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Proposal of a New Process Capability Index Based on Dollar Loss by Defects

Seungwook Park (Inha University, College of Business Administration, Incheon, Korea)

Asian Journal on Quality

ISSN: 1598-2688

Article publication date: 17 April 2008



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 Cp, Cpk, and Cpm which are the most widely used process capability indices.



Park, S. (2008), "Proposal of a New Process Capability Index Based on Dollar Loss by Defects", Asian Journal on Quality, Vol. 9 No. 1, pp. 41-54.



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Copyright © 2008, Emerald Group Publishing Limited

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