Section 5 - Capability PDF

10/20/2019 Skillsoft Course Transcript
Course Transcript
Determining Process Performance and Capability

in Six Sigma
Course Overview
Read the Course Overview .
Process Performance and Capability Measurement

1. Process Performance and Specification
2. Process Capability and Performance Indices
Process Capability and Long-term Capability

1. General Process Capability Studies
2. Long-term and Short-term Capability
Capability for Non-normal and Attribute Data

1. Process Capability for Non-normal Data
2. Process Capability for Attribute Data
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Course Overview
The customer is always right – right? While this adage often gets interpreted to mean that whatever
the customer says goes, it actually has a much broader implication for your organization. Many
businesses have dozens if not hundreds of processes that operate with varying degrees of success.
No matter how well any process performs, no matter how little variation it produces, if it doesn't allow
you to deliver what your customers need, it's not giving you the results you require.
The process capability study is an important part of a Six Sigma initiative, in that it measures the
ability of a process to produce an end product that meets your customers' requirements. This
knowledge gives you a foundation for deciding where best to apply resources to improve processes
for both short- and long-term success, as well as customer satisfaction.
Process capability studies are done during the Measure phase of the Six Sigma DMAIC
methodology. Stages of the methodology – Define, Measure, Analyze, Improve, and Control – form a
roadmap that shows the way to process and performance improvement. The Measure phase
provides a methodology and tools – in addition to the capability study – for establishing a baseline of
current processes. This baseline is the starting point for process improvement.
The goal in Six Sigma is to bring the average of the process as close as possible to the target – the
customer's specifications – with the least amount of variation possible. The process capability study
helps to meet this goal by providing a method and tools for identifying your customers' requirements,
measuring the process's performance in meeting those requirements, and acting on the
measurements to improve the process. Tools used in a process capability study include capability
and performance indices, calculated from your data.
Select each set of indices to learn more.
Process capability
Process capability indices help you to understand and evaluate your processes by
measuring how capable they are in meeting customer requirements. Capability indices
include Cp, Cpk, Cr, and Cpm
Cpm.
Process performance
Process performance indices allow you to measure the current performance of a process.
Performance indices include Pp, Ppk, Pr, defects per unit (DPU), parts per million (ppm),
and defects per million opportunities (DPMO).
Process capability and performance measurements indicate the state of a process and its sigma
levels, and are vital tools in the DMAIC methodology.
This course will help you understand the requirements of a process capability study. It will show you
how to calculate and use capability and performance indices, and it will provide you with rules of
thumb for comparing your index values against optimum values to assess processes as capable,
capable with tight control, or incapable.
Ideally, process capability studies are only used with stable processes that have normally distributed
data. However, data rarely assumes a perfectly normal distribution. You'll often be faced with having
to assess capability for non-normal data. To help you with this, the course covers techniques for
working with data that isn't normal, as well as for working with discrete, or attribute, data.
Process Performance and Specification

Learning Objectives
After completing this topic, you should be able to
recognize how specification limits, process limits, and process spread help
determine process capability
calculate process performance using metrics for yield, defect, and sigma levels
1. Process performance vs. specification

The next page outlines the most recent updates to the Black Belt Body of Knowledge regarding
process performance and specification.
Question
Specification limits and process spread help determine process capability.
How do you use these elements to measure process capability?
Options:
1. Check that the process spread is within the specification limits

2. Calculate the specification limits using the process spread
3. Compare the actual process spread to the allowable process spread to
determine if a process is in control
4. Use the process limits to determine the specification limits and make sure they
match
Answer
Option 1: This option is correct. A process is capable when its natural variability or spread
falls within the specification limits.
Option 2: This is an incorrect option. The specification limits are based on customer
requirements, rather than the process spread.
Option 3: This option is correct. Process capability is the proportion of actual process
spread to the allowable process spread – specification limits determined by customer
needs and organizational priorities.
Option 4: This is an incorrect option. Specification limits are based on customer

requirements, rather than process limits. They don't necessarily match process limits
because process limits come from the voice of the process, not from customer
requirements.
Correct answer(s):
1. Check that the process spread is within the specification limits

3. Compare the actual process spread to the allowable process spread to determine if a
process is in control
2. DPU, DPMO, FTY, and RTY

Improving process performance is central to a Six Sigma initiative, and measuring is central to
performance improvement. Measuring your processes before, during, and after an improvement
effort provides objective data for evaluating whether your efforts have improved the process. The
Measure phase of the Six Sigma DMAIC methodology provides a vast array of measurement tools –
metrics – for just this purpose.
The core of Six Sigma quality control is the percent defective and its counter-measures. Shipping
defective products creates quality problems, but not shipping them causes loss to the manufacturer.
To avoid damaging the company's reputation, it's imperative to determine quality and percent
defectives before products are shipped.
Four basic metrics are used to help you measure defects and the probability of defects in your
products. From your Green Belt studies, you should be familiar with them:
defects per unit, or DPU

defects per million opportunities, or DPMO
first time yield, or FTY
rolled throughput yield, or RTY
Supplement
Selecting the link title opens the resource in a new browser window.
Refresh Your Knowledge
Access the content Key Performance Metrics to review DPU, DPMO, FTY, and RTY.
Question Set
Four basic, important metrics for assessing percent defectives are DPU, DPMO, FTY, and
RTY. You should be familiar with these metrics from your Green Belt studies.
Question 1 of 3
Question
Match process performance metrics to their definitions. Not all metrics will have a match.
Options:
A. Defects per unit (DPU)

B. Defects per million opportunities (DPMO)
C. Rolled throughput yield (RTY)
D. First time yield (FTY)
Targets:
1. Allows you to determine the average number of defects that exist when
observing a sample population
2. Provides information on the mathematical possibility that an organization will
produce defective products or services
3. Enables you to assess the yield of an entire operation on a cumulative basis
4. Measures a single process's capability of producing products that are free
from defects
5. Measures the amount of variation in a process
Answer
You should refresh your knowledge of these four process performance metrics. They are
vital to process improvement efforts.
Defects per unit (DPU) is a metric for determining the average number of defects in a
sample population. DPU is calculated by dividing the number of defects by the total number
of items.
Defects per million opportunities, or DPMO, provides information on the mathematical

possibility that an organization will produce defective products or services. DPMO is also
known as parts per million (ppm). The Six Sigma DPMO is 3.4.
Rolled throughput yield, or RTY, measures the capability of a multi-part operation to

produce products that are free from defects.
First time yield, or FTY, also known as first pass yield (FPY), measures a single process's
capability of producing products that are free from defects.
This definition has no match. RTY, FTY, DPU and DPMO measure the number and
proportion of defectives and nondefectives.
Correct answer(s):
Target 1 = Option A
Target 2 = Option B
Target 3 = Option C
Target 4 = Option D
Target 5 =No Option Specified.
Question 2 of 3
Question
One thousand pieces of equipment are being made for high school science classes. Using
the learning aid Science Equipment Question , calculate DPU and DPMO for the
equipment. Then match DPU and DPMO to their correct values. Not all values will be used.
Options:
A. DPU
B. DPMO
Targets:
1. 0.470
2. 58,750
3. 0.015
4. 0.059
Answer
You should refresh your knowledge of these process performance metrics. They are vital to
process improvement efforts.
DPU is calculated as defects divided by units. There are 470 defects (1(200) + 2(50) +
3(40) + 5(10) = 470) and 1,000 total units. The result is 470 / 1,000 = 0.470.
To find DPMO, you divide the number of defects (470) by the product of the total units
(1,000) and the opportunities per unit (8). This result is then multiplied by 1,000,000, for a
DPMO of 58,750.
This value has no match. It reflects calculating DPU by adding the values at the top of the
table (15) and dividing them by 1,000. There are actually 470 defects, calculated as 1(200)
+ 2(50) + 3(40) + 5(10) = 470.
This value has no match. It reflects dividing 470 by the product of the total units (1,000) and
the opportunities per unit (8). This would be correct except that this result must be
multiplied by 1,000,000 to get the DPMO.
Correct answer(s):
Target 1 = Option A
Target 2 = Option B
Question 3 of 3
Question
The inventory inspection process at a pharmaceutical company consists of three steps. For
100 new items, 5 units are rejected on the first step, 7 units are rejected on the second
step, and 3 units are rejected on the third step. Calculate FTY and RTY, and then match
them to their correct values. Round your results to three decimal places. Access the job aid
Process Performance Metric Formulas for assistance. Not all values will be used.
Options:
A. FTY
B. RTY
Targets:
1. 0.950, 0.926, 0.966

2. 0.850
3. 0.950, 0.930, 0.970
4. 0.857
Answer
You should refresh your knowledge of these process performance metrics. They are vital to
process improvement efforts.
The first time yield for the three steps are 0.950, 0.926, and 0.966. You remembered to
subtract the defective units from the total units before calculating FTY at the second and
third steps.
The RTY is equal to the product of the FTY values for each step: 0.950 x 0.926 x 0.966,
which equals 0.850.
This option has no match. To calculate the FTY for each step, you must subtract the
defective units. That is, the FTY for the first step is 0.950, but the FTY for step 2 is 0.921
based on 95 units received and 7 defects.
This option has no match. The calculation for RTY is incorrect because the underlying FTY
calculations are incorrect.
Correct answer(s):
Target 1 = Option A
Target 2 = Option B
3. Relationship of defect rates and yields

