New CUSUM and EWMA charts with simple post signal diagnostics for two‐parameter exponential distribution

The two‐parameter exponential distribution (TPED) is often used to model time‐between‐events data. In this paper, we propose CUmulative SUM and exponentially weighted moving average charts for simultaneously monitoring the parameters (location and scale) of the TPED. A key feature of the proposed charts is their straightforward post‐signal diagnostics. Monte Carlo simulations are used to estimate the zero‐state and steady‐state average run‐length (ARL) profiles of the proposed charts. The ARL performances of existing and proposed charts are assessed in terms of expected weighted run‐length and relative mean index. It is found that the proposed charts outperform the existing charts. A real dataset is used to illustrate the implementation of the proposed charts.