This document discusses concepts related to process effectiveness, efficiency, and capability. It defines process effectiveness as satisfying customer requirements for quality, cost, and delivery time. Process efficiency is defined as the ratio of output to input, with an efficient process having minimal waste. Process capability is defined as a process's ability to meet its purpose as defined by an organization's management structures, and involves measuring process variability and comparing it to specifications. The document provides formulas for calculating process capability indices like Cp, Cpk, Pp, and Ppk and explains when each would be used.

1. Aniruddha Sahasrabudhe
Consultant, Engineering Process Excellence & Integration
Pune , India
E mail: a_sahasrabudhe@hotmail.com
Mobile: (91) 09766318819
May 2013
Customer
Requirements
Organizational
Process
Capability
Process
Effectiveness &
Process
Efficiency
Refreshing our
Understanding of
concepts of

2. PROCESS EFFECTIVENESS:
A measure of the Conformance of delivered
Product / Service to Customer’s
requirement of Quality , Cost and Delivery
time . An effective process will satisfy these
requirements of the customer.
PROCESS EFFICIENCY :
Ratio Output / Input . An efficient process
will consume the minimum amount of
resources required to transform inputs to
outputs and therefore be cost efficient. An
efficient process will ideally have no waste
or least waste
PROCESS CAPABILITY
is also defined as the capability of a process
to meet its purpose as managed by an
Organization's Management and Process
Definition Structures ( ISO 15504 )
Two parts of Process Capability are:
1) Measure the variability of the output of a
process &
2) Compare that variability with a proposed
specification or product .
PROCESS CAPABILITY
is a measure of the inherent property of a
Manufacturing process to consistently
produce parts as per the design
specification, expressed as a Process
Capability Index (e.g., Cpk or Cpm) or as a
Process Performance Index (e.g., Ppk or
Ppm).
The output of this measurement is usually
illustrated by a Histogram and calculations
that predict how many parts will be
produced Out of Specification (OOS)
Ohhhh--- No
Small Difference of perception between nearly Right & Exactly
Right understanding of Customer requirements of Quality , Cost &
DeliveryTime by members of Cross FunctionalTeams of a Small or
Global Project in an Organization can make very big difference to the
delivery of Products / Services to a Customer.
Learning Point
Ensure Organization’s Project Execution Processes are aligned with
Customer requirements using VOC ,Voice of Customer , QFD ,
Quality Function Deployment ,VSM ,Value Stream Mapping etc.
Tools at the beginning of Project
Organization’ s
Process Capability
Customer
Input / s
OUTPUT
Organization’s
Transformational
Processes
QUALITY
Are the
Processes
Capable of
Delivering
Product /
Service as per
Customer’s
requirement
of Q C D ?
Waste
Product / Service
as perceived by
customer. Right
mix of Quality ,
Cost & Delivery
Time like 3 sides of
an Equilateral
triangle.
No
Distinguish “Vital Few Process Parameters ” from “Trivial Many
Customer Requirements
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3. PROCESS CAPABILITY & PROCESS PERFORMANCE FORMULAES
SeeAnimation here for better understanding of Process capability Index CpV/s Cpk
PERFORMANCE
Short term
Sample Data
Long term Data
of Population
Considers centering Cpk Ppk
Does not Consider
centering
Cp Pp
When to us Cp & Pp
Analogous to running a 1000 meters race and a Marathon Race
Off-Target
Center Process
LSL USL
USLLSL
LargeVariation
Reduce Spread
Cp Cpk Pp Ppk Sigma
Red (Bad) < 1.00 < 1.00 < 1.33 < 1.33 < 4.5
Yellow
(OK) 1.00 - 1.33 1.00 - 1.33 1.33 - 1.67 1.33 - 1.67 4.5 - 5.5
Green
(Good) > 1.33 > 1.33 > 1.67 > 1.67 > 5.5
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