First time yield provides a measure of capability for a single step or process. But what about
operations with multiple steps or processes?
This is where rolled throughput yield, or RTY, comes in. As you know from your studies, RTY is a
cumulative calculation of yield or defects through multiple process steps. Rolled throughput yield
reflects the yield for an entire operation on a cumulative basis by rolling over the yield from one
process into the next. And RTY is a useful tool for identifying problematic steps in a process, or
problematic processes in an operation.
For instance, each step in this three-step process has a first time yield above 90%. Looking solely at
these numbers may lead you to think that the overall process is meeting your specifications.
However, rolling the yield from one process to the next reveals a very different picture. The rolled
throughput yield is only 84.9%, rounded to 85%.
Graphic
In this process, step 1 has an FTY of 95%. Step 1 rejects 5 products, sending 95 products
on to step 2. Step 2 has an FTY of 92.6%. It rejects 7 products and sends 88 products to
step 3. Step 3 has an FTY of 96.6% and loses 3 products to scrap or rework.
For example, a company that does rhodium plating on jewelry wants to calculate the rolled
throughput yield for a subprocess in its plating operation, which involves three steps. Select each
step in the process to learn more.
FTY1
The first time yield for the first step in the plating operation is 0.945, or 94.5%.
FTY2
The first time yield for the second step in the operation is 0.913, or 91.3%.
FTY3
The first time yield of the third step is 0.954, or 95.4%.
To calculate rolled throughput yield, you multiply the three first time yield values together and round
the final answer to three decimal places.
Graphic
0.945 times 0.913 times 0.954 is equal to 0.823 or 82.3%.
Yield and defect rate are the Six Sigma metrics that communicate how often things go right and how
often things go wrong. You need to be able to calculate and translate between the different yield and
defect rate measurements. You can do this mathematically, using some handy conversion formulas.
If you have a relatively low defect rate, for instance a DPU of less than 10%, you can mathematically
link the defect rate to the yield such that, if you know the DPU, you can simply calculate the FTY.
Graphic
The conversion formula is FTY equals the variable e raised to the power of negative DPU.
In the equation, e is a mathematical constant equal to 2.718. If a process has a DPU of 0.3, for
example, you can calculate that the FTY is 0.741, or about 74%.
Graphic
FTY equals 2.718 raised to negative 0.3, which equals 0.741 or about 74%.
The same conversion formula applies to RTY and total DPU.
Graphic
RTY is equal to e raised to the power of negative total DPU.
Given that FTY is equal to e raised to the negative power of DPU, it follows mathematically that DPU
is equal to the negative natural logarithm (ln) of FTY.
This means that, given the value of FTY, you can find DPU. This is easily done with a scientific
calculator. For example, if a process has an FTY of 0.9911, you can determine that the DPU is -
In(0.9911), or 0.00894. Again, the same equivalency holds true for RTY and total DPU.
Question
A welding process consists of three steps. The first time yield of the first step is 0.899; the
first time yield of the second step is 0.924; the first time yield of the third step is 0.878.
What is the total DPU for the welding process?
Options:
1. 0.729
2. 0.316
3. 2.701
Answer
First, calculate RTY by multiplying together the three FTY values. Then find the negative
natural logarithm of RTY. This is the total DPU.
Option 1: This option is not correct because it expresses the rolled throughput yield, not
the total DPU. The total DPU is equal to the negative natural logarithm of RTY.
Option 2: This option is correct. First, you multiply the three FTY values together, for an
RTY of 0.729. Then you find the negative natural logarithm for RTY; - ln(0.729) = 0.316.
Option 3: This option is not correct. To arrive at a value of 2.701, you add the three values
of FTY together. To determine total DPU, you first find RTY by multiplying the three FTY
values together. Then, find total DPU by finding the negative natural logarithm of RTY.
Correct answer(s):
2. 0.316
4. Process sigma
There is a mathematical relationship between yield and process sigma such that, once you know the
yield for a process (first time yield or rolled throughput yield), you can find the sigma value.
Here's how it works. Yield is the percentage of product that requires no rework. When you subtract
the yield from 1.0, you get the reciprocal, which is called the probability of a defect (P(d)). Probability
of a defect represents the proportion of product that is defective.
Once you know P(d), you can take the value to a z-distribution table and find the corresponding
process sigma value. Suppose you have a yield of 90.49%. By subtracting 0.9049 from 1.0, you get a
probability of defect of 0.0951. Finding this value on a z-distribution table and following it over to the
z-column gives you a z-value of 1.3, which is equal to the process sigma value.
Process sigma value tells you how many standard deviations you should be able to fit in the
specification limits for the process. For example, for a 3-sigma process, three standard deviations will
be able to fit between the lower and upper specification limits. Many six sigma practitioners believe
that a negative sigma is just a mathematical possibility and they are very unlikely occurrences in the
practical Six Sigma world.
However, a large number of Six Sigma experts believe that a negative sigma value signals the
presence of a very poor process. For normally distributed data, then, a negative sigma value would
mean that over 50% of the process output is defective, which is not a very plausible or common
scenario in the business world.
For purposes of this course, you will ignore the negative symbol and focus on the absolute value of
sigma.
Question
The first time yield of a process is 0.9864. Find the sigma value. You can access the
learning aid Z-Distribution Table to help you answer the question.
Answer
The formula is 1 - yield = P(d). Subtracting 0.9864 from 1.0 gives 0.0136, which is
equivalent to 2.21 sigma on the z-distribution table. Note that the course is focused on
absolute values for sigma, and the negative sign is disregarded.
Correct answer(s):
1. 2.21
A sigma value is a metric that communicates the ability of a process to perform defect-free work. The
higher the sigma value, the better the process is performing and the lower the probability that a
defect will occur.
As the sigma value of a process increases, depending on situations at hand - its costs, defects, and
cycle time - may decrease too.
The term Six Sigma means that, with six standard deviations on each side of the mean, nearly all
products will meet the specifications.
Ideally, a centered Six Sigma process has a mean that is equal to the target specification, and
specification limits placed six standard deviations to either side of the mean. Portions of the
distribution that are outside of the specification limits are 0.002 parts per million (ppm) of the data,
with a mere 0.001 on each side.
Suppose you work for a manufacturer that produces bearings. The outside diameters of your
bearings must be between 0.9780 and 1.1310 to be acceptable to your customers.
To test your process, you sample 200 bearings. You find that outside diameters range from 0.6890 to
1.450, and you determine the mean to be 1.070 with a standard deviation of 0.05.
These numbers fit a normal distribution. The area of the distribution under the curve and between the
vertical lines shows the percentage of yield that is within specifications. The shaded areas are the
percentages of diameters that are out of specification. These areas represent the probability of a
defect (P(d)).
To find the sigma value for the process, you need to know either the yield or probability of a defect. In
this example, you'll use P(d). First, you calculate the z-score for the upper specification limit. Subtract
the mean from the USL and divide that result by the standard deviation. The z-score is 1.22. Looking
for this value in the standard normal distribution table, you find this area equal to 11.12% of the
distribution.
Graphic
1.1310 minus 1.070 equals 0.061, which divided by the standard deviation .05 equals 1.22.
Next, you do the same calculation for the lower specification limit. Subtract the mean from the LSL
and divide by the standard deviation, giving a z-score of 1.84 (disregarding the negative sign).
Looking for this value in the standard normal distribution table, you find this area equal to 3.29% of
the distribution.
Graphic
0.9780 minus 1.070 is equal to negative 0.092, which divided by .05 is equal to negative
1.84, or 1.84 when you disregard the negative sign.
Now you add the two percentages together for determining the sigma level of the process.
Combining the calculated percentages out of specification (11.12 + 3.29) yields a result of 14.41%.
Since you know the probability of a defect of this process to be 14.41% or 0.1441, you look that value
up on the z-distribution table to find sigma. The closest value of sigma is 1.06. The P(d) value you
found is also 1 - the yield, meaning that yield for the process is 1 - 0.1441 = 0.8559 or 85.59%.
Question
The inventory replenishment process of a manufacturing company has a rolled throughput

yield of 0.9719. What is the sigma level? You can access the learning aid Z-Distribution
Table to help you answer the question.
Answer
To find the sigma level, subtract 0.9719 from 1 to get a P(d) value of 0.0281. Then, look up
0.0281 on the z-distribution table to find the absolute sigma value of 1.9.
Correct answer(s):
1. 1.9
2. -1.9
3. -1.91
4. 1.91
5. Summary
Six Sigma process performance must be weighed against the process specification. Certain process
limits are naturally present. They are determined as the upper (UPL) and lower (LPL) process limits.
However, these inherent process limits are separate from what the customer has specified. The
Voice of Customer, or the Voice of Business, is used to determine the upper and lower specification
limits, the USL and LSL. Process capability is assessed by comparing the current process
performance to the specification limits. There can be one of four results: on target, within spec; on
target, out of spec; off target, within spec; and off target, out of spec.
Process improvement – the heart of the Six Sigma initiative – depends heavily on measurements.
Key metrics that you'll use in the Measure phase of DMAIC include defects per unit (DPU), defects
per million opportunities (DPMO), first time yield also known as first pass yield (FTY or FPY), and
rolled throughput yield (RTY).
Rolled throughput yield is especially helpful because it provides an accurate picture of a group of
related processes. Whereas examining each FTY in a process can be misleading, the RTY shows
the amount of defect that is likely to occur throughout the combined processes. It can help you
identify processes that need improvement.
Because these metrics are related mathematically, you can use the values of yield to calculate
defects per unit and vice versa. There is also a mathematical relationship between yield and sigma
level. Once you know the yield for a process (FTY or RTY), you can find the sigma level. For a
normally distributed process, the sigma level is equal to the z-score of the proportion of products that
are out of specification.
Process Capability and Performance Indices

Learning Objective
use appropriate process capability and performance indices to assess a given
process
1. Capability indices Cp and Cpk

To determine how well your processes meet customer requirements, you perform a process
capability study. Before undertaking the study, however, you have to make sure of two things: your
process must be stable over time, and your data must fit a normal distribution. If both conditions are
met, you can calculate process capability indices. These indices enable you to assess and
compare conformance to process limits with conformance to specification limits.
Select each process capability index to learn more about it.
Cp
Cp is a ratio of the allowable process spread – the specification spread – to the actual
process spread.
Cpk
Cpk is a ratio of the same elements, but unlike Cp, Cpk makes an adjustment for a
noncentered distribution of data.
To calculate Cp, you subtract the lower specification limit (LSL) from the upper specification limit
(USL) and then divide the difference by 6 times sigma, or the standard deviation.
For sigma, you'll often use an estimate of the population's standard deviation calculated from a
sample of process data, since you likely won't have enough data to describe the entire output of a
process.
A Cp equal to one or more means that the natural limits of the process fit within specification limits,
and the process is capable.
There are some handy rules of thumb for interpreting Cp values. Select each Cp value to learn what
it signifies.
>1.33
There's no standard for a good Cp value, but many organizations require a Cp of 1.33 or
above. This value signifies that the process comfortably meets specification limits; it
corresponds to 0.0064% or 64 ppm out of specification.
1 to 1.33
A Cp between 1.0 and 1.33 is capable with tight control. When a process has a spread
that's about equal to the specification width, any slight movement of the mean off center
means that a significant portion of products will be outside a specification limit. Such a
process must be closely monitored.
<1
A process with a Cp less than 1 is not capable of producing a product or service that meets
customer specifications.
When using Cp to assess process capability, you need to be aware that although Cp may indicate a
process is capable, Cp doesn't consider the process center. An uncentered process can have a
favorable Cp, and yet not meet customer specifications.
Graphic
In this distribution, the process spread is less than the specification spread, so the process
is capable. But the process limits fall outside of the specification limits, indicating the
process does not meet customer specifications.
A second metric, Cpk, does the same thing as Cp, except it does consider centering and spread. To
calculate Cpk, you calculate two different values, and then compare them. First, subtract the mean
(Xbar) from the upper specification limit and divide the result by three times the estimated standard
deviation (3 sigma). Then, subtract the lower specification limit from the mean and divide that result
by three times the estimated standard deviation. The lower result in the two calculations is Cpk.
Why do you use the lower result? Because Cpk focuses on the point at which the specification is
closest to the process mean. Measuring the distance from the mean to the closest specification limit
and calculating it as a proportion of the spread produces a more accurate picture of process
capability. Dividing by three times sigma accounts for half of the total of six standard deviations that
were used previously in determining Cp.
Traditionally, a Cpk of 1.0 or greater has been considered capable, signifying that the process limits
lie within specification limits.
However, quality requirements have tightened up in recent years, and many organizations require
Cpk values of 1.33, 1.67, or even 2.0, based on customer requirements. These values are equivalent
to 4, 5, and 6 sigma respectively.
Capability and sigma are linked. If your process is stable and normally distributed, you can use a z-
distribution table to convert Cpk (or Cp for a centered process) into a sigma metric for both short-term
and long-term values.
Graphic
This table shows the conversion between Cpk values, z scores, parts per million, and sigma
levels.
For instance, you can determine sigma values for a Cpk of 1.33, 1.67 or 2.0.
Supplement
Job Aid
Access the job aid Process Capability Conversion Table any time you need a reference
for converting process performance values to sigma metrics.
Cp will always be greater than or equal to Cpk. Based on experience in the real Six Sigma world, a
process must have a Cp of at least 2.0, a Cpk of at least 1.5, and defects per million opportunities
(DPMO) of 3.4 or less to reach Six Sigma quality.
Supplement
Access the content Process Capability to review the meaning and interpretation of Cp and
Cpk.
Question
This histogram describes the data in a manufacturing process. Which statements are true
of the process it represents?
The specification limits are 15.4 and 15.75. The process limits are 15.9 and 16.1. Data is
normally distributed.
Options:
1. The process is capable

