Assess process capability.
Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
Assess process capability.
Process capability is a statistical technique to evaluate whether the process is capable of producing the parts within the specification limits provided by the customer.
Let’s take an example to understand the process capability. The garage has a door of the width of 2 meters. However, to park the car in the garage, the maximum width of the car should not exceed 1.8 meters and also providing a space to exit from the car. So, the specification limits are 1.8 meters.
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