CLASS HANDOUT: PROCESS CAPABILITY

Using control charts to assess whether the process is in control is an important internal benefit of SPC.
An equally important question for any operations manager would be: “Is the variation in the process
performance acceptable to external customers?” The answer will depend on the acceptable range of
performance that will be tolerated by the customers. This range is called the specification range.
Process capability is a measure of the acceptability of the variation of the process. The simplest
measure of capability (Cp) is given by the ratio of the specification range to the ‘natural’ variation of the process
(i.e. 3 standard deviations):
𝑈𝑇𝐿 − 𝐿𝑇𝐿
𝐶𝑝 =
6𝑠

Where: UTL = the upper tolerance (specification) limit

LTL = the lower tolerance (specification) limit
s = the standard deviation of the process variability.
Generally, if the Cp of a process is:
 Greater than 1 - indicates that the process is ‘capable’ - the natural variation is within the
specifications, while a number that is
 Less than 1 - indicates that the process is not ‘capable’ – the natural variation is larger than the
specifications.
Assuming that the distribution is normal - see Figure 4(a), (b) and (c)).
Figure 4. Process capability compares the natural variation of the process with the
specification range that is required.

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 One-sided Process Capability
The simple Cp, measure assumes that the mean of the process variation is at the mid-point of the
specification range. Often the process mean is offset (not centered) from the specification range, however
(see Figure 4(d)). ln such cases, one-sided capability indices are required to understand the capability of the
process:
𝑈𝑇𝐿−𝑋
Upper one-sided index 𝐶𝑝𝑘𝑢 = 3𝑠
𝑋−𝐿𝑇𝐿
Lower one-sided index 𝐶𝑝𝑘𝑙 = 3𝑠

Where: x̅ = the process mean.

Sometimes only the lower of the two one-sided indices for a process is used to indicate its capability;
(Cpk) = Cpk : Min(Cpu: Cpl)
Example:
In the case of a process filling boxes of rice, process capability can be calculated as follows:
Specification range: 214 grams to 198 grams = 16g
Natural variation of process = 6 x standard deviation
= 6 x 2 = 12g
Process Capability = Cp
𝑈𝑇𝐿−𝐿𝑇𝐿
= 6𝑠
214 −198
= 6∗2
16
=
12

= 1.333.
If the natural variation of process the filling changed to have a process mean of 210 grams, but the
standard deviation of the process remains at 2 grams:
𝑈𝑇𝐿−𝑋
Its upper one sided index: 𝐶𝑝𝑘𝑢 = 3𝑠
214 −210 4
= 3∗2
= 6
= 0.666

𝑋−𝐿𝑇𝐿
Its lower one sided index: 𝐶𝑝𝑘𝑙 = 3𝑠
210 − 198 12
= = = 2.0
3∗2 6

Therefore the processes one sided capability, its Cpk = Min (Cpu : Cpl):
Cpk = Min (0.666 : 2.0)
Cpk = 0.666

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PROCESS CAPABILITY EXERCISES

EXERCISE 1.
An industrial process has the following specifications as defined by the customer: a target of 170.0 grams
and an allowable tolerance of +/- 3.0 grams. The process mean is measured to be 171.0 grams with a
standard deviation of 0.7 grams. The process is considered to be in control and is normally distributed.
(a) Calculate the process capability Cp and Cpk values for this process.
(b) Draw a diagram that represents the situation.
(c) Discuss the actions that need to be taken.

Calculate Cp and Cpk Here Draw your Diagram here

EXERCISE 2.
Samples are being taken from a pin manufacturing process every 15 to 20 minutes. The production rate is
350 to 400 pins per hour, with specification limits on length being 0.820 and 0.840 cm. After 20 samples of
5 pins, produces a process mean of 0.834 cm and a standard deviation of 0.003. The process is considered
to be in control and is normally distributed.
(a) Calculate the process capability Cp and Cpk values for this process.
(b) Draw a diagram that represents the situation.
(c) Discuss the actions that need to be taken.

Calculate Cp and Cpk Here Draw your Diagram here

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EXERCISE 3.
An “efficiency standard” has been set for workers at XSC bank that transactions should average 3 minutes
(180 seconds), with a maximum of 5 minutes (300 seconds) for any one transaction. Data was collected
from workers at customer windows that gave a process mean of 235 seconds and a standard deviation of
29.3 seconds. The process is considered to be in control and is normally distributed.
(a) Calculate the Cpku value for this process.
(b) Draw a diagram that represents the situation you find.
(c) Identify what Quality tools could help to identify actions to improve this process and bring the
process within capability?

Calculate Cpku Here Draw your Diagram here

EXERCISE 4.
The RRR plastics company makes light switches for cars. It is important that the length of the switch stays
within the customer’s specifications, otherwise the switches do not fit into the dashboard of the cars. Its
customer, the ABC car company has set the following specifications on the lengths of the switches: 5.10 +/-
0.15 cm. From historic data, it is known that RRR’s process is in control when the process mean is 5.12,
with a standard deviation of 0.23. The process data is normally distributed.
(a) Calculate the process capability Cp and Cpk values for this process.
(b) Draw a diagram that represents the situation.
(c) Discuss the actions that need to be taken.

Calculate Cp and Cpk Here Draw your Diagram here