2. The process is within specifications
3. The process is centered
4. The Cp value is likely to be over 1.0
Answer
Option 1: This option is correct. Although the process spread is not centered, it would fit
between the specification limits, meaning that Cp is greater than 1.0 and the process is
capable.
Option 2: This option is not correct. To be within specifications, the process spread would
have to be between the LSL and USL.
Option 3: This option is not correct. A centered process is one whose process spread is
centered between the specification limits, LSL and USL.
Option 4: This option is correct. This process spread fits within specification limits, so its
Cp is likely to be greater than 1.0.
Option 5: This option is incorrect. A value of 1.33 represents a relatively centered process.
Because this process is not centered between LSL and USL, Cpk will be less than 1.33.
Correct answer(s):
1. The process is capable

2. Capability ratio and Cpm

Another way to express process capability is with the capability ratio, or Cr. The capability ratio is the
reciprocal of the capability index Cp; it's calculated by dividing one by the Cp value. The capability
ratio offers the same information as Cp does, only from a different perspective.
As with the other capability indices, there are some rules of thumb for interpreting Cr. Select each
capability ratio to learn more.
< 0.75
Lower values of the capability ratio are better. A capability ratio less than 0.75 signifies the
process is capable. Note that if you divide 1 by 0.75 to calculate Cp, the result is 1.33, the
traditionally accepted good Cp value.
0.75 - 1.0
A capability ratio of 0.75 through 1.0 is capable with tight control, meaning that the process
bears watching, since small shifts could render the process not capable.
> 1.0
A capability ratio greater than 1.0 is not capable of consistently meeting customer
specifications.
Suppose you work for a manufacturing company. Specifications for a machine slot are 0.5 inches
plus or minus 0.003 inches. You need to determine the capability of the process to produce slots of
this dimension, and you decide to use the capability ratio.
The process mean is estimated to be 0.501, and the standard deviation is 0.001. You calculate Cp as
0.55 by subtracting the upper specification from the lower specification limit and dividing the
difference by six times sigma. Then, you calculate Cr by dividing 1.0 by 0.55 for a value of 1.818.
With a Cr greater than 1, you conclude that your process is not capable. Note that you could find Cr
without finding Cp first by simply inverting the Cp formula to calculate Cr.
Question
What is the Cr value if Cp is 1.26? Express your answer as a decimal rounded to two
decimal places.
Answer
To calculate Cr from Cp, simply divide 1 by the value of Cp for a result of 0.79. This value
shows the process is capable with tight control, since Cr is greater than 0.75 but less than
1.0.
Correct answer(s):
1. 0.79
2. .79
In some cases, Cp and Cpk may not adequately address process centering. For instance, a
customer may want to have data clustered more closely around a target specification rather than
around the process average. To measure this, you use the Cpm index, which was devised by Genichi
Taguchi.
The Cpm index, also called the Taguchi Loss Function, measures the amount of loss resulting from
variation when processes are within specification but not centered adequately around the target. The
function demonstrates how the amount of loss increases the farther you go from the target, even
though the process is within specifications.
Graphic
The Taguchi Loss Function is shown as a parabola, the reverse of a normal distribution.
The parabola shows that loss increases the farther from the target you go.
The Taguchi Loss Function demonstrates why you should strive to continually improve conformance
to target, as opposed to conformance to specification. Because it is more sensitive to target, when
the process is not on target and the target is not in the middle of the specification limits, Cpm will be
less than Cpk, which itself is less than Cp.
The Six Sigma team at a smoke detector manufacturer determines that the sensor manufacturing
process is very capable with a high Cp value. Shari, the process owner, wants a highly sensitive
product with a quicker response time, so she wants to determine the capability of the process around
the target 0.16 as opposed to the process average of 0.18. She needs to use the Cpm index.
Graphic
The formula for the Cpm index is C subscript pm equals the upper specification limit (USL)
minus the lower specification limit (LSL) divided by the result of six multiplied by the square
root of the result of the process mean (μ, pronounced mu) minus the Target value (T), all
squared, added to the process standard deviation (σ or small sigma) squared. This can be
evaluated using the formula: C subscript pm equals USL minus LSL divided by the result of
6 times the square root of the result of mu minus T, all squared, added to small sigma
squared.
The USL and LSL of the product are 0.25 and 0.05 respectively. The process average is 0.18 with a
standard deviation of 0.02. Shari wants to adhere to the best-in-class target of 0.16.
Narrator: First, Shari substitutes values into the formula and

subtracts the LSL from the USL.
USL minus LSL equals 0.25 minus 0.05, which is 0.20.
Narrator: Next, she subtracts the target value from the process
average and squares the result. She squares the standard
deviation and adds the result to the previous result for a
total of 0.0008.
0.18 - 0.16 = 0.02 squared = 0.0004.
Sigma squared is equal to 0.02 squared, or 0.0004.
0.0004 plus 0.0004 equals 0.0008.
The square root of 0.0008 is equal to 0.028 when rounded to
three decimal places. 0.028 times 6 equals 0.168.
Narrator: Last, she divides the specification spread, 0.20, by

0.168 for a Cpm value of 1.19.
The ideal Cpm value depends on the industry and the nature of the business the organization is in. A
Cpm of more than 1 is preferred, and many manufacturing companies like the Cpm to be in the range
of 1.5. With a Cpm of 1.19, Shari considers her process to be roughly within her manufacturing
organization's guidelines.
Question
Match each metric to its appropriate descriptions. You may use each metric more than
once.
Options:
A. Cr
B. Cpm
Targets:
1. The reciprocal of Cp
2. Devised by Taguchi
3. Focused closely on center and target
4. A value less than 0.75 is acceptable
Answer
The capability ratio, or Cr, is the reciprocal of Cp. It provides the same information about
capability as Cp, only from a different perspective.
Taguchi devised a metric that came to be known as Cpm,

Cpm used to determine variation
between the process average and a target value.
Cpm is focused closely on the center and the target. The capability ratio, like Cp itself, does
not take the process center into account.
A capability ratio less than 0.75 is acceptable. The value of 0.75 is equivalent to a Cp value
of 1.33, which is a benchmark or industry standard.
Correct answer(s):
Target 1 = Option A
Target 2 = Option B
Target 3 = Option B
Target 4 = Option A
Capability indices Cr and Cpm are related metrics that lie next to Cp and Cpk in the process analyst's
toolkit. The capability ratio, or Cr, is another way of looking at process capability. It's the reciprocal of
the capability index and provides the same information as Cp – that is, it will tell you whether the
process is capable, but not whether it's centered.
You'll use the Cpm index to assess the ability of a process to center around a target rather than
around the process average.
Question
You've worked hard to improve the capability of a wood-planing process. Now you want to
assess the process to see whether it varies significantly from the target of 144.0. The USL
is 147.0 and the LSL is 135.0. The process average is 141.0, with a standard deviation of
3.0. First, determine which index you will use, and then calculate the value. Access the job
aid Process Performance Metric Formulas as a reference when answering this question.
Options:
1. Cpm = 0.471
2. Cp = 0.667
3. Cr = 1.499
Answer
The index you need is Cpm,

Cpm which will tell you how far from the target your process is.
Option 1: This option is correct. The Cpm index will tell you how far from the target your
process is. In this case, a Cpm index of 0.471 indicates the process does not vary
significantly from the target.
Option 2: This option is not correct. The index you need is Cpm
Cpm, not Cp. You want to find
out how much your process varies from the target.
Option 3: This option is not correct. The capability ratio gives the same information as the
capability index (Cp). What you need here is a calculation of Cpm to find out how far from
the target your process is.
Correct answer(s):
1. Cpm = 0.471
3. Process performance indices

Capability indices are useful for forecasting potential short-term capability for stable processes that
remain within control limits. But what if you need to find out how capable your processes actually are,
right now?
For this, you use process performance indices, Pp and Ppk. These indices measure the actual
performance of a process in meeting customer specifications. Both indices are calculated based on
extensive sampling that includes special cause as well as common cause variation. Unlike process
capability indices, a state of statistical control is not a requirement for process performance indices.
Since Pp and Ppk include all kinds of variation, they are more reliable indices for assessing long-
term, as well as actual, process performance.
The relationship between Pp and Ppk is similar to that of Cp and Cpk. Pp determines the range of a
process's variation with respect to customer specifications. It doesn't take centering into account.
Ppk, like Cpk, determines performance in relation to customer specifications and accounts for
process centering and spread.
Question
You should be familiar with the differences between capability and performance indices
from your Green Belt studies. Match process capability and performance indices to
descriptions of how they are used. Each index may match to more than one description,
and each description may receive more than one match.
Options:
A. Pp
B. Ppk
C. Cp
D. Cpk
Targets:
1. Use long-term population data that may exceed control limits

