.074

Z11= λx11+ (1-λ)z10 =9.91864

=0.1(9.03)+(1-0.1) 10.0232 Z20= λx20+ (1-λ)z19

=9.92388 =0.1(10.84)+(1-0.1) 9.91864

 =10.0108 Z22= λx22+ (1-λ)z21

Z21= λx21+ (1-λ)z20 =0.1(9.33)+(1-0.1) 10.0997

=0.1(10.9)+(1-0.1)10.0108 =10.0227

=10.0997

Z23= λx23+ (1-λ)z22 Z27= λx27+ (1-λ)z26

=0.1(12.29)+(1-0.1) 10.0227 =0.1(10.38)+(1-0.1) 10.4654

=10.2495 =10.4568

Z24= λx24+ (1-λ)z23 Z28= λx28+ (1-λ)z27

=0.1(11.5)+(1-0.1) 10.2495 =0.1(11.62)+(1-0.1) 10.4568

=10.3745 =10.5731

Z25= λx24+ (1-λ)z24 Z29= λx29+ (1-λ)z28

=0.1(10.6)+(1-0.1) 10.3745 =0.1(11.31)+(1-0.1) 10.5731

=10.3971 =10.6468*

Z26= λx26+ (1-λ)z25 Z30= λx30+ (1-λ)z29

=0.1(11.08)+(1-0.1) 10.3971 =0.1(11.31)+(1-0.1) 10.6468*

=10.4654 =10.6341*

The other values of the EWMA statistic are computed similarly. The control limits in Figure 9.7
are found using equations 2 and . Starting from period i = 1-30

Center line = μ0=10

0.1 =1O.424
UCL1= 10 +2.7(1) √ ( [1-(1-0.1)2(1)] )
(2−0.1)
0.1
UCL4= 10 +2.7(1) √ ( [1-(1-0.1)2(4)] )
=10.27 (2−0.1)

0.1 =1O.48481
UCL2= 10 +2.7(1) √ ( [1-(1-0.1)2(2)] )
(2−0.1)
0.1
UCL5= 10 +2.7(1) √ ( [1-(1-0.1)2(5)] )
=10.363 (2−0.1)

0.1 =1O.4999
UCL3= 10 +2.7(1) √ ( [1-(1-0.1)2(3)] )
(2−0.1)
 0.1 =9.5799
LCL1= 10 - 2.7(1) √ ( [1-(1-0.1)2(1) ])
(2−0.1) 0.1
LCL4= 10 - 2.7(1) √ ( [1-(1-0.1)2(4) ])
=9.73 (2−0.1)

0.1 =9.48481
LCL2= 10 - 2.7(1) √ ( [1-(1-0.1)2(2) ])
(2−0.1) 0.1
LCL5= 10 - 2.7(1) √ ( [1-(1-0.1)2(5) ])
=9.63675 (2−0.1)

0.1 =9.500098
LCL3= 10 - 2.7(1) √ ( [1-(1-0.1)2(3) ])
(2−0.1)

0.1 0.1
UCL6= 10 +2.7(1) √ ( [1-(1-0.1)2(6)] ) LCL6= 10 - 2.7(1) √ ( [1-(1-0.1)2(6) ])
(2−0.1) (2−0.1)

=1O.5247 =9.4753

0.1 0.1
UCL7= 10 +2.7(1) √ ( [1-(1-0.1)2(7)] ) LCL7= 10 - 2.7(1) √ ( [1-(1-0.1)2(7) ])
(2−0.1) (2−0.1)
=9.456

=10.54396

0.1 0.1
UCL8= 10 +2.7(1) √ ( [1-(1-0.1)2(8)] ) LCL8= 10 - 2.7(1) √ ( [1-(1-0.1)2(8) ])
(2−0.1) (2−0.1)

