The Process Capability Index Measures the Capability of the Process

question 46

True/False

The process capability index measures the capability of the process to produce units whose dimensions fall with in the specifications.

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Definitions:

Stand-Alone

Describes something that operates independently or can function without the need for external support.

Bottom-Up

An approach that starts at the most specific, detailed level and works up to a broader perspective, especially in planning and analysis.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and liquidity.

Pre-Tax Salvage

The estimated value of an asset before taxes that can be recovered at the end of its useful life through sale or disposal.