International Journal of Quality Innovation

Korean Society for Quality Management (한국품질경영학회)
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Proposal of a New Process Capability Index Based on Dollar Loss by Defects

  • Published : 2008.04.30
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Abstract

The process capability indices have been widely used to measure process capability and performance. In this paper, we proposed a new process capability index which is based on an actual dollar loss by defects. The new index is similar to the Taguchi's loss function and fully incorporates the distribution of quality attribute in a process. The strength of the index is to apply itself to non-normal or asymmetric distributions. Numerical examples were presented to show superiority of the new index against $C_p$, $C_{pk}$, and $C_{pm}$ which are the most widely used process capability indices.

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