Applications of a new loss and cost-based process capability index to electronic industries

In this article, we propose a new process capability index called Cpmc′ which is based on asymmetric loss function (linear exponential) and tolerance cost function for a normal process which provides a tailored way of incorporating the loss and tolerance cost in capability analysis. Next, we estimate the proposed PCI Cpmc′ when the process follows the normal distribution using six classical methods of estimation and we compare the performance of the considered methods of estimation in terms of their mean squared errors through simulation study. Besides, five bootstrap methods are employed for constructing the confidence intervals for the index Cpmc′. The performance of the bootstrap confidence intervals (BCIs) are compared in terms of average width and coverage probabilities using Monte Carlo simulation. Finally, for illustrating the effectiveness of the proposed index and methods of estimation and BCIs, two real data sets from electronic industries are re-analyzed.Keywords: Bootstrap confidence intervalsclassical methods of estimationcost functionloss functionprocess capability index AcknowledgmentsThe authors truly appreciate the valuable comments from two anonymous Referee which led to an improvement of our work.Authors’ contributionsThe author read and agreed to the published version of the manuscript.Data availability statementAll data analyzed during this study are included in this published articles: Chen and Chen (Citation2004) and Tong and Chen (Citation2003). The link of the data sets used in this study are included within the article, and data sets are also provided in the article.Disclosure StatementThe author declare that he has no conflict of interest.Additional informationFundingThe work of Professor Park was partially supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (MSIT) (No. 2022R1A2C1091319).