2. Measure the distance between the mean and the nearest specification limit
3. Consider only common cause variation
4. Measure the potential capability of a process in the short term
Answer
Performance indices Pp and Ppk both use actual performance data that may exceed
control limits, unlike Cp and Cpk which use data within control limits.
Cpk and Ppk account for the center of the data by measuring the distance between the
mean and the nearest specification limit.
Cp and Cpk consider only common cause variation, whereas Pp and Ppk consider both
special and common cause variation.
Process capability indices, Cp and Cpk, both assess how capable a process is in meeting
customer specifications over the short term. Since the data includes only common cause
variation, the capability indices won't hold up over the long term when process drift comes
into play.
Correct answer(s):
Target 1 = Option A, Option B
Target 2 = Option B, Option D
Target 3 = Option C, Option D
Target 4 = Option C, Option D
Capability and performance measures, like sigma, are ratios. They have no units. This makes them
useful when you want to compare different processes.
Suppose you want to compare three processes to find out which one is the most capable. Sales,
shipping, and manufacturing are measured in dollars, time, and yield respectively, so you can't
compare them that way. However, you can calculate their sigma values, and compare them to find
that shipping is the most capable process, with manufacturing and sales following.
Graphic
Sales, shipping, and manufacturing can be compared via their sigma levels. Sales has a
capability of 1 sigma, shipping has a capability of 4 sigma, and manufacturing has a
capability of 3.7 sigma.
The process performance index, or Pp, is calculated the same way as Cp, except for the value of
standard deviation, which reflects long-term sigma, rather than short-term sigma. To calculate Pp,
subtract the lower specification limit from the upper specification limit and divide the difference by six
times the sigma long term, which is the standard deviation in the long term.
This value is called sigma long term because it represents both common and special cause
variation, indicating that the sigma value will hold true over the long term. To determine sigma long
term, you calculate population standard deviation using the usual formula: take the square root of the
sum of the squared differences of the observed values from the mean, divided by the number of
samples minus one. This value is then multiplied by six to produce the denominator of the Pp
calculation.
Like Cp, Pp does not take centering or spread into account. However, the process performance
capability index, or Ppk, does. The formula for calculating Ppk is (USL - Xbar) / 3 sigma or (Xbar -
LSL) / 3 sigma. Follow along to learn how a calculation is done.
The first step is to find the differences between the

specification limits and the mean by subtracting the mean from
the USL and subtracting the LSL from the mean.
Then you divide each of the results by three times the

estimated standard deviation. The lower of the two numbers is
the performance index.
The higher the Pp and Ppk values, the more stable and capable the process. To interpret the results
in relation to Pp, you compare the Ppk value with the Pp value. If Ppk and Pp are virtually the same,
the process is considered centered.
If Ppk is less than Pp, the process average is off the specification target and closer to the
specification limit. Most organizations require a Pp of at least 1.33. Six Sigma performance requires a
Ppk of at least 1.5.
Another way of looking at process performance is with the performance ratio, or Pr. The performance
ratio is the reciprocal of Pp, and is calculated by dividing one by Pp. The performance ratio provides
the same information as Pp, only in a different format.
The lower the performance ratio, the more capable the process. A Pr of 0.75 is equivalent to a Pp of
1.33 and means the process is capable. A Pr of 0.75 to 1.0 means the process is capable with tight
control. A Pr greater than 1.0 means the process is not capable.
Supplement
Access the content Process Capability to review information about Pp and Ppk.
Question
Now you want to determine how your wood-planing process is performing over time. You've
calculated the USL as 147.0 and the LSL as 135.0. The process average is 141.0, with a
standard deviation of 3.0. First, determine which index you will use, calculate the value, and
type your answer. Round your answer to two decimal places. Access the job aid Process
Performance Metric Formulas for reference.
Answer
As the process is centered between the two specification limits, Pp and Ppk values will be
equal. To calculate Pp, you must find the difference of USL-LSL and divide by 6 times
sigma, which is 0.67. A Pp value of 0.67 indicates the process is not performing very well in
relation to its specification limits.
Correct answer(s):
1. 0.67
2. .67
4. Summary
An important objective of the Measure phase of the DMAIC process assessment. Six Sigma provides
an array of indices for this purpose.
Capability indices, Cp, Cpk, Cr, and Cpm,

Cpm enable you to calculate how potentially capable your
processes are over the short term. These indices are used with stable processes whose data fits a
normal distribution. Capability indices can be converted to sigma values using a z-distribution table.
Process performance indices Pp, Ppk, and Pr are calculated using both common cause and special
cause variation. As such, these indices reveal the actual performance of a process that is not
necessarily in the state of statistical control over time. Most organizations require a Pp of at least
1.33. Six Sigma performance requires a Ppk of at least 1.5.
General Process Capability Studies

Learning Objectives
identify suitable approaches for identifying characteristics, tolerances, and
specifications in a process capability study
match methods of testing normality to their descriptions
1. Goals and steps of a capability study

In order for you to truly know if a process needs improvement, you need to know how capable it is. A
process capability study measures the extent to which processes can create end products that meet
customers' requirements.
A process capability study has a number of different steps you can follow. Although, their order may
vary based on your organization's guidelines.
Select each step to learn more about it.
Identify key characteristics, specifications, or tolerances

Often, the first step in a study is to identify the characteristics you'll measure and their
appropriate specifications or tolerances.
Verify stability and normality
The capability testing process assumes that your data is stable and normal, and you must
test your process to verify these conditions.
Develop sampling plans and gather data
A good sampling plan is important to ensure that you and your team gather a
representative sample of data to use for calculations.
Calculate capability and sigma levels
With the data you've gathered, you calculate capability and performance indices, and
sigma levels.
Make recommendations for process improvement
Based on your calculations, you decide what to do. If the process is capable, no further
action is needed. If the process is not capable, you must investigate the cause and take
corrective action.
2. Capability study parameters

At the beginning of your process capability study, you'll identify key characteristics, specifications,
or tolerances.
There are guidelines to help you choose the right characteristics. Select each guideline to learn
more.
Characteristics must be key factors in producing quality

You should choose characteristics that have a direct impact on quality. These are also
known as the critical-to-quality (CTQ) characteristics, the vital few, key process output
variables (KPOVs), or key process input variables (KPIVs).
Characteristics should have an adjustable value
You should choose characteristics whose measured value can be adjusted within the given
specification range.
A manageable number of characteristics should be selected
In theory, every characteristic should be included in a capability study. In practice, you can't
study everything. Pare down your selections to the vital few. Often, these will be the ones
that have a history of difficulty meeting the specification. Also, if a process or part has
many dimensions, select a small number of them to study.
Operating conditions that affect a characteristic must be defined and controlled
General operating conditions such as heat, light, noise, and parameter setting can affect
process capability. Identify all such conditions and plan to bring them under control.
Your customers also have a voice in determining which characteristics are most important, and
industry standards often mandate them.
As you identify characteristics, you must also identify specifications or tolerances. These are
usually established by customer requirements, industry standards, or by your own Engineering
Department or organizational strategy.
A specification consists of the ideal measure for the product plus the tolerance. These values are
normally determined during development, as ways to ensure that products are assembled with
required fitness to perform their functions with minimal adjustment.
Specifications are important to customers. If specifications are too tight and unrealistic, however,
many potentially acceptable outputs can be rejected. While process improvement teams have little or
no control over specifications, the concerned department may be able to negotiate relaxing the
specifications with the customer. In any case, a close monitoring of the process is recommended,
until you find out what might be causing problems and work to make the process more capable.
Question Set
An important element of a process capability study is identifying characteristics,

specifications, or tolerances.
Question 1 of 2
Question
What are four guidelines for choosing the right characteristics in a process capability study?
Options:
1. The characteristics should be based on customer requirements or industry

standards
2. The characteristics should have adjustable values
3. The operating conditions that affect a characteristic should be defined and
controlled
4. Only the vital dimensions should be selected
5. Larger parts should be chosen, since they are often more variable than
smaller parts
6. Relaxing the specification limits, so that fewer products are found defective, is
a good idea for increasing process capability
Answer
Option 1: This option is correct. Identifying key factors enables you to focus on the
dimensions that have the most impact on the overall process or end product.
Option 2: This option is correct. You should choose characteristics whose measured value
can be adjusted within the given specification range.
Option 3: This option is correct. General operating conditions such as heat and noise can
affect process and product quality. You should identify all of these conditions, so you can
bring them under control.
Option 4: This option is correct. Don't get bogged down. Limit your study to vital
dimensions that are key to process quality or have a history of difficulty holding to
specification.
Option 5: This option is not correct. Variation does not depend on the size of the parts.
Option 6: This option is not correct. Relaxing the specification limits is hardly an option for
the production team, as they are based on customer requirements, industry standards, or
your own organization standards.
Correct answer(s):
1. The characteristics should be based on customer requirements or industry standards

2. The characteristics should have adjustable values
3. The operating conditions that affect a characteristic should be defined and controlled
4. Only the vital dimensions should be selected
Question 2 of 2
Question
Which four statements are true about identifying specifications or tolerances for a process
capability study?
Options:
1. If specification changes can't be negotiated, an organization should conduct a

complete inspection of the process
2. Specifications or tolerances may be mandated by industry standards
3. Specifications and tolerances may be determined by the Engineering
Department
4. Specifications or tolerances may be determined by customer requirements
5. Industry standards may be negotiated if the specifications or tolerances are
too tight
6. Specification changes often reduce variability and make a process capable
Answer
Option 1: This option is correct. If the customer doesn't agree to change a specification, a
complete inspection of the products must be done, until causes for defects are identified
and the process is made capable.
Option 2: This option is correct. Many specifications are standardized across an industry.
Option 3: This option is correct. Engineering typically sets specifications and tolerances
during the development phase based on organizational goals.
Option 4: This option is correct. Many times customers require particular specifications, in
order to beat the competition, for instance.
Option 5: This option is not correct. Industry standards cannot be negotiated like
specifications can.
Option 6: This option is not correct. Changes can reduce scrap or rework, but may or may
not affect variability or process capability.
Correct answer(s):
1. If specification changes can't be negotiated, an organization should conduct a complete

inspection of the process
2. Specifications or tolerances may be mandated by industry standards
3. Specifications and tolerances may be determined by the Engineering Department
4. Specifications or tolerances may be determined by customer requirements
3. Verifying normality
In addition to identifying key characteristics, you must also verify your proccess's normality.
If your process isn't normal, a capability study can produce undesirable results, such as the following:
misinterpretation of special cause patterns on control charts

misleading assessment of process capability due to incorrect statistical results for yields, Cp,
Cpk, and sigma levels
incorrect assessment of alpha and beta risks associated with confidence intervals,
acceptance sampling plans, and hypothesis tests
misidentification of process parameters as important or unimportant for desired results
You can use a number of methods to assess normality:
a histogram
a comparison of data statistics with the properties of the normal distribution
goodness-of-fit tests like the Kolmogorov-Smirnov, and Anderson-Darling tests
A simple test for normality is a histogram. This is a visual representation of the frequency distribution
of your data. You can use this as a quick, visual check on whether your data is normally distributed.
Graphic
This histogram is a vertical bar chart that plots data points on a scale of 10, 15, 20, 25, 30,
35, and 40. The data forms a normal curve.
Another simple normality test involves comparing your data with properties of the normal curve.
There are three simple tests you can conduct. Select each one to learn more about it.
Compare the mean, median, and mode

