What Is the Difference Between the Cp and Cpk Measures

question 198

Essay

What is the difference between the Cp and Cpk measures? Provide an example of a situation in which a process might perform well on one measure but poorly on the other.

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Definitions:

Current Ratios

The liquidity ratio that provides insight into a company's capability in covering its short-term obligations with its short-term assets, essentially the same as the current ratio but rephrased.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Financial Problems

Issues related to managing money, including difficulties in generating income, managing expenses, or meeting financial obligations.

Benchmark Analysis

A method of comparing business processes and performance metrics to industry bests or best practices from other industries.