A process capability index for averages of observations from new batches in the case of the balanced random effects model

Capability analysis is used in many facets of industrial processes and has been recently introduced into business processes. In this paper a process capability index (Ppl1) is developed for the average of observations from new or unknown batches in the case of a balanced random effects model. Using a Bayesian approach, theoretical and simulation results are derived for the index under two different but related prior distributions. A medical tablet manufacturing example illustrates the flexibility and unique features of the Bayesian simulation method.