A unifying process capability metric

A new economic approach to process capability assessment is presented, which differs from the commonly used engineering metrics. The proposed metric consists of two economic capability measures – the expected profit and the variation in profit of the process. This dual economic metric offers a numbe...

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Detalhes bibliográficos
Autor: Flaig, John Jay
Tipo de documento: artigo
Data de publicação:2009
País:España
Recursos:Universitat Politècnica de Catalunya (UPC)
Repositório:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglês
OAI Identifier:oai:upcommons.upc.edu:2099/8220
Acesso em linha:https://hdl.handle.net/2099/8220
Access Level:Acceso aberto
Palavra-chave:Process control
Industrial productivity
Profit
Productivitat laboral
Control de processos
Beneficis -- Anàlisi
Àrees temàtiques de la UPC::Economia i organització d'empreses::Direcció d'operacions
Descrição
Resumo:A new economic approach to process capability assessment is presented, which differs from the commonly used engineering metrics. The proposed metric consists of two economic capability measures – the expected profit and the variation in profit of the process. This dual economic metric offers a number of significant advantages over other engineering or economic metrics used in process capability analysis. First, it is easy to understand and communicate. Second, it is based on a measure of total system performance. Third, it unifies the fraction nonconforming approach and the expected loss approach. Fourth, it reflects the underlying interest of management in knowing the expected financial performance of a process and its potential variation.