If the mean, median, and mode of your data are equal to each other, your data is likely to
be normal.
Divide the interquartile range by the population standard deviation

Calculate the interquartile range (IQR) for your data and divide it by the population
standard deviation – or the sample standard deviation, if the sample is large. The IQR is
the distance between the 25th and 75th percentile. If the result is approximately 1.33, your
data is likely normal.
Compare the range of your data to the normal distribution

Approximately 68.27% of your data values should fall within +/- 1 standard deviation from
the mean, 95.45% should fall within +/- 2 standard deviations from the mean, and 99.73%
should fall within +/- 3 standard deviations from the mean.
Goodness-of-fit tests are commonly used in normality testing. A number of tests are available to
you, but two of them are the most common:
Kolmogorov-Smirnov test
Anderson-Darling test
Select each goodness-of-fit test to learn more about it.
Kolmogorov-Smirnov test
With the Kolmogorov-Smirnov test, the distribution of the test statistic is independent of the
underlying cumulative distribution function being tested. However, the test applies only to
continuous distributions, and the distribution must be fully specified; it can't be estimated
from the data.
Anderson-Darling test
The Anderson-Darling test is a powerful modification on the Kolmogorov-Smirnov test.
Anderson-Darling is especially effective in detecting departures from normality that occur in
the tails of the distribution.
The test for normality involves hypothesis testing, which is done with statistical software. The
software returns a p-value statistic that represents the probability that you might be wrong to reject
the assumption of normality about the dataset. You compare the p-value with a predetermined risk
level – alpha – to determine whether to reject or not reject the assumption of normality.
Whereas histograms, probability plots, and goodness-of-fit tests are examples of how to verify
normality, measures of skewness and kurtosis are examples of how to verify non-normality in the
data distribution.
Normal data is symmetrical around the mean. When data is not distributed symmetrically, it is said to
be skewed. Data distribution curves showing any of these characteristics will not be considered
normal distribution.
If the distribution has a long tail to the right and a concentration of the mass on the left side, the
distribution is skewed to the right, or positively skewed.
On the other hand, if the distribution has a long tail to the left and a concentration of the mass on the
right, the distribution is skewed to the left, or negatively skewed.
Kurtosis measures the concentration of data values in the center of a distribution as compared to
the tails. Kurtosis is sometimes referred to as an index of flatness, or as a measure of tail heaviness.
Distributions with high kurtosis relative to normal distribution tend to have a thin peak near the mean,
decline rather rapidly, and have heavy tails. Distributions with relatively low kurtosis relative to normal
distribution tend to have a flat top near the mean rather than a sharp peak, decline rather slowly, and
have light tails.
The kurtosis formula is complex, involving the differences around the mean raised to the fourth
power. Tests for kurtosis and for skewness are done with statistical software.
Graphic
Kurtosis is the average of the fourth power of the distribution's deviation from the mean,
divided by the standard deviation, to the fourth power, minus a correction of 3.
A useful rule of thumb is that data distribution is normal if the skewness and kurtosis measures are
between -2 and +2.
Question
Match normality tests with their descriptions. Not all normality tests will be used.
Options:
A. Kolmogorov-Smirnov test
B. Comparison of descriptive statistics to the normal distribution characteristics
C. Histogram
D. Measures of skewness and kurtosis
Targets:
1. A goodness-of-fit test for normality of population data

2. A comparison of your data statistics with the corresponding statistics based on
the bell-shaped curve
3. A graphical representation of data values and their frequency
Answer
With the Kolmogorov-Smirnov test, the distribution of the test statistic is independent of the
underlying cumulative distribution function being tested.
Comparing statistics calculated from your data with those calculated from a normal
distribution indicates whether your data could come from a normal distribution.
Histograms are the visual representation of data values and their frequencies and help
identify if the data is normally distributed.
Correct answer(s):
Target 1 = Option A
Target 2 = Option B
Target 3 = Option C
4. Verifying process stability

Another element in the capability study involves verifying the stability of the process. The
common way to assess process stability is with control charts.
To interpret a control chart, you must know its components. Select each component to learn more
about it.
UCL
The upper control limit, or UCL, is typically three standard deviations above the center line.
LCL
The lower control limit, or LCL, is three standard deviations below the center line.
Target (center line)
The target, or center line, represents the mean value for the process when it's in control.
This is the value around which you want the data points to cluster.
Control limits are determined by the process itself in a way that if the process is in control, nearly all
of your data points will cluster around the center line and fall between the UCL and LCL. Data points
falling between the limits and the center line represent common cause variation inherent in all data
samples. Data points falling outside the control limits indicate special cause variation, and also that
the process is unstable.
Both of these control charts show stable processes. Can you tell why the processes are considered
stable? Variation centers around the target, and all of the data points are well within the control limits.
Supplement
Access the content Understanding Variation to review the types of variation inherent in
data.
In control charts, certain nonrandom sequences of data points indicate the presence of out-of-control
conditions. Select each condition to learn more.
Trend
Six or more consecutive data points in a row, in either direction, indicate a trend.
Spike
A spike occurs when a data point goes above the UCL or below the LCL. It is also defined
by two data points that fall just within either control limit. Spikes indicate the presence of
special cause variation.
Cycle
A cycle occurs when 14 or more consecutive data points show alternating higher and lower
values, in a "sawtooth" pattern.
Shift
A shift is indicated by eight or more data points that fall consecutively on one or the other
side (not both) of the center line. A shift has a ragged, sawtoothed appearance, and can
result from changes in the equipment, methods, or materials or a shift in the measurement
system.
For a control chart to be a useful diagnostic tool, you must capture any out-of-control conditions that
are in your process. You do this by plotting a sufficient number of data points. A good rule of thumb is
to plot between 20 and 30 data points.
As noted earlier, control charts are used to determine process stability over time. The Xbar and R
control chart is one of the most frequently used control chart types for continuous data. It shows
variation from the mean and the range of your data.
Observe the Xbar and R control charts for the process. If the data points are clustered around the
center line, the process is said to be in control.
On the other hand, if there are data points outside the limits, then the process is said to be out of
control.
Question
Which control charts are indicative of out-of-control conditions?
Six selectable control charts are displayed.
Options:
1. A spike in data values beyond the UCL

A control chart with a data point above the UCL.
2. A cluster of data points around the target
A control chart with data points that are within the control limits; there are no
nonrandom sequences of data points.
3. A random sequence of data points
A control chart with data points inside the control limits and without
nonrandom sequences of data points.
4. A shift in data values
A control chart with eight data points falling consecutively on one side of the
center line.
5. A trend in data values
A control chart with six data points leading upward in sequence.
6. A cycling of data values
A control chart that shows 14 data points alternating higher and lower.
Answer
Option 1: This option is correct. The data point above the UCL indicates the presence of
special cause variation.
Option 2: This option is not correct. Data points center on the target, with no nonrandom
sequences to indicate an out-of-control condition.
Option 3: This option is not correct. There are no nonrandom sequences, data points
center on the target, and there are no spikes to indicate special cause variation.
Option 4: This option is correct. Eight or more data points that fall consecutively on one or
the other side (not both) of the center line indicate a shift.
Option 5: This option is correct. Six data points heading upwards or downwards illustrates
a trend.
Option 6: This option is correct. Fourteen points alternating higher and lower in a sawtooth
pattern constitute a cycle.
Correct answer(s):
1. A spike in data values beyond the UCL

4. A shift in data values
5. A trend in data values
6. A cycling of data values
Early in a process capability study – usually after verifying the stability and normality of the process –
you and your team start developing a sample plan and gathering data. Since this data will serve as a
basis for your statistics, it's essential that you gather a good, representative sample. Often, teams
stop data collection too soon, and produce misleading calculations.
To help you avoid this, it's good practice to take at least 50 samples.
When in doubt, take a cumulative average of your samples. When the average begins to flatten out,
you've probably got enough data.
For processes that are currently running and in control, you can use your original control chart data to
estimate standard deviation and calculate process capability indices. For processes that contain
special cause or long-term variation, though, you'll need to collect additional sample data.
The point of any sampling plan is to ensure that your sample accurately represents the larger
population. If your process is stable and normally distributed, you can use the original control data
from currently running processes as your sample.
However, you must be sure to capture seasonal variations, as well as any problems and special
cause variation.
And you may need to plan for collecting data over a long period of time to capture long-term
variation.
After calculating and analyzing capability and performance indices, you need to decide what to do.
Your recommendations can take several forms, including the following:
do nothing
change the specifications, if the customer allows it
center the process
reduce variability
accept the losses and prepare for handling scrap and rework
Is "Do nothing" really a legitimate option? Sure it is. If you find that your indices are within optimum
ranges, and the process limits are within specification limits, the process is capable. Unless your
customer requires a higher sigma level, your decision to do nothing is appropriate.
Another possible recommendation is to change the specifications. Specifications that are too tight
create excess scrap and rework. Whether you can change specifications really depends on the
customer. If the customer allows it, you may be able to negotiate more relaxed specification limits.
Otherwise, you'll need to do a full inspection of the process to determine how to make it capable.
Another possible recommendation is to center the process. Here's an example.
Suppose a manufacturer is conducting a capability study on glass used for welders' goggles. The
glass must have the right amount of tint to protect the welders' eyes. Too much tint, and welders can't
see what they're doing and may burn themselves. Too little tint, and the welders' eyes could be
damaged. In this case, centering on the target – the right amount of tint – is critical. Using data you
gathered from 100 samples, you calculate the indices.
A Cp of 1.5 would indicate the process is adequate, as long as it's centered on the target. However,
this manufacturer's Cpk of 1.17 and Cpm of 0.883 reveal the process is not centered on the target.
The manufacturer is producing glass within specifications but consistently below target. The glass
allows a little more light in rather than being a bit darker. In this situation, you recommend centering
the process to bring the process back in line with the target and the specification limits.
Another recommendation you might make is to reduce variability. This option is the most difficult
and costly to implement, as it may involve experimental designs and long-term studies.
Another recommendation that you could make as a result of a process capability study is to accept
the losses. This option is similar to "do nothing," but doing nothing usually applies to a capable
process that is performing at specification levels.
An organization might choose to accept the losses when it would be more expensive to fix the
problems than it is to live with them. You make this recommendation based on a careful cost-benefit
analysis.
5. Summary
A process capability study measures the capability of your processes to create end products that
meet customer requirements. You often begin by identifying the critical-to-quality characteristics, and
their specifications and tolerances. These are the characteristics that you'll study.
A capability study assumes data is stable and normal, so it's important for you to verify your
process's stability and normality. You can verify stability with control charts. Plotting 20 to 30 data
points gives you a good basis for finding special cause variation as well as anomalies such as trends,
spikes, cycles, and shifts.
You can verify data normality with the following methods: a histogram, which is a comparison of your
data's statistics to properties of the normal curve; and goodness-of-fit tests, such as the Kolmogorov-
Smirnov test and the Anderson-Darling test. Measures of skewness and kurtosis verify the non-
normality of data.
Supplement
Follow-on Activity
Access the follow-on activity Characteristics, Specifications, Stability, and Normality for
help with the elements you've learned in this topic.
Early in the process capability study, you create a sampling plan and gather data. You must have
enough data to obtain a representative sample of all special cause variation, seasonal fluctuations,
and intermittent problems.
Once you know how capable your process is, how well it's centered, and its level of variation, you
make your recommendations.
Recommendations can take five forms: do nothing, reduce variation, center the process, change the
specifications, or accept the losses and prepare to handle scrap and rework.
Long-term and Short-term Capability

Learning Objective
recognize the characteristics of short-term and long-term capability
1. What is long- and short-term capability?

