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What Is the Purpose of a Process Capability Study and What

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What is the purpose of a process capability study and what is a process capability index?


Definitions:

Liquidity Ratios

Financial metrics used to assess a firm's ability to meet its short-term obligations, with common examples including the current ratio and quick ratio.

Profitability Ratios

Ratios that compare income with one or more primary activities.

Net Profit Margin

A financial ratio representing the percentage of net income to sales revenue, indicating how much of each dollar earned by the company is translated into profits.

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