The T-2 statistic associated with an observation from a multivariate proces
s is a function of the residuals taken from a set of linear regressions exi
sting among the various process variables. These residuals are contained in
the conditional T-2 terms of the orthogonal decomposition of the statistic
. It is shown in this paper that a large residual in one of these fitted mo
dels can be due to incorrect model specification. By improving model specif
ication at the time that the historical data set is constructed, it may be
possible to increase the sensitivity of the T-2 statistic to signal detecti
on. The resulting regression residuals also can be used to improve the sens
itivity of the T-2 statistic to small but consistent process shifts. This i
s accomplished using plots that are similar to cause-selecting control char
ts.