The next page outlines the most recent updates to the Black Belt Body of Knowledge regarding
short- and long-term capability.
Supplement
Access the content Short-term and Long-term Capability to review more comprehensive
explanations of capability, drift, and the Six Sigma shift.
Question
Which two statements accurately describe long-term capability?
Options:
1. It relies on Cp and Cpk to assess the potential long-term capability with a

long-term standard deviation estimate
2. As a result of this, a Six Sigma process actually corresponds to 4.5σ
3. It usually uses Pp and Ppk to assess the total long-term capability with a long-
term standard deviation estimate
4. It is the only way to achieve Six Sigma capability, as this process is time
intensive
Answer
Option 1: This option is incorrect. Pp and Ppk usually evaluates the total long-term
capability with a long-term standard deviation estimate. Cp and Cpk are usually used to
evaluate the potential short-term capability with a short-term standard deviation estimate.
Option 2: This option is correct. A Six Sigma process will drift in the long-term and actually
correspond to 4.5σ.
Option 3: This option is correct. Pp and Ppk usually evaluates the total long-term capability
with a long-term standard deviation estimate.
Option 4: This option is incorrect. Six Sigma capability can only be achieved in the short
term. The best capability value of a process is considered its short-term sigma value.
Correct answer(s):
2. As a result of this, a Six Sigma process actually corresponds to 4.5σ

3. It usually uses Pp and Ppk to assess the total long-term capability with a long-term
standard deviation estimate
2. Summary
There are several key terms in the measure phase of a Six Sigma process. Process capability is a
measure of how well a process and its output conform to the initial specifications. Specification limits
define the amount of acceptable variation that can occur within a process, while still meeting
customer requirements.
Process variability must be distributed so that all products fall within six standard deviations on each
side, and must also fit between the upper and lower specification limits. Drift means that a Six Sigma
capable process won't remain so over the long-term.
The exact definitions of short- and long-term capability can be confusing. However, there's a
distinction between elements which cause short-term variation, and those which cause long-term
variation.
Process Capability for Non-normal Data

Learning Objective
recognize how to process non-normal data in a capability study
1. Transforming your data

Capability studies require that data is normally distributed. But what is "normal?" Most people, things,
and processes are different, and the same is true for data. There are no characteristics that define a
perfect normal distribution. Some data falls within a normal range, but most data doesn't.
For instance, suppose you own a television shopping channel, and you guarantee delivery of
products within 72 hours of purchase. To keep on top of your delivery process, you decide to test it.
After collecting 50 samples of delivery-time data, you create a probability plot and can see that the
data isn't normally distributed.
A histogram of the data shows that it's skewed. Most data points fall between 52 and 72 hours. This
kind of skewness is typical of delivery processes.
Since the capability indices Cp and Cpk hold true only for normally distributed data, how do you deal
with non-normal data? Can you still test your delivery process for capability?
Yes, you can. Two strategies are often used for dealing with non-normal data. You can transform the
data to make it appear more normal. Or you can find a known distribution model that fits your data
and use its parameters for your calculations.
Select each strategy to learn more about it.
Transform the data

You can often achieve a normal distribution by first subjecting each data point to a
mathematical transformation. The transformation does not change the meaning of the
results or the data points; it simply changes the way the data is expressed.
Find a known distribution model

If your data follows a distribution for which capability can be calculated, such as a Poisson,
Weibull, or lognormal distribution, you can calculate your capability based on parameters
of the particular distribution.
If you opt to transform the data, you can apply several common transformation options:
square root or power

log
reciprocal
Data transformation is typically done with software, which performs the same mathematical operation
on each data point. For example, the dataset before transformation is not normally distributed. To
transform the data, the square root of each data value was taken. The transformed data is more
easily understood, more manageable, and better fits a normal distribution.
Graphic
Before transformation, the data points are 19.45, 282.58, 518.56, 983.45, 1575.3, 2838.82.
After transformation, the data points are 4.41, 16.81, 22.77, 31.36, 39.69, 53.28.
In another example, a probability plot indicates that a particular set of time data is non-normal.
Transforming the data by plotting the reciprocal for each data point gives a straight-line probability
plot, indicating that the transformed data is normally distributed, and can be treated as such.
Don't forget that in order to work with transformed data, you must also transform the specification
limits using the same mathematical operation.
Choosing the appropriate transformation is a matter of trial and error, but you can use software to
quickly test how data looks after being transformed in a variety of ways. The software produces a test
of normality in the form of a probability plot for each transformation strategy, and you then choose the
strategy that produces the most normal-looking distribution.
2. The Box-Cox and Johnson transformations

Two commonly used transformation strategies are the Box-Cox power transformation and the
Johnson transformation. Box-Cox is the simpler of the two.
The Box-Cox power transformation uses exponents to transform data. This transformation raises
data values to the power of lambda, where lambda equals a number between -5 and +5. The goal of
the Box-Cox transformation is to find the value of lambda that will produce a dataset whose variability
is as small as possible.
Lambda is simply the power to which your data points will be raised. If lambda is 2, each data value
will be squared; if lambda is 0.5, then you take the square root of your data; if lambda is -2, then 1
over X squared is used.
The Box-Cox power transformation formula for a lambda value not equal to zero is X raised to the
lambda power minus one divided by lambda – basically, X raised to the lambda power.
If lambda is 0, you don't use the same formula. Instead, you find the natural log of each data value.
Reflect
Why do you suppose the Box-Cox power transformation doesn't use an exponent to
transform a lambda value of zero?
Enter your response in the space provided and then select the Compare button to learn
more.
Write down your response or enter it in a text file in your word-processor application (or in a text editor such as
Notepad) and save it to your hard drive for later viewing and for comparison with the alternate opinion that follows.
Why the Box-Cox power transformation doesn't use an exponent to transform a

lambda value of zero:
Taking any number to the power of 0 is equal to 1. In the Box-Cox transformation formula, a
lambda of zero would give a denominator of zero, a mathematical illegality. And since
taking any number to the power of 0 gives 1, the numerator for lambda equals zero would
be zero as well. To avoid this situation, the formula for the Box-Cox transformation when
lambda equals zero is simply the natural log of x.
If you transform your data using the Box-Cox equation for successive lambda values and then plot
each lambda value against the standard deviation of your transformed data, you can identify the
lambda that yields the lowest variability. This is the lambda value that is the lowest on the resulting
Box-Cox curve.
Graphic
On this curve, the lowest value is 0.12.
Since it's easier to work with whole numbers as exponents, it is customary to round decimal lambda
values to the nearest number that is easier to work with. This will generally be the nearest whole
number, with the exception of 0.5 or -0.5. These also make convenient values for powers. For this
example, the lambda value that you'd use for your final transformation is 0.00. Many software
packages will give you the precise value of lambda as well as the rounded value.
Graphic
The estimated lambda value of 0.12 is rounded to 0.00.
Consider this situation. Your process improvement team at a health insurance company is measuring
and evaluating the current and expected premium for a client company. You're using average
employee age as one of the key inputs. The team collects sample data for 25 employees and
normality tests the data with a probability plot and histogram. Both tests show that the data isn't
normally distributed. You decide to transform the data using a Box-Cox transformation.
Next, using software, you perform the transformation. The resulting Box-Cox plot provides a lambda
value of -1.66, which you round to -2.00.
A lambda value of -2.00 means that each data value will be transformed with the operation one over
X squared.
The probability plot created from transformed data and lambda values shows your data clustered
more closely around the center diagonal, or the 95% confidence level. In addition, the test returns a
p-value of 0.53, which exceeds the alpha level of 0.05. Both of these indicators signify that the data is
normally distributed.
Once you have transformed your data and obtained a dataset that appears normally distributed, you
need to verify its normality using a normality test, such as a new probability plot or an Anderson-
Darling test. Then, before you can use the transformed data to calculate capability, you must also
transform your specifications with the rounded lambda value used in the Box-Cox transformation.
Question
Using the Box-Cox plot, what is the best lambda value?
The plot of standard deviation on the y-axis against lambda on the x-axis is roughly
parabolic in shape. The lambda values corresponding with the largest standard deviation
are negative 5.0 and positive 5.0. The remaining lambda values, corresponding to
descending values of standard deviation are 2.2, 2.0, 1.1 and negative 1.0.
Options:
1. -1.0
2. 1.1
3. 2.0
4. 2.2
Answer
Option 1: This option is correct. The lambda value you should use is the lowest value from
the chart. In this example, the lowest value is -1.0.
Option 2: This option is not correct because 1.1 does not correspond to the lowest
standard deviation. The lambda that will produce the lowest variability in your data is the
optimum lambda value for transformation.
Option 3: This option is not correct. You want to identify the lambda value that corresponds
with the lowest variability, or standard deviation.
Option 4: This option is not correct because there are other lambda values that correspond
with lower variability, and are therefore better choices for the transformation.
Correct answer(s):
1. -1.0
The Box-Cox power transformation test is simple, but it doesn't always work. The test focuses on
finding the smallest variations among data values, not necessarily on achieving a normal distribution.
If Box-Cox fails to give you a lambda value that will produce a normal distribution from your non-
normal data, you may want to try the Johnson transformation.
The Johnson transformation selects one optimal distribution function to transform non-normal data
into normal data. The Johnson transformation is very complex, involves a number of complicated
conversions, and is always done with statistical software. It returns a p-value that you can compare to
alpha. If the p-value is larger than your alpha level, the distribution is normal.
Question
Which three statements describe the Box-Cox power transformation?
Options:
1. Returns a lambda value that will transform a non-normal dataset to a normal-

looking dataset
2. Uses the natural log of lambda, when lambda equals 0.5
3. Enables you to transform data by raising it to a power
4. Is less popular than the Johnson transformation
5. Allows you to convert non-normal data into data that can be used for capability
testing
Answer
Option 1: This option is correct. The reason for using the Box-Cox power transformation is
that it gives you the lambda value for converting data into a dataset with the least amount of
variation from normality possible.
Option 2: This option is not correct. The natural log is used when lambda equals 0,
because any data value raised to a power of 0 is 1.
Option 3: This option is correct. The Box-Cox power transformation is so known because it
converts non-normal data to normal data by raising all data points to a power.
Option 4: This option is not correct. The Box-Cox power transformation is simpler. For this
reason, it's more popular and is used more often than the Johnson transformation.
Option 5: This option is correct. Only stable, normal data can be used in capability testing.
Using the Box-Cox power transformation enables you to convert non-normal data to normal
data.
Correct answer(s):
1. Returns a lambda value that will transform a non-normal dataset to a normal-looking

dataset
3. Enables you to transform data by raising it to a power
5. Allows you to convert non-normal data into data that can be used for capability testing
3. Using a non-normal distribution

