This article provides an extensive discussion on quantifying the variability of a manufacturing process with the objectives and advantages of reducing variability in a manufacturing process. The process capability analysis is used to quantify the variability of a process. The Taguchi loss function approach is used to relate the variability and economic loss. Computation of various process capability ratios is carried out, which are evaluated and tested with respect to process centering. The process capability ratios are tested with confidence intervals. The hypothesis about the process capability ratio is carried out to demonstrate whether the process capability ratio (Cp)meets or exceeds the target value. The process capability analysis helps in quantifying the process variability and assists manufacturing by eliminating or greatly reducing the variability.

Activities to integrate quality in manufacturing have two main objectives. One is to prevent defects and other is to minimize variability in manufacturing process. To achieve this objective, it needs to discover the relationship between process variables and product results. Even though the product characteristics meet specification limits and the process is in the state of statistical control, the actions may be initiated to quantify and further reduce process variability to gain marvelous advantages. The statistical techniques can be used to quantify the variability of manufacturing process. The process capability analysis helps in quantifying process variability and assists manufacturing by eliminating or greatly reducing the variability. Taguchi philosophy strongly recommends and stresses on “reduction in variability” and “striving for best dimensions” strategy.

The amount of process variability can be related to economic loss through Taguchi’s loss function approach. Thus, using this approach, it is possible to estimate the loss due to particular quality characteristic for different values of process parameters. This loss value gives financial interpretation to combinations of process capability ratio, scaled distance factor and tolerance.

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