What does the process capability ratio help evaluate?

The process capability ratio is a statistical measure used to evaluate how well a process can produce output that meets specifications. It compares the process variability to the defined specifications, thus providing insight into the ability of a process to achieve its intended results consistently.

By calculating the process capability ratio, organizations can determine if their processes are capable of producing products within set tolerances or limits. A higher ratio indicates that the process variation is small relative to the specification limits, suggesting that the process is performing well and can produce reliable outputs with minimal defects. This measure is critical in quality control, process improvement, and ensuring that customer requirements are met effectively.

In this context, the other options—production costs, shipping times, and employee efficiency—do not directly relate to the capability of a process in terms of maintaining consistent quality within specified limits. Instead, they focus on different aspects of logistics and operations that do not measure process performance in the same way as the process capability ratio does.