Another technique for handling non-normal data is to find a known distribution model and use it to
model your data. For instance, if the data from your process follows a Poisson, Weibull, or lognormal
distribution, you can calculate performance indices based on the parameters of that particular non-
normal distribution.
For cases in which data falls into other distributions, software is typically used to calculate process
performance, but you must know the correct distribution to choose. Performing the calculations with
software requires that you enter all of the data as well as the specification limits, and choose the
distribution that fits best.
But you need to be aware of some restrictions when calculating performance based on well-known,
non-normal distributions.
Select each restriction to learn more.
Cp and Cpk don't apply

You can't calculate Cp and Cpk for non-normal distributions. Cp and Cpk are based on z-
scores, which are exclusive to normal distributions.
Pp and Ppk are based on the distribution

Pp and Ppk will be found based on the mean and standard deviation of the particular
parameters of the known distribution, not the parameters of your data. For example, for the
Weibull distribution, the shape and scale are used to estimate the probability of occurrence
for the event being considered. The shape parameter beta and scale parameter eta are
used in the capability calculation, generally done using software.

The formula for the Weibull distribution includes a shape parameter, beta, and a scale
parameter, eta, multiplied by the other components of the formula.
If you can't determine which distribution to use, you can use software that will generate goodness-of-
fit and probability plots for some of the commonly used distributions. Then, you can visually
determine which distribution seems to be the best fit. A chi square goodness-of-fit test can also be
used for this purpose. As you can conclude here, the data doesn't fit a normal distribution, but it does
appear to fit a Weibull distribution.
Question
You and your team are working to assess the performance of a hole drilling process, but
your sample data has failed your normality tests. What three things can you do?
Options:
1. Use a Box-Cox power transformation to make the data appear normally

distributed
2. Use a Johnson transformation to transform your data to an approximate
normal distribution
3. Determine which non-normal distribution fits the data, and use its parameters
to calculate Cp and Cpk
4. Use the Johnson transformation to find the natural log of lambda
5. Find a non-normal distribution that appears to fit the data, and use its
parameters to calculate performance
Answer
Option 1: This option is correct. You can use a Box-Cox transformation to make your data
appear normally distributed. Then, you can calculate capability.
Option 2: This option is correct. You can use the Johnson transformation to transform non-
normal data so it has the appearance of normality.
Option 3: This option is not correct. You can't calculate Cp and Cpk from a non-normal
distribution; Cp and Cpk are dependent on values from a normal distribution.
Option 4: This option is not correct. Lambda values are produced by the Box-Cox
transformation, not by the Johnson transformation. And you only use the natural log of
lambda when lambda is equal to zero.
Option 5: This option is correct. When the data is non-normal, one option for assessing the
performance – but not the Cp or Cpk – of your process is to find a known non-normal
distribution and use its parameters for your calculations.
Correct answer(s):
1. Use a Box-Cox power transformation to make the data appear normally distributed
2. Use a Johnson transformation to transform your data to an approximate normal
distribution
5. Find a non-normal distribution that appears to fit the data, and use its parameters to
calculate performance
What if you've tried with no success to use data transformation methods, and you can't find a well-
known distribution that fits your data – is there anything else you can do?
Yes, but you need to do some detective work to determine the source of your data's non-normality.
Check for outliers in the data. Should these be removed to restore the data to a normal distribution?
Also, verify that your data represents only one population, and split the data if you discover that two
or more populations have been mixed. Normal populations can produce a non-normal sample when
they are combined.
For instance, at your organization, one production line is slower than a second production line. You
find that 40% of your products come from the slower line and 60% come from the faster line. When
data from the lines is combined, data from the slower line pulls down the mean of the combined
process. What you can do is subdivide the data into two sets, one for each individual process, then
calculate the defects per million opportunities, or DPMO, for each process, and combine the DPMOs
into a single capability assessment.
If you have exhausted all possibilities, and you're sure that your distribution is correct, you can still
assess capability for non-normal data by using more simple measures, such as parts per million
(ppm) or percentage out of specification.
Question
What three things can you do if an appropriate distribution or transformation cannot be

found for your data?
Options:
1. Be sure the data doesn't mix multiple populations or include outliers

2. Use simpler measures of capability, such as ppm or percentage out of
specification
3. Aggregate DPMO values from normal subsets within a non-normal dataset
4. Use statistical software to calculate capability indices
5. Use the Weibull parameters beta and eta to calculate Pp and Ppk
Answer
Option 1: This option is correct. Two normal populations can result in a non-normal
distribution when they are combined. Outliers can cause data to be non-normally
distributed.
Option 2: This option is correct. You can still assess the capability of non-normal data by
using measures based on counts rather than statistical calculations. Measures such as
ppm or percentage out of specification can reveal process capability quite well.
Option 3: This option is correct. If you identify subsets of normal data within a non-normal
distribution, you can separate the data into subsets, test each subset for normality,
calculate its DPMO, and combine the DPMOs.
Option 4: This option is not correct. You can't calculate an accurate Cp or Cpk from non-
normal data, even when the distribution is known. Capability indices are based on the z-
scores, which are unique to normal distribution.
Option 5: This option is not correct. The question supposes that none of the distributions,
including Weibull, appropriately models the data. Unless the Weibull distribution is a good
fit, Weibull parameters will not support an accurate calculation of Pp or Ppk.
Correct answer(s):
1. Be sure the data doesn't mix multiple populations or include outliers

2. Use simpler measures of capability, such as ppm or percentage out of specification
3. Aggregate DPMO values from normal subsets within a non-normal dataset
4. Summary
Capability tests require data stability and normality. If your data is non-normal, you can first transform
your data so it appears to be normal, then calculate capability. Or you can use parameters from well-
known, non-normal distributions to calculate your process's performance.
The Box-Cox power transformation and the Johnson transformation are two strategies for
transforming non-normal data to normal data prior to calculating capability. Box-Cox returns a lambda
value that is used to transform data and specifications by raising them to the power of lambda. The
Johnson transformation uses software to select the optimal transformation.
In the event that transformation fails to deliver normal data, probability plots and goodness-of-fit tests
can help to identify alternate distributions for modeling your data. From these distributions, Pp and
Ppk – but not Cp or Cpk – can be calculated.
If these methods fail, you should check your data to determine whether you have mixed populations
that should be separated or outliers that can be eliminated. Finally, you can always assess capability
with a simpler method such as parts per million (ppm) or percentage out of specification.
Process Capability for Attribute Data

Learning Objective
match attribute control charts with the circumstances in which they can be used to
determine process capability
1. Types of data
Many customer requirements can't be defined through continuous physical characteristics, such as
weight, time, pressure, or temperature. Instead, performance must be measured through
occurrences – such as how many complaints are received or defective products returned. Different
types of characteristics are measured with different types of data. When working with Six Sigma, you
deal with two types of data.
Select each type of data to review the differences.
Continuous data
Continuous data is measured on a scale and can be infinitely divided and presented in
fractions or decimal numbers. Temperature and time are examples of continuous data.
Discrete data
Discrete data is binary or categorical data. It includes information on occurrences,
proportions, or characteristics, such as pass versus fail, go versus no go, or number of
defective items versus number of customers. Discrete data cannot be presented in
fractions or as decimal numbers. Delivery deadlines met, warranty claims made, products
returned, and units scrapped or reworked are examples of discrete data.
Up to this point, you've been accustomed to the terms "continuous" and "discrete" as applied to data.
But as you move into the Analyze phase and begin discussing statistical tools, you'll find the terms
"variable" and "attribute" used more often than "continuous" and "discrete." For this reason, those
terms will be used for the remainder of this course. Continuous is interchangeable with variable, and
discrete is interchangeable with attribute.
Of the two types of data, variable data gives more information and is more precise. You should use it
whenever possible. Having said that, however, Six Sigma is measured by defects, and there's a
natural orientation toward attribute data. Six Sigma teams often start with variable data, then apply it
to an attribute threshold to find the sigma level.
Capability is calculated differently for variable and attribute data. For variable data, capability
accounts for the total inherent variation of the stable process, with or without adjustments for process
centering to specification targets. Assuming a normal data distribution, you can assess process
capability with the indices Cp, Cpk, and Cpm
Cpm. Cpk can be translated to a z-score, which corresponds
to a sigma level. So, knowing Cpk, you can use a conversion table to find sigma.
Attribute data, however, is not continuously distributed over the entire range, so you can't use the
familiar capability indices to express capability. Instead, capability for attribute data is expressed as a
proportion of nonconforming product or number of defects, typically in parts per million opportunities,
or DPMO. Knowing your data's DPMO, for example, you can use the conversion table to find the
correct sigma level. However, you can't go backwards in the table to find Cp through the z-score.
As you know from your background in Green Belt concepts, you can determine sigma level by
calculating defects per million opportunities (DPMO).
Supplement
Access the content Control Charts for Attribute Data if you wish to review the procedure
before you apply it in the upcoming review questions.
Case Study: Question 1 of 3
Scenario
For your convenience, the case study is repeated with each question.
Consider this situation. You and your Six Sigma team at an urban hospital are preparing to
undertake a DPMO calculation. Surgeons performed 40 surgeries using a 300-point critical
procedures checklist. Each one of the 300 points is a defect opportunity in the surgical
process. A recent medical board audit found 10 such defects.
Answer the questions, in order.
Question
Your first step is to calculate DPMO and sigma. Sequence the steps for finding sigma from
DPMO.
Options:
A. Inspect the data and define opportunities for defects