=10.5591 =9.441

0.1 0.1
UCL9= 10 +2.7(1) √ ( [1-(1-0.1)29()] ) LCL9= 10 - 2.7(1) √ ( [1-(1-0.1)2(9) ])
(2−0.1) (2−0.1)

=10.571 =9.4295

0.1 0.1
UCL10= 10 +2.7(1) √ ( [1-(1-0.1)2(10)] ) LCL10= 10 - 2.7(1) √ ( [1-(1-0.1)2(10) ])
(2−0.1) (2−0.1)
=9.41945

=10.58

0.1 0.1
UCL11= 10 +2.7(1) √ ( [1-(1-0.1)2(11)] ) LCL11= 10 - 2.7(1) √ ( [1-(1-0.1)2(11) ])
(2−0.1) (2−0.1)
=9.41187

=10.58813
 0.1 0.1
UCL12= 10 +2.7(1) √ ( [1-(1-0.1)2(12)] ) LCL12= 10 - 2.7(1) √ ( [1-(1-0.1)2(12) ])
(2−0.1) (2−0.1)
=9.405795

=10.5942

0.1 0.1
UCL13= 10 +2.7(1) √ ( [1-(1-0.1)2(13)] ) LCL13= 10 - 2.7(1) √ ( [1-(1-0.1)2(13) ])
(2−0.1) (2−0.1)
=9.4009

=10.5991

0.1 =10.602996
UCL14= 10 +2.7(1) √ (
(2−0.1)
[1-(1-0.1)2(14)] )

0.1
LCL14= 10 - 2.7(1) √ ( [1-(1-0.1)2(14) ])
(2−0.1)
=9.397

0.1 0.1
UCL15= 10 +2.7(1) √ ( [1-(1-0.1)2(15)] ) LCL15= 10 - 2.7(1) √ ( [1-(1-0.1)2(15) ])
(2−0.1) (2−0.1)
=9.39385

=10.60615

0.1 0.1
UCL16= 10 +2.7(1) √ ( [1-(1-0.1)2(16)] ) LCL16= 10 - 2.7(1) √ ( [1-(1-0.1)2(16) ])
(2−0.1) (2−0.1)
=9.3913

=10.6087

0.1 0.1
UCL17= 10 +2.7(1) √ ( [1-(1-0.1)2(17)] ) LCL17= 10 - 2.7(1) √ ( [1-(1-0.1)2(17) ])
(2−0.1) (2−0.1)
=9.3893

=10.61

0.1 0.1
UCL18= 10 +2.7(1) √ ( [1-(1-0.1)2(18)] ) LCL18= 10 - 2.7(1) √ ( [1-(1-0.1)2(18) ])
(2−0.1) (2−0.1)
 =9.3892

=10.611

0.1 0.1
UCL19= 10 +2.7(1) √ ( [1-(1-0.1)2(19)] ) LCL19= 10 - 2.7(1) √ ( [1-(1-0.1)2(19) ])
(2−0.1) (2−0.1)
=9.3863

=10.6137

0.1 0.1
UCL20= 10 +2.7(1) √ ( [1-(1-0.1)2(20)] ) LCL20= 10 - 2.7(1) √ ( [1-(1-0.1)2(20) ])
(2−0.1) (2−0.1)
=9.3852

=10.61483

0.1 0.1
UCL21= 10 +2.7(1) √ ( [1-(1-0.1)2(21)] ) LCL21= 10 - 2.7(1) √ ( [1-(1-0.1)2(21) ])
(2−0.1) (2−0.1)
=9.3844

=10.6157 0.1
LCL22= 10 - 2.7(1) √ ( [1-(1-0.1)2(22) ])
(2−0.1)
0.1
UCL22= 10 +2.7(1) √ ( [1-(1-0.1)2(22)] )
(2−0.1) =9.3836

=10.616411 0.1
LCL23= 10 - 2.7(1) √ ( [1-(1-0.1)2(23) ])
(2−0.1)
0.1
UCL23= 10 +2.7(1) √ ( [1-(1-0.1)2(23)] )
(2−0.1) =9.383

