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What Is the Process Capability Index, How Is It Calculated

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What is the Process Capability Index, how is it calculated, and is it used in Six Sigma or Lean?


Definitions:

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a product or service.

Output

The total amount of goods and services produced by an economic system, company, or sector within a certain period.

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