Fiveable

๐Ÿ“ˆIntro to Probability for Business Unit 15 Review

QR code for Intro to Probability for Business practice questions

15.2 Process Capability Analysis

๐Ÿ“ˆIntro to Probability for Business
Unit 15 Review

15.2 Process Capability Analysis

Written by the Fiveable Content Team โ€ข Last updated September 2025
Written by the Fiveable Content Team โ€ข Last updated September 2025
๐Ÿ“ˆIntro to Probability for Business
Unit & Topic Study Guides

Process capability analysis helps businesses ensure their products meet quality standards. It involves calculating indices like Cp and Cpk, which measure how well a process meets specifications. These indices compare the spread of data to the allowable range.

Interpreting capability indices is crucial for quality control. Values above 1 indicate a capable process, while values below 1 suggest improvements are needed. The analysis assumes normal distribution, but methods exist for non-normal data too.

Process Capability Analysis

Calculation of capability indices

  • Process capability indices quantify how well a process meets specifications
    • Cp: Process Capability Index measures the potential capability of a process to meet specifications
      • Formula: $Cp = \frac{USL - LSL}{6\sigma}$
        • USL: Upper Specification Limit (maximum allowable value)
        • LSL: Lower Specification Limit (minimum allowable value)
        • $\sigma$: Process standard deviation (measure of variability)
    • Cpk: Process Capability Index adjusted for process centering measures the actual capability of a process to meet specifications
      • Formula: $Cpk = \min(\frac{USL - \mu}{3\sigma}, \frac{\mu - LSL}{3\sigma})$
        • $\mu$: Process mean (average value)
      • Cpk considers the process center relative to the specification limits (how well the process is centered between USL and LSL)

Interpretation of capability indices

  • Cp and Cpk values indicate the process capability
    • Cp and Cpk > 1: Process is capable of meeting specifications (producing parts within the allowable range)
      • Higher values indicate greater capability (more room for error)
    • Cp and Cpk < 1: Process is not capable of meeting specifications (producing out-of-spec parts)
    • Cp > Cpk: Process is not centered within the specification limits (off-center, closer to one limit)
    • Cp = Cpk: Process is centered within the specification limits (equal room for error on both sides)
  • Minimum acceptable values for Cp and Cpk depend on the industry and criticality of the product
    • Typical minimum values range from 1.33 (less critical) to 2.00 (highly critical, like aerospace)

Process capability for normal distributions

  • Process capability analysis assumes that the data follows a normal distribution (bell-shaped curve)
  • Steps to determine process capability for normally distributed data:
    1. Collect data on the process characteristic of interest (measurements, dimensions)
    2. Test the data for normality using graphical methods or statistical tests
      • Graphical methods: histogram (shape), normal probability plot (straight line)
      • Statistical tests: Anderson-Darling, Shapiro-Wilk (p-value > 0.05 indicates normality)
    3. If the data is normally distributed, calculate the process mean ($\mu$) and standard deviation ($\sigma$)
    4. Calculate Cp and Cpk using the formulas provided
    5. Interpret the results based on the calculated values and the specific requirements of the process

Process capability for non-normal data

  • If the data is not normally distributed, process capability analysis can still be performed with some adjustments
  • Methods for assessing process capability with non-normal data:
    • Transform the data to achieve normality
      • Box-Cox transformation (power transformation to stabilize variance and make data more normal)
      • After transformation, follow the steps for normally distributed data
    • Use non-parametric methods, such as percentile-based indices
      • Pp: Process Performance Index
        • Formula: $Pp = \frac{USL - LSL}{6s}$, where $s$ is the sample standard deviation
      • Ppk: Process Performance Index adjusted for process centering
        • Formula: $Ppk = \min(\frac{USL - \tilde{x}}{3s}, \frac{\tilde{x} - LSL}{3s})$, where $\tilde{x}$ is the sample median
    • Use distribution-specific capability indices
      • Cpm for Weibull distribution (used for reliability analysis)
  • Interpret the results based on the chosen method and the specific requirements of the process