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The Capability Index (Cpk) Calculates the Percentage of Items Being

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The capability index (Cpk) calculates the percentage of items being produced within specifications.


Definitions:

Accrued Interest

Interest that has been incurred but not yet paid, reflecting the cost of borrowing or the earnings from lending money over a specific period.

Semiannual Interest

Interest on a loan or investment calculated and paid twice a year, typically at a fixed rate.

Parent Company

A parent company is a corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Subsidiary Company

A subsidiary company is one that is controlled by another company, typically referred to as the parent company, through ownership of more than half of the subsidiary’s voting stock.

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