=10.616985 0.1
LCL24= 10 - 2.7(1) √ ( [1-(1-0.1)2(24) ])
(2−0.1)
0.1
UCL24= 10 +2.7(1) √ ( [1-(1-0.1)2(24)] )
(2−0.1) =9.38255

=10.61745 0.1
LCL25= 10 - 2.7(1) √ ( [1-(1-0.1)2(25) ])
(2−0.1)
0.1
UCL25= 10 +2.7(1) √ ( [1-(1-0.1)2(25)] )
(2−0.1) =9.382

=10.6178

0.1
LCL26= 10 - 2.7(1) √ ( [1-(1-0.1)2(26) ])
(2−0.1)
0.1
UCL26= 10 +2.7(1) √ ( [1-(1-0.1)2(26)] )
(2−0.1) =9.38187

=10.61813
 0.1 0.1
UCL27= 10 +2.7(1) √ ( [1-(1-0.1)2(27)] ) LCL27= 10 - 2.7(1) √ ( [1-(1-0.1)2(27) ])
(2−0.1) (2−0.1)
=9.38163

=10.61837 0.1
LCL28= 10 - 2.7(1) √ ( [1-(1-0.1)2(28) ])
(2−0.1)
0.1
UCL28= 10 +2.7(1) √ ( [1-(1-0.1)2(28)] )
(2−0.1) =9.38143

=10.61857 0.1
LCL29= 10 - 2.7(1) √ ( [1-(1-0.1)2(29) ])
(2−0.1)
0.1
UCL29= 10 +2.7(1) √ ( [1-(1-0.1)2(29)] )
(2−0.1) =9.38127

=10.61873

0.1
UCL30= 10 +2.7(1) √ ( [1-(1-0.1)2(30)] )
(2−0.1)

0.1
LCL30= 10 - 2.7(1) √ ( [1-(1-0.1)2(30) ])
=10.62 (2−0.1)
=9.38

Design of the EWMA Control Chart

• The design parameters of the EWMA chart are L (the multiple of σzi used in the control limits) and λ
(the weighting constant).

• It is possible to choose L and λ so that the ARL performance of the EWMA chart closely approximates
the performance of a cusum ARL for detecting small shifts.

• The optimal EWMA design procedure would be to specify a desired in-control ARL, the magnitude of
the shift to be detected quickly, and an out-of-control ARL corresponding to this shift. Then, determine if
there exist L and λ values satisfying these conditions.
• Typically, we take the same approach taken with determining cusum parameters h and k. That is, we
use EWMA ARL tables to find reasonable L and λ parameter values that best meet our desired ARL
conditions. You have been supplied with tables of ARLs taken from the SAS QC manual (r = λ, k = L).

• Montgomery recommends the following:

1. Use smaller values of λ to detect smaller shifts.

2. Values of λ in the interval 0.05 ≤ λ ≤ 0.25 work well in practice (with λ = 0.05, 0.10, 0.20 being
commonly used values).

3. Using L = 3 works reasonably well with larger values of λ.

4. Using 2.6 ≤ L ≤ 2.8 works reasonably well with smaller values of λ (λ ≤ 0.10).

5. λ = .10 and L = 2.7 produces a EWMA chart approximately equivalent to a cusum chart with h = 5 and
k = .5.

6. If λ > 0.10, the EWMA is often superior to a cusum for large shifts.

7. To improve the sensitivity of the EWMA chart (or cusum chart) to detect large shifts without
sacrificing the ability to detect small shifts quickly, combine a Shewhart chart with the EWMA (or
cusum).

The combined Shewhart-EWMA (or combined ShewhartCusum) procedures are effective against both
large and small shifts. • There is also the EWMAARL function in SAS that will generate ARLs for a
given shift δσ, L, and λ values