Process capability is calculated by manufacturing companies to determine efficiency.
Process capability is a measure of the ability to process output within specific parameters. Companies use formulas to calculate this, so they can constantly monitor the efficiency of all processing aspects of a manufacturing business.
Statistics
Process capability is used in manufacturing businesses and is measured by using indices. These indices measure how well a company's manufacturing process output meets customer's needs and specifications. A process capability number is calculated and compared to these numbers to determine if the process of production of an item is "capable" or manufactured efficiently. It is calculated by using a complex formula containing an upper specification limit (USL), a lower specification limit (LSL) and standard deviation (s). The formula is: (USL - LSL) divided by 6s.
Purpose
Process capability is performed within a company to measure its output against allowable measures. The purpose of this is to find out if the production is efficient and what improvements can be made. It is measured to increase efficiency of production.
Outcome
The effects of performing process capability tests are to ultimately lower the cost of production for manufactured goods. When production costs decrease, a higher profit for the company is made or the company passes its savings on to consumers by lowering product costs.
Tags: Process capability, Process capability, process output, specification limit