A unifying process capability metric
Abstract: A new economic
approach to process capability assessment is presented, which differs from the
commonly used engineering metrics. The proposed metric consists of two economic
capability measures – the expected profit and the variation in profit of the
process. This dual economic metric offers a number of significant advantages
over other engineering or economic metrics used in process capability analysis.
First, it is easy to understand and communicate. Second, it is based on a
measure of total system performance. Third, it unifies the fraction
nonconforming approach and the expected loss approach. Fourth, it reflects the
underlying interest of management in knowing the expected financial performance
of a process and its potential variation.
Author: John Jay Flaig
Journal Code: jptindustrigg090013