B. Determine the total number of defects in all samples
C. Calculate the rate of defects and multiply by 1,000,000
D. Convert from DPMO to a sigma metric using a table
Answer
Correct answer(s):
Inspect the data and define opportunities for defects is ranked

The first thing you have to do is examine your data to determine what you're going to
consider a defect.
Determine the total number of defects in all samples is ranked
Once you've determined what a defect is, you count the total number of defects in all of
your samples.
Calculate the rate of defects and multiply by 1,000,000 is ranked

The third step is to calculate DPMO by dividing the total number of defects by the total
number of units, and multiplying by 1,000,000.
Convert from DPMO to a sigma metric using a table is ranked
Once you know DPMO, you can use a conversion table to find the sigma value that
corresponds to the value closest to your DPMO.
Scenario
Question
Calculate DPMO for this situation. Please round your calculation to the nearest whole
number.
Answer
The formula for DPMO is (D / (N * O)) * 1,000,000, which for this process is (10 / 40 * 300) *
1,000,000 = 833.
Correct answer(s):
1. 833
2. 833.0
Scenario
Question
Using the table, find the closest sigma value for a DPMO of 833.
Description of table follows.
At a sigma level of 4.80, the DPMO is 480. At a sigma level of 4.70, the DPMO is 680. At a
sigma level of 4.60, the DPMO is 960. At a sigma level of 4.50, the DPMO is 1,350.
Description ends.
Options:
1. 4.60
2. 4.80
3. A sigma value cannot be found
Answer
Calculating sigma levels from defect counts is an important skill in capability analysis. You
may wish to further review the procedure.
Option 1: This option is correct. On a sigma conversion table, 833 is closest to 960, which
correlates to 4.60 sigma.
Option 2: This option is not correct. The DPMO of 833 is closer to 960 than it is to 480, so
the sigma level would likely be closer to 4.60 than it is to 4.80.
Option 3: This option is not correct. You need to interpolate to find the sigma value. The
DPMO 833 falls between 4.60 and 4.70, but it is closer to 4.60, so you would use that as
your sigma level.
Correct answer(s):
1. 4.60
It's helpful to note that when you are determining sigma level for attribute data, DPMO and ppm are
typically assumed to be the same. This is because for academic purposes, most Six Sigma
practitioners assume that there is only one defect opportunity per unit. DPMO is simply defects per
million made into a more stringent metric by dividing it by the number of opportunities per unit. When
this denominator is set at one, DPMO and ppm are identical values.
2. Control charts for attribute data

The primary way to monitor and determine capability for attribute data is with control charts. Unlike
for variable data, where control charts indicate a response irrespective of specification needs, each
data point on an attribute control chart is related to a proportion or percentage of nonconformance
relative to customer requirements.
If you're plotting new data, the control chart should contain at least 25 points showing statistical
control. You can use historical data, so long as you remove points known to be due to special cause
variation.
Supplement
Access the content Control Charts for Attribute Data to review the basics of attributes
control charts.
Choosing the right control chart for attribute data is extremely important. A flowchart can help you
make the right choices. Your first decision is whether you're measuring defects per unit or defective
parts.
To review the difference between defects and defectives, select each term.
Defects
A defect is a measurable failure to meet a customer's requirement or performance
standard. Because defects are defined through customer requirements, anything that
customers find unacceptable is a defect. C and u charts are used to plot defects per
sample or per unit.
Defectives
A defective is a unit of output – a part, for example – that doesn't meet specifications
because it contains more than the allowable number of defects. A part may contain
multiple defects, up to the specification limit, before the part itself is considered defective.
Np and n control charts are used to plot defective parts. The number of defectives is often
reported as a proportion or percentage of the total parts or units.
The c and u charts – count charts – reflect the Poisson distribution, which describes count data.
You'd use c and u charts when you want to plot numbers of defects in a sample or on a unit instead
of categorizing the whole unit as defective or nondefective. C charts plot defects per sample, while u
charts plot defects per unit. One way to easily remember the difference is to associate u with unit.
You would use np and p charts as a general measurement of the total process. Np and p charts are
used with binomial data, and you use them when you're plotting the number or proportion of defective
versus nondefective parts, satisfied versus dissatisfied customers, or defects per unit.
Np charts help you determine the average number of defectives per sample, while p charts help you
determine the average proportion of defectives per sample. One way to remember the difference
between p and np charts is to associate p with proportion and np with number.
To learn more about the individual characteristics, select each control chart type.
c chart
The c chart, or count chart, plots the actual number of defects per subgroup or sample and
can only be used when the sample or subgroup size is constant. The center line of the c
chart – the Cbar – shows the average number of defects per subgroup or sample.
u chart
The u chart plots defects per unit, and is used when the sample or subgroup size is either
constant or variable. The center line of the u chart – Ubar – represents the average
number of defects per unit.
np chart
An np chart plots the number of defectives per sample and is used only when the sample
or subgroup size is constant. The center line of the np chart – NPbar – represents the
average number of defectives.
p chart
The p chart plots the proportion of what you're measuring – defective parts or satisfied
customers. Use a p chart when the sample or subgroup size is either variable or constant.
The center line of the p chart – Pbar – represents the average proportion of defectives;
multiplying Pbar by 1,000,000 yields the DPMO.
You can find process capability for attribute data using a method called the mean rate of
nonconformity. After you've selected the right control chart and verified that the process is in
control, the average value as expressed by the center line – Cbar, Ubar, NPbar, or Pbar – defines
process capability.
Suppose you work for a manufacturer of coffee makers, and you're monitoring a timer improvement
project. You decide to randomly collect subgroups of equal size – 200 – from a single production line
over a period of 15 weeks.
You're interested in the number of defects in the samples. What kind of a control chart should you
choose?
Well, you're essentially counting defects, and you have a constant subgroup size. You choose to use
the c control chart.
To calculate the center line for the chart, you determine the average number of subgroup defects per
sample, the Cbar. You calculate the mean by dividing the total number of defects, 406, by the number
of subgroups, 15, which gives you a Cbar of 27.07. This number represents the capability of the
attribute data by revealing the number of defects in each subgroup.
Question
Your task is to assess process capability for different sets of attribute data. Match control
charts with circumstances in which they can be used to determine process capability. Not
all circumstances will have a match.
Options:
A. u chart
B. p chart
C. c chart
D. np chart
Targets:
1. Number of misaligned holes per motherboard, when the sample size is

variable
2. Proportion of defective DVD players, when the sample size is variable
3. Number of errors on each outgoing invoice, when the sample size is constant
4. Number of defective mouse pads per sample, when the sample size is
constant
5. Customer wait times at the service desk, when sample size is constant
Answer
The u chart plots defects per unit and is used when the samples or subgroup sizes are
variable.
A p chart would tell you about the average proportion of defective DVD players per sample
when the sample sizes are variable.
The c chart is the right one because you have a constant sample size, and you're counting
individual defects on each invoice unit.
The np chart is the correct choice because you're analyzing defective units, and your
sample sizes are constant.
This option has no match. Customer wait times represent measured, continuous data, not
attribute data. Capability for the associated process is likely to be calculated directly
through capability indices such as Cp and Cpk.
Correct answer(s):
Target 1 = Option A
Target 2 = Option B
Target 3 = Option C
Target 4 = Option D
3. Summary
Customer requirements can't always be defined through variable data – such as weight, time,
pressure, or temperature. Sometimes, attribute data – such as how many complaints are received or
how many defective products are returned – is used. Attribute data is not normally distributed, as
variable data is, so you can't use measures like Cp, Cpk, Pp, and Ppk. Instead, you can measure
capability of attribute data with parts per million or DPMO.
Control charts are typically used to assess attribute data capability. Choosing the correct control chart
is essential because the particular chart's center line, as calculated with a specific formula,
represents your process capability. You can choose to use c, u, np, or p control charts based on
whether you are measuring defects per unit or defectives per sample, and whether your subgroup or
sample size is constant or variable.
© 2018 Skillsoft Ireland Limited

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10/20/2019 Skillsoft Course Transcript

Determining Process Performance and Capability

Process Performance and Capability Measurement

2. Process Capability and Performance Indices

Process Capability and Long-term Capability

2. Long-term and Short-term Capability

Capability for Non-normal and Attribute Data

2. Process Capability for Attribute Data

Select each set of indices to learn more.

Process Performance and Specification

1. Process performance vs. specification

Specification limits and process spread help determine process capability.

How do you use these elements to measure process capability?

1. Check that the process spread is within the specification limits

Option 4: This is an incorrect option. Specification limits are based on customer

1. Check that the process spread is within the specification limits

2. DPU, DPMO, FTY, and RTY

defects per unit, or DPU

Refresh Your Knowledge

A. Defects per unit (DPU)

D. First time yield (FTY)

Defects per million opportunities, or DPMO, provides information on the mathematical

Rolled throughput yield, or RTY, measures the capability of a multi-part operation to

Target 5 =No Option Specified.

Target 3 =No Option Specified.

Target 4 =No Option Specified.

1. 0.950, 0.926, 0.966

Target 3 =No Option Specified.

Target 4 =No Option Specified.

3. Relationship of defect rates and yields

0.945 times 0.913 times 0.954 is equal to 0.823 or 82.3%.

The same conversion formula applies to RTY and total DPU.

RTY is equal to e raised to the power of negative total DPU.

What is the total DPU for the welding process?

The inventory replenishment process of a manufacturing company has a rolled throughput

Process Capability and Performance Indices

1. Capability indices Cp and Cpk

Select each process capability index to learn more about it.

Refresh Your Knowledge

1. The process is capable

1. The process is capable

2. Capability ratio and Cpm

Narrator: First, Shari substitutes values into the formula and

Narrator: Last, she divides the specification spread, 0.20, by

Taguchi devised a metric that came to be known as Cpm,

The index you need is Cpm,

3. Process performance indices

1. Use long-term population data that may exceed control limits

Target 1 = Option A, Option B

Target 2 = Option B, Option D

Target 3 = Option C, Option D

Target 4 = Option C, Option D

The first step is to find the differences between the

Then you divide each of the results by three times the

Refresh Your Knowledge

Capability indices, Cp, Cpk, Cr, and Cpm,

General Process Capability Studies

1. Goals and steps of a capability study

Select each step to learn more about it.

Identify key characteristics, specifications, or tolerances

2. Capability study parameters

Characteristics must be key factors in producing quality

An important element of a process capability study is identifying characteristics,